A bill to provide additional emergency mortgage assistance to struggling homeowners, and for other purposes.

Summary: Homeowners' Relief and Neighborhood Stabilization Act of 2010 - Directs the Secretary of the Treasury to transfer to the Secretary of Housing and Urban Development (HUD) $3 billion from Troubled Asset Relief Program (TARP) funds under the Emergency Economic Stabilization Act of 2008 (EESA), to be credited to the Emergency Homeowners' Relief Fund for use for emergency mortgage assistance.

Allows mortgage assistance if the mortgagor has incurred a substantial reduction in income as a result of involuntary unemployment or underemployment due to medical conditions.

Caps the aggregate amount of emergency mortgage assistance provided to a homeowner at $50,000.

Revises conditions and terms of repayment of such assistance to state that: (1) the rate of interest on any loan or advance of credit insured shall be fixed for the life of the loan or advance of credit and shall not exceed the rate of interest generally charged for mortgages on single-family housing insured by the HUD Secretary; (2) interest shall not be charged on interest which is deferred on a loan or advance of credit; and (3) an eligible homeowner who receives a grant or an advance of credit may repay the loan in full, without penalty at any time before the loan becomes due and payable.

Repeals the limitation on mortgage insurance granted by the Secretary to any financial institution to 40% of the total amount of loans and advances the institution makes.

Directs the HUD Secretary to allow funds to be administered by a state with an existing program that provides substantially similar assistance to homeowners.

Amends the Emergency Housing Act of 1975 to reauthorize the Emergency Mortgage Relief Program through FY2011.

Directs the Secretary of the Treasury to transfer to HUD $1 billion for assistance to states and local governments for redevelopment of abandoned and foreclosed homes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeowners' Relief and Neighborhood 
Stabilization Act of 2010''.

SEC. 2. EMERGENCY MORTGAGE RELIEF.

    (a) Use of TARP Funds.--Using the authority available under 
sections 101(a) and 115(a) of division A of the Emergency Economic 
Stabilization Act of 2008 (12 U.S.C. 5211(a), 5225(a)), the Secretary 
of the Treasury shall transfer to the Secretary of Housing and Urban 
Development $3,000,000,000, and the Secretary of Housing and Urban 
Development shall credit such amount to the Emergency Homeowners' 
Relief Fund, which such Secretary shall establish pursuant to section 
107 of the Emergency Housing Act of 1975 (12 U.S.C. 2706), as such Act 
is amended by this section, for use for emergency mortgage assistance 
in accordance with title I of such Act.
    (b) Reauthorization of Emergency Mortgage Relief Program.--Title I 
of the Emergency Housing Act of 1975 is amended--
            (1) in section 103 (12 U.S.C. 2702)--
                    (A) in paragraph (2)--
                            (i) by striking ``have indicated'' and all 
                        that follows through ``regulation of the 
                        holder'' and inserting ``have certified'';
                            (ii) by striking ``(such as the volume of 
                        delinquent loans in its portfolio)''; and
                            (iii) by striking ``, except that such 
                        statement'' and all that follows through 
                        ``purposes of this title''; and
                    (B) in paragraph (4), by inserting ``or medical 
                conditions'' after ``adverse economic conditions'';
            (2) in section 104 (12 U.S.C. 2703)--
                    (A) in subsection (b), by striking ``, but such 
                assistance'' and all that follows through the period at 
                the end and inserting the following: ``. The amount of 
                assistance provided to a homeowner under this title 
                shall be an amount that the Secretary determines is 
                reasonably necessary to supplement such amount as the 
                homeowner is capable of contributing toward such 
                mortgage payment, except that the aggregate amount of 
                such assistance provided for any homeowner shall not 
                exceed $50,000.'';
                    (B) in subsection (d), by striking ``interest on a 
                loan or advance''and all that follows through the end 
                of the subsection and inserting the following: ``(1) 
                the rate of interest on any loan or advance of credit 
                insured under this title shall be fixed for the life of 
                the loan or advance of credit and shall not exceed the 
                rate of interest that is generally charged for 
                mortgages on single-family housing insured by the 
                Secretary of Housing and Urban Development under title 
                II of the National Housing Act at the time such loan or 
                advance of credit is made, and (2) no interest shall be 
                charged on interest which is deferred on a loan or 
                advance of credit made under this title. In 
                establishing rates, terms and conditions for loans or 
                advances of credit made under this title, the Secretary 
                shall take into account a homeowner's ability to repay 
                such loan or advance of credit.''; and
                    (C) in subsection (e), by inserting after the 
                period at the end of the first sentence the following: 
                ``Any eligible homeowner who receives a grant or an 
                advance of credit under this title may repay the loan 
                in full, without penalty, by lump sum or by installment 
                payments at any time before the loan becomes due and 
                payable.'';
            (3) in section 105 (12 U.S.C. 2704)--
                    (A) by striking subsection (b);
                    (B) in subsection (e)--
                            (i) by inserting ``and emergency mortgage 
                        relief payments made under section 106'' after 
                        ``insured under this section''; and
                            (ii) by striking ``$1,500,000,000 at any 
                        one time'' and inserting ``$3,000,000,000'';
                    (C) by redesignating subsections (c), (d), and (e) 
                as subsections (b), (c), and (d), respectively; and
                    (D) by adding at the end the following new 
                subsection:
    ``(e) The Secretary shall establish underwriting guidelines or 
procedures to allocate amounts made available for loans and advances 
insured under this section and for emergency relief payments made under 
section 106 based on the likelihood that a mortgagor will be able to 
resume mortgage payments, pursuant to the requirement under section 
103(5).'';
            (4) in section 107--
                    (A) by striking ``(a)''; and
                    (B) by striking subsection (b);
            (5) in section 108 (12 U.S.C. 2707), by adding at the end 
        the following new subsection:
    ``(d) Coverage of Existing Programs.--The Secretary shall allow 
funds to be administered by a State that has an existing program that 
is determined by the Secretary to provide substantially similar 
assistance to homeowners. After such determination is made such State 
shall not be required to modify such program to comply with the 
provisions of this title.'';
            (6) in section 109 (12 U.S.C. 2708)--
                    (A) in the section heading, by striking 
                ``authorization and'';
                    (B) by striking subsection (a);
                    (C) by striking ``(b)''; and
                    (D) by striking ``1977'' and inserting ``2011'';
            (7) by striking sections 110, 111, and 113 (12 U.S.C. 2709, 
        2710, 2712); and
            (8) by redesignating section 112 (12 U.S.C. 2711) as 
        section 110.

SEC. 3. ADDITIONAL ASSISTANCE FOR NEIGHBORHOOD STABILIZATION PROGRAM.

    Using the authority made available under sections 101(a) and 115(a) 
of division A of the Emergency Economic Stabilization Act of 2008 (12 
U.S.C. 5211(a), 5225(a)), the Secretary of the Treasury shall transfer 
to the Secretary of Housing and Urban Development $1,000,000,000, and 
the Secretary of Housing and Urban Development shall use such amounts 
for assistance to States and units of general local government for the 
redevelopment of abandoned and foreclosed homes, in accordance with the 
same provisions applicable under the second undesignated paragraph 
under the heading ``Community Planning and Development--Community 
Development Fund'' in title XII of division A of the American Recovery 
and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 217) to 
amounts made available under such second undesignated paragraph, except 
as follows:
            (1) Notwithstanding the matter of such second undesignated 
        paragraph that precedes the first proviso, amounts made 
        available by this section shall remain available until 
        expended.
            (2) The 3rd, 4th, 5th, 6th, 7th, and 15th provisos of such 
        second undesignated paragraph shall not apply to amounts made 
        available by this section.
            (3) Amounts made available by this section shall be 
        allocated based on a funding formula for such amounts 
        established by the Secretary in accordance with section 2301(b) 
        of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 
        5301 note), except that--
                    (A) notwithstanding paragraph (2) of such section 
                2301(b), the formula shall be established not later 
                than 30 days after the date of the enactment of this 
                Act;
                    (B) the Secretary may not establish any minimum 
                grant amount or size for grants to States;
                    (C) the Secretary may establish a minimum grant 
                amount for direct allocations to units of general local 
                government located within a State, which shall not 
                exceed $1,000,000; and
                    (D) each State and local government receiving grant 
                amounts shall establish procedures to create 
                preferences for the development of affordable rental 
                housing for properties assisted with amounts made 
                available by this section.
            (4) Paragraph (1) of section 2301(c) of the Housing and 
        Economic Recovery Act of 2008 shall not apply to amounts made 
        available by this section.
            (5) Section 2302 of the Housing and Economic Recovery Act 
        of 2008 shall not apply to amounts made available by this 
        section.
            (6) The fourth proviso from the end of such second 
        undesignated paragraph shall be applied to amounts made 
        available by this section by substituting ``2013'' for 
        ``2012''.
            (7) Notwithstanding section 2301(a) of the Housing and 
        Economic Recovery Act of 2008, the term ``State'' means any 
        State 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 
        other territory or possession of the United States for purposes 
        of this section and title III of division B of such Act, as 
        applied to amounts made available by this section.
            (8)(A) None of the amounts made available by this section 
        shall be distributed to--
                    (i) any organization which has been convicted for a 
                violation under Federal law relating to an election for 
                Federal office; or
                    (ii) any organization which employs applicable 
                individuals.
            (B) In this paragraph, the term ``applicable individual'' 
        means an individual who--
                    (i) is--
                            (I) employed by the organization in a 
                        permanent or temporary capacity;
                            (II) contracted or retained by the 
                        organization; or
                            (III) acting on behalf of, or with the 
                        express or apparent authority of, the 
                        organization; and
                    (ii) has been convicted for a violation under 
                Federal law relating to an election for Federal office.