II 

117TH CONGRESS 

1ST SESSION S. 580 

To reauthorize the Neighborhood Stabilization Program, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 3, 2021 

Mrs. FEINSTEIN introduced the following bill; which was read twice and 

referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To reauthorize the Neighborhood Stabilization Program, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Affordable Housing 

5 Redevelopment Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 

8 (1) even before the economic hardship caused 

9 by the COVID–19 pandemic, the United States 

10 faced a shortage of more than 7,000,000 affordable 


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1 rental homes to meet the needs of extremely low-in2 come renters; 

3 (2) due to financial burdens and loss of income 

4 resulting from the pandemic, millions of people in 

5 the United States are at risk of eviction or fore6 closure, and the need for affordable housing is ex7 pected to increase dramatically; 

8 (3) homelessness is projected to rise by as much 

9 as 45 percent across the United States as a result 

10 of the pandemic and economic crisis, meaning nearly 

11 1,000,000 people in the United States could be expe12 riencing homelessness in the very near future; 

13 (4) in addition to making long-term investments 

14 in the affordable housing stock in the United States, 

15 it is also critically important to focus resources on 

16 more immediate solutions, such as acquiring and re17 habilitating existing buildings and placing afford18 ability requirements on the housing that is produced; 

19 (5) acquisition and rehabilitation provides two 

20 distinct advantages by lowering per-unit construction 

21 costs and making affordable housing units available 

22 to low-income households much faster; 

23 (6) in addition to rehabilitation of residential 

24 properties, there are opportunities for adaptive reuse 

25 and the conversion of non-residential office and reVerDate Sep 11 2014 23:42 Apr 01, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S580.IS S580

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1 tail properties to create new affordable housing in 

2 communities across the United States; and 

3 (7) helping States, local governments, and non4 profit organizations acquire blighted, abandoned, va5 cant, foreclosed, or surplus properties and convert 

6 them into affordable housing will allow for the rapid 

7 development of new affordable units, while stimu8 lating local economies and creating jobs. 

9 SEC. 3. DEFINITIONS. 

10 In this Act: 

11 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti12 ty’’ means— 

13 (A) a State, a city, county, or other polit14 ical subdivision of a State, a consortium of po15 litical subdivisions of a State, a Tribal govern16 ment, a public housing authority, or a redevel17 opment agency; or 

18 (B) any nonprofit entity or consortium of 

19 nonprofit entities, which may submit an appli20 cation for a grant under this section in partner21 ship with a for-profit entity. 

22 (2) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Housing and Urban Development. 


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1 SEC. 4. REAUTHORIZATION OF NEIGHBORHOOD STABILIZA2 TION PROGRAM. 

3 (a) AUTHORIZATION OF FUNDS.— 

4 (1) IN GENERAL.—There is authorized to be 

5 appropriated to the Secretary $1,500,000,000 for 

6 fiscal year 2021, to remain available until expended, 

7 for the provision of emergency assistance for the re8 development of abandoned and foreclosed homes, as 

9 authorized under title III of division B of the Hous10 ing and Economic Recovery Act of 2008 (42 U.S.C. 

11 5301 note; Public Law 110–289), in addition to 

12 other related uses of funds authorized under this 

13 section. 

14 (2) APPLICABILITY OF PROVISIONS.— 

15 (A) IN GENERAL.—Except as otherwise 

16 provided in this section, the provisions under 

17 the second undesignated paragraph under the 

18 heading ‘‘COMMUNITY DEVELOPMENT FUND’’ 

19 under the heading ‘‘COMMUNITY PLANNING

20 AND DEVELOPMENT’’ under the heading ‘‘DE21 PARTMENT OF HOUSING AND URBAN 

22 DEVELOPMENT’’ in title XII of division A of 

23 the American Recovery and Reinvestment Act 

24 of 2009 (Public Law 111–5) relating to assist25 ance authorized under title III of division B of 

26 the Housing and Economic Recovery Act of 


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1 2008 (42 U.S.C. 5301 note; Public Law 110– 

2 289) shall apply with respect to the emergency 

3 assistance authorized under paragraph (1). 

4 (B) CERTAIN CRITERIA NOT APPLICA5 BLE.—The fourth proviso in the second undes6 ignated paragraph described in subparagraph 

7 (A) of this paragraph (relating to grantees in 

8 areas with foreclosures and the ability to ex9 pend funding within a certain period) shall not 

10 apply with respect to the emergency assistance 

11 authorized under paragraph (1) of this sub12 section. 

13 (b) GRANTS; APPLICATION.— 

14 (1) IN GENERAL.—The Secretary shall award 

15 grants under this section to eligible entities through 

16 a competitive process. 

17 (2) CRITERIA.—Not later than 75 days after 

18 the date of enactment of this Act, the Secretary 

19 shall publish the criteria for awarding grants under 

20 this section. 

21 (3) APPLICATION.—An eligible entity desiring a 

22 grant under this section shall submit to the Sec23 retary an application— 

24 (A) in such manner and containing such 

25 information as the Secretary may require; 


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1 (B) that demonstrates a capacity to exe2 cute projects and leverage potential, and any 

3 other additional factors as determined by the 

4 Secretary; and 

5 (C) not later than 200 days after the date 

6 of enactment of this Act. 

7 (4) PREFERENCE.—The Secretary shall award 

8 preference to an application for a grant under this 

9 section to applicants that submit proposals— 

10 (A) to provide assistance in areas with 

11 high levels of cost-burdened households; 

12 (B) to provide assistance in rural areas; 

13 (C) to provide assistance in communities 

14 that have adopted local land-use policies, build15 ing codes, or related regulations that favor 

16 greater housing production, such as— 

17 (i) allowing greater density near pub18 lic transportation lines; 

19 (ii) establishing by-right development; 

20 (iii) eliminating off-street parking re21 quirements; 

22 (iv) granting density bonuses; 

23 (v) employing inclusionary zoning; 

24 (vi) relaxing minimum lot sizes; 


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1 (vii) authorizing conversion of com2 mercial properties into mixed-use and resi3 dential properties; or 

4 (viii) other local land-use policies, 

5 building codes, or related regulations that 

6 favor greater housing production; 

7 (D) to provide assistance in areas that are 

8 in close proximity to high-frequency public 

9 transportation; or 

10 (E) that have a higher proportion of af11 fordable units for households with incomes that 

12 are less than 50 percent of the area median in13 come. 

14 (5) DIVERSITY.—In awarding grants under this 

15 section, the Secretary shall ensure a geographic di16 versity of grantees from across the United States. 

17 (c) USE OF FUNDS.— 

18 (1) IN GENERAL.—A recipient of a grant under 

19 this section— 

20 (A) shall use grant funds to purchase 

21 blighted, abandoned, vacant, foreclosed, or sur22 plus property and convert the property into af23 fordable housing, which shall serve individuals 

24 and families with a household income that does 

25 not exceed the area median income; 


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1 (B) may use grant funds for mixed-use de2 velopment projects, conversion of non-residen3 tial office and retail properties, and other rede4 velopment requiring changes to land use restric5 tions; and 

6 (C) shall, to the maximum extent fea7 sible— 

8 (i) provide for the hiring of employees 

9 who reside in the vicinity, as such term is 

10 defined by the Secretary, of projects fund11 ed under this section; or 

12 (ii) contract with small business con13 cerns owned and controlled by socially and 

14 economically disadvantaged individuals (as 

15 defined in section 8(d)(3)(C) of the Small 

16 Business Act (15 U.S.C. 637(d)(3)(C))) 

17 residing in the vicinity of projects funded 

18 under this section. 

19 (2) SET ASIDE FOR EXTREMELY LOW-INCOME

20 AND VERY LOW-INCOME FAMILIES.—Not less than 

21 25 percent of the affordable housing described in 

22 paragraph (1) shall service individuals and families 

23 with a household income that does not exceed 50 

24 percent of the area median income. 

25 (3) AFFORDABILITY PERIODS.— 


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1 (A) IN GENERAL.—The affordability period 

2 for housing assisted under this section— 

3 (i) with respect to rental housing or 

4 housing with resale restrictions, shall be 

5 not less than 30 years, beginning on 

6 project completion; and 

7 (ii) with respect to housing with re8 capture restrictions, shall be not less than 

9 10, 20, or 30 years in accordance with the 

10 affordability period requirements under 

11 section 93.305 of title 24, Code of Federal 

12 Regulations, or any successor regulation. 

13 (B) LONGER PERIODS PERMITTED.—Noth14 ing in subparagraph (A) shall be construed to 

15 prohibit a recipient of a grant under this sec16 tion from establishing a longer affordability pe17 riod than is required under that subparagraph. 

18 (4) DEADLINE FOR EXPENDING FUNDS.—A re19 cipient of a grant under this section shall expend— 

20 (A) not less than 50 percent of allocated 

21 funds under this section not later than 3 years 

22 after the date on which the funds become avail23 able to the grantee for obligation; and 

24 (B) 100 percent of allocated funds under 

25 this section not later than 6 years after the 


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1 date on which the funds become available to the 

2 grantee for obligation. 

3 (d) TECHNICAL ASSISTANCE.— 

4 (1) IN GENERAL.—The Secretary may use not 

5 more than 2 percent of the funds made available 

6 under this section to provide technical assistance to 

7 grantees under this section. 

8 (2) SENSE OF CONGRESS.—It is the sense of 

9 Congress that, to the extent practicable, the Sec10 retary shall provide technical assistance directly to 

11 grantees under this section. 

12 (e) DEADLINE FOR AWARDING FUNDS.—The Sec13 retary shall award all grant funds authorized under this 

14 section not later than 1 year after the date of enactment 

15 of this Act. 

16 (f) EXISTING REGULATIONS.—Except to the extent 

17 that a regulation is in conflict with the provisions of this 

18 Act, the regulations applicable to the provision of emer19 gency assistance for the redevelopment of abandoned and 

20 foreclosed homes, as authorized under title III of division 

21 B of the Housing and Economic Recovery Act of 2008 

22 (42 U.S.C. 5301 note; Public Law 110–289) and subse23 quent Acts, as in effect on the day before the date of enVerDate Sep 11 2014 23:42 Apr 01, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S580.IS S580

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1 actment of this Act, shall apply to the provision of assist2 ance under this Act. 

Æ 


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