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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3502 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3502

 To create jobs and reinvest in communities through the rehabilitation 
of abandoned and foreclosed residential and commercial properties, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 18, 2011

Ms. Waters (for herself, Mr. Frank of Massachusetts, Mr. Gutierrez, Mr. 
   Ackerman, Mr. Clay, Mr. Miller of North Carolina, Mr. Al Green of 
Texas, Mr. Cleaver, Mr. Carson of Indiana, Mr. Peters, Ms. Norton, Ms. 
Richardson, Mr. Conyers, Mr. Brady of Pennsylvania, Mr. Cicilline, Ms. 
  Jackson Lee of Texas, Mr. Kildee, and Mr. Carnahan) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL

 
 To create jobs and reinvest in communities through the rehabilitation 
of abandoned and foreclosed residential and commercial properties, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Project Rebuild 
Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Direct appropriations.
Sec. 3. Allocation of appropriated amounts.
Sec. 4. Use of funds.
Sec. 5. Limitations.
Sec. 6. Rules of construction.
Sec. 7. Authority to specify alternative requirements.
Sec. 8. Nationwide distribution of resources.
Sec. 9. Limitation on use of funds with respect to eminent domain.
Sec. 10. Limitation on distribution of funds.
Sec. 11. Rental housing preferences.
Sec. 12. Job creation.
Sec. 13. Program support and capacity building.
Sec. 14. Enforcement and prevention of fraud and abuse.
Sec. 15. Conformance of policies and procedures.
Sec. 16. Severability.
Sec. 17. Buy American--use of American iron, steel, and manufactured 
                            goods.
Sec. 18. Wage rate and employment protection requirements.

SEC. 2. DIRECT APPROPRIATIONS.

    There is appropriated, out of any money in the Treasury not 
otherwise appropriated, $15,000,000,000, to remain available until 
September 30, 2014, for assistance to eligible entities, including 
States and units of general local government (as such terms are defined 
in section 102 of the Housing and Community Development Act of 1974 (42 
U.S.C. 5302)), and qualified nonprofit organizations, businesses or 
consortia of eligible entities, for the redevelopment of abandoned and 
foreclosed-upon properties and for the stabilization of affected 
neighborhoods.

SEC. 3. ALLOCATION OF APPROPRIATED AMOUNTS.

    (a) In General.--Of the amounts appropriated, two-thirds shall be 
allocated to States and units of general local government based on a 
funding formula established by the Secretary of Housing and Urban 
Development (in this Act referred to as the ``Secretary''). Of the 
amounts appropriated, one-third shall be distributed competitively to 
eligible entities.
    (b) Formula To Be Devised Swiftly.--The funding formula required 
under subsection (a) shall be established and the Secretary shall 
announce formula funding allocations, not later than 30 days after the 
date of enactment of this Act.
    (c) Formula Criteria.--The Secretary may establish a minimum grant 
size, and the funding formula required under subsection (a) shall 
ensure that any amounts appropriated or otherwise made available under 
this Act are allocated to States and units of general local government 
with the greatest need, as such need is determined in the discretion of 
the Secretary based on--
            (1) the number and percentage of home foreclosures in each 
        State or unit of general local government;
            (2) the number and percentage of homes in default or 
        delinquency in each State or unit of general local government; 
        and
            (3) other factors such as established program designs, 
        grantee capacity and performance, number and percentage of 
        commercial foreclosures, overall economic conditions, and other 
        market needs data, as determined by the Secretary.
    (d) Competition Criteria.--
            (1) Eligible entities.--For the funds distributed 
        competitively, eligible entities shall be States, units of 
        general local government, nonprofit entities, for-profit 
        entities, and consortia of eligible entities that demonstrate 
        capacity to use funding within the period of this program.
            (2) Selection criteria.--In selecting grantees, the 
        Secretary shall ensure that grantees are in areas with the 
        greatest number and percentage of residential and commercial 
        foreclosures and other market needs data, as determined by the 
        Secretary. Additional award criteria shall include demonstrated 
        grantee capacity to execute projects involving acquisition and 
        rehabilitation or redevelopment of foreclosed residential and 
        commercial property and neighborhood stabilization, leverage, 
        knowledge of market conditions and of effective stabilization 
        activities to address identified conditions, and any additional 
        factors determined by the Secretary.
            (3) Minimum grant size.--The Secretary may establish a 
        minimum grant size.
            (4) Publication of criteria.--The Secretary shall publish 
        competition criteria for any grants awarded under this Act not 
        later than 60 days after appropriation of funds, and 
        applications shall be due to the Secretary within 120 days.

SEC. 4. USE OF FUNDS.

    (a) Obligation and Expenditure.--The Secretary shall obligate all 
funding within 150 days of enactment of this Act. Any eligible entity 
that receives amounts pursuant to this Act shall expend all funds 
allocated to it within three years of the date the funds become 
available to the grantee for obligation. Furthermore, the Secretary 
shall by notice establish intermediate expenditure benchmarks at the 
one and two year dates from the date the funds become available to the 
grantee for obligation.
    (b) Priorities.--
            (1) Job creation.--Each grantee or eligible entity shall 
        describe how its proposed use of funds will prioritize job 
        creation, and secondly, will address goals to stabilize 
        neighborhoods, reverse vacancy, or increase or stabilize 
        residential and commercial property values.
            (2) Targeting.--Any State or unit of general local 
        government that receives formula amounts pursuant to this Act 
        shall, in distributing and targeting such amounts give priority 
        emphasis and consideration to those metropolitan areas, 
        metropolitan cities, urban areas, rural areas, low- and 
        moderate-income areas, and other areas with the greatest need, 
        including those--
                    (A) with the greatest percentage of home 
                foreclosures;
                    (B) identified as likely to face a significant rise 
                in the rate of residential or commercial foreclosures; 
                and
                    (C) with higher than national average unemployment 
                rate.
            (3) Leverage.--Each grantee or eligible entity shall 
        describe how its proposed use of funds will leverage private 
        funds.
    (c) Eligible Uses.--Amounts made available under this Act may be 
used to--
            (1) establish financing mechanisms for the purchase and 
        redevelopment of abandoned and foreclosed-upon properties, 
        including such mechanisms as soft-seconds, loan loss reserves, 
        and shared-equity loans for low- and moderate-income 
        homebuyers;
            (2) purchase and rehabilitate properties that have been 
        abandoned or foreclosed-upon, in order to sell, rent, or 
        redevelop such properties;
            (3) establish and operate land banks for properties that 
        have been abandoned or foreclosed-upon;
            (4) demolish blighted structures;
            (5) redevelop abandoned, foreclosed, demolished, or vacant 
        properties; and
            (6) engage in other activities, as determined by the 
        Secretary through notice, that are consistent with the goals of 
        creating jobs, stabilizing neighborhoods, reversing vacancy 
        reduction, and increasing or stabilizing residential and 
        commercial property values.

SEC. 5. LIMITATIONS.

    (a) On Purchases.--Any purchase of a property under this Act shall 
be at a price not to exceed its current market value, taking into 
account its current condition.
    (b) Rehabilitation.--Any rehabilitation of an eligible property 
under this Act shall be to the extent necessary to comply with 
applicable laws, and other requirements relating to safety, quality, 
marketability, and habitability, in order to sell, rent, or redevelop 
such properties or provide a renewable energy source or sources for 
such properties.
    (c) Sale of Homes.--If an abandoned or foreclosed-upon home is 
purchased, redeveloped, or otherwise sold to an individual as a primary 
residence, then such sale shall be in an amount equal to or less than 
the cost to acquire and redevelop or rehabilitate such home or property 
up to a decent, safe, marketable, and habitable condition.
    (d) On Demolition of Public Housing.--Public housing, as defined in 
section 3(b)(6) of the United States Housing Act of 1937, may not be 
demolished with funds under this Act.
    (e) On Demolition Activities.--No more than 10 percent of any grant 
made under this Act may be used for demolition activities unless the 
Secretary determines that such use represents an appropriate response 
to local market conditions.
    (f) On Use of Funds for Non-Residential Property.--No more than 30 
percent of any grant made under this Act may be used for eligible 
activities under paragraphs (1), (2), and (5) of section 4(c) that will 
not result in residential use of the property involved unless the 
Secretary determines that such use represents an appropriate response 
to local market conditions.

SEC. 6. RULES OF CONSTRUCTION.

    (a) In General.--Except as otherwise provided by this Act, amounts 
appropriated, revenues generated, or amounts otherwise made available 
to eligible entities under this Act shall be treated as though such 
funds were community development block grant funds under title I of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.).
    (b) No Match.--No matching funds shall be required in order for an 
eligible entity to receive any amounts under this Act.
    (c) Tenant Protections.--An eligible entity receiving a grant under 
this Act shall comply with the 14th, 17th, 18th, 19th, 20th, 21st, 
22nd, and 23rd provisos of the heading ``Community Planning and 
Development--Community Development Fun'' in title XII of Division A of 
American Recovery and Reinvestment Act of 2009 (Public Law 111-5, 123 
Stat. 218-19), as amended by section 1497(b)(2) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Public Law 111-203, 124 
Stat. 2211).
    (d) Vicinity Hiring.--An eligible entity receiving a grant under 
this Act shall comply with section 1497(a)(8) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Public Law 111-203, 129 
Stat. 2210).

SEC. 7. AUTHORITY TO SPECIFY ALTERNATIVE REQUIREMENTS.

    (a) In General.--In administering the program under this Act, the 
Secretary may specify alternative requirements to any provision under 
title I of the Housing and Community Development Act of 1974 or under 
title I of the Cranston-Gonzalez National Affordable Housing Act of 
1990 (except for those provisions in these laws related to fair 
housing, nondiscrimination, labor standards, and the environment) for 
the purpose of expediting and facilitating the use of funds under this 
Act.
    (b) Notice.--The Secretary shall provide written notice of intent 
to the public via internet to exercise the authority to specify 
alternative requirements under subsection (a).
    (c) Low- and Moderate-Income Requirement.--
            (1) In general.--Notwithstanding the authority of the 
        Secretary under subsection (a)--
                    (A) all of the formula and competitive grantee 
                funds appropriated or otherwise made available under 
                this Act shall be used with respect to individuals and 
                families whose income does not exceed 120 percent of 
                area median income; and
                    (B) not less than 25 percent of the formula and 
                competitive grantee funds appropriated or otherwise 
                made available under this Act shall be used for the 
                purchase and redevelopment of eligible properties that 
                will be used to house individuals or families whose 
                incomes do not exceed 50 percent of area median income.
            (2) Recurrent requirement.--The Secretary shall, by rule or 
        order, ensure, to the maximum extent practicable and for the 
        longest feasible term, that the sale, rental, or redevelopment 
        of abandoned and foreclosed-upon homes and residential 
        properties under this Act remain affordable to individuals or 
        families described in paragraph (1).

SEC. 8. NATIONWIDE DISTRIBUTION OF RESOURCES.

    Notwithstanding any other provision of this Act, each State shall 
receive not less than $20,000,000 of formula funds.

SEC. 9. LIMITATION ON USE OF FUNDS WITH RESPECT TO EMINENT DOMAIN.

    No State or unit of general local government may use any amounts 
received pursuant to this Act to fund any project that seeks to use the 
power of eminent domain, unless eminent domain is employed only for a 
public use, which shall not be construed to include economic 
development that primarily benefits private entities.

SEC. 10. LIMITATION ON DISTRIBUTION OF FUNDS.

    (a) In General.--None of the funds made available under this Act 
shall be distributed to--
            (1) an organization which has been indicted for a violation 
        under Federal law relating to an election for Federal office; 
        or
            (2) an organization which employs applicable individuals.
    (b) Applicable Individuals Defined.--In this section, the term 
``applicable individual'' means an individual who--
            (1) is--
                    (A) employed by the organization in a permanent or 
                temporary capacity;
                    (B) contracted or retained by the organization; or
                    (C) acting on behalf of, or with the express or 
                apparent authority of, the organization; and
            (2) has been indicted for a violation under Federal law 
        relating to an election for Federal office.

SEC. 11. RENTAL HOUSING PREFERENCES.

    Each State and local government receiving formula amounts shall 
establish procedures to create preferences for the development of 
affordable rental housing.

SEC. 12. JOB CREATION.

    If a grantee chooses to use funds to create jobs by establishing 
and operating a program to maintain eligible neighborhood properties, 
not more than 10 percent of any grant may be used for that purpose.

SEC. 13. PROGRAM SUPPORT AND CAPACITY BUILDING.

    The Secretary may use up to 0.75 percent of the funds appropriated 
for capacity building of and support for eligible entities and grantees 
undertaking neighborhood stabilization programs, staffing, training, 
technical assistance, technology, monitoring, travel, enforcement, 
research, and evaluation activities, subject to the following 
requirements:
            (1) Funds set aside for the purposes of this section shall 
        remain available until September 30, 2016.
            (2) Any funds made available under this section and used by 
        the Secretary for personnel expenses related to administering 
        funding under this subparagraph shall be transferred to 
        ``Personnel Compensation and Benefits, Community Planning and 
        Development''.
            (3) Any funds made available under this section and used by 
        the Secretary for training or other administrative expenses 
        shall be transferred to ``Administration, Operations, and 
        Management, Community Planning and Development'' for non-
        personnel expenses.
            (4) Any funds made available under this section and used by 
        the Secretary for technology shall be transferred to ``Working 
        Capital Fund''.

SEC. 14. ENFORCEMENT AND PREVENTION OF FRAUD AND ABUSE.

    The Secretary shall establish and implement procedures to prevent 
fraud and abuse of funds under this Act, and shall impose a requirement 
that grantees have an internal auditor to continuously monitor grantee 
performance to prevent fraud, waste, and abuse. Grantees shall provide 
the Secretary and citizens with quarterly progress reports. The 
Secretary shall recapture funds from formula and competitive grantees 
that do not expend 100 percent of allocated funds within 3 years of the 
date that funds become available, and from underperforming or 
mismanaged grantees, and shall re-allocate those funds by formula to 
target areas with the greatest need, as determined by the Secretary 
through notice. The Secretary may take an alternative sanctions action 
only upon determining that such action is necessary to achieve program 
goals in a timely manner.

SEC. 15. CONFORMANCE OF POLICIES AND PROCEDURES.

    The Secretary of Housing and Urban Development shall to the extent 
feasible conform policies and procedures for grants made under this Act 
to the policies and practices already in place for the grants made 
under section 2301 of the Housing and Economic Recovery Act of 2008; 
division A, title XII of the American Recovery and Reinvestment Act of 
2009; or section 1497 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act.

SEC. 16. SEVERABILITY.

    If any provision of this Act, or the application thereof to any 
person or circumstance, is held invalid, the remainder of the Act and 
the application of such provision to other persons or circumstances 
shall not be affected thereby.

SEC. 17. BUY AMERICAN--USE OF AMERICAN IRON, STEEL, AND MANUFACTURED 
              GOODS.

    (a) Buy American.--None of the funds appropriated or otherwise made 
available by this Act may be used for a project for the construction, 
alteration, maintenance, or repair of a public building or public work 
unless all of the iron, steel, and manufactured goods used in the 
project are produced in the United States.
    (b) Exceptions.--Subsection (a) shall not apply in any case or 
category of cases in which the head of the Federal department or agency 
involved finds that--
            (1) applying subsection (a) would be inconsistent with the 
        public interest;
            (2) iron, steel, and the relevant manufactured goods are 
        not produced in the United States in sufficient and reasonably 
        available quantities and of a satisfactory quality; or
            (3) inclusion of iron, steel, and manufactured goods 
        produced in the United States will increase the cost of the 
        overall project by more than 25 percent.
    (c) Publication.--If the head of a Federal department or agency 
determines that it is necessary to waive the application of subsection 
(a) based on a finding under subsection (b), the head of the department 
or agency shall publish in the Federal Register a detailed written 
justification as to why the provision is being waived.
    (d) Consistency With International Agreements.--This section shall 
be applied in a manner consistent with United States obligations under 
international agreements.

SEC. 18. WAGE RATE AND EMPLOYMENT PROTECTION REQUIREMENTS.

    (a) Wage Rates.--Notwithstanding any other provision of law and in 
a manner consistent with other provisions in this Act, all laborers and 
mechanics employed by contractors and subcontractors on projects funded 
directly by or assisted in whole or in part by and through the Federal 
Government pursuant to this Act shall be paid wages at rates not less 
than those prevailing on projects of a character similar in the 
locality as determined by the Secretary of Labor in accordance with 
subchapter IV of chapter 31 of title 40, United States Code.
    (b) Labor Standards.--With respect to the labor standards specified 
in this section, the Secretary of Labor shall have the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 (64 
Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States 
Code.
    (c) Projects.--Projects as defined under title 49, United States 
Code, funded directly by or assisted in whole or in part by and through 
the Federal Government pursuant to this Act shall be subject to the 
requirements of section 5333(b) of title 49, United States Code.
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