I 

112TH CONGRESS 

2D SESSION H. R. 4210 

To provide $4,000,000,000 in new funding through bonding to empower 

States to undertake significant residential and commercial structure demolition projects in urban and other targeted areas, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2012 

Mr. LATOURETTE (for himself, Ms. FUDGE, Mr. KUCINICH, Mr. RYAN of 

Ohio, Mr. STIVERS, Mr. KILDEE, Mr. CONYERS, Ms. SUTTON, Mr. 

CLARKE of Michigan, Mr. TIBERI, and Mr. TURNER of Ohio) introduced 

the following bill; which was referred to the Committee on Ways and 

Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To provide $4,000,000,000 in new funding through bonding 

to empower States to undertake significant residential 

and commercial structure demolition projects in urban 

and other targeted areas, 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 ‘‘Restore our Neighbor5 hoods Act of 2012’’. 


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1 SEC. 2. CREDIT TO HOLDERS OF QUALIFIED URBAN DEMO2 LITION BONDS. 

3 (a) IN GENERAL.—Subpart I of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 is amended by adding at the end the following new 

6 section: 

7 ‘‘SEC. 54G. QUALIFIED URBAN DEMOLITION BONDS. 

8 ‘‘(a) QUALIFIED URBAN DEMOLITION BOND.—For 

9 purposes of this subchapter, the term ‘qualified urban 

10 demolition bond’ means any bond issued as part of an 

11 issue if— 

12 ‘‘(1) 100 percent of the available project pro13 ceeds of such issue are to be used for expenditures 

14 incurred after the date of the enactment of this sec15 tion for 1 or more qualified projects pursuant to an 

16 allocation of such proceeds to such project or 

17 projects by a qualified issuer, 

18 ‘‘(2) the bond is issued by a qualified issuer 

19 and is in registered form (within the meaning of sec20 tion 149(a)), 

21 ‘‘(3) the qualified issuer designates such bond 

22 for purposes of this section, 

23 ‘‘(4) the term of each bond which is part of 

24 such issue does not exceed 30 years, 


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1 ‘‘(5) such bond is issued during the 5-year pe2 riod beginning on the date of the enactment of this 

3 section, and 

4 ‘‘(6) the issue meets the requirements of sub5 section (e). 

6 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES7 IGNATED.— 

8 ‘‘(1) IN GENERAL.—The maximum aggregate 

9 face amount of bonds which may be designated 

10 under subsection (a) by a State shall not exceed the 

11 qualified urban demolition bond limitation amount 

12 allocated to such State under paragraph (3). 

13 ‘‘(2) NATIONAL QUALIFIED URBAN DEMOLITION

14 BOND LIMITATION AMOUNT.—There is a national 

15 qualified urban demolition bond limitation amount of 

16 $4,000,000,000. 

17 ‘‘(3) ALLOCATION TO STATES.— 

18 ‘‘(A) IN GENERAL.—The national qualified 

19 urban demolition bond limitation shall be allo20 cated by the Secretary among the States on the 

21 following basis and in such manner so as to en22 sure that all of such limitation amount is allo23 cated before the date which is 3 months after 

24 the date of the enactment of this section: 


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1 ‘‘(i) $2,000,000,000 to be allocated 

2 among the qualified States in accordance 

3 with subparagraph (B), and 

4 ‘‘(ii) $2,000,000,000 to be equally al5 located among all States. 

6 ‘‘(B) FORMULA FOR ALLOCATION AMONG

7 QUALIFIED STATES.— 

8 ‘‘(i) IN GENERAL.—The amount allo9 cated to a State under subparagraph (A)(i) 

10 shall be an amount equal to the amount 

11 specified in subparagraph (A)(i) multiplied 

12 by the ratio that the nonseasonal vacant 

13 properties in the State bears to the total 

14 nonseasonal vacant properties of all quali15 fied States. 

16 ‘‘(ii) NONSEASONAL VACANT PROP17 ERTIES.—For purposes of clause (i), non18 seasonal vacant properties shall be deter19 mined by the Secretary on the basis of 

20 2010 decennial census. 

21 ‘‘(4) ALLOCATION OF LIMITATION AMOUNT BY

22 STATES.—The limitation amount allocated to a 

23 State under paragraph (3) shall be allocated by the 

24 State to qualified issuers within such State. 


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1 ‘‘(5) REALLOCATION OF UNUSED ISSUANCE

2 LIMITATION.—If at the end of the 2-year period be3 ginning on the date of the enactment of this section, 

4 the national qualified urban demolition bond limita5 tion amount under paragraph (2) exceeds the total 

6 amount of qualified urban demolition bonds issued 

7 during such period, such excess shall be reallocated 

8 among the qualified States in such manner as the 

9 Secretary determines appropriate so as to ensure to 

10 the extent possible that all of such limitation amount 

11 is issued in the form of qualified urban demolition 

12 bonds before the end of the 5-year period beginning 

13 on the date of the enactment of this section. 

14 ‘‘(c) QUALIFIED PROJECT.—For purposes of this sec15 tion, the term ‘qualified project’ means the direct and indi16 rect demolition costs properly attributable to any project 

17 proposed and approved by a qualified issuer, but does not 

18 include costs of operation or maintenance with respect to 

19 such project. 

20 ‘‘(d) APPLICABLE CREDIT RATE.—In lieu of section 

21 54A(b)(3), for purposes of section 54A(b)(2), the applica22 ble credit rate with respect to an issue under this section 

23 is the rate equal to an average market yield (as of the 

24 day before the date of sale of the issue) on outstanding 


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1 long-term corporate debt obligations (determined in such 

2 manner as the Secretary prescribes). 

3 ‘‘(e) SPECIAL RULES RELATING TO EXPENDI4 TURES.—In lieu of subparagraphs (A) and (B) of section 

5 54A(d)— 

6 ‘‘(1) IN GENERAL.—An issue shall be treated as 

7 meeting the requirements of this subsection if, as of 

8 the date of issuance, the qualified issuer reasonably 

9 expects— 

10 ‘‘(A) at least 100 percent of the available 

11 project proceeds of such issue are to be spent 

12 for 1 or more qualified projects within the 5- 

13 year expenditure period beginning on such date, 

14 and 

15 ‘‘(B) to incur a binding commitment with 

16 a third party to spend at least 10 percent of the 

17 proceeds of such issue with respect to such 

18 projects within the 12-month period beginning 

19 on such date. 

20 ‘‘(2) RULES REGARDING CONTINUING COMPLI21 ANCE AFTER 5-YEAR DETERMINATION.—To the ex22 tent that less than 100 percent of the available 

23 project proceeds of such issue are expended by the 

24 close of the 5-year expenditure period beginning on 

25 the date of issuance, the qualified issuer shall reVerDate Mar 15 2010 03:30 Mar 20, 2012 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4210.IH H4210

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1 deem all of the nonqualified bonds within 90 days 

2 after the end of such period. For purposes of this 

3 paragraph, the amount of the nonqualified bonds re4 quired to be redeemed shall be determined in the 

5 same manner as under section 142. 

6 ‘‘(f) RECAPTURE OF PORTION OF CREDIT WHERE

7 CESSATION OF COMPLIANCE.—If any bond which when 

8 issued purported to be a qualified urban demolition bond 

9 ceases to be such a bond, the qualified issuer shall pay 

10 to the United States (at the time required by the Sec11 retary) an amount equal to the sum of— 

12 ‘‘(1) the aggregate of the credits allowable 

13 under section 54A with respect to such bond (deter14 mined without regard to section 54A(c)) for taxable 

15 years ending during the calendar year in which such 

16 cessation occurs and each succeeding calendar year 

17 ending with the calendar year in which such bond is 

18 redeemed by the land bank, and 

19 ‘‘(2) interest at the underpayment rate under 

20 section 6621 on the amount determined under para21 graph (1) for each calendar year for the period be22 ginning on the first day of such calendar year. 

23 ‘‘(g) OTHER DEFINITIONS AND SPECIAL RULES.— 

24 For purposes of this section— 


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1 ‘‘(1) QUALIFIED ISSUER.—The term ‘qualified 

2 issuer’ means— 

3 ‘‘(A) a State-authorized land bank, or 

4 ‘‘(B) with respect a State that does not 

5 have one or more State-authorized land banks, 

6 the State or any political subdivision or instru7 mentality thereof. 

8 ‘‘(2) STATE-AUTHORIZED LAND BANK.—The 

9 term ‘State-authorized land bank’ means a special 

10 unit of government or public purpose corporation— 

11 ‘‘(A) expressly charged under State law 

12 with the reclamation, repurposing and redevel13 opment of vacant and abandoned land, 

14 ‘‘(B) enabled under State law to conduct 

15 large scale demolition projects, 

16 ‘‘(C) organized in a State which has en17 acted legislation allowing for the expedited tax 

18 foreclosure of vacant, abandoned, and tax delin19 quent property, and 

20 ‘‘(D) which may include a joint venture 

21 among 2 or more State-authorized land banks 

22 or among other entities with whom such special 

23 unit of government or public purpose corpora24 tion is authorized to enter into a joint venture. 


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1 ‘‘(3) QUALIFIED STATE.—The term ‘qualified 

2 State’ means a State which meets 3 of the following 

3 4 requirements: 

4 ‘‘(A) The State ranks in the top 20 among 

5 all States in percentage change in nonseasonal 

6 vacancies in the time period between the 2000 

7 decennial census and the 2010 decennial cen8 sus. 

9 ‘‘(B) The State ranks in the top 25 among 

10 all States in unemployment rate (seasonally ad11 justed) for the most recent 12-month period 

12 available. 

13 ‘‘(C) The State ranks in the top 25 among 

14 all States in percentage of loans in foreclosure 

15 for the most recent quarter available. 

16 ‘‘(D) The State ranks in the top 20 among 

17 all States in the lowest percentage change in 

18 population growth in the time period between 

19 the 2000 decennial census and the 2010 decen20 nial census. 

21 ‘‘(4) CREDITS MAY BE TRANSFERRED.—Not22 withstanding in any law or rule of law shall be con23 strued to limit the transferability of the credit or 

24 bond allowed by this section through sale and repur25 chase agreements.’’. 


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1 (b) CONFORMING AMENDMENTS.— 

2 (1) Paragraph (1) of section 54A(d) of such 

3 Code is amended by striking ‘‘or’’ at the end of sub4 paragraph (D), by inserting ‘‘or’’ at the end of sub5 paragraph (E), and by inserting after subparagraph 

6 (E) the following new subparagraph: 

7 ‘‘(E) a qualified urban demolition bond,’’. 

8 (2) Subparagraph (C) of section 54A(d)(2) is 

9 amended by striking ‘‘and’’ at the end of clause (iv), 

10 by striking the period at the end of clause (v) and 

11 inserting ‘‘, and’’, and by adding at the end the fol12 lowing new clause: 

13 ‘‘(vi) in the case of a qualified urban demolition bond, 

14 a purpose specified in section 54G(a)(1).’’. 

15 (3) The table of sections for subpart I of part 

16 IV of subchapter A of chapter 1 of such Code is 

17 amended by adding at the end the following new 

18 item: 

‘‘Sec. 54G. Qualified urban demolition bonds.’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to bonds issued after the date of 

21 the enactment of this Act. 

22 SEC. 3. USE OF NEIGHBORHOOD STABILIZATION PROGRAM 

23 FUNDS FOR DEMOLITION ACTIVITIES. 

24 (a) NSP2 AND NSP3 FUNDS.— 


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1 (1) EXCEPTION TO LIMITATION ON USE FOR

2 DEMOLITION.—Notwithstanding the 13th proviso of 

3 the second undesignated paragraph under the head4 ing ‘‘Community Planning and Development—Com5 munity Development Fund’’ in title XII of division 

6 A of the American Recovery and Reinvestment Act 

7 of 2009 (Public Law 111–5; 123 Stat. 218) and sec8 tion 1497(a) of the Dodd-Frank Wall Street Reform 

9 and Consumer Protection Act (Public Law 111–203; 

10 124 Stat. 2209), a qualified State or unit of general 

11 local government in a qualified State may use all or 

12 any portion of any amounts made available from a 

13 grant under such second undesignated paragraph or 

14 under such section 1497 for the purpose set forth in 

15 section 2301(c)(4)(D) of the Dodd-Frank Wall 

16 Street Reform and Consumer Protection Act (42 

17 U.S.C. 5301 note), at the sole discretion of the State 

18 or unit of general local government. 

19 (2) DEFINITION.—For purposes of this sub20 section, the term ‘‘qualified State’’ has the meaning 

21 given such term in section 54G(g) of the Internal 

22 Revenue Code of 1986. 

23 (b) FUTURE GRANTS.—Subsection (c) of section 

24 2301 of the Housing and Economic Recovery Act of 2008 


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1 (42 U.S.C. 5301 note) is amended by adding at the end 

2 the following new paragraph: 

3 ‘‘(5) PROHIBITION OF LIMITATION ON USE FOR

4 DEMOLITION.—A qualified State or unit of general 

5 local government in a qualified State may use all or 

6 any portion of any amounts made available from a 

7 grant under this section for the purpose set forth in 

8 paragraph (4)(D) of this subsection, at the sole dis9 cretion of the State or unit of general local govern10 ment. For purposes of this paragraph, the term 

11 ‘qualified State’ has the meaning given such term in 

12 section 54G(g) of the Internal Revenue Code of 

13 1986.’’. 

Æ 


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