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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10009 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10009

   To improve the safety of, affordability of, and access to housing.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 18, 2024

  Mr. Lawler introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committees on 
Ways and Means, Oversight and Accountability, Energy and Commerce, and 
 Veterans' Affairs, 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 improve the safety of, affordability of, and access to housing.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; Table of contents.
          TITLE I--PROMOTING OPPORTUNITY AND INCREASING SUPPLY

Sec. 101. Identification of regulatory barriers to affordable housing 
                            in HUD annual report.
Sec. 102. Opportunity zones transparency, extension, and improvement.
Sec. 103. Qualifying ordinary income added to special rules for 
                            investments in opportunity zones.
Sec. 104. Relieving strain from shortages of transformers.
Sec. 105. Incentivizing zoning reform.
Sec. 106. Expanding and strengthening the low-income housing tax 
                            credit.
Sec. 107. Decreasing the equity penalty and incentivizing more long-
                            term owners to sell homes.
       TITLE II--INCREASING ACCESS TO HOUSING AND ADDRESSING COST

Sec. 201. Expanding workforce and volunteer housing.
Sec. 202. Supporting affordability and safety for public servants.
Sec. 203. Expanding programs supporting homeownership for those serving 
                            the community.
Sec. 204. Improving volunteer first responder housing.
Sec. 205. Improving access to housing for veterans.
Sec. 206. Supporting veteran families in need.
Sec. 207. Attracting private investment to build and rehabilitate 
                            owner-occupied homes.
Sec. 208. Better utilizing and disposing of unused military and 
                            government lands for housing.
Sec. 209. Energy conservation standards for manufactured housing.
Sec. 210. Rental assistance demonstration program.
Sec. 211. Creating incentives for small dollar loan originators.
Sec. 212. Small dollar mortgage points and fees.
Sec. 213. Removing Outdated Regulation for Manufactured Housing.
Sec. 214. Relieving Burdens on Affordability.
Sec. 215. Protecting Home Affordability from Energy Mandates.
       TITLE III--SERVING THE MOST VULNERABLE; HEALTH AND SAFETY

Sec. 301. GAO study to determine proximity of housing to Superfund 
                            sites.
Sec. 302. Ensuring public housing agencies inspect each dwelling unit 
                            each year.
Sec. 303. Incentivizing local solutions to homelessness.
Sec. 304. Improving mold and health standards.
Sec. 305. Improving Protection from Lead Hazards.
Sec. 306. Improving housing for the elderly and disabled.
                       TITLE IV--GOOD GOVERNANCE

Sec. 401. Requiring annual testimony and oversight from housing 
                            regulators.
Sec. 402. Requiring annual testimony and oversight for government 
                            guaranteed or insured mortgage programs.
Sec. 403. Testimony and report from United States Interagency Council 
                            on Homelessness.
Sec. 404. Report detailing NYCHA compliance with and HUD oversight of 
                            2019 agreement.
Sec. 405. FHA reporting requirements on safety and soundness.
Sec. 406. Combatting squatting.
Sec. 407. Reallocation of voucher funding.
                    TITLE V--REGULATORY FLEXIBILITY

Sec. 501. Authorization of Moving to Work Program.
Sec. 502. Rescission of Public and Indian Housing Notice 2021-18.
        TITLE VI--IMPROVING FINANCIAL LITERACY REGARDING HOUSING

Sec. 601. Reforms to housing counseling and financial literacy 
                            programs.

          TITLE I--PROMOTING OPPORTUNITY AND INCREASING SUPPLY

SEC. 101. IDENTIFICATION OF REGULATORY BARRIERS TO AFFORDABLE HOUSING 
              IN HUD ANNUAL REPORT.

    Section 8 of the Department of Housing and Urban Development Act 
(42 U.S.C. 3536) is amended by adding at the end the following: ``Each 
such annual report shall include an identification of significant 
regulatory barriers to affordable housing, within the meaning of such 
term as provided in the first sentence of section 1203 of the Housing 
and Community Development Act of 1992 (42 U.S.C. 12705b), and a 
discussion and analysis of how to reduce or remove such barriers.''.

SEC. 102. OPPORTUNITY ZONES TRANSPARENCY, EXTENSION, AND IMPROVEMENT.

    (a) Modification of Population Census Tracts Designated as 
Qualified Opportunity Zones.--Section 1400Z-1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(g) Disqualification of Certain Population Census Tracts.--
            ``(1) In general.--Except as provided in paragraph (5), any 
        disqualified census tract shall not be treated as a qualified 
        opportunity zone for any period after the date that is 30 days 
        after the date on which the Secretary publishes the final list 
        of disqualified census tracts under paragraph (4)(B).
            ``(2) Replacement zones.--
                    ``(A) In general.--The chief executive officer of a 
                State shall nominate additional population census 
                tracts to replace any population census tract the 
                designation of which as a qualified opportunity zone 
                was terminated by reason of paragraph (1). Except as 
                otherwise provided in this paragraph, the rules of 
                subsections (b), (c), (d), and (f) shall apply to any 
                population census tract nominated under this paragraph.
                    ``(B) Consultation.--No population census tract 
                nominated under subparagraph (A) may be designated as a 
                qualified opportunity zone unless the chief executive 
                officer of the State certifies in writing to the 
                Secretary that the chief executive officer has 
                consulted with the chief executive officer (or the 
                equivalent) of each local jurisdiction in which the 
                population census tract is located.
                    ``(C) Special rules.--For purposes of this 
                subchapter--
                            ``(i) any population census tract which is 
                        a disqualified census tract (as defined in 
                        paragraph (3) without regard to subparagraph 
                        (A)(i) thereof) may not be nominated as a 
                        qualified opportunity zone under this 
                        paragraph,
                            ``(ii) the determination period with 
                        respect to a nomination under subparagraph (A) 
                        shall be the 45-day period beginning on the 
                        date on which the Secretary publishes the final 
                        list of disqualified census tracts under 
                        paragraph (4)(B), as extended under subsection 
                        (b)(2), and
                            ``(iii) the period for which any such 
                        designation is in effect shall be the period 
                        beginning on the date such designation takes 
                        effect and ending on the last day of the 10th 
                        calendar year beginning on or after the 
                        designation date as a qualified opportunity 
                        zone for the population census tract which it 
                        is replacing as such a zone by reason of the 
                        termination under paragraph (1).
                    ``(D) Regulations and guidance.--The Secretary 
                shall prescribe such regulations or other guidance as 
                may be necessary or appropriate to carry out the 
                purposes of this paragraph.
            ``(3) Disqualified census tract.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `disqualified census 
                tract' means any population census tract which--
                            ``(i) was designated as a qualified 
                        opportunity zone before the date of the 
                        enactment of this subsection, and
                            ``(ii) is described in subparagraph (B) or 
                        (C).
                    ``(B) High median family income tracts.--
                            ``(i) In general.--Except as provided in 
                        clauses (ii) and (iii), a population census 
                        tract is described in this subparagraph if the 
                        median family income for such tract exceeds 130 
                        percent of the national median family income as 
                        published by Department of Housing and Urban 
                        Development or the CDFI Fund.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply if the poverty rate of such population 
                        census tract (excluding students enrolled in an 
                        institution of higher education (as defined in 
                        section 101 of the Higher Education Act of 
                        1965)) is equal to or greater than 30 percent.
                            ``(iii) Request to retain designation for 
                        certain population census tracts.--Clause (i) 
                        shall not apply if the Secretary, upon a 
                        request of the chief executive officer of the 
                        State made not later than 60 days after the 
                        date the Secretary publishes the list described 
                        in paragraph (4)(A), determines that--
                                    ``(I) the designation of such 
                                population census tract was consistent 
                                with the purposes of this subchapter, 
                                or
                                    ``(II) the median family income for 
                                the population census tract does not 
                                exceed 130 percent of the national 
                                median family income as published by 
                                Department of Housing and Urban 
                                Development or the CDFI Fund.
                    ``(C) Election to include additional population 
                census tracts.--
                            ``(i) In general.--A population census 
                        tract is described in this subparagraph if the 
                        Secretary, upon the request of the chief 
                        executive officer of the State submitted not 
                        later than 60 days after the date the Secretary 
                        publishes the list described in paragraph 
                        (4)(A), determines that the continued 
                        designation of such population census tract as 
                        a qualified opportunity zone is not consistent 
                        with the purposes of this subchapter.
                            ``(ii) Consultation.--No population census 
                        tract nominated under clause (i) may be 
                        designated as a qualified opportunity zone 
                        unless the chief executive officer of the State 
                        certifies in writing to the Secretary that the 
                        chief executive officer has consulted with the 
                        chief executive officer (or the equivalent) of 
                        each local jurisdiction in which the population 
                        census tract is located.
                            ``(iii) Regulations and guidance.--Not 
                        later than the date on which the Secretary 
                        publishes the final list of disqualified census 
                        tracts under paragraph (4)(B), the Secretary 
                        shall issue regulations or guidance with 
                        respect to the criteria to be used for making a 
                        determination by the Secretary under clause 
                        (i).
            ``(4) Identification and publication of disqualified census 
        tracts.--
                    ``(A) Initial identification.--As soon as 
                practical, but not later than 12 months after the date 
                of the enactment of this subsection, the Secretary 
                shall make public--
                            ``(i) a list of population census tracts 
                        described in paragraph (3)(B) (determined 
                        without regard to clause (iii) thereof), and
                            ``(ii) a list of population census tracts 
                        which are low-income communities and were not 
                        designated as a qualified opportunity zone 
                        before the date of enactment of this 
                        subsection.
                    ``(B) Final list of disqualified census tracts.--
                Not later than 105 days after the date the Secretary 
                publishes the list described in subparagraph (A), the 
                Secretary shall make public a final list of 
                disqualified census tracts.
            ``(5) Rules for qualified preexisting investments.--
                    ``(A) In general.--For purposes of this subchapter, 
                section 1400Z-2 shall be applied without regard to 
                paragraph (1) with respect to any qualified preexisting 
                trade or business.
                    ``(B) Qualified preexisting trade or business.--For 
                purposes of this paragraph--
                            ``(i) In general.--The term `qualified 
                        preexisting trade or business' means any trade 
                        or business of a qualified opportunity fund or 
                        qualified opportunity zone business which meets 
                        the requirements of clauses (ii) and (iii) of 
                        section 1400Z-2(d)(3)(A) and with respect to 
                        which--
                                    ``(I) before the date of the 
                                enactment of this subsection, a 
                                registration statement under the 
                                Securities Act of 1933 (15 U.S.C. 77a 
                                et seq.) is filed or any comparable 
                                offering memorandum or similar 
                                disclosure document is provided in 
                                reliance on section 230.506 of title 
                                17, Code of Federal Regulations (or 
                                successor regulations), promulgated 
                                under the Securities Act of 1933, that 
                                discloses the intent of such trade or 
                                business to invest in the disqualified 
                                census tract,
                                    ``(II) before the first date on 
                                which the disqualified census tract 
                                appears on any list published under 
                                paragraph (4), investments in the 
                                disqualified census tract are made or 
                                agreed pursuant to a binding agreement 
                                to be made which--
                                            ``(aa) aggregate more than 
                                        $250,000, and
                                            ``(bb) have been designated 
                                        in writing for the use in, or 
                                        the development of, such trade 
                                        or business, or
                                    ``(III) the qualified opportunity 
                                fund or qualified opportunity zone 
                                business is determined by the Secretary 
                                to have relied on the designation of 
                                the disqualified census tract as a 
                                qualified opportunity zone and to have 
                                suffered or is expected to suffer a 
                                loss as a result of the application of 
                                paragraph (1).
                            ``(ii) Trade or business.--The term `trade 
                        or business' includes any activity intended to 
                        qualify as a trade or business within the 
                        meaning of section 162.
                    ``(C) Regulations and guidance.--The Secretary 
                shall prescribe such regulations or guidance as may be 
                necessary or appropriate to carry out the purposes of 
                this paragraph, including guidance to prevent 
                speculative investment solely for the purpose of 
                falling within the definition of a qualified 
                preexisting trade or business.
            ``(6) Determination of population census tract data.--For 
        purposes of applying this subsection, in determining whether a 
        population census tract meets any qualification with respect to 
        poverty rate or any aspect of median income, such determination 
        shall be made using the most recent census data that has been 
        published by the Bureau of the Census as of the date of 
        enactment of this subsection.''.
    (b) Certain Former Industrial Tracts Permitted To Be Designated as 
Opportunity Zones.--Section 1400Z-1 of the Internal Revenue Code of 
1986, as amended by section 101, is amended by adding at the end the 
following new subsection:
    ``(h) Special Rule for Former Industrial Tracts Contiguous to 
Designated Opportunity Zones.--
            ``(1) In general.--For purposes of this chapter, the term 
        `qualified opportunity zone' means an population census tract 
        which is described in paragraph (2) and designated as a 
        qualified opportunity zone under this subsection.
            ``(2) Population census tract described.--A population 
        census tract is described in this subparagraph if--
                    ``(A) the tract--
                            ``(i) has a population of zero,
                            ``(ii) was previously used for industrial 
                        purposes and is a brownfield industrial site, 
                        and
                            ``(iii) is contiguous, including by water, 
                        to a population census tract on at least 1 side 
                        that has been designated as a qualified 
                        opportunity zone under this section, or
                    ``(B) the tract was merged, as a result of the 2020 
                decennial census, into a census tract described in 
                subparagraph (A)(iii) and met all requirements 
                described in subparagraph (A).
            ``(3) Designation.--For purposes of paragraph (1), a 
        population census tract that is described in paragraph (2) is 
        designated as a qualified opportunity zone if--
                    ``(A) not later than 30 days after the date of the 
                enactment of this subsection, the chief executive 
                officer of the State in which the tract is located--
                            ``(i) nominates the tract for designation 
                        as a qualified opportunity zone, and
                            ``(ii) notifies the Secretary in writing of 
                        such nomination, and
                    ``(B) not later than 30 days after receiving the 
                notification under subparagraph (A)(ii), the Secretary 
                certifies such nomination and designates such tract as 
                a qualified opportunity zone.
            ``(4) Determination of census tract information.--For 
        purposes of this subsection, the boundaries and population of a 
        census tract shall be determined based on United States Census 
        Bureau data for the 2010 decennial census.
            ``(5) Number of designations.--Population census tracts 
        designated as a qualified opportunity zone under this 
        subsection shall not be taken into account for purposes of 
        subsection (d).
            ``(6) Definitions.--For purposes of this subsection--
                    ``(A) Brownfield industrial site.--The term 
                `brownfield industrial site' means a population census 
                tract that includes real property the expansion, 
                redevelopment, or reuse of which may be complicated by 
                the presence or potential presence of a hazardous 
                substance or pollutant or contaminant, including real 
                property covered by a prospective purchaser agreement 
                or similar agreement entered into by the Environmental 
                Protection Agency or the appropriate State authority.
                    ``(B) Hazardous substance.--The term `hazardous 
                substance' means--
                            ``(i) a hazardous substance as defined in 
                        section 101(14) of the Comprehensive 
                        Environmental Response, Compensation, and 
                        Liability Act of 1980 (42 U.S.C. 9601(14)), or
                            ``(ii) petroleum or a petroleum product.
                    ``(C) Pollutant or contaminant.--The term 
                `pollutant or contaminant' has the meaning given such 
                term in section 101(33) of such Act.''.
    (c) Information Reporting on Qualified Opportunity Funds.--
            (1) In general.--
                    (A) Filing requirements for funds and investors.--
                Subpart A of part III of subchapter A of chapter 61 of 
                the Internal Revenue Code of 1986 is amended by 
                inserting after section 6039J the following new 
                sections:

``SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY FUNDS.

    ``(a) In General.--Every qualified opportunity fund shall file an 
annual return (at such time and in such manner as the Secretary may 
prescribe) containing the information described in subsection (b).
    ``(b) Information From Qualified Opportunity Funds.--The 
information described in this subsection is--
            ``(1) the name, address, and taxpayer identification number 
        of the qualified opportunity fund,
            ``(2) whether the qualified opportunity fund is organized 
        as a corporation or a partnership,
            ``(3) the value of the total assets held by the qualified 
        opportunity fund as of each date described in section 1400Z-
        2(d)(1),
            ``(4) the value of all qualified opportunity zone property 
        held by the qualified opportunity fund on each such date,
            ``(5) with respect to each investment held by the qualified 
        opportunity fund in qualified opportunity zone stock or a 
        qualified opportunity zone partnership interest--
                    ``(A) the name, address, and taxpayer 
                identification number of the corporation in which such 
                stock is held or the partnership in which such interest 
                is held, as the case may be,
                    ``(B) each North American Industry Classification 
                Code that applies to the trades or businesses conducted 
                by such corporation or partnership,
                    ``(C) the population census tracts in which the 
                qualified opportunity zone business property of such 
                corporation or partnership is located,
                    ``(D) the amount of the investment in such stock or 
                partnership interest as of each date described in 
                section 1400Z-2(d)(1),
                    ``(E) the value, as determined under regulations 
                issued by the Secretary, of tangible property held by 
                such corporation or partnership on each such date which 
                is owned by such corporation or partnership,
                    ``(F) the value, as determined under regulations 
                issued by the Secretary, of tangible property held by 
                such corporation or partnership on each such date which 
                is leased by such corporation or partnership,
                    ``(G) the information described in paragraph (6)(E) 
                with respect to buildings with 1 or more residential 
                rental units which are held by such corporation or 
                partnership, and
                    ``(H) the approximate average monthly number of 
                full-time equivalent employees of such corporation or 
                partnership for the year (within numerical ranges 
                identified by the Secretary) or such other indication 
                of the employment impact of such corporation or 
                partnership as determined appropriate by the Secretary, 
                which shall account for direct and indirect, temporary 
                and permanent jobs,
            ``(6) with respect to the items of qualified opportunity 
        zone business property held by the qualified opportunity fund--
                    ``(A) the North American Industry Classification 
                Code that applies to the trades or businesses in which 
                such property is held,
                    ``(B) the population census tract in which the 
                property is located,
                    ``(C) whether the property is owned or leased,
                    ``(D) the aggregate value, as determined under 
                regulations issued by the Secretary, of the items of 
                qualified opportunity zone property held by the 
                qualified opportunity fund as of each date described in 
                section 1400Z-2(d)(1), and
                    ``(E) in the case of each building with 1 or more 
                residential rental units--
                            ``(i) the total number of such residential 
                        rental units,
                            ``(ii) the number of such units occupied by 
                        tenants with an income of 50 percent or less of 
                        area median income adjusted for family size,
                            ``(iii) the number of such units occupied 
                        by tenants with an income in excess of 50 
                        percent, but not exceeding 60 percent of area 
                        median income adjusted for family size, and
                            ``(iv) whether--
                                    ``(I) at least 20 percent of such 
                                units are occupied by tenants described 
                                in clause (ii), or
                                    ``(II) at least 40 percent of such 
                                units are occupied by tenants with 
                                income averaging not more than 60 
                                percent of area median income adjusted 
                                for family size,
            ``(7) the approximate average monthly number of full-time 
        equivalent employees for the year of the trades or businesses 
        of the qualified opportunity fund in which qualified 
        opportunity zone business property is held (within numerical 
        ranges identified by the Secretary) or such other indication of 
        the employment impact of such trades or businesses as 
        determined appropriate by the Secretary, which shall account 
        for direct and indirect, temporary and permanent jobs,
            ``(8) with respect to each person who disposed of an 
        investment in the qualified opportunity fund during the year--
                    ``(A) the name and taxpayer identification number 
                of such person,
                    ``(B) the date or dates on which the investment 
                disposed was acquired, and
                    ``(C) the date or dates on which any such 
                investment was disposed and the amount of the 
                investment disposed, and
            ``(9) such other information as the Secretary may require.
    ``(c) Statement Required To Be Furnished to Investors.--Every 
person required to make a return under subsection (a) shall furnish to 
each person whose name is required to be set forth in such return by 
reason of subsection (b)(8) a written statement showing--
            ``(1) the name, address and phone number of the information 
        contact of the person required to make such return, and
            ``(2) the information required to be shown on such return 
        by reason of subsection (b)(8) with respect to such person.
    ``(d) Definitions.--For purposes of this section--
            ``(1) In general.--Any term used in this section which is 
        also used in subchapter Z of chapter 1 shall have the meaning 
        given such term under such subchapter.
            ``(2) Full-time equivalent employees.--The term `full-time 
        equivalent employees' means, with respect to any month, the sum 
        of--
                    ``(A) the number of full-time employees (as defined 
                in section 4980H(c)(4)) for the month, plus
                    ``(B) the number of employees determined (under 
                rules similar to the rules of section 4980H(c)(2)(E)) 
                by dividing the aggregate number of hours of service of 
                employees who are not full-time employees for the month 
                by 120.

``SEC. 6039L. INFORMATION ON PERSONS INVESTING IN QUALIFIED OPPORTUNITY 
              FUNDS.

    ``(a) In General.--Every taxpayer who makes an investment in a 
qualified opportunity fund shall provide an annual statement (at such 
time and in such manner as the Secretary may prescribe) containing the 
information described in subsection (b) with respect to each such 
investment.
    ``(b) Information From Investors.--The information described in 
this subsection is--
            ``(1) the name, address, and taxpayer identification number 
        of the taxpayer,
            ``(2) the name and taxpayer identification number of the 
        qualified opportunity fund in which the investment was made,
            ``(3) a description of such investment,
            ``(4) the date such investment was made,
            ``(5) the amount of short-term and long-term capital gains 
        for which an election was made under section 1400Z-2(a)(1) for 
        such investment,
            ``(6) in the case of any disposition of any investment in a 
        qualified opportunity fund during the taxable year--
                    ``(A) a description of the investment disposed,
                    ``(B) the date of the disposition, and
                    ``(C) the amount of any previously deferred short-
                term and long-term capital gain included in income as a 
                result of such disposition, and
            ``(7) such other information as the Secretary may require.
    ``(c) Definitions.--Any term used in this section which is also 
used in subchapter Z of chapter 1 shall have the meaning given such 
term under such subchapter.

``SEC. 6039M. INFORMATION REQUIRED FROM CERTAIN QUALIFIED OPPORTUNITY 
              ZONE BUSINESSES.

    ``(a) In General.--Every applicable qualified opportunity zone 
business shall furnish to the qualified opportunity fund described in 
subsection (b) a written statement in such manner and setting forth 
such information as the Secretary may by regulations prescribe for 
purposes of enabling such qualified opportunity fund to meet the 
requirements of section 6039(b)(5).
    ``(b) Applicable Qualified Opportunity Zone Business.--For purposes 
of subsection (a), the term `applicable qualified opportunity zone 
business' means any qualified opportunity zone business (as defined in 
section 1400Z-2(d)(3))--
            ``(1) which is a trade or business of a qualified 
        opportunity fund,
            ``(2) in which a qualified opportunity fund holds qualified 
        opportunity zone stock, or
            ``(3) in which a qualified opportunity fund holds a 
        qualified opportunity zone partnership interest.
    ``(c) Other Terms.--Any term used in this section which is also 
used in subchapter Z of chapter 1 shall have the meaning given such 
term under such subchapter.''.
                    (B) Penalties.--
                            (i) In general.--Part II of subchapter B of 
                        chapter 68 of the Internal Revenue Code of 1986 
                        is amended by inserting after section 6725 the 
                        following new section:

``SEC. 6726. FAILURE TO COMPLY WITH INFORMATION REPORTING REQUIREMENTS 
              RELATING TO QUALIFIED OPPORTUNITY FUNDS.

    ``(a) Information Returns by Qualified Opportunity Funds.--
            ``(1) In general.--In the case of any person required to 
        file a return under section 6039K fails to file a complete and 
        correct return under such section in the time and in the manner 
        prescribed therefor, such person shall pay a penalty of $500 
        for each day during which such failure continues.
            ``(2) Limitation.--
                    ``(A) In general.--The maximum penalty under this 
                subsection on failures with respect to any 1 return 
                shall not exceed $10,000.
                    ``(B) Large qualified opportunity funds.--In the 
                case of any failure described in paragraph (1) with 
                respect to a fund the gross assets of which (determined 
                on the last day of the taxable year) are in excess of 
                $10,000,000, subparagraph (A) shall be applied by 
                substituting `$50,000' for `$10,000'.
            ``(3) Reduction where correction in specified period.--If 
        any failure described in paragraph (1) is corrected on or 
        before the day 60 days after the due date (including 
        extensions) for filing the return, the penalty imposed by 
        paragraph (1) shall be $500 in lieu of the amount determined 
        under such paragraph.
            ``(4) De minimis errors.--If--
                    ``(A) there are one or more such failures described 
                in paragraph (1) relating to an incorrect dollar 
                amount, and no single amount in error differs from the 
                correct amount by more than $100, or
                    ``(B) there are one or more such failures described 
                in paragraph (1) relating to a non-numerical amount and 
                such error is inconsequential, then no correction shall 
                be required, and, for purposes of this section, such 
                statement shall be treated as having been filed with 
                all correct required information.
            ``(5) Penalty in cases of intentional disregard.--If a 
        failure described in paragraph (1) is due to intentional 
        disregard, then--
                    ``(A) paragraph (1) shall be applied by 
                substituting `$2,500' for `$500',
                    ``(B) paragraph (2)(A) shall be applied by 
                substituting `$50,000' for `$10,000', and
                    ``(C) paragraph (2)(B) shall be applied by 
                substituting `$250,000' for `$50,000'.
            ``(6) Inflation adjustment.--
                    ``(A) In general.--In the case of any failure 
                relating to a return required to be filed in a calendar 
                year beginning after 2023, each of the dollar amounts 
                in paragraphs (1), (2), (3), and (5) shall be increased 
                by an amount equal to such dollar amount multiplied by 
                the cost-of-living adjustment determined under section 
                1(f)(3) for the calendar year determined by 
                substituting `calendar year 2022' for `calendar year 
                2016' in subparagraph (A)(ii) thereof.
                    ``(B) Rounding.--
                            ``(i) In general.--If the $500 dollar 
                        amount in paragraph (1), (3), or (5)(A) or the 
                        $2,500 amount in paragraph (5)(A), after being 
                        increased under subparagraph (A), is not a 
                        multiple of $10, such dollar amount shall be 
                        rounded to the next lowest multiple of $10.
                            ``(ii) Asset threshold.--If the $10,000,000 
                        dollar amount in paragraph (2)(B), after being 
                        increased under subparagraph (A), is not a 
                        multiple of $10,000, such dollar amount shall 
                        be rounded to the next lowest multiple of 
                        $10,000.
                            ``(iii) Other dollar amounts.--If any 
                        dollar amount in paragraph (2), (3), or (5) 
                        (other than any amount to which clause (i) or 
                        (ii) applies), after being increased under 
                        subparagraph (A), is not a multiple of $1,000, 
                        such dollar amount shall be rounded to the next 
                        lowest multiple of $1,000.
    ``(b) Statements by Investors.--
            ``(1) In general.--If--
                    ``(A) any person is required to file a statement 
                under section 6039L for any period, and
                    ``(B) fails--
                            ``(i) to file such statement on or before 
                        the required filing date, or
                            ``(ii) fails to include all of the 
                        information required to be shown on the 
                        statement or includes incorrect information,
        such person shall pay a penalty of $5,000.
            ``(2) Reduction where correction in specified period.--If 
        any failure described in paragraph (1)(B) is corrected on or 
        before the day 60 days after the due date (including 
        extensions) for filing the return, the penalty imposed by 
        paragraph (1) shall be $500 in lieu of the amount determined 
        under such paragraph.
            ``(3) De minimis errors.--If--
                    ``(A) there are one or more such failures described 
                in paragraph (1)(B)(ii) relating to an incorrect dollar 
                amount, and no single amount in error differs from the 
                correct amount by more than $100, or
                    ``(B) there are one or more such failures described 
                in paragraph (1)(B)(ii) relating to a non-numerical 
                amount and such error is inconsequential,
        then no correction shall be required, and, for purposes of this 
        section, such statement shall be treated as having been filed 
        with all correct required information.
            ``(4) Penalty in cases of intentional disregard.--If one or 
        more failures described in paragraph (1)(B) are due to 
        intentional disregard of the filing requirement (or the correct 
        information reporting requirement), then, with respect to each 
        such failure--
                    ``(A) paragraphs (2) and (3) shall not apply, and
                    ``(B) the amount of the penalty determined under 
                paragraph (1) shall be $25,000.
            ``(5) Inflation adjustment.--
                    ``(A) In general.--In the case of any failure 
                relating to a statement required to be filed in a 
                calendar year beginning after 2023, each of the dollar 
                amounts in paragraphs (1), (2), and (4) shall be 
                increased by an amount equal to such dollar amount 
                multiplied by the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year determined 
                by substituting `calendar year 2022' for `calendar year 
                2016' in subparagraph (A)(ii) thereof.
                    ``(B) Rounding.--The amount of any increase under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of $100 ($10 in the case of any increase in 
                the amount under paragraph (2)).''.
                            (ii) Information required to be sent to 
                        other taxpayers.--Section 6724(d)(2) of such 
                        Code is amended--
                                    (I) by striking ``or'' at the end 
                                of subparagraph (II),
                                    (II) by striking the period at the 
                                end of the first subparagraph (JJ) 
                                (relating to section 6226) and 
                                inserting a comma,
                                    (III) by redesignating the second 
                                subparagraph (JJ) (relating to section 
                                6050Y) as subparagraph (KK),
                                    (IV) by striking the period at the 
                                end of subparagraph (KK) (as 
                                redesignated by subclause (III)) and 
                                inserting a comma, and
                                    (V) by inserting after subparagraph 
                                (KK) (as so redesignated) the following 
                                new subparagraphs:
                    ``(LL) section 6039K(c) (relating to disposition of 
                qualified opportunity fund investments), or
                    ``(MM) section 6039M (relating to information 
                required from certain qualified opportunity zone 
                businesses).''.
                    (C) Electronic filing.--Section 6011(e) of such 
                Code is amended by adding at the end the following new 
                paragraph:
            ``(8) Qualified opportunity funds.--Notwithstanding 
        paragraphs (1) and (2), any return filed by a qualified 
        opportunity fund shall be filed on magnetic media or other 
        machine-readable form.''.
                    (D) Clerical amendments.--
                            (i) The table of sections for subpart A of 
                        part III of subchapter A of chapter 61 of such 
                        Code is amended by inserting after the item 
                        relating to section 6039J the following new 
                        items:

``Sec. 6039K. Returns with respect to qualified opportunity funds.
``Sec. 6039L. Information on persons investing in qualified opportunity 
                            funds.
``Sec. 6039M. Information required from certain qualified opportunity 
                            zone businesses.''.
                            (ii) The table of sections for part II of 
                        subchapter B of chapter 68 of such Code is 
                        amended by inserting after the item relating to 
                        section 6725 the following new item:

``Sec. 6726. Failure to comply with information reporting requirements 
                            relating to qualified opportunity funds.''.
                    (E) Effective date.--The amendments made by this 
                paragraph shall apply to taxable years beginning after 
                the date of the enactment of this Act.
            (2) Reporting of data on opportunity zone tax incentives.--
                    (A) In general.--As soon as practical after the 
                date of the enactment of this Act, and annually 
                thereafter, the Secretary of the Treasury, or the 
                Secretary's delegate (referred to in this section as 
                the ``Secretary''), in consultation with the Director 
                of the Bureau of the Census and such other agencies as 
                the Secretary determines appropriate, shall make 
                publicly available a report on qualified opportunity 
                funds.
                    (B) Information included.--The report required 
                under subparagraph (A) shall include, to the extent 
                available, the following information:
                            (i) The number of qualified opportunity 
                        funds.
                            (ii) The aggregate dollar amount of assets 
                        held in qualified opportunity funds.
                            (iii) The aggregate dollar amount of 
                        investments made by qualified opportunity funds 
                        in qualified opportunity fund property across 
                        each industry class under the North American 
                        Industry Classification Code.
                            (iv) The percentage of population census 
                        tracts designated as qualified opportunity 
                        zones that have received qualified opportunity 
                        fund investments.
                            (v) For each population census tract 
                        designated as a qualified opportunity zone, the 
                        approximate average monthly number of full-time 
                        equivalent employees of the qualified 
                        opportunity zone businesses in such qualified 
                        opportunity zone for the preceding 12-month 
                        period (within numerical ranges identified by 
                        the Secretary) or such other indication of the 
                        employment impact of such qualified opportunity 
                        fund businesses as determined appropriate by 
                        the Secretary.
                            (vi) The percentage of the total amount of 
                        investments made directly or indirectly by 
                        qualified opportunity funds in--
                                    (I) qualified opportunity zone 
                                business property which is real 
                                property; and
                                    (II) other qualified opportunity 
                                zone business property.
                            (vii) For each population census tract, the 
                        aggregate approximate number of residential 
                        units resulting from investments made by 
                        qualified opportunity funds in real property.
                            (viii) The aggregate dollar amount of 
                        investments made by qualified opportunity funds 
                        in each population census tract.
                    (C) Additional information.--
                            (i) In general.--Beginning with the report 
                        submitted under subparagraph (A) for the 6th 
                        year after the date of the enactment of this 
                        Act, the Secretary shall include in such report 
                        the impacts and outcomes of a designation of a 
                        population census tract as a qualified 
                        opportunity zone as measured by economic 
                        indicators, such as job creation, poverty 
                        reduction, new business starts, and other 
                        metrics as determined by the Secretary.
                            (ii) Semi-decennial information.--
                                    (I) In general.--In the case of any 
                                report submitted under subparagraph (A) 
                                in the 6th year or the 11th year after 
                                the date of the enactment of this Act, 
                                the Secretary shall include the 
                                following information:
                                            (aa) For population census 
                                        tracts designated as a 
                                        qualified opportunity zone, a 
                                        comparison (based on aggregate 
                                        information) of the factors 
                                        listed in subclause (III) 
                                        between the 5-year period 
                                        ending on the date of the 
                                        enactment of Public Law 115-97 
                                        and the most recent 5-year 
                                        period for which data is 
                                        available.
                                            (bb) For population census 
                                        tracts designated as a 
                                        qualified opportunity zone, a 
                                        comparison (based on aggregate 
                                        information) of the factors 
                                        listed in subclause (III) for 
                                        the most recent 5-year period 
                                        for which data is available 
                                        between such population census 
                                        tracts and a similar population 
                                        census tracts that were not 
                                        designated as a qualified 
                                        opportunity zone.
                                    (II) Control groups.--For purposes 
                                of subclause (I), the Secretary may 
                                combine population census tracts into 
                                such groups as the Secretary determines 
                                appropriate for purposes of making 
                                comparisons.
                                    (III) Factors listed.--The factors 
                                listed in this subclause are the 
                                following:
                                            (aa) The unemployment rate.
                                            (bb) The number of persons 
                                        working in the population 
                                        census tract, including the 
                                        percentage of such persons who 
                                        were not residents in the 
                                        population census tract in the 
                                        preceding year.
                                            (cc) Individual, family, 
                                        and household poverty rates.
                                            (dd) Median family income 
                                        of residents of the population 
                                        census tract.
                                            (ee) Demographic 
                                        information on residents of the 
                                        population census tract, 
                                        including age, income, 
                                        education, race, and 
                                        employment.
                                            (ff) The average percentage 
                                        of income of residents of the 
                                        population census tract spent 
                                        on rent annually.
                                            (gg) The number of 
                                        residences in the population 
                                        census tract.
                                            (hh) The rate of home 
                                        ownership in the population 
                                        census tract.
                                            (ii) The average value of 
                                        residential property in the 
                                        population census tract.
                                            (jj) The number of 
                                        affordable housing units in the 
                                        population census tract.
                                            (kk) The number and 
                                        percentage of residents in the 
                                        population census tract that 
                                        were not employed for the 
                                        preceding year.
                                            (ll) The number of new 
                                        business starts in the 
                                        population census tract.
                                            (mm) The distribution of 
                                        employees in the population 
                                        census tract by North American 
                                        Industry Classification Code.
                    (D) Protection of identifiable return 
                information.--In making reports required under this 
                paragraph, the Secretary--
                            (i) shall establish appropriate procedures 
                        to ensure that any amounts reported do not 
                        disclose taxpayer return information that can 
                        be associated with any particular taxpayer or 
                        competitive or proprietary information,
                            (ii) if necessary to protect taxpayer 
                        return information, may combine information 
                        required with respect to individual population 
                        census tracts into larger geographic areas, and
                            (iii) shall treat any violation of this 
                        subparagraph as a violation of section 6103.
                    (E) Definitions.--Any term used in this paragraph 
                which is also used in subchapter Z of chapter 1 of the 
                Internal Revenue Code of 1986 shall have the meaning 
                given such term under such subchapter.
    (d) Extension of Deferral and Investment Period.--
            (1) In general.--Subparagraph (B) of sections 1400Z-2(a)(2) 
        and 1400Z-2(b)(1) of the Internal Revenue Code of 1986 is 
        amended by striking ``December 31, 2026'' and inserting 
        ``December 31, 2028''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to amounts invested after December 22, 2017.
    (e) Modification of Definition of Qualified Opportunity Fund.--
            (1) In general.--Section 1400Z-2(d)(1) of the Internal 
        Revenue Code of 1986 is amended to read as follows:
            ``(1) In general.--The term `qualified opportunity fund' 
        means--
                    ``(A) any qualified feeder fund, or
                    ``(B) any other investment vehicle if--
                            ``(i) such investment vehicle is organized 
                        as a corporation or a partnership for the 
                        purpose of investing in qualified opportunity 
                        zone property (other than another qualified 
                        opportunity fund), and
                            ``(ii) such investment vehicle holds at 
                        least 90 percent of its assets in qualified 
                        opportunity zone property, determined by the 
                        average of the percentage of qualified 
                        opportunity zone property held in the fund as 
                        measured--
                                    ``(I) on the last day of the first 
                                6-month period of the taxable year of 
                                the fund, and
                                    ``(II) on the last day of the 
                                taxable year of the fund.''.
            (2) Qualified feeder fund.--Section 1400Z-2(d) of such Code 
        is amended by adding at the end the following new paragraph:
            ``(4) Qualified feeder fund.--The term `qualified feeder 
        fund' means any investment vehicle that invests in a qualified 
        opportunity fund if--
                    ``(A) such investment vehicle is organized as a 
                domestic partnership for the purpose of investing in 
                one more corporations or partnerships described in 
                paragraph (1)(B),
                    ``(B) all investments made in the investment 
                vehicle are made in cash, and
                    ``(C) not less than 95 percent of the assets of 
                which are equity investments in corporations or 
                partnerships described in paragraph (1)(B) as 
                measured--
                            ``(i) on the last day of the first 6-month 
                        period of the taxable year of the feeder fund, 
                        and
                            ``(ii) on the last day of the tax- able 
                        year of the feeder fund.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (f) State and Community Dynamism Fund.--
            (1) Establishment.--There is established a State and 
        Community Dynamism Fund to support public and private 
        investment, including capital for qualified opportunity zones 
        designated under section 1400Z-1(a) of the Internal Revenue 
        Code of 1986, and existing small business and community 
        economic development programs and incentives, to underserved 
        businesses and communities.
            (2) Allocation.--
                    (A) In general.--Funds appropriated to the State 
                and Community Dynamism Fund shall be allocated to 
                States.
                    (B) Formula.--
                            (i) In general.--The Secretary of the 
                        Treasury shall determine the allocation by 
                        allocating Federal funds among the States based 
                        on the proportion of prime working age adults 
                        not employed in each State bears to the total 
                        of prime working age adults not employed for 
                        all the States.
                            (ii) Minimum allocation.--The Secretary 
                        shall adjust the allocations under clause (i) 
                        for each State to the extent necessary to 
                        ensure that no State receives less than 0.9 
                        percent of the Federal funds.
                    (C) Requirement.--To receive an allocation under 
                subparagraph (B), a State shall certify that the State 
                will use funds to--
                            (i) build capacity in high-poverty, 
                        underbanked, rural, and otherwise underserved 
                        communities;
                            (ii) advance investment in minority-, 
                        women, and veteran-owned businesses;
                            (iii) address workforce development in 
                        strategic sectors of the State's economy; and
                            (iv) align priorities to support affordably 
                        priced housing.
                    (D) Suballocation.--A State may spend funds 
                allocated under this paragraph directly or suballocate 
                the funds to other entities, including units of general 
                local government and nonprofits.
                    (E) Eligible uses.--Funds allocated under this 
                paragraph shall be used for any eligible use in a low-
                income community, as defined in section 45D(e) of the 
                Internal Revenue Code of 1986, including for--
                            (i) operating support and community 
                        capacity building, with priority to given to 
                        operating support and community capacity 
                        building in qualified opportunity zones, 
                        including--
                                    (I) personnel to support 
                                activities, including coordination, 
                                education, and investment;
                                    (II) community-level capacity 
                                building, training, and strategic 
                                planning; and
                                    (III) outreach, technical 
                                assistance, and professional services 
                                to underserved businesses and 
                                underserved opportunity zone fund 
                                managers;
                            (ii) high-impact projects, including--
                                    (I) predevelopment costs associated 
                                with individual Qualified Opportunity 
                                Zone projects; and
                                    (II) risk mitigation for qualified 
                                opportunity zone funds; and
                            (iii) administrative costs, not to exceed 3 
                        percent of the funds allocated.
                    (F) Eligible projects.--Funds used for high-impact 
                project activities, as described in subparagraph 
                (E)(ii), shall only be used for--
                            (i) business with less than 200 employees;
                            (ii) projects that provide community goods 
                        or services, including health care, social 
                        services, healthy food access, education, 
                        broadband, and culture; or
                            (iii) affordable housing with at least 50 
                        percent of the units that are affordable to 
                        families making less than 80 percent of area 
                        median family income.
                    (G) Prioritization.--A State that receives funds 
                under this subsection must prioritize activities that--
                            (i) promote investment in projects that 
                        substantially support minorities, as defined in 
                        section 1204(c) of the Financial Institutions 
                        Reform, Recovery, and Enforcement Act of 1989 
                        (12 U.S.C. 1811 note), or other targeted 
                        populations, as defined in section 103 of the 
                        Riegle Community Development and Regulatory 
                        Improvement Act of 1994 (12 U.S.C. 4702); and
                            (ii) have demonstrated meaningful 
                        engagement with community stakeholders.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated $1,000,000,000 to carry out this subsection.
            (4) GAO audit.--The Comptroller General of the United 
        States shall perform an annual audit of the Fund and submit to 
        the appropriate committees of Congress a report containing the 
        results of the audit.
            (5) Annual report.--Not later than March 31 of each year, 
        each State receiving funds under this subsection shall submit 
        to the Secretary a report on the performance of the State and 
        participating entities in the State that includes--
                    (A) an accounting of the expenditure of funds 
                received by the State, including on administrative or 
                indirect costs;
                    (B) information on the number and characteristics 
                of participants served under this subsection; and
                    (C) a summary describing the training, capacity-
                building, and technical assistance offered by the State 
                and participating entities.
            (6) Definitions.--In this subsection:
                    (A) Prime working age adults not employed.--The 
                term ``prime working age adults not employed'' means, 
                with respect to a State, the share of the adult 
                population aged 25 to 54 that was not employed for the 
                most recent year for which data is available.
                    (B) State.--The term ``State'' includes the 
                District of Columbia, any territory or possession of 
                the United States, and any Indian Tribe.

SEC. 103. QUALIFYING ORDINARY INCOME ADDED TO SPECIAL RULES FOR 
              INVESTMENTS IN OPPORTUNITY ZONES.

    (a) In General.--Section 1400Z-2 of the Internal Revenue Code of 
1986 is amended--
            (1) in the section heading, by striking ``capital gains 
        invested'' and inserting ``investments'',
            (2) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in the heading, by inserting 
                        ``qualifying ordinary income and'' after 
                        ``of'',
                            (ii) by inserting ``qualifying ordinary 
                        income and'' after ``case of'',
                            (iii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) gross income for the taxable year shall not 
                include--
                            ``(i) so much of such gain as does not 
                        exceed the aggregate amount invested by the 
                        taxpayer in a qualified opportunity fund during 
                        the 180-day period beginning on the date of 
                        such sale or exchange, and
                            ``(ii) so much of such qualifying ordinary 
                        income as does not exceed the aggregate amount 
                        invested by the taxpayer in a qualified 
                        opportunity fund during such taxable year,'', 
                        and
                            (iv) in subparagraph (B), by inserting 
                        ``qualifying ordinary income and'' after 
                        ``amount of'',
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking ``or'' 
                        at the end,
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``, or'', and
                            (iii) by adding at the end the following:
                    ``(C) with respect to qualified ordinary income 
                received in a taxable year beginning after December 31, 
                2026.'', and
                    (C) by adding at the end the following:
            ``(3) Qualifying ordinary income defined.--In this 
        subsection, the term `qualifying ordinary income' means 
        ordinary income other than income attributable to capital 
        gains.'',
            (3) in subsection (b)--
                    (A) in the subsection heading, by inserting 
                ``Qualifying Ordinary Income and'' after ``Deferral 
                of'',
                    (B) in paragraph (1), by striking ``Gain'' and 
                inserting ``Qualifying ordinary income and gain'', and
                    (C) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by inserting ``qualifying 
                                ordinary income and'' after ``amount 
                                of'', and
                                    (II) in clause (i), by striking 
                                ``of gain'', and
                            (ii) in subparagraph (B)--
                                    (I) in the clause (ii) heading, by 
                                striking ``gain'' and inserting 
                                ``amount'', and
                                    (II) by striking ``the amount of 
                                gain'' each place it appears and 
                                inserting ``the amount'', and
            (4) in subsection (e)(1), by inserting ``qualifying 
        ordinary income and'' after ``investments of''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts invested after the date of the enactment of this Act.

SEC. 104. RELIEVING STRAIN FROM SHORTAGES OF TRANSFORMERS.

    Section 321(35) of the Energy Policy and Conservation Act (42 
U.S.C. 6291(35)) is amended by adding at the end the following:
                    ``(C) Efficiency level.--The Secretary shall not 
                finalize any rule under which the efficiency level of a 
                liquid-immersed type, low voltage dry type, or medium 
                voltage dry type distribution transformer is greater 
                than trial standard level 2 (as described in table V.1 
                in the proposed rule entitled `Energy Conservation 
                Program: Energy Conservation Standards for Distribution 
                Transformers' (88 Fed. Reg. 1722 (January 11, 2023))).
                    ``(D) Effective date for certain rules.--Any rule 
                finalized by the Secretary under which the efficiency 
                level of a liquid-immersed type, low voltage dry type, 
                or medium voltage dry-type distribution transformer is 
                trial standard level 1 or 2 (as described in table V.1 
                in the proposed rule entitled `Energy Conservation 
                Program: Energy Conservation Standards for Distribution 
                Transformers' (88 Fed. Reg. 1722 (January 11, 2023))) 
                shall not take effect until 10 years after the date on 
                which the rule is finalized.''.

SEC. 105. INCENTIVIZING ZONING REFORM.

    (a) Purpose.--The purpose of this section is to discourage the use 
of discriminatory land use policies and remove barriers to making 
housing more affordable in order to further the original intent of the 
Community Development Block Grant program.
    (b) Land Use Plan.--
            (1) In general.--Section 104 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5304) is amended by adding 
        at the end the following:
    ``(n) Plan To Track Discriminatory Land Use Policies.--
            ``(1) In general.--Prior to receipt in any fiscal year of a 
        grant from the Secretary under subsection (b), (d)(1), or 
        (d)(2)(B) of section 106, each recipient shall have prepared 
        and submitted, not less frequently than once during the 
        preceding 5-year period, in accordance with this subsection and 
        in such standardized form as the Secretary shall, by 
        regulation, prescribe, with respect to each land use policy 
        described in paragraph (2) that is applicable to the 
        jurisdiction served by the recipient, a description of--
                    ``(A) whether the recipient has already adopted the 
                policy in the jurisdiction served by the recipient;
                    ``(B) the plan of the recipient to implement the 
                policy in that jurisdiction; or
                    ``(C) the ways in which adopting the policy will 
                benefit the jurisdiction.
            ``(2) Land use policies.--The policies described in this 
        paragraph are as follows:
                    ``(A) Enacting high-density single-family and 
                multifamily zoning.
                    ``(B) Expanding by-right multifamily zoned areas.
                    ``(C) Allowing duplexes, triplexes, or fourplexes 
                in areas zoned primarily for single-family residential 
                homes.
                    ``(D) Allowing manufactured homes in areas zoned 
                primarily for single-family residential homes.
                    ``(E) Allowing multifamily development in retail, 
                office, and light manufacturing zones.
                    ``(F) Allowing single-room occupancy development 
                wherever multifamily housing is allowed.
                    ``(G) Reducing minimum lot size.
                    ``(H) Ensuring historic preservation requirements 
                and other land use policies or requirements are 
                coordinated to encourage creation of housing in 
                historic buildings and historic districts.
                    ``(I) Increasing the allowable floor area ratio in 
                multifamily housing areas.
                    ``(J) Creating transit-oriented development zones.
                    ``(K) Streamlining or shortening permitting 
                processes and timelines, including through one-stop and 
                parallel-process permitting.
                    ``(L) Eliminating or reducing off-street parking 
                requirements.
                    ``(M) Ensuring impact and utility investment fees 
                accurately reflect required infrastructure needs and 
                related impacts on housing affordability are otherwise 
                mitigated.
                    ``(N) Allowing prefabricated construction.
                    ``(O) Reducing or eliminating minimum unit square 
                footage requirements.
                    ``(P) Allowing the conversion of office units to 
                apartments.
                    ``(Q) Allowing the subdivision of single-family 
                homes into duplexes.
                    ``(R) Allowing accessory dwelling units, including 
                detached accessory dwelling units, on all lots with 
                single-family homes.
                    ``(S) Establishing density bonuses.
                    ``(T) Eliminating or relaxing residential property 
                height limitations.
                    ``(U) Using property tax abatements to enable 
                higher density and mixed-income communities.
                    ``(V) Donating vacant land for affordable housing 
                development.
            ``(3) Effect of submission.--A submission under this 
        subsection shall not be binding with respect to the use or 
        distribution of amounts received under section 106.
            ``(4) Acceptance or nonacceptance of plan.--The acceptance 
        or nonacceptance of any plan submitted under this subsection in 
        which the information required under this subsection is 
        provided is not an endorsement or approval of the plan, 
        policies, or methodologies, or lack thereof.''.
            (2) Effective date.--The requirements under subsection (n) 
        of section 104 of the Housing and Community Development Act of 
        1974 (42 U.S.C. 5304), as added by paragraph (1), shall--
                    (A) take effect on the date that is 1 year after 
                the date of enactment of this Act; and
                    (B) apply to recipients of a grant under subsection 
                (b), (d)(1), or (d)(2)(B) of section 106 of the Housing 
                and Community Development Act of 1974 (42 U.S.C. 5306) 
                before, on, and after such date.

SEC. 106. EXPANDING AND STRENGTHENING THE LOW-INCOME HOUSING TAX 
              CREDIT.

    (a) Increases in State Allocations.--
            (1) In general.--Clause (ii) of section 42(h)(3)(C) of the 
        Internal Revenue Code is amended--
                    (A) in subclause (I), by striking ``$1.75'' and 
                inserting ``the per capita amount'', and
                    (B) in subclause (II), by striking ``$2,000,000'' 
                and inserting ``the minimum amount''.
            (2) Per capita amount; minimum amount.--Section 42(h)(3) of 
        the Internal Revenue Code of 1986 is amended by striking 
        subparagraphs (H) and (I) and inserting the following:
                    ``(H) Per capita amount.--For purposes of 
                subparagraph (C)(ii)(I), the per capita amount shall be 
                determined as follows:
                            ``(i) Calendar year 2023.--For calendar 
                        year, 2023, the per capita amount is $3.90.
                            ``(ii) Calendar year 2024.--For calendar 
                        year 2024, the per capita amount is the product 
                        of--
                                    ``(I) 1.25, and
                                    ``(II) the dollar amount under 
                                clause (i) increased by an amount equal 
                                to--
                                            ``(aa) such dollar amount, 
                                        multiplied by
                                            ``(bb) the cost-of-living 
                                        adjustment determined under 
                                        section 1(f)(3) for such 
                                        calendar year, determined by 
                                        substituting `calendar year 
                                        2022' for `calendar year 2016' 
                                        in subparagraph (A)(ii) 
                                        thereof.
                                If the amount determined after 
                                application of the preceding sentence 
                                is not a multiple of $5,000, such 
                                amount shall be rounded to the next 
                                lowest multiple of $5,000.
                            ``(iii) Calendar years after 2024.--In the 
                        case of any calendar year after 2024, the per 
                        capita amount is the dollar amount determined 
                        under clause (ii) increased by an amount equal 
                        to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year, 
                                determined by substituting `calendar 
                                year 2023' for `calendar year 2016' in 
                                subparagraph (A)(ii) thereof.
                        Any amount increased under the preceding 
                        sentence which is not a multiple of 5 cents 
                        shall be rounded to the next lowest multiple of 
                        5 cents.
                    ``(I) Minimum amount.--For purposes of subparagraph 
                (C)(ii)(II), the minimum amount shall be determined as 
                follows:
                            ``(i) Calendar year 2023.--For calendar 
                        year, 2023, the minimum amount is $4,495,000.
                            ``(ii) Calendar year 2024.--For calendar 
                        year 2024, the minimum amount is the product 
                        of--
                                    ``(I) 1.25, and
                                    ``(II) the dollar amount under 
                                clause (i) increased by an amount equal 
                                to--
                                            ``(aa) such dollar amount, 
                                        multiplied by
                                            ``(bb) the cost-of-living 
                                        adjustment determined under 
                                        section 1(f)(3) for such 
                                        calendar year, determined by 
                                        substituting `calendar year 
                                        2022' for `calendar year 2016' 
                                        in subparagraph (A)(ii) 
                                        thereof.
                                If the amount determined after 
                                application of the preceding sentence 
                                is not a multiple of 5 cents, such 
                                amount shall be rounded to the next 
                                lowest multiple of 5 cents.
                            ``(iii) Calendar years after 2024.--In the 
                        case of any calendar year after 2024, the 
                        minimum amount is the dollar amount determined 
                        under clause (ii) increased by an amount equal 
                        to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year, 
                                determined by substituting `calendar 
                                year 2023' for `calendar year 2016' in 
                                subparagraph (A)(ii) thereof.
                        Any amount increased under the preceding 
                        sentence which is not a multiple of $5,000 
                        shall be rounded to the next lowest multiple of 
                        $5,000.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to calendar years beginning after December 31, 
        2022.
    (b) Reforms Relating to Tenant Eligibility.--
            (1) Average income test applicability to exempt facility 
        bonds.--
                    (A) In general.--Paragraph (1) of section 142(d) of 
                the Internal Revenue Code of 1986 is amended--
                            (i) by striking ``(A) or (B)'' and 
                        inserting ``(A), (B), or (C)'', and
                            (ii) by inserting after subparagraph (B) 
                        the following new subparagraph:
                    ``(C) Average income test.--A project meets the 
                requirements of this subparagraph if it meets the 
                minimum requirements of section 42(g)(1)(C).''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to elections made under section 
                142(d)(1) of the Internal Revenue Code of 1986 after 
                March 23, 2018.
            (2) Codification of rules relating to increased tenant 
        income.--
                    (A) In general.--Clause (i) of section 42(g)(2)(D) 
                of the Internal Revenue Code of 1986 is amended by 
                striking ``clauses (ii), (iii), and (iv)'' and all that 
                follows and inserting ``clauses (ii), (iii), (iv), and 
                (vi), notwithstanding an increase in the income of the 
                occupants above the income limitation applicable under 
                paragraph (1)--
                                    ``(I) a low-income unit shall 
                                continue to be treated as a low-income 
                                unit if the income of such occupants 
                                initially was 60 percent or less of 
                                area median gross income and such unit 
                                continues to be rent-restricted, and
                                    ``(II) a unit to which, at the time 
                                of initial occupancy by such occupants, 
                                any Federal, State, or local government 
                                income restriction applied, and which 
                                subsequently becomes part of a building 
                                with respect to which rehabilitation 
                                expenditures are taken into account 
                                under subsection (e), shall be treated 
                                as a low-income unit if the income of 
                                such occupants initially was 60 percent 
                                or less of area median gross income and 
                                does not exceed 120 percent of area 
                                median gross income as of the date of 
                                acquisition of the property by the 
                                taxpayer.''.
                    (B) Exception.--Subparagraph (D) of section 
                42(g)(2) of the Internal Revenue Code of 1986, as 
                amended by this section, is further amended by adding 
                at the end the following new clause:
                            ``(vi) Exception to rule relating to 
                        increased tenant income.--In the case of an 
                        occupant of a low-income unit who initially 
                        qualified to occupy such unit by reason of 
                        paragraph (1)(C) with an income in excess of 60 
                        percent of area median gross income but not in 
                        excess of 80 percent of area median gross 
                        income, clause (i) shall be applied for 
                        substituting `80 percent' for `60 percent' each 
                        place it appears.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to taxable years beginning after 
                December 31, 2022.
            (3) Modification of student occupancy rules.--
                    (A) In general.--Subparagraph (D) of section 
                42(i)(3) of the Internal Revenue Code of 1986 is 
                amended to read as follows:
                    ``(D) Rules relating to students.--
                            ``(i) In general.--A unit occupied solely 
                        by individuals who--
                                    ``(I) have not attained age 24, and
                                    ``(II) are enrolled in a full-time 
                                course of study at an institution of 
                                higher education (as defined in section 
                                3304(f)),
                        shall not be treated as a low-income unit.
                            ``(ii) Exception for certain federal 
                        programs.--In the case of a federally-assisted 
                        building (as defined in subsection 
                        (d)(6)(C)(i)), clause (i) shall not apply to a 
                        unit all of the occupants of which meet all 
                        applicable requirements under the housing 
                        program described in such subsection through 
                        which the building is assisted, financed, or 
                        operated.
                            ``(iii) Other exceptions.--An individual 
                        shall not be treated as described in clause (i) 
                        if the individual meets the income limitation 
                        applicable under subsection (g)(1) to the 
                        project of which the building is a part and--
                                    ``(I) is married,
                                    ``(II) is a person with 
                                disabilities (as defined in section 
                                3(b)(3)(E) of the United States Housing 
                                Act of 1937),
                                    ``(III) is a veteran (as defined in 
                                section 101(2) of title 38, United 
                                States Code),
                                    ``(IV) has 1 or more qualifying 
                                children (as defined in section 
                                152(c)),
                                    ``(V) is or has been a victim or 
                                threatened victim of domestic violence, 
                                dating violence, sexual assault, or 
                                stalking (as defined in section 40002 
                                of the Violence Against Women Act of 
                                1994),
                                    ``(VI) is or has been a victim of 
                                any form of human trafficking, or
                                    ``(VII) is, or was prior to 
                                attaining the age of majority--
                                            ``(aa) an emancipated minor 
                                        or in legal guardianship as 
                                        determined by a court of 
                                        competent jurisdiction in the 
                                        individual's State of legal 
                                        residence,
                                            ``(bb) under the care and 
                                        placement responsibility of the 
                                        State agency responsible for 
                                        administering a plan under part 
                                        B or part E of title IV of the 
                                        Social Security Act, or
                                            ``(cc) an unaccompanied 
                                        youth (within the meaning of 
                                        section 725(6) of the McKinney-
                                        Vento Homeless Assistance Act 
                                        (42 U.S.C. 11434a(6))) or a 
                                        homeless child or youth (within 
                                        the meaning of section 725(2) 
                                        of such Act (42 U.S.C. 
                                        11434a(2))).
                                For purposes of subclause (VI), an 
                                individual is or has been a victim of 
                                human trafficking if such individual 
                                was subjected to an act or practice 
                                described in paragraph (11) or (12) of 
                                section 103 of the Trafficking Victims 
                                Protection Act of 2000.''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to taxable years beginning after 
                December 31, 2023.
            (4) Tenant voucher payments taken into account as rent for 
        certain purposes.--
                    (A) In general.--Subparagraph (B) of section 
                42(g)(2) of the Internal Revenue Code of 1986 is 
                amended by adding at the end the following new 
                sentence: ``In the case of a project with respect to 
                which the taxpayer elects the requirements of 
                subparagraph (C) of paragraph (1), or the portion of a 
                project to which subsection (d)(5)(C) applies, clause 
                (i) shall not apply with respect to any tenant-based 
                assistance (as defined in section 8(f)(7) of the United 
                States Housing Act of 1937 (42 U.S.C. 1437f(f)(7))).''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to rent paid in taxable years 
                beginning after December 31, 2023.
            (5) Requirement that low-income housing credit-supported 
        housing protect victims of domestic abuse.--
                    (A) In general.--Subparagraph (B) of section 
                42(h)(6) of the Internal Revenue Code of 1986 is 
                amended by striking ``and'' at the end of clause (v), 
                by striking the period at the end of clause (vi) and 
                inserting ``, and'', and by adding at the end the 
                following new clause:
                            ``(vii) which--
                                    ``(I) prohibits the refusal to 
                                lease to, or termination of a lease by, 
                                a person solely on the basis of 
                                criminal activity directly relating to 
                                domestic violence, dating violence, 
                                sexual assault, or stalking that is 
                                engaged in by a member of the household 
                                of the tenant or any guest or other 
                                person under the control of the tenant, 
                                if the tenant or an affiliated 
                                individual of the tenant is the victim 
                                or threatened victim of such domestic 
                                violence, dating violence, sexual 
                                assault, or stalking, and
                                    ``(II) allows prospective, present, 
                                or former occupants of the building the 
                                right to enforce in any State court the 
                                prohibition of subclause (I).''.
                    (B) Bifurcation.--
                            (i) In general.--Subparagraph (B) of 
                        section 42(h)(6) of the Internal Revenue Code 
                        of 1986, as amended by subsection (a), is 
                        further amended by adding at the end the 
                        following new flush sentence:
                ``For purposes of clause (vii)(I), rules similar to the 
                rules of section 41411(b)(3)(B) of the Violence Against 
                Women Act of 1994 shall apply with respect to the owner 
                or manager of a building.''.
                            (ii) Effect of bifurcation.--Paragraph (2) 
                        of section 42(g) of such Code is amended by 
                        adding at the end the following new 
                        subparagraph:
                    ``(F) Treatment of bifurcation in cases of domestic 
                violence.--In any case in which--
                            ``(i) an occupant is evicted or removed 
                        from a low-income unit because such occupant 
                        has engaged in criminal activity directly 
                        relating to domestic violence, dating violence, 
                        sexual assault, or stalking against an 
                        affiliated individual or other individual on 
                        the basis of criminal activity directly 
                        relating to domestic violence, dating violence, 
                        sexual assault, or stalking, and
                            ``(ii) the lease on such unit is bifurcated 
                        as provided in the last sentence of subsection 
                        (h)(6)(B),
                then the remaining occupants of such low-income unit 
                shall not be treated as a new tenant for purposes of 
                this section.''.
                    (C) Clarification of general public use 
                requirement.--Paragraph (9) of section 42(g) of the 
                Internal Revenue Code of 1986 is amended by striking 
                ``or'' at the end of subparagraph (B), by striking the 
                period at the end of subparagraph (C) and inserting ``, 
                or'', and by adding at the end the following new 
                subparagraph:
                    ``(D) who are victims or threatened victims of 
                criminal activity directly relating to domestic 
                violence, dating violence, sexual assault, or 
                stalking.''.
                    (D) Effective dates.--
                            (i) In general.--Except as provided in 
                        clause (ii), the amendments made by this 
                        paragraph shall apply to agreements executed or 
                        modified on or after the date that is 30 days 
                        after the date of the enactment of this Act.
                            (ii) Public use requirement.--The 
                        amendments made by subparagraph (C) shall apply 
                        to buildings placed in service before, on, or 
                        after the date of the enactment of this Act.
            (6) Clarification of general public use requirement 
        relating to veterans, etc.--
                    (A) In general.--Paragraph (9) of section 42(g) of 
                the Internal Revenue Code of 1986, as amended by 
                paragraph (5) of this section, is further amended by 
                adding at the end the following flush language:
        ``Any veteran of the Armed Forces shall be treated as a member 
        of a specified group under a Federal program for purposes of 
        subparagraph (B).''.
                    (B) Qualified residential rental projects.--
                Paragraph (2) of section 142(d) of the Internal Revenue 
                Code of 1986 is amended by adding at the end the 
                following new subparagraph:
                    ``(F) Clarification of general public use 
                requirement.--A unit shall not fail to meet the general 
                public use requirement solely because of occupancy 
                restrictions or preferences, if such restrictions or 
                preferences meet the general public use requirement of 
                section 42.''.
                    (C) Effective dates.--
                            (i) In general.--The amendment made by 
                        subparagraph (A) shall apply to buildings 
                        placed in service before, on, or after the date 
                        of the enactment of this Act.
                            (ii) Qualified residential rental 
                        projects.--The amendment made by subparagraph 
                        (B) shall apply to bonds issued before, on, or 
                        after the date of the enactment of this Act.
    (c) Rules Relating to Credit Eligibility and Determination.--
            (1) Reconstruction or replacement period after casualty 
        loss.--
                    (A) No recapture following casualty loss.--
                Subparagraph (E) of section 42(j)(4) of the Internal 
                Revenue Code of 1986 is amended to read as follows:
                    ``(E) No recapture by reason of casualty loss.--
                            ``(i) In general.--The increase in tax 
                        under this subsection shall not apply to a 
                        reduction in qualified basis by reason of a 
                        casualty loss to the extent such loss is 
                        restored by reconstruction or replacement 
                        within a reasonable period established by the 
                        applicable housing credit agency, not to exceed 
                        25 months from the date on which the qualified 
                        casualty loss arises.
                            ``(ii) Qualified casualty losses.--In the 
                        case of a qualified casualty loss, the period 
                        described in clause (i) may be extended, but 
                        not in excess of 12 months, if the applicable 
                        housing credit agency determines the qualified 
                        casualty arose by reason of an event which was 
                        not discrete to the building and which made a 
                        reconstruction or replacement within 25 months 
                        impractical. In the event the applicable 
                        housing credit agency determines a period in 
                        excess of 25 months is necessary for such 
                        reconstruction or replacement, the compliance 
                        period shall be increased by any such 
                        additional time.
                            ``(iii) Application.--The determination 
                        under paragraph (1) shall not be made with 
                        respect to a property the basis of which is 
                        affected by a qualified casualty loss until the 
                        period described in clause (i) (as modified by 
                        clause (ii), if applicable) with respect to 
                        such property has expired.
                            ``(iv) Qualified casualty loss.--For 
                        purposes of this subparagraph, the term 
                        `qualified casualty loss' means a casualty loss 
                        that is the result of a federally declared 
                        disaster (as defined in section 165(i)(5)).''.
                    (B) Qualified basis following casualty loss.--
                Paragraph (1) of section 42(c) of the Internal Revenue 
                Code of 1986 is amended by adding at the end the 
                following new subparagraph:
                    ``(F) Qualified basis following casualty loss.--If 
                a casualty causes the qualified basis of a building in 
                any year to be less than the qualified basis in the 
                immediately preceding year then, in the year of such 
                casualty and each succeeding year until such building 
                or the units affected by the casualty are reconstructed 
                or replaced (but only through the last year of the 
                period permitted for reconstruction or replacement 
                under subsection (j)(4)(E))--
                            ``(i) the qualified basis of such building 
                        shall be equal to the qualified basis of such 
                        building as of the last day of the year 
                        preceding the year in which such casualty 
                        occurred,
                            ``(ii) if such building is not 
                        reconstructed or replaced by the expiration of 
                        the applicable period for such reconstruction 
                        or replacement under subsection (j)(4), then 
                        the recapture amount provided for in subsection 
                        (j)(1) shall include the amount of any credit 
                        claimed under this section by reason of the 
                        application of clause (i), and
                            ``(iii) a building which was a qualified 
                        low-income building as of the last day of the 
                        year preceding the year in which such casualty 
                        occurred shall not cease to be a qualified low-
                        income building solely because of such 
                        casualty.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to casualties occurring after the 
                date which is 25 months before the date of the 
                enactment of this Act.
            (2) Modification of previous ownership rules; limitation on 
        acquisition basis.--
                    (A) In general.--Clause (ii) of section 42(d)(2)(B) 
                of the Internal Revenue Code of 1986 is amended by 
                inserting ``, or the taxpayer elects the application of 
                subparagraph (C)(ii)'' after ``service''.
                    (B) Limitation on acquisition basis.--Subparagraph 
                (C) of section 42(d)(2) of the Internal Revenue Code of 
                1986 is amended--
                            (i) by striking ``For purposes of 
                        subparagraph (A), the adjusted basis'' and 
                        inserting ``For purposes of subparagraph (A)--
                            ``(i) In general.--The adjusted basis'', 
                        and
                            (ii) by adding at the end the following new 
                        clauses:
                            ``(ii) Buildings in service within previous 
                        10 years.--If the period between the date of 
                        acquisition of the building by the taxpayer and 
                        the date the building was last placed in 
                        service is less than 10 years, the taxpayer's 
                        basis attributable to the acquisition of the 
                        building which is taken into account in 
                        determining the adjusted basis shall not exceed 
                        the sum of--
                                    ``(I) the lowest amount paid for 
                                acquisition of the building by any 
                                person during the 10 years preceding 
                                the date of the acquisition of the 
                                building by the taxpayer, adjusted as 
                                provided in clause (iii), and
                                    ``(II) the value of any capital 
                                improvements made by the person who 
                                sells the building to the taxpayer 
                                which are reflected in such seller's 
                                basis.
                            ``(iii) Adjustment.--With respect to a 
                        basis determination made in any taxable year, 
                        the amount described in clause (ii)(I) shall be 
                        increased by an amount equal to--
                                    ``(I) such amount, multiplied by
                                    ``(II) a cost-of-living adjustment, 
                                determined in the same manner as under 
                                section 1(f)(3) for the calendar year 
                                in which the taxable year begins by 
                                taking into account the acquisition 
                                year in lieu of calendar year 1992.
                        For purposes of the preceding sentence, the 
                        acquisition year is the calendar year in which 
                        the lowest amount referenced in clause (ii)(I) 
                        was paid for the acquisition of the 
                        building.''.
                    (C) Conforming amendments.--Clause (i) of section 
                42(d)(2)(D) of the Internal Revenue Code of 1986 is 
                amended--
                            (i) by striking ``for subparagraph (b)'' in 
                        the heading, and
                            (ii) by striking ``subparagraph (B)(ii)'' 
                        in the matter preceding subclause (I) and 
                        inserting ``subparagraph (B)(ii) or (C)(ii)''.
                    (D) Modification of placed in service rule.--Clause 
                (iii) of section 42(d)(2)(B) of the Internal Revenue 
                Code of 1986 is amended to read as follows:
                            ``(iii) the building was not owned by the 
                        taxpayer or by any person related (as of the 
                        date of acquisition by the taxpayer) to the 
                        taxpayer at any time during the 5-year period 
                        ending on the date of acquisition by the 
                        taxpayer, and''.
                    (E) Effective date.--The amendments made by this 
                paragraph shall apply to buildings placed in service 
                after December 31, 2022.
            (3) Certain relocation costs taken into account as 
        rehabilitation expenditures.--
                    (A) In general.--Paragraph (2) of section 42(e) of 
                the Internal Revenue Code of 1986 is amended by adding 
                at the end the following new subparagraph:
                    ``(C) Certain relocation costs.--In the case of a 
                rehabilitation of a building to which section 280B does 
                not apply, costs relating to the relocation of 
                occupants, including--
                            ``(i) amounts paid to occupants,
                            ``(ii) amounts paid to third parties for 
                        services relating to such relocation, and
                            ``(iii) amounts paid for temporary housing 
                        for occupants,
                shall be treated as chargeable to capital account and 
                taken into account as rehabilitation expenditures.''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to expenditures paid or incurred 
                after December 31, 2022.
                    (C) No inference.--Nothing in the amendment made by 
                this paragraph shall be construed to create any 
                inference with respect to the treatment of relocation 
                costs paid or incurred before December 31, 2022.
            (4) Repeal of qualified census tract population cap.--
                    (A) In general.--Clause (ii) of section 42(d)(5)(B) 
                of the Internal Revenue Code of 1986 is amended--
                            (i) by striking subclauses (II) and (III), 
                        and
                            (ii) by striking ``Qualified census 
                        tract.--
                                    ``(I) In general.--The term'',
                        and inserting ``Qualified census tract.--The 
                        term''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to designations of qualified 
                census tracts under section 42(d)(5)(B)(ii) of the 
                Internal Revenue Code of 1986 after December 31, 2023.
            (5) Determination of community revitalization plan to be 
        made by housing credit agency.--
                    (A) In general.--Subclause (III) of section 
                42(m)(1)(B)(ii) of the Internal Revenue Code of 1986 is 
                amended by inserting ``, as determined by the housing 
                credit agency according to criteria established by such 
                agency,'' after ``(d)(5)(B)(ii)) and''.
                    (B) Criteria.--Paragraph (1) of section 42(m) of 
                the Internal Revenue Code of 1986 is amended by adding 
                at the end the following new subparagraph:
                    ``(E) Criteria for determination relating to 
                concerted community revitalization plan.--For purposes 
                of subparagraph (B)(ii)(III), the criteria which shall 
                be established by a housing credit agency for 
                determining whether the development of a project 
                contributes to a concerted community development plan 
                shall take into account any factors the agency deems 
                appropriate, including the extent to which the proposed 
                plan--
                            ``(i) is geographically specific,
                            ``(ii) outlines a clear plan for 
                        implementation and goals for outcomes,
                            ``(iii) includes a strategy for applying 
                        for or obtaining commitments of public or 
                        private investment (or both) in nonhousing 
                        infrastructure, amenities, or services, and
                            ``(iv) demonstrates the need for community 
                        revitalization.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to allocations of housing credit 
                dollar amounts made under qualified allocation plans 
                (as defined in section 42(m)(1)(B) of the Internal 
                Revenue Code of 1986) adopted after December 31, 2023.
            (6) Prohibition of local approval and contribution 
        requirements.--
                    (A) In general.--Paragraph (1) of section 42(m) of 
                the Internal Revenue Code of 1986, as amended by 
                paragraph (5) of this subsection, is further amended--
                            (i) by striking clause (ii) of subparagraph 
                        (A) and by redesignating clauses (iii) and (iv) 
                        thereof as clauses (ii) and (iii), and
                            (ii) by adding at the end the following new 
                        subparagraph:
                    ``(F) Local approval or contribution not taken into 
                account.--The selection criteria under a qualified 
                allocation plan shall not include consideration of--
                            ``(i) any support or opposition with 
                        respect to the project from local or elected 
                        officials, or
                            ``(ii) any local government contribution to 
                        the project, except to the extent such 
                        contribution is taken into account as part of a 
                        broader consideration of the project's ability 
                        to leverage outside funding sources, and is not 
                        prioritized over any other source of outside 
                        funding.''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to allocations of housing credit 
                dollar amounts made under qualified allocation plans 
                (as defined in section 42(m)(1)(B) of the Internal 
                Revenue Code of 1986) adopted after December 31, 2023.
            (7) Increase in credit for certain projects designated to 
        serve extremely low-income households.--
                    (A) In general.--Paragraph (5) of section 42(d) of 
                the Internal Revenue Code of 1986 is amended by adding 
                at the end the following new subparagraph:
                    ``(C) Increase in credit for projects designated to 
                serve extremely low-income households.--In the case of 
                any building--
                            ``(i) 20 percent or more of the residential 
                        units (determined as if the imputed income 
                        limitation applicable to such units were 30 
                        percent of area median gross income) in which 
                        are designated by the taxpayer for occupancy by 
                        households the aggregate household income of 
                        which does not exceed the greater of--
                                    ``(I) 30 percent of area median 
                                gross income, or
                                    ``(II) 100 percent of an amount 
                                equal to the Federal poverty line 
                                (within the meaning of section 
                                36B(d)(3)), and
                            ``(ii) which is designated by the housing 
                        credit agency as requiring the increase in 
                        credit under this subparagraph in order for 
                        such building to be financially feasible as 
                        part of a qualified low-income housing project,
                subparagraph (B) shall not apply to the portion of such 
                building which is comprised of such units (determined 
                in a manner similar to the unit fraction under 
                subsection (c)(1)(C)), and the eligible basis of such 
                portion of the building shall be 150 percent of such 
                basis determined without regard to this 
                subparagraph.''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to buildings which receive 
                allocations of housing credit dollar amount after the 
                date of enactment of this Act, or in the case of 
                buildings that are described in section 42(h)(4)(B) of 
                the Internal Revenue Code of 1986, for obligations that 
                are part of an issue the issue date of which is after 
                December 31, 2023.
            (8) Increase in credit for bond-financed projects 
        designated by state agency.--
                    (A) In general.--Clause (v) of section 42(d)(5)(B) 
                of the Internal Revenue Code of 1986 is amended by 
                striking the second sentence.
                    (B) Technical amendment.--Clause (v) of section 
                42(d)(5)(B) of the Internal Revenue Code of 1986, as 
                amended by subparagraph (A), is further amended--
                            (i) by striking ``State'' in the heading, 
                        and
                            (ii) by striking ``State housing credit 
                        agency'' and inserting ``housing credit 
                        agency''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to buildings that are described 
                in section 42(h)(4)(B) of the Internal Revenue Code of 
                1986, taking into account only obligations that are 
                part of an issue the issue date of which is after 
                December 31, 2023.
            (9) Elimination of basis reduction for low-income housing 
        properties energy efficient commercial building deduction.--
                    (A) Energy efficient commercial buildings 
                deduction.--Subsection (e) of section 179D of the 
                Internal Revenue Code of 1986 is amended--
                            (i) by striking ``Reduction.--For 
                        purposes'' and inserting ``Reduction.--
            ``(1) In general.--For purposes'', and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(2) Exception for affordable housing properties.--
        Paragraph (1) shall not apply for purposes of determining 
        eligible basis under section 42.''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to buildings which receive 
                allocations of housing credit dollar amount after the 
                date of the enactment of this Act and to buildings that 
                are described in section 42(h)(4)(B) of the Internal 
                Revenue Code of 1986 taking into account only 
                obligations that are part of an issue the issue date of 
                which is after December 31, 2023.
            (10) Restriction of planned foreclosures.--
                    (A) In general.--Subclause (I) of section 
                42(h)(6)(E)(i) of the Internal Revenue Code of 1986 is 
                amended to read as follows:
                                    ``(I) on the 61st day after the 
                                taxpayer (or a successor in interest) 
                                provides notice to the Secretary and 
                                the housing credit agency that the 
                                building has been acquired by 
                                foreclosure (or instrument in lieu of 
                                foreclosure) and that the taxpayer 
                                intends the termination of such period, 
                                unless, before such date, the Secretary 
                                or the housing credit agency determines 
                                that such acquisition is part of an 
                                arrangement with the taxpayer a purpose 
                                of which is to terminate such period, 
                                or''.
                    (B) Conforming amendment.--The second sentence of 
                clause (i) of section 42(h)(6)(E) of the Internal 
                Revenue Code of 1986 is amended by striking ``Subclause 
                (II)'' and inserting ``Subclauses (I) and (II)''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to acquisitions by foreclosure 
                (or instrument in lieu of foreclosure) after December 
                31, 2022.
            (11) Increase of population cap for difficult development 
        areas.--
                    (A) In general.--Subclause (II) of section 
                42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 
                is amended by striking ``20 percent'' and inserting 
                ``30 percent''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to designations made under 
                section 42(d)(5)(B)(iii) of the Internal Revenue Code 
                of 1986 after December 31, 2023.
            (12) Increased cost oversight and accountability.--
                    (A) In general.--Subparagraph (C) of section 
                42(m)(1) of the Internal Revenue Code of 1986 is 
                amended by striking ``and'' at the end of clause (ix), 
                by striking the period at the end of clause (x) and 
                inserting ``, and'', and by adding at the end the 
                following new clause:
                            ``(xi) the reasonableness of the 
                        development costs of the project.''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to allocations of credits under 
                section 42 of the Internal Revenue Code of 1986 made 
                after December 31, 2023.
            (13) Tax-exempt bond financing requirement.--
                    (A) In general.--Subparagraph (B) of section 
                42(h)(4) of the Internal Revenue Code of 1986 is 
                amended by adding at the end the following new 
                sentence: ``In the case of buildings financed by an 
                obligation first taken into account under section 146 
                in calendar years beginning after the date of the 
                enactment of this sentence, the preceding sentence 
                shall be applied by substituting `25 percent' for `50 
                percent'.''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to any building some portion of 
                which, or of the land on which the building is located, 
                is financed by an obligation which is described in 
                section 42(h)(4)(A) of the Internal Revenue Code of 
                1986 and which is part of an issue the issue date of 
                which is after December 31, 2023.
    (d) Reforms Relating to Native American Assistance.--
            (1) Selection criteria under qualified allocation plans.--
                    (A) In general.--Subparagraph (C) of section 
                42(m)(1) of the Internal Revenue Code of 1986, as 
                amended by subsection (c)(2), is further amended by 
                striking ``and'' at the end of clause (x), by striking 
                the period at the end of clause (xi) and inserting ``, 
                and'', and by adding at the end the following new 
                clause:
                            ``(xii) the affordable housing needs of 
                        individuals in the State who are--
                                    ``(I) enrolled members of a tribe 
                                with respect to an Indian tribal 
                                government (including any agencies or 
                                instrumentalities of an Indian tribal 
                                government and any Alaska Native 
                                regional or village corporation, as 
                                defined in, or established pursuant to, 
                                the Alaska Native Claims Settlement Act 
                                (43 U.S.C. 1601 et seq.), or
                                    ``(II) described in section 801(9) 
                                of the Native American Housing 
                                Assistance and Self-Determination Act 
                                of 1996 (25 U.S.C. 4221(9)).''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to allocations of credits under 
                section 42 of the Internal Revenue Code of 1986 made 
                after December 31, 2023.
            (2) Inclusion of indian areas as difficult development 
        areas for purposes of certain buildings.--
                    (A) In general.--Subclause (I) of section 
                42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 
                is amended by inserting before the period the 
                following: ``, and any Indian area''.
                    (B) Indian area.--Clause (iii) of section 
                42(d)(5)(B) of the Internal Revenue Code of 1986 is 
                amended by redesignating subclause (II) as subclause 
                (III) and by inserting after subclause (I) the 
                following new subclause:
                                    ``(II) Indian area.--For purposes 
                                of subclause (I), the term `Indian 
                                area' means any Indian area (as defined 
                                in section 4(11) of the Native American 
                                Housing Assistance and Self 
                                Determination Act of 1996 (25 U.S.C. 
                                4103(11))) and any housing area (as 
                                defined in section 801(5) of such Act 
                                (25 U.S.C. 4221(5))).''.
                    (C) Eligible buildings.--Clause (iii) of section 
                42(d)(5)(B) of the Internal Revenue Code of 1986, as 
                amended by subparagraph (B), is further amended by 
                adding at the end the following new subclause:
                                    ``(IV) Special rule for buildings 
                                in indian areas.--In the case of an 
                                area which is a difficult development 
                                area solely because it is an Indian 
                                area, a building shall not be treated 
                                as located in such area unless such 
                                building is assisted or financed under 
                                the Native American Housing Assistance 
                                and Self Determination Act of 1996 (25 
                                U.S.C. 4101 et seq.) or the project 
                                sponsor is an Indian tribe (as defined 
                                in section 45A(c)(6)), a tribally 
                                designated housing entity (as defined 
                                in section 4(22) of such Act (25 U.S.C. 
                                4103(22))), or wholly owned or 
                                controlled by such an Indian tribe or 
                                tribally designated housing entity.''.
                    (D) Effective date.--The amendments made by this 
                paragraph shall apply to buildings placed in service 
                after December 31, 2023.
    (e) Reforms Relating to Rural Assistance.--
            (1) Inclusion of rural areas as difficult development 
        areas.--
                    (A) In general.--Subclause (I) of section 
                42(d)(5)(B)(iii) of the Internal Revenue Code of 1986, 
                as amended by subsection (d)(2), is further amended by 
                inserting ``, any rural area'' after ``median gross 
                income''.
                    (B) Rural area.--Clause (iii) of section 
                42(d)(5)(B) of the Internal Revenue Code of 1986, as 
                amended by subsection (d)(2), is further amended by 
                redesignating subclause (III) as subclause (IV) and by 
                inserting after subclause (II) the following new 
                subclause:
                                    ``(III) Rural area.--For purposes 
                                of subclause (I), the term `rural area' 
                                means any non-metropolitan area, or any 
                                rural area as defined by section 520 of 
                                the Housing Act of 1949, which is 
                                identified by the qualified allocation 
                                plan under subsection (m)(1)(B).''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to buildings placed in service 
                after December 31, 2023.
            (2) Uniform income eligibility for rural projects.--
                    (A) In general.--Paragraph (8) of section 42(i) of 
                the Internal Revenue Code of 1986 is amended by 
                striking the second sentence.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to taxable years beginning after 
                December 31, 2022.
    (f) Treatment of Exempt Facility Bonds Refunding Issues.--
            (1) In general.--Subparagraph (A) of section 146(i)(6) of 
        the Internal Revenue Code of 1986 is amended to read as 
        follows:
                    ``(A) In general.--During the 12-month period 
                beginning on the date of a repayment of a loan financed 
                by an issue 95 percent or more of the net proceeds of 
                which are used to provide projects described in section 
                142(d), if such repayment is used to provide a new loan 
                for any project described in section 142(a)(7) or for 
                any purpose described in subsection (a)(2)(A) or (b) of 
                section 143, any bond which is issued to refinance such 
                issue shall be treated as a refunding issue. Any issue 
                treated as a refunding issue by reason of the preceding 
                sentence shall be so treated only to the extent the 
                principal amount of such refunding issue does not 
                exceed the principal amount of the bonds refunded.''.
            (2) Removal of one-refunding limit.--Subparagraph (B) of 
        section 146(i)(6) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) by striking ``4 years'' in clause (i) and 
                inserting ``10 years'',
                    (B) by striking ``was issued'' in clause (ii) and 
                inserting ``is issued'',
                    (C) by redesignating clauses (i) (as so amended), 
                (ii) (as so amended), and (iii) as subclauses (I), 
                (II), and (III), respectively, and by moving such 
                subclauses 2 ems to the right,
                    (D) by striking ``Limitations.--Subparagraph (A) 
                shall apply to only one refunding of the original issue 
                and'' and inserting ``Limitations.--
                            ``(i) In general.--Subparagraph (A) shall 
                        apply to a bond'', and
                    (E) by adding at the end the following new clause:
                            ``(ii) Source of loan repayment.--
                        Subparagraph (A) shall not apply to any 
                        repayment of a loan which is--
                                    ``(I) made by a repayment of 
                                another loan, or
                                    ``(II) financed by an issue treated 
                                as a refunding issue under subparagraph 
                                (A).''.
            (3) Conforming amendment.--The heading of paragraph (6) of 
        section 146(i) of the Internal Revenue Code of 1986 is amended 
        by striking ``residential rental project bonds as refunding 
        bonds irrespective of obligor'' and inserting ``bonds as 
        refunding bonds''.
            (4) Effective dates.--
                    (A) In general.--The amendments made by paragraphs 
                (1) and (3) shall apply to refunding issues described 
                in section 146(i)(6)(A) of the Internal Revenue Code of 
                1986 issued on or after the date of the enactment of 
                this Act.
                    (B) Removal of one-refunding limit.--The amendments 
                made by paragraph (2) shall apply to repayments of 
                loans received after July 30, 2008.
    (g) Affordable Housing Tax Credit.--
            (1) In general.--The heading of section 42 of the Internal 
        Revenue Code of 1986 is amended by striking ``low-income'' and 
        inserting ``affordable''.
            (2) Conforming amendments.--
                    (A) Subsection (a) of section 42 of the Internal 
                Revenue Code of 1986 is amended by striking ``low-
                income'' and inserting ``affordable''.
                    (B) Paragraph (5) of section 38(b) of such Code is 
                amended by striking ``low-income'' and inserting 
                ``affordable''.
                    (C) The heading of subparagraph (D) of section 
                469(i)(3) of such Code is amended by striking ``low-
                income'' and inserting ``affordable''.
                    (D) The heading of subparagraph (B) of section 
                469(i)(6) of such Code is amended by striking ``low-
                income'' and inserting ``affordable''.
                    (E) Paragraph (7) of section 772(a) of such Code is 
                amended by striking ``low-income'' and inserting 
                ``affordable''.
                    (F) Paragraph (5) of section 772(d) of such Code is 
                amended by striking ``low-income'' and inserting 
                ``affordable''.
            (3) Clerical amendment.--The item relating to section 42 in 
        the table of sections for subpart D of part IV of subchapter A 
        of chapter 1 of the Internal Revenue Code of 1986 is amended to 
        read as follows:

``Sec. 42. Affordable housing credit.''.
    (h) Sense of Congress Regarding Data and Transparency.--It is the 
sense of Congress that in addition to expanding and strengthening the 
affordable housing credit through the provisions in this section, 
subsequent steps should also be taken to share data and identify other 
ways to increase the transparency of the program, and the House of 
Representatives and the Senate should work together with Federal 
agencies to identify data sources that can be shared.

SEC. 107. DECREASING THE EQUITY PENALTY AND INCENTIVIZING MORE LONG-
              TERM OWNERS TO SELL HOMES.

    (a) Increase of Exclusion of Gain From Sale of Principal 
Residence.--Section 121(b) of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``$250,000'' and inserting ``$500,000'' 
        each place it appears,
            (2) by striking ``500,000'' and inserting ``$1,000,000'' 
        each place it appears,
            (3) in paragraph (2)(A), in the heading, by striking 
        ``$500,000'' and inserting ``$1,000,000'', and
            (4) by adding at the end the following new paragraph:
            ``(5) Adjustment for inflation.--In the case of a taxable 
        year beginning after 2023, the $500,000 and $1,000,000 amounts 
        in paragraphs (1), (2), and (4) shall be increased by an amount 
        equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `2022' for `2016' in subparagraph (A)(ii) thereof.
        If any increase under this clause is not a multiple of $100, 
        such increase shall be rounded to the next lowest multiple of 
        $100.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges after the date of the enactment of this 
Act.

      TITLE II-- INCREASING ACCESS TO HOUSING AND ADDRESSING COST

SEC. 201. EXPANDING WORKFORCE AND VOLUNTEER HOUSING.

    (a) Congressional Findings.--The Congress finds that--
            (1) the lack of affordable housing in the United States is 
        an issue impacting millions of middle-class, working American 
        families;
            (2) many of these families earn more annually than the 
        income limits for certain Federal housing financing and 
        benefits; and
            (3) these families are often excluded from living in 
        neighborhoods near their places of work, schools, shopping, and 
        healthcare due to a lack of affordability.
    (b) Report to Congress.--Not later than 180 days after the date of 
the enactment of this Act, the Comptroller General of the United States 
shall submit to the Congress a report that--
            (1) identifies issues with housing affordability for 
        America's middle-income homeowners and renters, including 
        identifying geographically where housing is the most 
        unaffordable for these populations;
            (2) identifies Federal housing programs, including Federal 
        tax credits, grants, credit programs, and other programs that 
        currently benefit lower-income households, which are not 
        available to middle-income households;
            (3) identifies any gaps in the inclusion of middle-income 
        households in Federal housing programs designed to promote 
        affordability;
            (4) sets forth recommendations for a definition of 
        ``workforce housing'' based on income parameters in order to 
        assist Federal agencies in including middle-income households 
        under existing Federal programs; and
            (5) analyzes how such a definition could relate to 
        incentives for workforce housing development through Federal 
        programs, policies, and other initiatives.

SEC. 202. SUPPORTING AFFORDABILITY AND SAFETY FOR PUBLIC SERVANTS.

    Section 3(a) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(a)) is amended--
            (1) in paragraph (1), by striking ``Except as provided in 
        paragraph (2)'' and inserting ``Except as provided in 
        paragraphs (2) and (4)''; and
            (2) in paragraph (4)--
                    (A) in the heading, by striking ``Occupancy by 
                police officers'' and inserting, ``Occupancy by police 
                officers, firefighters, and emergency medical 
                technicians'';
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D);
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) Rental payments.--Notwithstanding paragraph 
                (1), a family of which one or more members are a police 
                officer, firefighter, or emergency medical technician 
                shall pay as rent for a dwelling unit assisted under 
                this Act the highest of the following amounts, rounded 
                to the nearest dollar:
                            ``(i) 15 per centum of the family's monthly 
                        adjusted income; or
                            ``(ii) 5 per centum of the family's monthly 
                        income''; and
                    (D) by amending subparagraph (D), as so 
                redesignated, to read as follows:
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Police officer.--The term `police 
                        officer' means any person determined by a 
                        public housing agency to be, during the period 
                        of residence of that person in public housing, 
                        employed on a full-time basis as a duly 
                        licensed professional police officer by a 
                        Federal, State, or local government or by any 
                        agency thereof (including a public housing 
                        agency having an accredited police force).
                            ``(ii) Firefighter.--The term `firefighter' 
                        means any person determined by a public housing 
                        agency to be, during the period of residence of 
                        that person in public housing, employed on a 
                        full-time basis as a firefighter by a fire 
                        department or emergency medical services 
                        responder unit of the Federal Government, a 
                        State, unit of general local government, or an 
                        Indian tribal government.
                            ``(iii) Emergency medical technician.--The 
                        term `emergency medical technician' means any 
                        person determined by a public housing agency to 
                        be, during the period of residence of that 
                        person in public housing, employed on a full-
                        time basis as an emergency medical technician 
                        by a fire department or emergency medical 
                        services responder unit of the Federal 
                        Government, a State, unit of general local 
                        government, or an Indian tribal government.''.

SEC. 203. EXPANDING PROGRAMS SUPPORTING HOMEOWNERSHIP FOR THOSE SERVING 
              THE COMMUNITY.

    (a) Eligibility for Good Neighbors Next Door Sales Program.--
Members of the Armed Forces, firefighters, and law enforcement officers 
shall be eligible to purchase eligible properties under the Good 
Neighbor Next Door Sales Program of the Secretary of Housing and Urban 
Development, as provided under subsection (b).
    (b) Eligible Properties.--Notwithstanding section 204 of the 
National Housing Act (12 U.S.C. 1710), part 291 of the regulations of 
the Secretary of Housing and Urban Development (24 C.F.R. part 291), or 
any other provision of law, regulation, guideline, order, or notice, in 
carrying out the Good Neighbor Next Door Sales Program for single-unit 
properties acquired by the Secretary, properties shall be made 
available for purchase under the Program by members of the Armed 
Forces, by firefighters, and by law enforcement officers without regard 
to whether or not they are located in a revitalization area.
    (c) Regulations.--The Secretary of Housing and Urban Development 
shall amend the regulations of the Secretary as necessary to carry out 
subsections (a) and (b).

SEC. 204. IMPROVING VOLUNTEER FIRST RESPONDER HOUSING.

    (a) Definitions.--In this section:
            (1) Bona fide volunteer; eligible employer; qualified 
        services.--The terms ``bona fide volunteer'', ``eligible 
        employer'', and ``qualified services'' have the meanings given 
        those terms in section 457(e) of the Internal Revenue Code of 
        1986.
            (2) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term ``Indian tribe'' in section 501(b) of 
        the Housing Act of 1949 (42 U.S.C. 1471(b)).
            (3) Qualified volunteer first responder.--The term 
        ``qualified volunteer first responder'' means any individual 
        who--
                    (A) is a bona fide volunteer performing qualified 
                services for an eligible employer;
                    (B) continuously served as a volunteer for the 
                eligible employer during the 2-year period preceding 
                the date on which the individual submits a verification 
                letter under section 3(b) or 4(b);
                    (C) during each of the 2 years described in 
                subparagraph (B)--
                            (i) met the minimum requirements for active 
                        membership established by the eligible 
                        employer; or
                            (ii) if the eligible employer did not 
                        establish minimum requirements, volunteered for 
                        not less than 200 hours; and
                    (D) is certified as a firefighter or other first 
                responder in the State, political subdivision of a 
                State, or jurisdiction of an Indian Tribe in which the 
                individual is serving as volunteer.
    (b) Department of Agriculture Single Family Housing Guaranteed Loan 
Program.--
            (1) In general.--A qualified volunteer first responder who 
        submits to the Secretary of Agriculture (referred to in this 
        subsection as the ``Secretary'') a verification letter in 
        accordance with paragraph (2) shall be eligible for a deduction 
        in annual income under section 3555.152(c) of title 7, Code of 
        Federal Regulations (or any successor regulation), in the 
        amount of $18,000.
            (2) Verification letter.--To be eligible for a deduction 
        under paragraph (1), a qualified volunteer first responder 
        shall submit to the Secretary a verification letter from the 
        head of the eligible employer for which the qualified volunteer 
        first responder volunteers, which shall--
                    (A) include the date on which the qualified 
                volunteer first responder joined the eligible employer 
                as a volunteer;
                    (B) attest to the Secretary that the qualified 
                volunteer first responder meets the requirements under 
                subparagraphs (B) and (C) of subsection (a)(3); and
                    (C) include a copy of the certification described 
                in subsection (a)(3)(D).
    (c) Good Neighbor Next Door Sales Program and Similar Programs.--
            (1) Eligibility.--A qualified volunteer first responder who 
        submits to the Secretary of Housing and Urban Development 
        (referred to in this section as the ``Secretary'') a 
        verification letter in accordance with paragraph (2) shall 
        qualify as a firefighter or emergency medical technician for 
        purposes of any single family property disposition program 
        carried out by the Secretary by regulation under section 204(g) 
        of the National Housing Act (12 U.S.C. 1710(g)) that offers 
        discounted home prices to firefighters or emergency medical 
        technicians.
            (2) Verification letter.--To qualify to purchase a home 
        under a single family property disposition program referred to 
        in paragraph (1), a qualified first responder shall submit to 
        the Secretary a verification letter from the head of the 
        eligible employer for which the qualified volunteer first 
        responder volunteers, which shall--
                    (A) include the date on which the qualified 
                volunteer first responder joined the eligible employer 
                as a volunteer;
                    (B) attest to the Secretary that the qualified 
                volunteer first responder meets the requirements under 
                subparagraphs (B) and (C) of subsection (a)(3);
                    (C) include a copy of the certification described 
                in subsection (a)(3)(D); and
                    (D) include a certification from the qualified 
                volunteer first responder of the responder's good faith 
                intention to continue serving as a volunteer for the 
                eligible employer for not less than 1 year following 
                the date of closing.

SEC. 205. IMPROVING ACCESS TO HOUSING FOR VETERANS.

    (a) Service Connected Disability Compensation.--Section 102(a)(20) 
of the Housing and Community Development Act of 1974 (42 U.S.C. 
5302(a)(20)) is amended by adding at the end the following:
                    ``(C) Service-connected disability compensation.--
                When determining whether a person is of a person of low 
                and moderate income, a person of low income, or a 
                person of moderate income under this paragraph, a 
                State, unit of general local government, or Indian 
                tribe shall exclude any service-connected disability 
                compensation received by such person from the 
                Department of Veterans Affairs.''.
    (b) Report.--The Comptroller General of the United States shall, 
not later than 1 year after the date of the enactment of this Act, 
submit to the Congress a report that--
            (1) examines how service-connected disability compensation 
        is treated for the purposes of determining eligibility for all 
        programs administered by the Secretary of Housing and Urban 
        Development and identifies any cases where service-connected 
        disability compensation is treated inconsistently across a 
        program; and
            (2) with respect to each program administered by the 
        Secretary of Housing and Urban Development, provides 
        legislative recommendations relating to how such program could 
        better serve veteran populations, and under-served communities.

SEC. 206. SUPPORTING VETERAN FAMILIES IN NEED.

    Section 2044(e) of title 38, United States Code, is amended--
            (1) by redesignating subparagraphs (A) through (H) as 
        paragraphs (1) through (8), respectively; and
            (2) by adding at the end the following new paragraph:
            ``(9) The amounts that are appropriated to carry out such 
        subsections for fiscal year 2025 and each fiscal year 
        thereafter.''.

SEC. 207. ATTRACTING PRIVATE INVESTMENT TO BUILD AND REHABILITATE 
              OWNER-OCCUPIED HOMES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 42 the following new section:

``SEC. 42A. NEIGHBORHOOD HOMES CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, the 
neighborhood homes credit determined under this section for the taxable 
year is, with respect to each qualified residence sold by the taxpayer 
during such taxable year in an affordable sale, the lesser of--
            ``(1) an amount equal to--
                    ``(A) the excess (if any) of--
                            ``(i) the reasonable development costs paid 
                        or incurred by the taxpayer with respect to 
                        such qualified residence, over
                            ``(ii) the sale price of such qualified 
                        residence (reduced by any reasonable expenses 
                        paid or incurred by the taxpayer in connection 
                        with such sale), or
                    ``(B) if the neighborhood homes credit agency 
                determines it is necessary to ensure financial 
                feasibility, an amount not to exceed 120 percent of the 
                amount under subparagraph (A),
            ``(2) 35 percent of the eligible development costs paid or 
        incurred by the taxpayer with respect to such qualified 
        residence, or
            ``(3) 28 percent of the national median sale price for new 
        homes (as determined pursuant to the most recent census data 
        available as of the date on which the neighborhood homes credit 
        agency makes an allocation for the qualified project).
    ``(b) Development Costs.--For purposes of this section--
            ``(1) Reasonable development costs.--
                    ``(A) In general.--The term `reasonable development 
                costs' means amounts paid or incurred for the 
                acquisition of buildings and land, construction, 
                substantial rehabilitation, demolition of structures, 
                or environmental remediation, to the extent that the 
                neighborhood homes credit agency determines that such 
                amounts meet the standards specified pursuant to 
                subsection (f)(1)(C) (as of the date on which 
                construction or substantial rehabilitation is 
                substantially complete, as determined by such agency) 
                and are necessary to ensure the financial feasibility 
                of such qualified residence.
                    ``(B) Considerations in making determination.--In 
                making the determination under subparagraph (A), the 
                neighborhood homes credit agency shall consider--
                            ``(i) the sources and uses of funds and the 
                        total financing,
                            ``(ii) any proceeds or receipts generated 
                        or expected to be generated by reason of tax 
                        benefits, and
                            ``(iii) the reasonableness of the 
                        developmental costs and fees.
            ``(2) Eligible development costs.--The term `eligible 
        development costs' means the amount which would be reasonable 
        development costs if the amounts taken into account as paid or 
        incurred for the acquisition of buildings and land did not 
        exceed 75 percent of such costs determined without regard to 
        any amount paid or incurred for the acquisition of buildings 
        and land.
            ``(3) Substantial rehabilitation.--The term `substantial 
        rehabilitation' means amounts paid or incurred for 
        rehabilitation of a qualified residence if such amounts exceed 
        the greater of--
                    ``(A) $20,000, or
                    ``(B) 20 percent of the amounts paid or incurred by 
                the taxpayer for the acquisition of buildings and land 
                with respect to such qualified residence.
            ``(4) Construction and rehabilitation only after allocation 
        taken into account.--
                    ``(A) In general.--The terms `reasonable 
                development costs' and `eligible development costs' 
                shall not include any amount paid or incurred before 
                the date on which an allocation is made to the taxpayer 
                under subsection (e) with respect to the qualified 
                project of which the qualified residence is part unless 
                such amount is paid or incurred for the acquisition of 
                buildings or land.
                    ``(B) Land and building acquisition costs.--Amounts 
                paid or incurred for the acquisition of buildings or 
                land shall be included under paragraph (A) only if paid 
                or incurred not more than 3 years before the date on 
                which the allocation referred to in subparagraph (A) is 
                made. If the taxpayer acquired any building or land 
                from an entity (or any related party to such entity) 
                that holds an ownership interest in the taxpayer, then 
                such entity must also have acquired such property 
                within such 3-year period, and the acquisition cost 
                included under subparagraph (A) with respect to the 
                taxpayer shall not exceed the amount such entity paid 
                or incurred to acquire such property.
    ``(c) Qualified Residence.--For purposes of this section--
            ``(1) In general.--The term `qualified residence' means a 
        residence that--
                    ``(A) is real property affixed on a permanent 
                foundation,
                    ``(B) is--
                            ``(i) a house which is comprised of 4 or 
                        fewer residential units,
                            ``(ii) a condominium unit, or
                            ``(iii) a house or an apartment owned by a 
                        cooperative housing corporation (as defined in 
                        section 216(b)),
                    ``(C) is part of a qualified project with respect 
                to which the neighborhood homes credit agency has made 
                an allocation under subsection (e), and
                    ``(D) is located in a qualified census tract 
                (determined as of the date of such allocation).
            ``(2) Qualified census tract.--
                    ``(A) In general.--The term `qualified census 
                tract' means a census tract--
                            ``(i) which--
                                    ``(I) has a median family income 
                                which does not exceed 80 percent of the 
                                median family income for the applicable 
                                area,
                                    ``(II) has a poverty rate that is 
                                not less than 130 percent of the 
                                poverty rate of the applicable area, 
                                and
                                    ``(III) has a median value for 
                                owner-occupied homes that does not 
                                exceed the median value for owner-
                                occupied homes in the applicable area,
                            ``(ii) which--
                                    ``(I) is located in a city which 
                                has a population of not less than 
                                50,000 and such city has a poverty rate 
                                that is not less than 150 percent of 
                                the poverty rate of the applicable 
                                area,
                                    ``(II) has a median family income 
                                which does not exceed the median family 
                                income for the applicable area, and
                                    ``(III) has a median value for 
                                owner-occupied homes that does not 
                                exceed 80 percent of the median value 
                                for owner-occupied homes in the 
                                applicable area,
                            ``(iii) which--
                                    ``(I) is located in a 
                                nonmetropolitan county,
                                    ``(II) has a median family income 
                                which does not exceed the median family 
                                income for the applicable area, and
                                    ``(III) has been designated by a 
                                neighborhood homes credit agency under 
                                this clause, or
                            ``(iv) which is not otherwise a qualified 
                        census tract and is located in a disaster area 
                        (as defined in section 7508A(d)(3)), but only 
                        with respect to credits allocated in any period 
                        during which the President of the United States 
                        has determined that such area warrants 
                        individual or individual and public assistance 
                        by the Federal Government under the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act.
                    ``(B) Applicable area.--The term `applicable area' 
                means--
                            ``(i) in the case of a metropolitan census 
                        tract, the metropolitan area in which such 
                        census tract is located, and
                            ``(ii) in the case of a census tract other 
                        than a census tract described in clause (i), 
                        the State.
    ``(d) Affordable Sale.--For purposes of this section--
            ``(1) In general.--The term `affordable sale' means a sale 
        to a qualified homeowner of a qualified residence that the 
        neighborhood homes credit agency certifies as meeting the 
        standards promulgated under subsection (f)(1)(D) for a price 
        that does not exceed--
                    ``(A) in the case of any qualified residence not 
                described in subparagraph (B), (C), or (D), the amount 
                equal to the product of 4 multiplied by the median 
                family income for the applicable area (as determined 
                pursuant to the most recent census data available as of 
                the date of the contract for such sale),
                    ``(B) in the case of a house comprised of 2 
                residential units, 125 percent of the amount described 
                in subparagraph (A),
                    ``(C) in the case of a house comprised of 3 
                residential units, 150 percent of the amount described 
                in subparagraph (A), or
                    ``(D) in the case of a house comprised of 4 
                residential units, 175 percent of the amount described 
                in subparagraph (A).
            ``(2) Qualified homeowner.--The term `qualified homeowner' 
        means, with respect to a qualified residence, an individual--
                    ``(A) who owns and uses such qualified residence as 
                the principal residence of such individual, and
                    ``(B) whose family income (determined as of the 
                date that a binding contract for the affordable sale of 
                such residence is entered into) is 140 percent or less 
                of the median family income for the applicable area in 
                which the qualified residence is located.
    ``(e) Credit Ceiling and Allocations.--
            ``(1) Credit limited based on allocations to qualified 
        projects.--
                    ``(A) In general.--The credit allowed under 
                subsection (a) to any taxpayer for any taxable year 
                with respect to one or more qualified residences which 
                are part of the same qualified project shall not exceed 
                the excess (if any) of--
                            ``(i) the amount allocated by the 
                        neighborhood homes credit agency under this 
                        paragraph to such taxpayer with respect to such 
                        qualified project, over
                            ``(ii) the aggregate amount of credit 
                        allowed under subsection (a) to such taxpayer 
                        with respect to qualified residences which are 
                        a part of such qualified project for all prior 
                        taxable years.
                    ``(B) Deadline for completion.--No credit shall be 
                allowed under subsection (a) with respect to any 
                qualified residence unless the affordable sale of such 
                residence is during the 5-year period beginning on the 
                date of the allocation to the qualified project of 
                which such residence is a part (or, in the case of a 
                qualified residence to which subsection (i) applies, 
                the rehabilitation of such residence is completed 
                during such 5-year period).
            ``(2) Limitations on allocations to qualified projects.--
                    ``(A) Allocations limited by state neighborhood 
                homes credit ceiling.--The aggregate amount allocated 
                to taxpayers with respect to qualified projects by the 
                neighborhood homes credit agency of any State for any 
                calendar year shall not exceed the State neighborhood 
                homes credit amount of such State for such calendar 
                year.
                    ``(B) Set-aside for certain projects involving 
                qualified nonprofit organizations.--Rules similar to 
                the rules of section 42(h)(5) shall apply for purposes 
                of this section.
            ``(3) Determination of state neighborhood homes credit 
        ceiling.--
                    ``(A) In general.--The State neighborhood homes 
                credit amount for a State for a calendar year is an 
                amount equal to the sum of--
                            ``(i) the greater of--
                                    ``(I) the product of $7, multiplied 
                                by the State population (determined in 
                                accordance with section 146(j)), or
                                    ``(II) $9,000,000, and
                            ``(ii) any amount previously allocated to 
                        any taxpayer with respect to any qualified 
                        project by the neighborhood homes credit agency 
                        of such State which can no longer be allocated 
                        to any qualified residence because the 5-year 
                        period described in paragraph (1)(B) expires 
                        during calendar year.
                    ``(B) 3-year carryforward of unused limitation.--
                The State neighborhood homes credit amount for a State 
                for a calendar year shall be increased by the excess 
                (if any) of the State neighborhood homes credit amount 
                for such State for the preceding calendar year over the 
                aggregate amount allocated by the neighborhood homes 
                credit agency of such State during such preceding 
                calendar year. Any amount carried forward under the 
                preceding sentence shall not be carried past the third 
                calendar year after the calendar year in which such 
                credit amount originally arose, determined on a first-
                in, first-out basis.
    ``(f) Responsibilities of Neighborhood Homes Credit Agencies.--
            ``(1) In general.--Notwithstanding subsection (e), the 
        State neighborhood homes credit dollar amount shall be zero for 
        a calendar year unless the neighborhood homes credit agency of 
        the State--
                    ``(A) allocates such amount pursuant to a qualified 
                allocation plan of the neighborhood homes credit 
                agency,
                    ``(B) allocates not more than 20 percent of amounts 
                allocated in the previous year (or for allocations made 
                in 2023, not more than 20 percent of the neighborhood 
                homes credit ceiling for such year) to projects with 
                respect to qualified residences which--
                            ``(i) are located in census tracts 
                        described in subsection (c)(2)(A)(iii), 
                        (c)(2)(A)(iv), (i)(5), or
                            ``(ii) are not located in a qualified 
                        census tract but meet the requirements of 
                        subsection (i)(8),
                    ``(C) promulgates standards with respect to 
                reasonable qualified development costs and fees,
                    ``(D) promulgates standards with respect to 
                construction quality,
                    ``(E) in the case of any neighborhood homes credit 
                agency which makes an allocation to a qualified project 
                which includes any qualified residence to which 
                subsection (i) applies, promulgates standards with 
                respect to protecting the owners of such residences, 
                including the capacity of such owners to pay 
                rehabilitation costs not covered by the credit provided 
                by this section and providing for the disclosure to 
                such owners of their rights and responsibilities with 
                respect to the rehabilitation of such residences,
                    ``(F) submits to the Secretary (at such time and in 
                such manner as the Secretary may prescribe) an annual 
                report specifying--
                            ``(i) the amount of the neighborhood homes 
                        credits allocated to each qualified project for 
                        the previous year,
                            ``(ii) with respect to each qualified 
                        residence completed in the preceding calendar 
                        year--
                                    ``(I) the census tract in which 
                                such qualified residence is located,
                                    ``(II) with respect to the 
                                qualified project that includes such 
                                qualified residence, the year in which 
                                such project received an allocation 
                                under this section,
                                    ``(III) whether such qualified 
                                residence was new, substantially 
                                rehabilitated and sold to a qualified 
                                homeowner, or substantially 
                                rehabilitated pursuant to subsection 
                                (i),
                                    ``(IV) the eligible development 
                                costs of such qualified residence,
                                    ``(V) the amount of the 
                                neighborhood homes credit with respect 
                                to such qualified residence,
                                    ``(VI) the sales price of such 
                                qualified residence, if applicable, and
                                    ``(VII) the family income of the 
                                qualified homeowner (expressed as a 
                                percentage of the applicable area 
                                median family income for the location 
                                of the qualified residence), and
                            ``(iii) such other information as the 
                        Secretary may require, and
                    ``(G) makes available to the general public a 
                written explanation for any allocation of a 
                neighborhood homes credit dollar amount which is not 
                made in accordance with established priorities and 
                selection criteria of the neighborhood homes credit 
                agency.
        Subparagraph (B) shall be applied by substituting `40 percent' 
        for `20 percent' each place it appears in the case of any State 
        in which at least 45 percent of the State population resides 
        outside metropolitan statistical areas (within the meaning of 
        section 143(k)(2)(B)) and less than 20 percent of the census 
        tracts located in the State are described in subsection 
        (c)(2)(A)(i).
            ``(2) Qualified allocation plan.--For purposes of this 
        subsection, the term `qualified allocation plan' means any plan 
        which--
                    ``(A) sets forth the selection criteria to be used 
                to prioritize qualified projects for allocations of 
                State neighborhood homes credit dollar amounts, 
                including--
                            ``(i) the need for new or substantially 
                        rehabilitated owner-occupied homes in the area 
                        addressed by the project,
                            ``(ii) the expected contribution of the 
                        project to neighborhood stability and 
                        revitalization, including the impact on 
                        neighborhood residents,
                            ``(iii) the capability and prior 
                        performance of the project sponsor, and
                            ``(iv) the likelihood the project will 
                        result in long-term homeownership,
                    ``(B) has been made available for public comment, 
                and
                    ``(C) provides a procedure that the neighborhood 
                homes credit agency (or any agent or contractor of such 
                agency) shall follow for purposes of--
                            ``(i) identifying noncompliance with any 
                        provisions of this section, and
                            ``(ii) notifying the Internal Revenue 
                        Service of any such noncompliance of which the 
                        agency becomes aware.
    ``(g) Repayment.--
            ``(1) In general.--
                    ``(A) Sold during 5-year period.--If a qualified 
                residence is sold during the 5-year period beginning 
                immediately after the affordable sale of such qualified 
                residence referred to in subsection (a), the seller 
                shall transfer an amount equal to the repayment amount 
                to the relevant neighborhood homes credit agency.
                    ``(B) Use of repayments.--A neighborhood homes 
                credit agency shall use any amount received pursuant to 
                subparagraph (A) only for purposes of qualified 
                projects.
            ``(2) Repayment amount.--For purposes of paragraph (1)(A)--
                    ``(A) In general.--The repayment amount is an 
                amount equal to the applicable percentage of the gain 
                from the sale to which the repayment relates.
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage is 50 
                percent, reduced by 10 percentage points for each year 
                of the 5-year period referred to in paragraph (1)(A) 
                which ends before the date of such sale.
            ``(3) Lien for repayment amount.--A neighborhood homes 
        credit agency receiving an allocation under this section shall 
        place a lien on each qualified residence that is built or 
        rehabilitated as part of a qualified project for an amount such 
        agency deems necessary to ensure potential repayment pursuant 
        to paragraph (1)(A).
            ``(4) Waiver.--
                    ``(A) In general.--The neighborhood homes credit 
                agency may waive the repayment required under paragraph 
                (1)(A) if the agency determines that making a repayment 
                would constitute a hardship to the seller.
                    ``(B) Hardship.--For purposes of subparagraph (A), 
                with respect to the seller, a hardship may include--
                            ``(i) divorce,
                            ``(ii) disability,
                            ``(iii) illness, or
                            ``(iv) any other hardship identified by the 
                        neighborhood homes credit agency for purposes 
                        of this paragraph.
    ``(h) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Neighborhood homes credit agency.--The term 
        `neighborhood homes credit agency' means the agency designated 
        by the governor of a State as the neighborhood homes credit 
        agency of the State.
            ``(2) Qualified project.--The term `qualified project' 
        means a project that a neighborhood homes credit agency 
        certifies will build or substantially rehabilitate one or more 
        qualified residences.
            ``(3) Determinations of family income.--Rules similar to 
        the rules of section 143(f)(2) shall apply for purposes of this 
        section.
            ``(4) Possessions treated as states.--The term `State' 
        includes the District of Columbia and the possessions of the 
        United States.
            ``(5) Special rules related to condominiums and cooperative 
        housing corporations.--
                    ``(A) Determination of development costs.--In the 
                case of a qualified residence described in clause (ii) 
                or (iii) of subsection (c)(1)(A), the reasonable 
                development costs and eligible development costs of 
                such qualified residence shall be an amount equal to 
                such costs, respectively, of the entire condominium or 
                cooperative housing property in which such qualified 
                residence is located, multiplied by a fraction--
                            ``(i) the numerator of which is the total 
                        floor space of such qualified residence, and
                            ``(ii) the denominator of which is the 
                        total floor space of all residences within such 
                        property.
                    ``(B) Tenant-stockholders of cooperative housing 
                corporations treated as owners.--In the case of a 
                cooperative housing corporation (as such term is 
                defined in section 216(b)), a tenant-stockholder shall 
                be treated as owning the house or apartment which such 
                person is entitled to occupy.
            ``(6) Related party sales not treated as affordable 
        sales.--
                    ``(A) In general.--A sale between related persons 
                shall not be treated as an affordable sale.
                    ``(B) Related persons.--For purposes of this 
                paragraph, a person (in this subparagraph referred to 
                as the `related person') is related to any person if 
                the related person bears a relationship to such person 
                specified in section 267(b) or 707(b)(1), or the 
                related person and such person are engaged in trades or 
                businesses under common control (within the meaning of 
                subsections (a) and (b) of section 52). For purposes of 
                the preceding sentence, in applying section 267(b) or 
                707(b)(1), `10 percent' shall be substituted for `50 
                percent'.
            ``(7) Inflation adjustment.--
                    ``(A) In general.--In the case of a calendar year 
                after 2023, the dollar amounts in subsections 
                (b)(3)(A), (e)(3)(A)(i)(I), (e)(3)(A)(i)(II), and 
                (i)(2)(C) shall each be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for such 
                        calendar year by substituting `calendar year 
                        2022' for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.
                    ``(B) Rounding.--
                            ``(i) In the case of the dollar amounts in 
                        subsections (b)(3)(A) and (i)(2)(C), any 
                        increase under paragraph (1) which is not a 
                        multiple of $1,000 shall be rounded to the 
                        nearest multiple of $1,000.
                            ``(ii) In the case of the dollar amount in 
                        subsection (e)(3)(A)(i)(I), any increase under 
                        paragraph (1) which is not a multiple of $0.01 
                        shall be rounded to the nearest multiple of 
                        $0.01.
                            ``(iii) In the case of the dollar amount in 
                        subsection (e)(3)(A)(i)(II), any increase under 
                        paragraph (1) which is not a multiple of 
                        $100,000 shall be rounded to the nearest 
                        multiple of $100,000.
            ``(8) Report.--
                    ``(A) In general.--The Secretary shall annually 
                issue a report, to be made available to the public, 
                which contains the information submitted pursuant to 
                subsection (f)(1)(F).
                    ``(B) De-identification.--The Secretary shall 
                ensure that any information made public pursuant to 
                subparagraph (A) excludes any information that would 
                allow for the identification of qualified homeowners.
            ``(9) List of qualified census tracts.--The Secretary of 
        Housing and Urban Development shall, for each year, make 
        publicly available a list of qualified census tracts under--
                    ``(A) on a combined basis, clauses (i) and (ii) of 
                subsection (c)(2)(A),
                    ``(B) clause (iii) of such subsection, and
                    ``(C) subsection (i)(5)(A).
            ``(10) Denial of deductions if converted to rental 
        housing.--If, during the 5-year period beginning immediately 
        after the affordable sale of a qualified residence referred to 
        in subsection (a), an individual who owns a qualified residence 
        (whether or not such individual was the purchaser in such 
        affordable sale) fails to use such qualified residence as such 
        individual's principal residence for any period of time, no 
        deduction shall be allowed for expenses paid or incurred by 
        such individual with respect to renting, during such period of 
        time, such qualified residence.
    ``(i) Application of Credit With Respect to Owner-Occupied 
Rehabilitations.--
            ``(1) In general.--In the case of a qualified 
        rehabilitation by the taxpayer of any qualified residence which 
        is owned (as of the date that the written binding contract 
        referred to in paragraph (3) is entered into) by a specified 
        homeowner, the rules of paragraphs (2) through (7) shall apply.
            ``(2) Alternative credit determination.--In the case of any 
        qualified residence described in paragraph (1), the 
        neighborhood homes credit determined under subsection (a) with 
        respect to such residence shall (in lieu of any credit 
        otherwise determined under subsection (a) with respect to such 
        residence) be allowed in the taxable year during which the 
        qualified rehabilitation is completed (as determined by the 
        neighborhood homes credit agency) and shall be equal to the 
        least of--
                    ``(A) the excess (if any) of--
                            ``(i) the amounts paid or incurred by the 
                        taxpayer for the qualified rehabilitation of 
                        the qualified residence to the extent that such 
                        amounts are certified by the neighborhood homes 
                        credit agency (at the time of the completion of 
                        such rehabilitation) as meeting the standards 
                        specified pursuant to subsection (f)(1)(C), 
                        over
                            ``(ii) any amounts paid to such taxpayer 
                        for such rehabilitation,
                    ``(B) 50 percent of the amounts described in 
                subparagraph (A)(i), or
                    ``(C) $50,000.
            ``(3) Qualified rehabilitation.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified rehabilitation' means a 
                rehabilitation or reconstruction performed pursuant to 
                a written binding contract between the taxpayer and the 
                specified homeowner if the amount paid or incurred by 
                the taxpayer in the performance of such rehabilitation 
                or reconstruction exceeds the dollar amount in effect 
                under subsection (b)(3)(A).
                    ``(B) Application of limitation to expenses paid or 
                incurred after allocation.--A rule similar to the rule 
                of section (b)(4) shall apply for purposes of this 
                subsection.
            ``(4) Specified homeowner.--For purposes of this 
        subsection, the term `qualified homeowner' means, with respect 
        to a qualified residence, an individual--
                    ``(A) who owns and uses such qualified residence as 
                the principal residence of such individual as of the 
                date that the written binding contract referred to in 
                paragraph (3) is entered into, and
                    ``(B) whose family income (determined as of such 
                date) does not exceed the median family income for the 
                applicable area (with respect to the census tract in 
                which the qualified residence is located).
            ``(5) Additional census tracts in which owner-occupied 
        residences may be located.--In the case of any qualified 
        residence described in paragraph (1), the term `qualified 
        census tract' includes any census tract which--
                    ``(A) meets the requirements of subsection 
                (c)(2)(A)(i) without regard to subclause (III) thereof, 
                and
                    ``(B) is designated by the neighborhood homes 
                credit agency for purposes of this paragraph.
            ``(6) Modification of repayment requirement.--In the case 
        of any qualified residence described in paragraph (1), 
        subsection (g) shall be applied by beginning the 5-year period 
        otherwise described therein on the date on which the qualified 
        homeowner acquired such residence.
            ``(7) Related parties.--Paragraph (1) shall not apply if 
        the taxpayer is the owner of the qualified residence described 
        in paragraph (1) or is related (within the meaning of 
        subsection (h)(6)(B)) to such owner.
            ``(8) Pyrrhotite remediation.--The requirement of 
        subsection (c)(1)(C) shall not apply to a qualified 
        rehabilitation under this subsection of a qualified residence 
        that is documented by an engineer's report and core testing to 
        have a foundation that is adversely impacted by pyrrhotite or 
        other iron sulfide minerals.
    ``(j) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section, including regulations that prevent avoidance of the rules, and 
abuse of the purposes, of this section.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b) of the Internal Revenue Code of 1986 is amended by striking 
``plus'' at the end of paragraph (37), by striking the period at the 
end of paragraph (38) and inserting ``, plus'', and by adding at the 
end the following new paragraph:
            ``(39) the neighborhood homes credit determined under 
        section 42A(a).''.
    (c) Credit Allowed Against Alternative Minimum Tax.--Section 
38(c)(4)(B) of the Internal Revenue Code of 1986 is amended by 
redesignating clauses (iv) through (xii) as clauses (v) through (xiii), 
respectively, and by inserting after clause (iii) the following new 
clause:
                            ``(iv) the credit determined under section 
                        42A,''.
    (d) Basis Adjustments.--
            (1) Energy efficient home improvement credit.--Section 
        25C(g) of the Internal Revenue Code of 1986 is amended by 
        adding after the first sentence the following new sentence: 
        ``This subsection shall not apply for purposes of determining 
        the eligible development costs or adjusted basis of any 
        building under section 42A.''.
            (2) Residential clean energy credit.--Section 25D(f) of 
        such Code is amended by adding after the first sentence the 
        following new sentence: ``This subsection shall not apply for 
        purposes of determining the eligible development costs or 
        adjusted basis of any building under section 42A.''.
            (3) New energy efficient home credit.--Section 45L(e) of 
        such Code is amended by inserting ``or for purposes of 
        determining the eligible development costs or adjusted basis of 
        any building under section 42A'' after ``section 42''.
    (e) Exclusion From Gross Income.--Part III of subchapter B of 
chapter 1 of the Internal Revenue Code of 1986 is amended by inserting 
before section 140 the following new section:

``SEC. 139J. STATE ENERGY SUBSIDIES FOR QUALIFIED RESIDENCES.

    ``(a) Exclusion From Gross Income.--Gross income shall not include 
the value of any subsidy provided to a taxpayer (whether directly or 
indirectly) by any State energy office (as defined in section 124(a) of 
the Energy Policy Act of 2005 (42 U.S.C. 15821(a))) for purposes of any 
energy improvements made to a qualified residence (as defined in 
section 42A(c)(1)).''.
    (f) Conforming Amendments.--
            (1) Subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) of 
        section 469 of the Internal Revenue Code of 1986 are each 
        amended by inserting ``or 42A'' after ``section 42''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 42 the following new item:

``Sec. 42A. Neighborhood homes credit.''.
            (3) The table of sections for part III of subchapter B of 
        chapter 1 of such Code is amended by inserting before the item 
        relating to section 140 the following new item:

``Sec. 139J. State energy subsidies for qualified residences.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2023.

SEC. 208. BETTER UTILIZING AND DISPOSING OF UNUSED MILITARY AND 
              GOVERNMENT LANDS FOR HOUSING.

    (a) In General.--A State or unit of local government may submit a 
petition to a Federal agency requesting to use unused property owned by 
such Federal agency for the construction of affordable housing.
    (b) Submission to PBRB.--Any Federal agency that receives a 
petition under subsection (a) shall submit a copy of such petition to 
the Public Buildings Reform Board.
    (c) Determination.--A Federal agency that receives a petition under 
subsection (a) shall, not less that 60 days after receiving such 
petition determine whether the property is excess.
    (d) Justification Required.--If a Federal agency determines under 
subsection (c) that a property is not excess such Federal agency shall 
submit to the Office of Management and Budget a statement that 
justifies why such property is not excess.
    (e) Donation by GSA.--If a Federal agency determines a property to 
be excess under subsection (b), the General Services Administration may 
donate such property to the State or unit of local government that 
submitted the petition under subsection (a).

SEC. 209. ENERGY CONSERVATION STANDARDS FOR MANUFACTURED HOUSING.

    The Secretary of Energy may not, by rule or otherwise, establish 
energy conservation standards for manufactured housing.

SEC. 210. RENTAL ASSISTANCE DEMONSTRATION PROGRAM.

    The matter under the heading ``Rental Assistance Demonstration'' in 
the Department of Housing and Urban Development Appropriations Act, 
2012 (Public Law 112-55), is amended--
            (1) by striking the second proviso; and
            (2) by striking the fourth proviso.

SEC. 211. CREATING INCENTIVES FOR SMALL DOLLAR LOAN ORIGINATORS.

    (a) Small Dollar Mortgage Defined.--In this section, the term 
``small dollar mortgage'' means a mortgage loan that--
            (1) has an original principal obligation of not more than 
        $70,000;
            (2) is secured by real property designed for the occupancy 
        of 1 to 4 families; and
            (3) is--
                    (A) insured by the Federal Housing Administration 
                under title II of the National Housing Act (12 U.S.C. 
                1707 et seq.);
                    (B) made, guaranteed, or insured by the Department 
                of Veterans Affairs;
                    (C) made, guaranteed, or insured by the Department 
                of Agriculture; or
                    (D) eligible to be purchased or securitized by the 
                Federal Home Loan Mortgage Corporation or the Federal 
                National Mortgage Association.
    (b) Requirement To Update Regulations.--Not later than 270 days 
after the date of enactment of this Act, the Director of the Bureau of 
Consumer Financial Protection shall issue regulations to update part 
1026 of title 12, Code of Federal Regulations (commonly referred to as 
``Regulation Z'') to allow for salaried originators of residential 
mortgage loans that only originate small dollar mortgages.

SEC. 212. SMALL DOLLAR MORTGAGE POINTS AND FEES.

    (a) Definition.--In this section, the term ``small dollar 
mortgage'' means a mortgage with an original principal obligation of 
less than $70,000.
    (b) Amendments Required.--Not later than 180 days after the date of 
enactment of this Act, the Director of the Bureau of Consumer Financial 
Protection, in consultation with the Secretary of Housing and Urban 
Development and the Director of the Federal Housing Finance Agency, 
shall amend the limitations with respect to points and fees under 
section 1026.32 of title 12, Code of Federal Regulations, or any 
successor regulation, to encourage additional lending for small dollar 
mortgages.

SEC. 213. REMOVING OUTDATED REGULATION FOR MANUFACTURED HOUSING.

    (a) In General.--Section 603(6) of the National Manufactured 
Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 
5402(6)) is amended by striking ``built on a permanent chassis and''.
    (b) Implementation.--Not later than 90 days after the date of the 
enactment of this Act, the consensus committee established under 
section 604(a)(3) of the National Manufactured Housing Construction and 
Safety Standards Act of 1974 (42 U.S.C. 5403(a)(3)) shall meet to 
develop and recommend to the Secretary of Housing and Urban Development 
such revisions to the Federal manufactured home construction and safety 
standards, and related regulations, as are necessary to implement the 
amendment made by subsection (a) of this section. Such revised 
standards shall be considered by the Secretary for adoption pursuant to 
the process set forth in section 604 of such Act.

SEC. 214. RELIEVING BURDENS ON AFFORDABILITY.

    (a) In General.--Section 164(b)(6) of the Internal Revenue Code of 
1986 is amended by adding at the end the following: ``In the case of a 
joint return for a taxable year beginning after December 31, 2022, and 
before January 1, 2024, if the taxpayer's adjusted gross income for 
such taxable year is less than $500,000, subparagraph (B) shall be 
applied by substituting `$20,000' for `$10,000'.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2022.

SEC. 215. PROTECTING HOME AFFORDABILITY FROM ENERGY MANDATES.

    Congress disapproves the rule submitted by the Department of 
Housing and Urban Development and the Department of Agriculture 
relating to ``Final Determination: Adoption of Energy Efficiency 
Standards for New Construction of HUD- and USDA-Financed Housing'' (89 
Fed. Reg. 33112 (April 26, 2024)), and such rule shall have no force or 
effect.

       TITLE III--SERVING THE MOST VULNERABLE; HEALTH AND SAFETY

SEC. 301. GAO STUDY TO DETERMINE PROXIMITY OF HOUSING TO SUPERFUND 
              SITES.

    (a) Study.--The Comptroller General of the United States shall 
carry out a study to identify how many residential dwelling units, and 
how many dwelling units in public housing (as such term is defined in 
section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(B))), are located within one mile of a site that is included on 
the National Priorities List pursuant to section 105 of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9605).
    (b) Report.--Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit a report to the Congress identifying, for each 
site referred to in subsection (a), how many residential dwelling 
units, and how many dwelling units in public housing, are located 
within one mile of such site.

SEC. 302. ENSURING PUBLIC HOUSING AGENCIES INSPECT EACH DWELLING UNIT 
              EACH YEAR.

    The Secretary of Housing and Urban Development and the Comptroller 
General of the United States shall, not later than 1 year after the 
date of the enactment of this section, conduct a study and submit a 
report to the Congress that identifies:
            (1) how many inspections required to be conducted by the 
        Secretary of Housing and Urban Development in the 1-year period 
        are incomplete; and
            (2) how many inspectors are needed to ensure that all 
        inspections required to be conducted by the Secretary of 
        Housing and Urban Development can be completed each year.

SEC. 303. INCENTIVIZING LOCAL SOLUTIONS TO HOMELESSNESS.

    (a) Continuum of Care Program.--Section 428 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 1186b) is amended by adding at the 
end the following:
    ``(f) Incentives for Reducing Homelesness.--
            ``(1) In general.--From the amounts made available to carry 
        out this subtitle for a fiscal year, the Secretary may use not 
        more than 10 percent of the amounts made available to carry out 
        this subtitle for incentives described in paragraph (2).
            ``(2) Incentives.--The Secretary may provide bonuses or 
        other incentives to a geographic area under this subtitle if, 
        during a fiscal year, the Secretary determines that an entity 
        receiving funds under this subtitle has demonstrably and 
        measurably improved housing outcomes for homeless individuals 
        in the geographic area.''.
    (b) Emergency Solutions Grants Program.--Section 413 of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11372a) is amended by 
adding at the end the following:
    ``(c) Incentives for Reducing Homelesness.--
            ``(1) In general.--From the amounts made available to carry 
        out this subtitle for a fiscal year, the Secretary may use not 
        more than 10 percent of the amounts made available to carry out 
        this subtitle for incentives described in paragraph (2).
            ``(2) Incentives.--The Secretary may provide bonuses or 
        other incentives to a geographic area under this subtitle if, 
        during a fiscal year, the Secretary determines that an entity 
        receiving funds under this subtitle has demonstrably and 
        measurably improved housing outcomes for homeless individuals 
        in the geographic area.''.

SEC. 304. IMPROVING MOLD AND HEALTH STANDARDS.

    (a) Definitions.--In this section:
            (1) Indoor residential mold.--The term ``indoor residential 
        mold'' means any form of multicellular fungi in indoor 
        environments, including cladosporium, penicillium, alternaria, 
        aspergillus, fusarium, trichoderma, memnoniella, mucor, 
        stachybotrys chartarum, streptomyces, and epicoccumoften found 
        in water-damaged indoor environments and building materials.
            (2) Residential mold inspection.--The term ``residential 
        mold inspection'' means an inspection, by a certified or 
        licensed mold inspector or other indoor environmental 
        professional, including through the Real Estate Assessment 
        Center, of real property that is designed to discover--
                    (A) indoor mold growth in residential properties;
                    (B) conditions that facilitate indoor residential 
                mold growth; or
                    (C) indicia of conditions that are likely to 
                facilitate indoor residential mold growth.
            (3) Toxigenic mold.--The term ``toxigenic mold'' means any 
        indoor mold growth that may be capable of producing a toxin or 
        toxic compound, including mycotoxins and mVOCs, that can cause 
        pulmonary, respiratory, neurological, gastrointestinal, or 
        dermatological illnesses, or other major adverse health 
        impacts, as jointly determined by the Director of the National 
        Institutes of Health, the Secretary of Housing and Urban 
        Development, the Administrator of the Environmental Protection 
        Agency, and the Director of the Centers for Disease Control and 
        Prevention.
    (b) Interagency Research on Health Impacts of Indoor Residential 
Mold.--
            (1) Research.--
                    (A) In general.--As soon as practicable after the 
                date of enactment of this Act, the Director of the 
                National Institute of Environmental Health Sciences at 
                the National Institutes of Health, in conjunction with 
                the Secretary of Housing and Urban Development, the 
                Director of the Centers for Disease Control and 
                Prevention, the Administrator of the Environmental 
                Protection Agency, the Secretary of Energy, the 
                Secretary of Health and Human Services, the President 
                of the National Academy of Sciences, and the Chair of 
                the board of directors of the National Institute of 
                Building Sciences shall jointly conduct a comprehensive 
                study of the health effects of indoor residential mold 
                growth, using the most up-to-date scientific peer-
                reviewed medical literature.
                    (B) Contents.--The study conducted under 
                subparagraph (A) shall ascertain, among other things--
                            (i) detailed information about harmful or 
                        toxigenic mold, as well as any toxin or toxic 
                        compound such mold can produce;
                            (ii) the most accurate research-based 
                        methods of detecting harmful or toxigenic mold;
                            (iii) potential dangers of prolonged or 
                        chronic exposure to indoor residential mold 
                        growth;
                            (iv) the hazards involved with inadequate 
                        residential mold inspections and improper 
                        indoor residential mold remediation;
                            (v) the estimated current public health 
                        burden of new or exacerbated physical illness 
                        resulting from exposure to indoor residential 
                        mold, including its disproportionate impact on 
                        vulnerable communities, including children and 
                        seniors;
                            (vi) improved understanding of the 
                        different health symptomology that can result 
                        from exposure to mold in indoor residential 
                        environments;
                            (vii) ongoing surveillance of the 
                        prevalence of idiopathic pulmonary hemorrhage 
                        (AIPH) in infants; and
                            (viii) longitudinal studies on the effects 
                        of indoor old exposure in early childhood on 
                        the development of asthma and other respiratory 
                        illnesses.
                    (C) Availability.--Not later than the expiration of 
                the 3-year period beginning on the date of the 
                enactment of this Act, the results of the study 
                conducted under subparagraph (A) shall be submitted to 
                Congress and the President and made available to the 
                general public.
    (c) Mapping.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Secretary of Housing and Urban 
        Development shall, using the previous two years of inspection 
        data, establish a geographic information system mapping tool 
        that identifies areas which are impacted by a known presence of 
        indoor residential mold.
            (2) Required inclusions.--The Secretary shall include, as 
        part of the mapping tool--
                    (A) inspection documentation;
                    (B) management and occupancy reviews;
                    (C) transfers of budget authority for contracts 
                under section 8 of the United States Housing Act of 
                1937 (42 U.S.C. 1437f); and
                    (D) any additional information, as required by the 
                Secretary.
            (3) Updates.--The Secretary shall update the mapping tool 
        with the latest inspection data not less often than once per 
        year.
    (d) Public Information and Education Campaign.--
            (1) Requirement.--The Administrator of the Environmental 
        Protection Agency, the Secretary of Housing and Urban 
        Development, and the heads of any other relevant Federal 
        agencies, as determined by such Administrator and Secretary, 
        shall jointly develop and carry out a public information and 
        education campaign regarding indoor air quality and related 
        issues that provides information required under this section on 
        a recurring and annual basis through public outreach. The 
        campaign shall commence within 1 year after the date of the 
        enactment of this Act.
            (2) Topics.--The information and education campaign shall 
        include information on the dangers and prevention of indoor 
        residential moisture and mold, volatile organic compounds, 
        dust, smoking, pollution, indoor origins of smoke, including 
        cooking, and any other health risks, as determined by such 
        Administrator and Secretary.
            (3) Indoor residential mold information.--The information 
        and education campaign shall include, at minimum, the following 
        information regarding indoor residential mold:
                    (A) The conditions that facilitate indoor 
                residential moisture and mold growth.
                    (B) Guidelines for inspecting indoor residential 
                mold growth.
                    (C) Guidelines for remediating indoor residential 
                mold growth.
                    (D) The dangers and health risks of exposure to 
                indoor residential mold growth.
                    (E) The importance of ventilation and methods to 
                prevent moisture accumulation in indoor residential 
                environments.
                    (F) Any other information as determined appropriate 
                by the heads of the agencies referred to in paragraph 
                (1).
            (4) Modes of communication.--
                    (A) In general.--The public information and 
                education campaign shall provide education and 
                information through modes of communication that are 
                commonly utilized and able to be easily consumed by 
                relevant individuals or organizations, which shall 
                include communication through advertisements on public 
                transit in all 50 States and in territories and 
                possessions of the United States, and distribution of 
                the pamphlet developed pursuant to paragraph (9) as 
                required under such paragraph.
                    (B) Availability.--All education and information 
                that is part of the information and education campaign 
                shall be made publicly available on the websites of the 
                Environmental Protection Agency, the Department of 
                Housing and Urban Development, and any other applicable 
                Federal agencies.
            (5) Targeted groups.--The public information and education 
        campaign shall be designed to reach tenants, tenant 
        organizations working directly with tenants in project-based 
        rental assistance and other types of federally-assisted 
        housing, resident groups, landlords, health professionals, the 
        general public, homeowners, prospective homeowners, the real 
        estate industry, the home construction and renovation 
        industries, the health, property and casualty, and life 
        insurance industries, technical and vocational schools and 
        colleges, and other academic institutions.
            (6) Information specific to health professions.--The public 
        information and education campaign shall include information 
        about warning signs of mold and other indoor air exposure 
        pollutants and shall include education for health professions 
        on mold-related illness, including for health professions who 
        work with vulnerable populations and children in school or 
        daycare settings.
            (7) Coordination.--In developing and carrying out the 
        public information and education campaign, the heads of the 
        agencies referred to in paragraph (1) may coordinate with the 
        Ad Council.
            (8) Language.--All information provided under the public 
        information and education campaign--
                    (A) shall be provided in at least two languages, as 
                determined by the Secretary, based on the most common 
                languages spoken in the neighborhood, tribe, 
                municipality, State, or region, and may be provided in 
                additional languages based on the most common languages 
                spoken in the neighborhood, tribe, municipality, State, 
                or region, as determined by the Secretary; and
                    (B) shall be provided in language that is at a 
                sixth grade reading level and is easy to understand.
            (9) Pamphlet.--
                    (A) Requirement.--The Secretary of Housing and 
                Urban Development, in consultation with the Director of 
                the National Institutes of Health, the Administrator of 
                the Environmental Protection Agency, and the heads of 
                any other agencies the Secretary considers appropriate, 
                shall develop, publish, and revise, not less frequently 
                than every 5 years, a pamphlet regarding indoor 
                residential mold hazards.
                    (B) Content.--The pamphlet required under this 
                subsection shall--
                            (i) contain information regarding the 
                        health risks associated with exposure to indoor 
                        residential mold growth;
                            (ii) provide information on the hazards of 
                        indoor residential mold growth in federally-
                        assisted and federally-owned housing;
                            (iii) describe the risks of indoor 
                        residential mold exposure for persons residing 
                        in a dwelling with toxigenic mold;
                            (iv) provide information on approved 
                        methods for evaluating and reducing indoor 
                        residential mold growth and their effectiveness 
                        in identifying, reducing, eliminating, or 
                        preventing indoor residential mold growth;
                            (v) provide advice on how to obtain a list 
                        of persons certified to inspect or remediate 
                        indoor residential mold growth in the area in 
                        which the pamphlet is to be used;
                            (vi) include a statement that a risk 
                        assessment or inspection for indoor residential 
                        mold growth is recommended prior to the 
                        purchase, lease, or renovation of target 
                        housing;
                            (vii) include a statement that certain 
                        State and local laws impose additional 
                        requirements related to indoor residential mold 
                        growth in housing and provide a listing of 
                        Federal, State, and local agencies in each 
                        State, including address, telephone number, and 
                        electronic mail address, if available, that can 
                        provide information about applicable laws and 
                        available governmental and private assistance 
                        and financing;
                            (viii) provide information considered by 
                        the Administrator of the Environmental 
                        Protection Agency to be appropriate or 
                        necessary to promote awareness of the hazards 
                        posed by indoor residential mold;
                            (ix) include information on indoor air 
                        quality safety generally, including best 
                        practices when cooking, taking a shower or 
                        bath, and smoking cessation;
                            (x) be publicly available on the websites 
                        of the Department of Housing and Urban 
                        Development, the Environmental Protection 
                        Agency, and other applicable Federal agencies; 
                        and
                            (xi) include any other information 
                        considered by the Administrator of the 
                        Environmental Protection Agency to be 
                        appropriate or necessary.
            (10) Authorization of appropriations.--There is authorized 
        to be appropriated such sums as may be necessary to carry out 
        this subsection.
    (e) GAO Study on Health and Safety Concerns in Federally-Assisted 
Housing.--Not later than the expiration of the 3-year period beginning 
on the date of the enactment of this Act, the Comptroller General of 
the United States shall submit a report to the Congress analyzing and 
assessing the communication, as applicable, between public housing 
agencies, landlords, and tenants over resolving problems with the 
health, safety, or other issues of dwelling units that are federally 
subsidized and inspected through subpart G of part 5 of title 24, Code 
of Federal Regulations, landlord responsiveness regarding such issues, 
opportunities for improvement in such communications, and how tenants 
understand their rights and how they are responded to when issues 
arise, including protocols for responding to tenant complaints and 
tenant understanding of such processes. The report shall include 
recommendations for how to improve such communications and the physical 
quality of the housing stock for which such assistance is provided.

SEC. 305. IMPROVING PROTECTION FROM LEAD HAZARDS.

    (a) Definitions.--In this section--
            (1) the term ``covered housing'' means a dwelling unit 
        receiving project-based rental assistance or tenant-based 
        rental assistance under section 8 of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f); and
            (2) the term ``Department'' means the Department of Housing 
        and Urban Development.
    (b) Annual Risk Assessment and Report.--Not later than 1 year after 
the date of enactment of this Act, and every year thereafter, the 
Deputy Assistant Secretary for the Office of Multifamily Housing 
Programs of the Department, in collaboration with the Office of Lead 
Hazard Control and Healthy Homes of the Department, shall--
            (1) conduct a risk assessment of covered housing to 
        identify properties with the greatest risk of exposing children 
        under the age of 6 years old to lead hazards, including lead-
        based paint and lead service lines;
            (2) develop an action plan relating to remediation, 
        control, and safeguards to address lead hazards, including 
        lead-based paint and lead-service lines, in covered housing 
        identified in the risk assessment conducted under paragraph 
        (1), with priority given to those properties with children 
        under the age of 6 years old; and
            (3) submit to Congress a report on properties with covered 
        housing that have lead-based paint or lead service lines, 
        including the number of children under the age of 6 years old 
        living at these properties.
    (c) Uniform Physical Condition Standard Inspections.--In conducting 
uniform physical condition inspections in accordance with part 5 of 
title 24, Code of Federal Regulations, or any successor regulation, the 
Secretary shall include lead-based paint and lead service lines in the 
graded scoring as an exigent health and safety deficiency to ensure 
that--
            (1) lead-based paint and lead service lines are tracked at 
        each applicable property; and
            (2) the owners of those properties are held accountable for 
        remediating deficiencies.

SEC. 306. IMPROVING HOUSING FOR THE ELDERLY AND DISABLED.

    The Comptroller General of the United States shall, not later than 
1 year after the date of the enactment of this section, conduct a study 
that identifies options to remove barriers and improve housing for 
persons who are elderly or disabled, including any potential impacts of 
providing capital advances for--
            (1) the program for supportive housing for the elderly 
        under section 202 of the Housing Act of 1959; and
            (2) the program for supportive housing for persons with 
        disabilities under section 811 of the Cranston-Gonzalez 
        National Affordable Housing Act.

                       TITLE IV--GOOD GOVERNANCE

SEC. 401. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FROM HOUSING 
              REGULATORS.

    (a) Testimony by Secretary.-- Section 7 of the Department of 
Housing and Urban Development Act (42 U.S.C. 3535) is amended by adding 
at the end the following new subsection:
    ``(u) Annual Testimony.--The Secretary shall appear before the 
Committee on Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate at an 
annual hearing and present testimony regarding the operations of the 
Department during the preceding year, including regarding the following 
topics:
            ``(1) The physical condition of all public housing and 
        other housing assisted by the Department.
            ``(2) The financial health of the mortgage insurance funds 
        of the FHA.
            ``(3) Oversight by the Department of grantees and sub-
        grantees engaging in waste, fraud, and abuse.
            ``(4) Ongoing activities of the Department, as 
        appropriate.''.
    (b) Testimony by Inspector General.--Not later than October 1 of 
each year, the Inspector General of the Department of Housing and Urban 
Development shall appear before the Committee on Financial Services of 
the House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate and present testimony on the Office of 
Inspector General's--
            (1) efforts to detect and prevent fraud, waste, and abuse;
            (2) ability to conduct and supervise audits, 
        investigations, and reviews;
            (3) actions to identify opportunities for the programs of 
        the Department of Housing and Urban Development to progress and 
        succeed; and
            (4) ongoing activities regarding any such additional work, 
        as appropriate.

SEC. 402. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FOR GOVERNMENT 
              GUARANTEED OR INSURED MORTGAGE PROGRAMS.

    On an annual basis, the following individuals shall testify before 
the Committee on Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Representatives on 
mortgage loans guaranteed or insured by the Federal Government:
            (1) The President of the Government National Mortgage 
        Association.
            (2) The Federal Housing Commissioner.
            (3) The Administrator of the Rural Housing Service.

SEC. 403. TESTIMONY AND REPORT FROM UNITED STATES INTERAGENCY COUNCIL 
              ON HOMELESSNESS.

    Section 203(a) of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11313(a)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Homeless Emergency Assistance and 
                Rapid Transition to Housing Act of 2009'' and inserting 
                ``Revitalizing America's Housing Act''; and
                    (B) by striking ``update such plan annually'' and 
                inserting the following: ``submit to the President and 
                Congress a report every year thereafter that includes--
                    ``(A) the status of completion of the plan;
                    ``(B) any modifications that were made to the plan 
                and the reasons for those modifications; and
                    ``(C) an estimate of when homelessness will be 
                ended;'';
            (2) by redesignating paragraphs (10) through (13) as 
        paragraphs (11) through (14), respectively;
            (3) by redesignating the second paragraph (9) (relating to 
        collecting and disseminating information) as paragraph (10);
            (4) in paragraph (13), as so redesignated, by striking 
        ``and'' at the end;
            (5) in paragraph (14), as so redesignated, by striking the 
        period at the end and inserting ``; and''; and
            (6) by adding at the end the following:
            ``(15) testify annually before Congress.''.

SEC. 404. REPORT DETAILING NYCHA COMPLIANCE WITH AND HUD OVERSIGHT OF 
              2019 AGREEMENT.

    (a) Congressional Findings.--The Congress finds that--
            (1) the New York City Housing Authority (in this section 
        referred to as the ``Authority'') is the largest housing 
        authority in the United States, providing housing for over 
        520,000 residents in over 177,000 apartments in the City of New 
        York (in this section referred to as the ``City'');
            (2) the Authority is a public housing agency that receives 
        Federal financial assistance from the Department of Housing and 
        Urban Development (in this section referred to as the 
        ``Department'') to administer its public housing program;
            (3) the Authority is required to, among other things, 
        provide decent, safe, and sanitary housing for the public 
        housing residents of the City and comply with Federal law 
        protecting children from the hazards of lead poisoning;
            (4) on June 11, 2018, the United States filed a complaint 
        in the United States District Court for the Southern District 
        of New York (in this section referred to as the ``Complaint''); 
        which set forth the findings of the United States 
        investigation, alleging, among other things, that the Authority 
        had--
                    (A) routinely failed to comply with lead-based 
                paint safety regulations;
                    (B) failed to provide decent, safe, and sanitary 
                housing, including with respect to the provision of 
                heat and elevators and the control and treatment of 
                mold and pests; and
                    (C) repeatedly misled the Department through false 
                statements and deceptive practices;
            (5) in a Consent Decree executed June 11, 2018, the 
        Authority made admissions regarding, among other things, 
        deficiencies in physical conditions with respect to lead, mold, 
        heating, elevators and pests and made untrue statements to the 
        Department regarding the conditions of the Authority's 
        properties and practices with regard to Public Housing 
        Assessment System inspections;
            (6) based on the Authority's misconduct as detailed in the 
        Complaint, on January 31, 2019, the Secretary of Housing and 
        Urban Development (in this section referred to as the 
        ``Secretary'') declared that the Authority is in substantial 
        default within the meaning of section 6(j)(3)(A) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437d(j)(3)(A));
            (7) the Department did not take possession of the Authority 
        or appoint a receiver, but instead entered into a voluntary 
        agreement between the Authority, the Department, and the City 
        on January 31, 2019, under which the Authority agreed to remedy 
        noted deficiencies subject to the oversight of a Monitor 
        appointed by the City;
            (8) as of the date of the enactment of this Act, the 
        Authority has still fully not complied with the agreement, 
        including the remedying of deficiencies or compliance with its 
        obligations under Federal law;
            (9) the Department and the United States Attorney's Office 
        for the Southern District of New York have sought to extend the 
        term of a Monitor over the Authority for an additional five 
        years beginning in 2024;
            (10) the residents of housing provided by the Authority 
        should not be required to wait five additional years for the 
        Authority to provide decent, safe, and sanitary housing 
        conditions, as is the Authority's most basic and necessary 
        function under the law; and
            (11) the Congress believes that it must provide additional 
        oversight over the Authority, the Department, the City, and the 
        Monitor in order to compel the Authority to fix the appalling 
        conditions and other issues that lead to a declaration of 
        substantial default under section 6(j)(3)(A) of the United 
        States Housing Act of 1937.
    (b) Investigation and Report to Congress.--
            (1) Investigation.--The Inspector General of the Department 
        of Housing and Urban Development shall conduct an investigation 
        of the Authority, which shall include at a minimum--
                    (A) determining the status of the New York City 
                Housing Authority's compliance with the agreement 
                entered into between the Authority, the Department, and 
                the City on January 31, 2019, including specific areas 
                of deficiency and progress towards compliance;
                    (B) conducting a review of actions taken by the 
                Monitor over the Authority pursuant to such Agreement, 
                including any gaps in oversight by the Monitor;
                    (C) conducting a survey of the physical conditions 
                of housing provided by the Authority for the City's 
                residents;
                    (D) conducting an examination of any waste, fraud, 
                abuse and violations of Federal law committed by 
                employees or contractors of the Authority; and
                    (E) identifying other priority issues and areas, as 
                deemed necessary and appropriate by the Inspector 
                General.
            (2) Report.--Not later than the expiration of the 180-day 
        period beginning on the date of the enactment of this Act, the 
        Inspector General shall provide to the Committee on Financial 
        Services of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate a report 
        setting forth the findings of its investigation, a summary of 
        actions the Department may take to compel the Authority to 
        remedy deficiencies, and any other recommendations of the 
        Inspector General.

SEC. 405. FHA REPORTING REQUIREMENTS ON SAFETY AND SOUNDNESS.

    (a) Monthly Reporting on Mutual Mortgage Insurance Fund Capital 
Ratio.--Section 202(a) of the National Housing Act (12 U.S.C. 1708(a)) 
is amended by adding at the end the following:
            ``(8) Other required reporting.--The Secretary shall--
                    ``(A) submit to Congress monthly reports on the 
                capital ratio required under section 205(f)(2); and
                    ``(B) notify Congress as soon as practicable after 
                the Fund falls below the capital ratio required under 
                section 205(f)(2).''.
    (b) First-Time Homebuyers.--
            (1) Definitions.--In this section--
                    (A) the terms ``consumer report'' has the meaning 
                given the term in section 603 of the Fair Credit 
                Reporting Act (15 U.S.C. 1681a); and
                    (B) the term ``Federally backed mortgage loan'' has 
                the meaning given the term in section 4022 of the CARES 
                Act (15 U.S.C. 9056).
            (2) Definition of first-time homebuyer.--For purposes of 
        qualifying for a Federally backed mortgage loan for which a 
        consumer report is furnished to a creditor by a consumer 
        reporting agency described in section 603(p) of the Fair Credit 
        Reporting Act (15 U.S.C. 1681a(p)), a first-time homebuyer 
        shall be defined as a borrower whose consumer report does not 
        indicate that the borrower has or had a loan with a consumer 
        purpose that is secured by a 1- to 4-unit residential real 
        property.
    (c) GAO Study on Sustainable Homeownership.--Not later than 180 
days after the date of enactment of this Act, the Comptroller General 
of the United States shall conduct a study and submit to Congress a 
report on--
            (1) the value for the Federal Housing Administration of 
        defining what is sustainable homeownership in way that 
        considers borrower default, refinancing to a non-insured 
        mortgage product, paying off a mortgage loan and transitioning 
        back to renting, and other factors that demonstrate whether 
        insurance provided under title II of the National Housing Act 
        (12 U.S.C. 1707 et seq.) has successfully served a borrower, 
        including for first-time homebuyers as defined in subsection 
        (b)(2); and
            (2) the feasibility of the Federal Housing Administration 
        developing a scorecard using the metrics described in paragraph 
        (1) to measure borrower performance and reporting the scorecard 
        data to Congress.

SEC. 406. COMBATTING SQUATTING.

    (a) Congressional Findings.--The Congress finds that--
            (1) unlawfully entering a property without the permission 
        of the property owner and residing in that property for 
        consecutive days without the permission of the property owner 
        and without the payment of rent or a rental contract agreed to 
        by the property owner can be defined as ``squatting'' and 
        should not confer any special status as a tenant or lawful 
        occupant of the property;
            (2) local law enforcement should take actions to 
        expeditiously remove from a property any persons or persons 
        engaging in squatting and should prosecute such actions as 
        prescribed by local law;
            (3) Federal Government benefits, including loans, loan 
        guarantees, subsidies, and tax credits, should not be used to 
        reinforce, condone, or otherwise incentivize squatting; and
            (4) real estate collateral securing a government or 
        government-sponsored enterprise loan, or subject to a loan 
        guarantee, mortgage insurance or other Federal mortgage support 
        program must be protected from persons engaging in squatting as 
        it creates undue risks for the value of such property.
    (b) Prohibition on CDBG Funding.--Section 104 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5304) is amended by adding 
at the end the following:
    ``(n) Withholding of Funds for Jurisdictions That Permit 
Squatting.--
            ``(1) Prohibition.--The Secretary shall, by regulation--
                    ``(A) prohibit the allocation and provision of 
                funds under this title for any unit of general local 
                government that permits squatting or confers special 
                status for rights of tenancy for a person or persons 
                engaging in the practice of squatting; and
                    ``(B) provide for--
                            ``(i) units of general local government to 
                        take corrective actions to remedy the 
                        applicability of the prohibition under 
                        subparagraph (A) to such unit of general local 
                        government; and
                            ``(ii) certification by the Secretary upon 
                        a determination that such actions taken by a 
                        unit of general local government are sufficient 
                        for the unit of general local government to 
                        receive funds under this title.
            ``(2) Public notice.--The Secretary shall make publicly 
        available for each fiscal year a list of all units of general 
        local government that are prohibited by paragraph (1) from 
        receiving funds under this title and the justification for 
        inclusion in the list of each such unit of general local 
        government.
            ``(3) Squatting.--For purposes of this subsection, the term 
        `squatting' means the practice of entering a property without 
        the permission of the property owner and residing in that 
        property for 14 or more consecutive days without the permission 
        of the property owner and without the payment of rent or a 
        rental contract agreed to by the property owner.''.
    (c) Prohibition on Federal Mortgage Support.--
            (1) Prohibition.--No Federal support may be provided for 
        any loan that is secured by a first or subordinate lien on 
        residential real property (including individual units of 
        condominiums and cooperatives) and designed principally for the 
        occupancy of from 1- to 4-families if the property securing 
        such loan is located in a unit of general local government that 
        is, at such time, prohibited from receiving funds under title I 
        of the Housing and Community Development Act of 1974 by section 
        104(n)(1)(A) of such Act.
            (2) Regulations.--The heads of the covered agencies shall 
        jointly develop, by regulations issued not later than 90 days 
        after the date of the enactment of this Act, guidelines for 
        such covered agencies to carry out this subsection.
            (3) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    (A) Covered agency.--The term ``covered agency'' 
                means--
                            (i) the Department of Housing and Urban 
                        Development;
                            (ii) the Federal Housing Finance Agency;
                            (iii) the Department of Veterans Affairs; 
                        and
                            (iv) the Department of Agriculture.
                    (B) Federal support.--The term ``Federal support'' 
                means, with respect to a loan--
                            (i) insurance of the loan by the Federal 
                        Housing Administration under title II of the 
                        National Housing Act (12 U.S.C. 1707 et seq.);
                            (ii) insurance of the loan under section 
                        255 of the National Housing Act (12 U.S.C. 
                        1715z-20);
                            (iii) guarantee of the loan under section 
                        184 or 184A of the Housing and Community 
                        Development Act of 1992 (12 U.S.C. 1715z-13a, 
                        1715z-13b);
                            (iv) guarantee or insurance of the loan by 
                        the Department of Veterans Affairs;
                            (v) guarantee or insurance of the loan by 
                        the Department of Agriculture;
                            (vi) making of the loan by the Department 
                        of Agriculture; or
                            (vii) purchase or securitization of the 
                        loan by the Federal Home Loan Mortgage 
                        Corporation or the Federal National Mortgage 
                        Association.
                    (C) Squatting.--The term ``squatting'' means the 
                practice of entering a property without the permission 
                of the property owner and residing in that property for 
                14 or more consecutive days without the permission of 
                the property owner and without the payment of rent or a 
                rental contract agreed to by the property owner.

SEC. 407. REALLOCATION OF VOUCHER FUNDING.

    Section 8(o) of the United States Housing Act of 1937 is amended by 
adding at the end the following:
            ``(24) Reallocation of amounts.--The Secretary shall, at 
        the end of each fiscal year--
                    ``(A) recapture from each public housing agency any 
                amounts provided to such public housing agency for 
                tenant-based assistance under paragraph (1)(A) that 
                such public housing agency did not obligate during such 
                fiscal year; and
                    ``(B) provide amounts recaptured under subparagrah 
                (A) to public housing agencies that used all of the 
                amounts provided to them for tenant-based assistance 
                under paragraph (1)(A).''.

                    TITLE V--REGULATORY FLEXIBILITY

SEC. 501. AUTHORIZATION OF MOVING TO WORK PROGRAM.

    (a) Program Reforms.--Section 204 of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1996 (42 U.S.C. 1437f note) is amended--
            (1) in the section heading, by striking ``demonstration'' 
        and inserting ``program'';
            (2) by striking subsection (a) and inserting the following:
    ``(a) Purposes.--The purposes of the program under this section are 
as follows:
            ``(1) Economic independence.--To develop measures to 
        promote economic independence for families with children whose 
        head of household is working, seeking work, or preparing for 
        work, for able-bodied individuals, and for persons with 
        disabilities who are able to work on a limited basis, to obtain 
        employment and become economically independent, by 
        participating in job training, educational programs, or other 
        supportive services and programs that assist in meeting such 
        goal.
            ``(2) Flexibility and cost-effectiveness.--To give public 
        housing agencies and the Secretary of Housing and Urban 
        Development the flexibility to design and implement various 
        approaches for providing and administering housing assistance 
        that reduce cost and achieve greater cost effectiveness in 
        Federal expenditures.
            ``(3) Housing choice.--To increase housing choices for low-
        income families.'';
            (3) in subsection (b)--
                    (A) by striking ``(b) Program Authority.--The 
                Secretary'' and inserting the following:
    ``(b) Program Authority.--
            ``(1) In general.--The Secretary'';
                    (B) in the first sentence, by striking ``conduct a 
                demonstration program'' and all that follows through 
                ``Indian housing program and'' and inserting ``carry 
                out a program under this section under which public 
                housing agencies administering the public housing 
                program or'';
                    (C) by inserting after the first sentence the 
                following: ``There shall be no limitation on the number 
                of public housing agencies that may participate in the 
                program under this section.'';
                    (D) by striking ``The Secretary shall'' and all 
                that follows through ``demonstration.'' and inserting 
                the following:
            ``(2) Identification of replicable models.--The Secretary 
        shall provide training and technical assistance under the 
        program and conduct detailed evaluations of various agencies to 
        identify replicable program models promoting the purposes of 
        the program.'';
                    (E) by striking ``Under the demonstration'' and 
                inserting the following:
            ``(3) Combination of assistance.--Under the program under 
        this section''; and
                    (F) by striking ``operating assistance provided 
                under section 9 of the United States Housing Act of 
                1937, modernization assistance provided under section 
                14'' and inserting ``amounts provided to the agency 
                from the Operating Fund under section 9(e) of the 
                United States Housing Act of 1937, amounts provided to 
                the agency from the Capital Fund under section 9(d)'';
            (4) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``demonstration'' and inserting ``program 
                under this section'';
                    (B) in paragraph (1), by striking ``9, and 14'' and 
                inserting ``9(d), and 9(e)'';
                    (C) in paragraph (3)--
                            (i) in subparagraph (A), by striking 
                        ``demonstration'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``self-
                                sufficiency'' and inserting ``economic 
                                independence''; and
                                    (II) by striking ``purpose of this 
                                demonstration'' and inserting ``purpose 
                                of the program under subsection 
                                (a)(1)'';
                            (iii) in subparagraph (D), by striking 
                        ``demonstration'' and inserting ``program under 
                        this section;'';
                            (iv) in subparagraph (E), by striking 
                        ``demonstration program'' and inserting 
                        ``program under this section'';
                            (v) by redesignating subparagraphs (A), 
                        (B), (C), (D), and (E) as subparagraphs (B), 
                        (C), (D), (G), and (H), respectively;
                            (vi) by inserting before subparagraph (B), 
                        as so redesignated, the following:
                    ``(A) actions to be taken under the proposed 
                program to achieve the purposes of the program under 
                paragraphs (1), (2), and (3) of subsection (a);''; and
                            (vii) by inserting after subparagraph (D), 
                        as so redesignated, the following:
                    ``(E) hardship exceptions consistent with the 
                purposes under subsection (a) under which tenants may 
                be temporarily exempted from compliance with the 
                program operated by the agency in the event of 
                extenuating circumstances preventing such compliance 
                and a process that provides tenants with recourse to a 
                speedy determination regarding such an exception and 
                makes available the contents and results of such a 
                determination available to the public and the board of 
                directors or other governing body on request of the 
                tenant concerned or the director or other head official 
                of the agency;
                    ``(F) providing assisted families and participants 
                in the program operated by the agency with an informal 
                administrative hearing or grievance process, prior to 
                any eviction or termination of assistance, which 
                process shall make the content and determination of the 
                hearing available to the public and the board of 
                directors or other governing body on request of the 
                tenant concerned or the director or other head official 
                of the agency;''; and
                    (D) in paragraph (4), by striking ``demonstration'' 
                and inserting ``proposed program'';
            (5) in subsection (d)--
                    (A) by striking ``(d) Selection.--In selecting 
                among applications, the Secretary shall take into 
                account the'' and inserting the following:
    ``(d) Applications for Participation.--
            ``(1) Submission; standards for participation.--The 
        Secretary shall provide for public housing agencies to submit 
        applications for participation in the program under this 
        section and shall establish, and make public, standards and 
        requirements for participation that further the purposes of 
        this program set forth in subsection (a), which shall--
                    ``(A) provide that all public housing agencies not 
                designated as troubled pursuant to part 902 or subpart 
                B of part 985, Code of Federal Regulations, at any time 
                during the most recent 2 fiscal years are invited to 
                submit applications for consideration;
                    ``(B) provide that participation of a public 
                housing agency, upon approval, shall be for a period 
                not shorter than 10 years;
                    ``(C) include a common set of budget metrics for 
                use under the program that allow for comparison of the 
                performance of different public housing agencies under 
                the program;
                    ``(D) require that each public housing agency 
                include in its application--
                            ``(i) a list of innovative proposals to be 
                        carried out under the program that are designed 
                        to reduce the cost of, and increase the cost-
                        efficiency of, housing provided in connection 
                        with the program and metrics to assess the 
                        progress of the agency toward such goals; and
                            ``(ii) a list of innovative manners in 
                        which the public housing agency will use the 
                        authorities under the program to assist 
                        families, goals regarding such activities to 
                        accomplish on an annual basis, and metrics to 
                        assess the progress of the agency toward such 
                        goals; and
                    ``(E) include a plan for using, to the greatest 
                extent feasible, electronic data-matching for income 
                verification services.
            ``(2) Determination and notification.--
                    ``(A) Review and determination.--Upon receipt of an 
                application for participation in the program under this 
                section, the Secretary shall provide for review such 
                application by a selection panel comprised of Federal 
                officials and employees and established by the 
                Secretary for such purpose. Based on such review, such 
                selection panel shall make a determination of whether 
                to approve such agency for participation in the program 
                under this section, based on the criteria under 
                paragraph (4).
                    ``(B) Notification.--Upon making a determination 
                pursuant to subparagraph (A), the selection panel shall 
                notify the public housing agency, the Secretary, and 
                the governments for any counties and municipalities in 
                which the jurisdiction of the public housing agency is 
                located of such determination. In the case of 
                disapproval of an application, such notice shall 
                include a statement specifying the reasons for such 
                disapproval.
            ``(3) Transition.--
                    ``(A) Numerical limitation.--
                            ``(i) In general.--The Secretary shall 
                        review and process such applications as to 
                        enable the transition of not less than 25 
                        public housing agencies per year to the program 
                        under this section (subject to approvable 
                        applications), until such time as there are not 
                        25 public housing agencies whose applications 
                        merit approval.
                            ``(ii) Reserved spots for small and rural 
                        phas.--Of the applications of public housing 
                        agencies approved in each year pursuant to 
                        clause (i), not less than 10 shall be 
                        applications of public housing agencies that 
                        administer, in the aggregate, fewer than 6,000 
                        vouchers for rental assistance under section 8 
                        of the United States Housing Act of 1937 (42 
                        U.S.C. 1437f) and public housing dwelling 
                        units, except that if for any year the 
                        Secretary receives fewer than 10 applications 
                        by public housing agencies described in this 
                        clause that merit approval, the requirement 
                        under this clause shall apply for such year 
                        only to the extent of the number of such 
                        approvable applications received.
                            ``(iii) Treatment of new mtw agencies.--Any 
                        agency that is newly transitioned under this 
                        subparagraph to participation in the program as 
                        in effect pursuant to the amendments made by 
                        this Act shall count toward fulfillment of the 
                        numerical limitation in clause (i), 
                        notwithstanding the authority under section 239 
                        of the Transportation, Housing and Urban 
                        Development, and Related Agencies 
                        Appropriations Act, 2016 (division L of Public 
                        Law 114-113) or any other provision of law 
                        other than this section authorizing 
                        participation of new agencies.
                    ``(B) Contract revisions.--The Secretary shall, 
                from time to time and in consultation with public 
                housing agencies, amend contracts for participation by 
                agencies in the program under this section as may be 
                necessary, based on experiences of agencies that have 
                participated in the program, to correct mistakes and 
                better achieve the goals of this program set forth in 
                subsection (a).
                    ``(C) Renewal of certification.--
                            ``(i) In general.--The Secretary shall 
                        provide that upon expiration of a contract for 
                        participation by a public housing agency in the 
                        program under this section, to continue 
                        participating in the program the agency shall 
                        be required to recertify with the Secretary for 
                        such renewed participation. The standards and 
                        requirements applicable to applications for 
                        initial participation in the program shall also 
                        apply to applications for renewed participation 
                        in the program.
                            ``(ii) Treatment of numerical limitation.--
                        An agency approved for continued participation 
                        in the program pursuant to recertification 
                        under this subparagraph shall not count toward 
                        fulfillment of the numerical limitation in 
                        subparagraph (A)(i).
            ``(4) Criteria.--The Secretary shall establish criteria for 
        approval of applications of public housing agencies for 
        participation in the program under this section, which shall 
        provide for approval of applications that are reasonably 
        designed to carry out the purposes of the program under 
        subsection (a). Such criteria shall take into consideration the 
        capacity and'';
                    (B) by striking ``each'' and inserting ``the'';
                    (C) by striking ``a program under the 
                demonstration'' and inserting ``the proposed program in 
                the application''; and
                    (D) by striking ``an agency'' and inserting ``the 
                agency'';
            (6) in subsection (e)--
                    (A) in paragraph (1), by striking ``this 
                demonstration'' and inserting ``the program under this 
                section''; and
                    (B) in paragraph (2), by striking ``demonstration'' 
                and inserting ``program under this section'';
            (7) in subsection (f), by striking ``section 9, or pursuant 
        to section 14 by a public housing agency participating in the 
        demonstration under this part'' and inserting ``of the United 
        States Housing Act of 1937, or provided from the Operating Fund 
        under section 9(e) or from the Capital Fund under section 9(d) 
        of such Act, by a public housing agency participating in the 
        program under this section'';
            (8) in subsection (g)--
                    (A) in paragraph (1), by inserting ``, including 
                performance in achieving each of the purposes of the 
                program specified in subsection (a)'';
                    (B) in paragraph (2)--
                            (i) in the first sentence--
                                    (I) by inserting ``, and including 
                                such content, as shall be'' before 
                                ``specified by the Secretary''; and
                                    (II) by inserting ``, but not less 
                                often than annually'' before the period 
                                at the end; and
                            (ii) by striking subparagraph (C) and 
                        inserting the following:
                    ``(C) describe and analyze the effects of the 
                program of the agency and the assisted activities under 
                such program in addressing and achieving the objectives 
                of the program under this section and each of the 
                purposes specified in subsection (a), including the 
                effects of the program on--
                            ``(i) the number of new families the agency 
                        has been able to assist from the waiting lists 
                        for housing assistance that is administered by 
                        the agency, including vouchers for rental 
                        assistance under section 8(o) of the United 
                        States Housing Act of 1937 (42 U.S.C. 1437f(o)) 
                        and dwelling units in public housing and in 
                        housing assisted with project-based section 8 
                        assistance, as a result of the flexibility of 
                        funds and achievement of economic independence;
                            ``(ii) the cost and annual change, per 
                        family participating in the program, of 
                        providing housing assistance referred to in 
                        clause (i) that is administered by the agency;
                            ``(iii) any cost savings and additional 
                        housing resulting from the program;
                            ``(iv) the household incomes, and changes 
                        in such incomes, of members of families 
                        participating in the program who are not exempt 
                        from work requirements; and
                            ``(v) such other factors as the Secretary 
                        considers appropriate.'';
                    (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (5) and (6); and
                    (D) by inserting after paragraph (2) the following 
                new paragraphs:
            ``(3) Annual budget plan.--
                    ``(A) Requirement.--Each agency shall submit 
                annually to the Secretary, together with the report 
                under paragraph (2), a budget plan for the program of 
                the agency for the upcoming year and shall make such 
                budget plan publicly available.
                    ``(B) Form and metrics.--Each annual budget plan 
                shall be set forth in a standard form, prescribed by 
                the Secretary and shall utilize a common budget metric 
                that allows for comparison of the budget plans of all 
                public housing agencies participating in the program.
                    ``(C) Content.--Each annual budget plan shall 
                include such content as the Secretary shall specify, 
                which shall include--
                            ``(i) a description and explanation of all 
                        new rules and policy changes adopted by the 
                        agency in accordance with this section and the 
                        program under this section and, with respect to 
                        such new rules and policy changes--
                                    ``(I) a description of the effect 
                                such rules and changes will have on the 
                                operation of the agency as compared to 
                                the preceding year and as compared to 
                                the operations of the agency other than 
                                under the program under this section;
                                    ``(II) a description of the extent 
                                to which such rules and changes helped 
                                to achieve the annual goals identified 
                                in the public housing agency's 
                                application pursuant to subsection 
                                (d)(1)(E) and, in the case of any such 
                                goals not achieved, a description of 
                                the extent to which such goals were not 
                                achieved and the reasons for such 
                                failure; and
                                    ``(III) whether the adoption of 
                                such new rules and policy changes 
                                required an adjustment in the annual 
                                goals identified in the public housing 
                                agency's application pursuant to 
                                subsection (d)(1);
                            ``(ii) a plan for all capital assets and 
                        anticipated construction and rehabilitation 
                        activities of the public housing agency in the 
                        upcoming year and a description of whether and 
                        how such activities are authorized and assisted 
                        under the program under this section; and
                            ``(iii) assurances satisfactory to the 
                        Secretary that such plan will conform with all 
                        applicable provisions of the Civil Rights Act 
                        of 1964 (42 U.S.C. 2000d et seq.), the Fair 
                        Housing Act (42 U.S.C. 3601 et seq.), the 
                        Rehabilitation Act of 1973 (29 U.S.C. 701 et 
                        seq.), and the Americans with Disabilities Act 
                        of 1990 (42 U.S.C. 12101 et seq.).
            ``(4) Public and resident participation.--
                    ``(A) Notification of residents.--Each public 
                housing agency shall annually hold a meeting to notify 
                all assisted families participating in the program of 
                the public housing agency of the contents of the report 
                under paragraph (2) for such year and budget plan under 
                paragraph (3) for such year and impacts on such 
                assisted families. Any public housing agency that 
                assists, in the aggregate, more than 50,000 families or 
                assists families in multiple counties shall hold as 
                many meetings as necessary to provide each assisted 
                family a good-faith opportunity to attend such a 
                meeting.
                    ``(B) Public comment.--Each annual report under 
                paragraph (2) and annual plan under paragraph (3) 
                shall--
                            ``(i) be made available for inspection and 
                        public comment 30 days before the meeting 
                        required by subparagraph (A) regarding such 
                        plan or report; and
                            ``(ii) be approved in a public meeting of 
                        the board of directors or other governing body 
                        of the public housing agency before submission 
                        to the Secretary.
                    ``(C) Public availability.--Each annual report 
                under paragraph (2) and annual plan under paragraph (3) 
                shall, upon submission to the Secretary, be made 
                publicly available and shall include all comments 
                provided pursuant to subparagraph (B).'';
            (9) in subsection (h)--
                    (A) in paragraph (1), by striking ``demonstration'' 
                and inserting ``program under this section''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Review.--The Secretary shall annually review the 
        activities of each public housing agency participating in the 
        program under this section and, based on such review and the 
        information submitted by the agency pursuant to subsection (g), 
        determine--
                    ``(A) the impact and effectiveness of the public 
                housing agency's program and activities in achieving 
                each of the purposes of the program specified in 
                subsection (a), including an assessment of such impact 
                and effectiveness using the common set of budget 
                metrics established pursuant to subsection (d)(1)(D);
                    ``(B) the progress of the public housing agency 
                toward meeting the goals identified in the public 
                housing agency's application pursuant to subsection 
                (d)(1)(E), using the metrics identified in the public 
                housing agency's application pursuant to such 
                subsection; and
                    ``(C) the extent of compliance by the public 
                housing agency with the requirements of the program 
                under this section and, in determining such extent of 
                compliance, shall take into consideration the unique 
                characteristics of the public housing agency.
            ``(3) Verification of accuracy.--In assessing information 
        submitted by public housing agencies pursuant to subsection (g) 
        and in reviewing such information and making determinations 
        pursuant to paragraph (2) of this subsection, the Secretary 
        shall carry out control activities and procedures designed to 
        verify the accuracy of such information, which shall include 
        auditing a representative sample of such information using 
        standard statistical methods.
            ``(4) Continued participation.--The Secretary shall not 
        terminate the participation of any public housing agency in the 
        program under this section unless the Secretary finds that the 
        agency--
                    ``(A) is in material default of the conditions and 
                obligations under the agreement entered into between 
                the agency and the Secretary providing for such 
                participation;
                    ``(B) as demonstrated in its reports under 
                subsection (g)(2) and its annual budget plans under 
                subsection (g)(3), has persistently failed to meet the 
                goals identified in its application, and the reasons or 
                circumstances specified in the public housing agency's 
                reports and plans for such failure are not sufficient 
                to justify the continued failure;
                    ``(C) has misused or misappropriated funds;
                    ``(D) has failed to make a good faith effort to 
                carry out the purposes of the program specified in 
                subsection (a); or
                    ``(E) has failed to cure a material deficiency in 
                performance after notice and an opportunity to correct 
                the deficiency.
            ``(5) Corrective action program.--The Secretary shall carry 
        out a program--
                    ``(A) to identify public housing agencies 
                participating in the program under this section that 
                are at risk of termination of such participation 
                pursuant to paragraph (6);
                    ``(B) to consult with such public housing agencies 
                regarding actions that may be taken to avoid such 
                termination;
                    ``(C) to establish goals and timelines for such 
                corrective actions; and
                    ``(D) to provide appropriate technical assistance 
                designed to facilitate such actions and avoid such 
                termination.
            ``(6) Termination of participation.--Any public housing 
        agency whose participation in the program under this section is 
        terminated shall be subject to the provisions of the United 
        States Housing Act of 1937 (42 U.S.C. 1437 et seq.) and all 
        other provisions of law applicable to public housing agencies 
        not participating in the program, except that the Secretary 
        shall provide a transition period, that begins upon such 
        termination and is not shorter than 18 months, for such public 
        housing agencies to come into compliance with such laws.
            ``(7) Reports to congress.--Not later than the expiration 
        of the 5-year period beginning on the date of the enactment of 
        this Act, and not later than the expiration of each successive 
        5-year period thereafter, the Secretary shall submit a report 
        to the Congress regarding the program under this section and 
        the results of the reviews conducted under paragraph (2), which 
        shall--
                    ``(A) evaluate the programs carried out by public 
                housing agencies participating in the program, 
                including with respect to each of the purposes 
                specified in subsection (a); and
                    ``(B) include findings and recommendations for 
                appropriate legislative changes to the program.
            ``(8) GAO reviews and reports.--Not later than 180 days 
        after the date of enactment of this Act, and not less 
        frequently than every 8 years thereafter, the Comptroller 
        General of the United States shall--
                    ``(A) conduct and complete a review of the program 
                under this section, which shall include examination and 
                analysis of the implementation of the program and 
                identification of any shortcomings and any means for 
                improving the program; and
                    ``(B) submit to the Congress a report regarding the 
                review, which shall set forth a detailed description of 
                such implementation, any shortcomings of the program 
                identified, and recommendations for improving the 
                program.'';
            (10) in subsection (i)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``section 14 of the United States Housing Act 
                of 1937 for fiscal years 1996, 1997, and 1998'' and 
                inserting ``the Capital Fund under section 9(d) of the 
                United States Housing Act of 1937 in each fiscal 
                year''; and
                    (B) in paragraph (1)(B), by striking ``up to 10''; 
                and
            (11) by striking subsection (j).
    (b) Treatment of Participating Agencies.--
            (1) Continuation of participation.--This section and the 
        amendments made by this section shall not affect the status of 
        any public housing agency that, as of the date of the enactment 
        of this Act, is participating in the Moving to Work Program 
        under section 204 of the Departments of Veterans Affairs and 
        Housing and Urban Development, and Independent Agencies 
        Appropriations Act, 1996 (42 U.S.C. 1437f note), as such a 
        participating agency.
            (2) Election.--Any public housing agency referred to in 
        paragraph (1) may elect--
                    (A) to continue participation in the Program under 
                section 204 of the Departments of Veterans Affairs and 
                Housing and Urban Development, and Independent Agencies 
                Appropriations Act, 1996 (42 U.S.C. 1437f note) under 
                the terms of the agreement entered into between the 
                agency and the Secretary providing for such 
                participation until the date of the expiration of such 
                agreement; or
                    (B) at any time before date of the expiration of 
                such agreement, to transition to participation under 
                the program under such section 204, as amended by this 
                Act.
            (3) Conversion to reformed program.--
                    (A) In general.--Except as provided in subparagraph 
                (B) of this paragraph, any public housing agency that 
                elects pursuant to paragraph (2)(A) of this subsection 
                to continue participation in the Program under section 
                204 of the Departments of Veterans Affairs and Housing 
                and Urban Development, and Independent Agencies 
                Appropriations Act, 1996 (42 U.S.C. 1437f note) shall, 
                upon the expiration of the agreement referred to in 
                such paragraph, be considered to have been approved for 
                participation in the Program under such section 204, as 
                amended by this Act, and the Secretary of Housing and 
                Urban Development shall provide for the transition of 
                the agency to participation under the Program under 
                such section as so amended.
                    (B) Inapplicability.--Subparagraph (A) shall not 
                apply to any public housing agency that is determined 
                by the Secretary to be in material default, upon the 
                expiration of the agreement referred to in paragraph 
                (2)(A), of the conditions and obligations under such 
                agreement.
            (4) Inapplicability of numerical limitation.--Any public 
        housing agency transitioned pursuant to paragraph (2)(B) or 
        (3)(A) of this subsection to participation under the program 
        under section 204 of the Departments of Veterans Affairs and 
        Housing and Urban Development, and Independent Agencies 
        Appropriations Act, 1996 (42 U.S.C. 1437f note), as amended by 
        this section, shall not count toward fulfillment of the 
        numerical limitation under section 204(d)(3)(A) of the 
        Departments of Veterans Affairs and Housing and Urban 
        Development, and Independent Agencies Appropriations Act, 1996 
        (42 U.S.C. 1437f note), as added by the amendment made by this 
        section.

SEC. 502. RESCISSION OF PUBLIC AND INDIAN HOUSING NOTICE 2021-18.

    The Public and Indian Housing Notice 2021-18 of the Department of 
Housing and Urban Development is hereby rescinded.

        TITLE VI--IMPROVING FINANCIAL LITERACY REGARDING HOUSING

SEC. 601. REFORMS TO HOUSING COUNSELING AND FINANCIAL LITERACY 
              PROGRAMS.

    (a) In General.--Section 106(a)(4) of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701x(a)(4)) is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
                            ``(i) In general.--The Secretary''; and
                    (B) by adding at the end the following:
                            ``(ii) Requirement.--The Secretary shall 
                        require each organization receiving assistance 
                        under this paragraph to employ individuals 
                        providing housing counseling who--
                                    ``(I) are certified to understand 
                                sustainable homeownership; and
                                    ``(II) pass required examinations 
                                that determine the ability of the 
                                individual to counsel borrowers on 
                                responsible homeownership.
                            ``(iii) Suspension of certification.--If an 
                        individual employed by an organization that 
                        receives assistance under this paragraph 
                        provides counseling services to borrowers who, 
                        after receiving those services, have default 
                        rates that exceed the average default rates for 
                        borrowers counseled by individuals in the area 
                        served by the organization, the Secretary--
                                    ``(I) shall suspend the 
                                certification from the individual; and
                                    ``(II) may deny future assistance 
                                under this paragraph to that 
                                organization.
                            ``(iv) Prohibition on lobbying 
                        activities.--An organization that applies for 
                        or receives assistance under this paragraph 
                        shall not engage in political activities, 
                        advocacy, or lobbying, whether directly or 
                        through other parties.''; and
            (2) by adding at the end the following:
                    ``(F) Set asides.--The Secretary shall set aside 40 
                percent of amounts authorized to carry out this 
                paragraph for organizations that provide rental 
                counseling or pre-foreclosure counseling.
                    ``(G) Geographic diversity.--In making grants under 
                this paragraph, the Secretary shall ensure that the 
                recipients are geographically diverse and include 
                organizations that serve urban and rural areas.''.
    (b) Requiring Prepurchase and Foreclosure Mitigation Counseling.--
            (1) Covered mortgage loan defined.--In this subsection, the 
        term ``covered mortgage loan'' means any loan which is secured 
        by a first or subordinate lien on residential real property 
        (including individual units of condominiums and cooperatives) 
        designed principally for the occupancy of from 1- to 4-families 
        that is--
                    (A) insured by the Federal Housing Administration 
                under title II of the National Housing Act (12 U.S.C. 
                1707 et seq.);
                    (B) insured under section 255 of the National 
                Housing Act (12 U.S.C. 1715z-20);
                    (C) guaranteed under section 184 or 184A of the 
                Housing and Community Development 3 Act of 1992 (12 
                U.S.C. 1715z-13a, 1715z-4 13b);
                    (D) guaranteed or insured by the Department of 
                Agriculture; or
                    (E) made by the Department of Agriculture.
            (2) Requirement for purchasers.--Before purchasing 
        residential real property that secures a covered mortgage loan, 
        the purchaser shall participate in prepurchase housing 
        counseling.
            (3) Requirement for borrowers.--A borrower with respect to 
        a covered mortgage loan who is 30 days or more delinquent on 
        payments for the covered mortgage loan shall participate in 
        foreclosure mitigation counseling.
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