II 

118TH CONGRESS 

2D SESSION S. 5078 

To establish an independent entity within the Department of Housing and 

Urban Development to acquire and maintain distressed real estate to 

stabilize communities and increase the supply of affordable housing, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 18, 2024 

Ms. SMITH (for herself, Mr. WELCH, and Mr. MERKLEY) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To establish an independent entity within the Department 

of Housing and Urban Development to acquire and 

maintain distressed real estate to stabilize communities 

and increase the supply of affordable housing, and for 

other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Homes Act of 2024’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Findings and purposes. 

Sec. 3. Definitions. 

Sec. 4. Establishment of authority. 

Sec. 5. Purposes of the authority. 

Sec. 6. Powers and duties. 

Sec. 7. Requirements for social housing providers. 

Sec. 8. Labor and Buy America provisions. 

Sec. 9. Duty to serve. 

Sec. 10. Community and tenant opportunity to purchase multifamily rental 

properties. 

Sec. 11. Maximum contingent liability. 

Sec. 12. Authority funds. 

Sec. 13. Authorization of appropriations for Authority. 

Sec. 14. Authorization of appropriations for public housing backlog. 

Sec. 15. Repeal of Faircloth Amendment. 

Sec. 16. Miscellaneous. 

1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—Congress finds that the national pro3 tracted housing crisis has existed for decades and only 

4 continues to worsen, with the lack of quality and afford5 able housing affecting all but the wealthiest households. 

6 (b) PURPOSES.—The purposes of this Act are— 

7 (1) to establish a robust public entity to develop 

8 a stock of permanently affordable, quality, publicly9 financed, and climate resilient housing that is shield10 ed from market speculation; and 

11 (2) to stabilize communities and improve gen12 eral welfare by maintaining a housing system, as an 

13 alternative to market-rate housing, that offers af14 fordability, fair housing choice, and quality to all 

15 families that are unable to afford market rents, in16 cluding families in underserved communities and 


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1 families that have experienced historical legacies of 

2 exclusion. 

3 SEC. 3. DEFINITIONS. 

4 (a) IN GENERAL.—In this Act: 

5 (1) AFFORDABLE HOUSING.—The term ‘‘afford6 able housing’’ means housing that complies with the 

7 standards established under section 7(c). 

8 (2) AT RISK OF HOMELESSNESS.—The term 

9 ‘‘at risk of homelessness’’ has the meaning given the 

10 term in section 401 of the McKinney-Vento Home11 less Assistance Act (42 U.S.C. 11360). 

12 (3) AUTHORITY.—The term ‘‘Authority’’ means 

13 the Housing Development Authority established 

14 under section 4(a). 

15 (4) BOARD.—The term ‘‘Board’’ means the 

16 Board of Directors of the Authority established 

17 under section 4(c)(1). 

18 (5) COMMUNITY LAND TRUST.—The term 

19 ‘‘community land trust’’ means a nonprofit entity or 

20 a State or local government or instrumentality there21 of that— 

22 (A) is not sponsored by a for-profit organi23 zation; 

24 (B) has as a primary purpose the provision 

25 and maintenance of housing that provides longVerDate Sep 11 2014 04:35 Sep 21, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S5078.IS S5078

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1 term affordability for low-income families and 

2 moderate-income families; 

3 (C) provides housing described in subpara4 graph (B) using a ground lease, deed covenant, 

5 or other similar legally enforceable measure, as 

6 determined by the Authority, that— 

7 (i) keeps the housing permanently af8 fordable to low-income families and mod9 erate-income families; and 

10 (ii) enables low-income families and 

11 moderate-income families to purchase the 

12 housing for homeownership; and 

13 (D) maintains preemptive purchase options 

14 to purchase the property so the housing re15 mains affordable to low-income families and 

16 moderate-income families. 

17 (6) COMMUNITY-LED DEVELOPMENT ORGANIZA18 TION.—The term ‘‘community-led development orga19 nization’’ means a nonprofit organization comprised 

20 of or acting on behalf of individuals seeking to es21 tablish, develop, maintain, and reside in a resident22 owned multifamily housing building that includes 

23 shared community amenities, whether through the 

24 development of a new building or the rehabilitation 

25 or conversion of an existing building. 


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1 (7) CONSUMER PRICE INDEX.—The term ‘‘Con2 sumer Price Index’’ means the most recent Con3 sumer Price Index for All Urban Consumers pub4 lished by the Bureau of Labor Statistics of the De5 partment of Labor. 

6 (8) DEPARTMENT.—The term ‘‘Department’’ 

7 means the Department of Housing and Urban De8 velopment. 

9 (9) DISTRESSED.—The term ‘‘distressed’’ 

10 means, with respect to an asset, that— 

11 (A) the obligor thereof is subject to a 

12 bankruptcy, insolvency, liquidation, or other 

13 similar action or proceeding; 

14 (B) the obligor thereof has failed to make 

15 any payment of principal or interest with re16 spect to the asset when due (whether at sched17 uled maturity or any accelerated date of matu18 rity or any other date fixed for payment or pre19 payment thereof or otherwise) beyond any pe20 riod of grace provided with respect thereto; 

21 (C) the asset is classified by the lender as 

22 ‘‘nonperforming’’ pursuant to generally accept23 ed accounting principles; or 

24 (D) the asset is in a physically distressed 

25 condition, as shall be defined by the Authority. 


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1 (10) ELIGIBLE ENTITY.—The term ‘‘eligible en2 tity’’ means an entity described in subparagraph (A) 

3 of section 6(c)(2), subject to subparagraph (B) of 

4 that section. 

5 (11) FAMILY.—The term ‘‘family’’ includes an 

6 individual. 

7 (12) HOMELESS.—The term ‘‘homeless’’ has 

8 the meaning given the term in section 103 of the 

9 McKinney-Vento Homeless Assistance Act (42 

10 U.S.C. 11302). 

11 (13) INCOME.—The term ‘‘income’’ has such 

12 meaning as provided by the Secretary that is con13 sistent with regulations issued by the Secretary in 

14 implementing section 3(b) of the United States 

15 Housing Act of 1937 (42 U.S.C. 1437a(b)). 

16 (14) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

17 has the meaning given the term ‘‘Indian tribe’’ in 

18 section 4 of the Native American Housing Assist19 ance and Self-Determination Act of 1996 (25 U.S.C. 

20 4103). 

21 (15) PERMANENT AFFORDABILITY.—The term 

22 ‘‘permanent affordability’’ means a designation for a 

23 residential property, the affordability of which is 

24 preserved in perpetuity through— 


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1 (A) a real property interest held by the 

2 Authority; and 

3 (B) the inclusion of a permanently afford4 able social housing use restriction in the deed to 

5 the land and, where applicable, any ground 

6 lease to the improvements on the land. 

7 (16) PERMANENTLY AFFORDABLE SOCIAL

8 HOUSING; SOCIAL HOUSING.— 

9 (A) IN GENERAL.—The term ‘‘permanently 

10 affordable social housing’’ or ‘‘social housing’’ 

11 means housing, including newly constructed, ac12 quired, rehabilitated, or renovated housing, that 

13 meets the following requirements: 

14 (i) SOCIAL OWNERSHIP.—The housing 

15 is owned by the Authority or an eligible en16 tity. 

17 (ii) PERMANENT STABILITY.—The 

18 housing is— 

19 (I) protected from for-profit in20 vestors and the speculative market; 

21 and 

22 (II) subject to restrictions that 

23 ensure that it is never resold for ex24 cessive profit, as determined by the 

25 Authority. 


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1 (iii) PERMANENT AFFORDABILITY.— 

2 The housing meets the requirements of 

3 paragraph (15) and, in the aggregate, is 

4 permanently affordable to families at a 

5 range of income levels, including extremely 

6 low-income families and no-income fami7 lies. 

8 (iv) COMMUNITY CONTROL.—The 

9 housing is developed, owned, managed, and 

10 operated in a way that is democratically 

11 accountable to residents, the community, 

12 and the public, with residents having a di13 rect role in management and decision-mak14 ing, such as through a tenant organization. 

15 (v) EQUITABLE.—The housing pro16 motes racial and gender equity and pre17 vents displacement of communities of color. 

18 (vi) SUSTAINABILITY.—The housing is 

19 built, renovated, or rehabilitated using con20 struction methods and materials that— 

21 (I) prioritize energy efficiency, 

22 the long-term safety and health of oc23 cupants, and disaster resilience; and 

24 (II) are guided by an evidence25 based approach designed to reduce 


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1 pollution burdens and climate vola2 tility. 

3 (vii) HIGH QUALITY AND ACCES4 SIBLE.—The housing is of high quality and 

5 accessible to all people regardless of age, 

6 physical need, or other factors. 

7 (viii) TENANT SECURITY.—The hous8 ing provides renter protections to resi9 dents. 

10 (B) PUBLIC HOUSING.—The Authority 

11 may provide any funding or support to public 

12 housing that is necessary for the public housing 

13 to meet the requirements under subparagraph 

14 (A), consistent with the rules and regulations 

15 that are otherwise applicable to public housing. 

16 (17) PERMANENTLY AFFORDABLE SOCIAL

17 HOUSING USE RESTRICTION.—The term ‘‘perma18 nently affordable social housing use restriction’’, 

19 with respect to real property, means a use restric20 tion, established by the Secretary by rulemaking 

21 after notice and an opportunity for public comment, 

22 that ensures that the property complies with the re23 quirements under subparagraph (A) of the definition 

24 of ‘‘permanently affordable social housing’’. 


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1 (18) PUBLIC HOUSING.—The term ‘‘public 

2 housing’’ means housing assisted under section 9 of 

3 the United States Housing Act of 1937 (42 U.S.C. 

4 1437g). 

5 (19) PUBLIC HOUSING AGENCY.—The term 

6 ‘‘public housing agency’’ has the meaning given the 

7 term in section 3(b) of the United States Housing 

8 Act of 1937 (42 U.S.C. 1437a(b)). 

9 (20) RESIDENT-OWNED COOPERATIVE.—The 

10 term ‘‘resident-owned cooperative’’ means a non11 profit entity that supports shared-equity homeowner12 ship that— 

13 (A) has as a primary purpose the provision 

14 and maintenance of owner-occupied housing 

15 that provides long-term affordability for low-in16 come families and moderate-income families; 

17 (B) provides housing described in subpara18 graph (A) using a limited equity cooperative 

19 agreement, or other similar legally enforceable 

20 measure, as determined by the Authority, 

21 that— 

22 (i) keeps the housing permanently af23 fordable to low-income families and mod24 erate-income families; and 


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1 (ii) enables low-income families and 

2 moderate-income families to purchase the 

3 housing for homeownership; and 

4 (C) maintains preemptive purchase options 

5 to purchase the property so the housing re6 mains affordable to low-income families and 

7 moderate-income families. 

8 (21) SECRETARY.—The term ‘‘Secretary’’, ex9 cept as otherwise provided, means the Secretary of 

10 Housing and Urban Development. 

11 (22) SHORT SALE.—The term ‘‘short sale’’ 

12 means a sale of a residential real property that is 

13 subject to a mortgage, deed or trust, or other secu14 rity interest that secures a residential mortgage loan 

15 that— 

16 (A) will result in proceeds in an amount 

17 that is less than the remaining amount due 

18 under the mortgage loan; and 

19 (B) requires authorization by any 

20 securitization vehicle or other investment vehicle 

21 or holder of the mortgage loan, or the servicer 

22 acting on behalf of such a vehicle or holder. 

23 (23) SUPPORTIVE SERVICES.—The term ‘‘sup24 portive services’’ means services that address the 

25 needs of persons served by a project, including— 


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1 (A) provision of tenant organizing tech2 nical assistance; 

3 (B) establishment and operation of a child 

4 care services program; 

5 (C) establishment and operation of an em6 ployment assistance program; 

7 (D) provision of outpatient health services, 

8 food, and case management; 

9 (E) provision of mental health services and 

10 victim services; 

11 (F) provision of assistance in obtaining 

12 other Federal, State, and local assistance avail13 able for residents of the project, including men14 tal health benefits, employment counseling, and 

15 medical assistance; 

16 (G) provision of transportation services 

17 that facilitate the ability of an individual to ob18 tain and maintain employment and access 

19 health care; 

20 (H) provision of services for older adults; 

21 (I) security services; and 

22 (J) other services necessary to maintain 

23 housing and sustain a quality housing commu24 nity. 


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1 (24) TENANT ORGANIZATION.—The term ‘‘ten2 ant organization’’, with respect to rental housing 

3 means a tenant-led organization— 

4 (A) that seeks to— 

5 (i) promote the collective interests and 

6 rights of the tenants; 

7 (ii) improve housing conditions; 

8 (iii) build renter authority; and 

9 (iv) advocate for policy changes for 

10 the benefit of tenants; and 

11 (B) which may be organized with respect 

12 to— 

13 (i) housing sharing the same landlord 

14 or building; or 

15 (ii) housing having different landlords 

16 or buildings. 

17 (25) TRIBALLY DESIGNATED HOUSING ENTI18 TY.—The term ‘‘tribally designated housing entity’’ 

19 has the meaning given the term in section 4 of the 

20 Native American Housing Assistance and Self-De21 termination Act of 1996 (25 U.S.C. 4103). 

22 (26) UNDERSERVED COMMUNITY.—The term 

23 ‘‘underserved community’’ means a population shar24 ing a particular characteristic, or a geographic com25 munity, that— 


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1 (A) has been systematically denied a full 

2 opportunity to participate in aspects of eco3 nomic, social, and civic life; and 

4 (B) may include— 

5 (i) Black, Latino, and Indigenous and 

6 Native American persons, Asian Americans 

7 and Pacific Islanders, and other persons of 

8 color; 

9 (ii) members of religious minorities; 

10 (iii) lesbian, gay, bisexual, 

11 transgender, and queer (commonly known 

12 as ‘‘LGBTQ+’’) persons; 

13 (iv) persons with disabilities; 

14 (v) persons who live in rural areas; 

15 and 

16 (vi) persons otherwise adversely af17 fected by persistent poverty or inequality. 

18 (b) INCOME LEVELS.— 

19 (1) IN GENERAL.—In this Act, subject to para20 graph (2)— 

21 (A) the term ‘‘moderate-income family’’ 

22 means a family that satisfies the definition of 

23 the term ‘‘persons of moderate income’’ in sec24 tion 102(a) of the Housing and Community De25 velopment Act of 1974 (42 U.S.C. 5302(a)); 


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1 (B) the term ‘‘low-income family’’ means a 

2 family that satisfies the definition of the term 

3 ‘‘persons of low income’’ in section 102(a) of 

4 the Housing and Community Development Act 

5 of 1974 (42 U.S.C. 5302(a)); and 

6 (C) the term ‘‘extremely low-income fam7 ily’’ means a family that satisfies the definition 

8 of the term ‘‘extremely low-income families’’ in 

9 section 3(b)(2) of the United States Housing 

10 Act of 1937 (42 U.S.C. 1437a(b)(2)). 

11 (2) AUTHORITY OF SECRETARY TO ESTABLISH

12 VARIATIONS.—For purposes of paragraph (1) and 

13 subject to the considerations described in section 

14 7(c)(4), the Secretary may establish a percentage of 

15 median income for a term defined in paragraph (1) 

16 of this subsection for any area that is higher or 

17 lower than the percentage set forth in the applicable 

18 provision of law referenced in such paragraph (1) if 

19 the Secretary finds the variation to be necessary be20 cause of unusually high or low family incomes or 

21 cost of living in the area. 

22 SEC. 4. ESTABLISHMENT OF AUTHORITY. 

23 (a) ESTABLISHMENT.— 

24 (1) IN GENERAL.—There is established within 

25 the Department of Housing and Urban Development 


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1 an independent authority to be known as the ‘‘Hous2 ing Development Authority’’, to carry out the pur3 poses set forth in section 5. 

4 (2) APPLICABILITY OF OTHER LAWS.—Except 

5 as otherwise provided expressly by law, all Federal 

6 laws concerning public or Federal contracts, prop7 erty, works, officers, employees, budgets, or funds, 

8 including chapters 5 and 7 of title 5, United States 

9 Code, shall apply to the exercise of the powers of the 

10 Authority. 

11 (3) AUTONOMY.—Notwithstanding any other 

12 provision of law, including the Department of Hous13 ing and Urban Development Act of 1965 (42 U.S.C. 

14 3531 et seq.), the Secretary may not— 

15 (A) intervene in any matter or proceeding 

16 before the Authority; or 

17 (B) merge or consolidate the Authority, or 

18 any of the functions or responsibilities of the 

19 Authority, with any division or office of the De20 partment. 

21 (4) RULES AND ORDERS.—No action of the Au22 thority shall be subject to approval or review by the 

23 Secretary, and the Secretary may not delay or pre24 vent any action by the Authority. 


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1 (b) OWNERSHIP.—Any real property acquired by the 

2 Authority shall be acquired in perpetuity with the author3 ity to convey properties to eligible entities. 

4 (c) BOARD.— 

5 (1) IN GENERAL.—The Authority shall be gov6 erned by a Board of Directors. 

7 (2) MEMBERSHIP.— 

8 (A) IN GENERAL.—The Board shall consist 

9 of 15 members appointed by the President, by 

10 and with the advice and consent of the Senate, 

11 one of whom the President shall designate as 

12 chairperson. 

13 (B) TYPES OF APPOINTMENTS.—Of the 15 

14 members of the Board— 

15 (i) 9 shall be appointed under sub16 paragraph (C); and 

17 (ii) 6 shall be appointed under sub18 paragraph (D). 

19 (C) STAKEHOLDER MEMBERS.— 

20 (i) IN GENERAL.—Of the 9 members 

21 of the Board appointed under this sub22 paragraph (referred to in this subsection 

23 as ‘‘stakeholder members’’)— 

24 (I) 2 shall be appointed from 

25 among the officers of Federal agencies 


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1 who have experience and expertise 

2 with affordable and low-income hous3 ing and community development and 

4 financing, but at no time may more 

5 than 1 member be from any single 

6 such agency; 

7 (II) 2 shall represent labor orga8 nizations, as that term is defined in 

9 section 2 of the National Labor Rela10 tions Act (29 U.S.C. 152), of which 

11 building and construction employees 

12 are members; 

13 (III) 2 shall have expertise in 

14 housing finance, housing development, 

15 or housing management; 

16 (IV) 2 shall have technical exper17 tise in architecture, affordable housing 

18 construction and financing, urban 

19 planning, or engineering; and 

20 (V) 1 shall be an expert in fair 

21 housing and civil rights. 

22 (ii) ENVIRONMENTAL EXPERTISE; DI23 VERSE EXPERIENCE.—In appointing mem24 bers under clause (i), the President— 


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1 (I) shall appoint not less than 1 

2 individual who has extensive expertise 

3 in climate, environmental justice, or 

4 sustainable building; and 

5 (II) shall appoint a mix of indi6 viduals with experience in rural, 

7 urban, and Native communities. 

8 (D) RESIDENT MEMBERS.— 

9 (i) IN GENERAL.—The 6 members of 

10 the Board appointed under this subpara11 graph (referred to in this subsection as 

12 ‘‘resident Board members’’) shall be resi13 dents of public housing or permanently af14 fordable social housing. 

15 (ii) NOTICE OF EXPIRATION OF

16 TERM.—The Authority shall publish notice 

17 of the expiration of the term of a resident 

18 Board member not later than 90 days be19 fore the date of the expiration. 

20 (iii) VACANCIES.—If a vacancy occurs 

21 during the term of a resident Board mem22 ber— 

23 (I) the Authority shall publish 

24 notice of the vacancy not later than 


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1 10 business days after the vacancy oc2 curs; and 

3 (II) the President shall appoint 

4 the successor resident Board member 

5 within a reasonable time after the ex6 piration of 60 days following the pro7 vision of notice under subclause (I). 

8 (3) TERMS.— 

9 (A) IN GENERAL.—A member of the Board 

10 shall serve for a term of 4 years or until the 

11 member’s successor has been appointed, except 

12 as provided in subparagraphs (B) and (C). 

13 (B) TERMS OF INITIAL APPOINTEES.—As 

14 designated by the President at the time of ap15 pointment— 

16 (i) of the stakeholder members first 

17 appointed in accordance with paragraph 

18 (2)(C)— 

19 (I) 4 shall be appointed for terms 

20 of 2 years each; and 

21 (II) 5 shall be appointed for 

22 terms of 4 years each; and 

23 (ii) of the resident members first ap24 pointed in accordance with paragraph 

25 (2)(D)— 


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1 (I) 3 shall be appointed for terms 

2 of 4 years each; and 

3 (II) 3 shall be appointed for 

4 terms of 6 years each. 

5 (C) VACANCY.— 

6 (i) APPOINTMENT FOR REMAINDER OF

7 TERM.—Any member of the Board ap8 pointed to fill a vacancy occurring before 

9 the expiration of the term for which the 

10 member’s predecessor was appointed shall 

11 be appointed only for the remainder of that 

12 term. 

13 (ii) SERVICE AFTER EXPIRATION OF

14 TERM.—A member of the Board may serve 

15 after the expiration of that member’s term 

16 until a successor has taken office. 

17 (iii) FILLING OF VACANCIES.—A va18 cancy in the Board shall be filled in the 

19 manner in which the original appointment 

20 was made. 

21 (4) PROHIBITION.—No part of any earnings of 

22 the Authority shall inure to the benefit of any mem23 ber of the Board. 

24 (5) OPEN MEETINGS.—The proceedings of the 

25 Board shall be open to the public. 


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1 (6) COMPREHENSIVE TRAINING PROGRAM FOR

2 BOARD MEMBERS; TECHNICAL ASSISTANCE TRAIN3 ING FOR RESIDENT BOARD MEMBERS.— 

4 (A) REQUIREMENT.—Each member of the 

5 Board shall complete a training program, as de6 veloped by the Authority— 

7 (i) not later than 90 days after being 

8 appointed or reappointed to the Board; 

9 and 

10 (ii) not less frequently than once every 

11 2 years thereafter. 

12 (B) ESTABLISHMENT OF PROGRAM.—The 

13 Authority shall establish and implement a com14 prehensive training program for members of the 

15 Board on the proper management of the Au16 thority, including applicable laws and topics re17 lating to— 

18 (i) open meetings; 

19 (ii) public records; 

20 (iii) conflicts of interest; 

21 (iv) uniform procurement; 

22 (v) housing finance; 

23 (vi) fraud prevention; 

24 (vii) fiduciary responsibilities; 

25 (viii) fair housing; 


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1 (ix) tenant selection, occupancy, and 

2 participation policies; 

3 (x) prohibiting discrimination in hous4 ing; and 

5 (xi) best practices relating to the gen6 eral inspection, maintenance, and repair of 

7 dwelling units and capital improvements in 

8 public housing and other social housing. 

9 (C) TECHNICAL ASSISTANCE.— 

10 (i) TRAINING FOR RESIDENT BOARD

11 MEMBERS.—The Authority shall provide 

12 independent technical assistance training 

13 to resident Board members with the goal 

14 of enabling resident Board members and 

15 members of tenant organizations to partici16 pate fully in the oversight of the 

17 Authority’s operation and capital planning. 

18 (ii) TRAINING FOR RESIDENTS GEN19 ERALLY.—The Authority shall permit resi20 dents of public housing and social housing 

21 who are not members of the Board to at22 tend technical assistance training provided 

23 under clause (i). 

24 (iii) DEVELOPMENT OF TRAINING

25 PROGRAM.—The Authority shall develop 


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1 the training program provided under 

2 clause (i) in consultation with— 

3 (I) the Secretary; 

4 (II) government officials; 

5 (III) residents of public housing 

6 and social housing; and 

7 (IV) public housing and social 

8 housing advocacy and industry profes9 sional organizations. 

10 (d) STOCKS, BONDS, AND CERTIFICATES.— 

11 (1) IN GENERAL.—The Authority may issue 

12 bonds guaranteed by the United States to carry out 

13 the purposes of this Act, which bonds shall be legal 

14 investments for— 

15 (A) the deposits and the income derived 

16 therefrom of savings banks; 

17 (B) the trust funds of trust companies; 

18 (C) the capital and other funds of insur19 ance companies; and 

20 (D) funds over which the Department of 

21 the Treasury has exclusive control. 

22 (2) NEGOTIABLE INSTRUMENTS.—The bonds, 

23 notes, and certificates of indebtedness under this 

24 subsection shall constitute negotiable instruments 

25 for all purposes. 


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1 (3) OTHER CHARACTERISTICS.—The bonds, 

2 notes, and certificates of indebtedness under this 

3 subsection— 

4 (A) may be payable from the income of the 

5 Authority or constitute a general obligation 

6 thereof; 

7 (B) may be sold at not less than par, at 

8 public or private sale; 

9 (C) may contain any covenants, terms, and 

10 conditions, as determined by the Authority, that 

11 are not inconsistent with law; and 

12 (D) may be issued with or without the cor13 porate seal. 

14 (e) BYLAWS, RULES, AND REGULATIONS.—The 

15 Board may make such bylaws, rules, and regulations, not 

16 inconsistent with this Act, as may be necessary for the 

17 proper conduct of the affairs of the Authority, including 

18 provisions for— 

19 (1) compensation of members of the Board; and 

20 (2) the removal, resignation, or suspension of 

21 members of the Board. 

22 (f) OFFICERS AND EMPLOYEES.— 

23 (1) IN GENERAL.—The Authority may select, 

24 employ, and fix the compensation of such officers, 

25 employees, attorneys, or agents as shall be necessary 


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1 for the performance of the duties of the Authority 

2 under this Act, without regard to the provisions of 

3 other laws applicable to the employment or com4 pensation of officers, employees, attorneys, or agents 

5 of the United States, notwithstanding section 

6 4(a)(2). 

7 (2) COMPENSATION.—No officer, employee, at8 torney, or agent employed by the Authority shall be 

9 paid compensation at a rate in excess of the rate 

10 provided for the members of the Board. 

11 (g) SALARIES AND EXPENSES.—The Authority— 

12 (1) shall pay such proportion of the salary and 

13 expenses of the members of the Board, including 

14 resident Board members, and of its officers and em15 ployees as the Board may determine to be equitable, 

16 including childcare, transportation, and any other 

17 necessary accommodations; and 

18 (2) may operate out of the physical locations of 

19 each of the Federal Home Loan Banks, upon mak20 ing reasonable compensation to the Federal Home 

21 Loan Bank, as determined by the Board. 

22 (h) OFFICES.—The Board may establish a principal 

23 office and regional offices of the Authority as the Board 

24 considers appropriate to carry out the responsibilities of 

25 the Authority. 


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1 (i) USE OF MAILS.—The Authority may use the 

2 United States mails in the same manner and under the 

3 same conditions as other departments and agencies of the 

4 United States. 

5 (j) OPERATING ASSISTANCE.—The Authority may 

6 provide operating assistance to its properties and collect 

7 surplus cash, as defined by the Secretary. 

8 (k) TECHNOLOGY INFRASTRUCTURE.— 

9 (1) IN GENERAL.—In the acquisition and devel10 opment process of the Authority’s technology infra11 structure, the Authority shall— 

12 (A) focus on the needs of users and take 

13 into consideration, to the extent practicable— 

14 (i) the guidelines outlined in the U.S. 

15 Web Design Standards maintained by the 

16 General Services Administration and the 

17 Digital Services Playbook and TechFAR 

18 Handbook for Procuring Digital Services 

19 Using Agile Processes of the U.S. Digital 

20 Service; and 

21 (ii) the relevant successor documents 

22 or recommendations of the guidelines de23 scribed in clause (i); 

24 (B) use modern, relevant privacy- and se25 curity-enhancing technology; and 


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1 (C) plan for the ongoing operations and 

2 maintenance of its systems and products to en3 sure their ongoing capability. 

4 (2) 21ST CENTURY INTEGRATED DIGITAL EXPE5 RIENCE ACT.—The 21st Century Integrated Digital 

6 Experience Act (44 U.S.C. 3501 note; Public Law 

7 115–336) shall apply to the Authority in the same 

8 manner as that Act applies to an Executive agency, 

9 except that— 

10 (A) any reference in that Act to the head 

11 of an Executive agency shall be deemed to be 

12 a reference to the Board; and 

13 (B) any reference in that Act to the Chief 

14 Information Officer of an Executive agency 

15 shall be deemed to be a reference to an equiva16 lent employee of the Authority. 

17 SEC. 5. PURPOSES OF THE AUTHORITY. 

18 The purposes of the Authority shall be to— 

19 (1) acquire real estate, public land, corporate20 owned vacant properties, including vacant, blighted, 

21 or underutilized developments, and publicly assisted 

22 or privately owned properties with liens, fees, or tax 

23 violations for the purpose of— 


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•S 5078 IS

1 (A) providing adequate housing for ex2 tremely low-income families, low-income fami3 lies, and moderate-income families; 

4 (B) preventing involuntary displacement of 

5 families; and 

6 (C) stabilizing communities, including un7 derserved communities that have experienced 

8 historical legacies of exclusion; 

9 (2) operate and maintain the physical and func10 tional conditions of acquired properties to— 

11 (A) preserve, modernize, and enhance the 

12 value, affordability, habitability, climate resil13 iency, energy efficiency, environmental sustain14 ability, and residential and community amen15 ities for current and future occupants of the 

16 real property; and 

17 (B) contribute to the economic and social 

18 conditions of the surrounding community; 

19 (3) rehabilitate, modernize, finance, and con20 struct real property to carry out the purposes of this 

21 Act described in section 2(b); 

22 (4) rehabilitate, modernize, finance, and con23 struct real property so as to comply with such stand24 ards as the Authority shall require to encourage 

25 maximum environmental performance, including— 


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1 (A) using low-embodied carbon construc2 tion materials, as determined using a Type III 

3 Environmental Product Declaration (or a suc4 cessor document) and in coordination with the 

5 Administrator of the Environmental Protection 

6 Agency; 

7 (B) encouraging zero indoor or outdoor air 

8 emissions; 

9 (C) ensuring accessibility of the property 

10 in accordance with— 

11 (i) section 504 of the Rehabilitation 

12 Act of 1973 (29 U.S.C. 794); 

13 (ii) titles II and III of the Americans 

14 with Disabilities Act of 1990 (42 U.S.C. 

15 12131 et seq.; 42 U.S.C. 12181 et seq.); 

16 (iii) the Architectural Barriers Act of 

17 1968 (42 U.S.C. 4151 et seq.); and 

18 (iv) the requirements under section 

19 804(f)(3)(C) of the Fair Housing Act (42 

20 U.S.C. 3604(f)(3)(C)) relating to design 

21 and construction; 

22 (D) reflecting the highest international ar23 chitectural standards and the architectural 

24 standards of the neighborhood and the commu25 nity in which the real property is situated; and 


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1 (E) employing innovative design principles 

2 and materials to advance public safety, fire 

3 safety and social infrastructure; 

4 (5) advance the streamlining of construction 

5 procedures and development processes, which shall 

6 include engaging with jurisdictions on permitting 

7 and zoning reform, within and across all levels of 

8 government to reduce project time and cost burden, 

9 while maintaining high-quality standards; 

10 (6) establish and use model policies and proce11 dures for engaging community members, including 

12 community members at highest risk of housing dis13 placement and unaffordability, and local govern14 ments to ensure projects leverage community exper15 tise and responsive feedback to accurately and equi16 tably assess and address local or regional needs for 

17 additional housing; 

18 (7) convey acquired real property to eligible en19 tities that will use it to guarantee affordable, habit20 able, and environmentally sustainable housing to ex21 tremely low-income families, low-income families, 

22 and moderate-income families; 

23 (8) finance and support the transfer of acquired 

24 property to eligible entities, which may include techVerDate Sep 11 2014 04:35 Sep 21, 2024 Jkt 049200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S5078.IS S5078

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1 nical assistance, administrative support, or ongoing 

2 operational support; 

3 (9) provide an appropriate and expedient man4 ner for owners of distressed properties to transfer 

5 ownership of those properties to the Authority; 

6 (10) stabilize neighborhoods by reducing— 

7 (A) foreclosures; and 

8 (B) blighted or neglected real property; 

9 (11) across the portfolio of the Authority’s 

10 properties, encourage a range of housing types that 

11 accommodate homeless families, families at risk of 

12 homelessness, and extremely low-income families, 

13 low-income families, and moderate-income families 

14 unable to afford market rents; 

15 (12) promote intentional placement of housing 

16 in a balance of neighborhoods affording future resi17 dents choice in where they live, which may include 

18 proximity to work, transit, childcare, education, 

19 healthcare, access to food, and culturally relevant 

20 community resources; 

21 (13) ensure that, within any real property— 

22 (A) the quality of comparable dwelling 

23 units does not materially differ between units at 

24 various price levels; 


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1 (B) access to services and facilities does 

2 not materially differ between units at various 

3 price levels; and 

4 (C) units at various price levels are not— 

5 (i) physically located apart from one 

6 another; or 

7 (ii) outwardly identifiable according to 

8 affordability level; 

9 (14) establish dignified, accessible, and stream10 lined processes for residents that minimize informa11 tion collection burden, ensure privacy, and reduce 

12 barriers to accessing and maintaining affordable 

13 housing; 

14 (15) coordinate with the Secretary of Health 

15 and Human Services, the Secretary of Agriculture, 

16 and the Secretary of Education to facilitate collabo17 rative or co-located supportive service programs, 

18 which may include— 

19 (A) childcare and early childhood edu20 cation; 

21 (B) out-of-school time programs; 

22 (C) food and nutrition programs; 

23 (D) health care programs; 

24 (E) programs for older adults; and 

25 (F) other programs; 


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1 (16) acquire housing that enables the Authority 

2 to assist people who wish to voluntarily relocate out 

3 of areas at high risk for extreme weather and into 

4 safer, affordable housing; 

5 (17) in areas affected by a natural disaster or 

6 emergency declaration, acquire housing and assist 

7 with relocation and the provision of safe, affordable 

8 housing; 

9 (18) encourage public land banking for perma10 nently affordable social housing; 

11 (19) preserve and improve existing public hous12 ing developments and affordable housing stock; 

13 (20) provide relief to mortgage borrowers expe14 riencing risk of foreclosure and preserve homeowner15 ship in times of economic distress or market insta16 bility; and 

17 (21) affirmatively further fair housing by over18 coming patterns of segregation, eliminating inequi19 ties in access to housing and related community as20 sets, and fostering inclusive communities free from 

21 barriers that restrict access to opportunity based on 

22 protected characteristics. 

23 SEC. 6. POWERS AND DUTIES. 

24 (a) ACQUISITION AND PURCHASE.— 


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•S 5078 IS

1 (1) IN GENERAL.—The Authority may acquire 

2 or purchase any real estate property for use as social 

3 housing through any legal means, including as pro4 vided in this subsection. 

5 (2) RIGHTS OF FIRST NEGOTIATION, OFFER, 

6 AND REFUSAL.— 

7 (A) IN GENERAL.—Subject to any applica8 ble contract in effect on the date of enactment 

9 of this Act, and subject to the right of first re10 fusal allowed by section 42(i)(7) of the Internal 

11 Revenue Code of 1986, the owner of any real 

12 property provided assistance by the Depart13 ment, including public housing units and land 

14 subject to demolition, disposition, or conversion, 

15 shall afford the Authority a right of first nego16 tiation, first offer, and first refusal to purchase, 

17 acquire, or otherwise receive the real property 

18 at a price that does not exceed the sum of— 

19 (i) the amount of outstanding indebt20 edness secured by the real property; and 

21 (ii) any associated amount of Federal, 

22 State, or local tax or other contractual li23 ability projected to be imposed as a result 

24 of the sale, disposition, transfer, or other 


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•S 5078 IS

1 conveyance of the real property to the Au2 thority under this subsection. 

3 (B) RELOCATION.—Relocation of a house4 hold due to any acquisition, rehabilitation, or 

5 demolition under this section of any property 

6 assisted by the Department shall be subject to 

7 the Uniform Relocation Assistance and Real 

8 Property Acquisition Policies Act of 1970 (42 

9 U.S.C. 4601 et seq.) and part 24 of title 49, 

10 Code of Federal Regulations, or any successor 

11 regulation. 

12 (3) EMINENT DOMAIN.— 

13 (A) POWER.—The Authority may acquire 

14 properties for the purposes described in section 

15 5 by the exercise of the right of eminent do16 main in a court of competent jurisdiction. 

17 (B) SCOPE OF POWER.—The Authority— 

18 (i) shall use the eminent domain 

19 power of the Authority— 

20 (I) in a manner consistent with 

21 the purposes described in section 5; 

22 and 

23 (II) to preserve and create social 

24 housing; and 


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•S 5078 IS

1 (ii) may use the eminent domain 

2 power of the Authority— 

3 (I) if residents of federally as4 sisted housing form a tenant organi5 zation and petition the Authority to 

6 acquire the property; 

7 (II) if a State or local govern8 ment is seeking to block the develop9 ment of affordable housing (including 

10 a project not already supported by the 

11 Authority); or 

12 (III) to support transit-oriented 

13 development. 

14 (C) PROHIBITED USES.—The Authority 

15 may not use the eminent domain power of the 

16 Authority— 

17 (i) for widespread displacement of in18 dividuals or families; 

19 (ii) for the destruction of commu20 nities; 

21 (iii) in a manner that is targeted on 

22 the basis of any protected characteristic; or 

23 (iv) for the development of a highway 

24 or other similar infrastructure project that 


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•S 5078 IS

1 is ancillary to or not required for the pres2 ervation or creation of affordable housing. 

3 (D) ENGAGEMENT.—When using the emi4 nent domain power, the Authority shall— 

5 (i) meaningfully engage with commu6 nities affected by the use of the eminent 

7 domain power; 

8 (ii) enter into community benefit 

9 agreements to ensure displacement through 

10 the use of the eminent domain power is 

11 minimized; and 

12 (iii) provide reasonable alternatives 

13 for any individuals displaced or potentially 

14 harmed by the use of the eminent domain 

15 power. 

16 (4) RECEIVERSHIP.—The Authority may, not17 withstanding any other provision of law, take over as 

18 receiver for residential real estate properties, if ap19 pointed by the court or official authorized under law 

20 to appoint a receiver for a financial institution, pub21 lic housing agency, or other entity, to ensure mainte22 nance of quality for the benefit of the inhabitants 

23 and the community, including undertaking mainte24 nance and renovation activities necessary to main25 tain or achieve compliance with applicable building, 


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•S 5078 IS

1 safety, health, and habitability codes and require2 ments. 

3 (b) OPERATION AND MANAGEMENT.—The Authority 

4 may— 

5 (1) hold any real property acquired under sub6 section (a) for the purpose of maintaining or in7 creasing social housing stock; 

8 (2) operate real property described in para9 graph (1) as rental property and collect income; and 

10 (3) update and improve real property described 

11 in paragraph (1) to maintain quality and conditions, 

12 which may include actions to retrofit and update the 

13 real property to be energy efficient, low-carbon, safe, 

14 healthy, climate-resilient, and accessible, including 

15 retrofits and updates for— 

16 (A) energy efficiency, including— 

17 (i) installing energy efficient windows; 

18 (ii) super-insulating roofs and exterior 

19 walls; 

20 (iii) electrifying water heating; 

21 (iv) installing electric heat pumps for 

22 heating or air conditioning; and 

23 (v) increasing the airtightness of 

24 building envelopes, heat recovery systems, 

25 and ventilation systems; 


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•S 5078 IS

1 (B) remediation to— 

2 (i) eliminate any mold, asbestos, lead3 based paint, lead-based paint hazards, lead 

4 pipes, radon, or other toxins or contami5 nants in the real property or otherwise af6 fecting residents of the real property; and 

7 (ii) utilize least toxic building mate8 rials; 

9 (C) in-unit efficiency upgrades, including 

10 installing energy efficient insulation and effi11 cient and all-electric appliances; 

12 (D) providing drinking water, including re13 placing pipes and ensuring compliance with the 

14 Safe Drinking Water Act (42 U.S.C. 300f et 

15 seq.) and other applicable standards of the En16 vironmental Protection Agency; 

17 (E) energy systems, including installing re18 newable energy rooftops, renewable energy gen19 eration, and photovoltaic glass windows, pur20 chasing clean energy grid supply in bulk, and 

21 investing in community-scale energy systems; 

22 (F) emergency response, including install23 ing battery storage for backup and rigid foam 

24 wall insulation in hurricane and earthquake25 prone areas to create shear walls and resistance 


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•S 5078 IS

1 to structural damage from walls tilting or fall2 ing during high winds or earthquakes; 

3 (G) transportation, including providing 

4 dedicated infrastructure for transportation by 

5 bicycle, electric bicycle, micromobility, or elec6 tric vehicles, including charging stations; and 

7 (H) otherwise meeting minimum property 

8 standards established by the Authority or the 

9 Secretary. 

10 (c) SUPPORT TO ELIGIBLE ENTITIES.— 

11 (1) IN GENERAL.—The Authority— 

12 (A) may convey any real estate property 

13 owned or held by the Authority to an eligible 

14 entity under paragraph (2) for use as afford15 able housing under section 7(c); 

16 (B) may not convey real property that is 

17 uninhabitable under this subsection unless the 

18 Authority has— 

19 (i) taken any actions necessary to 

20 bring the real property into compliance 

21 with applicable building, safety, health, 

22 and habitability codes and requirements; or 

23 (ii) entered into such agreements with 

24 the conveyee sufficient to ensure that any 

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1 erty into compliance with applicable build2 ing, safety, health, and habitability codes 

3 and requirements will be taken before the 

4 property is occupied; 

5 (C) finance or assist in financing the ac6 quisition of residential real estate properties by 

7 eligible entities under paragraph (2) for use as 

8 affordable housing; 

9 (D) contract directly with any eligible enti10 ty for the purpose of developing and managing 

11 an affordable housing project involving the pur12 chase or acquisition of the right to use com13 pleted or remodeled dwelling units, including 

14 condominium units, individual buildings that 

15 are part of a larger development, or a portion 

16 of the units in a multifamily development, or 

17 the construction of new buildings, except that— 

18 (i) the project shall be subject to rules 

19 and regulations promulgated by the Au20 thority, which shall include a procedure for 

21 providing public notice of the availability of 

22 funding and a ranking of priority for 

23 projects according to criteria for selection; 

24 (ii) the project shall seek to reason25 ably comply with any applicable laws, ordiVerDate Sep 11 2014 04:35 Sep 21, 2024 Jkt 049200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S5078.IS S5078

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•S 5078 IS

1 nances, and regulations of the State and 

2 political subdivision thereof in which the 

3 project is located, relating to the construc4 tion and repair of buildings, zoning, and 

5 the protection of public health; and 

6 (iii) the project budget may include 

7 capital funds to establish spaces for sup8 portive services and funds to provide such 

9 services. 

10 (2) ELIGIBLE ENTITIES.— 

11 (A) IN GENERAL.—For purposes of con12 veyance of assets under this subsection, the fol13 lowing entities shall be eligible entities: 

14 (i) A mission-driven nonprofit organi15 zation that— 

16 (I) has as one of its primary pur17 poses— 

18 (aa) the provision of housing 

19 that is affordable to low-income 

20 families and moderate-income 

21 families; or 

22 (bb) the provision of evi23 dence-based supportive services, 

24 shelter, or housing assistance for 


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•S 5078 IS

1 homeless persons or families or 

2 those at risk of homelessness; or 

3 (II) is otherwise considered by 

4 the Authority as a suitable purchaser. 

5 (ii) A tenant organization, resident6 owned cooperative, or community-led devel7 opment organization. 

8 (iii) A public housing agency. 

9 (iv) A State, local, or Tribal govern10 mental agency or other instrumentality. 

11 (v) A community land trust. 

12 (vi) Such other entities considered by 

13 the Authority as suitable conveyees. 

14 (B) INELIGIBLE ENTITIES.— 

15 (i) IN GENERAL.—The Authority shall 

16 establish standards for excluding entities 

17 from eligibility under subparagraph (A) as 

18 appropriate to ensure the preservation and 

19 permanent affordability of housing and 

20 protection of residents. 

21 (ii) MAINTENANCE OF NONPROFIT

22 ELIGIBILITY.—The Authority shall estab23 lish procedures to ensure that any eligible 

24 entity that is a nonprofit organization, and 

25 to which a real property is conveyed under 


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•S 5078 IS

1 this subsection, maintains its nonprofit 

2 status under section 501(c)(3) of the In3 ternal Revenue Code of 1986. 

4 (C) USE RESTRICTIONS.—A conveyance 

5 under this subsection shall all be accompanied 

6 by a permanently affordable social housing use 

7 restriction. 

8 (D) REQUIREMENT.—An eligible entity 

9 may receive conveyance of a real property or 

10 mortgage under this subsection only if the eligi11 ble entity enters into such binding agreements 

12 as the Authority considers necessary to ensure 

13 that the property involved— 

14 (i) is used as permanently affordable 

15 housing; and 

16 (ii) cannot be resold, sold, transferred, 

17 or assigned into the private market. 

18 (E) REVERSIONARY INTEREST.— 

19 (i) IN GENERAL.—The Authority shall 

20 hold a reversionary interest in each real 

21 property the Authority conveys to an eligi22 ble entity under this subsection, with the 

23 power to reclaim a real property if the eli24 gible entity is found to have violated the 


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•S 5078 IS

1 permanently affordable social housing use 

2 restriction. 

3 (ii) COMPENSATION.—If the Authority 

4 exercises the reversionary interest under 

5 clause (i) on a real property, the Authority 

6 shall, at the time the Authority exercises 

7 the reversionary interest, compensate each 

8 stakeholder who holds limited equity in the 

9 real property. 

10 (iii) EXCEPTION FOR PUBLIC HOUS11 ING.—Clause (i) shall not apply to a real 

12 property that the Authority conveys to an 

13 eligible entity under this subsection for use 

14 as public housing. 

15 (F) LIMITED EQUITY.—A resident of a 

16 real property acquired under this subsection by 

17 an eligible entity may purchase limited equity in 

18 the real property, at the discretion of the eligi19 ble entity. 

20 (G) LIMITS ON PROFIT.—An eligible entity 

21 or stakeholder claiming limited equity in a real 

22 property conveyed by the Authority under this 

23 subsection shall limit the sum of profit that 

24 may be taken on leasehold interests and any 

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1 est in the property to a rate of 2 percent per 

2 year, compounded annually and adjusted for in3 flation. 

4 (d) FINANCING.— 

5 (1) IN GENERAL.—The Authority may issue, 

6 purchase, acquire, hold, or service a mortgage on 

7 any real estate property. 

8 (2) DISTRESSED MORTGAGES.—The Authority 

9 may seek to recoup any losses incurred on a dis10 tressed mortgage acquired under paragraph (1) from 

11 the responsible party if the Authority determines, 

12 not later than 5 years after acquisition, that the 

13 mortgage fell into distress due to— 

14 (A) unfair or abusive terms or practices; 

15 (B) fraud or deception; or 

16 (C) equity stripping or other such actions 

17 taken by an individual who constructively owns 

18 the real property or exercises control over the 

19 real property. 

20 (3) FINANCING TENANT PURCHASES.—The Au21 thority shall provide technical assistance and financ22 ing to support the purchase of rental properties by 

23 tenant organizations and community land trusts, re24 gardless of incorporation status, under section 7 and 

25 otherwise, which may include financing such repairs 


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•S 5078 IS

1 and improvements as may be necessary to comply 

2 with subsection (c)(1)(B)(ii) of this section. 

3 (e) CLEARINGHOUSE.—To facilitate the exercise of 

4 the powers under subsections (a) through (d), the Author5 ity shall establish a clearinghouse— 

6 (1) for the Authority to provide notice of, and 

7 to market, in accordance with the requirements of 

8 this Act, real estate assets held by the Authority; 

9 (2) for owners of distressed real estate assets to 

10 provide notice of the availability of, and to market, 

11 such assets to the Authority; and 

12 (3) for public availability of notices provided to 

13 the Authority under section 10. 

14 (f) RULEMAKING.—The Authority may promulgate 

15 any regulations necessary to carry out the powers, duties, 

16 and functions of the Authority. 

17 (g) ANNUAL REPORT TO CONGRESS.—The Authority 

18 shall annually provide a report to Congress evaluating the 

19 effectiveness of the Authority’s actions. 

20 (h) PRESERVATION OF AFFORDABILITY.—The Au21 thority may monitor the affordability of homeownership 

22 and adopt internal policies or recommend congressional 

23 action, as needed, to preserve affordability. 


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1 SEC. 7. REQUIREMENTS FOR SOCIAL HOUSING PROVIDERS. 

2 (a) DEFINITION.—In this section, the term ‘‘social 

3 housing provider’’ means— 

4 (1) the Authority acting pursuant to section 

5 6(b)(2); and 

6 (2) an eligible entity, with respect to real prop7 erty acquired under section 6(c)(1)(A). 

8 (b) GENERAL APPLICABILITY.—A social housing pro9 vider that makes social housing available for rent shall 

10 comply with the requirements of this section. 

11 (c) ACCESSIBILITY AND AFFORDABILITY STAND12 ARDS.—The Authority shall establish affordability and ac13 cessibility standards for social housing, which shall— 

14 (1) ensure that units of social housing, in the 

15 aggregate, are truly financially accessible to families 

16 at a range of income levels, including— 

17 (A) families who are homeless or at risk18 of homelessness; and 

19 (B) extremely low-income families, low-in20 come families, and moderate-income families; 

21 (2) ensure that not less than 40 percent of 

22 dwelling units are set aside for extremely low-income 

23 families in newly constructed units of permanently 

24 affordable social housing or other housing units pre25 served or rehabilitated as permanently affordable so26 cial housing; 


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1 (3) ensure that not less than 70 percent of 

2 dwelling units are set aside for low-income families 

3 and extremely low-income families; and 

4 (4) take into consideration— 

5 (A) requirements for affordable housing 

6 under other programs for assistance for afford7 able housing; 

8 (B) Federal income thresholds in section 

9 215(a) of the Cranston-Gonzalez National Af10 fordable Housing Act (42 U.S.C. 12745(a)); 

11 (C) neighborhood-scale rental markets, 

12 which may include Small Area Fair Market 

13 Rent standards published by the Department; 

14 and 

15 (D) household financial expenditures, bur16 dens, or costs, and historical legacies of exclu17 sion, due to which the Secretary may establish 

18 new, comprehensive income thresholds, more 

19 generous than the thresholds described in sub20 clause (II) as reasonably feasible and in accord21 ance with financial sustainability. 

22 (d) RENTS.— 

23 (1) INITIAL RENT.—A social housing provider 

24 shall set the initial annual rent plus the sum of fees 

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•S 5078 IS

1 able social housing at 25 percent of the adjusted 

2 gross income of the household. 

3 (2) INCREASES.—An increase in rent for a 

4 property described in paragraph (1) may not exceed 

5 the lesser of— 

6 (A) 3 percent per year; or 

7 (B) the percentage increase (if any) in the 

8 Consumer Price Index since the previous rent 

9 increase. 

10 (3) RECALIBRATION.—Rent for a property de11 scribed in paragraph (1) shall be recalibrated to 25 

12 percent of the household’s adjusted gross income— 

13 (A) not less frequently than once every 5 

14 years; 

15 (B) when the household’s adjusted gross 

16 income, as defined by the Secretary, changes by 

17 10 percent or more; and 

18 (C) when the household requests a re19 calibration due to economic hardship under a 

20 process established by the Authority. 

21 (4) PUBLIC HOUSING RENTAL GUIDELINES AND

22 FORMULA.—The rental guidelines and formula de23 scribed in section 3(a) of the United States Housing 

24 Act of 1937 (42 U.S.C. 1437a(a)) shall supersede 

25 paragraphs (1), (2), and (3) of this subsection with 


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1 respect to rent for a real property conveyed to a 

2 public housing agency under section 7(c) for use and 

3 operation as public housing. 

4 (e) RESIDENT, APPLICANT, AND TENANT PROTEC5 TIONS.— 

6 (1) IN GENERAL.—A social housing provider 

7 shall comply with the resident, applicant, and tenant 

8 protections under this subsection. 

9 (2) JUST-CAUSE EVICTIONS.— 

10 (A) IN GENERAL.—A social housing pro11 vider may not terminate or refuse to renew a 

12 tenancy except for just cause and only pursuant 

13 to advance written notice to the tenant and evi14 dence of such just cause, in accordance with 

15 this subparagraph. 

16 (B) DEFINITION OF JUST CAUSE.—For the 

17 purposes of this paragraph, the term ‘‘just 

18 cause’’ means— 

19 (i) at-fault just case, as described in 

20 subparagraph (C); or 

21 (ii) no-fault just cause, as described in 

22 subparagraph (D). 

23 (C) AT-FAULT JUST-CAUSE.— 


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•S 5078 IS

1 (i) GROUNDS.—For purposes of this 

2 paragraph, at-fault just cause grounds for 

3 eviction are any of the following: 

4 (I) The tenant’s failure to pay 

5 rent. 

6 (II) The tenant’s engagement in 

7 serious criminal activity on the prem8 ises that poses an imminent and di9 rect threat to the health or safety of 

10 other tenants. 

11 (III) The tenant causing substan12 tial damage to the premises after 

13 being issued a written notice to cor14 rect the violation. 

15 (IV) The tenant maintaining, 

16 committing, or permitting the mainte17 nance or commission of a nuisance at 

18 the property. 

19 (V) The tenant permitting the 

20 premises to be used for a criminal 

21 purpose. 

22 (VI) The tenant’s refusal to exe23 cute the social housing provider’s re24 quest for a written extension or re25 newal of a lease based on terms simiVerDate Sep 11 2014 04:35 Sep 21, 2024 Jkt 049200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S5078.IS S5078

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•S 5078 IS

1 lar to the terms of the tenant’s prior 

2 lease without an unreasonable rent in3 crease. 

4 (VII) The tenant’s refusal to de5 liver possession of the premises after 

6 providing written notice to the social 

7 housing provider of the intent to ter8 minate the tenancy and after the so9 cial housing provider’s acceptance of 

10 that notice. 

11 (ii) NOTICE.— 

12 (I) NOTICE OF VIOLATION.—Be13 fore a social housing provider issues a 

14 notice to terminate a tenancy for at15 fault just cause based on a curable 

16 lease violation, as defined by the Au17 thority, the social housing provider 

18 shall first give the tenant written no19 tice of the violation and the oppor20 tunity to cure the violation within a 

21 reasonable period of time, subject to 

22 the time periods specified in para23 graph (10)(A). 

24 (II) NOTICE OF TERMINATION OF

25 TENANCY.—If a tenant does not cure 


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•S 5078 IS

1 a violation within the reasonable pe2 riod of time set forth in a notice 

3 under subclause (I), the social housing 

4 provider may serve the tenant with a 

5 notice of termination of tenancy with6 out a further opportunity to cure the 

7 violation. 

8 (III) UNCURABLE LEASE VIOLA9 TIONS.—Nothing in this clause shall 

10 be construed to require notice in the 

11 case of an uncurable lease violation, 

12 as defined by the Authority. 

13 (iii) UNREASONABLE RENT IN14 CREASE.—For purposes of this subpara15 graph, the term ‘‘unreasonable rent in16 crease’’ means an increase in rent that ex17 ceeds the lesser of— 

18 (I) 3 percent per year; or 

19 (II) the percentage increase (if 

20 any) in the Consumer Price Index 

21 since the previous rent increase. 

22 (iv) LIMITATION.— 

23 (I) IN GENERAL.—Notwith24 standing clauses (i), (ii), and (iii), a 

25 social housing provider may not unVerDate Sep 11 2014 04:35 Sep 21, 2024 Jkt 049200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\S5078.IS S5078

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•S 5078 IS

1 fairly penalize an individual or an in2 dividual’s household based on the indi3 vidual’s criminal history or minor 

4 legal infractions. 

5 (II) AUTHORITY.—To carry out 

6 subclause (I), the Authority, acting 

7 through the Board by rulemaking 

8 after notice and an opportunity for 

9 public comment— 

10 (aa) may define what activi11 ties, crimes, and convictions, if 

12 any, may result in termination of 

13 a lease or exclusion of a resident 

14 from social housing; and 

15 (bb) shall establish inclusive 

16 procedures, policies, and regula17 tions to support the reintegration 

18 of individuals with criminal 

19 records into communities to en20 sure they have access to stable 

21 housing. 

22 (D) NO-FAULT JUST-CAUSE.— 

23 (i) GROUNDS.—For purposes of this 

24 paragraph, no-fault just cause grounds for 

25 eviction are the following: 


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•S 5078 IS

1 (I) The social housing provider 

2 intends to remove the dwelling unit 

3 from the rental market or substan4 tially remodel or demolish the dwelling 

5 unit. 

6 (II) The social housing provider 

7 is required to comply with a local or8 dinance or an order from a court or 

9 other governmental entity which re10 quires the tenant to vacate the prop11 erty. 

12 (ii) RELOCATION COSTS.—In the case 

13 of a no-fault just cause termination of ten14 ancy, the evicting social housing provider 

15 shall assist the tenant with relocation costs 

16 regardless of the tenant’s income by pro17 viding— 

18 (I) a direct payment of 1 month’s 

19 rent; or 

20 (II) a written waiver of the ten21 ant’s last month of rent. 

22 (E) NO WAIVER OF RIGHTS.—Any waiver 

23 of rights provided by this paragraph shall be 

24 void. 


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•S 5078 IS

1 (3) PROHIBITING DISCRIMINATION ON THE

2 BASIS OF SOURCE OF INCOME.— 

3 (A) PROHIBITION.—The Authority shall 

4 ensure that with respect to any unit of perma5 nently affordable social housing, no person may 

6 engage in any conduct because of the source of 

7 income of a person that would be unlawful 

8 under the Fair Housing Act (42 U.S.C. 3601 et 

9 seq.) if the conduct were engaged in because of 

10 a protected characteristic under that Act. 

11 (B) SOURCE OF INCOME.—For purposes of 

12 this subparagraph, the term ‘‘source of income’’ 

13 includes— 

14 (i) a housing voucher under section 8 

15 of the United States Housing Act of 1937 

16 (42 U.S.C. 1437f) and any form of Fed17 eral, State, or local housing assistance pro18 vided to a family or provided to a housing 

19 owner on behalf of a family, including 

20 rental vouchers, rental assistance, and 

21 rental subsidies from nongovernmental or22 ganizations; 

23 (ii) any amount received by an indi24 vidual (including any amount to which an 

25 individual is entitled for which payment is 


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•S 5078 IS

1 made to a representative payee) by reason 

2 of entitlement to— 

3 (I) a monthly benefit under title 

4 II or XVI of the Social Security Act 

5 (42 U.S.C. 401 et seq., 1381 et seq.); 

6 or 

7 (II) a benefit under the Railroad 

8 Retirement Act of 1974 (45 U.S.C. 

9 231 et seq.); 

10 (iii) income received by court order, 

11 including spousal support and child sup12 port; 

13 (iv) any payment from a trust, guard14 ian, or conservator; and 

15 (v) any other lawful source of income. 

16 (4) ADMISSIONS RESTRICTIONS.— 

17 (A) SCREENING.—A social housing pro18 vider may screen applicants for permanently af19 fordable social housing solely for the purpose of 

20 determining their ability to pay rent or other21 wise comply with the material terms of the 

22 lease, provided the screening process and cri23 teria comply with subparagraph (B). 


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•S 5078 IS

1 (B) RULES AND PROCEDURES.—A social 

2 housing provider may not discriminate in a 

3 manner prohibited by— 

4 (i) section 804 of the Fair Housing 

5 Act (42 U.S.C. 3604); or 

6 (ii) section 701(a) of the Equal Credit 

7 Opportunity Act (15 U.S.C. 1691(a)). 

8 (5) PROHIBITED BASES OF DISCRIMINATION.— 

9 A social housing provider may not implement any 

10 rules or procedures that deny or discriminate 

11 against an eligible applicant for permanently afford12 able social housing solely on the basis of— 

13 (A) irrelevant criminal history, in accord14 ance with the final rule of the Department enti15 tled ‘‘Reducing Barriers to HUD-Assisted 

16 Housing’’, published in the Federal Register on 

17 April 10, 2024 (89 Fed. Reg. 25332); 

18 (B) credit history; or 

19 (C) any other information that is not di20 rectly related to, or directly predictive of, an ap21 plicant’s ability to pay rent or otherwise comply 

22 with the material terms of the lease. 

23 (6) DEMOCRATIC CONTROL.—In the case of so24 cial housing that is a multifamily rental property, 

25 tenants shall have control of living and operating 


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•S 5078 IS

1 conditions in the property through a democratically 

2 elected resident organization, board, or council. 

3 (7) RESIDENT ASSOCIATIONS AND TENANT OR4 GANIZATIONS.—Residents of permanently affordable 

5 social housing shall have the right to organize to 

6 form resident associations and tenant organizations 

7 with automatic bargaining rights to address issues 

8 related to their living environment. 

9 (8) RIGHT TO RETURN WITHOUT RE-SCREEN10 ING.—A household that must relocate from a dwell11 ing unit in a property temporarily due to the 

12 Authority’s acquisition, rehabilitation, or demolition 

13 of the property shall have a right to return to the 

14 property and shall not be excluded from occupancy 

15 based on any re-screening, income eligibility, or in16 come targeting. 

17 (9) PHASED-IN RENT INCREASE.—In the case 

18 of a household occupying a dwelling unit in a prop19 erty that initially is not social housing and has a 

20 rent lower the maximum rental allowed under sub21 section (d), upon conversion of the property to per22 manently affordable social housing, the social hous23 ing provider shall phase in any potential rent in24 crease at a rate that does not exceed, over any 5- 

25 year period, 10 percent each year. 


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•S 5078 IS

1 (10) RESIDENT PROCEDURAL RIGHTS IN

2 LEASES.— 

3 (A) IN GENERAL.—A lease for occupancy 

4 of a dwelling unit in permanently affordable so5 cial housing shall incorporate each item under 

6 this paragraph. 

7 (B) TERMINATION NOTIFICATION.—The 

8 social housing provider shall provide adequate 

9 written notice of termination of the lease, 

10 which— 

11 (i) except as provided in clause (ii), 

12 may not be fewer than 30 days; or 

13 (ii) if a tenant is engaging in serious 

14 criminal activity on the premises that 

15 poses an imminent and direct threat to the 

16 health and safety of other tenants, may 

17 not exceed 30 days. 

18 (C) GRIEVANCE PROCESS.— 

19 (i) OPPORTUNITY FOR INFORMATION

20 HEARING.—For any dispute, termination 

21 of assistance, eviction, or other adverse de22 terminations related to a resident’s ten23 ancy, welfare, or status, the social housing 

24 provider shall provide the resident an op25 portunity for an informal hearing. 


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•S 5078 IS

1 (ii) NOTICE OF OPPORTUNITY TO RE2 QUEST INFORMAL HEARING.—A social 

3 housing provider shall provide residents 

4 notice of the opportunity to request an in5 formal hearing described in clause (i). 

6 (iii) RULE OF CONSTRUCTION.—This 

7 subparagraph shall not provide any right 

8 to an informal hearing for a class griev9 ance or to settle a dispute between resi10 dents not involving the social housing pro11 vider. 

12 (f) ADDITIONAL REQUIREMENTS FOR SOCIAL HOUS13 ING PROVIDERS.— 

14 (1) WAITING LIST.— 

15 (A) IN GENERAL.— 

16 (i) ESTABLISHMENT OF WAITING

17 LISTS AND RESIDENT SELECTION AND

18 TRANSFER POLICY.— 

19 (I) WAITING LISTS.—The Au20 thority shall establish— 

21 (aa) a waiting list for all so22 cial housing; or 

23 (bb) a waiting list for each 

24 social housing site. 


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•S 5078 IS

1 (II) RESIDENT SELECTION AND

2 TRANSFER POLICY.—The Authority 

3 shall establish a resident selection and 

4 transfer policy under which individ5 uals on an existing waiting list main6 tained by a public housing agency 

7 may be transferred to a waiting list 

8 established under subclause (I). 

9 (ii) PRIORITY FOR RESIDENTS OF OC10 CUPIED PROPERTIES TO RESIDE IN PROP11 ERTY.—In the case of an occupied prop12 erty that is converted to social housing, ex13 isting tenants shall receive priority to live 

14 in the social housing. 

15 (iii) PUBLIC HOUSING.—The Author16 ity shall determine the best policies and 

17 procedures to transition applicants from 

18 any public housing waiting list to a social 

19 housing waiting list established under 

20 clause (i)(I), and shall consider— 

21 (I) transferring applicants from 

22 an existing site-based public housing 

23 waiting list to a new site-based social 

24 housing waiting list; 


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•S 5078 IS

1 (II) transferring applicants from 

2 an existing site-based public housing 

3 waiting list to a waiting list for all so4 cial housing; 

5 (III) transferring an existing 

6 community-wide public housing wait7 ing list to a different community-wide 

8 social housing waiting list; and 

9 (IV) informing applicants on a 

10 community-wide public housing wait11 ing list how to transfer their applica12 tion to 1 or more newly created site13 based social housing waiting lists. 

14 (B) MEANS OF CONTACT.—The owner of a 

15 real property being converted to permanently 

16 affordable social housing and the social housing 

17 provider may determine the most appropriate 

18 means of informing applicants on any public 

19 housing or social housing community-wide wait20 ing list in the community in which the property 

21 is located about the opportunity to apply for, or 

22 be transferred to a waiting list for, the new so23 cial housing, given the number of applicants, 

24 available resources, and the admissions require25 ments of the property, including— 


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•S 5078 IS

1 (i) contacting each applicant on the 

2 waiting list by direct mail or email; 

3 (ii) advertising the availability of 

4 housing to the population that is less likely 

5 to apply, both minority and non-minority 

6 groups, through various forms of media 

7 within the marketing area, such as radio 

8 stations, posters, and newspapers; 

9 (iii) informing local nonprofit entities 

10 and advocacy groups, such as disability 

11 rights groups; and 

12 (iv) conducting other outreach as ap13 propriate. 

14 (C) REQUIREMENTS.— 

15 (i) PERSONS WITH DISABILITIES OR

16 LIMITED ENGLISH PROFICIENCY.—Any ac17 tivity by a social housing provider to con18 tact applicants on a public housing waiting 

19 list or social housing waiting list shall be 

20 conducted in a manner that ensures— 

21 (I) effective communication with 

22 persons with disabilities; and 

23 (II) meaningful access for per24 sons with limited English proficiency 


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•S 5078 IS

1 (which may include communications 

2 in languages other than English). 

3 (ii) SITE-BASED WAITING LIST.— 

4 When using a site-based waiting list, a so5 cial housing provider shall consider waiting 

6 list and transfer policies that expand op7 portunities for tenants seeking an emer8 gency transfer under, or consistent with, 

9 the owner’s emergency transfer plan, and 

10 allowing for easier moves between assisted 

11 properties. 

12 (D) ADMINISTRATION.—After the initial 

13 waiting list has been established for a social 

14 housing property, the social housing provider 

15 shall administer the waiting list in a manner 

16 that facilitates the fair and uniform treatment 

17 of applicants for, residents of, and units at the 

18 property, in accordance with all applicable civil 

19 rights and fair housing laws and regulations. 

20 (2) ACCESS TO RECORDS.—A social housing 

21 provider shall cooperate with any reasonable re22 quests for information made by the Authority (if ap23 plicable), an applicant, or a resident, including to 

24 support the permanently affordable social housing 


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•S 5078 IS

1 program evaluation, and including project financial 

2 statements, operating data, and rehabilitation work. 

3 (3) OPERATING BUDGET.—A social housing 

4 provider that is an eligible entity shall— 

5 (A) submit to the Authority annually an 

6 operating budget for the permanently affordable 

7 social housing and such other information as 

8 the Authority considers necessary to assess the 

9 financial health of the permanently affordable 

10 social housing; and 

11 (B) determine annually whether the per12 manently affordable social housing— 

13 (i) is generating excess cash that shall 

14 be reinvested or returned to the Authority; 

15 or 

16 (ii) is in need of operating assistance, 

17 including adequate capitalization of re18 serves for replacement, from the Authority. 

19 (4) REINVESTMENT OF SURPLUS.—A social 

20 housing provider shall prioritize any reinvestment of 

21 surplus operating funds for social housing dwelling 

22 units for families whose household incomes are at or 

23 below 30 percent of area median income. 

24 (5) ECONOMIC OPPORTUNITIES FOR LOW- AND

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•S 5078 IS

1 manently affordable social housing shall be consid2 ered a program that provides housing and commu3 nity development assistance for purposes of section 

4 3 of the Housing and Urban Development Act of 

5 1968 (12 U.S.C. 1701u). 

6 (g) PRIVATE RIGHT OF ACTION.—A tenant of a per7 manently affordable social housing who is charged a rent 

8 that exceeds the amount permitted under subsection (d) 

9 or who is evicted in violation of subsection (e) may bring 

10 in an appropriate district court of the United States a civil 

11 action to obtain injunctive relief, compensatory damages 

12 and punitive damages, or such other relief as the court 

13 may consider to be appropriate. 

14 SEC. 8. LABOR AND BUY AMERICA PROVISIONS. 

15 (a) IN GENERAL.—In carrying out their respective 

16 authorities under this Act, the Authority and each eligible 

17 entity — 

18 (1) shall ensure that construction materials and 

19 manufactured products used are— 

20 (A) substantially manufactured, mined, 

21 and produced in the United States in accord22 ance with section 8302 of title 41, United 

23 States Code (including the amendments to that 

24 section made by the Build America, Buy Amer25 ica Act (subtitle A of title IX of division G of 


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•S 5078 IS

1 the Infrastructure Investment and Jobs Act (41 

2 U.S.C. 8301 note; Public Law 117–58))); and 

3 (B) to protect workers and residents, in4 cluded in the Recommendations of Specifica5 tions, Standards, and Ecolabels for Federal 

6 Purchasing list (or a successor document) de7 veloped under the Environmentally Preferable 

8 Purchasing Program of the Environmental Pro9 tection Agency; 

10 (2) shall ensure that all laborers and mechanics 

11 employed by contractors or subcontractors in the 

12 performance of construction, prosecution, comple13 tion, or repair work carried out, in whole or in part, 

14 with assistance made available under this Act, in15 cluding negotiable instruments described in section 

16 4(d), shall be paid wage rates not less than those 

17 prevailing on projects of a similar character in the 

18 locality, as determined by the Secretary of Labor, in 

19 accordance with subchapter IV of chapter 31 of title 

20 40, United States Code; 

21 (3) with respect to any construction project for 

22 which the total estimated cost of the construction is 

23 $25,000,000 or more, shall ensure each contractor 

24 and subcontractor engaged in the construction on 

25 the project agrees, for the project, to negotiate or 


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•S 5078 IS

1 become a party to a project labor agreement as that 

2 term is defined in section 22.502 of title 48, Code 

3 of Federal Regulations (as in effect on the date of 

4 enactment of this Act); 

5 (4) may not hire employees through a tem6 porary staffing agency, unless the project is not 

7 being carried out under a project labor agreement 

8 and the relevant State workforce agency certifies 

9 that temporary employees are necessary to address 

10 an acute, short-term labor demand; 

11 (5) shall implement measures to ensure that 

12 outreach and recruitment efforts extend to local and 

13 underrepresented communities, including through 

14 support for pre-apprenticeship programs or the 

15 adoption of local hire provisions to the extent per16 mitted by law; 

17 (6) shall adopt— 

18 (A) an explicit policy on any issue involv19 ing the organization of employees, including the 

20 employees of all contractors and subcontractors 

21 engaged in the construction on the project, for 

22 purposes of collective bargaining, not to deter 

23 the employees with respect to— 

24 (i) labor organizing for the employees 

25 engaged; and 


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•S 5078 IS

1 (ii) the employees’ choice to form and 

2 join labor organizations; 

3 (B) such policies that require— 

4 (i) the posting and maintenance of no5 tices in the workplace to notify the employ6 ees of their rights under the National 

7 Labor Relations Act (29 U.S.C. 151 et 

8 seq.); 

9 (ii) that the employees are, at the be10 ginning of their employment, provided no11 tice and information regarding the employ12 ees’ rights under the National Labor Rela13 tions Act; and 

14 (iii) an employer to voluntarily recog15 nize a labor organization in cases where a 

16 majority of the employees have joined and 

17 requested representation; and 

18 (C) a safety and health program that in19 cludes all the core elements of a workplace safe20 ty and health program, as recommended by the 

21 Occupational Safety and Health Administra22 tion; 

23 (7) shall consider an individual performing any 

24 service for the social housing provider, a contractor, 


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•S 5078 IS

1 or subcontractor as an employee, and not an inde2 pendent contractor, unless— 

3 (A) the individual is free from control and 

4 direction in connection with the performance of 

5 the service, both under the contract for the per6 formance of the service and in fact; 

7 (B) the service is performed outside the 

8 usual course of the business of the social hous9 ing provider, contractor, or subcontractor, re10 spectively; and 

11 (C) the individual is customarily engaged 

12 in an independently established trade, occupa13 tion, profession, or business of the same nature 

14 as that involved in such service; and 

15 (8) shall ensure that the installation, operation, 

16 and maintenance of electric vehicle chargers by 

17 qualified technicians meets the standards described 

18 in section 680.106(j) of title 23, Code of Federal 

19 Regulations, or any successor regulation. 

20 (b) ACTION TO ENFORCE INDEPENDENT CON21 TRACTOR REQUIREMENT.—A third party, including a 

22 State or local government, may bring an action in any 

23 court of competent jurisdiction to enforce the requirement 

24 under subsection (a)(7). 


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•S 5078 IS

1 (c) AUTHORITY FOR CERTAIN LABOR STANDARDS.— 

2 With respect to the labor standards specified in subsection 

3 (a)(2), the Secretary of Labor shall have the authority and 

4 functions set forth in Reorganization Plan Numbered 14 

5 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 

6 of title 40, United States Code. 

7 SEC. 9. DUTY TO SERVE. 

8 (a) DUTY.—To further the purposes of this Act, the 

9 Authority shall serve rural and Native communities. 

10 (b) EVALUATION AND REPORTING OF COMPLI11 ANCE.— 

12 (1) EVALUATION METHOD.—The Authority 

13 shall, by regulation, establish effective for 2025 and 

14 each year thereafter a method for evaluating wheth15 er, and the extent to which, the Authority has com16 plied with the duty under subsection (a) and for rat17 ing the extent of such compliance. 

18 (2) ANNUAL EVALUATION.—Using the method 

19 established under paragraph (1), the Authority shall, 

20 for 2025, and each year thereafter, evaluate compli21 ance described in that subparagraph and rate its 

22 performance as to extent of compliance. 

23 (3) ANNUAL REPORT.—The Authority shall an24 nually publish and submitted to the Committee on 

25 Banking, Housing, and Urban Affairs of the Senate 


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•S 5078 IS

1 and the Committee on Financial Services of the 

2 House of Representatives a report that contains the 

3 evaluation and rating for the year as described in 

4 paragraph (2). 

5 SEC. 10. COMMUNITY AND TENANT OPPORTUNITY TO PUR6 CHASE MULTIFAMILY RENTAL PROPERTIES. 

7 (a) DEFINITIONS.—In this section: 

8 (1) APPROVED STATEMENT OF INTEREST.— 

9 The term ‘‘approved statement of interest’’, with re10 spect to a property, means a qualifying tenant orga11 nization’s statement of interest in purchasing the 

12 property that has been approved by the Authority. 

13 (2) COVERED RENTAL PROPERTY.—The term 

14 ‘‘covered rental property’’— 

15 (A) means multifamily housing that con16 tains 3 or more separate rental dwelling units 

17 and— 

18 (i) received a credit under section 41 

19 of the Internal Revenue Code of 1986 by 

20 reason of subsection (h)(4)(B) of that sec21 tion; 

22 (ii) has a mortgage made by the Sec23 retary of Agriculture under section 515 of 

24 the Housing Act of 1949 (42 U.S.C. 

25 1485); 


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•S 5078 IS

1 (iii) has a distressed or nonperforming 

2 mortgage loan held by the Federal Na3 tional Mortgage Association or the Federal 

4 Home Loan Mortgage Authority; 

5 (iv) secures a mortgage loan issued by 

6 a member institution of a Federal Home 

7 Loan Bank; or 

8 (v) has a federally insured mortgage 

9 and has an organization of tenants that 

10 has demonstrated an interest in, and main11 tained an approved statement of interest 

12 in, purchasing, subject to the application 

13 process and procedures determined by the 

14 Authority; and 

15 (B) does not include a student housing 

16 dormitory. 

17 (3) FIRST-LOOK AND FIRST OPPORTUNITY TO

18 PURCHASE PERIOD.—The term ‘‘first-look and first 

19 opportunity to purchase period’’ means the 30-day 

20 period described in subsection (d)(1)(A). 

21 (4) NOTICE PERIOD.—The term ‘‘notice period’’ 

22 means the 90-day period described in subsection 

23 (c)(2)(A). 


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•S 5078 IS

1 (5) QUALIFYING TENANT ORGANIZATION.—The 

2 term ‘‘qualifying tenant organization’’ means an in3 corporated tenant organization. 

4 (b) EXCLUDED PROPERTY TRANSFERS.—This sec5 tion does not apply to— 

6 (1) any transfer by devise or intestacy or any 

7 other transfer made in connection with a bona fide 

8 effort to pass an interest in real property to one’s 

9 devisees or heirs (including such a transfer made in 

10 connection with a living trust); or 

11 (2) any transfer between or among spouses, do12 mestic partners, siblings (including half-siblings, 

13 step-siblings, and adoptive siblings), parents (includ14 ing step-parents and adoptive parents) or guardians 

15 and their children, grandparents and their grand16 children, aunts or uncles and their nieces or neph17 ews, great-aunts or great-uncles and their grand18 nieces or grand-nephews, or first or second cousins, 

19 or any combination thereof. 

20 (c) OBLIGATION TO PROVIDE NOTICE OF INTENT TO

21 SELL.— 

22 (1) IN GENERAL.—The owner of a covered rent23 al property shall provide written notice to tenants 

24 and the Authority of the owner’s interest in selling, 

25 transferring, assigning, or conveying the property or 


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•S 5078 IS

1 the mortgage on the property, as soon as is prac2 ticable in good faith. 

3 (2) NOTICE PERIOD; PROCEDURES.—The owner 

4 of a covered rental property may not sell, transfer, 

5 assign, or convey the property or the mortgage on 

6 the property, including by means of any short sale 

7 or sale pursuant to foreclosure, unless the owner— 

8 (A) provides written notice to tenants and 

9 the Authority not later than 90 days before the 

10 property or mortgage would be sold, trans11 ferred, assigned, or conveyed; and 

12 (B) provides a first look, opportunity to 

13 purchase, and right of first refusal to purchase 

14 the property in accordance with the procedures 

15 and requirements under subsection (d). 

16 (d) ADDITIONAL OBLIGATIONS.— 

17 (1) FIRST-LOOK AND FIRST OPPORTUNITY TO

18 PURCHASE PERIOD.— 

19 (A) IN GENERAL.—During the 30-day pe20 riod beginning on the day after the last day of 

21 the notice period, the owner of the covered rent22 al property shall provide eligible entities the 

23 first opportunity to purchase the property. 

24 (B) PRIORITY FOR ELIGIBLE ENTITIES.— 

25 The owner of the covered rental property may 


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1 not offer the covered rental property for sale to 

2 any other purchaser, solicit any offer or bid to 

3 purchase the covered rental property, or other4 wise enter into a contract for the transfer, sale, 

5 assignment, or conveyance of the covered rental 

6 property until after the end of the first-look and 

7 first opportunity to purchase period. 

8 (2) PRIORITY OF FIRST LOOK AND OPPOR9 TUNITY TO PURCHASE.— 

10 (A) IN GENERAL.—Any eligible entity 

11 wishing to take advantage of the priority grant12 ed under paragraph (1) with respect to a cov13 ered rental property shall provide a notice of 

14 offer of sale by the end of the first-look and 

15 first opportunity to purchase period. 

16 (B) ORDER OF PRIORITY.—The owner of 

17 covered rental property shall consider offers de18 scribed in subparagraph (A) according to the 

19 following order of priority: 

20 (i) An offer from a qualifying tenant 

21 organization that was incorporated before 

22 the notice period and that has a current, 

23 approved statement of interest in pur24 chasing the covered rental property. 


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1 (ii) An offer from a qualifying tenant 

2 organization that was incorporated during 

3 the notice period. 

4 (iii) An offer from an eligible entity 

5 that a qualifying tenant organization of the 

6 covered rental property has endorsed. 

7 (iv) An offer from an eligible entity 

8 that a qualifying tenant organization of the 

9 covered rental property has not endorsed. 

10 (3) RIGHT OF FIRST REFUSAL.—After the 

11 owner of a covered rental property complies with 

12 subsection (c) and paragraphs (1) and (2) of this 

13 subsection, if the owner does not sell the covered 

14 rental property to an eligible entity under such para15 graph (2) and instead opts to make the covered 

16 rental property available for sale to a third party, in17 cluding by means of any short sale or sale pursuant 

18 to foreclosure, any eligible entity shall have the right 

19 to match any third-party offer (referred to in this 

20 subsection as the ‘‘right of first refusal’’. 

21 (4) FAILURE TO SELL.—If the owner of a cov22 ered rental property does not enter into a sales con23 tract during the 1-year period beginning on the date 

24 on which the right of first refusal under paragraph 

25 (3) is triggered, the obligation to provide notice of 


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1 the interest and intent to sell under subsection (c) 

2 shall renew, and the owner may not sell the property 

3 except pursuant to subsection (c) and this sub4 section. 

5 (e) RIGHTS OF TENANTS.— 

6 (1) TENANT NOTIFICATION.—The owner of a 

7 covered rental property, in notifying the tenants of 

8 the covered rental property of the interest of the 

9 owner in selling, transferring, assigning, or con10 veying the property or the mortgage on the property 

11 under subsection (c), shall provide the notice in an 

12 accessible manner that clearly outlines the process 

13 under this section and available resources. 

14 (2) TENANT OPPORTUNITY TO PURCHASE.— 

15 Not later than the first day of the first-look and 

16 first opportunity to purchase period, the owner of a 

17 covered rental property shall notify tenants of the 

18 opportunity to purchase the covered rental property 

19 in an accessible manner that clearly outlines their 

20 rights and the resources available under this section 

21 to support a purchase. 

22 (3) TENANT NOTIFICATION OF OFFERS.—The 

23 owner of a covered rental property shall notify the 

24 tenants of the property of each offer to purchase the 

25 property made by an eligible entity. 


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1 (4) TENANT ORGANIZATIONS.— 

2 (A) RIGHT TO PURCHASE ONLY AS ORGA3 NIZATION.—Nothing in subsection (d) shall be 

4 construed to provide the right to purchase a 

5 covered rental property to an individual tenant. 

6 (B) TECHNICAL ASSISTANCE.—As part of 

7 the technical assistance provided under section 

8 6(d) and subsection (g) of this section, the Au9 thority shall provide resources to expedite the 

10 incorporation of tenant organizations to better 

11 allow tenants to participate in the process for 

12 purchase of a covered rental property under 

13 subsection (d) of this section, including pre-no14 tification tenant training especially in areas at 

15 high risk for displacement. 

16 (5) ESTABLISHMENT OF RESIDENT-OWNED CO17 OPERATIVE OR COMMUNITY LAND TRUST.—A quali18 fying tenant organization that wishes to purchase a 

19 covered rental property under this section shall es20 tablish a resident-owned cooperative or community 

21 land trust to purchase the covered rental property. 

22 (6) RIGHTS AFTER PURCHASE.—If a qualifying 

23 tenant organization purchases a covered rental prop24 erty under this section, the subsequent resident orVerDate Sep 11 2014 04:35 Sep 21, 2024 Jkt 049200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\S5078.IS S5078

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1 ganization may resell the property to an eligible enti2 ty. 

3 (7) ENDORSEMENTS.—A qualifying tenant or4 ganization for a covered rental property may endorse 

5 an eligible entity’s offer of sale for purposes of the 

6 order of priority under subsection (d)(2)(B), by a 

7 majority vote of tenants and subject to procedures 

8 outlined by the Authority. 

9 (8) REPRESENTATIVES.—A qualifying tenant 

10 organization may retain a legal representative to act 

11 as an agent of the qualifying tenant organization for 

12 purposes of this section. 

13 (9) CONVEYANCE OF RIGHTS.—A tenant of a 

14 covered rental property may not assign, transfer, 

15 sell, or convey the rights afforded to the tenant 

16 under this section. 

17 (f) RESPONSIBILITIES OF ALL INTERESTED PAR18 TIES.—For purposes of this section, an eligible entity, in19 cluding a qualifying tenant organization and a legal rep20 resentative of a qualifying tenant organization, and an 

21 owner of a covered rental property shall negotiate in good 

22 faith and communicate within reasonable timeframes. 

23 (g) ROLE OF AUTHORITY.— 

24 (1) IN GENERAL.—The Authority shall— 


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1 (A) establish an Office of Community and 

2 Tenant Opportunity to Purchase Act to provide 

3 direct technical assistance and grants for tech4 nical assistance to eligible entities, and legal 

5 representatives of qualifying tenant organiza6 tions, in order to support and enhance the abil7 ity of eligible entities, including qualifying ten8 ant organizations, to make purchases under this 

9 section; 

10 (B) establish an application process, proce11 dures, and requirements for qualifying tenant 

12 organizations to establish and maintain a state13 ment of interest in purchasing a covered rental 

14 property; and 

15 (C) finance purchases made by eligible en16 tities under this section, consistent with the 

17 purposes of section 5. 

18 (2) APPLICATION FOR STATEMENT OF INTER19 EST IN PURCHASING.—The application for a quali20 fying tenant organization to establish a statement of 

21 interest in purchasing a covered rental property shall 

22 include such information as the Authority deter23 mines appropriate. 

24 (3) PRIORITIES.—In the funding of purchases 

25 made under this section or the approval of a qualiVerDate Sep 11 2014 04:35 Sep 21, 2024 Jkt 049200 PO 00000 Frm 00084 Fmt 6652 Sfmt 6201 E:\BILLS\S5078.IS S5078

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1 fying tenant organization’s statement of interest in 

2 purchasing a covered rental property, the Authority 

3 may prioritize based on the following factors: 

4 (A) The affordable housing needs of a re5 gion or State. 

6 (B) The potential number of permanently 

7 affordable housing units. 

8 (C) The feasibility of a project. 

9 (D) The opportunity to improve the condi10 tion and quality of housing for extremely low11 income families or low-income families. 

12 (E) The pressures of displacement and the 

13 opportunity to preserve naturally occurring af14 fordable housing. 

15 (F) Any factors related to the purposes or 

16 powers of the Authority. 

17 (4) NONCOMPLIANCE REGULATIONS.—The Au18 thority shall promulgate regulations establishing 

19 penalties for noncompliance under this section and 

20 appropriate financial penalties to enforce this sec21 tion. 

22 (5) GENERAL REGULATIONS.—The Authority— 

23 (A) shall promulgate regulations necessary 

24 to carry out this section; and 


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1 (B) in conjunction with the Secretary and 

2 State and local housing agencies, shall promul3 gate regulations to carry out this section with 

4 respect to purchases made by eligible entities. 

5 SEC. 11. MAXIMUM CONTINGENT LIABILITY. 

6 (a) IN GENERAL.—The maximum contingent liability 

7 of the Authority outstanding at any time may not exceed 

8 in the aggregate the applicable amount under subsection 

9 (b). 

10 (b) AMOUNT SPECIFIED.— 

11 (1) INITIAL 5-YEAR PERIOD.—For purposes of 

12 subsection (a), the applicable amount for the 5-year 

13 period beginning on the date of the enactment of 

14 this Act is $150,000,000,000. 

15 (2) SUBSEQUENT 5-YEAR PERIODS.—Not later 

16 than 5 years after the date of enactment of this Act, 

17 and not less frequently than once every 5 years 

18 thereafter, the Board shall adjust the amount speci19 fied in paragraph (1) to reflect the percentage in20 crease (if any) in the Consumer Price Index since 

21 the previous adjustment under this paragraph. 

22 SEC. 12. AUTHORITY FUNDS. 

23 (a) DEFINITIONS.—In this section: 

24 (1) COST.—The term ‘‘cost’’, with respect to a 

25 direct loan or loan guarantee, has the meaning given 


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1 the term in section 502 of the Federal Credit Re2 form Act of 1990 (2 U.S.C. 661a); and 

3 (2) DIRECT LOAN.—The term ‘‘direct loan’’ has 

4 the meaning given the term in section 502 of the 

5 Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 

6 (3) LOAN GUARANTEE.—The term ‘‘loan guar7 antee’’ has the meaning given the term in section 

8 502 of the Federal Credit Reform Act of 1990 (2 

9 U.S.C. 661a). 

10 (4) PROJECT-SPECIFIC TRANSACTION COSTS.— 

11 (A) IN GENERAL.—The term ‘‘project-spe12 cific transaction costs’’— 

13 (i) means the costs incurred by the 

14 Authority for travel and legal expenses and 

15 direct and indirect costs incurred by the 

16 Authority in claims settlements; and 

17 (ii) does not include the costs of infor18 mation technology (as that term is defined 

19 in section 11101 of title 40, United States 

20 Code). 

21 (B) TREATMENT.—Project-specific trans22 action costs shall not be considered administra23 tive expenses for the purposes of this section. 

24 (b) AUTHORITY CAPITAL ACCOUNT.—There is estab25 lished in the Treasury of the United States a fund to be 


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1 known as the ‘‘Authority Capital Account’’ to carry out 

2 the purposes of the Authority. 

3 (c) FUNDING.—The Authority Capital Account shall 

4 consist of— 

5 (1) fees charged and collected under subsection 

6 (d); 

7 (2) any amounts received under subsection (f); 

8 (3) investments and returns on investments 

9 under subsection (h); 

10 (4) payments received in connection with sales 

11 and other business of the Authority; 

12 (5) any proceeds from bonds sold under section 

13 4(d); 

14 (6) any amounts appropriated to the Authority 

15 Capital Account; and 

16 (7) all other collections transferred to or earned 

17 by the Authority, excluding the cost of direct loans 

18 and loan guarantees. 

19 (d) FEE AUTHORITY.—The Authority may charge 

20 and collect fees for providing services in amounts to be 

21 determined by the Board. 

22 (e) USE OF AUTHORITY CAPITAL ACCOUNT.—The 

23 Authority may use amounts in the Authority Capital Ac24 count to carry out the purposes described in section 5, 

25 including for— 


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1 (1) the cost of direct loans and loan guarantees; 

2 (2) administrative expenses of the Authority; 

3 (3) for the cost of providing support authorized 

4 by section 6; 

5 (4) project-specific transaction costs; 

6 (5) payment of all insurance and reinsurance 

7 claims of the Authority; 

8 (6) repayments to the Treasury of the United 

9 States of amounts borrowed under subsection (f); 

10 and 

11 (7) dividend payments to the Treasury of the 

12 United States under subsection (g). 

13 (f) AUTHORITY TO BORROW.—The Authority may 

14 borrow from the Treasury of the United States such sums 

15 as may be necessary to fulfill obligations of the Authority 

16 and any such borrowing shall be at a rate determined by 

17 the Secretary of the Treasury, taking into consideration 

18 the current average market yields on outstanding market19 able obligations of the United States of comparable matu20 rities, for a period jointly determined by the Authority and 

21 the Secretary of the Treasury, and subject to such terms 

22 and conditions as the Secretary of the Treasury may re23 quire. 

24 (g) DIVIDENDS.—The Board, in consultation with 

25 the Director of the Office of Management and Budget, 


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1 shall annually assess a dividend payment to the Treasury 

2 of the United States if the Authority Capital Account is 

3 more than 100 percent reserved. 

4 (h) INVESTMENT AUTHORITY.— 

5 (1) IN GENERAL.—The Authority may request 

6 the Secretary of the Treasury to invest such portion 

7 of the Authority Capital Account as is not, in the 

8 Authority’s judgement, required to meet the current 

9 needs of the Authority Capital Account. 

10 (2) FORM OF INVESTMENTS.—Investments 

11 under paragraph (1) shall be made by the Secretary 

12 of the Treasury in public debt obligations, with ma13 turities suitable to the needs of the Authority Cap14 ital Account, as determined by the Authority, and 

15 bearing interest at rates determined by the Sec16 retary of the Treasury, taking into consideration 

17 current market yields on outstanding marketable ob18 ligations of the United States of comparable matu19 rities. 

20 (i) COLLECTIONS.—Interest earned under subsection 

21 (h) and amounts, excluding fees related to insurance or 

22 reinsurance, collected under subsection (d), shall not be 

23 collected for any fiscal year except to the extent provided 

24 in advance in appropriation Acts. 


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1 SEC. 13. AUTHORIZATION OF APPROPRIATIONS FOR AU2 THORITY. 

3 (a) AUTHORITY FUNDS.—There is authorized to be 

4 appropriated to the Authority Capital Account established 

5 under section 12(b) to carry out this Act $30,000,000,000 

6 for each of fiscal years 2025 through 2035. 

7 (b) ALLOCATIONS TO INDIAN TRIBES AND TRIBALLY

8 DESIGNATED HOUSING ENTITIES.— 

9 (1) IN GENERAL.—The Authority shall allocate 

10 not less than 5 percent of amounts appropriated 

11 under subsection (a) to provide assistance to Indian 

12 Tribes and tribally designated housing entities— 

13 (A) in accordance with notice and com14 ment rulemaking procedures under section 553 

15 of title 5, United States Code; and 

16 (B) in consultation with Indian Tribes, 

17 tribally designated housing entities, and the Of18 fice of Native American Programs of the De19 partment of Housing and Urban Development. 

20 (2) SUPPLEMENT NOT SUPPLANT.—To the 

21 greatest extent possible, the allocation described in 

22 paragraph (1) shall supplement and not supplant 

23 any funding that an Indian Tribe or a tribally des24 ignated housing entity receives from a governmental 

25 source. 

26 (c) ALLOCATIONS TO RURAL COMMUNITIES.— 


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1 (1) IN GENERAL.—The Authority shall allocate 

2 not less than 10 percent of amounts appropriated 

3 under subsection (a) to provide assistance to housing 

4 entities in rural communities— 

5 (A) in accordance with notice and com6 ment rulemaking procedures under section 553 

7 of title 5, United States Code; and 

8 (B) in consultation with the Rural Housing 

9 Service of the Department of Agriculture. 

10 (2) SUPPLEMENT NOT SUPPLANT.—To the 

11 greatest extent possible, the allocation described in 

12 paragraph (1) shall supplement and not supplant 

13 any funding that a rural housing entity receives 

14 from a governmental source. 

15 SEC. 14. AUTHORIZATION OF APPROPRIATIONS FOR PUB16 LIC HOUSING BACKLOG. 

17 There is authorized to be appropriated for assistance 

18 from the Public Housing Capital Fund established under 

19 section 9(d) of the United States Housing Act of 1937 

20 (42 U.S.C. 1437g(d)) such sums as may be necessary to 

21 address the public housing capital backlog at the Depart22 ment, which amount shall remain available until expended 

23 and, notwithstanding subsections (c)(1) and (d)(2) of such 

24 section 9, shall be allocated to public housing agencies 

25 based upon the extent of the capital need of each agency, 


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1 as determined according to the most recent physical needs 

2 assessment of the agencies, with a minimum amount for 

3 each agency to be specified by the Authority. 

4 SEC. 15. REPEAL OF FAIRCLOTH AMENDMENT. 

5 Section 9(g) of the United States Housing Act of 

6 1937 (42 U.S.C. 1437g(g)) is amended by striking para7 graph (3). 

8 SEC. 16. MISCELLANEOUS. 

9 (a) SAVINGS CLAUSE.—Except as may be otherwise 

10 expressly provided in this Act, all powers and authorities 

11 conferred by this Act shall be cumulative and additional 

12 to and not in derogation of any powers and authorities 

13 otherwise existing. 

14 (b) SEVERABILITY.—If any provision of this Act, an 

15 amendment made by this Act, or the application of such 

16 provision or amendment to any person or circumstance is 

17 held to be invalid, the remainder of this Act and the 

18 amendments made by this Act, and the application of the 

19 provision or amendment to any other person or cir20 cumstance, shall not be affected. 

21 (c) EFFECTIVE DATE; INTERIM APPOINTMENTS.— 

22 This Act shall take effect on the date that is 60 days after 

23 the date of enactment of this Act, or on such earlier date 

24 as the President shall specify by Executive order published 

25 in the Federal Register, except that any of the officers 


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1 provided for in section 4(c) may be nominated and ap2 pointed, as provided in that section, at any time after the 

3 date of enactment. 

4 (d) DESIGNATION OF TEMPORARY OFFICERS.— 

5 (1) IN GENERAL.—If 1 or more officers re6 quired by this Act to be appointed by the President, 

7 by and with the advice and consent of the Senate, 

8 have not entered office as of the effective date of 

9 this Act under subsection (c), the President may 

10 designate any person who was an officer of the De11 partment as of the day before that effective date to 

12 serve in that office in an acting capacity until the 

13 earlier of— 

14 (A) the date on which the office is filled as 

15 provided in this Act; or 

16 (B) the date that is 60 days after the ef17 fective date. 

18 (2) COMPENSATION.—While serving in an office 

19 in an acting capacity as described in paragraph (1), 

20 a person shall receive compensation at the rate pro21 vided by this Act for that office. 

Æ 


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