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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2172 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 2172

    To provide for response to Hurricane Katrina by establishing a 
  Louisiana Recovery Corporation, providing for housing and community 
                  rebuilding, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           December 21, 2005

 Ms. Landrieu introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
    To provide for response to Hurricane Katrina by establishing a 
  Louisiana Recovery Corporation, providing for housing and community 
                  rebuilding, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hurricane Katrina Response Act''.

                TITLE I--LOUISIANA RECOVERY CORPORATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Louisiana Recovery Corporation 
Act''.

SEC. 102. ESTABLISHMENT OF CORPORATION.

    (a) In General.--There is hereby established the Louisiana Recovery 
Corporation (hereafter in this title referred to as the 
``Corporation'').
    (b) Status of Corporation.--The Corporation shall be an independent 
establishment in the executive branch and shall be deemed to be an 
agency of the United States for purposes of subchapter II of chapter 5 
and chapter 7 of title 5, United States Code.
    (c) Principal Office.--The principal office of the Corporation 
shall be located in the State of Louisiana, but there may be 
established agencies or branch offices in the District of Columbia and 
in any municipality or parish in Louisiana to the extent provided for 
in the by-laws of the Corporation.
    (d) Corporate Divisions.--
            (1) In general.--At a minimum, the Corporation shall 
        establish and maintain separate divisions for the following 
        subjects:
                    (A) Environment and Land Use Management.
                    (B) Economic Development.
                    (C) Property Acquisition.
                    (D) Property Management.
                    (E) Property Disposition.
                    (F) Urban Homesteading and Community and Faith-
                Based Organizations.
            (2) Management of divisions.--Management of each division 
        shall be vested in an executive vice president who shall be 
        appointed by the Board of Directors.
    (e) Property Owners' Rights and Protections.--
            (1) No authority to exercise eminent domain.--The 
        Corporation shall have no authority to acquire interests in 
        property by eminent domain.
            (2) No coercion of property owners.--Any contract entered 
        into between a property owner and the Corporation shall not be 
        enforceable if such property owner was subject to undue 
        coercion on the part of the Corporation.
            (3) Property owner's right to ``opt out''.--No provision of 
        this title shall be construed as denying any property owner the 
        right to opt out of any dealings with the Corporation, subject 
        to the terms of any contract or agreement previously entered 
        into.
            (4) Local invitation.--Notwithstanding any other provision 
        of this title, the Corporation may take no action in any 
        municipality or parish unless the local government of such 
        municipality or parish has adopted a resolution of invitation 
        for the Corporation's assistance.

SEC. 103. MANAGEMENT.

    (a) Board of Directors.--
            (1) In general.--The management of the Corporation shall be 
        vested in a Board of Directors consisting of 7 individuals 
        appointed by the President as follows from among individuals 
        who are citizens of the United States and who, by virtue of 
        their education, training or experience in environmental land 
        reclamation, economic development, housing development, land 
        use, or urban planning, are especially qualified to serve on 
        the Board of Directors.
            (2) Nominations by governor of louisiana.--3 of the members 
        of the Board of Directors shall be appointed under paragraph 
        (1) from among individuals who are nominated for appointment by 
        the Governor of Louisiana.
            (3) Political affiliation.--Not more than 4 of the members 
        of the Board of Directors may be members of the same political 
        party.
            (4) Quorum.--4 members of the Board of Directors shall 
        constitute a quorum but a lesser number may hold hearings.
    (b) Chairperson and Vice Chairperson.--
            (1) Chairperson.--1 of the 4 members of the Board of 
        Directors who were not nominated by the Governor of Louisiana 
        shall be designated by the President, by and with the advice 
        and consent of the Senate, to serve as Chairperson of the Board 
        of Directors and the chief executive officer of the 
        Corporation.
            (2) Vice chairperson.--1 of the 3 members of the Board of 
        Directors who were nominated by the Governor of Louisiana shall 
        be designated by the President to serve as Vice Chairperson of 
        the Board of Directors.
            (3) Acting chairperson.--In the event of a vacancy in the 
        position of Chairperson of the Board of Directors or during the 
        absence or disability of the Chairperson, the Vice Chairperson 
        shall act as Chairperson and the chief executive officer of the 
        Corporation.
    (c) Terms.--
            (1) In general.--Each member of the Board of Directors 
        shall be appointed to a term of 5 years.
            (2) Staggered terms.--Of the members first appointed to the 
        Board of Directors after the date of the enactment of this 
        Act--
                    (A) 2 shall be appointed for a term of 5 years (1 
                of whom shall be the member designated as the 
                Chairperson);
                    (B) the 3 members who were nominated by the 
                Governor of Louisiana shall be appointed for a term of 
                3 years; and
                    (C) 2 shall be appointed for a term of 2 years.
            (3) Interim appointments.--Any member appointed to fill a 
        vacancy occurring before the expiration of the term for which 
        such member's predecessor was appointed shall be appointed only 
        for the remainder of such term.
            (4) Continuation of service.--The Chairperson, Vice 
        Chairperson, and each appointed member may continue to serve 
        after the expiration of the term of office to which such member 
        was appointed until a successor has been appointed and 
        qualified.
            (5) Removal for cause.--The Chairperson, Vice Chairperson, 
        and any appointed member may be removed by the President for 
        cause.
            (6) Full-time service.--The members of the Board of 
        Directors shall serve on a full-time basis.
    (d) Vacancy.--Any vacancy on the Board of Directors shall be filled 
in the manner in which the original appointment was made.
    (e) Ineligibility for Other Offices.--
            (1) Other government positions.--No person may serve as a 
        member of the Board of Directors while holding any position as 
        an officer or employee of the Federal Government, any State 
        government, or any political subdivision of any State.
            (2) Restriction during service.--No member of the Board of 
        Directors may--
                    (A) be an officer or director of any insured 
                depository institution, insured credit union, 
                depository institution holding company, Federal reserve 
                bank, Federal home loan bank, investment bank, mortgage 
                bank, real estate development company, realtor, or any 
                other entity which enters into any contract with the 
                Corporation; or
                    (B) hold stock in any insured depository 
                institution, depository institution holding company, 
                investment bank, mortgage bank, real estate development 
                company, realtor, or any other entity which enters into 
                any contract with the Corporation.
            (3) Certification.--Upon taking office, each member of the 
        Board of Directors shall certify under oath that such member 
        has complied with this subsection and such certification shall 
        be filed with the secretary of the Board of Directors.
    (f) Clarification of Nonliability.--
            (1) In general.--A director, member, officer, or employee 
        of the Corporation has no liability under the Securities Act of 
        1933 with respect to any claim arising out of or resulting from 
        any act or omission by such person within the scope of such 
        person's employment in connection with any transaction 
        involving the acquisition or disposition of assets (or any 
        interests in any assets or any obligations backed by any 
        assets) by the Corporation. This subsection shall not be 
        construed to limit personal liability for criminal acts or 
        omissions, willful or malicious misconduct, acts or omissions 
        for private gain, or any other acts or omissions outside the 
        scope of such person's employment.
            (2) Effect on other law.--This subsection shall not be 
        construed as--
                    (A) affecting--
                            (i) any other immunities and protections 
                        that may be available to person to whom 
                        paragraph (1) applies under applicable law with 
                        respect to such transactions, or
                            (ii) any other right or remedy against the 
                        Corporation, against the United States under 
                        applicable law, or against any person other 
                        than a person described in paragraph (1) 
                        participating in such transactions; or
                    (B) limiting or altering in any way the immunities 
                that are available under applicable law for Federal 
                officials and employees not described in this 
                subsection.
    (g) Local Development Plans; a Community-Based Collaborative 
Approach.--
            (1) Establishment of local advisory council.--
                    (A) In general.--
                            (i) Parishes and larger municipalities.--
                        Not later than 30 days after the date of the 
                        adoption of a resolution of invitation 
                        described in section 102(e)(4), any parish (or 
                        any municipality of over 25,000 people) in the 
                        affected area may designate an entity to serve 
                        in an advisory capacity to the Corporation.
                            (ii) Other parishes and municipalities.--
                        For any parish or municipality that does not 
                        designate an advisory entity under clause (i), 
                        the Corporation shall provide for the 
                        establishment of a local advisory council in 
                        each parish of the State of Louisiana in which 
                        the Corporation operates.
                    (B) Membership.--Each local advisory council shall 
                consist of such local elected officials (including 
                municipal officials), community groups (such as 
                homeowners and community associations), and other 
                interested, qualified, groups as the Corporation may 
                determine to be appropriate.
                    (C) Consultation.--The Corporation shall consult 
                with each local advisory council concerning all actions 
                and projects of the Corporation that affect any portion 
                of the parish for which such council is appointed. The 
                Corporation shall also ensure that its consultations 
                involve a broad range of local officials and community 
                groups, including those that are not part of the formal 
                advisory council. The Corporation shall hold public 
                meetings, periodically and in advance of major 
                decisions, in the affected parishes to receive input 
                from the affected communities.
            (2) Local development plans.--In executing the 
        redevelopment mandate under this title, the Corporation--
                    (A) shall take into account and comply with any 
                redevelopment plan established by State and local 
                government officials; and
                    (B) may only solicit bids for such redevelopment 
                that are based on and comply with a plan developed by 
                local governments, if such a plan exists.
    (h) Appearances Before the Congress.--The Chairperson of the Board 
of Directors shall appear before the Committee on Financial Services of 
the House of Representatives annually regarding all aspects of the 
operation and financing of the Corporation, together with such other 
members of the Board of Directors as the Committee may require.

SEC. 104. CAPITALIZATION OF THE CORPORATION.

    (a) In General.--The Corporation shall have capital stock 
subscribed to by the United States Government in such amount as the 
President may determine to be appropriate.
    (b) Certificates.--Certificates evidencing shares of nonvoting 
capital stock of the Corporation shall be issued by the Corporation to 
the President of the United States, or to such other person or persons 
as the President may designate from time to time, to the extent of 
payments made for the capital stock of the Corporation.
    (c) Public Debt Transaction.--For the purpose of purchasing shares 
of capital stock of the Corporation, the Secretary of the Treasury may 
use as a public-debt transaction the proceeds of any securities issued 
under chapter 31 of title 31, United States Code.
    (d) Reports.--
            (1) In general.--The Board of Directors shall submit to the 
        Director of the Office of Management and Budget and to the 
        Secretary of the Treasury quarterly reports and an annual 
        report on the expenses of the Corporation during the period 
        covered by the report, the financial condition of the 
        Corporation as of the end of such period, the results of the 
        Corporation's operations during such period, and the progress 
        made during such period in fulfilling the mission and purposes 
        of the Corporation, together with a copy of the Corporation's 
        financial operating plans and forecasts for the annual or 
        quarterly period (as the case may be) succeeding the period 
        covered by the report.
            (2) Public availability.--Each report submitted to the 
        Director of the Office of Management and Budget and to the 
        Secretary of the Treasury under paragraph (1) shall be made 
        available to the public.
    (e) Termination of Authority to Issue Stock.--No shares of capital 
stock of the Corporation may be issued after the end of the 10-year 
period beginning on the date of the enactment of this Act.
    (f) Revenue Used to Retire Stock.--Any net revenue of the 
Corporation in excess of amounts required to meet on-going expenses and 
investments shall be paid to the Secretary of the Treasury to redeem 
the capital stock of the Corporation and shall be deposited in the 
general fund of the Treasury.
    (g) Authorization of Appropriations.--Of any amounts previously 
appropriated for ``Disaster Relief'' under the Emergency Preparedness 
and Response account of the Department of Homeland Security that remain 
available, $100,000,000 shall be available, subject to approval in 
advance in appropriation Acts, to the Corporation for fiscal year 2006 
as start-up funding for the Corporation.
    (h) Limitation on Capital Stock of Corporation.--At no time may the 
capital stock issued by the Corporation exceed $30,000,000,000.

SEC. 105. MISSION, PURPOSE, AND DUTIES OF THE CORPORATION.

    (a) Mission.--The primary mission and purpose of the Corporation 
shall be the economic stabilization and redevelopment of areas within 
Louisiana that were devastated or significantly distressed by Hurricane 
Katrina or Hurricane Rita.
    (b) Economic Stabilization.--In executing its economic 
stabilization mandate, the Corporation shall, after consultation with 
State and local officials and pursuant to agreement that eligible 
properties are not likely to be redeveloped without Corporation 
assistance, locate and acquire real property (commercial and 
residential) in such a manner and subject to such conditions that the 
rights of property owners and occupants under this title have been 
provided, and such that, upon the consummation of any acquisition of 
real property securing a mortgage loan--
            (1) the mortgagee's debt shall be considered paid in full 
        by the mortgagor; and
            (2) all title and interest in the real property securing 
        such mortgage loan passes to the Corporation.
    (c) Redevelopment.--In executing its redevelopment mandate, the 
Corporation shall, after consultation with State and local officials, 
carry out the following activities:
            (1) Package for sale acquired real property in substantial 
        tracts of land.
            (2) Make improvements to such tracts of land so as to make 
        the land suitable for sale and development, including such 
        basic improvements as the following:
                    (A) Construction and reconstruction of neighborhood 
                roads.
                    (B) Repair or replacement of water and wastewater 
                infrastructure.
                    (C) Similar activities necessary to maximize the 
                return on acquired real property.
            (3) Through a competitive bidding process, dispose of such 
        acquired properties in a profitable manner.
            (4) In consultation with State and local officials, provide 
        for the protection and preservation of historical and other 
        sites of cultural significance in such a manner that promotes 
        local heritage and interest.
            (5) Utilize state of the art community design techniques 
        and planning that maximize community involvement, minimize 
        commute times, and give appropriate consideration to green 
        space and the natural environment.
            (6) Seek to ensure equitable treatment among communities 
        and areas.
    (d) Office of Internal Audit.--
            (1) Establishment.--The Board of Directors shall establish 
        an audit committee, to be known as the Office of Internal 
        Audit.
            (2) Reports.--The Office of Internal Audit shall report to 
        the Board of Directors no less than 4 times a year on the 
        Office's reviews of the activities, contracts, and financial 
        statements of the Corporation.
            (3) Employees.--The Office of Internal Audit shall set the 
        compensation and benefits for the employees of the Office.
            (4) Relationship to inspector general.--Notwithstanding any 
        provision of the Inspector General Act of 1978, the Board of 
        Directors shall provide for the Inspector General to report to 
        the Office of Internal Audit and to the Board of Directors.
    (e) Inspector General.--For purposes of the Inspector General Act 
of 1978--
            (1) the Board of Directors shall be treated as the head of 
        the establishment; and
            (2) the Corporation shall be treated as the establishment.

SEC. 106. PROPERTY ACQUISITION AUTHORITY AND METHODOLOGY.

    (a) In General.--Pursuant to section 105(b), the Corporation shall 
negotiate to acquire title to real property and compensate any property 
owner, mortgagee or primary lien holder with an interest in such real 
property.
    (b) Purchase Offer for Real Property Secured by a Lien.--The 
Corporation shall take into consideration the following in constructing 
offers of compensation for the acquisition of real property secured by 
a lien:
            (1) The Corporation's expenses to improve the property for 
        sale and development.
            (2) The Corporation's anticipated return upon the 
        property's disposition.
            (3) The remaining principle balance of any outstanding 
        mortgage.
            (4) In accordance with subsection (h), the equity position 
        of the owner in the property immediately before the area in 
        which such property is located was devastated or significantly 
        distressed by Hurricane Katrina or Hurricane Rita and the 
        appropriate loss share factor for such property (as determined 
        under subsection (g)(2)).
            (5) Any potential net loss to the Corporation, and 
        indirectly to the taxpayers, upon final disposition of the 
        property.
    (c) Purchase From Owner.--The Corporation shall take into 
consideration the following in constructing offers of compensation for 
any real property where no lien secures such real property:
            (1) The Corporation's expenses to improve the property for 
        sale and development.
            (2) The Corporation's anticipated return upon the 
        property's disposition.
            (3) In accordance with subsection (h), the equity position 
        of the owner in the property immediately before the area in 
        which such property is located was devastated or significantly 
        distressed by Hurricane Katrina or Hurricane Rita and the 
        appropriate loss share factor for such property (as determined 
        under subsection (g)(2)).
            (4) Any potential net loss to the Corporation, and 
        indirectly to the taxpayers, upon final disposition of the 
        property.
    (d) Right of First Refusal and Option to Repurchase Real 
Property.--
            (1) In general.--Subject to paragraph (2), the Corporation 
        shall ensure that any entity awarded a contract under section 
        107 shall grant a right of first refusal and option to obtain 
        an interest in real property of comparable size and location in 
        redeveloped areas to any party previously holding title.
            (2) Guidelines for exercise.--
                    (A) In general.--The Corporation shall--
                            (i) ensure that the right of first refusal 
                        and option to obtain an interest in real 
                        property that are granted pursuant to paragraph 
                        (1) are granted before the real property is 
                        listed for public sale; and
                            (ii) shall establish guidelines to provide 
                        that any party receiving the option to obtain 
                        an interest in real property is given adequate 
                        time to consider and exercise such option.
                    (B) Maximum price.--In no case shall the 
                Corporation extend the right of first refusal to the 
                property owner for more than 25 percent of the 
                Corporation's original purchase price, plus the 
                Corporation's transactional and improvement costs.
    (e) Right to Retain an Interest in Real Property.--
            (1) Property owner or mortgagee right to retain interest.--
        The Corporation shall offer any property owner or mortgagee an 
        option to retain an interest in real property of comparable 
        size and location, subject to the following conditions:
                    (A) The Corporation shall pay no compensation to 
                the property owner or mortgagee.
                    (B) The property owner or mortgagee shall 
                compensate the Corporation for expenses to improve the 
                property for sale and development when such property 
                owner or mortgagee obtains construction financing for 
                development of the property.
            (2) Requirement to develop property.--Any property owner or 
        mortgagee exercising a right to retain interest in a property 
        shall--
                    (A) obtain construction financing within 90 days of 
                notification by the Corporation that the area in which 
                the property owner or mortgagee retains an interest is 
                available for development; and
                    (B) complete construction of a replacement 
                residential or commercial structure, as applicable, 
                within 2 years of a notification pursuant to 
                subparagraph (A).
            (3) Contract terms and enforcement.--
                    (A) Contract required.--In any case in which a 
                property owner or mortgagee exercises a right to retain 
                interest in a property, the rights and responsibilities 
                of the Corporation and the property owner or mortgagee 
                shall be fully detailed in a contract.
                    (B) Terms to be included.--Among such other terms 
                as may be agreed upon by the parties, any contract 
                described in subparagraph (A) shall include the 
                following provisions:
                            (i) A mechanism that allows the Corporation 
                        to take control of the property for a set price 
                        and to receive compensation for any expenses 
                        incurred by the Corporation if a breach of 
                        contract by the property owner or mortgagee 
                        occurs.
                            (ii) A requirement that--
                                    (I) the property owner or mortgagee 
                                reimburse the Corporation for such 
                                owner's or mortgagee's pro rata share 
                                of the costs associated with making the 
                                property suitable for development; and
                                    (II) such reimbursement be made 
                                within 90 days of the property owner or 
                                mortgagee having been notified by a 
                                developer that the property is now 
                                available for redevelopment.
                            (iii) A requirement that the development of 
                        the property be completed by the property owner 
                        or mortgagee within at least 2 years from the 
                        time such owner or mortgagee is notified by the 
                        developer that the property is now available 
                        for redevelopment.
                            (iv) A mitigation notice and review 
                        procedure that meets the requirement of 
                        subparagraph (C).
                    (C) Mitigation notice and review procedure.--
                            (i) Notice.--If the Corporation certifies 
                        in writing that a property owner or mortgagee 
                        has failed to comply with the requirements of 
                        paragraph (2), the Corporation shall provide an 
                        opportunity for such owner or mortgagee to 
                        inform the Corporation of mitigating 
                        circumstances to provide a justification for 
                        such failure.
                            (ii) Review and relief.--The Corporation 
                        may modify the terms of the contract to provide 
                        relief for the property owner or mortgagee if 
                        the Corporation, in the sole discretion of the 
                        Corporation and after review of the mitigating 
                        circumstances provided under clause (i) 
                        determines that such relief is warranted.
            (4) Obligation of subsequent owners upon sale by owner.--If 
        a property owner enters into a contract with the Corporation 
        under this subsection with respect to an interest of such owner 
        in property and subsequently alienates or disposes of such 
        interest, or any portion of such interest, in property, any 
        continuing obligation of the property owner under the contract 
        runs with the interest in property to the successor owner or 
        holder of such interest or portion of an interest in the 
        property.
    (f) Calculation of Expenses and Potential Net Loss.--
            (1) Determination of expenses.--In determining the 
        Corporation's expenses for the purposes or making purchase 
        offers under subsection (b) or (c) or seeking reimbursement 
        from a property owner under subsection (d), the Corporation 
        shall not seek to recover costs for which it has been 
        reimbursed from other sources.
            (2) Determination of potential loss.--In determining the 
        potential net loss to the Corporation under subsections (b)(5) 
        and (c)(4), the Corporation shall seek to provide equitable 
        treatment of property owners without regard to the specific 
        property or area or the level of interest in redevelopment that 
        property or area.
    (g) Arbitration.--
            (1) In general.--If a property owner has any dispute with 
        regard to the amount and terms of an offer for the property of 
        such owner by the Corporation or the valuation of the property, 
        an arbitration process established in accordance with paragraph 
        (2) may be invoked by the property owner.
            (2) Arbitration process.--The arbitration process 
        established under this subsection shall provide for--
                    (A) the selection of a neutral arbitrator selected 
                by both parties from among individual appraisers who, 
                by virtue of their education, training, and experience, 
                are specially qualified with regard to arbitration and 
                appraisals of Louisiana real estate values prior to 
                August 28, 2005;
                    (B) the use by the arbitrator of the same criteria 
                as the Corporation under this title; and
                    (C) the payment of the costs of the process by the 
                Corporation.
            (3) Corporation.--For a period of 60 days after the 
        determination of the arbitrator, the Corporation shall honor 
        the terms of the determination of the arbitrator.
            (4) Property owner.--The property owner may reject the 
        offer of the Corporation and the determination of the 
        arbitrator, without penalty, at any time before a binding 
        contract is entered into.
    (h) Limitations on Payment; Prohibition Against Windfall; Loss 
Sharing.--
            (1) In general.--In constructing and extending offers to 
        acquire real property, or any mortgage on such property, under 
        this section, the Corporation shall ensure that--
                    (A) in no case may the cumulative payment by the 
                Corporation to any individual for the purposes of 
                acquiring real property exceed $750,000, or a maximum 
                of $1,500,000 for real property that is zoned for 
                commercial use;
                    (B) in no case may any person be the beneficiary of 
                a windfall gain as a result of any purchase offer 
                extended by the Corporation;
                    (C) in no case may the cumulative payment by the 
                Corporation to any individual be less than 80 percent 
                of the individual's equity as established pursuant to 
                subsection (i);
                    (D) in no case may the cumulative payment by the 
                Corporation to any lien holder on any individual lien 
                exceed 60 percent of the value of that lien; and
                    (E) in no case may the Corporation make offers for 
                the purchase of foreclosed property.
            (2) Loss sharing.--In order to limit the losses and 
        expenses of the Corporation and any potential cost to the 
        taxpayers, any offer made by the Corporation under this section 
        to any property owner or mortgagee with respect to any interest 
        in property or any mortgage shall include an appropriate 
        reduction such that an equitable and negotiable portion of any 
        loss with respect to such property or mortgage is shared by the 
        owner and any mortgagee.
    (i) Factors to Be Considered in Determining Equity Position of the 
Owner.--In making any determination concerning the equity position of 
an owner of property immediately before the area in which such property 
is located was devastated or significantly distressed by Hurricane 
Katrina or Hurricane Rita for purposes of subsections (b) and (c), the 
Corporation shall consider all of the following:
            (1) A pre-event appraisal in a verifiable loan record held 
        by a federally insured depository institution, federally 
        insured credit union, or housing-related Government-sponsored 
        enterprise.
            (2) The pre-event assessed value on record by a unit of 
        local government that serves as the basis for determining 
        property taxes.
            (3) The pre-event fair market value as would be determined 
        under existing federal hazard mitigation programs as authorized 
        under the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act and the National Flood Insurance Act (such as 
        the Hazard Mitigation Program, Pre-Disaster Mitigation Program, 
        and the Flood Mitigation Assistance Program).
            (4) Any other evidence of pre-event valuation that the 
        Corporation finds is sufficiently reliable and subject to 
        adequate verification, including methods of valuation 
        considered to be commercially reasonable and broadly used in 
        real estate dealings.
    (j) Property Owner's Right To Receive Information.--A property 
owner who receives an offer from the Corporation shall at the time of 
that offer also receive a disclosure statement showing the analysis 
undertaken by the Corporation under subsection (b) or (c).

SEC. 107. ASSET DISPOSITION AUTHORITY AND METHODOLOGY.

    (a) Disposition of Property.--Pursuant to section 105(c), the 
Corporation shall dispose of property through a competitive bidding 
process under which purchasers are selected based on an ability to meet 
select criteria established by the Corporation, which shall include the 
following:
            (1) Capacity to oversee major development projects through 
        a community-based collaborative process.
            (2) Commitment of private capital.
            (3) Effective deployment of Federal National Mortgage 
        Association, Federal Home Loan Mortgage Corporation, Federal 
        home loan bank, and other Federal or State resources (such as 
        low-income housing tax credits, new markets tax credits, the 
        HOPE VI program, enterprise zones, and the Historically 
        Underutilized Business Zones or section 8(a) Programs of the 
        Small Business Administration) to ensure construction of 
        affordable housing.
            (4) Use of private contractors and subcontractors.
            (5) Use of local corporations and local employees.
            (6) Use of small, disadvantaged business enterprise 
        contractors or subcontractors.
            (7) Scale of development and job creation.
            (8) Increased homeownership.
    (b) Urban Homestead Program.--The Corporation shall assist in the 
implementation of an urban homestead program by providing the 
following:
            (1) Land to the Federal Government for development as urban 
        homesteads.
            (2) Down payment assistance and other seed money to enable 
        homestead construction.
            (3) Coordination with not-for-profit and faith-based 
        organizations in the construction and development of urban 
        homesteads.
    (c) Other Disposition.--The Corporation shall ensure that acquired 
property not made available for an urban homestead shall be disposed of 
in a manner that maximizes the return on the sale of acquired property 
to retire debt attributable to the Corporation, subject to the 
requirement that in each jurisdiction in which the Corporation 
operates, the Corporation's disposition of property substantially 
maintains the number of affordable housing units available before 
Hurricanes Rita and Katrina.
    (d) Accounting Requirements.--
            (1) Accounting for holding and managing assets and 
        liabilities.--The Corporation shall keep a full and complete 
        accounting of all costs and expenses associated with the 
        holding and management of any asset or liability acquired by 
        the Corporation in carrying out the duties of the Corporation 
        under this title.
            (2) Accounting for disposition of assets and liabilities.--
        The Corporation shall keep a full and complete accounting of 
        all expenses and receipts associated with the disposition of 
        any asset or liability acquired by the Corporation in carrying 
        out the duties of the Corporation under this title.
    (e) Utilization of Private Sector.--In carrying out its 
responsibilities in the management and disposition of assets under this 
title, the Corporation shall utilize the services of private persons, 
including real estate and loan portfolio asset management, property 
management, auction marketing, legal, and brokerage services, only if 
such services are available in the private sector and the Corporation 
determines utilization of such services is the most practicable, 
efficient, and cost effective.

SEC. 108. POWERS OF THE CORPORATION.

    (a) Powers.--The Corporation shall be a body corporate that shall 
have the power to--
            (1) adopt, alter, and use a corporate seal;
            (2) provide for such other officers and employees as may be 
        necessary to perform the functions of the Corporation, define 
        their duties, and require surety bonds or make other provisions 
        against losses occasioned by acts of such persons;
            (3) fix the compensation and number of, and appoint, 
        employees for any position established by the Corporation, 
        without regard to the provisions of chapter 51 or subchapter 
        III of chapter 53 of title 5;
            (4) sue and be sued, and complain and defend, by and 
        through its own attorneys, in any court of law or equity, State 
        or Federal;
            (5) with the consent of any executive agency, department, 
        or independent agency utilize the information, services, staff, 
        and facilities of such department or agency, on a reimbursable 
        (or other) basis, in carrying out this section;
            (6) prescribe, by the Board of Directors, bylaws that are 
        consistent with law to provide for--
                    (A) the management and operational structure of the 
                Corporation, subject to sections 102(d) and 103;
                    (B) the manner in which general operations are to 
                be conducted; and
                    (C) such other matters as the Board of Directors 
                determines to be appropriate;
            (7) enter into contracts and modify or consent to the 
        modification of any contract or agreement;
            (8) use the United States mails in the same manner and 
        subject to the same conditions as other departments or agencies 
        of the United States; and
            (9) exercise, by the Board of Directors, or duly authorized 
        officers or agents, any and all powers established under this 
        section and such incidental powers as are necessary to carry 
        out the powers, duties, and functions of the Corporation and 
        the Board of Directors under this title.
    (b) Termination of Contract for Cause.--In the case of any service 
contract between the Corporation and any other person, the Corporation 
may terminate such contract for cause, whether by reason of breach of 
contract, violation of regulations or guidelines of the Corporation, or 
otherwise, or bar any such person from entering into any other 
contract, after notice and an opportunity for an agency hearing on the 
record.
    (c) Hearings and Sessions.--
            (1) In general.--The Corporation may, for the purposes of 
        carrying out this title, hold hearings, sit and act at times 
        and places, take testimony, and receive evidence as the 
        Corporation determines to be appropriate.
            (2) Summons.--In the course of or in connection with any 
        proceeding under this title or in connection with any claim, 
        the Corporation, or any designated representative of the 
        Corporation, including any person designated to conduct any 
        hearing under this section, shall have the power to administer 
        oaths and affirmations, to take or cause to be taken 
        depositions, and to issue, revoke, quash, or modify subpenas 
        and subpenas duces tecum; and the Corporation is empowered to 
        make rules and regulations with respect to any such 
        proceedings, claims, examinations, or investigations.
            (3) Administrative aspects of summons.--
                    (A) Production at designated site.--A summons 
                issued pursuant to this section may require that books, 
                papers, records, or other data stored or maintained at 
                any place be produced at any designated location in any 
                State or in any territory or other place subject to the 
                jurisdiction of the United States not more than 500 
                miles distant from any place where the person resides 
                or operates or conducts business in the United States.
                    (B) Fees and travel expenses.--Persons summoned 
                under this section shall be paid the same fees and 
                mileage for travel in the United States that are paid 
                witnesses in the courts of the United States.
                    (C) No liability for expenses.--The United States 
                shall not be liable for any expense, other than an 
                expense described in subparagraph (B), incurred in 
                connection with the production of books, papers, 
                records, or other data under this section.
                    (D) Service of summons.--Service of a summons 
                issued under this subsection may be by registered mail 
                or in such other manner calculated to give actual 
                notice as the Corporation may prescribe by regulation.
            (4) Contumacy or refusal.--
                    (A) In general.--In case of contumacy by a person 
                issued a summons under this subsection or a refusal by 
                such person to obey such summons, the Corporation may 
                invoke the aid of any court of the United States within 
                the jurisdiction of which--
                            (i) the investigation which gave rise to 
                        the summons is being or has been carried on;
                            (ii) the person summoned is an inhabitant; 
                        or
                            (iii) the person summoned carries on 
                        business or may be found, to compel compliance 
                        with the summons.
                    (B) Court order.--The court may issue an order 
                requiring the person summoned to appear before the 
                Corporation or a delegate of the Corporation to produce 
                books, papers, records, and other data, to give 
                testimony as may be necessary to explain how such 
                material was compiled and maintained, and to pay the 
                costs of the proceeding.
                    (C) Failure to comply with order.--Any failure to 
                obey the order of the court may be punished by the 
                court as a contempt thereof.
                    (D) Service of process.--All process in any case 
                under this paragraph may be served in any judicial 
                district in which such person may be found.
    (d) Agency Authority.--
            (1) Status.--The Corporation, in any capacity, shall be an 
        agency of the United States for purposes of section 1345 of 
        title 28 without regard to whether the Corporation commenced 
        the action.
            (2) Federal court jurisdiction.--
                    (A) In general.--All suits of a civil nature at 
                common law or in equity to which the Corporation, in 
                any capacity, is a party shall be deemed to arise under 
                the laws of the United States.
                    (B) Removal.--The Corporation may, without bond or 
                security, remove any action, suit, or proceeding from a 
                State court to the appropriate United States district 
                court before the end of the 90-day period beginning on 
                the date the action, suit, or proceeding is filed 
                against the Corporation or the Corporation is 
                substituted as a party.
                    (C) Appeal of remand.--The Corporation may appeal 
                any order of remand entered by any United States 
                district court.
            (3) Service of process.--The Board of Directors shall 
        designate agents upon whom service of process may be made in 
        Louisiana and the District of Columbia.
            (4) Bonds or fees.--The Corporation shall not be required 
        to post any bond to pursue any appeal and shall not be subject 
        to payments of any filing fees in United States district courts 
        or courts of appeal.

SEC. 109. TERMINATION OF CORPORATION.

    (a) In General.--The Corporation shall terminate at the end of the 
10-year period beginning on the date of the enactment of this Act.
    (b) Winding up the Affairs of the Corporation.--Any right, title, 
interest, or obligation of the Corporation with respect to liabilities 
or assets of the Corporation which have not been fully disposed of by 
the end of the 10-year period referred to in paragraph (1) shall 
transfer, as of the end of such period, to the Director of the Office 
of Management and Budget who shall promptly wind up the affairs of the 
Corporation and dispose of such assets and liabilities.

               TITLE II--HOUSING AND COMMUNITY REBUILDING

SEC. 201. PUBLIC HOUSING CAPITAL FUND RESERVES FOR EMERGENCIES AND 
              NATURAL DISASTERS.

    (a) Availability of Funds Set-Aside in Previous Years.--
Notwithstanding any other provision of law, any amounts set aside in 
fiscal years 2003, 2004, and 2005 for use under section 9(k) of the 
United States Housing Act of 1937 (42 U.S.C. 1437g(k)) and remaining 
unobligated on the date of the enactment of this Act shall be available 
for use under such section (not including paragraph (4) of such 
section) for emergencies and other disasters occurring in fiscal year 
2005, and shall remain available until expended.
    (b) Authorization of Appropriations.--Of any amounts previously 
appropriated for ``Disaster Relief'' under the Emergency Preparedness 
and Response account of the Department of Homeland Security that remain 
available, $100,000,000 shall be available, subject to approval in 
advance in appropriation Acts, to the Secretary of Housing and Urban 
Development for use under section 9(k) of the United States Housing Act 
of 1937 (42 U.S.C. 1437g(k)), and shall remain available until 
expended. Any amounts made available pursuant to this subsection funds 
shall be used only for activities conducted in any area for which the 
President declared a major disaster or emergency under title IV of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act in 
connection with Hurricane Katrina.

SEC. 202. HOPE VI PROGRAM.

    Of any amounts previously appropriated for ``Disaster Relief'' 
under the Emergency Preparedness and Response account of the Department 
of Homeland Security that remain available, $100,000,000 shall be 
available, subject to approval in advance in appropriation Acts, to the 
Secretary of Housing and Urban Development for grants to public housing 
agencies for demolition, site revitalization, replacement housing, and 
tenant-based assistance grants to projects, as authorized under section 
24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), and 
shall remain available until expended. Any amounts made available 
pursuant to this section shall be used only for such activities 
conducted in any area for which the President declared a major disaster 
or emergency under title IV of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act in connection with Hurricane Katrina.

SEC. 203. HOME INVESTMENT PARTNERSHIPS PROGRAM.

    Of any amounts previously appropriated for ``Disaster Relief'' 
under the Emergency Preparedness and Response account of the Department 
of Homeland Security that remain available, $1,500,000,000 shall be 
available, subject to approval in advance in appropriation Acts, to the 
Secretary of Housing and Urban Development to carry out the HOME 
Investment Partnership Program, as authorized under title II of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et 
seq.), and shall remain available until expended. Any amounts made 
available pursuant to this section shall be used only for affordable 
housing activities conducted in any area for which the President 
declared a major disaster or emergency under title IV of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act in connection 
with Hurricane Katrina.

SEC. 204. COMMUNITY DEVELOPMENT BLOCK GRANT ASSISTANCE.

    (a) Authorization of Appropriations.--Of any amounts previously 
appropriated for ``Disaster Relief'' under the Emergency Preparedness 
and Response account of the Department of Homeland Security that remain 
available, $13,000,000,000 shall be available, subject to approval in 
advance in appropriation Acts, to the Secretary of Housing and Urban 
Development for activities authorized under title I of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5301 et seq.), 
$13,000,000,000, and shall remain available until expended.
    (b) Use.--
            (1) In general.--Any amounts made available pursuant to 
        this section shall be used only for disaster relief, long-term 
        recovery, and mitigation in communities in any area for which 
        the President declared a major disaster or emergency under 
        title IV of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act in connection with Hurricane Katrina, 
        except those activities reimbursable by the Federal Emergency 
        Management Agency or available through the Small Business 
        Administration.
            (2) Projects in progress.--In the case of any project or 
        activity in an area described in paragraph (1) that was 
        underway before the Presidential declaration with respect to 
        such area, the project or activity may not be provided any 
        amounts made available under this section unless the disaster 
        or emergency for which such declaration was made directly 
        impacted the project.
            (3) Coordination with louisiana recovery corporation.--The 
        State of Louisiana shall, in making amounts available pursuant 
        to this section, coordinate with the Louisiana Recovery 
        Corporation, and may provide for the Corporation to assume the 
        responsibilities of administering a portion of the grants 
        provided under this section.
            (4) Coordination with repair and replacement of public 
        housing.--In making amounts available under this section, each 
        State shall take into account the public infrastructure needs 
        of areas in which public housing units are located which are 
        being repaired or rebuilt.
    (c) Allocation.--Any amounts made available pursuant to this 
section shall be awarded by the Secretary of Housing and Urban 
Development (in this section referred to as the ``Secretary'') to 
States (including Indian tribes for all purposes under this section) to 
be administered by each State in conjunction with its community 
development block grants program. Notwithstanding paragraph (2) of 
section 106(d) of the Housing and Community Development Act of 1974, 
States may provide assistance with amounts made available under this 
section to entitlement communities.
    (d) Waiver.--
            (1) Authority.--In administering any amounts made available 
        under this section, the Secretary may waive, or specify 
        alternative requirements for, any provision of any statute or 
        regulation that the Secretary administers in connection with 
        the obligation by the Secretary or the use by the recipient of 
        such amounts (except for requirements related to fair housing, 
        nondiscrimination, labor standards, and the environment), upon 
        a finding that such waiver is required to facilitate the use of 
        such amounts, and would not be inconsistent with the overall 
        purpose of the statute. The Secretary may waive the 
        requirements that activities benefit persons of low and 
        moderate income, except that at least 50 percent of the amounts 
        made available under this section shall benefit primarily 
        persons of low and moderate income unless the Secretary makes a 
        finding of compelling need.
            (2) Publication.--The Secretary shall publish in the 
        Federal Register any waiver of any statute or regulation 
        authorized under this subsection no later than 5 days before 
        the effective date of such waiver.

SEC. 205. EMERGENCY RENTAL ASSISTANCE VOUCHERS.

    (a) In General.--Of any amounts previously appropriated for 
``Disaster Relief'' under the Emergency Preparedness and Response 
account of the Department of Homeland Security that remain available, 
up to $2,500,000,000 shall be available, subject to approval in advance 
in appropriation Acts, to the Secretary of Housing and Urban 
Development (in this section referred to as the ``Secretary'') to 
provide up to 300,000 incremental vouchers for tenant-based rental 
housing assistance under section 8(o) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)).
    (b) Family Eligibility.--Tenant-based assistance pursuant to 
subsection (a) may be provided only on behalf of an affected family 
that is otherwise eligible for assistance under such section 8(o). 
However, the Secretary and the Federal Emergency Management Agency 
shall permit such recipients to accept additional assistance to cover 
the costs of utilities and for other purposes from private or not-for-
profit groups, without affecting their eligibility.
    (c) Administration.--Notwithstanding any other provision of law, 
the Secretary shall provide that voucher assistance provided under this 
section may be administered by faith-based organizations and community 
development corporations that have access to dwelling units in 
connection with which such voucher assistance may be used.
    (d) Affected Family.--For purposes of this section, the term 
``affected family'' means and individual or family that meets the 
following requirements:
            (1) The individual or family resided, on August 25, 2005, 
        in any area for which the President declared a major disaster 
        or emergency under title IV of the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act in connection with 
        Hurricane Katrina of 2005.
            (2) The residence of the individual or family became 
        uninhabitable or inaccessible as a result of such major 
        disaster or emergency.
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