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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3644 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 3644

To reauthorize the HOME Investment Partnerships Program, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 23, 2024

Ms. Cortez Masto (for herself, Ms. Smith, Mr. Fetterman, and Ms. Rosen) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To reauthorize the HOME Investment Partnerships Program, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``HOME Investment 
Partnerships Reauthorization and Improvement Act of 2024''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
TITLE I--REAUTHORIZATION OF AND REFORMS TO HOME INVESTMENT PARTNERSHIPS 
                                PROGRAM

Sec. 101. Reauthorization of Program.
Sec. 102. Increase in Program administration resources.
Sec. 103. Modifications of participating jurisdiction qualification 
                            threshold and process for reallocations.
Sec. 104. Modification of jurisdictions eligible for reallocations.
  TITLE II--REFORMS RELATING TO HOME INVESTMENT PARTNERSHIPS PROGRAM 
                        ADMINISTRATION AND RULES

Sec. 201. Amendments to qualification as affordable housing.
Sec. 202. Elimination of commitment deadline.
Sec. 203. Reform of homeownership resale restrictions.
Sec. 204. Home property inspections.
Sec. 205. Revisions to strengthen enforcement and penalties for 
                            noncompliance.
Sec. 206. Tenant and participant protections for small-scale affordable 
                            housing.
Sec. 207. Establishment of home loan guarantee program.
     TITLE III--REFORMS RELATING TO COMMUNITY HOUSING DEVELOPMENT 
                ORGANIZATION AND NONPROFIT PARTICIPATION

Sec. 301. Modification of rules related to community housing 
                            development organizations.
                    TITLE IV--TECHNICAL CORRECTIONS

Sec. 401. Technical corrections.

TITLE I--REAUTHORIZATION OF AND REFORMS TO HOME INVESTMENT PARTNERSHIPS 
                                PROGRAM

SEC. 101. REAUTHORIZATION OF PROGRAM.

    Section 205 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12724) is amended to read as follows:

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title--
            ``(1) $5,000,000,000 for fiscal year 2024;
            ``(2) $5,250,000,000 for fiscal year 2025;
            ``(3) $5,512,500,000 for fiscal year 2026;
            ``(4) $5,788,125,000 for fiscal year 2027; and
            ``(5) $6,077,531,250 for fiscal year 2028.''.

SEC. 102. INCREASE IN PROGRAM ADMINISTRATION RESOURCES.

    Subtitle A of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12741 et seq.) is amended--
            (1) in section 212(c) (42 U.S.C. 12742(c)), by striking 
        ``10 percent'' and inserting ``15 percent''; and
            (2) in section 220(b) (42 U.S.C. 12750(b))--
                    (A) by striking ``Recognition.--'' and all that 
                follows through ``A contribution'' and inserting the 
                following: ``Recognition.--A contribution''; and
                    (B) by striking paragraph (2).

SEC. 103. MODIFICATIONS OF PARTICIPATING JURISDICTION QUALIFICATION 
              THRESHOLD AND PROCESS FOR REALLOCATIONS.

    Section 216 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12746) is amended--
            (1) in paragraph (3)(A)--
                    (A) by striking ``(A) Except as provided in 
                paragraph (10), a jurisdiction'' and inserting the 
                following:
                    ``(A) Eligibility threshold.--
                            ``(i) In general.--Except as provided in 
                        subparagraph (B), a jurisdiction''; and
                    (B) by striking ``or if the Secretary finds that'' 
                and all that follows through the end of clause (ii) and 
                inserting the following: ``subject to clause (ii).
                            ``(ii) Inflation adjustment to eligibility 
                        threshold.--For each fiscal year after fiscal 
                        year 2024, the Secretary shall adjust the 
                        threshold amount in clause (i) for 
                        inflation.'';
            (2) in paragraph (6)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``this title, including the requirements in'' 
                after ``the requirements of''; and
                    (B) by striking ``meet the requirements'' each 
                place that term appears and inserting ``meet or comply 
                with the requirements''; and
            (3) by striking paragraph (10).

SEC. 104. MODIFICATION OF JURISDICTIONS ELIGIBLE FOR REALLOCATIONS.

    Section 217(d) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12747(d)) is amended--
            (1) in paragraph (1), by striking the second sentence and 
        inserting the following: ``Subject to paragraph (3)(A), 
        jurisdictions eligible for such reallocations shall include 
        participating jurisdictions and jurisdictions meeting the 
        requirements of this title, including the requirements in 
        paragraphs (3), (4), and (5) of section 216.''; and
            (2) in paragraph (3), by striking ``Limitation.--Unless 
        otherwise specified'' and inserting the following: 
        ``Limitations.--
                    ``(A) Removal of participating jurisdictions from 
                reallocation.--The Secretary may remove a participating 
                jurisdiction that fails to meet or comply with the 
                requirements of this title from participation in 
                reallocations of funds made available under this title.
                    ``(B) Reallocation to same type of entity.--Unless 
                otherwise specified''.

  TITLE II--REFORMS RELATING TO HOME INVESTMENT PARTNERSHIPS PROGRAM 
                        ADMINISTRATION AND RULES

SEC. 201. AMENDMENTS TO QUALIFICATION AS AFFORDABLE HOUSING.

    Section 215 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12745) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(E), by striking all that 
                follows ``purposes of this Act,'' and inserting the 
                following: ``except--
                            ``(i) upon a foreclosure by a lender (or 
                        upon other transfer in lieu of foreclosure) if 
                        such action--
                                    ``(I) recognizes any contractual or 
                                legal rights of public agencies, 
                                nonprofit sponsors, or others to take 
                                actions that would avoid termination of 
                                low-income affordability in the case of 
                                foreclosure or transfer in lieu of 
                                foreclosure; and
                                    ``(II) is not for the purpose of 
                                avoiding low-income affordability 
                                restrictions, as determined by the 
                                Secretary; or
                            ``(ii) where existing affordable housing is 
                        no longer financially viable due to unforeseen 
                        acts or occurrences beyond the reasonable 
                        contemplation or control of the participating 
                        jurisdiction or owner that significantly impact 
                        the financial or physical condition of the 
                        housing, as determined by the Secretary; and''; 
                        and
                    (B) by adding at the end the following:
            ``(7) Small-scale housing.--
                    ``(A) Definition.--In this paragraph, the term 
                `small-scale housing' means housing with not more than 
                4 rental units.
                    ``(B) Alternative requirements.--Small-scale 
                housing shall qualify as affordable housing under this 
                title if--
                            ``(i) the housing bears rents that comply 
                        with paragraph (1)(A);
                            ``(ii) each unit is occupied by a household 
                        that qualifies as a low-income family;
                            ``(iii) the housing is not refused for 
                        leasing to a holder of a voucher under section 
                        8 of the United States Housing Act of 1937 (42 
                        U.S.C. 1437f) because of the status of the 
                        prospective tenant as a holder of such voucher;
                            ``(iv) the housing meets the requirements 
                        under paragraph (1)(E); and
                            ``(v) the participating jurisdiction 
                        monitors ongoing compliance of the housing with 
                        requirements of this title in a manner 
                        consistent with the purposes of section 226(b), 
                        as determined by the Secretary.''; and
            (2) in subsection (b)(1), by striking ``95 percent'' and 
        inserting ``110 percent or a percentage established by the 
        Secretary through notice, whichever is greater,''.

SEC. 202. ELIMINATION OF COMMITMENT DEADLINE.

    (a) In General.--Section 218 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12748) is amended--
            (1) by striking subsection (g); and
            (2) by redesignating subsection (h) as subsection (g).
    (b) Conforming Amendment.--Section 218(c) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12748(c)) is amended--
            (1) in paragraph (1), by adding ``and'' at the end;
            (2) by striking paragraph (2);
            (3) by redesignating paragraph (3) as paragraph (2); and
            (4) in paragraph (2), as so redesignated, by striking 
        ``section 224'' and inserting ``section 223''.

SEC. 203. REFORM OF HOMEOWNERSHIP RESALE RESTRICTIONS.

    Section 215 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12745), as amended by section 201, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by redesignating 
                subparagraphs (A), (B), and (C) as clauses (i), (ii), 
                and (iii), respectively, and adjusting the margins 
                accordingly;
                    (B) by striking paragraph (3);
                    (C) by redesignating paragraphs (1), (2), and (4) 
                as subparagraphs (A), (B), and (D), respectively, and 
                adjusting the margins accordingly;
                    (D) by inserting after subparagraph (B), as so 
                redesignated, the following:
                    ``(C) is subject to restrictions that are 
                established by the participating jurisdiction and 
                determined by the Secretary to be appropriate, 
                including with respect to the affordability period, 
                to--
                            ``(i) require that any subsequent purchase 
                        of the property be--
                                    ``(I) only by a person who meets 
                                the qualifications specified under 
                                subparagraph (B); and
                                    ``(II) at a price that is 
                                determined by a formula or method 
                                established by the participating 
                                jurisdiction that provides the owner 
                                with a reasonable return on investment, 
                                which may include a percentage of the 
                                cost of any improvements; or
                            ``(ii) in the case of resale, recapture the 
                        investment provided under this title in order 
                        to assist other persons in accordance with the 
                        requirements of this title, except where there 
                        are no net proceeds or where the net proceeds 
                        are insufficient to repay the full amount of 
                        the assistance; and'';
                    (E) by striking ``Housing that is for 
                homeownership'' and inserting the following:
            ``(1) Qualification.--Housing that is for homeownership''; 
        and
                    (F) by adding at the end the following:
            ``(2) Purchase by community land trust.--Notwithstanding 
        subparagraph (C)(i) of paragraph (1) and under terms determined 
        by the Secretary, a participating jurisdiction may permit a 
        community land trust to purchase housing that meets the 
        criteria under that paragraph--
                    ``(A) in accordance with the terms of the 
                preemptive purchase option, lease, covenant, or other 
                legal instrument of the community land trust when the 
                terms and rights in the preemptive purchase option, 
                lease, covenant, or legal instrument are and remain 
                subject to the requirements of this title;
                    ``(B) when the purchase is for--
                            ``(i) the purpose of--
                                    ``(I) entering into the chain of 
                                title;
                                    ``(II) enabling qualified 
                                homebuyers on a waitlist to purchase;
                                    ``(III) performing necessary 
                                rehabilitation, repairs, or 
                                improvements; or
                                    ``(IV) adding a subsidy; or
                            ``(ii) another purpose determined 
                        appropriate by the Secretary; and
                    ``(C) if, within a reasonable period of time after 
                the applicable purpose under subparagraph (B) of this 
                paragraph is fulfilled, as determined by the Secretary, 
                the housing is then sold to a person who meets the 
                qualifications specified under paragraph (1)(B).
            ``(3) Suspension or waiver of requirements for military 
        members.--A participating jurisdiction, in accordance with 
        terms established by the Secretary, may suspend or waive a 
        requirement under paragraph (1)(B) with respect to housing if 
        the owner of the housing--
                    ``(A) is a member of a regular component of the 
                armed forces or a member of the National Guard on full-
                time National Guard duty, active Guard and Reserve 
                duty, or inactive-duty training (as those terms are 
                defined in section 101(d) of title 10, United States 
                Code); and
                    ``(B) has received--
                            ``(i) temporary duty orders to deploy with 
                        a military unit or military orders to deploy as 
                        an individual acting in support of a military 
                        operation, to a location that is not within a 
                        reasonable distance from the housing, as 
                        determined by the Secretary, for a period of 
                        not less than 90 days; or
                            ``(ii) orders for a permanent change of 
                        station.
            ``(4) Suspension or waiver of requirements for heir or 
        beneficiary of deceased owner.--Notwithstanding subparagraph 
        (C) of paragraph (1), housing that meets the criteria under 
        that paragraph prior to the death of an owner may continue to 
        qualify as affordable housing if--
                    ``(A) the housing is the principal residence of an 
                heir or beneficiary of the deceased owner, as defined 
                by the Secretary; and
                    ``(B) the heir or beneficiary, in accordance with 
                terms established by the Secretary, assumes the duties 
                and obligations of the deceased owner with respect to 
                funds provided under this title.''.

SEC. 204. HOME PROPERTY INSPECTIONS.

    Section 226(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12756(b)) is amended--
            (1) by striking ``Each participating jurisdiction'' and 
        inserting the following:
            ``(1) In general.--Each participating jurisdiction''; and
            (2) by striking ``Such review shall include'' and all that 
        follows and inserting the following:
            ``(2) On-site inspections.--
                    ``(A) Inspections by units of general local 
                government.--A review conducted under paragraph (1) by 
                a participating jurisdiction that is a unit of general 
                local government shall include an on-site inspection to 
                determine compliance with housing codes and other 
                applicable regulations.
                    ``(B) Inspections by states.--A review conducted 
                under paragraph (1) by a participating jurisdiction 
                that is a State shall include an on-site inspection to 
                determine compliance with a national standard as 
                determined by the Secretary.
            ``(3) Inclusion in performance report and publication.--A 
        participating jurisdiction shall include in the performance 
        report of the participating jurisdiction submitted to the 
        Secretary under section 108(a), and make available to the 
        public, the results of each review conducted under paragraph 
        (1).''.

SEC. 205. REVISIONS TO STRENGTHEN ENFORCEMENT AND PENALTIES FOR 
              NONCOMPLIANCE.

    Section 223 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12753) is amended--
            (1) in the heading, by striking ``penalties for misuse of 
        funds'' and inserting ``program enforcement and penalties for 
        noncompliance'';
            (2) in the matter preceding paragraph (1), by inserting 
        after ``any provision of this subtitle'' the following: ``, 
        including any provision applicable throughout the period 
        required by section 215(a)(1)(E) and applicable regulations,'';
            (3) in paragraph (2), by striking ``or'' at the end;
            (4) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (5) by adding at the end the following:
            ``(4) reduce payments to the participating jurisdiction 
        under this subtitle by an amount equal to the amount of such 
        payments which were not expended in accordance with this 
        title.''.

SEC. 206. TENANT AND PARTICIPANT PROTECTIONS FOR SMALL-SCALE AFFORDABLE 
              HOUSING.

    Section 225 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12755) is amended by adding at the end the following:
    ``(e) Tenant Selection for Small-Scale Housing.--Paragraphs (2) 
through (4) of subsection (d) shall not apply to the owner of small-
scale housing (as defined in section 215(a)).''.

SEC. 207. ESTABLISHMENT OF HOME LOAN GUARANTEE PROGRAM.

    Subtitle A of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12741 et seq.) is amended by adding at the end 
the following:

``SEC. 227. GUARANTEE AND COMMITMENT TO GUARANTEE LOANS FOR ACQUISITION 
              OF PROPERTY.

    ``(a) Authority.--
            ``(1) In general.--The Secretary may, under such terms and 
        conditions as the Secretary may prescribe, guarantee and make 
        commitments to guarantee, only to such extent or in such 
        amounts as provided in appropriation Acts, the notes or 
        obligations issued by participating jurisdictions for the 
        purposes of financing the development or preservation of 
        affordable rental and homeownership housing through the 
        acquisition, new construction, reconstruction, or moderate or 
        substantial rehabilitation of affordable housing.
            ``(2) Eligible expenses.--When in support of the activities 
        described in paragraph (1), the expenses for which the 
        Secretary may guarantee and make commitments to guarantee notes 
        or obligations under that paragraph include real property 
        acquisition, site improvement, conversion, demolition, and 
        other expenses, including financing costs and relocation 
        expenses of any displaced person, family, or business.
    ``(b) Limitations and Requirements.--
            ``(1) Eligibility.--A guarantee under this section may be 
        used to assist a participating jurisdiction in obtaining 
        financing only if the participating jurisdiction--
                    ``(A) has made efforts to obtain such financing 
                without the use of the guarantee, as determined by the 
                Secretary; and
                    ``(B) cannot complete such financing consistent 
                with the timely execution of the project plans without 
                the guarantee, as determined by the Secretary.
            ``(2) Form, denominations, maturities, and conditions.--
        Notes or other obligations guaranteed under this section shall 
        be in such form and denominations, have such maturities, and be 
        subject to such conditions as may be prescribed by regulations 
        issued by the Secretary.
            ``(3) Repayment period.--The Secretary may not deny a 
        guarantee under this section on the basis of the proposed 
        repayment period for the note or other obligation unless--
                    ``(A) the period is more than 20 years; or
                    ``(B) the Secretary determines that the period 
                causes the guarantee to constitute an unacceptable 
                financial risk.
            ``(4) Aggregate principal amount.--Notwithstanding any 
        other provision of law and subject only to the absence of 
        qualified applicants or proposed activities and to the 
        authority provided in this section, to the extent approved or 
        provided in appropriation Acts, the Secretary shall enter into 
        commitments to guarantee notes and obligations under this 
        section with an aggregate principal amount of not more than--
                    ``(A) $2,000,000,000 for fiscal year 2023; and
                    ``(B) for each subsequent fiscal year, an amount 
                that is increased for inflation as determined by the 
                Secretary.
    ``(c) Prerequisites.--The Secretary may not make a guarantee or 
commitment to guarantee with respect to any note or other obligation 
if--
            ``(1) the total outstanding notes or obligations of the 
        issuer guaranteed under this section would thereby exceed an 
        amount equal to 5 times the most recent allocation for the 
        issuer under this title; or
            ``(2) the Secretary determines that the guarantee 
        constitutes an unacceptable risk.
    ``(d) Payment of Principal, Interest, and Costs.--Notwithstanding 
any other provision of this Act, a participating jurisdiction allocated 
funds under this Act may use the funds (including program income 
derived therefrom) for the payment of principal and interest due 
(including such servicing, underwriting, or other costs as may be 
specified in regulations of the Secretary), and any associated fee to 
be paid in accordance with subsection (k), on a note or other 
obligation guaranteed under this section.
    ``(e) Repayment Contract; Security; Pledge by Participating 
Jurisdiction.--To assure the repayment of a note or other obligation 
guaranteed under this section and related charges incurred under this 
section, and as a condition of receiving such a guarantee, the 
Secretary shall require the issuer of the note or other obligation to--
            ``(1) enter into a contract, in a form acceptable to the 
        Secretary, for repayment of the note or other obligation;
            ``(2) pledge as security the proceeds of any grant for 
        which the issuer may become eligible under this Act; and
            ``(3) furnish, at the discretion of the Secretary, such 
        other security as may be determined appropriate by the 
        Secretary in making the guarantee, including increments in 
        local tax receipts generated by the activities assisted under 
        this Act or proceeds from the sale of land or rehabilitated 
        property.
    ``(f) Pledged Grants for Repayments.--The Secretary may, 
notwithstanding any other provision of this Act, apply the proceeds of 
a grant pledged by a participating jurisdiction under subsection (e)(2) 
to any repayment due the United States as a result of the guarantee 
under this section of a note or other obligation issued by the 
participating jurisdiction.
    ``(g) Full Faith and Credit of United States; Conclusiveness and 
Validity of Guarantee.--
            ``(1) Full faith and credit of united states pledged for 
        payment.--The full faith and credit of the United States is 
        pledged to the payment of a note or other obligation guaranteed 
        under this section.
            ``(2) Conclusiveness and validity of guarantee.--
                    ``(A) Conclusiveness.--A guarantee made by the 
                Secretary under this section shall be conclusive 
                evidence of the eligibility of the obligation for the 
                guarantee with respect to principal and interest.
                    ``(B) Validity.--The validity of a guarantee made 
                by the Secretary under this section shall be 
                incontestable in the hands of a holder of the 
                guaranteed obligation.
            ``(3) Limitation on percentage.--A guarantee made under 
        this section shall guarantee repayment of 100 percent of the 
        unpaid principal and interest due on the notes or other 
        obligations guaranteed.
    ``(h) Taxation of Interest; Grants to Issuing Participating 
Jurisdiction; Hardship Assistance.--
            ``(1) Taxation of interest paid on guaranteed 
        obligations.--For purposes of the Internal Revenue Code of 
        1986, interest paid on an obligation issued by a participating 
        jurisdiction that is guaranteed under this section shall be 
        included in the gross income of the recipient of the interest.
            ``(2) Grants to issuing participating jurisdiction of 
        taxable obligations for net interest costs.--The Secretary may 
        make, or contract to make, grants, in such amounts as may be 
        approved in appropriation Acts, to or on behalf of the issuing 
        participating jurisdiction to cover not to exceed 30 percent of 
        the net interest cost of obligations issued by the 
        participating jurisdiction that are guaranteed under this 
        section.
            ``(3) Assistance to issuer in hardship cases.--The 
        Secretary may, to the extent approved in appropriation Acts, 
        assist the issuer of a note or other obligation guaranteed 
        under this section in the payment of all or a portion of the 
        principal and interest amount due under the note or other 
        obligation, if the Secretary determines that the issuer is 
        unable to pay the amount because of circumstances of extreme 
        hardship beyond the control of the issuer.
    ``(i) Limit on Outstanding Obligations; Monitoring Use of 
Guarantees.--
            ``(1) Limit on outstanding obligations.--The total amount 
        of outstanding obligations guaranteed on a cumulative basis by 
        the Secretary under this section may not at any time exceed the 
        greater of--
                    ``(A) $4,500,000,000; or
                    ``(B) such higher amount as may be authorized to be 
                appropriated to carry out this section for a fiscal 
                year.
            ``(2) Monitoring use of guarantees.--
                    ``(A) In general.--The Secretary shall monitor the 
                use of guarantees under this section by participating 
                jurisdictions.
                    ``(B) Actions to ensure sufficient authority.--If 
                the Secretary finds under subparagraph (A) that 50 
                percent of the aggregate guarantee authority under 
                paragraph (1) has been committed, the Secretary may--
                            ``(i) provide that a unit of general local 
                        government that receives a grant under section 
                        211 may not receive more than $35,000,000 in 
                        guarantees under this section; or
                            ``(ii) submit to Congress a request for the 
                        enactment of legislation increasing the amount 
                        of the aggregate guarantee authority.
    ``(j) Purchase of Guaranteed Obligations by Federal Financing 
Bank.--The Federal Financing Bank may not purchase a note or other 
obligation guaranteed under this section.
    ``(k) Imposition of Fee or Charge.--The Secretary shall collect 
fees from borrowers to result in a credit subsidy cost of zero for 
guaranteeing notes or other obligations under this section.
    ``(l) Guarantee of Obligations Backed by Loans.--
            ``(1) Authority.--The Secretary may, upon such terms and 
        conditions as the Secretary considers appropriate, guarantee 
        the timely payment of the principal of and interest on such 
        trust certificates or other obligations as may be--
                    ``(A) offered by the Secretary or by any other 
                offeror approved for purposes of this subsection by the 
                Secretary; and
                    ``(B) based on and backed by a trust or pool 
                composed of notes or other obligations guaranteed or 
                eligible for guarantee by the Secretary under this 
                section.
            ``(2) Full faith and credit.--To the same extent as 
        provided in subsection (g), the full faith and credit of the 
        United States is pledged to the payment of all amounts that may 
        be required to be paid under any guarantee made by the 
        Secretary under this subsection.
            ``(3) Subrogation.--If the Secretary pays a claim under a 
        guarantee made under this section, the Secretary shall be 
        subrogated for all the rights of the holder of the guaranteed 
        certificate or obligation with respect to the certificate or 
        obligation.
            ``(4) Effect of other laws.--No State or local law, and no 
        Federal law, shall preclude or limit the exercise by the 
        Secretary of--
                    ``(A) the power to contract with respect to public 
                offerings and other sales of notes, trust certificates, 
                and other obligations guaranteed under this section 
                upon such terms and conditions as the Secretary 
                determines appropriate;
                    ``(B) the right to enforce any contract described 
                in subparagraph (A) by any means determined appropriate 
                by the Secretary; or
                    ``(C) any ownership rights of the Secretary, as 
                applicable, in notes, certificates, or other 
                obligations guaranteed under this section, or 
                constituting the trust or pool against which trust 
                certificates, or other obligations guaranteed under 
                this section, are offered.''.

     TITLE III--REFORMS RELATING TO COMMUNITY HOUSING DEVELOPMENT 
                ORGANIZATION AND NONPROFIT PARTICIPATION

SEC. 301. MODIFICATION OF RULES RELATED TO COMMUNITY HOUSING 
              DEVELOPMENT ORGANIZATIONS.

    (a) Definitions of Community Housing Development Organization and 
Community Land Trust.--
            (1) In general.--Section 104 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12704) is amended--
                    (A) in paragraph (6)(B)--
                            (i) by striking ``significant''; and
                            (ii) by striking ``and otherwise'' and 
                        inserting ``or as otherwise determined 
                        acceptable by the Secretary''; and
                    (B) by adding at the end the following:
            ``(26) The term `community land trust' means a nonprofit 
        entity or a State or local government or instrumentality 
        thereof that--
                    ``(A) is not sponsored by a for-profit 
                organization;
                    ``(B) has as a primary purpose the provision and 
                maintenance of housing that provides long-term 
                affordability for low- and moderate-income persons;
                    ``(C) provides housing described in subparagraph 
                (B) using a ground lease, deed covenant, or other 
                similar legally enforceable measure, as determined by 
                the Secretary, that--
                            ``(i) keeps the housing affordable to low- 
                        and moderate-income persons for not less than 
                        30 years; and
                            ``(ii) enables low- and moderate-income 
                        persons to purchase the housing for 
                        homeownership; and
                    ``(D) maintains preemptive purchase options to 
                purchase the property so the housing remains affordable 
                to low-and moderate-income persons.''.
            (2) Elimination of existing definition of community land 
        trust.--Section 233 of the Cranston-Gonzalez National 
        Affordable Housing Act (42 U.S.C. 12773) is amended by striking 
        subsection (f).
    (b) Set-Aside for Community Housing Development Organizations.--
Section 231 of the Cranston-Gonzalez national Affordable Housing Act 
(42 U.S.C. 12771) is amended--
            (1) in subsection (a), by striking ``to be developed, 
        sponsored, or owned by community housing development 
        organizations'' and inserting ``when a community housing 
        development organization materially participates in the 
        ownership or development of such housing, as determined by the 
        Secretary'';
            (2) by striking subsection (b) and inserting the following:
    ``(b) Recapture and Reuse.--If any funds reserved under subsection 
(a) remain uninvested for a period of 24 months, then the Secretary 
shall make such funds available to the participating jurisdiction for 
any eligible activities under this title without regard to whether a 
community housing development organization materially participates in 
the use of the funds.''; and
            (3) by striking subsection (c).

                    TITLE IV--TECHNICAL CORRECTIONS

SEC. 401. TECHNICAL CORRECTIONS.

    The Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12701 et seq.) is amended--
            (1) in section 104 (42 U.S.C. 12704)--
                    (A) by redesignating paragraph (23) (relating to 
                the definition of the term ``to demonstrate to the 
                Secretary'') as paragraph (22); and
                    (B) by redesignating paragraph (24) (relating to 
                the definition of the term ``insular area'', as added 
                by section 2(2) of Public Law 102-230) as paragraph 
                (23);
            (2) in section 105(b) (42 U.S.C. 12705(b))--
                    (A) in paragraph (7), by striking ``Stewart B. 
                McKinney Homeless Assistance Act'' and inserting 
                ``McKinney-Vento Homeless Assistance Act''; and
                    (B) in paragraph (8), by striking ``subparagraphs'' 
                and inserting ``paragraphs'';
            (3) in section 106 (42 U.S.C. 12706), by striking ``Stewart 
        B. McKinney Homeless Assistance Act'' and inserting ``McKinney-
        Vento Homeless Assistance Act'';
            (4) in section 108(a)(1) (42 U.S.C. 12708(a)(1)), by 
        striking ``section 105(b)(15)'' and inserting ``section 
        105(b)(18)'';
            (5) in section 212 (42 U.S.C. 12742)--
                    (A) in subsection (a)--
                            (i) in paragraph (3)(A)(ii), by inserting 
                        ``United States'' before ``Housing Act''; and
                            (ii) by redesignating paragraph (5) as 
                        paragraph (4);
                    (B) in subsection (d)(5), by inserting ``United 
                States'' before ``Housing Act''; and
                    (C) in subsection (e)(1)--
                            (i) by striking ``section 221(d)(3)(ii)'' 
                        and inserting ``section 221(d)(4)''; and
                            (ii) by striking ``not to exceed 140 
                        percent'' and inserting ``as determined by the 
                        Secretary'';
            (6) in section 215(a)(6)(B) (42 U.S.C. 20 12745(a)(6)(B)), 
        by striking ``grand children'' and inserting ``grandchildren'';
            (7) in section 217 (42 U.S.C. 12747)--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``(3)'' 
                        and inserting ``(2)'';
                            (ii) by striking paragraph (3), as added by 
                        section 211(a)(2)(D) of the Housing and 
                        Community Development Act of 1992 (Public Law 
                        102-550; 106 Stat. 3756); and
                            (iii) by redesignating the remaining 
                        paragraph (3), as added by the matter under the 
                        heading ``home investment partnerships 
                        program'' under the heading ``Housing 
                        Programs'' in title II of the Departments of 
                        Veterans Affairs and Housing and Urban 
                        Development, and Independent Agencies 
                        Appropriations Act, 1993 (Public Law 102-389; 
                        106 Stat. 1581), as paragraph (2); and
                    (B) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) in the first sentence of 
                                subparagraph (A)--
                                            (aa) by striking ``in 
                                        regulation'' and inserting ``, 
                                        by regulation,''; and
                                            (bb) by striking ``eligible 
                                        jurisdiction'' and inserting 
                                        ``eligible jurisdictions''; and
                                    (II) in subparagraph (F)--
                                            (aa) in the first 
                                        sentence--

                                                    (AA) in clause (i), 
                                                by striking 
                                                ``Subcommittee on 
                                                Housing and Urban 
                                                Affairs'' and inserting 
                                                ``Subcommittee on 
                                                Housing, 
                                                Transportation, and 
                                                Community 
                                                Development''; and

                                                    (BB) in clause 
                                                (ii), by striking 
                                                ``Subcommittee on 
                                                Housing and Community 
                                                Development of the 
                                                Committee on Banking, 
                                                Finance and Urban 
                                                Affairs'' and inserting 
                                                ``Subcommittee on 
                                                Housing and Insurance 
                                                of the Committee on 
                                                Financial Services''; 
                                                and

                                            (bb) in the second 
                                        sentence, by striking ``the 
                                        Committee on Banking, Finance 
                                        and Urban Affairs of the House 
                                        of Representatives'' and 
                                        inserting ``the Committee on 
                                        Financial Services of the House 
                                        of Representatives'';
                            (ii) in paragraph (2)(B), by striking 
                        ``$500,000'' each place that term appears and 
                        inserting ``$750,000'';
                            (iii) in paragraph (3)--
                                    (I) by striking ``$500,000'' each 
                                place that term appears and inserting 
                                ``$750,000''; and
                                    (II) by striking ``, except as 
                                provided in paragraph (4)''; and
                            (iv) by striking paragraph (4);
            (8) in section 220(c) (42 U.S.C. 12750(c))--
                    (A) in paragraph (3), by striking ``Secretary'' and 
                all that follows and inserting ``Secretary;'';
                    (B) in paragraph (4), by striking ``under this 
                title'' and all that follows and inserting ``under this 
                title;''; and
                    (C) by redesignating paragraphs (6), (7), and (8) 
                as paragraphs (5), (6), and (7), respectively;
            (9) in section 225(d)(4)(B) (42 U.S.C. 12755(d)(4)(B)), by 
        striking ``for'' the first place that term appears; and
            (10) in section 283 (42 U.S.C. 12833)--
                    (A) in subsection (a), by striking ``Banking, 
                Finance and Urban Affairs'' and inserting ``Financial 
                Services''; and
                    (B) in subsection (b), by striking ``General 
                Accounting Office'' each place that term appears and 
                inserting ``Government Accountability Office''.
                                 <all>
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