II 

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. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘HOME Investment Partnerships Reauthorization and 

6 Improvement Act of 2024’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—REAUTHORIZATION OF AND REFORMS TO HOME 

INVESTMENT PARTNERSHIPS PROGRAM 


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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. 

1 TITLE I—REAUTHORIZATION OF 

2 AND REFORMS TO HOME IN3 VESTMENT PARTNERSHIPS 

4 PROGRAM 

5 SEC. 101. REAUTHORIZATION OF PROGRAM. 

6 Section 205 of the Cranston-Gonzalez National Af7 fordable Housing Act (42 U.S.C. 12724) is amended to 

8 read as follows: 

9 ‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 

10 ‘‘There are authorized to be appropriated to carry out 

11 this title— 

12 ‘‘(1) $5,000,000,000 for fiscal year 2024; 

13 ‘‘(2) $5,250,000,000 for fiscal year 2025; 

14 ‘‘(3) $5,512,500,000 for fiscal year 2026; 


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1 ‘‘(4) $5,788,125,000 for fiscal year 2027; and 

2 ‘‘(5) $6,077,531,250 for fiscal year 2028.’’. 

3 SEC. 102. INCREASE IN PROGRAM ADMINISTRATION RE4 SOURCES. 

5 Subtitle A of title II of the Cranston-Gonzalez Na6 tional Affordable Housing Act (42 U.S.C. 12741 et seq.) 

7 is amended— 

8 (1) in section 212(c) (42 U.S.C. 12742(c)), by 

9 striking ‘‘10 percent’’ and inserting ‘‘15 percent’’; 

10 and 

11 (2) in section 220(b) (42 U.S.C. 12750(b))— 

12 (A) by striking ‘‘RECOGNITION.—’’ and all 

13 that follows through ‘‘A contribution’’ and in14 serting the following: ‘‘RECOGNITION.—A con15 tribution’’; and 

16 (B) by striking paragraph (2). 

17 SEC. 103. MODIFICATIONS OF PARTICIPATING JURISDIC18 TION QUALIFICATION THRESHOLD AND 

19 PROCESS FOR REALLOCATIONS. 

20 Section 216 of the Cranston-Gonzalez National Af21 fordable Housing Act (42 U.S.C. 12746) is amended— 

22 (1) in paragraph (3)(A)— 

23 (A) by striking ‘‘(A) Except as provided in 

24 paragraph (10), a jurisdiction’’ and inserting 

25 the following: 


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1 ‘‘(A) ELIGIBILITY THRESHOLD.— 

2 ‘‘(i) IN GENERAL.—Except as pro3 vided in subparagraph (B), a jurisdiction’’; 

4 and 

5 (B) by striking ‘‘or if the Secretary finds 

6 that’’ and all that follows through the end of 

7 clause (ii) and inserting the following: ‘‘subject 

8 to clause (ii). 

9 ‘‘(ii) INFLATION ADJUSTMENT TO ELI10 GIBILITY THRESHOLD.—For each fiscal 

11 year after fiscal year 2024, the Secretary 

12 shall adjust the threshold amount in clause 

13 (i) for inflation.’’; 

14 (2) in paragraph (6)— 

15 (A) in the matter preceding subparagraph 

16 (A), by inserting ‘‘this title, including the re17 quirements in’’ after ‘‘the requirements of’’; 

18 and 

19 (B) by striking ‘‘meet the requirements’’ 

20 each place that term appears and inserting 

21 ‘‘meet or comply with the requirements’’; and 

22 (3) by striking paragraph (10). 


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1 SEC. 104. MODIFICATION OF JURISDICTIONS ELIGIBLE FOR 

2 REALLOCATIONS. 

3 Section 217(d) of the Cranston-Gonzalez National 

4 Affordable Housing Act (42 U.S.C. 12747(d)) is amend5 ed— 

6 (1) in paragraph (1), by striking the second 

7 sentence and inserting the following: ‘‘Subject to 

8 paragraph (3)(A), jurisdictions eligible for such re9 allocations shall include participating jurisdictions 

10 and jurisdictions meeting the requirements of this 

11 title, including the requirements in paragraphs (3), 

12 (4), and (5) of section 216.’’; and 

13 (2) in paragraph (3), by striking ‘‘LIMITA14 TION.—Unless otherwise specified’’ and inserting the 

15 following: ‘‘LIMITATIONS.— 

16 ‘‘(A) REMOVAL OF PARTICIPATING JURIS17 DICTIONS FROM REALLOCATION.—The Sec18 retary may remove a participating jurisdiction 

19 that fails to meet or comply with the require20 ments of this title from participation in re21 allocations of funds made available under this 

22 title. 

23 ‘‘(B) REALLOCATION TO SAME TYPE OF

24 ENTITY.—Unless otherwise specified’’. 


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1 TITLE II—REFORMS RELATING 

2 TO HOME INVESTMENT PART3 NERSHIPS PROGRAM ADMIN4 ISTRATION AND RULES 

5 SEC. 201. AMENDMENTS TO QUALIFICATION AS AFFORD6 ABLE HOUSING. 

7 Section 215 of the Cranston-Gonzalez National Af8 fordable Housing Act (42 U.S.C. 12745) is amended— 

9 (1) in subsection (a)— 

10 (A) in paragraph (1)(E), by striking all 

11 that follows ‘‘purposes of this Act,’’ and insert12 ing the following: ‘‘except— 

13 ‘‘(i) upon a foreclosure by a lender (or 

14 upon other transfer in lieu of foreclosure) 

15 if such action— 

16 ‘‘(I) recognizes any contractual 

17 or legal rights of public agencies, non18 profit sponsors, or others to take ac19 tions that would avoid termination of 

20 low-income affordability in the case of 

21 foreclosure or transfer in lieu of fore22 closure; and 

23 ‘‘(II) is not for the purpose of 

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1 strictions, as determined by the Sec2 retary; or 

3 ‘‘(ii) where existing affordable housing 

4 is no longer financially viable due to un5 foreseen acts or occurrences beyond the 

6 reasonable contemplation or control of the 

7 participating jurisdiction or owner that sig8 nificantly impact the financial or physical 

9 condition of the housing, as determined by 

10 the Secretary; and’’; and 

11 (B) by adding at the end the following: 

12 ‘‘(7) SMALL-SCALE HOUSING.— 

13 ‘‘(A) DEFINITION.—In this paragraph, the 

14 term ‘small-scale housing’ means housing with 

15 not more than 4 rental units. 

16 ‘‘(B) ALTERNATIVE REQUIREMENTS.— 

17 Small-scale housing shall qualify as affordable 

18 housing under this title if— 

19 ‘‘(i) the housing bears rents that com20 ply with paragraph (1)(A); 

21 ‘‘(ii) each unit is occupied by a house22 hold that qualifies as a low-income family; 

23 ‘‘(iii) the housing is not refused for 

24 leasing to a holder of a voucher under sec25 tion 8 of the United States Housing Act of 


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1 1937 (42 U.S.C. 1437f) because of the 

2 status of the prospective tenant as a holder 

3 of such voucher; 

4 ‘‘(iv) the housing meets the require5 ments under paragraph (1)(E); and 

6 ‘‘(v) the participating jurisdiction 

7 monitors ongoing compliance of the hous8 ing with requirements of this title in a 

9 manner consistent with the purposes of 

10 section 226(b), as determined by the Sec11 retary.’’; and 

12 (2) in subsection (b)(1), by striking ‘‘95 per13 cent’’ and inserting ‘‘110 percent or a percentage es14 tablished by the Secretary through notice, whichever 

15 is greater,’’. 

16 SEC. 202. ELIMINATION OF COMMITMENT DEADLINE. 

17 (a) IN GENERAL.—Section 218 of the Cranston-Gon18 zalez National Affordable Housing Act (42 U.S.C. 12748) 

19 is amended— 

20 (1) by striking subsection (g); and 

21 (2) by redesignating subsection (h) as sub22 section (g). 

23 (b) CONFORMING AMENDMENT.—Section 218(c) of 

24 the Cranston-Gonzalez National Affordable Housing Act 

25 (42 U.S.C. 12748(c)) is amended— 


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1 (1) in paragraph (1), by adding ‘‘and’’ at the 

2 end; 

3 (2) by striking paragraph (2); 

4 (3) by redesignating paragraph (3) as para5 graph (2); and 

6 (4) in paragraph (2), as so redesignated, by 

7 striking ‘‘section 224’’ and inserting ‘‘section 223’’. 

8 SEC. 203. REFORM OF HOMEOWNERSHIP RESALE RESTRIC9 TIONS. 

10 Section 215 of the Cranston-Gonzalez National Af11 fordable Housing Act (42 U.S.C. 12745), as amended by 

12 section 201, is amended— 

13 (1) in subsection (b)— 

14 (A) in paragraph (2), by redesignating 

15 subparagraphs (A), (B), and (C) as clauses (i), 

16 (ii), and (iii), respectively, and adjusting the 

17 margins accordingly; 

18 (B) by striking paragraph (3); 

19 (C) by redesignating paragraphs (1), (2), 

20 and (4) as subparagraphs (A), (B), and (D), re21 spectively, and adjusting the margins accord22 ingly; 

23 (D) by inserting after subparagraph (B), 

24 as so redesignated, the following: 


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1 ‘‘(C) is subject to restrictions that are es2 tablished by the participating jurisdiction and 

3 determined by the Secretary to be appropriate, 

4 including with respect to the affordability pe5 riod, to— 

6 ‘‘(i) require that any subsequent pur7 chase of the property be— 

8 ‘‘(I) only by a person who meets 

9 the qualifications specified under sub10 paragraph (B); and 

11 ‘‘(II) at a price that is deter12 mined by a formula or method estab13 lished by the participating jurisdiction 

14 that provides the owner with a reason15 able return on investment, which may 

16 include a percentage of the cost of 

17 any improvements; or 

18 ‘‘(ii) in the case of resale, recapture 

19 the investment provided under this title in 

20 order to assist other persons in accordance 

21 with the requirements of this title, except 

22 where there are no net proceeds or where 

23 the net proceeds are insufficient to repay 

24 the full amount of the assistance; and’’; 


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1 (E) by striking ‘‘Housing that is for home2 ownership’’ and inserting the following: 

3 ‘‘(1) QUALIFICATION.—Housing that is for 

4 homeownership’’; and 

5 (F) by adding at the end the following: 

6 ‘‘(2) PURCHASE BY COMMUNITY LAND

7 TRUST.—Notwithstanding subparagraph (C)(i) of 

8 paragraph (1) and under terms determined by the 

9 Secretary, a participating jurisdiction may permit a 

10 community land trust to purchase housing that 

11 meets the criteria under that paragraph— 

12 ‘‘(A) in accordance with the terms of the 

13 preemptive purchase option, lease, covenant, or 

14 other legal instrument of the community land 

15 trust when the terms and rights in the preemp16 tive purchase option, lease, covenant, or legal 

17 instrument are and remain subject to the re18 quirements of this title; 

19 ‘‘(B) when the purchase is for— 

20 ‘‘(i) the purpose of— 

21 ‘‘(I) entering into the chain of 

22 title; 

23 ‘‘(II) enabling qualified home24 buyers on a waitlist to purchase; 


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1 ‘‘(III) performing necessary reha2 bilitation, repairs, or improvements; 

3 or 

4 ‘‘(IV) adding a subsidy; or 

5 ‘‘(ii) another purpose determined ap6 propriate by the Secretary; and 

7 ‘‘(C) if, within a reasonable period of time 

8 after the applicable purpose under subpara9 graph (B) of this paragraph is fulfilled, as de10 termined by the Secretary, the housing is then 

11 sold to a person who meets the qualifications 

12 specified under paragraph (1)(B). 

13 ‘‘(3) SUSPENSION OR WAIVER OF REQUIRE14 MENTS FOR MILITARY MEMBERS.—A participating 

15 jurisdiction, in accordance with terms established by 

16 the Secretary, may suspend or waive a requirement 

17 under paragraph (1)(B) with respect to housing if 

18 the owner of the housing— 

19 ‘‘(A) is a member of a regular component 

20 of the armed forces or a member of the Na21 tional Guard on full-time National Guard duty, 

22 active Guard and Reserve duty, or inactive-duty 

23 training (as those terms are defined in section 

24 101(d) of title 10, United States Code); and 

25 ‘‘(B) has received— 


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1 ‘‘(i) temporary duty orders to deploy 

2 with a military unit or military orders to 

3 deploy as an individual acting in support of 

4 a military operation, to a location that is 

5 not within a reasonable distance from the 

6 housing, as determined by the Secretary, 

7 for a period of not less than 90 days; or 

8 ‘‘(ii) orders for a permanent change of 

9 station. 

10 ‘‘(4) SUSPENSION OR WAIVER OF REQUIRE11 MENTS FOR HEIR OR BENEFICIARY OF DECEASED

12 OWNER.—Notwithstanding subparagraph (C) of 

13 paragraph (1), housing that meets the criteria under 

14 that paragraph prior to the death of an owner may 

15 continue to qualify as affordable housing if— 

16 ‘‘(A) the housing is the principal residence 

17 of an heir or beneficiary of the deceased owner, 

18 as defined by the Secretary; and 

19 ‘‘(B) the heir or beneficiary, in accordance 

20 with terms established by the Secretary, as21 sumes the duties and obligations of the de22 ceased owner with respect to funds provided 

23 under this title.’’. 


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1 SEC. 204. HOME PROPERTY INSPECTIONS. 

2 Section 226(b) of the Cranston-Gonzalez National 

3 Affordable Housing Act (42 U.S.C. 12756(b)) is amend4 ed— 

5 (1) by striking ‘‘Each participating jurisdic6 tion’’ and inserting the following: 

7 ‘‘(1) IN GENERAL.—Each participating jurisdic8 tion’’; and 

9 (2) by striking ‘‘Such review shall include’’ and 

10 all that follows and inserting the following: 

11 ‘‘(2) ON-SITE INSPECTIONS.— 

12 ‘‘(A) INSPECTIONS BY UNITS OF GENERAL

13 LOCAL GOVERNMENT.—A review conducted 

14 under paragraph (1) by a participating jurisdic15 tion that is a unit of general local government 

16 shall include an on-site inspection to determine 

17 compliance with housing codes and other appli18 cable regulations. 

19 ‘‘(B) INSPECTIONS BY STATES.—A review 

20 conducted under paragraph (1) by a partici21 pating jurisdiction that is a State shall include 

22 an on-site inspection to determine compliance 

23 with a national standard as determined by the 

24 Secretary. 

25 ‘‘(3) INCLUSION IN PERFORMANCE REPORT AND

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1 clude in the performance report of the participating 

2 jurisdiction submitted to the Secretary under section 

3 108(a), and make available to the public, the results 

4 of each review conducted under paragraph (1).’’. 

5 SEC. 205. REVISIONS TO STRENGTHEN ENFORCEMENT AND 

6 PENALTIES FOR NONCOMPLIANCE. 

7 Section 223 of the Cranston-Gonzalez National Af8 fordable Housing Act (42 U.S.C. 12753) is amended— 

9 (1) in the heading, by striking ‘‘PENALTIES

10 FOR MISUSE OF FUNDS’’ and inserting ‘‘PRO11 GRAM ENFORCEMENT AND PENALTIES FOR

12 NONCOMPLIANCE’’; 

13 (2) in the matter preceding paragraph (1), by 

14 inserting after ‘‘any provision of this subtitle’’ the 

15 following: ‘‘, including any provision applicable 

16 throughout the period required by section 

17 215(a)(1)(E) and applicable regulations,’’; 

18 (3) in paragraph (2), by striking ‘‘or’’ at the 

19 end; 

20 (4) in paragraph (3), by striking the period at 

21 the end and inserting ‘‘; or’’; and 

22 (5) by adding at the end the following: 

23 ‘‘(4) reduce payments to the participating juris24 diction under this subtitle by an amount equal to the 


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1 amount of such payments which were not expended 

2 in accordance with this title.’’. 

3 SEC. 206. TENANT AND PARTICIPANT PROTECTIONS FOR 

4 SMALL-SCALE AFFORDABLE HOUSING. 

5 Section 225 of the Cranston-Gonzalez National Af6 fordable Housing Act (42 U.S.C. 12755) is amended by 

7 adding at the end the following: 

8 ‘‘(e) TENANT SELECTION FOR SMALL-SCALE HOUS9 ING.—Paragraphs (2) through (4) of subsection (d) shall 

10 not apply to the owner of small-scale housing (as defined 

11 in section 215(a)).’’. 

12 SEC. 207. ESTABLISHMENT OF HOME LOAN GUARANTEE 

13 PROGRAM. 

14 Subtitle A of title II of the Cranston-Gonzalez Na15 tional Affordable Housing Act (42 U.S.C. 12741 et seq.) 

16 is amended by adding at the end the following: 

17 ‘‘SEC. 227. GUARANTEE AND COMMITMENT TO GUARANTEE 

18 LOANS FOR ACQUISITION OF PROPERTY. 

19 ‘‘(a) AUTHORITY.— 

20 ‘‘(1) IN GENERAL.—The Secretary may, under 

21 such terms and conditions as the Secretary may pre22 scribe, guarantee and make commitments to guar23 antee, only to such extent or in such amounts as 

24 provided in appropriation Acts, the notes or obliga25 tions issued by participating jurisdictions for the 


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1 purposes of financing the development or preserva2 tion of affordable rental and homeownership housing 

3 through the acquisition, new construction, recon4 struction, or moderate or substantial rehabilitation 

5 of affordable housing. 

6 ‘‘(2) ELIGIBLE EXPENSES.—When in support 

7 of the activities described in paragraph (1), the ex8 penses for which the Secretary may guarantee and 

9 make commitments to guarantee notes or obligations 

10 under that paragraph include real property acquisi11 tion, site improvement, conversion, demolition, and 

12 other expenses, including financing costs and reloca13 tion expenses of any displaced person, family, or 

14 business. 

15 ‘‘(b) LIMITATIONS AND REQUIREMENTS.— 

16 ‘‘(1) ELIGIBILITY.—A guarantee under this sec17 tion may be used to assist a participating jurisdic18 tion in obtaining financing only if the participating 

19 jurisdiction— 

20 ‘‘(A) has made efforts to obtain such fi21 nancing without the use of the guarantee, as 

22 determined by the Secretary; and 

23 ‘‘(B) cannot complete such financing con24 sistent with the timely execution of the project 


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1 plans without the guarantee, as determined by 

2 the Secretary. 

3 ‘‘(2) FORM, DENOMINATIONS, MATURITIES, AND

4 CONDITIONS.—Notes or other obligations guaranteed 

5 under this section shall be in such form and denomi6 nations, have such maturities, and be subject to such 

7 conditions as may be prescribed by regulations 

8 issued by the Secretary. 

9 ‘‘(3) REPAYMENT PERIOD.—The Secretary may 

10 not deny a guarantee under this section on the basis 

11 of the proposed repayment period for the note or 

12 other obligation unless— 

13 ‘‘(A) the period is more than 20 years; or 

14 ‘‘(B) the Secretary determines that the pe15 riod causes the guarantee to constitute an unac16 ceptable financial risk. 

17 ‘‘(4) AGGREGATE PRINCIPAL AMOUNT.—Not18 withstanding any other provision of law and subject 

19 only to the absence of qualified applicants or pro20 posed activities and to the authority provided in this 

21 section, to the extent approved or provided in appro22 priation Acts, the Secretary shall enter into commit23 ments to guarantee notes and obligations under this 

24 section with an aggregate principal amount of not 

25 more than— 


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1 ‘‘(A) $2,000,000,000 for fiscal year 2023; 

2 and 

3 ‘‘(B) for each subsequent fiscal year, an 

4 amount that is increased for inflation as deter5 mined by the Secretary. 

6 ‘‘(c) PREREQUISITES.—The Secretary may not make 

7 a guarantee or commitment to guarantee with respect to 

8 any note or other obligation if— 

9 ‘‘(1) the total outstanding notes or obligations 

10 of the issuer guaranteed under this section would 

11 thereby exceed an amount equal to 5 times the most 

12 recent allocation for the issuer under this title; or 

13 ‘‘(2) the Secretary determines that the guar14 antee constitutes an unacceptable risk. 

15 ‘‘(d) PAYMENT OF PRINCIPAL, INTEREST, AND

16 COSTS.—Notwithstanding any other provision of this Act, 

17 a participating jurisdiction allocated funds under this Act 

18 may use the funds (including program income derived 

19 therefrom) for the payment of principal and interest due 

20 (including such servicing, underwriting, or other costs as 

21 may be specified in regulations of the Secretary), and any 

22 associated fee to be paid in accordance with subsection (k), 

23 on a note or other obligation guaranteed under this sec24 tion. 


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1 ‘‘(e) REPAYMENT CONTRACT; SECURITY; PLEDGE BY

2 PARTICIPATING JURISDICTION.—To assure the repayment 

3 of a note or other obligation guaranteed under this section 

4 and related charges incurred under this section, and as 

5 a condition of receiving such a guarantee, the Secretary 

6 shall require the issuer of the note or other obligation to— 

7 ‘‘(1) enter into a contract, in a form acceptable 

8 to the Secretary, for repayment of the note or other 

9 obligation; 

10 ‘‘(2) pledge as security the proceeds of any 

11 grant for which the issuer may become eligible under 

12 this Act; and 

13 ‘‘(3) furnish, at the discretion of the Secretary, 

14 such other security as may be determined appro15 priate by the Secretary in making the guarantee, in16 cluding increments in local tax receipts generated by 

17 the activities assisted under this Act or proceeds 

18 from the sale of land or rehabilitated property. 

19 ‘‘(f) PLEDGED GRANTS FOR REPAYMENTS.—The 

20 Secretary may, notwithstanding any other provision of this 

21 Act, apply the proceeds of a grant pledged by a partici22 pating jurisdiction under subsection (e)(2) to any repay23 ment due the United States as a result of the guarantee 

24 under this section of a note or other obligation issued by 

25 the participating jurisdiction. 


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1 ‘‘(g) FULL FAITH AND CREDIT OF UNITED STATES; 

2 CONCLUSIVENESS AND VALIDITY OF GUARANTEE.— 

3 ‘‘(1) FULL FAITH AND CREDIT OF UNITED

4 STATES PLEDGED FOR PAYMENT.—The full faith 

5 and credit of the United States is pledged to the 

6 payment of a note or other obligation guaranteed 

7 under this section. 

8 ‘‘(2) CONCLUSIVENESS AND VALIDITY OF GUAR9 ANTEE.— 

10 ‘‘(A) CONCLUSIVENESS.—A guarantee 

11 made by the Secretary under this section shall 

12 be conclusive evidence of the eligibility of the 

13 obligation for the guarantee with respect to 

14 principal and interest. 

15 ‘‘(B) VALIDITY.—The validity of a guar16 antee made by the Secretary under this section 

17 shall be incontestable in the hands of a holder 

18 of the guaranteed obligation. 

19 ‘‘(3) LIMITATION ON PERCENTAGE.—A guar20 antee made under this section shall guarantee repay21 ment of 100 percent of the unpaid principal and in22 terest due on the notes or other obligations guaran23 teed. 


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1 ‘‘(h) TAXATION OF INTEREST; GRANTS TO ISSUING

2 PARTICIPATING JURISDICTION; HARDSHIP ASSIST3 ANCE.— 

4 ‘‘(1) TAXATION OF INTEREST PAID ON GUARAN5 TEED OBLIGATIONS.—For purposes of the Internal 

6 Revenue Code of 1986, interest paid on an obliga7 tion issued by a participating jurisdiction that is 

8 guaranteed under this section shall be included in 

9 the gross income of the recipient of the interest. 

10 ‘‘(2) GRANTS TO ISSUING PARTICIPATING JU11 RISDICTION OF TAXABLE OBLIGATIONS FOR NET IN12 TEREST COSTS.—The Secretary may make, or con13 tract to make, grants, in such amounts as may be 

14 approved in appropriation Acts, to or on behalf of 

15 the issuing participating jurisdiction to cover not to 

16 exceed 30 percent of the net interest cost of obliga17 tions issued by the participating jurisdiction that are 

18 guaranteed under this section. 

19 ‘‘(3) ASSISTANCE TO ISSUER IN HARDSHIP

20 CASES.—The Secretary may, to the extent approved 

21 in appropriation Acts, assist the issuer of a note or 

22 other obligation guaranteed under this section in the 

23 payment of all or a portion of the principal and in24 terest amount due under the note or other obliga25 tion, if the Secretary determines that the issuer is 


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1 unable to pay the amount because of circumstances 

2 of extreme hardship beyond the control of the issuer. 

3 ‘‘(i) LIMIT ON OUTSTANDING OBLIGATIONS; MONI4 TORING USE OF GUARANTEES.— 

5 ‘‘(1) LIMIT ON OUTSTANDING OBLIGATIONS.— 

6 The total amount of outstanding obligations guaran7 teed on a cumulative basis by the Secretary under 

8 this section may not at any time exceed the greater 

9 of— 

10 ‘‘(A) $4,500,000,000; or 

11 ‘‘(B) such higher amount as may be au12 thorized to be appropriated to carry out this 

13 section for a fiscal year. 

14 ‘‘(2) MONITORING USE OF GUARANTEES.— 

15 ‘‘(A) IN GENERAL.—The Secretary shall 

16 monitor the use of guarantees under this sec17 tion by participating jurisdictions. 

18 ‘‘(B) ACTIONS TO ENSURE SUFFICIENT

19 AUTHORITY.—If the Secretary finds under sub20 paragraph (A) that 50 percent of the aggregate 

21 guarantee authority under paragraph (1) has 

22 been committed, the Secretary may— 

23 ‘‘(i) provide that a unit of general 

24 local government that receives a grant 

25 under section 211 may not receive more 


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1 than $35,000,000 in guarantees under this 

2 section; or 

3 ‘‘(ii) submit to Congress a request for 

4 the enactment of legislation increasing the 

5 amount of the aggregate guarantee author6 ity. 

7 ‘‘(j) PURCHASE OF GUARANTEED OBLIGATIONS BY

8 FEDERAL FINANCING BANK.—The Federal Financing 

9 Bank may not purchase a note or other obligation guaran10 teed under this section. 

11 ‘‘(k) IMPOSITION OF FEE OR CHARGE.—The Sec12 retary shall collect fees from borrowers to result in a credit 

13 subsidy cost of zero for guaranteeing notes or other obliga14 tions under this section. 

15 ‘‘(l) GUARANTEE OF OBLIGATIONS BACKED BY

16 LOANS.— 

17 ‘‘(1) AUTHORITY.—The Secretary may, upon 

18 such terms and conditions as the Secretary considers 

19 appropriate, guarantee the timely payment of the 

20 principal of and interest on such trust certificates or 

21 other obligations as may be— 

22 ‘‘(A) offered by the Secretary or by any 

23 other offeror approved for purposes of this sub24 section by the Secretary; and 


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1 ‘‘(B) based on and backed by a trust or 

2 pool composed of notes or other obligations 

3 guaranteed or eligible for guarantee by the Sec4 retary under this section. 

5 ‘‘(2) FULL FAITH AND CREDIT.—To the same 

6 extent as provided in subsection (g), the full faith 

7 and credit of the United States is pledged to the 

8 payment of all amounts that may be required to be 

9 paid under any guarantee made by the Secretary 

10 under this subsection. 

11 ‘‘(3) SUBROGATION.—If the Secretary pays a 

12 claim under a guarantee made under this section, 

13 the Secretary shall be subrogated for all the rights 

14 of the holder of the guaranteed certificate or obliga15 tion with respect to the certificate or obligation. 

16 ‘‘(4) EFFECT OF OTHER LAWS.—No State or 

17 local law, and no Federal law, shall preclude or limit 

18 the exercise by the Secretary of— 

19 ‘‘(A) the power to contract with respect to 

20 public offerings and other sales of notes, trust 

21 certificates, and other obligations guaranteed 

22 under this section upon such terms and condi23 tions as the Secretary determines appropriate; 


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1 ‘‘(B) the right to enforce any contract de2 scribed in subparagraph (A) by any means de3 termined appropriate by the Secretary; or 

4 ‘‘(C) any ownership rights of the Sec5 retary, as applicable, in notes, certificates, or 

6 other obligations guaranteed under this section, 

7 or constituting the trust or pool against which 

8 trust certificates, or other obligations guaran9 teed under this section, are offered.’’. 

10 TITLE III—REFORMS RELATING 

11 TO COMMUNITY HOUSING DE12 VELOPMENT ORGANIZATION 

13 AND NONPROFIT PARTICIPA14 TION 

15 SEC. 301. MODIFICATION OF RULES RELATED TO COMMU16 NITY HOUSING DEVELOPMENT ORGANIZA17 TIONS. 

18 (a) DEFINITIONS OF COMMUNITY HOUSING DEVEL19 OPMENT ORGANIZATION AND COMMUNITY LAND

20 TRUST.— 

21 (1) IN GENERAL.—Section 104 of the Cran22 ston-Gonzalez National Affordable Housing Act (42 

23 U.S.C. 12704) is amended— 

24 (A) in paragraph (6)(B)— 

25 (i) by striking ‘‘significant’’; and 


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1 (ii) by striking ‘‘and otherwise’’ and 

2 inserting ‘‘or as otherwise determined ac3 ceptable by the Secretary’’; and 

4 (B) by adding at the end the following: 

5 ‘‘(26) The term ‘community land trust’ means 

6 a nonprofit entity or a State or local government or 

7 instrumentality thereof that— 

8 ‘‘(A) is not sponsored by a for-profit orga9 nization; 

10 ‘‘(B) has as a primary purpose the provi11 sion and maintenance of housing that provides 

12 long-term affordability for low- and moderate13 income persons; 

14 ‘‘(C) provides housing described in sub15 paragraph (B) using a ground lease, deed cov16 enant, or other similar legally enforceable meas17 ure, as determined by the Secretary, that— 

18 ‘‘(i) keeps the housing affordable to 

19 low- and moderate-income persons for not 

20 less than 30 years; and 

21 ‘‘(ii) enables low- and moderate-in22 come persons to purchase the housing for 

23 homeownership; and 

24 ‘‘(D) maintains preemptive purchase op25 tions to purchase the property so the housing 


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1 remains affordable to low-and moderate-income 

2 persons.’’. 

3 (2) ELIMINATION OF EXISTING DEFINITION OF

4 COMMUNITY LAND TRUST.—Section 233 of the 

5 Cranston-Gonzalez National Affordable Housing Act 

6 (42 U.S.C. 12773) is amended by striking sub7 section (f). 

8 (b) SET-ASIDE FOR COMMUNITY HOUSING DEVEL9 OPMENT ORGANIZATIONS.—Section 231 of the Cranston10 Gonzalez national Affordable Housing Act (42 U.S.C. 

11 12771) is amended— 

12 (1) in subsection (a), by striking ‘‘to be devel13 oped, sponsored, or owned by community housing 

14 development organizations’’ and inserting ‘‘when a 

15 community housing development organization mate16 rially participates in the ownership or development 

17 of such housing, as determined by the Secretary’’; 

18 (2) by striking subsection (b) and inserting the 

19 following: 

20 ‘‘(b) RECAPTURE AND REUSE.—If any funds re21 served under subsection (a) remain uninvested for a period 

22 of 24 months, then the Secretary shall make such funds 

23 available to the participating jurisdiction for any eligible 

24 activities under this title without regard to whether a comVerDate Sep 11 2014 00:15 Feb 03, 2024 Jkt 049200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S3644.IS S3644

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1 munity housing development organization materially par2 ticipates in the use of the funds.’’; and 

3 (3) by striking subsection (c). 

4 TITLE IV—TECHNICAL 

5 CORRECTIONS 

6 SEC. 401. TECHNICAL CORRECTIONS. 

7 The Cranston-Gonzalez National Affordable Housing 

8 Act (42 U.S.C. 12701 et seq.) is amended— 

9 (1) in section 104 (42 U.S.C. 12704)— 

10 (A) by redesignating paragraph (23) (re11 lating to the definition of the term ‘‘to dem12 onstrate to the Secretary’’) as paragraph (22); 

13 and 

14 (B) by redesignating paragraph (24) (re15 lating to the definition of the term ‘‘insular 

16 area’’, as added by section 2(2) of Public Law 

17 102–230) as paragraph (23); 

18 (2) in section 105(b) (42 U.S.C. 12705(b))— 

19 (A) in paragraph (7), by striking ‘‘Stewart 

20 B. McKinney Homeless Assistance Act’’ and in21 serting ‘‘McKinney-Vento Homeless Assistance 

22 Act’’; and 

23 (B) in paragraph (8), by striking ‘‘sub24 paragraphs’’ and inserting ‘‘paragraphs’’; 


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1 (3) in section 106 (42 U.S.C. 12706), by strik2 ing ‘‘Stewart B. McKinney Homeless Assistance 

3 Act’’ and inserting ‘‘McKinney-Vento Homeless As4 sistance Act’’; 

5 (4) in section 108(a)(1) (42 U.S.C. 

6 12708(a)(1)), by striking ‘‘section 105(b)(15)’’ and 

7 inserting ‘‘section 105(b)(18)’’; 

8 (5) in section 212 (42 U.S.C. 12742)— 

9 (A) in subsection (a)— 

10 (i) in paragraph (3)(A)(ii), by insert11 ing ‘‘United States’’ before ‘‘Housing Act’’; 

12 and 

13 (ii) by redesignating paragraph (5) as 

14 paragraph (4); 

15 (B) in subsection (d)(5), by inserting 

16 ‘‘United States’’ before ‘‘Housing Act’’; and 

17 (C) in subsection (e)(1)— 

18 (i) by striking ‘‘section 221(d)(3)(ii)’’ 

19 and inserting ‘‘section 221(d)(4)’’; and 

20 (ii) by striking ‘‘not to exceed 140 

21 percent’’ and inserting ‘‘as determined by 

22 the Secretary’’; 

23 (6) in section 215(a)(6)(B) (42 U.S.C. 20 

24 12745(a)(6)(B)), by striking ‘‘grand children’’ and 

25 inserting ‘‘grandchildren’’; 


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1 (7) in section 217 (42 U.S.C. 12747)— 

2 (A) in subsection (a)— 

3 (i) in paragraph (1), by striking ‘‘(3)’’ 

4 and inserting ‘‘(2)’’; 

5 (ii) by striking paragraph (3), as 

6 added by section 211(a)(2)(D) of the 

7 Housing and Community Development Act 

8 of 1992 (Public Law 102–550; 106 Stat. 

9 3756); and 

10 (iii) by redesignating the remaining 

11 paragraph (3), as added by the matter 

12 under the heading ‘‘HOME INVESTMENT

13 PARTNERSHIPS PROGRAM’’ under the head14 ing ‘‘HOUSING PROGRAMS’’ in title II of 

15 the Departments of Veterans Affairs and 

16 Housing and Urban Development, and 

17 Independent Agencies Appropriations Act, 

18 1993 (Public Law 102–389; 106 Stat. 

19 1581), as paragraph (2); and 

20 (B) in subsection (b)— 

21 (i) in paragraph (1)— 

22 (I) in the first sentence of sub23 paragraph (A)— 


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1 (aa) by striking ‘‘in regula2 tion’’ and inserting ‘‘, by regula3 tion,’’; and 

4 (bb) by striking ‘‘eligible ju5 risdiction’’ and inserting ‘‘eligible 

6 jurisdictions’’; and 

7 (II) in subparagraph (F)— 

8 (aa) in the first sentence— 

9 (AA) in clause (i), by 

10 striking ‘‘Subcommittee on 

11 Housing and Urban Affairs’’ 

12 and inserting ‘‘Sub13 committee on Housing, 

14 Transportation, and Com15 munity Development’’; and 

16 (BB) in clause (ii), by 

17 striking ‘‘Subcommittee on 

18 Housing and Community 

19 Development of the Com20 mittee on Banking, Finance 

21 and Urban Affairs’’ and in22 serting ‘‘Subcommittee on 

23 Housing and Insurance of 

24 the Committee on Financial 

25 Services’’; and 


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1 (bb) in the second sentence, 

2 by striking ‘‘the Committee on 

3 Banking, Finance and Urban Af4 fairs of the House of Representa5 tives’’ and inserting ‘‘the Com6 mittee on Financial Services of 

7 the House of Representatives’’; 

8 (ii) in paragraph (2)(B), by striking 

9 ‘‘$500,000’’ each place that term appears 

10 and inserting ‘‘$750,000’’; 

11 (iii) in paragraph (3)— 

12 (I) by striking ‘‘$500,000’’ each 

13 place that term appears and inserting 

14 ‘‘$750,000’’; and 

15 (II) by striking ‘‘, except as pro16 vided in paragraph (4)’’; and 

17 (iv) by striking paragraph (4); 

18 (8) in section 220(c) (42 U.S.C. 12750(c))— 

19 (A) in paragraph (3), by striking ‘‘Sec20 retary’’ and all that follows and inserting ‘‘Sec21 retary;’’; 

22 (B) in paragraph (4), by striking ‘‘under 

23 this title’’ and all that follows and inserting 

24 ‘‘under this title;’’; and 


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1 (C) by redesignating paragraphs (6), (7), 

2 and (8) as paragraphs (5), (6), and (7), respec3 tively; 

4 (9) in section 225(d)(4)(B) (42 U.S.C. 

5 12755(d)(4)(B)), by striking ‘‘for’’ the first place 

6 that term appears; and 

7 (10) in section 283 (42 U.S.C. 12833)— 

8 (A) in subsection (a), by striking ‘‘Bank9 ing, Finance and Urban Affairs’’ and inserting 

10 ‘‘Financial Services’’; and 

11 (B) in subsection (b), by striking ‘‘General 

12 Accounting Office’’ each place that term ap13 pears and inserting ‘‘Government Account14 ability Office’’. 

Æ 


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