II 

118TH CONGRESS 

2D SESSION S. 3793 

To reauthorize the HOME Investment Partnerships Program, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 9, 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 Banking, Housing, and Urban Affairs 

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 


ssavage on LAPJG3WLY3PROD with BILLS
2 

•S 3793 IS

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; 


ssavage on LAPJG3WLY3PROD with BILLS
3 

•S 3793 IS

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: 


ssavage on LAPJG3WLY3PROD with BILLS
4 

•S 3793 IS

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). 


ssavage on LAPJG3WLY3PROD with BILLS
5 

•S 3793 IS

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’’. 


ssavage on LAPJG3WLY3PROD with BILLS
6 

•S 3793 IS

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 

24 avoiding low-income affordability reVerDate Sep 11 2014 23:17 Feb 20, 2024 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3793.IS S3793

ssavage on LAPJG3WLY3PROD with BILLS
7 

•S 3793 IS

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 


ssavage on LAPJG3WLY3PROD with BILLS
8 

•S 3793 IS

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— 


ssavage on LAPJG3WLY3PROD with BILLS
9 

•S 3793 IS

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: 


ssavage on LAPJG3WLY3PROD with BILLS
10 

•S 3793 IS

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) recapture the investment pro19 vided under this title in order to assist 

20 other persons in accordance with the re21 quirements of this title, except where there 

22 are no net proceeds or where the net pro23 ceeds are insufficient to repay the full 

24 amount of the assistance; and’’; 


ssavage on LAPJG3WLY3PROD with BILLS
11 

•S 3793 IS

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, the Secretary may permit a participating 

10 jurisdiction to allow a community land trust that 

11 used assistance provided under this subtitle for the 

12 development of housing that meets the criteria under 

13 paragraph (1), to acquire the housing— 

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

15 preemptive purchase option, lease, covenant on 

16 the land, or other similar legal instrument of 

17 the community land trust when the terms and 

18 rights in the preemptive purchase option, lease, 

19 covenant, or legal instrument are and remain 

20 subject to the requirements of this title; 

21 ‘‘(B) when the purchase is for— 

22 ‘‘(i) the purpose of— 

23 ‘‘(I) entering into the chain of 

24 title; 


ssavage on LAPJG3WLY3PROD with BILLS
12 

•S 3793 IS

1 ‘‘(II) enabling a purchase by a 

2 person who meets the qualifications 

3 specified under paragraph (1)(B) and 

4 is on a waitlist maintained by the 

5 community land trust, subject to en6 forcement by the participating juris7 diction of all applicable requirements 

8 of this subtitle, as determined by the 

9 Secretary; 

10 ‘‘(III) performing necessary reha11 bilitation and improvements; or 

12 ‘‘(IV) adding a subsidy to pre13 serve affordability; or 

14 ‘‘(ii) another purpose determined ap15 propriate by the Secretary; and 

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

17 after the applicable purpose under subpara18 graph (B) of this paragraph is fulfilled, as de19 termined by the Secretary, the housing is then 

20 sold to a person who meets the qualifications 

21 specified under paragraph (1)(B). 

22 ‘‘(3) SUSPENSION OR WAIVER OF REQUIRE23 MENTS FOR MILITARY MEMBERS.—A participating 

24 jurisdiction, in accordance with terms established by 

25 the Secretary, may suspend or waive a requirement 


ssavage on LAPJG3WLY3PROD with BILLS
13 

•S 3793 IS

1 under paragraph (1)(B) with respect to housing that 

2 otherwise meets the criteria under paragraph (1) if 

3 the owner of the housing— 

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

5 of the armed forces or a member of the Na6 tional Guard on full-time National Guard duty, 

7 active Guard and Reserve duty, or inactive-duty 

8 training (as those terms are defined in section 

9 101(d) of title 10, United States Code); and 

10 ‘‘(B) has received— 

11 ‘‘(i) temporary duty orders to deploy 

12 with a military unit or military orders to 

13 deploy as an individual acting in support of 

14 a military operation, to a location that is 

15 not within a reasonable distance from the 

16 housing, as determined by the Secretary, 

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

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

19 station. 

20 ‘‘(4) SUSPENSION OR WAIVER OF REQUIRE21 MENTS FOR HEIR OR BENEFICIARY OF DECEASED

22 OWNER.—Notwithstanding subparagraph (C) of 

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

24 that paragraph prior to the death of an owner may 

25 continue to qualify as affordable housing if— 


ssavage on LAPJG3WLY3PROD with BILLS
14 

•S 3793 IS

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

2 of an heir or beneficiary of the deceased owner, 

3 as defined by the Secretary; and 

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

5 with terms established by the Secretary, as6 sumes the duties and obligations of the de7 ceased owner with respect to funds provided 

8 under this title.’’. 

9 SEC. 204. HOME PROPERTY INSPECTIONS. 

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

11 Affordable Housing Act (42 U.S.C. 12756(b)) is amend12 ed— 

13 (1) by striking ‘‘Each participating jurisdic14 tion’’ and inserting the following: 

15 ‘‘(1) IN GENERAL.—Each participating jurisdic16 tion’’; and 

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

18 all that follows and inserting the following: 

19 ‘‘(2) ON-SITE INSPECTIONS.— 

20 ‘‘(A) INSPECTIONS BY UNITS OF GENERAL

21 LOCAL GOVERNMENT.—A review conducted 

22 under paragraph (1) by a participating jurisdic23 tion that is a unit of general local government 

24 shall include an on-site inspection to determine 


ssavage on LAPJG3WLY3PROD with BILLS
15 

•S 3793 IS

1 compliance with housing codes and other appli2 cable regulations. 

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

4 conducted under paragraph (1) by a partici5 pating jurisdiction that is a State shall include 

6 an on-site inspection to determine compliance 

7 with a national standard as determined by the 

8 Secretary. 

9 ‘‘(3) INCLUSION IN PERFORMANCE REPORT AND

10 PUBLICATION.—A participating jurisdiction shall in11 clude in the performance report of the participating 

12 jurisdiction submitted to the Secretary under section 

13 108(a), and make available to the public, the results 

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

15 SEC. 205. REVISIONS TO STRENGTHEN ENFORCEMENT AND 

16 PENALTIES FOR NONCOMPLIANCE. 

17 Section 223 of the Cranston-Gonzalez National Af18 fordable Housing Act (42 U.S.C. 12753) is amended— 

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

20 FOR MISUSE OF FUNDS’’ and inserting ‘‘PRO21 GRAM ENFORCEMENT AND PENALTIES FOR

22 NONCOMPLIANCE’’; 

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

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

25 following: ‘‘, including any provision applicable 


ssavage on LAPJG3WLY3PROD with BILLS
16 

•S 3793 IS

1 throughout the period required by section 

2 215(a)(1)(E) and applicable regulations,’’; 

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

4 end; 

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

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

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

8 ‘‘(4) reduce payments to the participating juris9 diction under this subtitle by an amount equal to the 

10 amount of such payments which were not expended 

11 in accordance with this title.’’. 

12 SEC. 206. TENANT AND PARTICIPANT PROTECTIONS FOR 

13 SMALL-SCALE AFFORDABLE HOUSING. 

14 Section 225 of the Cranston-Gonzalez National Af15 fordable Housing Act (42 U.S.C. 12755) is amended by 

16 adding at the end the following: 

17 ‘‘(e) TENANT SELECTION FOR SMALL-SCALE HOUS18 ING.—Paragraphs (2) through (4) of subsection (d) shall 

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

20 in section 215(a)).’’. 

21 SEC. 207. ESTABLISHMENT OF HOME LOAN GUARANTEE 

22 PROGRAM. 

23 Subtitle A of title II of the Cranston-Gonzalez Na24 tional Affordable Housing Act (42 U.S.C. 12741 et seq.) 

25 is amended by adding at the end the following: 


ssavage on LAPJG3WLY3PROD with BILLS
17 

•S 3793 IS

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

2 LOANS FOR ACQUISITION OF PROPERTY. 

3 ‘‘(a) AUTHORITY.— 

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

5 such terms and conditions as the Secretary may pre6 scribe, guarantee and make commitments to guar7 antee, only to such extent or in such amounts as 

8 provided in appropriation Acts, the notes or obliga9 tions issued by participating jurisdictions for the 

10 purposes of financing the development or preserva11 tion of affordable rental and homeownership housing 

12 through the acquisition, new construction, recon13 struction, or moderate or substantial rehabilitation 

14 of affordable housing. 

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

16 of the activities described in paragraph (1), the ex17 penses for which the Secretary may guarantee and 

18 make commitments to guarantee notes or obligations 

19 under that paragraph include real property acquisi20 tion, site improvement, conversion, demolition, and 

21 other expenses, including financing costs and reloca22 tion expenses of any displaced person, family, or 

23 business. 

24 ‘‘(b) LIMITATIONS AND REQUIREMENTS.— 

25 ‘‘(1) ELIGIBILITY.—A guarantee under this sec26 tion may be used to assist a participating jurisdicVerDate Sep 11 2014 23:17 Feb 20, 2024 Jkt 049200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S3793.IS S3793

ssavage on LAPJG3WLY3PROD with BILLS
18 

•S 3793 IS

1 tion in obtaining financing only if the participating 

2 jurisdiction— 

3 ‘‘(A) has made efforts to obtain such fi4 nancing without the use of the guarantee, as 

5 determined by the Secretary; and 

6 ‘‘(B) cannot complete such financing con7 sistent with the timely execution of the project 

8 plans without the guarantee, as determined by 

9 the Secretary. 

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

11 CONDITIONS.—Notes or other obligations guaranteed 

12 under this section shall be in such form and denomi13 nations, have such maturities, and be subject to such 

14 conditions as may be prescribed by regulations 

15 issued by the Secretary. 

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

17 not deny a guarantee under this section on the basis 

18 of the proposed repayment period for the note or 

19 other obligation unless— 

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

21 ‘‘(B) the Secretary determines that the pe22 riod causes the guarantee to constitute an unac23 ceptable financial risk. 

24 ‘‘(4) AGGREGATE PRINCIPAL AMOUNT.—Not25 withstanding any other provision of law and subject 


ssavage on LAPJG3WLY3PROD with BILLS
19 

•S 3793 IS

1 only to the absence of qualified applicants or pro2 posed activities and to the authority provided in this 

3 section, to the extent approved or provided in appro4 priation Acts, the Secretary shall enter into commit5 ments to guarantee notes and obligations under this 

6 section with an aggregate principal amount of not 

7 more than— 

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

9 and 

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

11 amount that is increased for inflation as deter12 mined by the Secretary. 

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

14 a guarantee or commitment to guarantee with respect to 

15 any note or other obligation if— 

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

17 of the issuer guaranteed under this section would 

18 thereby exceed an amount equal to 5 times the most 

19 recent allocation for the issuer under this title; or 

20 ‘‘(2) the Secretary determines that the guar21 antee constitutes an unacceptable risk. 

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

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

24 a participating jurisdiction allocated funds under this Act 

25 may use the funds (including program income derived 


ssavage on LAPJG3WLY3PROD with BILLS
20 

•S 3793 IS

1 therefrom) for the payment of principal and interest due 

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

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

4 associated fee to be paid in accordance with subsection (j), 

5 on a note or other obligation guaranteed under this sec6 tion. 

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

8 PARTICIPATING JURISDICTION.—To assure the repayment 

9 of a note or other obligation guaranteed under this section 

10 and related charges incurred under this section, and as 

11 a condition of receiving such a guarantee, the Secretary 

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

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

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

15 obligation; 

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

17 grant for which the issuer may become eligible under 

18 this Act; and 

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

20 such other security as may be determined appro21 priate by the Secretary in making the guarantee, in22 cluding increments in local tax receipts generated by 

23 the activities assisted under this Act or proceeds 

24 from the sale of land or rehabilitated property. 


ssavage on LAPJG3WLY3PROD with BILLS
21 

•S 3793 IS

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

2 Secretary may, notwithstanding any other provision of this 

3 Act, apply the proceeds of a grant pledged by a partici4 pating jurisdiction under subsection (e)(2) to any repay5 ment due the United States as a result of the guarantee 

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

7 the participating jurisdiction. 

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

9 CONCLUSIVENESS AND VALIDITY OF GUARANTEE.— 

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

11 STATES PLEDGED FOR PAYMENT.—The full faith 

12 and credit of the United States is pledged to the 

13 payment of a note or other obligation guaranteed 

14 under this section. 

15 ‘‘(2) CONCLUSIVENESS AND VALIDITY OF GUAR16 ANTEE.— 

17 ‘‘(A) CONCLUSIVENESS.—A guarantee 

18 made by the Secretary under this section shall 

19 be conclusive evidence of the eligibility of the 

20 obligation for the guarantee with respect to 

21 principal and interest. 

22 ‘‘(B) VALIDITY.—The validity of a guar23 antee made by the Secretary under this section 

24 shall be incontestable in the hands of a holder 

25 of the guaranteed obligation. 


ssavage on LAPJG3WLY3PROD with BILLS
22 

•S 3793 IS

1 ‘‘(3) LIMITATION ON PERCENTAGE.—A guar2 antee made under this section shall guarantee repay3 ment of 100 percent of the unpaid principal and in4 terest due on the notes or other obligations guaran5 teed. 

6 ‘‘(h) LIMIT ON OUTSTANDING OBLIGATIONS; MONI7 TORING USE OF GUARANTEES.— 

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

9 The total amount of outstanding obligations guaran10 teed on a cumulative basis by the Secretary under 

11 this section may not at any time exceed the greater 

12 of— 

13 ‘‘(A) $4,500,000,000; or 

14 ‘‘(B) such higher amount as may be au15 thorized to be appropriated to carry out this 

16 section for a fiscal year. 

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

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

19 monitor the use of guarantees under this sec20 tion by participating jurisdictions. 

21 ‘‘(B) ACTIONS TO ENSURE SUFFICIENT

22 AUTHORITY.—If the Secretary finds under sub23 paragraph (A) that 50 percent of the aggregate 

24 guarantee authority under paragraph (1) has 

25 been committed, the Secretary may— 


ssavage on LAPJG3WLY3PROD with BILLS
23 

•S 3793 IS

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

2 local government that receives a grant 

3 under section 211 may not receive more 

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

5 section; or 

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

7 the enactment of legislation increasing the 

8 amount of the aggregate guarantee author9 ity. 

10 ‘‘(i) PURCHASE OF GUARANTEED OBLIGATIONS BY

11 FEDERAL FINANCING BANK.—The Federal Financing 

12 Bank may not purchase a note or other obligation guaran13 teed under this section. 

14 ‘‘(j) IMPOSITION OF FEE OR CHARGE.—The Sec15 retary shall collect fees from borrowers to result in a credit 

16 subsidy cost of zero for guaranteeing notes or other obliga17 tions under this section. 

18 ‘‘(k) GUARANTEE OF OBLIGATIONS BACKED BY

19 LOANS.— 

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

21 such terms and conditions as the Secretary considers 

22 appropriate, guarantee the timely payment of the 

23 principal of and interest on such trust certificates or 

24 other obligations as may be— 


ssavage on LAPJG3WLY3PROD with BILLS
24 

•S 3793 IS

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

2 other offeror approved for purposes of this sub3 section by the Secretary; and 

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

5 pool composed of notes or other obligations 

6 guaranteed or eligible for guarantee by the Sec7 retary under this section. 

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

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

10 and credit of the United States is pledged to the 

11 payment of all amounts that may be required to be 

12 paid under any guarantee made by the Secretary 

13 under this subsection. 

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

15 claim under a guarantee made under this section, 

16 the Secretary shall be subrogated for all the rights 

17 of the holder of the guaranteed certificate or obliga18 tion with respect to the certificate or obligation. 

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

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

21 the exercise by the Secretary of— 

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

23 public offerings and other sales of notes, trust 

24 certificates, and other obligations guaranteed 


ssavage on LAPJG3WLY3PROD with BILLS
25 

•S 3793 IS

1 under this section upon such terms and condi2 tions as the Secretary determines appropriate; 

3 ‘‘(B) the right to enforce any contract de4 scribed in subparagraph (A) by any means de5 termined appropriate by the Secretary; or 

6 ‘‘(C) any ownership rights of the Sec7 retary, as applicable, in notes, certificates, or 

8 other obligations guaranteed under this section, 

9 or constituting the trust or pool against which 

10 trust certificates, or other obligations guaran11 teed under this section, are offered.’’. 

12 TITLE III—REFORMS RELATING 

13 TO COMMUNITY HOUSING DE14 VELOPMENT ORGANIZATION 

15 AND NONPROFIT PARTICIPA16 TION 

17 SEC. 301. MODIFICATION OF RULES RELATED TO COMMU18 NITY HOUSING DEVELOPMENT ORGANIZA19 TIONS. 

20 (a) DEFINITIONS OF COMMUNITY HOUSING DEVEL21 OPMENT ORGANIZATION AND COMMUNITY LAND

22 TRUST.— 

23 (1) IN GENERAL.—Section 104 of the Cran24 ston-Gonzalez National Affordable Housing Act (42 

25 U.S.C. 12704) is amended— 


ssavage on LAPJG3WLY3PROD with BILLS
26 

•S 3793 IS

1 (A) in paragraph (6)(B)— 

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

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

4 inserting ‘‘or as otherwise determined ac5 ceptable by the Secretary’’; and 

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

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

8 a nonprofit entity or a State or local government or 

9 instrumentality thereof that— 

10 ‘‘(A) is not sponsored by a for-profit orga11 nization; 

12 ‘‘(B) has as a primary purpose the provi13 sion and maintenance of housing that provides 

14 long-term affordability for low- and moderate15 income persons; 

16 ‘‘(C) provides housing described in sub17 paragraph (B) using a ground lease, deed cov18 enant, or other similar legally enforceable meas19 ure, as determined by the Secretary, that— 

20 ‘‘(i) keeps the housing affordable to 

21 low- and moderate-income persons for not 

22 less than 30 years; and 

23 ‘‘(ii) enables low- and moderate-in24 come persons to purchase the housing for 

25 homeownership; and 


ssavage on LAPJG3WLY3PROD with BILLS
27 

•S 3793 IS

1 ‘‘(D) maintains preemptive purchase op2 tions to purchase the property so the housing 

3 remains affordable to low-and moderate-income 

4 persons.’’. 

5 (2) ELIMINATION OF EXISTING DEFINITION OF

6 COMMUNITY LAND TRUST.—Section 233 of the 

7 Cranston-Gonzalez National Affordable Housing Act 

8 (42 U.S.C. 12773) is amended by striking sub9 section (f). 

10 (b) SET-ASIDE FOR COMMUNITY HOUSING DEVELOP11 MENT ORGANIZATIONS.—Section 231 of the Cranston12 Gonzalez national Affordable Housing Act (42 U.S.C. 

13 12771) is amended— 

14 (1) in subsection (a), by striking ‘‘to be devel15 oped, sponsored, or owned by community housing 

16 development organizations’’ and inserting ‘‘when a 

17 community housing development organization mate18 rially participates in the ownership or development 

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

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

21 following: 

22 ‘‘(b) RECAPTURE AND REUSE.—If any funds re23 served under subsection (a) remain uninvested for a period 

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

25 available to the participating jurisdiction for any eligible 


ssavage on LAPJG3WLY3PROD with BILLS
28 

•S 3793 IS

1 activities under this title without regard to whether a com2 munity housing development organization materially par3 ticipates in the use of the funds.’’; and 

4 (3) by striking subsection (c). 

5 TITLE IV—TECHNICAL 

6 CORRECTIONS 

7 SEC. 401. TECHNICAL CORRECTIONS. 

8 The Cranston-Gonzalez National Affordable Housing 

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

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

11 (A) by redesignating paragraph (23) (re12 lating to the definition of the term ‘‘to dem13 onstrate to the Secretary’’) as paragraph (22); 

14 and 

15 (B) by redesignating paragraph (24) (re16 lating to the definition of the term ‘‘insular 

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

18 102–230) as paragraph (23); 

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

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

21 B. McKinney Homeless Assistance Act’’ and in22 serting ‘‘McKinney-Vento Homeless Assistance 

23 Act’’; and 

24 (B) in paragraph (8), by striking ‘‘sub25 paragraphs’’ and inserting ‘‘paragraphs’’; 


ssavage on LAPJG3WLY3PROD with BILLS
29 

•S 3793 IS

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’’; 


ssavage on LAPJG3WLY3PROD with BILLS
30 

•S 3793 IS

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)— 


ssavage on LAPJG3WLY3PROD with BILLS
31 

•S 3793 IS

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 


ssavage on LAPJG3WLY3PROD with BILLS
32 

•S 3793 IS

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 


ssavage on LAPJG3WLY3PROD with BILLS
33 

•S 3793 IS

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 


ssavage on LAPJG3WLY3PROD with BILLS