```

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4156 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4156

To provide for certain improvements in the laws relating to housing for 
                   veterans, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2009

  Mr. Sires introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
To provide for certain improvements in the laws relating to housing for 
                   veterans, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Increasing Housing Opportunities for 
Veterans Act of 2009''.

SEC. 2. LOANS FOR DEVELOPMENT OF SUPPORTIVE HOUSING FOR VETERAN 
              FAMILIES.

    (a) Purpose.--The purposes of this section are--
            (1) to expand the supply of permanent housing for veteran 
        families, including low-, very low-, and extremely low-income 
        veteran families; and
            (2) to provide supportive services through such housing to 
        support the needs of such veteran families.
    (b) Authority.--
            (1) In general.--The Secretary of Housing and Urban 
        Development shall, to the extent amounts are made available for 
        assistance under this section and the Secretary receives 
        approvable applications for such assistance, provide assistance 
        to for-profit developers to expand the supply of supportive 
        housing for veteran families.
            (2) Nature of assistance.--The assistance provided under 
        paragraph (1)--
                    (A) shall be available for use to plan for and 
                finance the acquisition, construction, reconstruction, 
                or moderate or substantial rehabilitation of a 
                structure or a portion of a structure to be used as 
                supportive housing for veteran families in accordance 
                with this section; and
                    (B) may also cover the cost of real property 
                acquisition, site improvement, conversion, demolition, 
                relocation, and other expenses that the Secretary 
                determines are necessary to expand the supply of 
                supportive housing for veteran families.
            (3) Consultation.--In carrying out this section, the 
        Secretary shall consult with the Secretary of Veterans Affairs.
    (c) Forms of Assistance.--Assistance under this section shall be 
made available in the following forms:
            (1) Zero-interest loans.--Assistance may be provided as a 
        loan under this paragraph for the project, subject to the 
        following terms:
                    (A) Zero interest.--The loan shall not bear 
                interest.
                    (B) Repayment.--The loan shall not require the 
                borrower to make payments of principal during the 
                period that the housing remains available for occupancy 
                by veteran families in accordance with this section. If 
                the housing ceases to be available for occupancy in 
                accordance with this section, repayment of the loan 
                principal amount shall be made in accordance with 
                subsection (k)(9).
                    (C) Amount.--The loan shall be in an amount 
                calculated in accordance with the development cost 
                limitation under subsection (i).
            (2) Project rental assistance.--Assistance may be provided 
        as project rental assistance, under an annual contract that--
                    (A) obligates the Secretary to make monthly 
                payments to cover any part of the costs attributed to 
                dwelling units occupied (or, as approved by the 
                Secretary, held for occupancy) by low-income veteran 
                families that is not met from rent contributions of 
                tenants of such units;
                    (B) provides for the project not more than the sum 
                of the initial annual project rentals for all units so 
                occupied and any initial utility allowances for such 
                units, as approved by the Secretary;
                    (C) has an initial term of 240 months and provides 
                that the Secretary shall, subject only to the 
                availability of amounts provided in appropriation Acts, 
                extend the contract for a term of not less than 60 
                months;
                    (D) provides that any contract amounts not used by 
                a project in any year shall remain available to the 
                project until the expiration of the contract;
                    (E) provides that the Secretary shall adjust the 
                annual contract amount to provide for reasonable 
                project costs, and any increases, including adequate 
                reserves, supportive services, and service 
                coordinators, except that any contract amounts not used 
                by a project during a contract term shall not be 
                available for such adjustments upon renewal; and
                    (F) provides that in the event of emergency 
                situations that are outside the control of the owner, 
                the Secretary shall increase the annual contract 
                amount, subject to reasonable review and limitations as 
                the Secretary shall provide.
        In order to facilitate the orderly extension of expiring 
        contracts, the Secretary may make commitments to extend 
        expiring contracts during the year prior to the date of 
        expiration.
    (d) Use Limitations.--
            (1) Use for veterans.--For not less than 40 years, not less 
        than 75 percent of the dwelling units in housing assisted under 
        this section shall be made available for occupancy only by 
        veteran families.
            (2) Use for low-income veterans.--Of the dwelling units in 
        housing assisted under this section that are subject to the use 
        limitation under paragraph (1), a number may be made available, 
        for such periods as may be appropriate, for occupancy only by 
        low-, very low-, or extremely low-income veteran families, in 
        accordance with the need for housing for veteran families 
        having such incomes as latest information in the comprehensive 
        housing affordability strategy for the jurisdiction in which 
        the housing is located, as required under section 105(b)(1) of 
        the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 12705(b)(1)).
    (e) Tenant Rent Contribution.--A low-income veteran family shall 
pay as rent for a dwelling unit in housing assisted under this section 
the highest of the following amounts, rounded to the nearest dollar:
            (1) Thirty percent of the veteran family's adjusted monthly 
        income.
            (2) Ten percent of the veteran family'' monthly income.
            (3) If the veteran family is receiving payments for welfare 
        assistance from a public agency and a part of such payments, 
        adjusted in accordance with the veteran family's actual housing 
        costs, is specifically designated by such agency to meet the 
        veteran family's housing costs, the portion of such payments 
        which is so designated.
    (f) Applications.--
            (1) In general.--Amounts made available under this section 
        shall be allocated by the Secretary among approvable 
        applications submitted by for-profit developers.
            (2) Content of application.--
                    (A) In general.--Applications for assistance under 
                this section shall be submitted by an applicant in such 
                form and in accordance with such procedures as the 
                Secretary shall establish.
                    (B) Required content.--Applications for assistance 
                under this section shall contain--
                            (i) a description of the proposed housing;
                            (ii) a description of the assistance the 
                        applicant seeks under this section;
                            (iii) a description of--
                                    (I) the supportive services to be 
                                provided to the persons occupying such 
                                housing in accordance with subsection 
                                (h);
                                    (II) the manner in which such 
                                services will be provided to such 
                                persons, including identification of 
                                the providers and the location of such 
                                services, and of any transportation 
                                necessary for residents of the housing 
                                to obtain such services, and, in the 
                                case of frail elderly persons (as such 
                                term is defined in section 202 of the 
                                Housing Act of 1959 (12 U.S.C. 1701q)), 
                                evidence of such residential 
                                supervision as the Secretary determines 
                                is necessary to facilitate the adequate 
                                provision of such services; and
                                    (III) the public or private sources 
                                of assistance that can reasonably be 
                                expected to fund or provide such 
                                services;
                            (iv) if the proposed housing reserves units 
                        for low-, very low-, or extremely low-income 
                        veterans pursuant to subsection (d)(2), a 
                        description of the proposed income mix of units 
                        to be reserved for occupancy in accordance with 
                        such subsection;
                            (v) a certification from the public 
                        official responsible for submitting a housing 
                        strategy for the jurisdiction to be served in 
                        accordance with section 105 of the Cranston-
                        Gonzalez National Affordable Housing Act (42 
                        U.S.C. 12705) that the proposed project is 
                        consistent with the approved housing strategy; 
                        and
                            (vi) such other information or 
                        certifications that the Secretary determines to 
                        be necessary or appropriate to achieve the 
                        purposes of this section.
            (3) Rejection.--The Secretary shall not reject any 
        application for assistance under this section on technical 
        grounds without giving notice of that rejection and the basis 
        therefore to the applicant.
    (g) Selection Criteria.--The Secretary shall establish selection 
criteria for assistance under this section, which shall include--
            (1) criteria based upon--
                    (A) the ability of the applicant to develop and 
                operate the proposed housing;
                    (B) the extent to which the proposed housing meets 
                a need for supportive housing for veteran families in 
                the area to be served and, if the proposed housing 
                reserves units for low-, very low-, or extremely low-
                income veterans pursuant to subsection (d)(2), for 
                veteran families in the area of the income levels 
                proposed to be served pursuant to the income mix 
                proposed under subsection (f)(2)(B)(iv);
                    (C) the extent to which the proposed size and unit 
                mix of the housing will enable the applicant to manage 
                and operate the housing efficiently and ensure that the 
                provision of supportive services in accordance with 
                subsection (h) will be accomplished in an economical 
                fashion;
                    (D) the extent to which the proposed design of the 
                housing will meet the service-connected disability 
                needs of veteran families;
                    (E) the extent to which the applicant has 
                demonstrated that the supportive services identified 
                pursuant to subsection (f)(2)(B)(iii) will be provided 
                on a consistent, long-term basis;
                    (F) the extent to which the proposed design of the 
                housing will accommodate the provision of supportive 
                services that are expected to be needed, either 
                initially or over the useful life of the housing, by 
                the veterans the housing is intended to serve;
                    (G) the extent to which the applicant has ensured 
                that a service coordinator will be employed or 
                otherwise retained for the housing, who has the 
                managerial capacity and responsibility for carrying out 
                the actions described in clauses (i) and (ii) of 
                subsection (h)(2)(A); and
                    (H) such other factors as the Secretary determines 
                to be appropriate to ensure that funds made available 
                under this section are used effectively;
            (2) preference in such selection for applications to the 
        extent that the dwelling units in the proposed housing to be 
        reserved for occupancy only by veteran families exceed the 
        percentage of such units required under subsection (d)(1); and
            (3) criteria appropriate to consider the need for 
        supportive housing for veteran families in nonmetropolitan 
        areas and by Indian tribes.
    (h) Provision of Supportive Services to Veteran Families.--
            (1) In general.--Owners of housing assisted under this 
        section shall ensure that veterans and veteran families 
        residing in any housing assisted under this section are 
        provided a range of services tailored to their needs. The 
        Secretary of Housing and Urban Development shall coordinate 
        with the Secretary of Veterans Affairs and owners of such 
        housing to facilitate the provision of such services. Such 
        services may be provided at the site of such housing or off-
        site, and may include services for--
                    (A) outreach;
                    (B) health (including counseling, mental health, 
                substance abuse, post-traumatic stress disorder, and 
                traumatic brain injury) diagnosis and treatment;
                    (C) habilitation and rehabilitation;
                    (D) case management;
                    (E) daily living;
                    (F) personal financial planning;
                    (G) transportation;
                    (H) vocation;
                    (I) employment and training;
                    (J) education;
                    (K) assistance in obtaining veterans benefits and 
                public benefits;
                    (L) assistance in obtaining income support;
                    (M) assistance in obtaining health insurance;
                    (N) fiduciary and representative payee;
                    (O) legal aid;
                    (P) child care;
                    (Q) housing counseling;
                    (R) service coordination; and
                    (S) other services necessary for maintaining 
                independent living.
            (2) Local coordination of services.--
                    (A) In general.--The Secretary of Housing and Urban 
                Development shall coordinate with the Secretary of the 
                Department of Veterans Affairs to ensure that owners of 
                housing assisted under this section have the managerial 
                capacity to--
                            (i) assess on an ongoing basis the service 
                        needs of residents;
                            (ii) coordinate the provision of supportive 
                        services and tailor such services to the 
                        individual needs of residents; and
                            (iii) seek on a continuous basis new 
                        sources of assistance to ensure the long-term 
                        provision of supportive services.
                    (B) Classification of costs.--Any cost associated 
                with this subsection relating to the coordination of 
                services shall be an eligible cost under subsections 
                (c)(2).
    (i) Development Cost Limitations.--
            (1) In general.--The Secretary shall periodically establish 
        reasonable development cost limitations by market area for 
        various types and sizes of supportive housing for low-income 
        veteran families by publishing a notice of the cost limitations 
        in the Federal Register.
            (2) Considerations.--The cost limitations established under 
        paragraph (1) shall reflect--
                    (A) the cost of construction, reconstruction, or 
                moderate or substantial rehabilitation of supportive 
                housing for low-income veteran families that meets 
                applicable State and local housing and building codes;
                    (B) the cost of movables necessary to the basic 
                operation of the housing, as determined by the 
                Secretary;
                    (C) the cost of special design features necessary 
                to make the housing accessible to low-income veteran 
                families;
                    (D) the cost of community space necessary to 
                accommodate the provision of supportive services to 
                veteran families;
                    (E) if the housing is newly constructed, the cost 
                of meeting the energy efficiency standards promulgated 
                by the Secretary in accordance with section 109 of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 12709); and
                    (F) the cost of land, including necessary site 
                improvement.
            (3) Use of data.--In establishing development cost 
        limitations for a given market area under this subsection, the 
        Secretary shall use data that reflect currently prevailing 
        costs of construction, reconstruction, or moderate or 
        substantial rehabilitation, and land acquisition in the area.
            (4) Community space.--For purposes of paragraph (2), a 
        community space shall include space for cafeterias or dining 
        halls, community rooms or buildings, workshops, child care, 
        adult day health facilities or other outpatient health 
        facilities, or other essential service facilities.
            (5) Commercial facilities.--Neither this section nor any 
        other provision of law may be construed as prohibiting or 
        preventing the location and operation, in a project assisted 
        under this section, of commercial facilities for the benefit of 
        residents of the project and the community in which the project 
        is located, except that assistance made available under this 
        section may not be used to subsidize any such commercial 
        facility.
            (6) Acquisition.--In the case of existing housing and 
        related facilities to be acquired, the cost limitations shall 
        include--
                    (A) the cost of acquiring such housing;
                    (B) the cost of rehabilitation, alteration, 
                conversion, or improvement, including the moderate or 
                substantial rehabilitation thereof; and
                    (C) the cost of the land on which the housing and 
                related facilities are located.
            (7) Annual adjustments.--The Secretary shall adjust the 
        cost limitation not less than annually to reflect changes in 
        the general level of construction, reconstruction, and moderate 
        and substantial rehabilitation costs.
            (8) Incentives for savings.--
                    (A) Special housing account.--
                            (i) In general.--The Secretary shall use 
                        the development cost limitations established 
                        under paragraph (1) or (6) to calculate the 
                        amount of financing to be made available to 
                        individual owners.
                            (ii) Actual developmental costs less than 
                        financing.--Owners who incur actual development 
                        costs that are less than the amount of 
                        financing shall be entitled to retain 50 
                        percent of the savings in a special housing 
                        account.
                            (iii) Bonus for energy efficiency.--The 
                        percentage established under clause (ii) shall 
                        be increased to 75 percent for owners which add 
                        energy efficiency features which--
                                    (I) exceed the energy efficiency 
                                standards promulgated by the Secretary 
                                in accordance with section 109 of the 
                                Cranston-Gonzalez National Affordable 
                                Housing Act (42 U.S.C. 12709);
                                    (II) substantially reduce the life-
                                cycle cost of the housing; and
                                    (III) reduce gross rent 
                                requirements.
                    (B) Uses.--The special housing account established 
                under subparagraph (A) may be used--
                            (i) to provide services to residents of the 
                        housing or funds set aside for replacement 
                        reserves; or
                            (ii) for such other purposes as determined 
                        by the Secretary.
            (9) Design flexibility.--The Secretary shall, to the extent 
        practicable, give owners the flexibility to design housing 
        appropriate to their location and proposed resident population 
        within broadly defined parameters.
            (10) Use of funds from other sources.--An owner shall be 
        permitted voluntarily to provide funds from sources other than 
        this section for amenities and other features of appropriate 
        design and construction suitable for supportive housing under 
        this section if the cost of such amenities is--
                    (A) not financed with the advance; and
                    (B) is not taken into account in determining the 
                amount of Federal assistance or of the rent 
                contribution of tenants.
    (j) Tenant Selection.--
            (1) In general.--An owner shall adopt written tenant 
        selection procedures that are--
                    (A) satisfactory to the Secretary and which are--
                            (i) consistent with the purpose of 
                        improving housing opportunities for veteran 
                        families and any units reserved for use 
                        pursuant to subsection (d)(2); and
                            (ii) reasonably related to program 
                        eligibility and an applicant's ability to 
                        perform the obligations of the lease; and
                    (B) compliant with subtitle C of title VI of the 
                Housing and Community Development Act of 1992 (42 
                U.S.C. 13601 et seq.) and any regulations issued under 
                such subtitle.
            (2) Notification of rejection.--Owners shall promptly 
        notify in writing any rejected applicant of the grounds for any 
        rejection.
            (3) Information regarding housing.--
                    (A) In general.--The Secretary shall provide, to 
                the Secretary of Veterans Affairs and the Secretary of 
                Labor, information regarding the availability of the 
                housing assisted under this section.
                    (B) Sharing of information with additional 
                agencies.--Within 30 days of receipt of the 
                information, the Secretary of Veterans Affairs and 
                Secretary of Labor shall provide such information to 
                agencies in the area of the housing that receive 
                assistance from the Department of Veterans Affairs and 
                the Department of Labor for providing medical care, 
                housing, supportive services or employment and training 
                services to homeless veterans.
    (k) Miscellaneous Provisions.--
            (1) Technical assistance.--The Secretary shall make 
        available appropriate technical assistance to ensure that 
        prospective applicants are able to participate more fully in 
        the program carried out under this section.
            (2) Civil rights compliance.--Each owner shall certify, to 
        the satisfaction of the Secretary, that assistance made 
        available under this section will be conducted and administered 
        in conformity with title VI of the Civil Rights Act of 1964 (42 
        U.S.C. 2000a et seq.), the Fair Housing Act (42 U.S.C. 3601 et 
        seq.), and other Federal, State, and local laws prohibiting 
        discrimination and promoting equal opportunity.
            (3) Owner deposit.--
                    (A) In general.--The Secretary shall require an 
                owner of housing, assisted under this section, to 
                deposit an amount not to exceed $25,000 in a special 
                escrow account to ensure the owner's commitment to the 
                housing. Such amount shall be used only to cover 
                operating deficits during the first three years of 
                operations and shall not be used to cover construction 
                shortfalls or inadequate initial project rental 
                assistance amounts.
                    (B) Reduction of requirement.--The Secretary may 
                reduce or waive the owner deposit specified under 
                subparagraph (A) for individual applicants if the 
                Secretary finds that such waiver or reduction is 
                necessary to achieve the purposes of this section and 
                the applicant demonstrates to the satisfaction of the 
                Secretary that it has the capacity to manage and 
                maintain the housing in accordance with this section.
            (4) Notice of appeal.--
                    (A) In general.--The Secretary shall notify an 
                owner not less than 30 days prior to canceling any 
                reservation of assistance provided under this section.
                    (B) Appeal.--
                            (i) Filing deadline.--During the 30-day 
                        period following the receipt of any notice 
                        required under subparagraph (A), an owner may 
                        appeal the proposed cancellation.
                            (ii) Timing of decision.--Any appeal 
                        undertaken under clause (i), including review 
                        by the Secretary, shall be completed not later 
                        than 45 days after the appeal is filed.
            (5) Labor.--
                    (A) In general.--The Secretary shall take such 
                action as may be necessary to ensure that all laborers 
                and mechanics employed by contractors and 
                subcontractors in the construction of housing with 12 
                or more units assisted under this section shall be paid 
                wages at rates not less than the rates prevailing in 
                the locality involved for the corresponding classes of 
                laborers and mechanics employed on construction of a 
                similar character, as determined by the Secretary of 
                Labor in accordance with subchapter IV of chapter 31 of 
                title 40, United States Code.
                    (B) Exemption.--Subparagraph (A) shall not apply to 
                any individual who--
                            (i) performs services for which the 
                        individual volunteered;
                            (ii) does not receive compensation for such 
                        services or is paid expenses, reasonable 
                        benefits, or a nominal fee for such services; 
                        and
                            (iii) is not otherwise employed at any time 
                        in the construction work.
            (6) Access to residual receipts.--
                    (A) In general.--The Secretary shall authorize the 
                owner of a housing project assisted under this section 
                to use any residual receipts held for the project in 
                excess of $500 per unit (or in excess of such other 
                amount prescribed by the Secretary based on the needs 
                of the project) for activities to retrofit and renovate 
                the project as described under section 802(d)(3) of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 8011(d)(3)) or to provide supportive services to 
                residents of the project.
                    (B) Report.--Any owner that uses residual receipts 
                under this paragraph shall submit to the Secretary a 
                report, not less than annually, describing the uses of 
                the residual receipts.
                    (C) Determination of amount.--In determining the 
                amount of project rental assistance under subsection 
                (c)(2) of this section to be provided to a project, the 
                Secretary may take into consideration the residual 
                receipts held for the project only if, and to the 
                extent that, excess residual receipts are not used 
                under this paragraph.
            (7) Occupancy standards and obligations.--Each owner shall 
        operate housing assisted under this section in compliance with 
        subtitle C of title VI of the Housing and Community Development 
        Act of 1992 (42 U.S.C. 13601 et seq.) and any regulations 
        issued under such subtitle.
            (8) Use of project reserves.--
                    (A) In general.--Amounts for project reserves for a 
                project assisted under this section may be used for 
                costs, subject to reasonable limitations as the 
                Secretary determines appropriate, for reducing the 
                number of dwelling units in the project.
                    (B) Approval of secretary required.--Any use 
                described in subparagraph (A) of amounts for project 
                reserves for a project assisted under this section 
                shall be subject to the approval of the Secretary to 
                ensure that such use is designed to retrofit units that 
                are currently obsolete or unmarketable.
            (9) Repayment of assistance and prevention of undue 
        benefits.--
                    (A) Repayment.--If a recipient, or a project 
                sponsor receiving funds from the recipient, receives 
                assistance under subsection (b) as a loan pursuant to 
                paragraph (1) of such subsection for the construction, 
                acquisition, or rehabilitation of supportive housing 
                for veteran families and the project ceases to provide 
                such permanent housing, the Secretary shall require the 
                recipient, or such project sponsor, to repay the 
                following percentage of such loan principal amount:
                            (i) In the case of a project that ceases to 
                        be used for such supportive housing before the 
                        expiration of the 10-year period beginning upon 
                        commencement of the operation of the project, 
                        100 percent.
                            (ii) In the case of a project that ceases 
                        to be used for such supportive housing on or 
                        after the expiration of the 10-year period 
                        beginning upon commencement of the operation of 
                        the project, but before the expiration of the 
                        20-year period beginning upon such 
                        commencement, 75 percent.
                            (iii) In the case of a project that ceases 
                        to be used for such supportive housing on or 
                        after the expiration of the 20-year period 
                        beginning upon commencement of the operation of 
                        the project, but before the expiration of the 
                        30-year period beginning upon such 
                        commencement, 50 percent.
                            (iv) In the case of a project that ceases 
                        to be used for such supportive housing on or 
                        after the expiration of the 30-year period 
                        beginning upon commencement of the operation of 
                        the project, but before the expiration of the 
                        40-year period beginning upon such 
                        commencement, 25 percent.
                    (B) Prevention of undue benefits.--Except as 
                provided in paragraph (C), if any property is used for 
                a project that receives assistance under subsection (b) 
                as a loan pursuant to paragraph (2) of such subsection 
                for the construction, acquisition or rehabilitation of 
                supportive housing for veteran families, and the sale 
                or other disposition of the property occurs before the 
                expiration of the 40-year period beginning upon 
                commencement of the operation of the project, the 
                recipient (or the project sponsor receiving funds from 
                the recipient) shall comply with such terms and 
                conditions as the Secretary may prescribe to prevent 
                the recipient (or such project sponsor) from unduly 
                benefitting from such sale or disposition.
                    (C) Exception.--A recipient, or a project sponsor 
                receiving funds from the recipient, shall not be 
                required to make repayments, and comply with the terms 
                and conditions, required under subparagraph (A) or (B) 
                if--
                            (i) the sale or disposition of the property 
                        used for the project results in the use of the 
                        property for the direct benefit of veteran 
                        families;
                            (ii) all of the proceeds of the sale or 
                        disposition are used to provide permanent 
                        housing for veteran families meeting the 
                        requirements of this section; or
                            (iii) project-based rental assistance or 
                        operating cost assistance from any Federal 
                        program or an equivalent State or local program 
                        is no longer made available and the project is 
                        meeting applicable performance standards, 
                        provided that the portion of the project that 
                        had benefitted from such assistance continues 
                        to meet the tenant income and rent restrictions 
                        for low-income units under section 42(g) of the 
                        Internal Revenue Code of 1986.
            (10) Continued eligibility of veteran families.--A veteran 
        family residing in supportive housing assisted under this 
        section may not be considered to lose its status as such a 
        family for purposes of eligibility for continued occupancy in 
        such housing due to the death of any veteran member of the 
        family, including the sole veteran member of the family.
    (l) Definitions.--In this section, the following definitions shall 
apply:
            (1) Extremely low-income veteran family.--The term 
        ``extremely low-income veteran family'' means a veteran family 
        whose income does not exceed 30 percent of the median income 
        for the area, as determined by the Secretary with adjustments 
        for smaller and larger families, except that the Secretary may 
        establish an income ceiling higher or lower than 30 percent of 
        the median for the area on the basis of the Secretary's 
        findings that such variations are necessary because of 
        prevailing levels of construction costs or fair market rents 
        (as determined under section 8 of the United States Housing Act 
        of 1937 (42 U.S.C. 1437f)), or unusually high or low family 
        incomes.
            (2) Low-income veteran family.--The term ``low-income 
        veteran family'' means a veteran family whose income does not 
        exceed 80 percent of the median income for the area, as 
        determined by the Secretary with adjustments for smaller and 
        larger families, except that the Secretary may establish an 
        income ceiling higher or lower than 80 percent of the median 
        for the area on the basis of the Secretary's findings that such 
        variations are necessary because of prevailing levels of 
        construction costs or fair market rents (as determined under 
        section 8 of the United States Housing Act of 1937 (42 U.S.C. 
        1437f)), or unusually high or low family incomes. The term 
        includes a very low- or extremely low-income veteran family.
            (3) Owner.--The term ``owner'' means a person or entity 
        that is for-profit developer that receives assistance under 
        this section to develop and operate supportive housing for 
        veteran families.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development, except where specifically 
        provided otherwise.
            (5) State.--The term ``State'' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, and 
        the possessions of the United States.
            (6) Supportive housing for veteran families.--The term 
        ``supportive housing for veteran families'' means housing that 
        is designed to accommodate the provision of supportive services 
        that are expected to be needed, either initially or over the 
        useful life of the housing, by the veteran families that the 
        housing is intended to serve.
            (7) Veteran.--The term ``veteran'' has the meaning given 
        the term in section 101 of title 38, United States Code.
            (8) Veteran family.--The term ``veteran family'' includes a 
        veteran who is a single person, a family (including families 
        with children) whose head of household (or whose spouse) is a 
        veteran, and one or more veterans living together with 1 or 
        more persons.
            (9) Very low-income veteran family.--The term ``very low-
        income veteran family'' means a veteran family whose income 
        does not exceed 50 percent of the median income for the area, 
        as determined by the Secretary with adjustments for smaller and 
        larger families, except that the Secretary may establish an 
        income ceiling higher or lower than 50 percent of the median 
        for the area on the basis of the Secretary's findings that such 
        variations are necessary because of prevailing levels of 
        construction costs or fair market rents (as determined under 
        section 8 of the United States Housing Act of 1937 (42 U.S.C. 
        1437f)), or unusually high or low family incomes. The term 
        includes an extremely low-income veteran family.
    (m) Funding.--
            (1) Use of tarp funds.--Using the authority available under 
        sections 101(a) and 115(a) of division A of the Emergency 
        Economic Stabilization Act of 2008 (12 U.S.C. 5211(a), 
        5225(a)), the Secretary of the Treasury shall transfer to the 
        Secretary of Housing and Urban Development $2,425,000,000, and 
        the Secretary of Housing and Urban Development shall use such 
        amount only for assistance for supportive housing for veteran 
        families under this section, as follows:
                    (A) Availability for obligation.--Of such amount, 
                $485,000,000 shall be available for such assistance in 
                each of fiscal years 2010, 2011, 2012, 2013, and 2014.
                    (B) Use for zero-interest loans and project rental 
                assistance.--Of the amount made available under 
                subparagraph (A) in each of the fiscal years referred 
                to in such subparagraph--
                            (i) $375,000,000 shall be available for 
                        zero-interest loans under subsection (c)(1); 
                        and
                            (ii) $110,000,000 shall be available for 
                        project rental assistance under subsection 
                        (c)(2).
            (2) Reduction of tarp authorization limit to offset 
        costs.--Paragraph (3) of section 115(a) of the Emergency 
        Economic Stabilization Act of 2008 (12 U.S.C. 5225) is amended 
        by inserting ``as such amount is reduced by $2,425,000,000'' 
        after ``$700,000,000,000,''.

SEC. 3. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGIES.

    (a) In General.--Section 105 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12705) is amended--
            (1) in subsection (b)(1), by inserting ``veterans (as such 
        term is defined in section 101 of title 38, United States Code) 
        of such varying incomes,'' after ``acquired immunodeficiency 
        syndrome,'';
            (2) in subsection (b)(20), by striking ``and service'' and 
        inserting ``veterans service, and other service''; and
            (3) in subsection (e)(1), by inserting ``veterans (as such 
        term is defined in section 101 of title 38, United States 
        Code),'' after ``homeless persons,''.
    (b) Consolidated Plans.--The Secretary of Housing and Urban 
Development shall revise the regulations relating to submission of 
consolidated plans (part 91 of title 24, Code of Federal Regulations) 
in accordance with the amendments made by subsection (a) of this 
section to require inclusion of appropriate information relating to 
veterans and veterans service agencies in all such plans.

SEC. 4. COMPTROLLER GENERAL STUDY ON THE AVAILABILITY OF CREDIT FOR 
              VETERANS OF OPERATION IRAQI FREEDOM AND OPERATION 
              ENDURING FREEDOM.

    (a) Study Required.--The Comptroller General shall carry out a 
study on the availability of credit for veterans of Operation Iraqi 
Freedom and Operation Enduring Freedom. As part of the study, the 
Comptroller General shall determine whether the home loan guarantee 
program administered by the Secretary is helpful to such veterans.
    (b) Report to Congress.--Not later than the expiration of the 180-
day period beginning on the date of the enactment of this Act, the 
Comptroller General shall submit to Congress a report on the study 
required under subsection (a).

SEC. 5. INACTIVE RESERVISTS FORECLOSURE PREVENTION.

    (a) Mortgage Assistance Program.--
            (1) In general.--The Secretary of Housing and Urban 
        Development shall, to the extent amounts are made available for 
        mortgage assistance under this section, carry out a program 
        under this section to provide mortgage assistance through the 
        provision of grants and loans for direct mortgage payments on 
        behalf of eligible households.
            (2) Eligible mortgages.--Mortgage assistance under this 
        section may be provided only with respect to a mortgage that 
        meets all of the following requirements:
                    (A) Mortgagor requirements.--The mortgagor under 
                the mortgage--
                            (i) is a member of an eligible household 
                        that resides in the property that is subject to 
                        the mortgage; and
                            (ii) has not, during the 24-month period 
                        ending upon the date that the mortgagor submits 
                        an application for assistance under this 
                        section, been more than 60 days in arrears 
                        under any mortgage for residential property.
                    (B) Dwelling requirements.--The property that is 
                subject to the mortgage is--
                            (i) designed principally as a residential 
                        property; and
                            (ii) the primary place of residence of the 
                        mortgagor and the mortgagor's household.
    (b) Assistance Payments.--
            (1) Monthly direct payment.--The Secretary shall design and 
        implement the program under this section in a manner that 
        provides that any amounts paid by the Secretary for mortgage 
        assistance with respect to an eligible mortgage are paid on a 
        monthly basis directly to the mortgagee or other servicer of 
        the mortgage.
            (2) Period of assistance.--
                    (A) In general.--Payment under the program under 
                this section with respect to an eligible mortgage may 
                be made only for scheduled payments due under the terms 
                of the mortgage (as in effect pursuant to any 
                applicable provisions of law) during the period that a 
                member of the eligible household who is an eligible 
                member of the Armed Forces is serving on active duty 
                for a period of more than 30 days in the Armed Forces.
                    (B) Extended deployments.--The Secretary shall 
                ensure that in determining the amount of assistance to 
                be provided with respect to an eligible mortgage and 
                the period for which such assistance will be provided, 
                sufficient amounts for such assistance shall be 
                reserved under the program under this section to 
                provide for unpredictability and extensions in the 
                period of active duty of eligible members of the Armed 
                Forces.
            (3) Determination of amount of assistance.--Subject to 
        paragraph (4), the Secretary shall determine the amount of 
        assistance to be provided with respect to an eligible mortgage 
        based upon criteria established by the Secretary, by 
        regulation.
            (4) Limitations on amount of assistance.--The amount of 
        assistance provided under the program under this section with 
        respect to any eligible mortgage may not exceed the following 
        amounts:
                    (A) Monthly amount.--With respect to the assistance 
                payment for any single month, the amount due to be paid 
                for such month under the terms of the mortgage (as in 
                effect pursuant to any applicable provisions of law) 
                for principal, interest, mortgage insurance for the 
                mortgage, and any scheduled deposit in an escrow 
                account for the purpose of ensuring payment of taxes, 
                insurance, assessments, and other charges with respect 
                to the property subject to the mortgage.
                    (B) Aggregate amount.--An aggregate amount 
                assistance over the entire period under paragraph (2) 
                that assistance is provided with respect to the 
                mortgage, which shall be established by the Secretary 
                taking into consideration the total amount made 
                available for the program under this section.
            (5) Prevention of double payments.--The Secretary shall 
        take appropriate actions to ensure that, in the case of any 
        payment on an eligible mortgage paid by a mortgagor for any 
        period for which payment has already been made under the 
        program under this section, the mortgagor or other servicer of 
        the mortgage shall return such payment within a reasonable 
        period of time or shall immediately credit such payment toward 
        amortization of the principal obligation under the mortgage, 
        and promptly notify the mortgagor of such credit.
    (c) Repayment of Assistance.--
            (1) Grant assistance; no repayment.--
                    (A) In general.--Any assistance provided under the 
                program under this section with respect to any eligible 
                mortgage during any period during which the annual 
                income of household of the mortgagor, as determined by 
                the Secretary, does not exceed 200 percent of the 
                poverty line applicable to a family of the size 
                involved shall be in the form of a grant and, except as 
                provided in subparagraph (B), the Secretary may not 
                require repayment of any such amounts.
                    (B) Repayment in cases of foreclosure.--If the 
                mortgagee for any eligible mortgage for which 
                assistance payments are made pursuant to this 
                subsection forecloses on the mortgage, takes legal 
                action to enforce the mortgage obligation, or otherwise 
                recovers possession of any security of the mortgage as 
                a result of default on the obligation of the mortgage, 
                the Secretary shall terminate payment of assistance 
                under this section with respect to the mortgage and 
                shall treat any assistance previously provided with 
                respect to the mortgage as assistance in the form of a 
                loan pursuant to paragraph (2).
            (2) Loan assistance; repayment required.--Any assistance 
        provided under the program under this section with respect to 
        any eligible mortgage during any period during which the annual 
        income of household of the mortgagor, as determined by the 
        Secretary, exceeds 200 percent of the poverty line applicable 
        to a family of the size involved shall be in the form of a 
        loan, as follows:
                    (A) No interest.--Such loan shall not bear any 
                interest.
                    (B) 10-year term.--Such loan shall have a term to 
                maturity of 10 years, which shall not commence until 
                the period of assistance under subsection (b)(2) with 
                respect to mortgage has terminated.
                    (C) Security.--Repayment of such loan shall be 
                secured by a lien on the residential property that is 
                subject to the eligible mortgage for which the 
                assistance under this section was provided under the 
                loan, in the aggregate amount of such loan assistance 
                provided. Such lien shall be held by the Secretary and 
                shall be subordinate to other mortgages and other 
                secured liens on the property in effect upon the date 
                that assistance under the program under this section is 
                first provided for the mortgage, and to any Federal tax 
                lien, but shall be superior to any other lien.
                    (D) Agreement.--The terms of such loan shall be set 
                forth in a written agreement, as the Secretary 
                considers appropriate, between the Secretary and the 
                mortgagor.
    (d) Application for Assistance.--
            (1) In general.--To be eligible for mortgage assistance 
        under this section, a mortgagor for an eligible mortgage shall 
        submit an application for such assistance in such form and 
        manner as the Secretary shall require, which shall provide such 
        information regarding the eligible mortgage as the Secretary 
        shall require, including information sufficient for the 
        Secretary to comply with paragraph (2), and shall include a 
        financial statement disclosing all income of each member of the 
        household of the mortgagor regardless of source. An application 
        for such assistance may be submitted before the eligible member 
        of the Armed Forces who is a member of the eligible household 
        begins active duty described in subsection (g)(2).
            (2) Notification to mortgagee and servicer.--Upon 
        submission of an application under paragraph (1), the Secretary 
        shall notify the mortgagee and servicer, if the mortgagee is 
        not the servicer, of the eligible mortgage of the submission of 
        the application for assistance under this section.
            (3) Income information.--The Secretary shall require that 
        each such application include a certification by the mortgagor 
        for the eligible mortgage of the anticipated income of the 
        household of the mortgagor during the anticipated period of 
        assistance under this section, which, in the case of an 
        application described in the last sentence of paragraph (1), 
        may be based on household income in the month before 
        commencement of the active duty of the eligible member of the 
        Armed Forces, less any such income attributable to such 
        eligible member, plus the expected military pay of such 
        eligible member. The Secretary may make a determination 
        regarding compliance of the income of a mortgagor's household 
        with the requirements under paragraphs (1)(A) and (2) of 
        subsection (c) based upon such a certification, subject to such 
        reviews as the Secretary shall, by regulation, provide.
            (4) Effect of misrepresentation.--A mortgagor who is 
        determined to have intentionally misrepresented any financial 
        information in connection with the filing of an application for 
        assistance under this section may be denied assistance and 
        required to immediately repay any amount of assistance already 
        received, and the mortgagee may, at any time thereafter, take 
        any legal action to enforce the mortgage, if appropriate.
            (5) Review and determination.--
                    (A) In general.--The Secretary shall review each 
                application submitted for assistance under this section 
                and make a determination regarding the eligibility for 
                assistance of the mortgage specified in the application 
                not later than 30 days after receipt of the application 
                of the mortgagor, and shall notify the mortgagor and 
                the mortgagee and servicer of approval or disapproval 
                of such application not later than 30 days after making 
                the determination regarding approval.
                    (B) Failure to make determination.--If the 
                Secretary fails to make a determination regarding 
                eligibility for assistance of a mortgage during the 30-
                day period specified in subparagraph (A) or fails to 
                provide the notice regarding such determination as 
                required under such paragraph, the mortgage shall be 
                considered for purposes of this section to have been 
                approved as eligible for assistance upon the date that 
                the application for the mortgage was submitted to the 
                Secretary.
    (e) Coordination With Other Agencies and Entities.--
            (1) Publicity.--The Secretary shall take such action as may 
        be necessary to ensure that eligible households and eligible 
        members of the Armed Forces are aware of and informed about the 
        availability of and requirements for mortgage assistance under 
        this section, which may include consulting and coordinating 
        appropriate activities with the Secretary of Defense, the 
        Federal financial institutions regulatory agencies, financial 
        institutions regulated by such regulatory agencies, other 
        mortgage lenders, the Federal National Mortgage Association, 
        the Federal Home Loan Mortgage Corporation, and mortgage 
        counseling agencies.
            (2) Implementation.--The Secretary shall consider using 
        States, State or local agencies (including housing and housing 
        finance agencies), mortgage lenders and other financial 
        institutions, and other entities to conduct some or all of the 
        functions and responsibilities involved in carrying out the 
        program for mortgage assistance under this section and may 
        enter into agreements with such entities to provide for such 
        entities to carry out such functions and responsibilities as 
        the Secretary considers appropriate to ensure that such 
        assistance is provided in an effective and efficient manner.
    (f) Savings Clause.--This section may not be construed to alter, 
affect, or limit any provision of the Servicemembers Civil Relief Act 
(50 U.S.C. App. 501 et seq.).
    (g) Definitions.--For the purposes of this section, the following 
definitions apply:
            (1) Active duty.--The terms ``active duty'' and ``active 
        duty for a period of more than 30 days'' have the meanings 
        given such terms in section 101(d) of title 10, United States 
        Code.
            (2) Eligible member of the armed forces.--The term 
        ``eligible member of the Armed Forces'' means a member of the 
        Armed Forces who, while a member of the Individual Ready 
        Reserve or the inactive National Guard, is serving on active 
        duty pursuant to a call or order to active duty for a period of 
        more than 30 days.
            (3) Eligible mortgage.--The term ``eligible mortgage'' 
        means any mortgage that meets the requirements of subsection 
        (a)(2) for assistance under this section.
            (4) Eligible household.--The term ``eligible household'' 
        means a household that--
                    (A) contains a member who is an eligible member of 
                the Armed Forces; and
                    (B) has been determined by the Secretary to be 
                eligible for mortgage assistance under this section.
            (5) Federal financial institutions regulatory agencies.--
        The term ``Federal financial institutions regulatory agencies'' 
        means the Office of the Comptroller of the Currency, the Board 
        of Governors of the Federal Reserve System, the Federal Deposit 
        Insurance Corporation, the Office of Thrift Supervision, and 
        the National Credit Union Administration.
            (6) Household.--The term ``household'' means a mortgagor, 
        the mortgagor's spouse, children residing in the same residence 
        as the mortgagor, and any other person living in such residence 
        that is declared by the mortgagor as a dependent for Federal 
        income tax purposes.
            (7) Income.--The term ``income'' means, with respect to the 
        household of an eligible mortgagor, the aggregate income from 
        the all sources of each member of the household, as determined 
        in accordance with criteria prescribed by the Secretary.
            (8) Mortgage; mortgagee; mortgagor.--The terms 
        ``mortgage'', ``mortgagee'', and ``mortgagor'' have the 
        meanings given such terms in section 201 of the National 
        Housing Act (12 U.S.C. 1707).
            (9) Poverty line.--The term ``poverty line'' has the 
        meaning given such term in section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981, including any revision required by 
        such section.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (11) Servicer.--The term ``servicer'' has the meaning given 
        such term in section 6(i) of the Real Estate Settlement 
        Procedures Act of 1974 (12 U.S.C. 2605(i)).
    (h) Funding.--
            (1) Use of tarp funds.--Using the authority available under 
        sections 101(a) and 115(a) of division A of the Emergency 
        Economic Stabilization Act of 2008 (12 U.S.C. 5211(a), 
        5225(a)), the Secretary of the Treasury shall transfer to the 
        Secretary of Housing and Urban Development $25,000,000, and the 
        Secretary of Housing and Urban Development shall use such 
        amount only for mortgage assistance under this section, 
        including costs (as such term is defined in section 502 of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661a) of loans 
        under subsection (c)(2) of this section, except that of such 
        amount $5,000,000 shall be available for such assistance in 
        each of fiscal years 2010, 2011, 2012, 2013, and 2014.
            (2) Reduction of tarp authorization limit to offset 
        costs.--Paragraph (3) of section 115(a) of the Emergency 
        Economic Stabilization Act of 2008 (12 U.S.C. 5225), as amended 
        by section 3(m)(2) of this Act, is further amended by inserting 
        ``, as such amount is reduced by $25,000,000'' after 
        ``$700,000,000,000,''.
    (i) Regulations.--Not later than the expiration of the 180-day 
period beginning on the date of the enactment of this Act, the 
Secretary, in consultation with the Federal financial institutions 
regulatory agencies, shall issue such regulations as may be necessary 
to carry out this Act, which shall provide for the implementation of 
the mortgage assistance program under this Act upon the expiration of 
such period.
                                 <all>
```