I 

116TH CONGRESS 

1ST SESSION H. R. 2295 

To provide additional funding for the public housing Capital Fund for large 

public housing agencies, for mortgage foreclosure mitigation assistance, 

and for incremental rental assistance vouchers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 12, 2019 

Ms. CLARKE of New York (for herself, Mr. ESPAILLAT, Ms. MENG, and Ms. 

OCASIO-CORTEZ) introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To provide additional funding for the public housing Capital 

Fund for large public housing agencies, for mortgage 

foreclosure mitigation assistance, and for incremental 

rental assistance vouchers, 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. 

4 This Act may be cited as the ‘‘Hardest Hit Housing 

5 Act of 2019’’. 


khammond on DSKBBV9HB2PROD with BILLS
2 

•HR 2295 IH

1 SEC. 2. CAPITAL FUND AMOUNTS FOR LARGE PUBLIC 

2 HOUSING AGENCIES. 

3 (a) AUTHORIZATION OF APPROPRIATIONS.—In addi4 tion to any amounts authorized to be appropriated for for5 mula grants to public housing agencies from the Capital 

6 Fund pursuant to section 9(d)(2) of the United States 

7 Housing Act of 1937 (42 U.S.C. 1437g(d)(2)), there is 

8 authorized to be appropriated $4,000,000,000 for each of 

9 fiscal years 2019 through 2023 for the Public Housing 

10 Capital Fund Program under section 9(d) of the United 

11 States Housing Act of 1937 (42 U.S.C. 1437g(b)). 

12 (b) ELIGIBLE PUBLIC HOUSING AGENCIES.—Any 

13 amounts appropriated pursuant to this section shall be 

14 used by the Secretary of Housing and Urban Development 

15 only for grants to public housing agencies that own or ad16 minister more than 10,000 public housing dwelling units. 

17 (c) ELIGIBLE USES.—Funds from grants made with 

18 amounts appropriated pursuant to this section may be 

19 used only for eligible capital activities under section 

20 9(d)(1) of the United States Housing Act of 1937 (42 

21 U.S.C. 1437g(d)(1)). Section 9(g)(3) of such Act shall not 

22 apply to any such grant funds. 

23 SEC. 3. ASSISTANCE TO NEIGHBORWORKS FOR MORTGAGE 

24 FORECLOSURE MITIGATION ACTIVITIES. 

25 There is authorized to be appropriated $5,000,000, 

26 for each of fiscal years 2019 through 2023 for assistance 


khammond on DSKBBV9HB2PROD with BILLS
3 

•HR 2295 IH

1 to the Neighborhood Reinvestment Corporation for mort2 gage foreclosure mitigation activities, under the following 

3 terms and conditions: 

4 (1) MORTGAGE FORECLOSURE MITIGATION

5 COUNSELING.— 

6 (A) The Neighborhood Reinvestment Cor7 poration (in this section referred to as the 

8 ‘‘NRC’’) may make grants under this para9 graph to counseling intermediaries approved by 

10 the Department of Housing and Urban Devel11 opment (in this section referred to as ‘‘HUD’’) 

12 (with match to be determined by NRC based on 

13 affordability and the economic conditions of an 

14 area; a match also may be waived by NRC 

15 based on the aforementioned conditions) to pro16 vide mortgage foreclosure mitigation assistance 

17 to the 15 States with highest rates of home 

18 mortgage defaults and foreclosures, as of Janu19 ary 1, 2019, to help eliminate the default and 

20 foreclosure of mortgages of owner-occupied sin21 gle-family homes that are at risk of such fore22 closure and located in metropolitan statistical 

23 areas having the greatest such need. Other than 

24 areas with high rates of defaults and fore25 closures, grants may also be provided to apVerDate Sep 11 2014 19:59 Apr 30, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2295.IH H2295

khammond on DSKBBV9HB2PROD with BILLS
4 

•HR 2295 IH

1 proved counseling intermediaries based on a ge2 ographic analysis of the Nation by NRC which 

3 determines where there is a prevalence of mort4 gages that are risky and likely to fail, including 

5 any trends for mortgages that are likely to de6 fault and face foreclosure. A State Housing Fi7 nance Agency may also be eligible where the 

8 State Housing Finance Agency meets all the re9 quirements under this paragraph. A HUD-ap10 proved counseling intermediary shall meet cer11 tain mortgage foreclosure mitigation assistance 

12 counseling requirements, as determined by 

13 NRC, and shall be approved by HUD or NRC 

14 as meeting these requirements. 

15 (B) Mortgage foreclosure mitigation assist16 ance shall only be made available to home17 owners of owner-occupied homes with mort18 gages in default or in danger of default. These 

19 mortgages shall likely be subject to a fore20 closure action and homeowners will be provided 

21 such assistance that shall consist of activities 

22 that are likely to prevent foreclosures and result 

23 in the long-term affordability of the mortgage 

24 retained pursuant to such activity or another 

25 positive outcome for the homeowner. No funds 


khammond on DSKBBV9HB2PROD with BILLS
5 

•HR 2295 IH

1 made available pursuant to this paragraph may 

2 be provided directly to lenders or homeowners 

3 to discharge outstanding mortgage balances or 

4 for any other direct debt reduction payments. 

5 (C) The use of mortgage foreclosure miti6 gation assistance by approved counseling inter7 mediaries and State Housing Finance Agencies 

8 shall involve a reasonable analysis of the bor9 rower’s financial situation, an evaluation of the 

10 current value of the property that is subject to 

11 the mortgage, counseling regarding the assump12 tion of the mortgage by another non-Federal 

13 party, counseling regarding the possible pur14 chase of the mortgage by a non-Federal third 

15 party, counseling and advice of all likely re16 structuring and refinancing strategies or the 

17 approval of a work-out strategy by all interested 

18 parties. 

19 (D) NRC may provide up to 15 percent of 

20 the total funds made available pursuant to this 

21 paragraph to its own charter members with ex22 pertise in foreclosure prevention counseling, 

23 subject to a certification by NRC that the pro24 cedures for selection do not consist of any pro25 cedures or activities that could be construed as 


khammond on DSKBBV9HB2PROD with BILLS
6 

•HR 2295 IH

1 a conflict of interest or have the appearance of 

2 impropriety. 

3 (E) HUD-approved counseling entities and 

4 State Housing Finance Agencies receiving 

5 funds made available pursuant to this para6 graph shall have demonstrated experience in 

7 successfully working with financial institutions 

8 as well as borrowers facing default, delinquency, 

9 and foreclosure as well as documented coun10 seling capacity, outreach capacity, past success11 ful performance and positive outcomes with doc12 umented counseling plans (including post-mort13 gage foreclosure mitigation counseling), loan 

14 workout agreements, and loan modification 

15 agreements. NRC may use other criteria to 

16 demonstrate capacity in underserved areas. 

17 (F) Of the total amount made available 

18 pursuant to this paragraph, up to $250,000 

19 may be made available to build the mortgage 

20 foreclosure and default mitigation counseling 

21 capacity of counseling intermediaries through 

22 NRC training courses with HUD-approved 

23 counseling intermediaries and their partners, 

24 except that private financial institutions that 


khammond on DSKBBV9HB2PROD with BILLS
7 

•HR 2295 IH

1 participate in NRC training shall pay market 

2 rates for such training. 

3 (G) Of the total amount made available 

4 pursuant to this paragraph, up to 5 percent 

5 may be used for associated administrative ex6 penses for NRC to carry out activities provided 

7 under this paragraph. 

8 (H) Mortgage foreclosure mitigation assist9 ance grants may include a budget for outreach 

10 and advertising, and training, as determined by 

11 NRC. 

12 (I) NRC shall report bi-annually to the 

13 House and Senate Committees on Appropria14 tions as well as the Senate Committee on Bank15 ing, Housing, and Urban Affairs and the House 

16 Committee on Financial Services on its efforts 

17 to mitigate mortgage default. 

18 (2) LEGAL ASSISTANCE.— 

19 (A) The Neighborhood Reinvestment Cor20 poration may make grants to counseling inter21 mediaries approved by HUD or the NRC to 

22 hire attorneys to assist homeowners who have 

23 legal issues directly related to the homeowner’s 

24 foreclosure, delinquency, or short sale. 


khammond on DSKBBV9HB2PROD with BILLS
8 

•HR 2295 IH

1 (B) Such attorneys shall be capable of as2 sisting homeowners of owner-occupied homes 

3 with mortgages in default, in danger of default, 

4 or subject to or at risk of foreclosure and who 

5 have legal issues that cannot be handled by 

6 counselors already employed by such inter7 mediaries. 

8 (C) Grants under this paragraph may only 

9 be made to counseling intermediaries and legal 

10 organizations that (i) provide legal assistance in 

11 the 15 States with the highest rates of home 

12 mortgage defaults and foreclosures, as of Janu13 ary 1, 2019, and (ii) have the capacity to begin 

14 using the financial assistance within 90 days 

15 after receipt of the assistance. 

16 (D) No funds made available pursuant to 

17 this paragraph shall be used to provide, obtain, 

18 or arrange on behalf of a homeowner, legal rep19 resentation involving or for the purposes of civil 

20 litigation. 

21 SEC. 4. INCREMENTAL HOUSING CHOICE VOUCHER ASSIST22 ANCE. 

23 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

24 authorized to be appropriated for each of fiscal years 2019 

25 through 2023 such sums as may be necessary to provide 


khammond on DSKBBV9HB2PROD with BILLS
9 

•HR 2295 IH

1 in each such fiscal year 20,000 incremental vouchers for 

2 rental assistance under section 8(o) of the United States 

3 Housing Act of 1937 (42 U.S.C. 1437f(o)). 

4 (b) ELIGIBLE PUBLIC HOUSING AGENCIES.—Any 

5 amounts appropriated pursuant to this section shall be 

6 used by the Secretary of Housing and Urban Development 

7 only to provide additional amounts for rental assistance 

8 vouchers for public housing agencies that administer 

9 10,000 or more vouchers for rental assistance under such 

10 section 8(o). 

Æ 


khammond on DSKBBV9HB2PROD with BILLS