I 

110TH CONGRESS 

2D SESSION H. R. 5818 

To authorize the Secretary of Housing and Urban Development to make 

loans to States to acquire foreclosed housing and to make grants to 

States for related costs. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 16, 2008 

Ms. WATERS (for herself, Mr. FRANK of Massachusetts, Mrs. MALONEY of 

New York, Mr. WATT, Mr. MAHONEY of Florida, Ms. VELA ́ZQUEZ, Mr. 

AL GREEN of Texas, Mr. GUTIERREZ, Mr. LYNCH, Mr. CARSON, Mr. 

ELLISON, and Mr. CLAY) introduced the following bill; which was referred 

to the Committee on Financial Services 

A BILL 

To authorize the Secretary of Housing and Urban Development to make loans to States to acquire foreclosed housing and to make grants to States for related costs. 

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 ‘‘Neighborhood Sta5 bilization Act of 2008’’. 

6 SEC. 2. CONGRESSIONAL PURPOSES. 

7 The purposes of this Act are— 


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1 (1) to establish a loan and grant program ad2 ministered by the Department of Housing and 

3 Urban Development to help States purchase and re4 habilitate owner-vacated, foreclosed homes with the 

5 goal of stabilizing and occupying them as soon as 

6 possible, either through resale or rental to qualified 

7 families; 

8 (2) to distribute these loans and grants to areas 

9 with the highest foreclosure levels; 

10 (3) to provide incentives for States to use the 

11 funds to stabilize as many properties as possible; 

12 and 

13 (4) to provide housing for low- and moderate14 income families, especially those that have lost 

15 homes to foreclosure. 

16 SEC. 3. LOANS AND GRANTS TO STATES. 

17 The Secretary of Housing and Urban Development 

18 shall, subject to the availability of amounts under section 

19 12, make grants under section 5(a) to qualified States and 

20 make loans under section 6 in accordance with the ap21 proved plans of qualified States, for use to carry out eligi22 ble housing stimulus activities under section 7. 

23 SEC. 4. QUALIFIED PLANS. 

24 (a) IN GENERAL.—The Secretary may make a grant 

25 under this Act only to a State, and may allocate a loan 


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1 authority amount under this Act only for a State, that 

2 has submitted to the Secretary a plan that meets the re3 quirements under this section and has been approved 

4 under this section. 

5 (b) CONTENTS.—A plan under this section for a 

6 State shall— 

7 (1) designate a State housing finance agency, 

8 or other agency, department, or entity of the State, 

9 or any other designee, as the State administrator to 

10 act on behalf of the State for purposes of this Act; 

11 (2) describe the housing stimulus activities 

12 under section 7 to be carried out with assistance 

13 under this Act for the State by the entities identified 

14 pursuant to paragraph (1) of this subsection; 

15 (3) describe how such activities will help restore 

16 or improve the viability of neighborhoods by pro17 viding for purchase or occupancy of qualified fore18 closed properties as soon as practicable and in a 

19 manner that will facilitate repayment of the loans 

20 provided under this Act for carrying out such activi21 ties; 

22 (4) set forth the procedures that the State will 

23 use to allocate grant and loan amounts and monitor 

24 for compliance with the requirements of section 7; 


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1 (5) provide that grant and loan amounts pro2 vided under this Act for the State will be used only 

3 for eligible housing stimulus activities under section 

4 7 that are eligible under such section for assistance 

5 with grant or loan amounts, as applicable; 

6 (6) provide preference for activities that serve 

7 the lowest income families, who otherwise meet the 

8 income requirements under section 7, for the longest 

9 period and homeowners, who otherwise meet such in10 come requirements, whose mortgages have been fore11 closed; 

12 (7) describe any other preferences the State 

13 may establish, such as housing for school teachers, 

14 veterans, workforce, or homeless persons; 

15 (8) provide for obligation and outlay of grant 

16 amounts, and for loan commitments and disburse17 ment, in accordance with the requirements under 

18 section 9; and 

19 (9) in the case of any grant or loan amounts, 

20 that will be invested with the possibility of a return 

21 on investment, provide for use of any return on such 

22 investment only for one or more eligible housing 

23 stimulus activities under section 7. 

24 (c) SUBMISSION.— 


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1 (1) IN GENERAL.—The Secretary shall provide 

2 for States to submit plans under this section to the 

3 Secretary and shall establish requirements for the 

4 contents and form of such plans. Except in the case 

5 of plan resubmitted pursuant to subsection (d)(3), 

6 the Secretary may not accept or consider a plan un7 less the plan is submitted to the Secretary before the 

8 expiration of the 30-day period beginning upon the 

9 date of the enactment of this Act. 

10 (2) PUBLIC APPROVAL.—A State may not sub11 mit a plan to the Secretary unless the plan is ap12 proved by the governor of the State after a public 

13 hearing on the plan held pursuant to reasonable 

14 public notice. 

15 (d) REVIEW AND APPROVAL.— 

16 (1) TIMING.—The Secretary shall review, and 

17 approve or disapprove, each plan submitted or resub18 mitted pursuant to paragraph (3) in compliance with 

19 the requirements established under this section be20 fore the expiration of the 15-day period beginning 

21 upon the submission of the plan. If the Secretary 

22 does not approve or disapprove a plan that is sub23 mitted or resubmitted in accordance with the re24 quirements under this section before the expiration 

25 of such 15-day period and notify the State of such 


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1 approval or disapproval, the plan shall be considered 

2 approved for purposes of this section. 

3 (2) STANDARD FOR DISAPPROVAL.—The Sec4 retary may disapprove a plan only if the plan fails 

5 to comply with the requirements of this Act. 

6 (3) RESUBMISSION.—If the Secretary dis7 approves the plan of a State, the Secretary shall 

8 submit to the State the reasons for the disapproval, 

9 and the State may, during the 15-day period that 

10 begins upon notification of such disapproval and the 

11 reasons for such disapproval, submit to the Sec12 retary a revised plan for review and approval in ac13 cordance with this subsection. 

14 SEC. 5. ALLOCATION OF AMOUNTS. 

15 (a) GRANTS.—From the total amount made available 

16 under section 12(a) for grants under this Act, the Sec17 retary shall make a grant to each qualified State in the 

18 grant amount determined under subsection (c) of this sec19 tion for the qualified State. 

20 (b) LOANS.—From the aggregate amount of author21 ity for the outstanding principal balance of loans made 

22 under this Act pursuant to section 12(b)(1), the Secretary 

23 shall allocate such authority for loans under this Act for 

24 each qualified State in the loan authority amount deterVerDate Aug 31 2005 00:48 Apr 17, 2008 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5818.IH H5818

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1 mined under subsection (c) of this section for the qualified 

2 State. 

3 (c) GRANT AMOUNTS AND LOAN AUTHORITY

4 AMOUNTS.—The grant amount or loan authority amount 

5 for a qualified State shall be the foreclosure grant share 

6 or foreclosure loan share, respectively, for the State deter7 mined under subsection (d), as such share is adjusted in 

8 accordance with an index established or selected by the 

9 Secretary to account for differences between qualified 

10 States in the median price of single family housing in such 

11 States. 

12 (d) FORECLOSURE SHARES.—For purposes of this 

13 section: 

14 (1) GRANT SHARE.—The foreclosure grant 

15 share for a qualified State shall be the amount that 

16 bears the same ratio to the total amount made avail17 able under section 12(a) as the number of fore18 closures on mortgages for single family housing oc19 curring in such State during the most recently com20 pleted four calendar quarters for which such infor21 mation is available, as determined by the Secretary, 

22 bears to the aggregate number of such foreclosures 

23 occurring in all qualified States during such cal24 endar quarters. 


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1 (2) LOAN SHARE.—The foreclosure loan share 

2 for a qualified State shall be the amount that bears 

3 the same ratio to the aggregate amount of the prin4 cipal balance of loans that may be outstanding at 

5 any time under this Act pursuant to section 12(b)(1) 

6 as the number of foreclosures on mortgages for sin7 gle family housing occurring in such State during 

8 the most recently completed four calendar quarters 

9 for which such information is available, as deter10 mined by the Secretary, bears to the aggregate num11 ber of such foreclosures occurring in all qualified 

12 States during such calendar quarters. 

13 (e) DISTRIBUTION OF FULL AMOUNT.—The Sec14 retary shall establish the index referred to in subsection 

15 (c) and the grant and loan authority amounts for the 

16 qualified States in a manner that provides that— 

17 (1) the aggregate of the grant amounts for all 

18 qualified States is equal to the total amount made 

19 available under section 12(a); and 

20 (2) the aggregate of the loan authority amounts 

21 for all qualified States is equal to the aggregate 

22 amount of authority for the outstanding principal 

23 balance of all loans made under this Act pursuant 

24 to section 12(b)(1). 


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1 (f) REQUIREMENT TO ALLOCATE TO QUALIFIED

2 METROPOLITAN CITIES.—Of any grant amounts and loan 

3 authority amounts allocated pursuant to this section for 

4 a State, such State shall allocate for each qualified metro5 politan city located in such State a portion of such grant 

6 amounts and such loan authority amounts that bears the 

7 same ratio to such grant amounts and loan authority 

8 amounts, respectively, allocated for the State as the num9 ber of foreclosures on mortgages for single family housing 

10 occurring in such qualified metropolitan city during the 

11 most recently completed four calendar quarters for which 

12 such information is available, as determined by the Sec13 retary, bears to the aggregate number of such foreclosures 

14 occurring in the State during such calendar quarters. A 

15 State may adjust such allocation to account for differences 

16 between median single family housing prices in the State 

17 and in qualified metropolitan cities in the State. 

18 SEC. 6. LOANS. 

19 (a) REQUIREMENT OF LOAN AUTHORITY AMOUNT.— 

20 The Secretary may make a loan under this Act for use 

21 in a qualified State only to the extent and in such amounts 

22 that loan authority amounts for such State are available. 

23 (b) REVOLVING AVAILABILITY OF LOAN AUTHORITY

24 AMOUNT.—The loan authority amount allocated for each 

25 qualified State shall— 


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1 (1) upon the Secretary entering into a binding 

2 commitment to make a loan under this Act for use 

3 in such State, be decreased by the amount of the 

4 principal obligation of such loan; and 

5 (2) upon the repayment to the Secretary by any 

6 borrower of any principal amounts borrowed under 

7 a loan this Act for use in such State, be increased 

8 by the amount of principal repaid. 

9 (c) ASSISTED ENTITIES.—The loan authority amount 

10 of a qualified State may be used under section 7(a) to 

11 provide a loan for the purchase or finance the purchase 

12 of qualified foreclosed housing by— 

13 (1) the State; 

14 (2) a unit of local government or a local govern15 mental entity; or 

16 (3) a nonprofit organization. 

17 (d) LOAN TERMS.—Each loan provided under this 

18 Act from the loan authority amount of a qualified State 

19 shall— 

20 (1) bear no interest; 

21 (2) have a term to maturity of— 

22 (A) 2 years, in the case of any loan made 

23 to purchase or finance the purchase of qualified 

24 foreclosed housing for use under section 7(a)(1) 

25 for homeownership; and 


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1 (B) 5 years, in the case of any loan made 

2 to purchase or finance the purchase of qualified 

3 foreclosed housing for use under section 7(a)(2) 

4 for rental; 

5 (3) not provide for amortization of the principal 

6 obligation of the loan during such term; 

7 (4) require payment of the original principal ob8 ligation under the loan only upon the expiration of 

9 the term of the loan; and 

10 (5) have such other terms and conditions as the 

11 Secretary may provide. 

12 (e) PROCEDURE.—Upon a request, by a State admin13 istrator, for a loan under this Act from the loan authority 

14 amount of the qualified State for which such adminis15 trator acts, the Secretary shall enter into a loan agreement 

16 as the Secretary determines appropriate with the borrower 

17 under the loan and shall disburse the loan amount in ac18 cordance with such terms, subject only to the absence of 

19 sufficient loan authority amount for the State. 

20 (f) ELIGIBILITY FOR REPEAT LENDING.—A loan 

21 under this Act may be made to an entity that has pre22 viously borrowed amounts under a loan under this Act 

23 only if such entity has repaid 95 percent or more of the 

24 amounts due, including principal and interest, under all 

25 previous such loans. 


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1 (g) SUNSET.—The Secretary may not enter into any 

2 commitment to make a loan under this Act, or make any 

3 such loan, after the expiration of the 24-month period be4 ginning on the date of the enactment of this Act. 

5 SEC. 7. ELIGIBLE HOUSING STIMULUS ACTIVITIES. 

6 (a) LOAN AMOUNTS.—Amounts provided under a 

7 loan under this Act for a qualified State shall be used, 

8 in accordance with the approved plan of such State, only 

9 for the following activities: 

10 (1) HOMEOWNERSHIP HOUSING PROVISION.— 

11 To purchase or finance the purchase of qualified 

12 foreclosed housing for resale as housing for home13 ownership to families having incomes that do not ex14 ceed 140 percent of the median income for the area 

15 in which the housing is located. 

16 (2) RENTAL HOUSING PROVISION.—To pur17 chase or finance the purchase of qualified foreclosed 

18 housing for use only as rental housing, subject to 

19 the following requirements: 

20 (A) QUALIFIED TENANTS.—All dwelling 

21 units in the housing purchased or financed 

22 using any loan amounts shall be available for 

23 rental only by families whose incomes do not 

24 exceed 100 percent of the median income for 

25 the area in which the housing is located. 


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1 (B) RENTS.—Rents for each dwelling unit 

2 in the housing purchase or financed using any 

3 loan amounts shall be established at amounts 

4 that do not exceed market rents for comparable 

5 dwelling units located in the area in which the 

6 housing is located and in accordance with such 

7 requirements as the Secretary shall establish to 

8 ensure that rents are established in a fair, ob9 jective, and arms-length manner. 

10 (3) HOUSING REHABILITATION.—To rehabili11 tate qualified foreclosed housing acquired with as12 sistance provided pursuant to this subsection, to the 

13 extent necessary to comply with applicable laws, 

14 codes, and other requirements relating to housing 

15 safety, quality, and habitability, for the purpose of 

16 reselling the housing, to the extent possible, during 

17 the 3-month period that begins upon completion of 

18 rehabilitation and at a price that is as close as pos19 sible to the acquisition price of the housing. 

20 (b) GRANT AMOUNTS.—Grant amounts provided 

21 under this Act to a qualified State shall be used, in accord22 ance with the approved plan of such State, only for the 

23 following activities: 

24 (1) OPERATING AND HOLDING COSTS.—For 

25 costs of holding and operating qualified foreclosed 


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1 housing acquired pursuant to subsection (a), includ2 ing costs of management, taxes, handling, insurance, 

3 and other related costs. 

4 (2) COSTS RELATING TO PROPERTY ACQUISI5 TION.—For costs relating to acquisition of qualified 

6 foreclosed housing pursuant to subsection (a), in7 cluding reasonable closing costs. 

8 (3) ADMINISTRATIVE COSTS.—For administra9 tive and planning costs of the State in administering 

10 loan authority amounts and grant amounts under 

11 this Act, except that the amount of grant amounts 

12 provided under this Act to a State that may be used 

13 under this paragraph shall not exceed the amount 

14 equal to 4 percent of the sum of the grants amounts 

15 provided to the State pursuant to section 5(a) and 

16 the loan authority amount allocated to the State 

17 pursuant to section 5(b). 

18 (c) PROHIBITED USES.—The Secretary shall, by reg19 ulation, set forth prohibited uses of grant or loan amounts 

20 under this Act, which shall include use for— 

21 (1) political activities; 

22 (2) advocacy; 

23 (3) lobbying, whether directly or through other 

24 parties; 

25 (4) counseling services; 


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1 (5) travel expenses; and 

2 (6) preparing or providing advice on tax re3 turns. 

4 (d) INCOME TARGETING REQUIREMENT.— 

5 (1) VERY LOW-INCOME FAMILIES.—Not less 

6 than 50 percent of the total grant amounts a State 

7 or qualified metropolitan city makes available under 

8 this Act shall be used for activities under subsection 

9 (b) in connection with providing housing for families 

10 whose incomes do not exceed 50 percent of the me11 dian income for the area in which the housing is lo12 cated. 

13 (2) EXTREMELY LOW-INCOME FAMILIES.—Not 

14 less than 50 percent of the total grant amounts a 

15 State or qualified metropolitan city makes available 

16 under paragraph (1) shall be used for activities 

17 under subsection (b) in connection with providing 

18 housing for families whose incomes do not exceed 30 

19 percent of the median income for the area in which 

20 the housing is located. 

21 (3) WAIVER.—The Secretary may waive the re22 quirement under paragraph (2) with respect to a 

23 State or qualified metropolitan city if such State or 

24 city demonstrates to the satisfaction of the Secretary 


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1 that it has attempted to, but can not comply with, 

2 such requirement. 

3 (e) SECURITY.—The Secretary shall retain a lien on 

4 any qualified foreclosed housing purchased or financed 

5 with a loan under this section in the amount of the prin6 cipal obligation under the loan and interest due under the 

7 loan. 

8 (f) QUALIFIED HOMEOWNERS.—This Act may not be 

9 construed to prevent the resale of qualified foreclosed 

10 housing to a prior owner or occupant of such housing who 

11 meets the income requirements of this Act. 

12 (g) VOUCHER NONDISCRIMINATION.—A recipient of 

13 amounts from a loan or grant under this Act may not 

14 refuse to lease a dwelling unit in housing assisted with 

15 any such loan or grant amounts to a holder of a voucher 

16 or certificate of eligibility under section 8 of the United 

17 States Housing Act of 1937 (42 U.S.C. 1437f) because 

18 of the status of the prospective tenant as such a holder. 

19 (h) EFFECT OF FORECLOSURE ON PREEXISTING

20 LEASE.— 

21 (1) IN GENERAL.—In the case of any fore22 closure on any dwelling or residential real property 

23 acquired with any amounts made available under 

24 this Act, any successor in interest in such property 


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1 pursuant to the foreclosure shall assume such inter2 est subject to— 

3 (A) the provision, by the successor in inter4 est, of a notice to vacate to any bona fide ten5 ant at least 90 days before the effective date of 

6 the notice to vacate; and 

7 (B) the rights of any bona fide tenant, as 

8 of the date of such notice of foreclosure— 

9 (i) under any bona fide lease entered 

10 into before the notice of foreclosure to oc11 cupy the premises until the end of the re12 maining term of the lease or the end of the 

13 6-month period beginning on the date of 

14 the notice of foreclosure, whichever occurs 

15 first, subject to the receipt by the tenant 

16 of the 90-day notice under subparagraph 

17 (A); or 

18 (ii) without a lease or with a lease ter19 minable at will under State law, subject to 

20 the receipt by the tenant of the 90-day no21 tice under subparagraph (A), except that 

22 nothing under this subparagraph shall af23 fect the requirements for termination of 

24 any federally subsidized tenancy. 


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1 (2) BONA FIDE LEASE OR TENANCY.—For pur2 poses of this section, a lease or tenancy shall be con3 sidered bona fide only if— 

4 (A) the mortgagor under the contract is 

5 not the tenant; 

6 (B) the lease or tenancy was the result of 

7 an arms-length transaction; or 

8 (C) the lease or tenancy requires the re9 ceipt of rent that is not substantially less than 

10 fair market rent for the property. 

11 SEC. 8. SHARED APPRECIATION AGREEMENT. 

12 Notwithstanding any other provision of this Act, no 

13 amounts from a loan or grant under this Act may be used 

14 under section 7 for any qualified foreclosed housing unless 

15 such binding agreements are entered into, in accordance 

16 with such requirements as the Secretary shall establish, 

17 that ensure that the Federal Government shall, upon any 

18 sale or disposition of the qualified foreclosed housing by 

19 the owner who acquires the housing pursuant to assistance 

20 under this Act, receive an amount equal to 20 percent of 

21 the difference between the net proceeds from such sale or 

22 disposition and the cost of such acquisition of the housing 

23 pursuant to assistance under this Act, after deductions for 

24 expenditures paid or incurred after the date of such acqui25 sition that are properly chargeable to capital account 


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1 (within the meaning of section 1016 of the Internal Rev2 enue Code of 1986) with respect to such housing. 

3 SEC. 9. SPENDING REQUIREMENTS. 

4 (a) IN GENERAL.—Each qualified State that receives 

5 a grant under this Act or is allocated loan authority 

6 amounts under this Act pursuant to section 5(b) shall— 

7 (1) commence obligation of such grant amounts 

8 and commitment of such loan authority amounts not 

9 later than the expiration of the 45-day period that 

10 begins upon approval of the approved plan of State; 

11 (2) obligate all such grant amounts and enter 

12 into commitments for all such loan authority 

13 amounts not later than the expiration of the 180-day 

14 period beginning upon such approval; and 

15 (3) except as provided in subsection (b), outlay 

16 all such grant amounts and disburse all such loan 

17 authority amounts not later than the 12-month pe18 riod that begins upon such approval. 

19 This subsection shall not apply to loan authority amounts 

20 of a qualified State attributable, pursuant to section 

21 6(b)(2), to repayment of principal amounts of loans under 

22 this Act. 

23 (b) EXCEPTION TO SPENDING REQUIREMENT.—If a 

24 State in good faith makes a request, in the plan submitted 

25 to the Secretary pursuant to section 4 or otherwise after 


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1 approval of such plan, for extension of the period referred 

2 to in paragraph (1), (2), or (3) of subsection (a) of this 

3 section, the Secretary may extend the period for not more 

4 than 3 months. 

5 SEC. 10. ACCOUNTABILITY. 

6 (a) REPORTING.—Each qualified State that receives 

7 a grant or allocation of loan authority amount under this 

8 Act shall submit a report to the Secretary, not later than 

9 the expiration of the 12-month period beginning upon the 

10 approval of the qualified plan by the Secretary, regarding 

11 use of such amounts which shall contain such information 

12 as the Secretary shall require. 

13 (b) MISUSE OF AMOUNTS.—If the Secretary deter14 mines that any amounts from a grant or loan under this 

15 Act for a qualified State has been used in a manner that 

16 is materially in violation of this Act, any regulations issued 

17 under this Act, or any requirements or conditions under 

18 which such amounts were provided, the Secretary shall re19 quire the State to reimburse the Treasury of the United 

20 States in the amount of any such misused funds. 

21 SEC. 11. DEFINITIONS. 

22 For purposes of this Act, the following definitions 

23 shall apply: 


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1 (1) APPROVED PLAN.—The term ‘‘approved 

2 plan’’ means a plan of a State that has been ap3 proved pursuant to section 4. 

4 (2) COVERED MULTIFAMILY HOUSING.—The 

5 term ‘‘covered multifamily housing’’ means a resi6 dential structure that— 

7 (A) consists of 20 or fewer dwelling units; 

8 and 

9 (B) is predominantly vacant. 

10 (3) LOAN AUTHORITY AMOUNT.—The term 

11 ‘‘loan authority amount’’ means, with respect to a 

12 qualified State, the amount of loan authority avail13 able pursuant to section 12(b)(1) that is allocated 

14 for the State pursuant to section 5(b), as such 

15 amount may be increased or decreased pursuant to 

16 section 6(b). 

17 (4) NONPROFIT ORGANIZATION.—The term 

18 ‘‘nonprofit organization’’ has the meaning given 

19 such term in section 104 of the Cranston-Gonzalez 

20 National Affordable Housing Act (42 U.S.C. 

21 12704). 

22 (5) QUALIFIED FORECLOSED HOUSING.—The 

23 term ‘‘qualified foreclosed housing’’ means housing 

24 that— 


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1 (A)(i) is single family housing that is not 

2 occupied or vacated by an owner, pursuant to 

3 foreclosure or assignment of the mortgage on 

4 the housing or forfeiture of the housing; or 

5 (ii) is covered multifamily housing; 

6 (B) is owned by a lender, mortgage com7 pany, investor, financial institution, or other 

8 such entity, or any government entity, pursuant 

9 to foreclosure or assignment of the mortgage on 

10 the housing or forfeiture of the housing; and 

11 (C) has a purchase price— 

12 (i) in the case of single family hous13 ing, that does not exceed 90 percent of the 

14 average purchase price for single family 

15 housing in the area in which the housing 

16 is located, as determined by the Secretary. 

17 (ii) in the case of covered multifamily 

18 housing, that does not exceed the dollar 

19 amount limitation, for housing of the ap20 plicable size located in the area in which 

21 the housing is located, on the amount of a 

22 principal obligation of a mortgage eligible 

23 for insurance under section 207 of the Na24 tional Housing Act (12 U.S.C. 1713), as in 

25 effect on the date of the enactment of this 


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1 Act pursuant to such section 207(c)(3)(A) 

2 and section 206A of such Act (12 U.S.C. 

3 1712a). 

4 (6) QUALIFIED METROPOLITAN CITY.—The 

5 term ‘‘qualified metropolitan city’’ means an incor6 porated place that is among the 25 most populous 

7 incorporated places in the United States, as deter8 mined according to data from the most recent decen9 nial census that is published before the date of the 

10 enactment of this Act. 

11 (7) QUALIFIED STATE.—The term ‘‘qualified 

12 State’’ means a State for which there is an approved 

13 plan. 

14 (8) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Housing and Urban Development. 

16 (9) SINGLE FAMILY HOUSING.—The term ‘‘sin17 gle family housing’’ means a residential structure 

18 consisting of from one to four dwelling units. 

19 (10) STATE.—The term ‘‘State’’ means any 

20 State of the United States, the District of Columbia, 

21 the Commonwealth of Puerto Rico, the Common22 wealth of the Northern Mariana Islands, Guam, the 

23 Virgin Islands, American Samoa, and other territory 

24 or possession of the United States. 


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1 (11) STATE ADMINISTRATOR.—The term ‘‘State 

2 administrator’’ means the entity of a qualified State 

3 that is designated, pursuant to section 4(b)(1), in 

4 the approved plan of the State to act for the State 

5 for purposes of this Act. 

6 SEC. 12. FUNDING. 

7 (a) GRANTS.—There is authorized to be appropriated 

8 to the Secretary of the Treasury $7,500,000,000 for 

9 grants under this Act. 

10 (b) DIRECT LOANS.— 

11 (1) LOAN COMMITMENT AUTHORITY LIMITA12 TION.—Subject only to the availability of sufficient 

13 amounts for the costs (as such term is defined in 

14 section 502 of the Federal Credit Reform Act of 

15 1990 (2 U.S.C. 661a)) of such loans and the ab16 sence of qualified requests for loans, the Secretary 

17 shall enter into commitments to make loans under 

18 this Act, and shall make such loans, in an amount 

19 such that the aggregate outstanding principal bal20 ance of such loans does not at any time exceed 

21 $7,500,000,000. 

22 (2) AUTHORIZATION OF APPROPRIATIONS FOR

23 COSTS.—There is authorized to be appropriated such 

24 sums as may be necessary for costs (as such term 

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1 form Act of 1990 (2 U.S.C. 661a)) of loans under 

2 this Act. 

3 SEC. 13. REGULATIONS AND IMPLEMENTATION. 

4 (a) REGULATIONS.—The Secretary shall issue any 

5 regulations necessary to carry out this Act. 

6 (b) IMPLEMENTATION.—Pending the effectiveness of 

7 regulations issued pursuant to subsection (a), the Sec8 retary shall take such action as may be necessary to imple9 ment this Act by notice, guidance, and interim rules. 

Æ 


smartinez on PROD1PC64 with BILLS