I 

113TH CONGRESS 

2D SESSION H. R. 5601 

To provide amounts from the recent settlement between the Department 

of Justice and Bank of America for assistance under the Neighborhood 

Stabilization Program. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 18, 2014 

Mr. GRAYSON introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To provide amounts from the recent settlement between the 

Department of Justice and Bank of America for assistance under the Neighborhood Stabilization Program. 

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 ‘‘Foreclosure Restitu5 tion Act of 2014’’. 

6 SEC. 2. USE OF SETTLEMENT AMOUNTS. 

7 (a) NEIGHBORHOOD STABILIZATION ASSISTANCE.— 

8 From any amounts received by the Treasury as a civil 

9 monetary penalty pursuant to the settlement agreement 


SSpencer on DSK4SPTVN1PROD with BILLS
2 

•HR 5601 IH

1 specified in subsection (e), $5,000,000,000 is hereby ap2 propriated, to remain available until expended, for use 

3 only for providing assistance under title III of division B 

4 of the Housing and Economic Recovery Act of 2008 (42 

5 U.S.C. 5301 note) to units of general local government 

6 (as such term is defined in section 102 of the Housing 

7 and Community Development Act of 1974 (42 U.S.C. 

8 5302)), subject to subsections (b), (c), and (d). 

9 (b) ALLOCATION AND DISTRIBUTION.—The amounts 

10 appropriated by subsection (a) shall be— 

11 (1) allocated to units of general local govern12 ment based on a funding formula established by the 

13 Secretary of Housing and Urban Development that 

14 is based upon the number and percentage of home 

15 foreclosures in each such unit; and 

16 (2) distributed according to such funding for17 mula not later than 30 days after the establishment 

18 of such formula. 

19 (c) INAPPLICABLE PROVISIONS OF NSP.—The fol20 lowing provisions of title III of division B of the Housing 

21 and Economic Recovery Act of 2008 shall not apply to 

22 the assistance provided with amounts appropriated by sub23 section (a): 


SSpencer on DSK4SPTVN1PROD with BILLS
3 

•HR 5601 IH

1 (1) Subsection (b) of section 2301 (42 U.S.C. 

2 5301 note; relating to allocation of appropriated 

3 amounts). 

4 (2) Subparagraphs (B) and (C) of section 

5 2301(c)(2) (42 U.S.C. 5301 note; relating to pri6 ority). 

7 (3) Paragraph (3) of section 2301(c) (42 

8 U.S.C. 5301 note; relating to exception for certain 

9 States). 

10 (4) Section 2302 (42 U.S.C. 5301 note; relat11 ing to nationwide distribution of resources). 

12 (d) ELIGIBLE USES.—Notwithstanding subsection 

13 (a) and paragraphs (1) and (4) of subsection (c) of section 

14 2301 of the Housing and Economic Recovery Act of 2008 

15 (42 U.S.C. 5301 note), amounts appropriated by sub16 section (a) of this section may be used by units of general 

17 local government to assist in providing affordable housing 

18 or to mitigate indirect costs relating to foreclosures on res19 idential mortgages. 

20 (e) SETTLEMENT AGREEMENT.—The settlement 

21 agreement specified in this subsection is the settlement 

22 agreement entered into August 2014 between the United 

23 States acting through the United States Department of 

24 Justice, along with the States of California, Delaware, Illi25 nois, Maryland, and New York, and the Commonwealth 


SSpencer on DSK4SPTVN1PROD with BILLS
4 

•HR 5601 IH

1 of Kentucky, acting through their respective Attorneys 

2 General, and Bank of America Corporation, Bank of 

3 America, N.A., and Banc of America Mortgage Securities, 

4 as well as their current and former subsidiaries and affili5 ates. 

Æ 


SSpencer on DSK4SPTVN1PROD with BILLS