II 

111TH CONGRESS 

2D SESSION S. 2969 

To provide additional emergency mortgage assistance to struggling 

homeowners, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 28, 2010 

Mr. CASEY introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide additional emergency mortgage assistance to 

struggling homeowners, 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 ‘‘Homeowners’ Relief 

5 and Neighborhood Stabilization Act of 2010’’. 

6 SEC. 2. EMERGENCY MORTGAGE RELIEF. 

7 (a) USE OF TARP FUNDS.—Using the authority 

8 available under sections 101(a) and 115(a) of division A 

9 of the Emergency Economic Stabilization Act of 2008 (12 

10 U.S.C. 5211(a), 5225(a)), the Secretary of the Treasury 


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1 shall transfer to the Secretary of Housing and Urban De2 velopment $3,000,000,000, and the Secretary of Housing 

3 and Urban Development shall credit such amount to the 

4 Emergency Homeowners’ Relief Fund, which such Sec5 retary shall establish pursuant to section 107 of the Emer6 gency Housing Act of 1975 (12 U.S.C. 2706), as such 

7 Act is amended by this section, for use for emergency 

8 mortgage assistance in accordance with title I of such Act. 

9 (b) REAUTHORIZATION OF EMERGENCY MORTGAGE

10 RELIEF PROGRAM.—Title I of the Emergency Housing 

11 Act of 1975 is amended— 

12 (1) in section 103 (12 U.S.C. 2702)— 

13 (A) in paragraph (2)— 

14 (i) by striking ‘‘have indicated’’ and 

15 all that follows through ‘‘regulation of the 

16 holder’’ and inserting ‘‘have certified’’; 

17 (ii) by striking ‘‘(such as the volume 

18 of delinquent loans in its portfolio)’’; and 

19 (iii) by striking ‘‘, except that such 

20 statement’’ and all that follows through 

21 ‘‘purposes of this title’’; and 

22 (B) in paragraph (4), by inserting ‘‘or 

23 medical conditions’’ after ‘‘adverse economic 

24 conditions’’; 

25 (2) in section 104 (12 U.S.C. 2703)— 


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1 (A) in subsection (b), by striking ‘‘, but 

2 such assistance’’ and all that follows through 

3 the period at the end and inserting the fol4 lowing: ‘‘. The amount of assistance provided to 

5 a homeowner under this title shall be an 

6 amount that the Secretary determines is rea7 sonably necessary to supplement such amount 

8 as the homeowner is capable of contributing to9 ward such mortgage payment, except that the 

10 aggregate amount of such assistance provided 

11 for any homeowner shall not exceed $50,000.’’; 

12 (B) in subsection (d), by striking ‘‘interest 

13 on a loan or advance’’and all that follows 

14 through the end of the subsection and inserting 

15 the following: ‘‘(1) the rate of interest on any 

16 loan or advance of credit insured under this 

17 title shall be fixed for the life of the loan or ad18 vance of credit and shall not exceed the rate of 

19 interest that is generally charged for mortgages 

20 on single-family housing insured by the Sec21 retary of Housing and Urban Development 

22 under title II of the National Housing Act at 

23 the time such loan or advance of credit is made, 

24 and (2) no interest shall be charged on interest 

25 which is deferred on a loan or advance of credit 


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1 made under this title. In establishing rates, 

2 terms and conditions for loans or advances of 

3 credit made under this title, the Secretary shall 

4 take into account a homeowner’s ability to 

5 repay such loan or advance of credit.’’; and 

6 (C) in subsection (e), by inserting after the 

7 period at the end of the first sentence the fol8 lowing: ‘‘Any eligible homeowner who receives a 

9 grant or an advance of credit under this title 

10 may repay the loan in full, without penalty, by 

11 lump sum or by installment payments at any 

12 time before the loan becomes due and pay13 able.’’; 

14 (3) in section 105 (12 U.S.C. 2704)— 

15 (A) by striking subsection (b); 

16 (B) in subsection (e)— 

17 (i) by inserting ‘‘and emergency mort18 gage relief payments made under section 

19 106’’ after ‘‘insured under this section’’; 

20 and 

21 (ii) by striking ‘‘$1,500,000,000 at 

22 any one time’’ and inserting 

23 ‘‘$3,000,000,000’’; 


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1 (C) by redesignating subsections (c), (d), 

2 and (e) as subsections (b), (c), and (d), respec3 tively; and 

4 (D) by adding at the end the following new 

5 subsection: 

6 ‘‘(e) The Secretary shall establish underwriting 

7 guidelines or procedures to allocate amounts made avail8 able for loans and advances insured under this section and 

9 for emergency relief payments made under section 106 

10 based on the likelihood that a mortgagor will be able to 

11 resume mortgage payments, pursuant to the requirement 

12 under section 103(5).’’; 

13 (4) in section 107— 

14 (A) by striking ‘‘(a)’’; and 

15 (B) by striking subsection (b); 

16 (5) in section 108 (12 U.S.C. 2707), by adding 

17 at the end the following new subsection: 

18 ‘‘(d) COVERAGE OF EXISTING PROGRAMS.—The Sec19 retary shall allow funds to be administered by a State that 

20 has an existing program that is determined by the Sec21 retary to provide substantially similar assistance to home22 owners. After such determination is made such State shall 

23 not be required to modify such program to comply with 

24 the provisions of this title.’’; 

25 (6) in section 109 (12 U.S.C. 2708)— 


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1 (A) in the section heading, by striking 

2 ‘‘AUTHORIZATION AND’’; 

3 (B) by striking subsection (a); 

4 (C) by striking ‘‘(b)’’; and 

5 (D) by striking ‘‘1977’’ and inserting 

6 ‘‘2011’’; 

7 (7) by striking sections 110, 111, and 113 (12 

8 U.S.C. 2709, 2710, 2712); and 

9 (8) by redesignating section 112 (12 U.S.C. 

10 2711) as section 110. 

11 SEC. 3. ADDITIONAL ASSISTANCE FOR NEIGHBORHOOD 

12 STABILIZATION PROGRAM. 

13 Using the authority made available under sections 

14 101(a) and 115(a) of division A of the Emergency Eco15 nomic Stabilization Act of 2008 (12 U.S.C. 5211(a), 

16 5225(a)), the Secretary of the Treasury shall transfer to 

17 the Secretary of Housing and Urban Development 

18 $1,000,000,000, and the Secretary of Housing and Urban 

19 Development shall use such amounts for assistance to 

20 States and units of general local government for the rede21 velopment of abandoned and foreclosed homes, in accord22 ance with the same provisions applicable under the second 

23 undesignated paragraph under the heading ‘‘Community 

24 Planning and Development—Community Development 

25 Fund’’ in title XII of division A of the American Recovery 


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1 and Reinvestment Act of 2009 (Public Law 111–5; 123 

2 Stat. 217) to amounts made available under such second 

3 undesignated paragraph, except as follows: 

4 (1) Notwithstanding the matter of such second 

5 undesignated paragraph that precedes the first pro6 viso, amounts made available by this section shall re7 main available until expended. 

8 (2) The 3rd, 4th, 5th, 6th, 7th, and 15th pro9 visos of such second undesignated paragraph shall 

10 not apply to amounts made available by this section. 

11 (3) Amounts made available by this section 

12 shall be allocated based on a funding formula for 

13 such amounts established by the Secretary in ac14 cordance with section 2301(b) of the Housing and 

15 Economic Recovery Act of 2008 (42 U.S.C. 5301 

16 note), except that— 

17 (A) notwithstanding paragraph (2) of such 

18 section 2301(b), the formula shall be estab19 lished not later than 30 days after the date of 

20 the enactment of this Act; 

21 (B) the Secretary may not establish any 

22 minimum grant amount or size for grants to 

23 States; 

24 (C) the Secretary may establish a min25 imum grant amount for direct allocations to 


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1 units of general local government located within 

2 a State, which shall not exceed $1,000,000; and 

3 (D) each State and local government re4 ceiving grant amounts shall establish proce5 dures to create preferences for the development 

6 of affordable rental housing for properties as7 sisted with amounts made available by this sec8 tion. 

9 (4) Paragraph (1) of section 2301(c) of the 

10 Housing and Economic Recovery Act of 2008 shall 

11 not apply to amounts made available by this section. 

12 (5) Section 2302 of the Housing and Economic 

13 Recovery Act of 2008 shall not apply to amounts 

14 made available by this section. 

15 (6) The fourth proviso from the end of such 

16 second undesignated paragraph shall be applied to 

17 amounts made available by this section by sub18 stituting ‘‘2013’’ for ‘‘2012’’. 

19 (7) Notwithstanding section 2301(a) of the 

20 Housing and Economic Recovery Act of 2008, the 

21 term ‘‘State’’ means any State of the United States, 

22 the District of Columbia, the Commonwealth of 

23 Puerto Rico, the Commonwealth of the Northern 

24 Mariana Islands, Guam, the Virgin Islands, Amer25 ican Samoa, and other territory or possession of the 


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1 United States for purposes of this section and title 

2 III of division B of such Act, as applied to amounts 

3 made available by this section. 

4 (8)(A) None of the amounts made available by 

5 this section shall be distributed to— 

6 (i) any organization which has been con7 victed for a violation under Federal law relating 

8 to an election for Federal office; or 

9 (ii) any organization which employs appli10 cable individuals. 

11 (B) In this paragraph, the term ‘‘applicable in12 dividual’’ means an individual who— 

13 (i) is— 

14 (I) employed by the organization in a 

15 permanent or temporary capacity; 

16 (II) contracted or retained by the or17 ganization; or 

18 (III) acting on behalf of, or with the 

19 express or apparent authority of, the orga20 nization; and 

21 (ii) has been convicted for a violation 

22 under Federal law relating to an election for 

23 Federal office. 

Æ 


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