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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2587 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2587

To limit the reinvestment by States and localities of profits under the 
  Neighborhood Stabilization Program of the Department of Housing and 
                           Urban Development.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 21, 2009

   Mrs. Capito (for herself and Mr. Lee of New York) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL

 
To limit the reinvestment by States and localities of profits under the 
  Neighborhood Stabilization Program of the Department of Housing and 
                           Urban Development.

    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 ``Neighborhood Stabilization Program 
Reform Act of 2009''.

SEC. 2. REINVESTMENT OF PROFITS.

    (a) 2-Year Reinvestment Period.--Section 2301(d) of the Housing and 
Economic Recovery Act of 2008, as amended under the heading relating to 
``Community Development Fund'' in title XII of division A of the 
American Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 
Stat. 218), is amended by inserting after paragraph (3) the following 
new paragraph:
            ``(4) Reinvestment of profits.--
                    ``(A) Profits from sales, rentals, and 
                redevelopment.--
                            ``(i) 2-year reinvestment period.--During 
                        the 2-year period beginning upon the date of 
                        the enactment of the Neighborhood Stabilization 
                        Program Reform Act of 2009, any revenue 
                        generated from the sale, rental, redevelopment, 
                        rehabilitation, or any other eligible use that 
                        is in excess of the cost to acquire and 
                        redevelop (including reasonable development 
                        fees) or rehabilitate an abandoned or 
                        foreclosed upon home or residential property 
                        shall be provided to and used by the State or 
                        unit of general local government in accordance 
                        with, and in furtherance of, the intent and 
                        provisions of this section.
                            ``(ii) Reduction of national debt.--
                                    ``(I) Profits.--Upon the expiration 
                                of the 2-year period set forth under 
                                clause (i), any revenue generated from 
                                the sale, rental, redevelopment, 
                                rehabilitation, or any other eligible 
                                use that is in excess of the cost to 
                                acquire and redevelop (including 
                                reasonable development fees) or 
                                rehabilitate an abandoned or foreclosed 
                                upon home or residential property shall 
                                be transfered to the special account 
                                established by section 3113(d) of title 
                                31, United States Code, and shall be 
                                used only as provided in such section 
                                to reduce the public debt.
                                    ``(II) Other amounts.--Upon the 
                                expiration of the 2-year period set 
                                forth under clause (i), any other 
                                revenue not described under subclause 
                                (I) generated from the sale, rental, 
                                redevelopment, rehabilitation, or any 
                                other eligible use of an abandoned or 
                                foreclosed upon home or residential 
                                property shall be transfered to the 
                                special account established by section 
                                3113(d) of title 31, United States 
                                Code, and shall be used only as 
                                provided in such section to reduce the 
                                public debt.
                    ``(B) Other revenues.--Any revenue generated under 
                subparagraphs (A), (C) or (D) of subsection (c)(3) 
                shall be provided to and used by the State or unit of 
                general local government in accordance with, and in 
                furtherance of, the intent and provisions of this 
                section.''.
    (b) Applicability to Stimulus Act Amounts.--Notwithstanding any 
other provision of law, the amendment made by subsection (a) shall 
apply with respect to any amounts made available under the heading 
relating to ``Community Development Fund'' in title XII of division A 
of the American Recovery and Reinvestment Act of 2009 (Public Law 111-
5; 123 Stat. 218).
                                 <all>
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