I 

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. 

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 Program Reform Act of 2009’’. 

6 SEC. 2. REINVESTMENT OF PROFITS. 

7 (a) 2-YEAR REINVESTMENT PERIOD.—Section 

8 2301(d) of the Housing and Economic Recovery Act of 

9 2008, as amended under the heading relating to ‘‘CommuVerDate Nov 24 2008 20:14 May 24, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2587.IH H2587

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1 nity Development Fund’’ in title XII of division A of the 

2 American Recovery and Reinvestment Act of 2009 (Public 

3 Law 111–5; 123 Stat. 218), is amended by inserting after 

4 paragraph (3) the following new paragraph: 

5 ‘‘(4) REINVESTMENT OF PROFITS.— 

6 ‘‘(A) PROFITS FROM SALES, RENTALS, AND

7 REDEVELOPMENT.— 

8 ‘‘(i) 2-YEAR REINVESTMENT PE9 RIOD.—During the 2-year period beginning 

10 upon the date of the enactment of the 

11 Neighborhood Stabilization Program Re12 form Act of 2009, any revenue generated 

13 from the sale, rental, redevelopment, reha14 bilitation, or any other eligible use that is 

15 in excess of the cost to acquire and rede16 velop (including reasonable development 

17 fees) or rehabilitate an abandoned or fore18 closed upon home or residential property 

19 shall be provided to and used by the State 

20 or unit of general local government in ac21 cordance with, and in furtherance of, the 

22 intent and provisions of this section. 

23 ‘‘(ii) REDUCTION OF NATIONAL

24 DEBT.— 


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1 ‘‘(I) PROFITS.—Upon the expira2 tion of the 2-year period set forth 

3 under clause (i), any revenue gen4 erated from the sale, rental, redevel5 opment, rehabilitation, or any other 

6 eligible use that is in excess of the 

7 cost to acquire and redevelop (includ8 ing reasonable development fees) or 

9 rehabilitate an abandoned or fore10 closed upon home or residential prop11 erty shall be transfered to the special 

12 account established by section 

13 3113(d) of title 31, United States 

14 Code, and shall be used only as pro15 vided in such section to reduce the 

16 public debt. 

17 ‘‘(II) OTHER AMOUNTS.—Upon 

18 the expiration of the 2-year period set 

19 forth under clause (i), any other rev20 enue not described under subclause 

21 (I) generated from the sale, rental, re22 development, rehabilitation, or any 

23 other eligible use of an abandoned or 

24 foreclosed upon home or residential 

25 property shall be transfered to the 


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1 special account established by section 

2 3113(d) of title 31, United States 

3 Code, and shall be used only as pro4 vided in such section to reduce the 

5 public debt. 

6 ‘‘(B) OTHER REVENUES.—Any revenue 

7 generated under subparagraphs (A), (C) or (D) 

8 of subsection (c)(3) shall be provided to and 

9 used by the State or unit of general local gov10 ernment in accordance with, and in furtherance 

11 of, the intent and provisions of this section.’’. 

12 (b) APPLICABILITY TO STIMULUS ACT AMOUNTS.— 

13 Notwithstanding any other provision of law, the amend14 ment made by subsection (a) shall apply with respect to 

15 any amounts made available under the heading relating 

16 to ‘‘Community Development Fund’’ in title XII of divi17 sion A of the American Recovery and Reinvestment Act 

18 of 2009 (Public Law 111–5; 123 Stat. 218). 

Æ 


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