I 

111TH CONGRESS 

1ST SESSION H. R. 3068 

To use amounts made available under the Troubled Assets Relief Program 

of the Secretary of the Treasury for relief for homeowners and neighborhoods. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 26, 2009 

Mr. FRANK of Massachusetts (for himself, Ms. WATERS, Mr. CARDOZA, and 

Ms. VELA ́ZQUEZ) introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To use amounts made available under the Troubled Assets 

Relief Program of the Secretary of the Treasury for 

relief for homeowners and neighborhoods. 

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 ‘‘TARP for Main Street 

5 Act of 2009’’. 

6 SEC. 2. HOUSING TRUST FUND. 

7 From dividends paid by financial institutions that 

8 have received financial assistance provided under title I 

9 of division A of the Emergency Economic Stabilization Act 


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1 of 2008 (12 U.S.C. 5211 et seq.), the Secretary of the 

2 Treasury shall transfer and credit $1,000,000,000 to the 

3 Housing Trust Fund established under section 1338 of 

4 the Federal Housing Enterprises Financial Safety and 

5 Soundness Act of 1992 (12 U.S.C. 4567) for use in ac6 cordance with such section. 

7 SEC. 3. NEIGHBORHOOD STABILIZATION PROGRAM. 

8 From dividends paid by financial institutions that 

9 have received financial assistance provided under title I 

10 of division A of the Emergency Economic Stabilization Act 

11 of 2008 (12 U.S.C. 5211 et seq.), the Secretary of the 

12 Treasury shall transfer $1,500,000,000 to the Secretary 

13 of Housing and Urban Development and such Secretary 

14 shall use such amounts for assistance to States and units 

15 of general local government for the redevelopment of aban16 doned and foreclosed homes, in accordance with the same 

17 provisions applicable under the second undesignated para18 graph under the heading ‘‘Community Planning and De19 velopment—Community Development Fund’’ in title XII 

20 of division A of the American Recovery and Reinvestment 

21 Act of 2009 (Public Law 111–5; 123 Stat. 217) to 

22 amounts made available under such second undesignated 

23 paragraph, except as follows: 

24 (1) Notwithstanding the matter of such second 

25 undesignated paragraph that precedes the first proVerDate Nov 24 2008 04:40 Jun 30, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3068.IH H3068

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1 viso, amounts made available by this section shall re2 main available until expended. 

3 (2) The 3rd, 4th, 5th, 6th, 7th, and 15th pro4 visos of such second undesignated paragraph shall 

5 not apply to amounts made available by this section. 

6 (3) Amounts made available by this section 

7 shall be allocated based on a funding formula for 

8 such amounts established by the Secretary in ac9 cordance with section 2301(b) of the Housing and 

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

11 note), except that— 

12 (A) notwithstanding paragraph (2) of such 

13 section 2301(b), the formula shall be estab14 lished not later than 30 days after the date of 

15 the enactment of this Act; 

16 (B) the Secretary may not establish any 

17 minimum grant amount or size for grants to 

18 States; and 

19 (C) the Secretary may establish a min20 imum grant amount for direct allocations to 

21 units of general local government located within 

22 a State, which shall not exceed $1,000,000. 

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

24 Housing and Economic Recovery Act of 2008 shall 

25 not apply to amounts made available by this section. 


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1 (5) Section 2302 of the Housing and Economic 

2 Recovery Act of 2008 shall not apply to amounts 

3 made available by this section. 

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

5 second undesignated paragraph shall be applied to 

6 amounts made available by this section by sub7 stituting ‘‘2013’’ for ‘‘2012’’. 

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

9 Housing and Economic Recovery Act of 2008, the 

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

11 the District of Columbia, the Commonwealth of 

12 Puerto Rico, the Commonwealth of the Northern 

13 Mariana Islands, Guam, the Virgin Islands, Amer14 ican Samoa, and other territory or possession of the 

15 United States for purposes of this section and title 

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

17 made available by this section. 

18 SEC. 4. EMERGENCY MORTGAGE RELIEF. 

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

20 available under section 115(a) of division A of the Emer21 gency Economic Stabilization Act of 2008 (12 U.S.C. 

22 5225(a)), the Secretary of the Treasury shall transfer to 

23 the Secretary of Housing and Urban Development 

24 $2,000,000,000, and the Secretary of Housing and Urban 

25 Development shall credit such amount to the Emergency 


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1 Homeowners’ Relief Fund, which such Secretary shall es2 tablish pursuant to section 107 of the Emergency Housing 

3 Act of 1975 (12 U.S.C. 2706), as such Act is amended 

4 by this section, for use for emergency mortgage assistance 

5 in accordance with title I of such Act. 

6 (b) REAUTHORIZATION OF EMERGENCY MORTGAGE

7 RELIEF PROGRAM.—Title I of the Emergency Housing 

8 Act of 1975 is amended— 

9 (1) in section 103(2) (12 U.S.C. 2702(2)— 

10 (A) by striking ‘‘have indicated’’ and all 

11 that follows through ‘‘regulation of the holder’’ 

12 and insert ‘‘have certified’’; 

13 (B) by striking ‘‘(such as the volume of de14 linquent loans in its portfolio)’’; and 

15 (C) by striking ‘‘, except that such state16 ment’’ and all that follows through ‘‘purposes of 

17 this title’’; 

18 (2) in section 104(b) (12 U.S.C. 2703(b)), by 

19 striking ‘‘the lesser of $250 per month’’; 

20 (3) in section 105(e) (12 U.S.C. 2704(e)), by 

21 striking ‘‘$1,500,000,000’’ and inserting 

22 ‘‘$2,000,000,000’’; 

23 (4) in section 109 (12 U.S.C. 2708)— 

24 (A) in the section heading, by striking 

25 ‘‘AUTHORIZATION AND’’; 


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1 (B) by striking subsection (a); 

2 (C) by striking ‘‘(b)’’; and 

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

4 ‘‘2011’’; and 

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

6 U.S.C. 2709, 2710, 2712). 

7 SEC. 5. MULTIFAMILY MORTGAGE RESOLUTION. 

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

9 available under section 115(a) of division A of the Emer10 gency Economic Stabilization Act of 2008 (12 U.S.C. 

11 5225(a)), the Secretary of the Treasury shall transfer 

12 $2,000,000,000 to the Secretary of Housing and Urban 

13 Development for use under the program developed under 

14 subsection (b) to stabilize multifamily properties that are 

15 in default or foreclosure, or have recently been foreclosed. 

16 (b) MULTIFAMILY MORTGAGE RESOLUTION PRO17 GRAM.—The Secretary of Housing and Urban Develop18 ment shall develop a program under this subsection to en19 sure the protection of current and future tenants of at20 risk multifamily properties, where feasible, based on cri21 teria that may include— 

22 (1) creating sustainable financing of such prop23 erties, that may take into consideration such factors 

24 as— 


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1 (A) the rental income generated by such 

2 properties; and 

3 (B) the preservation of adequate operating 

4 reserves; 

5 (2) maintaining the level of Federal, State, and 

6 city subsidies in effect as of the date of enactment 

7 of this Act; 

8 (3) providing funds for rehabilitation; and 

9 (4) facilitating the transfer of such properties, 

10 when appropriate and with the agreement of owners, 

11 to responsible new owners and ensuring affordability 

12 of such properties. 

13 (c) DEFINITION.—For purposes of this section, the 

14 term ‘‘multifamily properties’’ means a residential struc15 ture that consists of 5 or more dwelling units. 

16 SEC. 6. REDUCING TARP AUTHORIZATION LIMIT TO OFF17 SET COSTS. 

18 Paragraph (3) of section 115(a) of the Emergency 

19 Economic Stabilization Act of 2008 (12 U.S.C. 5225) is 

20 amended by inserting after ‘‘$1,244,000,000’’ the fol21 lowing: ‘‘, and as such amount is further reduced by such 

22 sums as may be necessary for assistance and costs (as 

23 such term is defined in section 502 of the Federal Credit 

24 Reform Act of 1990 (2 U.S.C. 661a)) of loans, advances, 


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1 insurance, and appropriations as authorized under the 

2 TARP for Main Street Act of 2009’’. 

Æ 


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