State Housing Relief Act of 2020

To establish a Housing Assistance Fund. 1. Short title This Act may be cited as the State Housing Relief Act of 2020 2. Housing Assistance Fund (a) Definitions In this section: (1) Secretary The term Secretary (2) State The term State (b) Establishment of fund There is established at the Department of the Treasury a Housing Assistance Fund to provide such funds as are allocated in subsection (f) to State housing finance agencies for the purpose of preventing homeowner mortgage defaults, foreclosures, and displacements of individuals and families experiencing financial hardship after January 21, 2020. (c) Allocation of funds (1) In general The Secretary of the Treasury shall establish such criteria as are necessary to allocate the funds available within the Housing Assistance Fund to each State. The Secretary shall allocate such funds among all States taking into consideration the number of unemployment claims within a State relative to the nationwide number of unemployment claims. (2) Small state minimum Each State shall receive no less than $125,000,000 for the purposes established in subsection (b). (d) Disbursement of funds (1) Initial disbursement The Secretary shall disburse to the State housing finance agencies not less than ½ (2) Second disbursement The Secretary shall disburse all funds made available pursuant to this section, and in accordance with the allocations established under subsection (c), not later than 180 days after the date of enactment of this Act. (e) Permissible uses of fund (1) In general Funds made available to State housing finance agencies pursuant to this section may be used for the purposes established under subsection (b), which may include— (A) mortgage payment assistance; (B) financial assistance to allow a borrower to reinstate their mortgage following a period of forbearance; (C) principal reduction; (D) utility payment assistance, including electric, gas, and water payment assistance; (E) any program established under the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets; (F) reimbursement of funds expended by a State or local government during the period beginning on January 21, 2020, and ending on the date that the first funds are disbursed by the State under the Housing Assistance Fund, for the purpose of providing housing or utility assistance to individuals or otherwise providing funds to prevent foreclosure or eviction of a homeowner or prevent mortgage delinquency or loss of housing or critical utilities as a response to the coronavirus disease 2019 (COVID–19) pandemic; and (G) any other assistance to prevent eviction, mortgage delinquency or default, foreclosure, or the loss of essential utility services. (2) Administrative expenses Not greater than 10 percent of the amount allocated to a State pursuant to subsection (c) may be used by a State housing financing agency for administrative expenses. Any amounts allocated to administrative expenses that are no longer necessary for administrative expenses may be used in accordance with paragraph (1). (f) Appropriation There is appropriated, out of amounts in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2020, to remain available until expended or transferred or credited under subsection (h), $35,000,000,000 to the Housing Assistance Fund established under subsection (b). (g) Use of housing finance agency innovation fund for the hardest hit housing markets funds A State housing finance agency may reallocate any administrative or programmatic funds it has received as an allocation from the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets created pursuant to section 101(a) of the Emergency Economic Stabilization Act of 2008 ( 12 U.S.C. 5211(a) (h) Rescission of funds Any funds that have not been allocated by a State housing finance agency to provide assistance as described under subsection (e) by December 31, 2030, shall be reallocated by the Secretary in the following manner: (1) Sixty-five percent shall be transferred or credited to the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4568 (2) Thirty-five percent shall be transferred or credited to the Capital Magnet Fund under section 1339 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4569 (i) Reporting requirements The Secretary shall provide public reports not less frequently than quarterly regarding the use of funds provided by the Housing Assistance Funds. Such reports shall include the following data by State and by program within each State, both for the past quarter and throughout the life of the program— (1) the amount of funds allocated; (2) the amount of funds disbursed; (3) the number of households and individuals assisted; (4) the acceptance rate of applicants; (5) the average amount of assistance provided per household receiving assistance; (6) the average length of assistance provided per household receiving assistance; (7) the income ranges of households for each household receiving assistance; and (8) the outcome 12 months after the household has received assistance.

Summary: State Housing Relief Act of 2020 This bill provides funds for assistance to homeowners to prevent mortgage defaults, foreclosures, and displacements of individuals and families experiencing financial hardship after January 21, 2020. The Department of the Treasury must disburse the funds to state housing finance agencies for the provision of such assistance.