SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Neighborhood Stabilization Act of 2008’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Congressional purposes. 
Sec. 3. Loans and grants to States, metropolitan cities, and urban counties. 
Sec. 4. Qualified plans. 
Sec. 5. Allocation of amounts. 
Sec. 6. Loans. 
Sec. 7. Grants. 
Sec. 8. Eligible housing stimulus activities. 
Sec. 9. Shared appreciation agreement. 
Sec. 10. Spending requirements. 
Sec. 11. Servicer contact. 
Sec. 12. Accountability. 
Sec. 13. Definitions. 
Sec. 14. Funding. 
Sec. 15. Protection of right to bear arms. 
Sec. 16. Ineligiblity of illegal aliens for assistance. 
Sec. 17. Regulations and implementation. 
SEC. 2. CONGRESSIONAL PURPOSES. 
The purposes of this Act are— 
(1) to establish a loan and grant program ad-
ministered by the Department of Housing and 
Urban Development to help States, metropolitan cit-
ies, and urban counties preserve the equity and en-
sure the safety of the neighbors of homes made va-
cant by the predatory lending and foreclosure crises, 
to prevent and reduce the incidence of such vacan-
cies through various means, including purchasing 
and rehabilitating owner-vacated, foreclosed homes 
with the goal of stabilizing and occupying them as
soon as possible, either through resale or rental to 
qualified families; 
(2) to distribute these loans and grants to areas 
with the highest levels of foreclosure and delinquent 
subprime mortgages, and largest increases in the 
rate of vacant and abandoned single family homes; 
(3) to provide incentives for States, metropoli-
tan cities, and urban counties to use the funds to 
stabilize as many properties as possible; and 
(4) to provide housing for low- and moderate- 
income families, especially those that have lost 
homes to foreclosure. 
SEC. 3. LOANS AND GRANTS TO STATES, METROPOLITAN 
CITIES, AND URBAN COUNTIES. 
The Secretary of Housing and Urban Development 
shall, subject to the availability of amounts under section 
14, make grants under section 5(a) to qualified States and 
under subsections (f) and (g) of section 5 to qualified met-
ropolitan cities and qualified urban counties, respectively, 
and make loans under section 6 in accordance with the 
approved plans of qualified States, qualified metropolitan 
cities, and qualified urban counties, for use to carry out 
eligible housing stimulus activities under section 8. The 
program under this Act shall be administered through the 
Office of Community Planning and Development of the
Department of Housing and Urban Development or any 
successor office responsible for administering the commu-
nity development block grant program under title I of the 
Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.). 
SEC. 4. QUALIFIED PLANS. 
(a) IN GENERAL.—The Secretary may make a grant 
under this Act only to a State, metropolitan city, or urban 
county, and may allocate a loan authority amount under 
this Act only for a State, metropolitan city, or urban coun-
ty, that has submitted to the Secretary a plan that meets 
the requirements under this section and has been approved 
under this section. 
(b) CONTENTS.—A plan under this section for an al-
location recipient shall— 
(1) designate a housing finance agency of the 
allocation recipient, or other agency, department, or 
entity of the allocation recipient, or any other des-
ignee, as the allocation recipient administrator to act 
on behalf of the allocation recipient for purposes of 
this Act; 
(2) describe the housing stimulus activities 
under section 8 to be carried out with assistance 
under this Act for the allocation recipient by the en-
tity identified pursuant to paragraph (1) of this sub-
section; 
(3) prioritize the allocation of funds to low- and 
moderate-income neighborhoods with high concentra-
tions of vacancies, according to the number of cen-
sus tracts, as determined by the Secretary, to have 
large increases in the rate of vacancy during the 
past eight quarters and significant levels of loans de-
termined to be at risk of foreclosure, and describe 
how such activities will help restore or improve the 
viability of such neighborhoods by providing for pur-
chase or occupancy of qualified foreclosed properties 
as soon as practicable and in a manner that will fa-
cilitate repayment of the loans provided under this 
Act for carrying out such activities; 
(4) set forth the procedures that the allocation 
recipient will use to allocate grant and loan amounts 
and monitor for compliance with the requirements of 
section 8; 
(5) provide that grant and loan amounts pro-
vided under this Act for the allocation recipient will 
be used only for eligible housing stimulus activities 
under section 8 that are eligible under such section 
for assistance with grant or loan amounts, as appli-
cable;
(6) contain such assurances as the Secretary 
shall require that the housing stimulus activities to 
be carried out with assistance under this Act shall 
not result in a significant net loss in rental housing 
in an area in which such activities are undertaken; 
(7) give priority emphasis and consideration to 
metropolitan areas, metropolitan cities, urban areas, 
rural areas, low- and moderate-income areas, census 
tracts and other areas having the greatest need, in-
cluding those— 
(A) with the greatest percentage of home 
foreclosures; 
(B) with the highest percentage of homes 
financed by subprime mortgage loans over 90 
days delinquent; or 
(C) identified by the State, qualified met-
ropolitan city, or unit of general local govern-
ment as likely to face a significant rise in the 
rate of home foreclosures; 
(8) notwithstanding any other preferences es-
tablished or authorized under this subsection, pro-
vide first priority, in use of amounts from grants or 
loans under this Act for rehabilitating housing, for 
providing housing for veterans, members of the 
Armed Forces on active duty, members of the Na-
tional Guard or Armed Forces reserves, school 
teachers, and emergency responders; 
(9) provide preference for activities that serve 
the lowest income families, who otherwise meet the 
income requirements under section 8, for the longest 
period and homeowners, who otherwise meet such in-
come requirements, whose mortgages have been fore-
closed; 
(10) provide preference for use of grant and 
loan amounts in connection with acquisition of quali-
fied foreclosed properties that are acquired no ear-
lier than 60 days after the owner of the property de-
scribed in section 13(7)(B) acquired such ownership; 
(11) describe any other preferences the alloca-
tion recipient may establish, such as housing for 
first responders, for veterans, for nurses serving un-
derserved areas or homeless persons, or for homeless 
persons in accordance with the 10-year plan of the 
State to end homelessness, or providing housing for 
public school teachers or workforce who are em-
ployed by the city or locality in which the housing 
is located; 
(12) provide for obligation and outlay of grant 
amounts, and for loan commitments and disburse-
ment, in accordance with the requirements under 
section 10; and 
(13) in the case of any grant or loan amounts 
that will be invested with the possibility of a return 
on investment, provide for use of any return on such 
investment only for one or more eligible housing 
stimulus activities under section 8. 
(c) SUBMISSION.— 
(1) IN GENERAL.—The Secretary shall provide 
for allocation recipients to submit plans under this 
section to the Secretary and shall establish require-
ments for the contents and form of such plans. Ex-
cept in the case of plan resubmitted pursuant to 
subsection (d)(3), the Secretary may not accept or 
consider a plan unless the plan is submitted to the 
Secretary before the expiration of the 30-day period 
beginning upon the date of the enactment of this 
Act. 
(2) PUBLIC APPROVAL.—An allocation recipient 
may not submit a plan to the Secretary unless the 
plan is approved by the chief executive officer of the 
allocation recipient after a public hearing on the 
plan held pursuant to reasonable public notice. 
(d) REVIEW AND APPROVAL.—
(1) TIMING.—The Secretary shall review, and 
approve or disapprove, each plan submitted or resub-
mitted pursuant to paragraph (3) in compliance with 
the requirements established under this section be-
fore the expiration of the 30-day period beginning 
upon the submission of the plan. If the Secretary 
does not approve or disapprove a plan that is sub-
mitted or resubmitted in accordance with the re-
quirements under this section before the expiration 
of such 30-day period and notify the allocation re-
cipient of such approval or disapproval, the plan 
shall be considered approved for purposes of this 
section. 
(2) STANDARD FOR DISAPPROVAL.—The Sec-
retary may disapprove a plan only if the plan fails 
to comply with the requirements of this Act. 
(3) RESUBMISSION.—If the Secretary dis-
approves the plan of an allocation recipient, the Sec-
retary shall submit to the allocation recipient the 
reasons for the disapproval, and the allocation re-
cipient may, during the 15-day period that begins 
upon notification of such disapproval and the rea-
sons for such disapproval, submit to the Secretary a 
revised plan for review and approval in accordance 
with this subsection.
SEC. 5. ALLOCATION OF AMOUNTS. 
(a) GRANTS.—From the total amount made available 
under section 14(a) for grants under this Act, the Sec-
retary shall make a grant to each qualified State in the 
grant amount determined under subsection (c) of this sec-
tion for the qualified State. 
(b) LOANS.—From the aggregate amount of author-
ity for the outstanding principal balance of loans made 
under this Act pursuant to section 14(b)(1), the Secretary 
shall allocate such authority for loans under this Act for 
each qualified State in the loan authority amount deter-
mined under subsection (c) of this section for the qualified 
State. 
(c) GRANT
AMOUNTS
AND
LOAN
AUTHORITY 
AMOUNTS.— 
(1) IN GENERAL.—The grant amount or loan 
authority amount for a qualified State shall be the 
foreclosure grant share or foreclosure loan share, re-
spectively, for the State determined under subsection 
(d), as such share is adjusted in accordance with an 
index established or selected by the Secretary to ac-
count for differences between qualified States in the 
median price of single family housing in such States. 
(2) LIMITATION ON ADJUSTMENT.—If such ad-
justment would result in a grant amount or loan au-
thority amount for any State that exceeds 125 per-
cent of the foreclosure grant share or foreclosure 
loan share, respectively, for the State, the grant 
amount or loan authority amount for the State shall 
be 125 percent of foreclosure grant share or fore-
closure loan share, respectively, for the State and 
the Secretary shall increase the grant amounts or 
loan authority amounts for all other States on a pro 
rata basis, except as provided in paragraph (3), by 
the amount necessary to account for the aggregate 
of any such decreases in grant amounts or loan au-
thority amounts for States to comply with the 125 
percent limitation. 
(3) LIMITATION
ON
REALLOCATION.—No in-
crease in the grant amount or loan authority amount 
for any State from amounts reallocated pursuant to 
paragraph (2) shall result in the grant amount or 
loan authority amount for any State exceeding 125 
percent of the foreclosure grant share or foreclosure 
loan share for the State, respectively. 
(4) 
PRIORITY
PREFERENCE
FOR
UNUSED 
AMOUNTS.—States which have their grant or loan 
amounts reduced under paragraph (2) shall be 
granted a priority preference for any loans or grants 
which may be reallocated under subsection (i) (relat-
ing to reallocation of funds).
(d) FORECLOSURE SHARES.—For purposes of this 
section: 
(1) GRANT
SHARE.—The foreclosure grant 
share for a qualified State shall be the amount that 
bears the same ratio to the total amount made avail-
able under section 14(a) as the number of fore-
closures on mortgages for single family housing and 
subprime mortgage loans for single family housing 
that are over 90 days delinquent, occurring in such 
State during the most recently completed four cal-
endar quarters for which such information is avail-
able, as determined by the Secretary, bears to the 
aggregate number of such foreclosures and such de-
linquent subprime mortgage loans occurring in all 
qualified States during such calendar quarters. 
(2) LOAN SHARE.—The foreclosure loan share 
for a qualified State shall be the amount that bears 
the same ratio to the aggregate amount of the prin-
cipal balance of loans that may be outstanding at 
any time under this Act pursuant to section 14(b)(1) 
as the number of foreclosures on mortgages for sin-
gle family housing and subprime mortgage loans for 
single family housing that are over 90 days delin-
quent, occurring in such State during the most re-
cently completed four calendar quarters for which
such information is available, as determined by the 
Secretary, bears to the aggregate number of such 
foreclosures and such delinquent subprime mortgage 
loans occurring in all qualified States during such 
calendar quarters. 
(e) DISTRIBUTION
OF FULL AMOUNT.—The Sec-
retary shall establish the index referred to in subsection 
(c) and the grant and loan authority amounts for the 
qualified States in a manner that provides that— 
(1) the aggregate of the grant amounts for all 
qualified States is equal to the total amount made 
available under section 14(a); and 
(2) the aggregate of the loan authority amounts 
for all qualified States is equal to the aggregate 
amount of authority for the outstanding principal 
balance of all loans made under this Act pursuant 
to section 14(b)(1). 
(f) REQUIREMENT TO ALLOCATE
TO QUALIFIED 
METROPOLITAN CITIES.—Of any grant amounts and loan 
authority amounts allocated pursuant to this section for 
a State, the Secretary shall allocate for each qualified met-
ropolitan city located in such State a portion of such grant 
amounts and such loan authority amounts that bears the 
same ratio to such grant amounts and loan authority 
amounts, respectively, allocated for the State as the num-
ber of foreclosures on mortgages for single family housing 
and subprime mortgage loans for single family housing 
that are over 90 days delinquent, occurring in such quali-
fied metropolitan city during the most recently completed 
four calendar quarters for which such information is avail-
able, as determined by the Secretary, bears to the aggre-
gate number of such foreclosures and such delinquent 
subprime mortgage loans occurring in the State during 
such calendar quarters. The Secretary shall adjust such 
allocation to account for differences between median single 
family housing prices in the State and in qualified metro-
politan cities in the State. 
(g) REQUIREMENT TO ALLOCATE
TO QUALIFIED 
URBAN COUNTIES.—Of any grant amounts and loan au-
thority amounts allocated pursuant to this section for a 
State, such State shall allocate for each qualified urban 
county located in such State a portion of such grant 
amounts and such loan authority amounts that bears the 
same ratio to such grant amounts and loan authority 
amounts, respectively, allocated for the State as the num-
ber of foreclosures on mortgages for single family housing 
and subprime mortgage loans for single family housing 
that are over 90 days delinquent, occurring in such quali-
fied urban county during the most recently completed four 
calendar quarters for which such information is available,
SEC. 6. LOANS. 
(a) REQUIREMENT OF LOAN AUTHORITY AMOUNT.— 
The Secretary may make a loan under this Act for use 
in the area of an allocation recipient only to the extent 
and in such amounts that loan authority amounts for such 
allocation recipient are available. 
(b) REVOLVING AVAILABILITY OF LOAN AUTHORITY 
AMOUNT.—The loan authority amount allocated for each 
allocation recipient shall— 
(1) upon the Secretary entering into a binding 
commitment to make a loan under this Act for use 
in the area of such allocation recipient, be decreased 
by the amount of the principal obligation of such 
loan; and 
(2) upon the repayment to the Secretary by any 
borrower of any principal amounts borrowed under 
a loan this Act for use in the area of such allocation 
recipient, be increased by the amount of principal re-
paid. 
(c) ASSISTED ENTITIES.—The loan authority amount 
of an allocation recipient may be used for activities de-
scribed in section 8(a) undertaken by— 
(1) the allocation recipient; 
(2) a unit of local government or a local govern-
mental entity; or
(3) any other entity, as provided in the ap-
proved plan of the allocation recipient under section 
4. 
(d) LOAN TERMS.—Each loan provided under this 
Act from the loan authority amount of an allocation recipi-
ent shall— 
(1) bear no interest; 
(2) have a term to maturity of— 
(A) 3 years, in the case of any loan made 
to purchase or finance the purchase of qualified 
foreclosed housing for use under section 8(a)(1) 
for homeownership; and 
(B) 5 years, in the case of any loan made 
to purchase or finance the purchase of qualified 
foreclosed housing for use under section 8(a)(2) 
for rental; 
(3) not provide for amortization of the principal 
obligation of the loan during such term; 
(4) be non-recourse; 
(5) require payment of the original principal ob-
ligation under the loan only upon the expiration of 
the term of the loan; and 
(6) have such other terms and conditions as the 
Secretary may provide.
(e) PROCEDURE.—A qualified State, a qualified met-
ropolitan city, and a qualified urban county shall— 
(1) enter into a loan agreement on behalf of the 
Secretary on terms established under this Act and 
any other terms such State, qualified metropolitan 
city, or qualified urban county determines appro-
priate; 
(2) disburse the loan amount in accordance 
with such terms, subject only to the absence of suffi-
cient loan authority amount for such State, such 
qualified metropolitan city, or such qualified urban 
county; 
(3) monitor such loans; and 
(4) collect and transmit to the Secretary any 
loan repayments. 
(f) ELIGIBILITY
FOR REPEAT LENDING.—A loan 
under this Act may be made to an entity that has pre-
viously borrowed amounts under a loan under this Act 
only if such entity has repaid 90 percent or more of the 
amounts due under all previous such loans. The Secretary 
may waive such requirement upon a request by an alloca-
tion recipient if the borrower has demonstrated satisfac-
tory progress in utilizing outstanding loans and sufficient 
capacity to utilize additional loan amounts effectively.
(g) SUNSET.—The Secretary may not enter into any 
commitment to make a loan under this Act, or make any 
such loan, after the expiration of the 48-month period be-
ginning on the date of the enactment of this Act. 
SEC. 7. GRANTS. 
The grant amount of an allocation recipient may be 
used under section 8(b) by the allocation recipient, a unit 
of local government or a local governmental entity, or a 
nonprofit organization. 
SEC. 8. ELIGIBLE HOUSING STIMULUS ACTIVITIES. 
(a) LOAN AMOUNTS.—Amounts provided under a 
loan under this Act for an allocation recipient shall be 
used, in accordance with the approved plan of such alloca-
tion recipient, only for the following activities: 
(1) HOMEOWNERSHIP
HOUSING
PROVISION.— 
To purchase or finance the purchase of qualified 
foreclosed housing for resale as housing for home-
ownership to families having incomes that do not ex-
ceed 140 percent of the median income for the area 
in which the housing is located. 
(2) RENTAL
HOUSING
PROVISION.—To pur-
chase or finance the purchase of qualified foreclosed 
housing for use as rental, lease-purchase, or rent-to- 
own housing, subject to the following requirements:
(A) QUALIFIED
TENANTS.—All dwelling 
units in the housing purchased or financed 
using any loan amounts shall be available for 
rental only by families whose incomes do not 
exceed 100 percent of the median income for 
the area in which the housing is located. 
(B) RENTS.—Rents for each dwelling unit 
in the housing purchased or financed using any 
loan amounts shall be established at amounts 
that do not exceed market rents for comparable 
dwelling units located in the area in which the 
housing is located and in accordance with such 
requirements as the Secretary shall establish to 
ensure that rents are established in a fair, ob-
jective, and arms-length manner. 
(3) HOUSING
REHABILITATION.—To rehabili-
tate qualified foreclosed housing acquired with as-
sistance provided pursuant to this subsection, to the 
extent necessary to comply with applicable laws, 
codes, and other requirements relating to housing 
safety, quality, and habitability, or to make improve-
ments to the housing to increase the energy effi-
ciency or conservation of the housing or provide a 
renewable energy source or sources for the housing, 
for the purpose of reselling the housing, to the ex-
tent possible, during the 3-month period that begins 
upon completion of rehabilitation and at a price that 
is as close as possible to the acquisition price of the 
housing. 
(b) GRANT AMOUNTS.—Grant amounts provided 
under this Act to an allocation recipient shall be used, in 
accordance with the approved plan of such allocation re-
cipient, only for the following activities: 
(1) OPERATING
AND
HOLDING
COSTS.—For 
costs of holding and operating qualified foreclosed 
housing acquired pursuant to subsection (a), includ-
ing expenses incurred operating housing assisted 
under this Act with respect to the administration, 
maintenance, repair, security, utilities, fuel, fur-
nishings, equipment, management, taxes, handling, 
insurance, and other related costs. 
(2) COSTS RELATING TO PROPERTY ACQUISI-
TION.—For incidental costs involved in acquiring 
qualified foreclosed housing pursuant to subsection 
(a), including reasonable closing costs, except that 
grant amounts may not be used to pay any portion 
of the purchase price for the housing under section 
13(7)(C). 
(3) ADMINISTRATIVE COSTS.—For costs of the 
allocation recipient in administering loan authority
amounts and grant amounts under this Act, except 
that the amount of grant amounts provided under 
this Act to an allocation recipient that may be used 
under this paragraph shall not exceed the amount 
equal to 8 percent of the sum of the grant amounts 
provided to the allocation recipient pursuant to sub-
section (a), (f), or (g) of section 5, as applicable, and 
the loan authority amount allocated to the allocation 
recipient pursuant to subsection (b), (f), or (g) of 
section 5, as applicable. 
(4) PLANNING COSTS.—For planning costs of 
the State in connection with this Act, except that 
the amount of grant amounts provided under this 
Act to an allocation recipient that may be used 
under this paragraph shall not exceed the amount 
equal to 2 percent of the sum of the grant amounts 
provided to the allocation recipient pursuant to sub-
section (a), (f), or (g) of section 5, as applicable, and 
the loan authority amount allocated to the State 
pursuant to subsection (b), (f), or (g) of section 5, 
as applicable. 
(5) HOUSING REHABILITATION.—For activities 
set forth in subsection (a)(3), except that an alloca-
tion recipient shall not use more than 20 percent of 
a grant amount allocation for such activities.
(6) DEMOLITION.—For costs of demolishing 
qualified foreclosed housing that is deteriorated or 
unsafe, but amounts may be used under this para-
graph only if the Secretary determines that the 
neighborhood or other area in which the housing is 
located has a high incidence of vacant and aban-
doned housing (or other vacant and abandoned 
structures) and is experiencing a significant decline 
in population. 
Notwithstanding any other provision of this subsection, 
grant amounts provided under this Act may not be used 
to provide assistance of any kind (including grants, loans, 
and closing cost financing) to provide amounts for 
downpayments for any homebuyers of single family hous-
ing. 
(c) PROHIBITED USES.—The Secretary shall, by reg-
ulation, set forth prohibited uses of grant or loan amounts 
under this Act, which shall include use for— 
(1) political activities; 
(2) advocacy; 
(3) lobbying, whether directly or through other 
parties; 
(4) counseling services; 
(5) travel expenses; and
(6) preparing or providing advice on tax re-
turns. 
(d) INCOME TARGETING REQUIREMENT.— 
(1) VERY
LOW-INCOME
FAMILIES.—Not less 
than 50 percent of the total grant amounts an allo-
cation recipient makes available under this Act shall 
be used for activities under subsection (b) in connec-
tion with providing housing for families whose in-
comes do not exceed 50 percent of the median in-
come for the area in which the housing is located. 
(2) EXTREMELY LOW-INCOME FAMILIES.—Not 
less than 50 percent of the total grant amounts an 
allocation recipient makes available under paragraph 
(1) shall be used for activities under subsection (b) 
in connection with providing housing for families 
whose incomes do not exceed 30 percent of the me-
dian income for the area in which the housing is lo-
cated. 
(3) WAIVER.— 
(A) IN GENERAL.—The Secretary may es-
tablish a percentage for purposes of paragraph 
(2) that is less than 50 percent if an allocation 
recipient certifies that, in addition to any other 
requirements the Secretary may establish—
(i) such allocation recipient has at-
tempted to use all other federally related 
resources available to it in combination 
with the resources available under this Act 
to meet the requirements of paragraph (2); 
and 
(ii) the failure to comply with para-
graph (2) will not result in an overall loss 
of housing affordable to families whose in-
comes do not exceed 30 percent of area 
median income in the area of such alloca-
tion recipient. 
(B) 
CONSIDERATION
OF
HOUSING 
NEEDS.—In establishing an alternative percent-
age for purposes of paragraph (2) for an alloca-
tion recipient that meets the certification re-
quirements of subparagraph (A), the Secretary 
shall take into consideration the housing needs 
in the area of such allocation recipient of fami-
lies whose incomes do not exceed 30 percent of 
area median income. 
(e) USE FOR RURAL AREAS.—An allocation recipient 
receiving any grant or loan amounts under this Act that 
includes any rural areas shall use a portion of its grant 
and loan authority amount for eligible activities located
in rural areas that is proportionate to the identified need 
for such activities in such rural areas. 
(f) SECURITY.—A qualified State, or at its election, 
a qualified metropolitan city or qualified urban county, 
shall record a lien in the name of the Secretary on any 
qualified foreclosed housing purchased or financed with a 
loan under this section in the amount of the principal obli-
gation under the loan and interest due under the loan. 
(g) QUALIFIED HOMEOWNERS.—This Act may not be 
construed to prevent the resale of qualified foreclosed 
housing to a prior owner or occupant of such housing who 
meets the income requirements of this Act. 
(h) VOUCHER NONDISCRIMINATION.— 
(1) PROSPECTIVE
TENANTS.—A recipient of 
amounts from a loan or grant under this Act may 
not refuse to lease a dwelling unit in housing as-
sisted with any such loan or grant amounts to a 
holder of a voucher or certificate of eligibility under 
section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f) because of the status of the pro-
spective tenant as such a holder. 
(2) CURRENT TENANTS.—In the case of any 
qualified foreclosed housing for which funds made 
available under the Act are used and in which a re-
cipient of assistance under section 8(o) of the U.S.