H. R. 7148—243 
Association—Guarantees of Mortgage-Backed Securities Loan Guar-
antee Program Account’’, and ‘‘Office of Inspector General’’ within 
the Department of Housing and Urban Development. 
SEC. 215. Notwithstanding any other provision of law, for fiscal 
year 2026, the Secretary may make a notice of funding opportunity, 
and a notice of any funding decision, for any program or discre-
tionary fund administered by the Secretary that is to be competi-
tively awarded available only on the Internet at the appropriate 
Government website or through other electronic media, as deter-
mined by the Secretary. 
SEC. 216. Payment of attorney fees in program-related litigation 
shall be paid from the individual program office and Office of 
General Counsel salaries and expenses appropriations. 
SEC. 217. The Secretary is authorized to transfer up to 10 
percent or $5,000,000, whichever is less, of funds appropriated 
for any office under the headings ‘‘Administrative Support Offices’’ 
or ‘‘Program Offices’’ to any other such office under such headings: 
Provided, That the Secretary shall provide notification to such 
Committees 5 business days in advance of any such transfers. 
SEC. 218. (a) Any entity receiving housing assistance payments 
shall maintain decent, safe, and sanitary conditions, as determined 
by the Secretary, and comply with any standards under applicable 
State or local laws, rules, ordinances, or regulations relating to 
the physical condition of any property covered under a housing 
assistance payment contract. 
(b) The Secretary shall take action under subsection (c) when 
a multifamily housing project with a contract under section 8 of 
the United States Housing Act of 1937 (42 U.S.C. 1437f) or a 
contract for similar project-based assistance— 
(1) receives a failing score under the Uniform Physical 
Condition Standards (UPCS) or successor standard; or 
(2) fails to certify in writing to the Secretary within 3 
days that all Exigent Health and Safety deficiencies, or those 
deficiencies requiring correction within 24 hours, identified by 
the inspector at the project have been corrected. 
Such requirements shall apply to insured and noninsured 
projects with assistance attached to the units under section 8 of 
the United States Housing Act of 1937 (42 U.S.C. 1437f), but 
shall not apply to such units assisted under section 8(o)(13) of 
such Act (42 U.S.C. 1437f(o)(13)) or to public housing units assisted 
with capital or operating funds under section 9 of the United 
States Housing Act of 1937 (42 U.S.C. 1437g). 
(c)(1) Within 15 days of the issuance of the Real Estate Assess-
ment Center (‘‘REAC’’) inspection, the Secretary shall provide the 
owner with a Notice of Default with a specified timetable, deter-
mined by the Secretary, for correcting all deficiencies. The Secretary 
shall provide a copy of the Notice of Default to the tenants, the 
local government, any mortgagees, and any contract administrator. 
If the owner’s appeal results in a passing score, the Secretary 
may withdraw the Notice of Default. 
(2) At the end of the time period for correcting all deficiencies 
specified in the Notice of Default, if the owner fails to fully correct 
such deficiencies, the Secretary may— 
(A) require immediate replacement of project management 
with a management agent approved by the Secretary; 
(B) impose civil money penalties, which shall be used solely 
for the purpose of supporting safe and sanitary conditions at
H. R. 7148—244 
applicable properties, as designated by the Secretary, with pri-
ority given to the tenants of the property affected by the pen-
alty; 
(C) abate the section 8 contract, including partial abate-
ment, as determined by the Secretary, until all deficiencies 
have been corrected; 
(D) pursue transfer of the project to an owner, approved 
by the Secretary under established procedures, who will be 
obligated to promptly make all required repairs and to accept 
renewal of the assistance contract if such renewal is offered; 
(E) transfer the existing section 8 contract to another 
project or projects and owner or owners; 
(F) pursue exclusionary sanctions, including suspensions 
or debarments from Federal programs; 
(G) seek judicial appointment of a receiver to manage the 
property and cure all project deficiencies or seek a judicial 
order of specific performance requiring the owner to cure all 
project deficiencies; 
(H) work with the owner, lender, or other related party 
to stabilize the property in an attempt to preserve the property 
through compliance, transfer of ownership, or an infusion of 
capital provided by a third-party that requires time to effec-
tuate; or 
(I) take any other regulatory or contractual remedies avail-
able as deemed necessary and appropriate by the Secretary. 
(d) The Secretary shall take appropriate steps to ensure that 
project-based contracts remain in effect, subject to the exercise 
of contractual abatement remedies to assist relocation of tenants 
for major threats to health and safety after written notice to the 
affected tenants. To the extent the Secretary determines, in con-
sultation with the tenants and the local government, that the 
property is not feasible for continued rental assistance payments 
under such section 8 or other programs, based on consideration 
of— 
(1) the costs of rehabilitating and operating the property 
and all available Federal, State, and local resources, including 
rent adjustments under section 524 of the Multifamily Assisted 
Housing Reform and Affordability Act of 1997 (‘‘MAHRAA’’); 
and 
(2) environmental conditions that cannot be remedied in 
a cost-effective fashion, the Secretary may contract for project- 
based rental assistance payments with an owner or owners 
of other existing housing properties, or provide other rental 
assistance. 
(e) The Secretary shall report semi-annually on all properties 
covered by this section that are assessed through the Real Estate 
Assessment Center and have failing physical inspection scores or 
have received an unsatisfactory management and occupancy review 
within the past 36 months. The report shall include— 
(1) identification of the enforcement actions being taken 
to address such conditions, including imposition of civil money 
penalties and termination of subsidies, and identification of 
properties that have such conditions multiple times; 
(2) identification of actions that the Department of Housing 
and Urban Development is taking to protect tenants of such 
identified properties; and
H. R. 7148—245 
(3) any administrative or legislative recommendations to 
further improve the living conditions at properties covered 
under a housing assistance payment contract. 
The first report shall be submitted to the Senate and House 
Committees on Appropriations not later than 30 days after the 
enactment of this Act, and the second report shall be submitted 
within 180 days of the transmittal of the first report. 
SEC. 219. None of the funds made available by this Act, or 
any other Act, for purposes authorized under section 8 (only with 
respect to the tenant-based rental assistance program) and section 
9 of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.), may be used by any public housing agency for any amount 
of salary, including bonuses, for the chief executive officer of which, 
or any other official or employee of which, that exceeds the annual 
rate of basic pay payable for a position at level IV of the Executive 
Schedule at any time during any public housing agency fiscal year 
2026. 
SEC. 220. None of the funds made available by this Act and 
provided to the Department of Housing and Urban Development 
may be used to make, withdraw, terminate, or rescind (except 
at the request of the recipient) a grant award unless the Secretary 
notifies the House and Senate Committees on Appropriations not 
less than 3 full business days before any project, State, locality, 
housing authority, tribe, nonprofit organization, or other entity 
selected to receive a grant award is announced or is notified of 
such changes by the Department or its offices: Provided, That 
such notification shall list each grant award and project description 
by State and congressional district. 
SEC. 221. None of the funds made available in this Act shall 
be used by the Federal Housing Administration, the Government 
National Mortgage Association, or the Department of Housing and 
Urban Development to insure, securitize, or establish a Federal 
guarantee of any mortgage or mortgage backed security that 
refinances or otherwise replaces a mortgage that has been subject 
to eminent domain condemnation or seizure, by a State, munici-
pality, or any other political subdivision of a State. 
SEC. 222. None of the funds made available by this Act may 
be used to terminate the status of a unit of general local government 
as a metropolitan city (as defined in section 102 of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5302)) with 
respect to grants under section 106 of such Act (42 U.S.C. 5306). 
SEC. 223. Amounts made available by this Act that are appro-
priated, allocated, advanced on a reimbursable basis, or transferred 
to the Office of Policy Development and Research of the Department 
of Housing and Urban Development and functions thereof, for 
research, evaluation, or statistical purposes, and that are unex-
pended at the time of completion of a contract, grant, or cooperative 
agreement, may be deobligated and shall immediately become avail-
able and may be reobligated in that fiscal year or the subsequent 
fiscal year for the research, evaluation, or statistical purposes for 
which the amounts are made available to that Office subject to 
reprogramming requirements in section 405 of this Act. 
SEC. 224. None of the funds provided in this Act or any other 
Act may be used for awards, including performance, special act, 
or spot, for any employee of the Department of Housing and Urban 
Development subject to administrative discipline (including suspen-
sion from work), in this fiscal year, but this prohibition shall not
H. R. 7148—246 
be effective prior to the effective date of any such administrative 
discipline or after any final decision over-turning such discipline. 
SEC. 225. With respect to grant amounts awarded under the 
heading ‘‘Homeless Assistance Grants’’ for fiscal years 2015 through 
2026 for the continuum of care (CoC) program as authorized under 
subtitle C of title IV of the McKinney-Vento Homeless Assistance 
Act, costs paid by program income of grant recipients may count 
toward meeting the recipient’s matching requirements, provided 
the costs are eligible CoC costs that supplement the recipient’s 
CoC program. 
SEC. 226. (a) From amounts made available under this title 
under the heading ‘‘Homeless Assistance Grants’’, the Secretary 
may award 1-year transition grants to recipients of funds for activi-
ties under subtitle C of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11381 et seq.) to transition from one continuum 
of care program component to another. 
(b) In order to be eligible to receive a transition grant, the 
funding recipient must have the consent of the continuum of care 
and meet standards determined by the Secretary. 
SEC. 227. The promise zone designations and promise zone 
designation agreements entered into pursuant to such designations, 
made by the Secretary in prior fiscal years, shall remain in effect 
in accordance with the terms and conditions of such agreements 
(including designation and agreement time periods). 
SEC. 228. Any public housing agency designated as a Moving 
to Work agency pursuant to section 239 of division L of Public 
Law 114–113 (42 U.S.C. 1437f note; 129 Stat. 2897) may, upon 
such designation, use funds (except for special purpose funding, 
including special purpose vouchers) previously allocated to any such 
public housing agency under section 8 or 9 of the United States 
Housing Act of 1937, including any reserve funds held by the 
public housing agency or funds held by the Department of Housing 
and Urban Development, pursuant to the authority for use of section 
8 or 9 funding provided under such section and section 204 of 
title II of the Departments of Veterans Affairs and Housing and 
Urban Development and Independent Agencies Appropriations Act, 
1996 (Public Law 104–134; 110 Stat. 1321–28), notwithstanding 
the purposes for which such funds were appropriated. 
SEC. 229. None of the amounts made available by this Act 
may be used to prohibit any public housing agency under receiver-
ship or the direction of a Federal monitor from applying for, 
receiving, or using funds made available under the heading ‘‘Public 
Housing Fund’’ for competitive grants to evaluate and reduce lead- 
based paint hazards in this Act or that remain available and not 
awarded from prior Acts, or be used to prohibit a public housing 
agency from using such funds to carry out any required work 
pursuant to a settlement agreement, consent decree, voluntary 
agreement, or similar document for a violation of the lead safe 
housing or lead disclosure rules. 
SEC. 230. For fiscal year 2026, if the Secretary determines 
or has determined, for any prior formula grant allocation adminis-
tered by the Secretary through the Offices of Public and Indian 
Housing, Community Planning and Development, or Housing, that 
a recipient received an allocation greater than the amount such 
recipient should have received for a formula allocation cycle pursu-
ant to applicable statutes and regulations, the Secretary may adjust 
for any such funding error in the next applicable formula allocation