of the housing, by the veterans the housing is 
intended to serve; 
(G) the extent to which the applicant has 
ensured that a service coordinator will be em-
ployed or otherwise retained for the housing, 
who has the managerial capacity and responsi-
bility for carrying out the actions described in 
clauses (i) and (ii) of subsection (h)(2)(A); and 
(H) such other factors as the Secretary de-
termines to be appropriate to ensure that funds 
made available under this section are used ef-
fectively; 
(2) preference in such selection for applications 
to the extent that the dwelling units in the proposed 
housing to be reserved for occupancy only by veteran 
families exceed the percentage of such units required 
under subsection (d)(1); and 
(3) criteria appropriate to consider the need for 
supportive housing for veteran families in nonmetro-
politan areas and by Indian tribes. 
(h) PROVISION OF SUPPORTIVE SERVICES TO VET-
ERAN FAMILIES.— 
(1) IN GENERAL.—Owners of housing assisted 
under this section shall ensure that veterans and 
veteran families residing in any housing assisted 
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under this section are provided a range of services 
tailored to their needs. The Secretary of Housing 
and Urban Development shall coordinate with the 
Secretary of Veterans Affairs and owners of such 
housing to facilitate the provision of such services. 
Such services may be provided at the site of such 
housing or off-site, and may include services for— 
(A) outreach; 
(B) health (including counseling, mental 
health, substance abuse, post-traumatic stress 
disorder, and traumatic brain injury) diagnosis 
and treatment; 
(C) habilitation and rehabilitation; 
(D) case management; 
(E) daily living; 
(F) personal financial planning; 
(G) transportation; 
(H) vocation; 
(I) employment and training; 
(J) education; 
(K) assistance in obtaining veterans bene-
fits and public benefits; 
(L) assistance in obtaining income support; 
(M) assistance in obtaining health insur-
ance; 
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(N) fiduciary and representative payee; 
(O) legal aid; 
(P) child care; 
(Q) housing counseling; 
(R) service coordination; and 
(S) other services necessary for maintain-
ing independent living. 
(2) LOCAL COORDINATION OF SERVICES.— 
(A) IN GENERAL.—The Secretary of Hous-
ing and Urban Development shall coordinate 
with the Secretary of the Department of Vet-
erans Affairs to ensure that owners of housing 
assisted under this section have the managerial 
capacity to— 
(i) assess on an ongoing basis the 
service needs of residents; 
(ii) coordinate the provision of sup-
portive services and tailor such services to 
the individual needs of residents; and 
(iii) seek on a continuous basis new 
sources of assistance to ensure the long- 
term provision of supportive services. 
(B) CLASSIFICATION OF COSTS.—Any cost 
associated with this subsection relating to the 
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coordination of services shall be an eligible cost 
under subsections (c)(2). 
(i) DEVELOPMENT COST LIMITATIONS.— 
(1) IN GENERAL.—The Secretary shall periodi-
cally establish reasonable development cost limita-
tions by market area for various types and sizes of 
supportive housing for low-income veteran families 
by publishing a notice of the cost limitations in the 
Federal Register. 
(2) CONSIDERATIONS.—The cost limitations es-
tablished under paragraph (1) shall reflect— 
(A) the cost of construction, reconstruc-
tion, or moderate or substantial rehabilitation 
of supportive housing for low-income veteran 
families that meets applicable State and local 
housing and building codes; 
(B) the cost of movables necessary to the 
basic operation of the housing, as determined 
by the Secretary; 
(C) the cost of special design features nec-
essary to make the housing accessible to low-in-
come veteran families; 
(D) the cost of community space necessary 
to accommodate the provision of supportive 
services to veteran families; 
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(E) if the housing is newly constructed, the 
cost of meeting the energy efficiency standards 
promulgated by the Secretary in accordance 
with section 109 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 
12709); and 
(F) the cost of land, including necessary 
site improvement. 
(3) USE OF DATA.—In establishing development 
cost limitations for a given market area under this 
subsection, the Secretary shall use data that reflect 
currently prevailing costs of construction, recon-
struction, or moderate or substantial rehabilitation, 
and land acquisition in the area. 
(4) COMMUNITY SPACE.—For purposes of para-
graph (2), a community space shall include space for 
cafeterias or dining halls, community rooms or build-
ings, workshops, child care, adult day health facili-
ties or other outpatient health facilities, or other es-
sential service facilities. 
(5) COMMERCIAL
FACILITIES.—Neither this 
section nor any other provision of law may be con-
strued as prohibiting or preventing the location and 
operation, in a project assisted under this section, of 
commercial facilities for the benefit of residents of 
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the project and the community in which the project 
is located, except that assistance made available 
under this section may not be used to subsidize any 
such commercial facility. 
(6) ACQUISITION.—In the case of existing hous-
ing and related facilities to be acquired, the cost lim-
itations shall include— 
(A) the cost of acquiring such housing; 
(B) the cost of rehabilitation, alteration, 
conversion, or improvement, including the mod-
erate or substantial rehabilitation thereof; and 
(C) the cost of the land on which the hous-
ing and related facilities are located. 
(7) ANNUAL
ADJUSTMENTS.—The Secretary 
shall adjust the cost limitation not less than annu-
ally to reflect changes in the general level of con-
struction, reconstruction, and moderate and substan-
tial rehabilitation costs. 
(8) INCENTIVES FOR SAVINGS.— 
(A) SPECIAL HOUSING ACCOUNT.— 
(i) IN GENERAL.—The Secretary shall 
use the development cost limitations estab-
lished under paragraph (1) or (6) to cal-
culate the amount of financing to be made 
available to individual owners. 
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(ii) ACTUAL DEVELOPMENTAL COSTS 
LESS
THAN
FINANCING.—Owners 
who 
incur actual development costs that are 
less than the amount of financing shall be 
entitled to retain 50 percent of the savings 
in a special housing account. 
(iii) 
BONUS
FOR
ENERGY
EFFI-
CIENCY.—The 
percentage 
established 
under clause (ii) shall be increased to 75 
percent for owners which add energy effi-
ciency features which— 
(I) exceed the energy efficiency 
standards promulgated by the Sec-
retary in accordance with section 109 
of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 
12709); 
(II) substantially reduce the life- 
cycle cost of the housing; and 
(III) reduce gross rent require-
ments. 
(B) USES.—The special housing account 
established under subparagraph (A) may be 
used— 
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(i) to provide services to residents of 
the housing or funds set aside for replace-
ment reserves; or 
(ii) for such other purposes as deter-
mined by the Secretary. 
(9) DESIGN FLEXIBILITY.—The Secretary shall, 
to the extent practicable, give owners the flexibility 
to design housing appropriate to their location and 
proposed resident population within broadly defined 
parameters. 
(10) USE OF FUNDS FROM OTHER SOURCES.— 
An owner shall be permitted voluntarily to provide 
funds from sources other than this section for amen-
ities and other features of appropriate design and 
construction suitable for supportive housing under 
this section if the cost of such amenities is— 
(A) not financed with the advance; and 
(B) is not taken into account in deter-
mining the amount of Federal assistance or of 
the rent contribution of tenants. 
(j) TENANT SELECTION.— 
(1) IN GENERAL.—An owner shall adopt writ-
ten tenant selection procedures that are— 
(A) satisfactory to the Secretary and which 
are— 
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(i) consistent with the purpose of im-
proving housing opportunities for veteran 
families and any units reserved for use 
pursuant to subsection (d)(2); and 
(ii) reasonably related to program eli-
gibility and an applicant’s ability to per-
form the obligations of the lease; and 
(B) compliant with subtitle C of title VI of 
the Housing and Community Development Act 
of 1992 (42 U.S.C. 13601 et seq.) and any reg-
ulations issued under such subtitle. 
(2) NOTIFICATION
OF
REJECTION.—Owners 
shall promptly notify in writing any rejected appli-
cant of the grounds for any rejection. 
(3) INFORMATION REGARDING HOUSING.— 
(A) IN
GENERAL.—The Secretary shall 
provide, to the Secretary of Veterans Affairs 
and the Secretary of Labor, information regard-
ing the availability of the housing assisted 
under this section. 
(B) SHARING OF INFORMATION WITH AD-
DITIONAL
AGENCIES.—Within 30 days of re-
ceipt of the information, the Secretary of Vet-
erans Affairs and Secretary of Labor shall pro-
vide such information to agencies in the area of 
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the housing that receive assistance from the 
Department of Veterans Affairs and the De-
partment of Labor for providing medical care, 
housing, supportive services or employment and 
training services to homeless veterans. 
(k) MISCELLANEOUS PROVISIONS.— 
(1) TECHNICAL
ASSISTANCE.—The Secretary 
shall make available appropriate technical assistance 
to ensure that prospective applicants are able to par-
ticipate more fully in the program carried out under 
this section. 
(2) CIVIL RIGHTS COMPLIANCE.—Each owner 
shall certify, to the satisfaction of the Secretary, 
that assistance made available under this section will 
be conducted and administered in conformity with 
title VI of the Civil Rights Act of 1964 (42 U.S.C. 
2000a et seq.), the Fair Housing Act (42 U.S.C. 
3601 et seq.), and other Federal, State, and local 
laws prohibiting discrimination and promoting equal 
opportunity. 
(3) OWNER DEPOSIT.— 
(A) IN GENERAL.—The Secretary shall re-
quire an owner of housing, assisted under this 
section, to deposit an amount not to exceed 
$25,000 in a special escrow account to ensure 
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the owner’s commitment to the housing. Such 
amount shall be used only to cover operating 
deficits during the first three years of oper-
ations and shall not be used to cover construc-
tion shortfalls or inadequate initial project rent-
al assistance amounts. 
(B) REDUCTION OF REQUIREMENT.—The 
Secretary may reduce or waive the owner de-
posit specified under subparagraph (A) for indi-
vidual applicants if the Secretary finds that 
such waiver or reduction is necessary to achieve 
the purposes of this section and the applicant 
demonstrates to the satisfaction of the Sec-
retary that it has the capacity to manage and 
maintain the housing in accordance with this 
section. 
(4) NOTICE OF APPEAL.— 
(A) IN GENERAL.—The Secretary shall no-
tify an owner not less than 30 days prior to 
canceling any reservation of assistance provided 
under this section. 
(B) APPEAL.— 
(i) FILING
DEADLINE.—During the 
30-day period following the receipt of any 
notice required under subparagraph (A), 
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an owner may appeal the proposed can-
cellation. 
(ii) TIMING OF DECISION.—Any ap-
peal undertaken under clause (i), including 
review by the Secretary, shall be completed 
not later than 45 days after the appeal is 
filed. 
(5) LABOR.— 
(A) IN
GENERAL.—The Secretary shall 
take such action as may be necessary to ensure 
that all laborers and mechanics employed by 
contractors and subcontractors in the construc-
tion of housing with 12 or more units assisted 
under this section shall be paid wages at rates 
not less than the rates prevailing in the locality 
involved for the corresponding classes of labor-
ers and mechanics employed on construction of 
a similar character, as determined by the Sec-
retary of Labor in accordance with subchapter 
IV of chapter 31 of title 40, United States 
Code. 
(B) EXEMPTION.—Subparagraph (A) shall 
not apply to any individual who— 
(i) performs services for which the in-
dividual volunteered; 
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(ii) does not receive compensation for 
such services or is paid expenses, reason-
able benefits, or a nominal fee for such 
services; and 
(iii) is not otherwise employed at any 
time in the construction work. 
(6) ACCESS TO RESIDUAL RECEIPTS.— 
(A) IN GENERAL.—The Secretary shall au-
thorize the owner of a housing project assisted 
under this section to use any residual receipts 
held for the project in excess of $500 per unit 
(or in excess of such other amount prescribed 
by the Secretary based on the needs of the 
project) for activities to retrofit and renovate 
the project as described under section 802(d)(3) 
of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8011(d)(3)) or to pro-
vide supportive services to residents of the 
project. 
(B) REPORT.—Any owner that uses resid-
ual receipts under this paragraph shall submit 
to the Secretary a report, not less than annu-
ally, describing the uses of the residual receipts. 
(C) DETERMINATION OF AMOUNT.—In de-
termining the amount of project rental assist-
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ance under subsection (c)(2) of this section to 
be provided to a project, the Secretary may 
take into consideration the residual receipts 
held for the project only if, and to the extent 
that, excess residual receipts are not used under 
this paragraph. 
(7) OCCUPANCY
STANDARDS
AND
OBLIGA-
TIONS.—Each owner shall operate housing assisted 
under this section in compliance with subtitle C of 
title VI of the Housing and Community Develop-
ment Act of 1992 (42 U.S.C. 13601 et seq.) and 
any regulations issued under such subtitle. 
(8) USE OF PROJECT RESERVES.— 
(A) IN GENERAL.—Amounts for project re-
serves for a project assisted under this section 
may be used for costs, subject to reasonable 
limitations as the Secretary determines appro-
priate, for reducing the number of dwelling 
units in the project. 
(B) 
APPROVAL
OF
SECRETARY
RE-
QUIRED.—Any use described in subparagraph 
(A) of amounts for project reserves for a 
project assisted under this section shall be sub-
ject to the approval of the Secretary to ensure 
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that such use is designed to retrofit units that 
are currently obsolete or unmarketable. 
(9) REPAYMENT OF ASSISTANCE AND PREVEN-
TION OF UNDUE BENEFITS.— 
(A) REPAYMENT.—If a recipient, or a 
project sponsor receiving funds from the recipi-
ent, receives assistance under subsection (b) as 
a loan pursuant to paragraph (1) of such sub-
section for the construction, acquisition, or re-
habilitation of supportive housing for veteran 
families and the project ceases to provide such 
permanent housing, the Secretary shall require 
the recipient, or such project sponsor, to repay 
the following percentage of such loan principal 
amount: 
(i) In the case of a project that ceases 
to be used for such supportive housing be-
fore the expiration of the 10-year period 
beginning upon commencement of the op-
eration of the project, 100 percent. 
(ii) In the case of a project that 
ceases to be used for such supportive hous-
ing on or after the expiration of the 10- 
year period beginning upon commencement 
of the operation of the project, but before 
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the expiration of the 20-year period begin-
ning upon such commencement, 75 per-
cent. 
(iii) In the case of a project that 
ceases to be used for such supportive hous-
ing on or after the expiration of the 20- 
year period beginning upon commencement 
of the operation of the project, but before 
the expiration of the 30-year period begin-
ning upon such commencement, 50 per-
cent. 
(iv) In the case of a project that 
ceases to be used for such supportive hous-
ing on or after the expiration of the 30- 
year period beginning upon commencement 
of the operation of the project, but before 
the expiration of the 40-year period begin-
ning upon such commencement, 25 per-
cent. 
(B) PREVENTION OF UNDUE BENEFITS.— 
Except as provided in paragraph (C), if any 
property is used for a project that receives as-
sistance under subsection (b) as a loan pursu-
ant to paragraph (2) of such subsection for the 
construction, acquisition or rehabilitation of 
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supportive housing for veteran families, and the 
sale or other disposition of the property occurs 
before the expiration of the 40-year period be-
ginning upon commencement of the operation of 
the project, the recipient (or the project sponsor 
receiving funds from the recipient) shall comply 
with such terms and conditions as the Secretary 
may prescribe to prevent the recipient (or such 
project sponsor) from unduly benefitting from 
such sale or disposition. 
(C) EXCEPTION.—A recipient, or a project 
sponsor receiving funds from the recipient, shall 
not be required to make repayments, and com-
ply with the terms and conditions, required 
under subparagraph (A) or (B) if— 
(i) the sale or disposition of the prop-
erty used for the project results in the use 
of the property for the direct benefit of 
veteran families; 
(ii) all of the proceeds of the sale or 
disposition are used to provide permanent 
housing for veteran families meeting the 
requirements of this section; or 
(iii) project-based rental assistance or 
operating cost assistance from any Federal 
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program or an equivalent State or local 
program is no longer made available and 
the project is meeting applicable perform-
ance standards, provided that the portion 
of the project that had benefitted from 
such assistance continues to meet the ten-
ant income and rent restrictions for low-in-
come units under section 42(g) of the In-
ternal Revenue Code of 1986. 
(10) CONTINUED
ELIGIBILITY
OF
VETERAN 
FAMILIES.—A veteran family residing in supportive 
housing assisted under this section may not be con-
sidered to lose its status as such a family for pur-
poses of eligibility for continued occupancy in such 
housing due to the death of any veteran member of 
the family, including the sole veteran member of the 
family. 
(l) DEFINITIONS.—In this section, the following defi-
nitions shall apply: 
(1) EXTREMELY LOW-INCOME VETERAN FAM-
ILY.—The term ‘‘extremely low-income veteran fam-
ily’’ means a veteran family whose income does not 
exceed 30 percent of the median income for the 
area, as determined by the Secretary with adjust-
ments for smaller and larger families, except that 
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the Secretary may establish an income ceiling higher 
or lower than 30 percent of the median for the area 
on the basis of the Secretary’s findings that such 
variations are necessary because of prevailing levels 
of construction costs or fair market rents (as deter-
mined under section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f)), or unusually high 
or low family incomes. 
(2) LOW-INCOME VETERAN FAMILY.—The term 
‘‘low-income veteran family’’ means a veteran family 
whose income does not exceed 80 percent of the me-
dian income for the area, as determined by the Sec-
retary with adjustments for smaller and larger fami-
lies, except that the Secretary may establish an in-
come ceiling higher or lower than 80 percent of the 
median for the area on the basis of the Secretary’s 
findings that such variations are necessary because 
of prevailing levels of construction costs or fair mar-
ket rents (as determined under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f)), or unusually high or low family incomes. 
The term includes a very low- or extremely low-in-
come veteran family. 
(3) OWNER.—The term ‘‘owner’’ means a per-
son or entity that is for-profit developer that receives 
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assistance under this section to develop and operate 
supportive housing for veteran families. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development, 
except where specifically provided otherwise. 
(5) STATE.—The term ‘‘State’’ includes the 
several States, the District of Columbia, the Com-
monwealth of Puerto Rico, and the possessions of 
the United States. 
(6) SUPPORTIVE HOUSING FOR VETERAN FAMI-
LIES.—The term ‘‘supportive housing for veteran 
families’’ means housing that is designed to accom-
modate the provision of supportive services that are 
expected to be needed, either initially or over the 
useful life of the housing, by the veteran families 
that the housing is intended to serve. 
(7) VETERAN.—The term ‘‘veteran’’ has the 
meaning given the term in section 101 of title 38, 
United States Code. 
(8) VETERAN
FAMILY.—The term ‘‘veteran 
family’’ includes a veteran who is a single person, a 
family (including families with children) whose head 
of household (or whose spouse) is a veteran, and one 
or more veterans living together with 1 or more per-
sons. 
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(9) VERY LOW-INCOME VETERAN FAMILY.—The 
term ‘‘very low-income veteran family’’ means a vet-
eran family whose income does not exceed 50 per-
cent of the median income for the area, as deter-
mined by the Secretary with adjustments for smaller 
and larger families, except that the Secretary may 
establish an income ceiling higher or lower than 50 
percent of the median for the area on the basis of 
the Secretary’s findings that such variations are nec-
essary because of prevailing levels of construction 
costs or fair market rents (as determined under sec-
tion 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f)), or unusually high or low family in-
comes. The term includes an extremely low-income 
veteran family. 
(m) FUNDING.— 
(1) USE OF TARP FUNDS.—Using the authority 
available under sections 101(a) and 115(a) of divi-
sion A of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5211(a), 5225(a)), the Secretary 
of the Treasury shall transfer to the Secretary of 
Housing and Urban Development $2,425,000,000, 
and the Secretary of Housing and Urban Develop-
ment shall use such amount only for assistance for 
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supportive housing for veteran families under this 
section, as follows: 
(A) AVAILABILITY
FOR
OBLIGATION.—Of 
such amount, $485,000,000 shall be available 
for such assistance in each of fiscal years 2010, 
2011, 2012, 2013, and 2014. 
(B) USE FOR ZERO-INTEREST LOANS AND 
PROJECT RENTAL ASSISTANCE.—Of the amount 
made available under subparagraph (A) in each 
of the fiscal years referred to in such subpara-
graph— 
(i) $375,000,000 shall be available for 
zero-interest loans under subsection (c)(1); 
and 
(ii) $110,000,000 shall be available 
for project rental assistance under sub-
section (c)(2). 
(2) REDUCTION
OF
TARP
AUTHORIZATION 
LIMIT TO OFFSET COSTS.—Paragraph (3) of section 
115(a) of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5225) is amended by inserting 
‘‘as such amount is reduced by $2,425,000,000’’ 
after ‘‘$700,000,000,000,’’. 
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SEC. 
3. 
COMPREHENSIVE 
HOUSING 
AFFORDABILITY 
STRATEGIES. 
(a) IN GENERAL.—Section 105 of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 12705) 
is amended— 
(1) in subsection (b)(1), by inserting ‘‘veterans 
(as such term is defined in section 101 of title 38, 
United States Code) of such varying incomes,’’ after 
‘‘acquired immunodeficiency syndrome,’’; 
(2) in subsection (b)(20), by striking ‘‘and serv-
ice’’ and inserting ‘‘veterans service, and other serv-
ice’’; and 
(3) in subsection (e)(1), by inserting ‘‘veterans 
(as such term is defined in section 101 of title 38, 
United States Code),’’ after ‘‘homeless persons,’’. 
(b) CONSOLIDATED PLANS.—The Secretary of Hous-
ing and Urban Development shall revise the regulations 
relating to submission of consolidated plans (part 91 of 
title 24, Code of Federal Regulations) in accordance with 
the amendments made by subsection (a) of this section 
to require inclusion of appropriate information relating to 
veterans and veterans service agencies in all such plans. 
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SEC. 4. COMPTROLLER GENERAL STUDY ON THE AVAIL-
ABILITY OF CREDIT FOR VETERANS OF OPER-
ATION IRAQI FREEDOM AND OPERATION EN-
DURING FREEDOM. 
(a) STUDY REQUIRED.—The Comptroller General 
shall carry out a study on the availability of credit for 
veterans of Operation Iraqi Freedom and Operation En-
during Freedom. As part of the study, the Comptroller 
General shall determine whether the home loan guarantee 
program administered by the Secretary is helpful to such 
veterans. 
(b) REPORT TO CONGRESS.—Not later than the expi-
ration of the 180-day period beginning on the date of the 
enactment of this Act, the Comptroller General shall sub-
mit to Congress a report on the study required under sub-
section (a). 
SEC. 5. INACTIVE RESERVISTS FORECLOSURE PREVEN-
TION. 
(a) MORTGAGE ASSISTANCE PROGRAM.— 
(1) IN GENERAL.—The Secretary of Housing 
and Urban Development shall, to the extent amounts 
are made available for mortgage assistance under 
this section, carry out a program under this section 
to provide mortgage assistance through the provision 
of grants and loans for direct mortgage payments on 
behalf of eligible households. 
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(2) ELIGIBLE
MORTGAGES.—Mortgage assist-
ance under this section may be provided only with 
respect to a mortgage that meets all of the following 
requirements: 
(A) MORTGAGOR
REQUIREMENTS.—The 
mortgagor under the mortgage— 
(i) is a member of an eligible house-
hold that resides in the property that is 
subject to the mortgage; and 
(ii) has not, during the 24-month pe-
riod ending upon the date that the mort-
gagor submits an application for assistance 
under this section, been more than 60 days 
in arrears under any mortgage for residen-
tial property. 
(B) 
DWELLING
REQUIREMENTS.—The 
property that is subject to the mortgage is— 
(i) designed principally as a residen-
tial property; and 
(ii) the primary place of residence of 
the mortgagor and the mortgagor’s house-
hold. 
(b) ASSISTANCE PAYMENTS.— 
(1) MONTHLY
DIRECT
PAYMENT.—The Sec-
retary shall design and implement the program 
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under this section in a manner that provides that 
any amounts paid by the Secretary for mortgage as-
sistance with respect to an eligible mortgage are 
paid on a monthly basis directly to the mortgagee or 
other servicer of the mortgage. 
(2) PERIOD OF ASSISTANCE.— 
(A) IN
GENERAL.—Payment under the 
program under this section with respect to an 
eligible mortgage may be made only for sched-
uled payments due under the terms of the 
mortgage (as in effect pursuant to any applica-
ble provisions of law) during the period that a 
member of the eligible household who is an eli-
gible member of the Armed Forces is serving on 
active duty for a period of more than 30 days 
in the Armed Forces. 
(B) EXTENDED DEPLOYMENTS.—The Sec-
retary shall ensure that in determining the 
amount of assistance to be provided with re-
spect to an eligible mortgage and the period for 
which such assistance will be provided, suffi-
cient amounts for such assistance shall be re-
served under the program under this section to 
provide for unpredictability and extensions in 
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the period of active duty of eligible members of 
the Armed Forces. 
(3) DETERMINATION OF AMOUNT OF ASSIST-
ANCE.—Subject to paragraph (4), the Secretary 
shall determine the amount of assistance to be pro-
vided with respect to an eligible mortgage based 
upon criteria established by the Secretary, by regula-
tion. 
(4) LIMITATIONS
ON
AMOUNT
OF
ASSIST-
ANCE.—The amount of assistance provided under 
the program under this section with respect to any 
eligible mortgage may not exceed the following 
amounts: 
(A) MONTHLY AMOUNT.—With respect to 
the assistance payment for any single month, 
the amount due to be paid for such month 
under the terms of the mortgage (as in effect 
pursuant to any applicable provisions of law) 
for principal, interest, mortgage insurance for 
the mortgage, and any scheduled deposit in an 
escrow account for the purpose of ensuring pay-
ment of taxes, insurance, assessments, and 
other charges with respect to the property sub-
ject to the mortgage. 
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(B) AGGREGATE AMOUNT.—An aggregate 
amount assistance over the entire period under 
paragraph (2) that assistance is provided with 
respect to the mortgage, which shall be estab-
lished by the Secretary taking into consider-
ation the total amount made available for the 
program under this section. 
(5) PREVENTION OF DOUBLE PAYMENTS.—The 
Secretary shall take appropriate actions to ensure 
that, in the case of any payment on an eligible mort-
gage paid by a mortgagor for any period for which 
payment has already been made under the program 
under this section, the mortgagor or other servicer 
of the mortgage shall return such payment within a 
reasonable period of time or shall immediately credit 
such payment toward amortization of the principal 
obligation under the mortgage, and promptly notify 
the mortgagor of such credit. 
(c) REPAYMENT OF ASSISTANCE.— 
(1) GRANT ASSISTANCE; NO REPAYMENT.— 
(A) IN
GENERAL.—Any assistance pro-
vided under the program under this section 
with respect to any eligible mortgage during 
any period during which the annual income of 
household of the mortgagor, as determined by 
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the Secretary, does not exceed 200 percent of 
the poverty line applicable to a family of the 
size involved shall be in the form of a grant 
and, except as provided in subparagraph (B), 
the Secretary may not require repayment of any 
such amounts. 
(B) REPAYMENT
IN
CASES
OF
FORE-
CLOSURE.—If the mortgagee for any eligible 
mortgage for which assistance payments are 
made pursuant to this subsection forecloses on 
the mortgage, takes legal action to enforce the 
mortgage obligation, or otherwise recovers pos-
session of any security of the mortgage as a re-
sult of default on the obligation of the mort-
gage, the Secretary shall terminate payment of 
assistance under this section with respect to the 
mortgage and shall treat any assistance pre-
viously provided with respect to the mortgage 
as assistance in the form of a loan pursuant to 
paragraph (2). 
(2) 
LOAN
ASSISTANCE; 
REPAYMENT
RE-
QUIRED.—Any assistance provided under the pro-
gram under this section with respect to any eligible 
mortgage during any period during which the annual 
income of household of the mortgagor, as deter-
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mined by the Secretary, exceeds 200 percent of the 
poverty line applicable to a family of the size in-
volved shall be in the form of a loan, as follows: 
(A) NO INTEREST.—Such loan shall not 
bear any interest. 
(B) 10-YEAR TERM.—Such loan shall have 
a term to maturity of 10 years, which shall not 
commence until the period of assistance under 
subsection (b)(2) with respect to mortgage has 
terminated. 
(C) SECURITY.—Repayment of such loan 
shall be secured by a lien on the residential 
property that is subject to the eligible mortgage 
for which the assistance under this section was 
provided under the loan, in the aggregate 
amount of such loan assistance provided. Such 
lien shall be held by the Secretary and shall be 
subordinate to other mortgages and other se-
cured liens on the property in effect upon the 
date that assistance under the program under 
this section is first provided for the mortgage, 
and to any Federal tax lien, but shall be supe-
rior to any other lien. 
(D) AGREEMENT.—The terms of such loan 
shall be set forth in a written agreement, as the 
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Secretary considers appropriate, between the 
Secretary and the mortgagor. 
(d) APPLICATION FOR ASSISTANCE.— 
(1) IN GENERAL.—To be eligible for mortgage 
assistance under this section, a mortgagor for an eli-
gible mortgage shall submit an application for such 
assistance in such form and manner as the Sec-
retary shall require, which shall provide such infor-
mation regarding the eligible mortgage as the Sec-
retary shall require, including information sufficient 
for the Secretary to comply with paragraph (2), and 
shall include a financial statement disclosing all in-
come of each member of the household of the mort-
gagor regardless of source. An application for such 
assistance may be submitted before the eligible 
member of the Armed Forces who is a member of 
the eligible household begins active duty described in 
subsection (g)(2). 
(2) 
NOTIFICATION
TO
MORTGAGEE
AND 
SERVICER.—Upon submission of an application 
under paragraph (1), the Secretary shall notify the 
mortgagee and servicer, if the mortgagee is not the 
servicer, of the eligible mortgage of the submission 
of the application for assistance under this section. 
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(3) INCOME
INFORMATION.—The Secretary 
shall require that each such application include a 
certification by the mortgagor for the eligible mort-
gage of the anticipated income of the household of 
the mortgagor during the anticipated period of as-
sistance under this section, which, in the case of an 
application described in the last sentence of para-
graph (1), may be based on household income in the 
month before commencement of the active duty of 
the eligible member of the Armed Forces, less any 
such income attributable to such eligible member, 
plus the expected military pay of such eligible mem-
ber. The Secretary may make a determination re-
garding compliance of the income of a mortgagor’s 
household with the requirements under paragraphs 
(1)(A) and (2) of subsection (c) based upon such a 
certification, subject to such reviews as the Sec-
retary shall, by regulation, provide. 
(4) 
EFFECT
OF
MISREPRESENTATION.—A 
mortgagor who is determined to have intentionally 
misrepresented any financial information in connec-
tion with the filing of an application for assistance 
under this section may be denied assistance and re-
quired to immediately repay any amount of assist-
ance already received, and the mortgagee may, at 
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any time thereafter, take any legal action to enforce 
the mortgage, if appropriate. 
(5) REVIEW AND DETERMINATION.— 
(A) IN GENERAL.—The Secretary shall re-
view each application submitted for assistance 
under this section and make a determination 
regarding the eligibility for assistance of the 
mortgage specified in the application not later 
than 30 days after receipt of the application of 
the mortgagor, and shall notify the mortgagor 
and the mortgagee and servicer of approval or 
disapproval of such application not later than 
30 days after making the determination regard-
ing approval. 
(B) FAILURE
TO
MAKE
DETERMINA-
TION.—If the Secretary fails to make a deter-
mination regarding eligibility for assistance of a 
mortgage during the 30-day period specified in 
subparagraph (A) or fails to provide the notice 
regarding such determination as required under 
such paragraph, the mortgage shall be consid-
ered for purposes of this section to have been 
approved as eligible for assistance upon the 
date that the application for the mortgage was 
submitted to the Secretary. 
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(e) COORDINATION WITH OTHER AGENCIES AND EN-
TITIES.— 
(1) PUBLICITY.—The Secretary shall take such 
action as may be necessary to ensure that eligible 
households and eligible members of the Armed 
Forces are aware of and informed about the avail-
ability of and requirements for mortgage assistance 
under this section, which may include consulting and 
coordinating appropriate activities with the Sec-
retary of Defense, the Federal financial institutions 
regulatory agencies, financial institutions regulated 
by such regulatory agencies, other mortgage lenders, 
the Federal National Mortgage Association, the Fed-
eral Home Loan Mortgage Corporation, and mort-
gage counseling agencies. 
(2) IMPLEMENTATION.—The Secretary shall 
consider using States, State or local agencies (in-
cluding housing and housing finance agencies), 
mortgage lenders and other financial institutions, 
and other entities to conduct some or all of the func-
tions and responsibilities involved in carrying out the 
program for mortgage assistance under this section 
and may enter into agreements with such entities to 
provide for such entities to carry out such functions 
and responsibilities as the Secretary considers ap-
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propriate to ensure that such assistance is provided 
in an effective and efficient manner. 
(f) SAVINGS CLAUSE.—This section may not be con-
strued to alter, affect, or limit any provision of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 501 et 
seq.). 
(g) DEFINITIONS.—For the purposes of this section, 
the following definitions apply: 
(1) ACTIVE DUTY.—The terms ‘‘active duty’’ 
and ‘‘active duty for a period of more than 30 days’’ 
have the meanings given such terms in section 
101(d) of title 10, United States Code. 
(2) 
ELIGIBLE
MEMBER
OF
THE
ARMED 
FORCES.—The term ‘‘eligible member of the Armed 
Forces’’ means a member of the Armed Forces who, 
while a member of the Individual Ready Reserve or 
the inactive National Guard, is serving on active 
duty pursuant to a call or order to active duty for 
a period of more than 30 days. 
(3) ELIGIBLE MORTGAGE.—The term ‘‘eligible 
mortgage’’ means any mortgage that meets the re-
quirements of subsection (a)(2) for assistance under 
this section. 
(4) ELIGIBLE HOUSEHOLD.—The term ‘‘eligible 
household’’ means a household that— 
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(A) contains a member who is an eligible 
member of the Armed Forces; and 
(B) has been determined by the Secretary 
to be eligible for mortgage assistance under this 
section. 
(5) FEDERAL FINANCIAL INSTITUTIONS REGU-
LATORY AGENCIES.—The term ‘‘Federal financial in-
stitutions regulatory agencies’’ means the Office of 
the Comptroller of the Currency, the Board of Gov-
ernors of the Federal Reserve System, the Federal 
Deposit Insurance Corporation, the Office of Thrift 
Supervision, and the National Credit Union Admin-
istration. 
(6) 
HOUSEHOLD.—The 
term 
‘‘household’’ 
means a mortgagor, the mortgagor’s spouse, chil-
dren residing in the same residence as the mort-
gagor, and any other person living in such residence 
that is declared by the mortgagor as a dependent for 
Federal income tax purposes. 
(7) INCOME.—The term ‘‘income’’ means, with 
respect to the household of an eligible mortgagor, 
the aggregate income from the all sources of each 
member of the household, as determined in accord-
ance with criteria prescribed by the Secretary. 
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(8) MORTGAGE; MORTGAGEE; MORTGAGOR.— 
The terms ‘‘mortgage’’, ‘‘mortgagee’’, and ‘‘mort-
gagor’’ have the meanings given such terms in sec-
tion 201 of the National Housing Act (12 U.S.C. 
1707). 
(9) POVERTY LINE.—The term ‘‘poverty line’’ 
has the meaning given such term in section 673(2) 
of the Omnibus Budget Reconciliation Act of 1981, 
including any revision required by such section. 
(10) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Housing and Urban Develop-
ment. 
(11) SERVICER.—The term ‘‘servicer’’ has the 
meaning given such term in section 6(i) of the Real 
Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2605(i)). 
(h) FUNDING.— 
(1) USE OF TARP FUNDS.—Using the authority 
available under sections 101(a) and 115(a) of divi-
sion A of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5211(a), 5225(a)), the Secretary 
of the Treasury shall transfer to the Secretary of 
Housing and Urban Development $25,000,000, and 
the Secretary of Housing and Urban Development 
shall use such amount only for mortgage assistance 
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under this section, including costs (as such term is 
defined in section 502 of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661a) of loans under sub-
section (c)(2) of this section, except that of such 
amount $5,000,000 shall be available for such as-
sistance in each of fiscal years 2010, 2011, 2012, 
2013, and 2014. 
(2) REDUCTION
OF
TARP
AUTHORIZATION 
LIMIT TO OFFSET COSTS.—Paragraph (3) of section 
115(a) of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5225), as amended by section 
3(m)(2) of this Act, is further amended by inserting 
‘‘, as such amount is reduced by $25,000,000’’ after 
‘‘$700,000,000,000,’’. 
(i) REGULATIONS.—Not later than the expiration of 
the 180-day period beginning on the date of the enactment 
of this Act, the Secretary, in consultation with the Federal 
financial institutions regulatory agencies, shall issue such 
regulations as may be necessary to carry out this Act, 
which shall provide for the implementation of the mort-
gage assistance program under this Act upon the expira-
tion of such period. 
Æ 
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