(d) COMPETITION CRITERIA.— 
(1) ELIGIBLE ENTITIES.—For the funds dis-
tributed competitively, eligible entities shall be 
States, units of general local government, nonprofit 
entities, for-profit entities, and consortia of eligible 
entities that demonstrate capacity to use funding 
within the period of this program. 
(2) SELECTION CRITERIA.—In selecting grant-
ees, the Secretary shall ensure that grantees are in 
areas with the greatest number and percentage of 
residential and commercial foreclosures and other 
market needs data, as determined by the Secretary. 
Additional award criteria shall include demonstrated 
grantee capacity to execute projects involving acqui-
sition and rehabilitation or redevelopment of fore-
closed residential and commercial property and 
neighborhood stabilization, leverage, knowledge of 
market conditions and of effective stabilization ac-
tivities to address identified conditions, and any ad-
ditional factors determined by the Secretary. 
(3) MINIMUM GRANT SIZE.—The Secretary may 
establish a minimum grant size. 
(4) PUBLICATION OF CRITERIA.—The Secretary 
shall publish competition criteria for any grants 
awarded under this Act not later than 60 days after 
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appropriation of funds, and applications shall be due 
to the Secretary within 120 days. 
SEC. 4. USE OF FUNDS. 
(a) OBLIGATION
AND
EXPENDITURE.—The Sec-
retary shall obligate all funding within 150 days of enact-
ment of this Act. Any eligible entity that receives amounts 
pursuant to this Act shall expend all funds allocated to 
it within three years of the date the funds become avail-
able to the grantee for obligation. Furthermore, the Sec-
retary shall by notice establish intermediate expenditure 
benchmarks at the one and two year dates from the date 
the funds become available to the grantee for obligation. 
(b) PRIORITIES.— 
(1) JOB CREATION.—Each grantee or eligible 
entity shall describe how its proposed use of funds 
will prioritize job creation, and secondly, will address 
goals to stabilize neighborhoods, reverse vacancy, or 
increase or stabilize residential and commercial 
property values. 
(2) TARGETING.—Any State or unit of general 
local government that receives formula amounts pur-
suant to this Act shall, in distributing and targeting 
such amounts give priority emphasis and consider-
ation to those metropolitan areas, metropolitan cit-
ies, urban areas, rural areas, low- and moderate-in-
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come areas, and other areas with the greatest need, 
including those— 
(A) with the greatest percentage of home 
foreclosures; 
(B) identified as likely to face a significant 
rise in the rate of residential or commercial 
foreclosures; and 
(C) with higher than national average un-
employment rate. 
(3) LEVERAGE.—Each grantee or eligible entity 
shall describe how its proposed use of funds will le-
verage private funds. 
(c) ELIGIBLE USES.—Amounts made available under 
this Act may be used to— 
(1) establish financing mechanisms for the pur-
chase and redevelopment of abandoned and fore-
closed-upon properties, including such mechanisms 
as soft-seconds, loan loss reserves, and shared-equity 
loans for low- and moderate-income homebuyers; 
(2) purchase and rehabilitate properties that 
have been abandoned or foreclosed-upon, in order to 
sell, rent, or redevelop such properties; 
(3) establish and operate land banks for prop-
erties that have been abandoned or foreclosed-upon; 
(4) demolish blighted structures; 
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(5) redevelop abandoned, foreclosed, demol-
ished, or vacant properties; and 
(6) engage in other activities, as determined by 
the Secretary through notice, that are consistent 
with the goals of creating jobs, stabilizing neighbor-
hoods, reversing vacancy reduction, and increasing 
or stabilizing residential and commercial property 
values. 
SEC. 5. LIMITATIONS. 
(a) ON PURCHASES.—Any purchase of a property 
under this Act shall be at a price not to exceed its current 
market value, taking into account its current condition. 
(b) REHABILITATION.—Any rehabilitation of an eligi-
ble property under this Act shall be to the extent necessary 
to comply with applicable laws, and other requirements re-
lating to safety, quality, marketability, and habitability, in 
order to sell, rent, or redevelop such properties or provide 
a renewable energy source or sources for such properties. 
(c) SALE OF HOMES.—If an abandoned or foreclosed- 
upon home is purchased, redeveloped, or otherwise sold 
to an individual as a primary residence, then such sale 
shall be in an amount equal to or less than the cost to 
acquire and redevelop or rehabilitate such home or prop-
erty up to a decent, safe, marketable, and habitable condi-
tion. 
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(d) ON DEMOLITION OF PUBLIC HOUSING.—Public 
housing, as defined in section 3(b)(6) of the United States 
Housing Act of 1937, may not be demolished with funds 
under this Act. 
(e) ON DEMOLITION ACTIVITIES.—No more than 10 
percent of any grant made under this Act may be used 
for demolition activities unless the Secretary determines 
that such use represents an appropriate response to local 
market conditions. 
(f) ON USE
OF FUNDS
FOR NON-RESIDENTIAL 
PROPERTY.—No more than 30 percent of any grant made 
under this Act may be used for eligible activities under 
paragraphs (1), (2), and (5) of section 4(c) that will not 
result in residential use of the property involved unless 
the Secretary determines that such use represents an ap-
propriate response to local market conditions. 
SEC. 6. RULES OF CONSTRUCTION. 
(a) IN GENERAL.—Except as otherwise provided by 
this Act, amounts appropriated, revenues generated, or 
amounts otherwise made available to eligible entities under 
this Act shall be treated as though such funds were com-
munity development block grant funds under title I of the 
Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.). 
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(b) NO MATCH.—No matching funds shall be re-
quired in order for an eligible entity to receive any 
amounts under this Act. 
(c) TENANT PROTECTIONS.—An eligible entity re-
ceiving a grant under this Act shall comply with the 14th, 
17th, 18th, 19th, 20th, 21st, 22nd, and 23rd provisos of 
the heading ‘‘Community Planning and Development— 
Community Development Fun’’ in title XII of Division A 
of the American Recovery and Reinvestment Act of 2009 
(Public Law 111–5, 123 Stat. 218–19), as amended by 
section 1497(b)(2) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (Public Law 111–203, 124 
Stat. 2211). 
(d) VICINITY HIRING.—An eligible entity receiving a 
grant under this Act shall comply with section 1497(a)(8) 
of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Public Law 111–203, 129 Stat. 2210). 
SEC. 7. AUTHORITY TO SPECIFY ALTERNATIVE REQUIRE-
MENTS. 
(a) IN GENERAL.—In administering the program 
under this Act, the Secretary may specify alternative re-
quirements to any provision under title I of the Housing 
and Community Development Act of 1974 or under title 
I of the Cranston-Gonzalez National Affordable Housing 
Act of 1990 (except for those provisions in these laws re-
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lated to fair housing, nondiscrimination, labor standards, 
and the environment) for the purpose of expediting and 
facilitating the use of funds under this Act. 
(b) NOTICE.—The Secretary shall provide written no-
tice of intent to the public via internet to exercise the au-
thority to specify alternative requirements under sub-
section (a). 
(c) LOW- AND MODERATE-INCOME REQUIREMENT.— 
(1) IN GENERAL.—Notwithstanding the author-
ity of the Secretary under subsection (a)— 
(A) all of the formula and competitive 
grantee funds appropriated or otherwise made 
available under this Act shall be used with re-
spect to individuals and families whose income 
does not exceed 120 percent of area median in-
come; and 
(B) not less than 25 percent of the for-
mula and competitive grantee funds appro-
priated or otherwise made available under this 
Act shall be used for the purchase and redevel-
opment of eligible properties that will be used 
to house individuals or families whose incomes 
do not exceed 50 percent of area median in-
come. 
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(2) RECURRENT
REQUIREMENT.—The Sec-
retary shall, by rule or order, ensure, to the max-
imum extent practicable and for the longest feasible 
term, that the sale, rental, or redevelopment of 
abandoned and foreclosed-upon homes and residen-
tial properties under this Act remain affordable to 
individuals or families described in paragraph (1). 
SEC. 8. NATIONWIDE DISTRIBUTION OF RESOURCES. 
Notwithstanding any other provision of this Act, each 
State shall receive not less than $20,000,000 of formula 
funds. 
SEC. 9. LIMITATION ON USE OF FUNDS WITH RESPECT TO 
EMINENT DOMAIN. 
No State or unit of general local government may use 
any amounts received pursuant to this Act to fund any 
project that seeks to use the power of eminent domain, 
unless eminent domain is employed only for a public use, 
which shall not be construed to include economic develop-
ment that primarily benefits private entities. 
SEC. 10. LIMITATION ON DISTRIBUTION OF FUNDS. 
(a) IN GENERAL.—None of the funds made available 
under this Act shall be distributed to— 
(1) an organization which has been indicted for 
a violation under Federal law relating to an election 
for Federal office; or 
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(2) an organization which employs applicable 
individuals. 
(b) APPLICABLE INDIVIDUALS DEFINED.—In this 
section, the term ‘‘applicable individual’’ means an indi-
vidual who— 
(1) is— 
(A) employed by the organization in a per-
manent or temporary capacity; 
(B) contracted or retained by the organiza-
tion; or 
(C) acting on behalf of, or with the express 
or apparent authority of, the organization; and 
(2) has been indicted for a violation under Fed-
eral law relating to an election for Federal office. 
SEC. 11. RENTAL HOUSING PREFERENCES. 
Each State and local government receiving formula 
amounts shall establish procedures to create preferences 
for the development of affordable rental housing. 
SEC. 12. JOB CREATION. 
If a grantee chooses to use funds to create jobs by 
establishing and operating a program to maintain eligible 
neighborhood properties, not more than 10 percent of any 
grant may be used for that purpose. 
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SEC. 13. PROGRAM SUPPORT AND CAPACITY BUILDING. 
The Secretary may use up to 0.75 percent of the 
funds appropriated for capacity building of and support 
for eligible entities and grantees undertaking neighbor-
hood stabilization programs, staffing, training, technical 
assistance, technology, monitoring, travel, enforcement, 
research, and evaluation activities, subject to the following 
requirements: 
(1) Funds set aside for the purposes of this sec-
tion shall remain available until September 30, 
2018. 
(2) Any funds made available under this section 
and used by the Secretary for personnel expenses re-
lated to administering funding under this subpara-
graph shall be transferred to ‘‘Personnel Compensa-
tion and Benefits, Community Planning and Devel-
opment’’. 
(3) Any funds made available under this section 
and used by the Secretary for training or other ad-
ministrative expenses shall be transferred to ‘‘Ad-
ministration, Operations, and Management, Commu-
nity Planning and Development’’ for non-personnel 
expenses. 
(4) Any funds made available under this section 
and used by the Secretary for technology shall be 
transferred to ‘‘Working Capital Fund’’. 
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