578 
the needs of low-income seniors to enable them to 
remain in their primary residence, of which no less 
than $10,000,000 shall be available to meet such 
needs in communities with substantial rural popu-
lations: Provided further, That for funds made avail-
able for such grants in the preceding proviso or 
under this heading or the heading ‘‘Housing for the 
Elderly’’ in prior Acts, all eligible activities, except 
those that would alter the existing footprint of a 
structure or improvement in a floodplain or a wet-
land, are exempt from environmental review and not 
subject to the Federal laws and authorities cited in 
section 58.5 of title 24, Code of Federal Regula-
tions; and 
(3) up to $2,000,000 in total of the amounts 
made available under paragraph (2) may be trans-
ferred to the heading ‘‘Research and Technology’’ 
for the purposes of conducting research and studies 
and for use in accordance with the provisos under 
that heading for non-competitive agreements: 
Provided further, That for purposes of environmental re-
view, pursuant to the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) and other provisions of 
law that further the purposes of such Act, a grant under 
the healthy homes initiative, or the lead technical studies 
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579 
program, or other demonstrations or programs under this 
heading or under prior appropriations Acts for such pur-
poses under this heading, or under the heading ‘‘Housing 
for the Elderly’’ under prior Appropriations Acts, shall be 
considered to be funds for a special project for purposes 
of section 305(c) of the Multifamily Housing Property 
Disposition Reform Act of 1994: Provided further, That 
each applicant for a grant or cooperative agreement under 
this heading shall certify adequate capacity that is accept-
able to the Secretary to carry out the proposed use of 
funds pursuant to a notice of funding opportunity: Pro-
vided further, That amounts made available under the fifth 
paragraph under this heading by the Full-Year Continuing 
Appropriations and Extensions Act, 2025 (Public Law 
119–4) shall be transferred to and merged with the 
amounts provided under the fifth paragraph under the 
heading ‘‘Public Housing Fund’’ in this Act and 
prioritized for qualified projects where the primary pur-
pose is radon testing and mitigation, except any transfer 
pursuant to this provision shall retain its original avail-
ability: Provided further, That amounts made available 
under this heading, in this or prior appropriations Acts, 
still remaining available, may be used for any purpose 
under this heading notwithstanding the purpose for which 
such amounts were appropriated if a program competition 
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580 
is undersubscribed and there are other program competi-
tions under this heading that are oversubscribed. 
OFFICE OF INSPECTOR GENERAL 
For necessary salaries and expenses of the Office of 
Inspector General in carrying out the Inspector General 
Act of 1978, as amended, $144,500,000: Provided, That 
the Inspector General shall have independent authority 
over all personnel and acquisition issues within this office. 
GENERAL PROVISIONS—DEPARTMENT OF HOUSING AND 
URBAN DEVELOPMENT 
(INCLUDING RESCISSIONS) 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 201. Fifty percent of the amounts of budget au-
thority, or in lieu thereof 50 percent of the cash amounts 
associated with such budget authority, that are recaptured 
from projects described in section 1012(a) of the Stewart 
B. McKinney Homeless Assistance Amendments Act of 
1988 (42 U.S.C. 1437f note) shall be rescinded or in the 
case of cash, shall be remitted to the Treasury, and such 
amounts of budget authority or cash recaptured and not 
rescinded or remitted to the Treasury shall be used by 
State housing finance agencies or local governments or 
local housing agencies with projects approved by the Sec-
retary of Housing and Urban Development for which set-
tlement occurred after January 1, 1992, in accordance 
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581 
with such section. Notwithstanding the previous sentence, 
the Secretary may award up to 15 percent of the budget 
authority or cash recaptured and not rescinded or remitted 
to the Treasury to provide project owners with incentives 
to refinance their project at a lower interest rate. 
SEC. 202. None of the funds made available by this 
Act may be used to investigate or prosecute under the Fair 
Housing Act any otherwise lawful activity engaged in by 
one or more persons, including the filing or maintaining 
of a nonfrivolous legal action, that is engaged in solely 
for the purpose of achieving or preventing action by a Gov-
ernment official or entity, or a court of competent jurisdic-
tion. 
SEC. 203. Except as explicitly provided in law, any 
grant, cooperative agreement or other assistance made 
pursuant to title II of this Act shall be made on a competi-
tive basis and in accordance with section 102 of the De-
partment of Housing and Urban Development Reform Act 
of 1989 (42 U.S.C. 3545). 
SEC. 204. Funds of the Department of Housing and 
Urban Development subject to the Government Corpora-
tion Control Act or section 402 of the Housing Act of 
1950 shall be available, without regard to the limitations 
on administrative expenses, for legal services on a contract 
or fee basis, and for utilizing and making payment for 
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582 
services and facilities of the Federal National Mortgage 
Association, Government National Mortgage Association, 
Federal Home Loan Mortgage Corporation, Federal Fi-
nancing Bank, Federal Reserve banks or any member 
thereof, Federal Home Loan banks, and any insured bank 
within the meaning of the Federal Deposit Insurance Cor-
poration Act, as amended (12 U.S.C. 1811–1). 
SEC. 205. Unless otherwise provided for in this Act 
or through a reprogramming of funds, no part of any ap-
propriation for the Department of Housing and Urban 
Development shall be available for any program, project 
or activity in excess of amounts set forth in the budget 
estimates submitted to Congress. 
SEC. 206. Corporations and agencies of the Depart-
ment of Housing and Urban Development which are sub-
ject to the Government Corporation Control Act are here-
by authorized to make such expenditures, within the limits 
of funds and borrowing authority available to each such 
corporation or agency and in accordance with law, and to 
make such contracts and commitments without regard to 
fiscal year limitations as provided by section 104 of such 
Act as may be necessary in carrying out the programs set 
forth in the budget for 2026 for such corporation or agen-
cy except as hereinafter provided: Provided, That collec-
tions of these corporations and agencies may be used for 
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583 
new loan or mortgage purchase commitments only to the 
extent expressly provided for in this Act (unless such loans 
are in support of other forms of assistance provided for 
in this or prior appropriations Acts), except that this pro-
viso shall not apply to the mortgage insurance or guaranty 
operations of these corporations, or where loans or mort-
gage purchases are necessary to protect the financial in-
terest of the United States Government. 
SEC. 207. None of the funds made available by this 
title may be used for an audit of the Government National 
Mortgage Association that makes applicable requirements 
under the Federal Credit Reform Act of 1990 (2 U.S.C. 
661 et seq.). 
SEC. 208. (a) Notwithstanding any other provision 
of law, subject to the conditions listed under this section, 
for fiscal years 2026 and 2027, the Secretary of Housing 
and Urban Development may authorize the transfer of 
some or all project-based assistance, debt held or insured 
by the Secretary and statutorily required low-income and 
very low-income use restrictions if any, associated with one 
or more multifamily housing project or projects to another 
multifamily housing project or projects. 
(b) PHASED
TRANSFERS.—Transfers of project- 
based assistance under this section may be done in phases 
to accommodate the financing and other requirements re-
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584 
lated to rehabilitating or constructing the project or 
projects to which the assistance is transferred, to ensure 
that such project or projects meet the standards under 
subsection (c). 
(c) The transfer authorized in subsection (a) is sub-
ject to the following conditions: 
(1) NUMBER AND BEDROOM SIZE OF UNITS.— 
(A) For occupied units in the transferring 
project: The number of low-income and very 
low-income units and the configuration (i.e., 
bedroom size) provided by the transferring 
project shall be no less than when transferred 
to the receiving project or projects and the net 
dollar amount of Federal assistance provided to 
the transferring project shall remain the same 
in the receiving project or projects. The Sec-
retary, upon determination of good cause, in-
cluding a determination that there will be no 
loss of assistance to currently assisted house-
holds, may authorize a different number of such 
units or a change in such configuration, or 
both, at the receiving project or projects in the 
event there is a transfer of use restrictions 
without an associated transfer of project-based 
assistance to the receiving project. The Sec-
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585 
retary shall publish a notice in the Federal Reg-
ister for public comment containing the criteria 
for determinations of good cause no less than 
60 days before the effective date of such notice. 
(B) For unoccupied units in the transfer-
ring project: The Secretary may authorize a re-
duction in the number of dwelling units in the 
receiving project or projects to allow for a re-
configuration of bedroom sizes to meet current 
market demands, as determined by the Sec-
retary and provided there is no increase in the 
project-based assistance budget authority. 
(2) The transferring project shall, as deter-
mined by the Secretary, be either physically obsolete 
or economically nonviable, or be reasonably expected 
to become economically nonviable when complying 
with State or Federal requirements for community 
integration and reduced concentration of individuals 
with disabilities. 
(3) The receiving project or projects shall meet 
or exceed applicable physical standards established 
by the Secretary. 
(4) The owner or mortgagor of the transferring 
project shall notify and consult with the tenants re-
siding in the transferring project and provide a cer-
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586 
tification of approval by all appropriate local govern-
mental officials. 
(5) The tenants of the transferring project who 
remain eligible for assistance to be provided by the 
receiving project or projects shall not be required to 
vacate their units in the transferring project or 
projects until new units in the receiving project are 
available for occupancy. 
(6) The Secretary determines that this transfer 
is in the best interest of the tenants. 
(7) If either the transferring project or the re-
ceiving project or projects meets the condition speci-
fied in subsection (d)(2)(A), any lien on the receiv-
ing project resulting from additional financing ob-
tained by the owner shall be subordinate to any 
FHA-insured mortgage lien transferred to, or placed 
on, such project by the Secretary, except that the 
Secretary may waive this requirement upon deter-
mination that such a waiver is necessary to facilitate 
the financing of acquisition, construction, and/or re-
habilitation of the receiving project or projects. 
(8) If the transferring project meets the re-
quirements of subsection (d)(2), the owner or mort-
gagor of the receiving project or projects shall exe-
cute and record either a continuation of the existing 
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587 
use agreement or a new use agreement for the 
project where, in either case, any use restrictions in 
such agreement are of no lesser duration than the 
existing use restrictions. 
(9) The transfer does not increase the cost (as 
defined in section 502 of the Congressional Budget 
Act of 1974 (2 U.S.C. 661a)) of any FHA-insured 
mortgage, except to the extent that appropriations 
are provided in advance for the amount of any such 
increased cost. 
(d) For purposes of this section— 
(1) the terms ‘‘low-income’’ and ‘‘very low-in-
come’’ shall have the meanings provided by the stat-
ute and/or regulations governing the program under 
which the project is insured or assisted; 
(2) the term ‘‘multifamily housing project’’ 
means housing that meets one of the following con-
ditions— 
(A) housing that is subject to a mortgage 
insured under the National Housing Act; 
(B) housing that has project-based assist-
ance attached to the structure including 
projects undergoing mark to market debt re-
structuring under the Multifamily Assisted 
Housing Reform and Affordability Housing Act; 
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588 
(C) housing that is assisted under section 
202 of the Housing Act of 1959 (12 U.S.C. 
1701q); 
(D) housing that is assisted under section 
202 of the Housing Act of 1959 (12 U.S.C. 
1701q), as such section existed before the en-
actment of the Cranston-Gonzales National Af-
fordable Housing Act; 
(E) housing that is assisted under section 
811 of the Cranston-Gonzales National Afford-
able Housing Act (42 U.S.C. 8013); or 
(F) housing or vacant land that is subject 
to a use agreement; 
(3) 
the 
term 
‘‘project-based 
assistance’’ 
means— 
(A) assistance provided under section 8(b) 
of the United States Housing Act of 1937 (42 
U.S.C. 1437f(b)); 
(B) assistance for housing constructed or 
substantially rehabilitated pursuant to assist-
ance provided under section 8(b)(2) of such Act 
(as such section existed immediately before Oc-
tober 1, 1983); 
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590 
(6) the term ‘‘Secretary’’ means the Secretary 
of Housing and Urban Development. 
(e) RESEARCH REPORT.—The Secretary shall con-
duct an evaluation of the transfer authority under this sec-
tion, including the effect of such transfers on the oper-
ational efficiency, contract rents, physical and financial 
conditions, and long-term preservation of the affected 
properties. 
SEC. 209. No assistance shall be provided under sec-
tion 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f) to any individual who— 
(1) is enrolled as a student at an institution of 
higher education (as defined under section 102 of 
the Higher Education Act of 1965 (20 U.S.C. 
1002)); 
(2) is under 24 years of age; 
(3) is not a veteran; 
(4) is unmarried; 
(5) does not have a dependent child; 
(6) is not a person with disabilities, as such 
term is defined in section 3(b)(3)(E) of the United 
States 
Housing 
Act 
of 
1937 
(42 
U.S.C. 
1437a(b)(3)(E)) and was not receiving assistance 
under such section 8 as of November 30, 2005; 
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591 
(7) is not a youth who left foster care at age 
14 or older and is at risk of becoming homeless; and 
(8) is not otherwise individually eligible, or has 
parents who, individually or jointly, are not eligible, 
to receive assistance under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f). 
SEC. 210. The funds made available for Native Alas-
kans under paragraph (1) under the heading ‘‘Native 
American Programs’’ in title II of this Act shall be allo-
cated to the same Native Alaskan housing block grant re-
cipients that received funds in fiscal year 2005, and only 
such recipients shall be eligible to apply for funds made 
available under paragraph (2) of such heading. 
SEC. 211. Notwithstanding any other provision of 
law, in fiscal year 2026, in managing and disposing of any 
multifamily property that is owned or has a mortgage held 
by the Secretary of Housing and Urban Development, and 
during the process of foreclosure on any property with a 
contract for rental assistance payments under section 8 
of the United States Housing Act of 1937 (42 U.S.C. 
1437f) or any other Federal programs, the Secretary shall 
maintain any rental assistance payments under section 8 
of the United States Housing Act of 1937 and other pro-
grams that are attached to any dwelling units in the prop-
erty. To the extent the Secretary determines, in consulta-
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592 
tion with the tenants and the local government that such 
a multifamily property owned or having a mortgage held 
by the Secretary is not feasible for continued rental assist-
ance 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 (in this section 
‘‘MAHRAA’’) (42 U.S.C. 1437f note), and (2) environ-
mental conditions that cannot be remedied in a cost-effec-
tive fashion, the Secretary may, in consultation with the 
tenants of that property, contract for project-based rental 
assistance payments with an owner or owners of other ex-
isting housing properties, or provide other rental assist-
ance. The Secretary shall also take appropriate steps to 
ensure that project-based contracts remain in effect prior 
to foreclosure, subject to the exercise of contractual abate-
ment remedies to assist relocation of tenants for imminent 
major threats to health and safety after written notice to 
and informed consent of the affected tenants and use of 
other available remedies, such as partial abatements or re-
ceivership. After disposition of any multifamily property 
described in this section, the contract and allowable rent 
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593 
levels on such properties shall be subject to the require-
ments under section 524 of MAHRAA. 
SEC. 212. Public housing agencies that own and oper-
ate 400 or fewer public housing units may elect to be ex-
empt from any asset management requirement imposed by 
the Secretary in connection with the operating fund rule: 
Provided, That an agency seeking a discontinuance of a 
reduction of subsidy under the operating fund formula 
shall not be exempt from asset management requirements. 
SEC. 213. With respect to the use of amounts pro-
vided in this Act and in future Acts for the operation, cap-
ital improvement, and management of public housing as 
authorized by sections 9(d) and 9(e) of the United States 
Housing Act of 1937 (42 U.S.C. 1437g(d), (e)), the Sec-
retary shall not impose any requirement or guideline relat-
ing to asset management that restricts or limits in any 
way the use of capital funds for central office costs pursu-
ant to paragraph (1) or (2) of section 9(g) of the United 
States Housing Act of 1937 (42 U.S.C. 1437g(g)(1), (2)): 
Provided, That a public housing agency may not use cap-
ital funds authorized under section 9(d) for activities that 
are eligible under section 9(e) for assistance with amounts 
from the operating fund in excess of the amounts per-
mitted under paragraph (1) or (2) of section 9(g). 
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594 
SEC. 214. No official or employee of the Department 
of Housing and Urban Development shall be designated 
as an allotment holder unless the Office of the Chief Fi-
nancial Officer has determined that such allotment holder 
has implemented an adequate system of funds control and 
has received training in funds control procedures and di-
rectives. The Chief Financial Officer shall ensure that 
there is a trained allotment holder for each HUD appro-
priation under the accounts ‘‘Executive Offices’’, ‘‘Admin-
istrative Support Offices’’, ‘‘Program Offices’’, ‘‘Govern-
ment National Mortgage Association—Guarantees of 
Mortgage-Backed Securities Loan Guarantee 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 deci-
sion, for any program or discretionary fund administered 
by the Secretary that is to be competitively awarded avail-
able only on the Internet at the appropriate Government 
website or through other electronic media, as determined 
by the Secretary. 
SEC. 216. Payment of attorney fees in program-re-
lated litigation shall be paid from the individual program 
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595 
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 ‘‘Adminis-
trative 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 condi-
tions, as determined by the Secretary, and comply with 
any standards under applicable State or local laws, rules, 
ordinances, or regulations relating to the physical condi-
tion 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 
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596 
(2) fails to certify in writing to the Secretary 
within 3 days that all Exigent Health and Safety de-
ficiencies, 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 non-
insured 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 as-
sisted under section 8(o)(13) of such Act (42 U.S.C. 
1437f(o)(13)) or to public housing units assisted with cap-
ital 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 Es-
tate Assessment Center (‘‘REAC’’) inspection, the Sec-
retary shall provide the owner with a Notice of Default 
with a specified timetable, determined 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 adminis-
trator. 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— 
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597 
(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 applicable properties, as des-
ignated by the Secretary, with priority given to the 
tenants of the property affected by the penalty; 
(C) abate the section 8 contract, including par-
tial abatement, 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 proce-
dures, who will be obligated to promptly make all re-
quired repairs and to accept renewal of the assist-
ance 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 re-
quiring the owner to cure all project deficiencies; 
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598 
(H) work with the owner, lender, or other re-
lated party to stabilize the property in an attempt 
to preserve the property through compliance, trans-
fer of ownership, or an infusion of capital provided 
by a third-party that requires time to effectuate; or 
(I) take any other regulatory or contractual 
remedies available as deemed necessary and appro-
priate by the Secretary. 
(d) The Secretary shall take appropriate steps to en-
sure 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 consultation with the tenants 
and the local government, that the property is not feasible 
for continued rental assistance payments under such sec-
tion 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 pay-
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599 
ments with an owner or owners of other existing 
housing properties, or provide other rental assist-
ance. 
(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 fail-
ing physical inspection scores or have received an unsatis-
factory 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 Depart-
ment of Housing and Urban Development is taking 
to protect tenants of such identified properties; and 
(3) any administrative or legislative rec-
ommendations to further improve the living condi-
tions at properties covered under a housing assist-
ance 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 re-
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port 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 sec-
tion 8 (only with respect to the tenant-based rental assist-
ance 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, in-
cluding 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 pub-
lic 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, ter-
minate, 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 se-
lected to receive a grant award is announced or is notified 
of such changes by the Department or its offices: Pro-
vided, That such notification shall list each grant award 
and project description by State and congressional district. 
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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 in-
sure, 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, mu-
nicipality, 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 gen-
eral local government as a metropolitan city (as defined 
in section 102 of the Housing and Community Develop-
ment 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 appropriated, 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, evalua-
tion, or statistical purposes, and that are unexpended at 
the time of completion of a contract, grant, or cooperative 
agreement, may be deobligated and shall immediately be-
come available and may be reobligated in that fiscal year 
or the subsequent fiscal year for the research, evaluation, 
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602 
or statistical purposes for which the amounts are made 
available to that Office subject to reprogramming require-
ments 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 perform-
ance, special act, or spot, for any employee of the Depart-
ment of Housing and Urban Development subject to ad-
ministrative discipline (including suspension from work), 
in this fiscal year, but this prohibition shall not be effec-
tive prior to the effective date of any such administrative 
discipline or after any final decision over-turning such dis-
cipline. 
SEC. 225. With respect to grant amounts awarded 
under the heading ‘‘Homeless Assistance Grants’’ for fis-
cal 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 to-
ward meeting the recipient’s matching requirements, pro-
vided 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 activities under subtitle 
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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 prom-
ise 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 divi-
sion 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 pur-
pose 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 Depart-
ment 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 
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604 
of Veterans Affairs and Housing and Urban Development 
and Independent Agencies Appropriations Act, 1996 
(Public Law 104–134; 110 Stat. 1321–28), notwith-
standing the purposes for which such funds were appro-
priated. 
SEC. 229. None of the amounts made available by 
this Act may be used to prohibit any public housing agen-
cy under receivership 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 pur-
suant to a settlement agreement, consent decree, vol-
untary 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 de-
termines or has determined, for any prior formula grant 
allocation administered by the Secretary through the Of-
fices 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 
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may adjust for any such funding error in the next applica-
ble formula allocation cycle by (a) offsetting each such re-
cipient’s formula allocation (if eligible for a formula alloca-
tion in the next applicable formula allocation cycle) by the 
amount of any such funding error, and (b) reallocating 
any available balances that are attributable to the offset 
to the recipient or recipients that would have been allo-
cated additional funds in the formula allocation cycle in 
which any such error occurred (if such recipient or recipi-
ents are eligible for a formula allocation in the next appli-
cable formula allocation cycle) in an amount proportionate 
to such recipient’s eligibility under the next applicable for-
mula allocation cycle: Provided, That all offsets and re-
allocations from such available balances shall be recorded 
against funds available for the next applicable formula al-
location cycle: Provided further, That the term ‘‘next appli-
cable formula allocation cycle’’ means the first formula al-
location cycle for a program that is reasonably available 
for correction following such a Secretarial determination: 
Provided further, That if, upon request by a recipient and 
giving consideration to all Federal resources available to 
the recipient for the same grant purposes, the Secretary 
determines that the offset in the next applicable formula 
allocation cycle would critically impair the recipient’s abil-
ity to accomplish the purpose of the formula grant, the 
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Secretary may adjust for the funding error across two or 
more formula allocation cycles. 
SEC. 231. The Secretary may transfer from amounts 
made available for salaries and expenses under this title 
(excluding amounts made available under the heading 
‘‘Office of Inspector General’’) to the heading ‘‘Informa-
tion Technology Fund’’ for unforeseen information tech-
nology needs, including for additional development, mod-
ernization, and enhancement, to remain available until 
September 30, 2028: Provided, That the total amount of 
such transfers shall not exceed $5,000,000: Provided fur-
ther, That this transfer authority shall not be used to fund 
information technology projects or activities that have 
known out-year development, modernization, or enhance-
ment costs in excess of $500,000: Provided further, That 
this transfer authority shall not be used to allocate costs 
across offices for broader departmental information tech-
nology needs: Provided further, That the Secretary shall 
provide notification to the House and Senate Committees 
on Appropriations no fewer than 10 business days in ad-
vance of any such transfer. 
SEC. 232. The Secretary shall comply with all process 
requirements, including public notice and comment, when 
seeking to revise any annual contributions contract: Pro-
vided, That the Secretary shall provide public housing au-
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607 
thorities not less than 60 days for public comment, and 
the Secretary shall consider and respond to submitted 
comments. 
SEC. 233. None of the funds made available to the 
Department of Housing and Urban Development in this 
or prior Acts may be used to issue a solicitation or accept 
bids on any solicitation that is substantially equivalent to 
the draft solicitation entitled ‘‘Housing Assistance Pay-
ments (HAP) Contract Support Services (HAPSS)’’ post-
ed to www.Sam.gov on July 27, 2022. 
SEC. 234. (a) Any unobligated balances from 
amounts made available under the heading, ‘‘Community 
Development Fund’’ in chapter 9 of title II of the Emer-
gency Supplemental Appropriations Act for Defense, the 
Global War on Terror, and Hurricane Recovery, 2006 
(Public Law 109–234) that were transferred to ‘‘Manage-
ment and Administration, Salaries and Expenses’’ are 
hereby permanently rescinded. 
(b) Any unobligated balances included under Treas-
ury Appropriation Fund Symbol 86 X 0108 from amounts 
transferred to the Department of Housing and Urban De-
velopment from amounts made available under the head-
ing, ‘‘Unanticipated Needs’’ in chapter 8 of title I of the 
Emergency Supplemental Appropriations Act of 1994 
(Public Law 103–211) are hereby permanently rescinded. 
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(c) Any unobligated balances included under Treas-
ury Appropriation Fund Symbol 86 X 0148, 86–2023/ 
2027–0483 and 86 X 0163 are hereby permanently re-
scinded. 
(d) Of the unobligated balances from amounts in-
cluded under Treasury Appropriation Fund Symbol 86 X 
0304, $5,036,988.73 are hereby permanently rescinded. 
(e) Of the unobligated balances from appropriations 
made available under the heading ‘‘Community Develop-
ment Fund’’ prior to fiscal year 2011, $176,688.49 in 
Economic Development Initiative grant funds and 
$336,275.98 in Special Purpose Grant funds are hereby 
rescinded. 
(f) Of the unobligated balances from amounts made 
available under the heading ‘‘Assisted Housing Inspec-
tions and Risk Assessments’’, in the Full-Year Continuing 
Appropriations and Extensions Act, 2025 (Public Law 
119–4), $22,000,000 are hereby permanently rescinded. 
(g) Of the unobligated balances from amounts in-
cluded under Treasury Appropriation Fund Symbol 86 X 
0313, $1.74 is hereby permanently rescinded. 
(h) $5,200,000 of amounts previously made available 
for expenditure from the Manufactured Housing Fees 
Trust Fund are hereby permanently rescinded. 
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609 
SEC. 235. None of the amounts made available in this 
or prior Acts may be used to consider family self-suffi-
ciency achievement metrics (FAM) in determining funding 
awards for programs receiving family self-sufficiency pro-
gram coordinator funding provided in this or prior Acts 
except to provide bonus awards as expressly made avail-
able in this or prior Acts for self-sufficiency programs as-
signed a ranking of performance category 1 based on their 
publicly available FAM scores. 
SEC. 236. The Secretary may, upon a finding that 
a waiver or alternative requirement is necessary for the 
effective delivery and administration of funds made avail-
able for new incremental voucher assistance or renewals 
for the mainstream program and the family unification 
program (including the foster youth to independence pro-
gram) in this and prior Acts, waive or specify alternative 
requirements, other than requirements related to tenant 
rights and protections, rent setting, fair housing, non-
discrimination, labor standards, and the environment, 
for— 
(1) section 8(o)(6)(A) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(6)(A)) 
and regulatory provisions related to the administra-
tion of waiting lists, local preferences, and the initial 
term and extensions of tenant-based vouchers; and 
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(2) section 8(x)(2) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f(x)(2)) regarding 
the timing of referral of youth leaving foster care. 
SEC. 237. The Secretary shall fulfill their responsibil-
ities to enforce the Fair Housing Act (42 U.S.C. 3601 
et seq.): Provided, That none of the funds made available 
by this Act may be used by the Department of Housing 
and Urban Development to direct a grantee to undertake 
specific changes to existing zoning laws as part of carrying 
out the interim final rule entitled ‘‘Affirmatively Fur-
thering Fair Housing Revisions’’ (90 Fed. Reg. 11020 
(March 3, 2025)). 
SEC. 238. The whistleblower protections in section 
4712 of title 41, United States Code, shall apply to any 
contract, subcontract, grant, subgrant, or personal serv-
ices contract funded from amounts made available in this 
or prior Acts (including carryover and recaptures), regard-
less of when the agreement was executed. 
SEC. 239. (a) For fiscal years 2026 through 2028, 
upon request from the owner, the Secretary of Housing 
and Urban Development (‘‘Secretary’’) may forgive or re-
structure the terms of any indebtedness relating to any 
remaining principal and interest under financial assistance 
made available under section 201 of the Housing and 
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