I 
116TH CONGRESS 
1ST SESSION H. R. 2295 
To provide additional funding for the public housing Capital Fund for large 
public housing agencies, for mortgage foreclosure mitigation assistance, 
and for incremental rental assistance vouchers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 12, 2019 
Ms. CLARKE of New York (for herself, Mr. ESPAILLAT, Ms. MENG, and Ms. 
OCASIO-CORTEZ) introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To provide additional funding for the public housing Capital 
Fund for large public housing agencies, for mortgage 
foreclosure mitigation assistance, and for incremental 
rental assistance vouchers, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Hardest Hit Housing 
Act of 2019’’. 
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SEC. 2. CAPITAL FUND AMOUNTS FOR LARGE PUBLIC 
HOUSING AGENCIES. 
(a) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to any amounts authorized to be appropriated for for-
mula grants to public housing agencies from the Capital 
Fund pursuant to section 9(d)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437g(d)(2)), there is 
authorized to be appropriated $4,000,000,000 for each of 
fiscal years 2019 through 2023 for the Public Housing 
Capital Fund Program under section 9(d) of the United 
States Housing Act of 1937 (42 U.S.C. 1437g(b)). 
(b) ELIGIBLE PUBLIC HOUSING AGENCIES.—Any 
amounts appropriated pursuant to this section shall be 
used by the Secretary of Housing and Urban Development 
only for grants to public housing agencies that own or ad-
minister more than 10,000 public housing dwelling units. 
(c) ELIGIBLE USES.—Funds from grants made with 
amounts appropriated pursuant to this section may be 
used only for eligible capital activities under section 
9(d)(1) of the United States Housing Act of 1937 (42 
U.S.C. 1437g(d)(1)). Section 9(g)(3) of such Act shall not 
apply to any such grant funds. 
SEC. 3. ASSISTANCE TO NEIGHBORWORKS FOR MORTGAGE 
FORECLOSURE MITIGATION ACTIVITIES. 
There is authorized to be appropriated $5,000,000, 
for each of fiscal years 2019 through 2023 for assistance 
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to the Neighborhood Reinvestment Corporation for mort-
gage foreclosure mitigation activities, under the following 
terms and conditions: 
(1) 
MORTGAGE
FORECLOSURE
MITIGATION 
COUNSELING.— 
(A) The Neighborhood Reinvestment Cor-
poration (in this section referred to as the 
‘‘NRC’’) may make grants under this para-
graph to counseling intermediaries approved by 
the Department of Housing and Urban Devel-
opment (in this section referred to as ‘‘HUD’’) 
(with match to be determined by NRC based on 
affordability and the economic conditions of an 
area; a match also may be waived by NRC 
based on the aforementioned conditions) to pro-
vide mortgage foreclosure mitigation assistance 
to the 15 States with highest rates of home 
mortgage defaults and foreclosures, as of Janu-
ary 1, 2019, to help eliminate the default and 
foreclosure of mortgages of owner-occupied sin-
gle-family homes that are at risk of such fore-
closure and located in metropolitan statistical 
areas having the greatest such need. Other than 
areas with high rates of defaults and fore-
closures, grants may also be provided to ap-
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proved counseling intermediaries based on a ge-
ographic analysis of the Nation by NRC which 
determines where there is a prevalence of mort-
gages that are risky and likely to fail, including 
any trends for mortgages that are likely to de-
fault and face foreclosure. A State Housing Fi-
nance Agency may also be eligible where the 
State Housing Finance Agency meets all the re-
quirements under this paragraph. A HUD-ap-
proved counseling intermediary shall meet cer-
tain mortgage foreclosure mitigation assistance 
counseling requirements, as determined by 
NRC, and shall be approved by HUD or NRC 
as meeting these requirements. 
(B) Mortgage foreclosure mitigation assist-
ance shall only be made available to home-
owners of owner-occupied homes with mort-
gages in default or in danger of default. These 
mortgages shall likely be subject to a fore-
closure action and homeowners will be provided 
such assistance that shall consist of activities 
that are likely to prevent foreclosures and result 
in the long-term affordability of the mortgage 
retained pursuant to such activity or another 
positive outcome for the homeowner. No funds 
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made available pursuant to this paragraph may 
be provided directly to lenders or homeowners 
to discharge outstanding mortgage balances or 
for any other direct debt reduction payments. 
(C) The use of mortgage foreclosure miti-
gation assistance by approved counseling inter-
mediaries and State Housing Finance Agencies 
shall involve a reasonable analysis of the bor-
rower’s financial situation, an evaluation of the 
current value of the property that is subject to 
the mortgage, counseling regarding the assump-
tion of the mortgage by another non-Federal 
party, counseling regarding the possible pur-
chase of the mortgage by a non-Federal third 
party, counseling and advice of all likely re-
structuring and refinancing strategies or the 
approval of a work-out strategy by all interested 
parties. 
(D) NRC may provide up to 15 percent of 
the total funds made available pursuant to this 
paragraph to its own charter members with ex-
pertise in foreclosure prevention counseling, 
subject to a certification by NRC that the pro-
cedures for selection do not consist of any pro-
cedures or activities that could be construed as 
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a conflict of interest or have the appearance of 
impropriety. 
(E) HUD-approved counseling entities and 
State Housing Finance Agencies receiving 
funds made available pursuant to this para-
graph shall have demonstrated experience in 
successfully working with financial institutions 
as well as borrowers facing default, delinquency, 
and foreclosure as well as documented coun-
seling capacity, outreach capacity, past success-
ful performance and positive outcomes with doc-
umented counseling plans (including post-mort-
gage foreclosure mitigation counseling), loan 
workout agreements, and loan modification 
agreements. NRC may use other criteria to 
demonstrate capacity in underserved areas. 
(F) Of the total amount made available 
pursuant to this paragraph, up to $250,000 
may be made available to build the mortgage 
foreclosure and default mitigation counseling 
capacity of counseling intermediaries through 
NRC training courses with HUD-approved 
counseling intermediaries and their partners, 
except that private financial institutions that 
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participate in NRC training shall pay market 
rates for such training. 
(G) Of the total amount made available 
pursuant to this paragraph, up to 5 percent 
may be used for associated administrative ex-
penses for NRC to carry out activities provided 
under this paragraph. 
(H) Mortgage foreclosure mitigation assist-
ance grants may include a budget for outreach 
and advertising, and training, as determined by 
NRC. 
(I) NRC shall report bi-annually to the 
House and Senate Committees on Appropria-
tions as well as the Senate Committee on Bank-
ing, Housing, and Urban Affairs and the House 
Committee on Financial Services on its efforts 
to mitigate mortgage default. 
(2) LEGAL ASSISTANCE.— 
(A) The Neighborhood Reinvestment Cor-
poration may make grants to counseling inter-
mediaries approved by HUD or the NRC to 
hire attorneys to assist homeowners who have 
legal issues directly related to the homeowner’s 
foreclosure, delinquency, or short sale. 
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(B) Such attorneys shall be capable of as-
sisting homeowners of owner-occupied homes 
with mortgages in default, in danger of default, 
or subject to or at risk of foreclosure and who 
have legal issues that cannot be handled by 
counselors already employed by such inter-
mediaries. 
(C) Grants under this paragraph may only 
be made to counseling intermediaries and legal 
organizations that (i) provide legal assistance in 
the 15 States with the highest rates of home 
mortgage defaults and foreclosures, as of Janu-
ary 1, 2019, and (ii) have the capacity to begin 
using the financial assistance within 90 days 
after receipt of the assistance. 
(D) No funds made available pursuant to 
this paragraph shall be used to provide, obtain, 
or arrange on behalf of a homeowner, legal rep-
resentation involving or for the purposes of civil 
litigation. 
SEC. 4. INCREMENTAL HOUSING CHOICE VOUCHER ASSIST-
ANCE. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for each of fiscal years 2019 
through 2023 such sums as may be necessary to provide 
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in each such fiscal year 20,000 incremental vouchers for 
rental assistance under section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)). 
(b) ELIGIBLE PUBLIC HOUSING AGENCIES.—Any 
amounts appropriated pursuant to this section shall be 
used by the Secretary of Housing and Urban Development 
only to provide additional amounts for rental assistance 
vouchers for public housing agencies that administer 
10,000 or more vouchers for rental assistance under such 
section 8(o). 
Æ 
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