all such loan authority amounts not later than the 
24-month period that begins upon such approval. 
This subsection shall not apply to loan authority amounts 
of an allocation recipient attributable, pursuant to section 
6(b)(2), to repayment of principal amounts of loans under 
this Act. 
(b) EXCEPTION TO SPENDING REQUIREMENT.—If an 
allocation recipient in good faith makes a request, in the 
plan submitted to the Secretary pursuant to section 4 or 
otherwise after approval of such plan, for extension of the 
period referred to in paragraph (1), (2), or (3) of subsection 
(a) of this section, the Secretary may extend the period for 
not more than 5 months. 
SEC. 11. SERVICER CONTACT. 
The servicer of a federally related mortgage loan (as 
such term is defined in section 3 of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2602)) shall notify 
the unit of general local government in which the property 
securing the mortgage is located upon becoming responsible 
for a qualified foreclosed property and provide such unit 
of general local government with the name and 24-hour con-
tact information of a representative authorized to negotiate 
purchases. 
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SEC. 12. ACCOUNTABILITY. 
(a) REPORTING.—Each allocation recipient that re-
ceives a grant or allocation of loan authority amount under 
this Act shall submit a report to the Secretary, not later 
than the expiration of the 12-month period beginning upon 
the approval of the qualified plan by the Secretary, regard-
ing use of such amounts which shall contain such informa-
tion, including information about the location and type of 
assisted properties and the income of families purchasing 
or renting housing assisted under this Act, as the Secretary 
shall require. 
(b) MISUSE OF AMOUNTS.—If the Secretary deter-
mines that any amounts from a grant or loan under this 
Act for an allocation recipient or other recipient of grant 
or loans funds has been used in a manner that is in viola-
tion of this Act, any regulations issued under this Act, or 
any requirements or conditions under which such amounts 
were provided, the Secretary shall require the allocation re-
cipient or other recipient of grant or loans funds to reim-
burse the Treasury of the United States in the amount of 
any such misused funds. 
(c) HOLD HARMLESS.—Notwithstanding subsection 
(b), a State shall not be required to reimburse the Treasury 
of the United States for any misused funds such State is 
required to allocate to a qualified metropolitan city or 
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qualified urban county under subsection (f) or (g) of section 
5, respectively. 
SEC. 13. DEFINITIONS. 
For purposes of this Act, the following definitions shall 
apply: 
(1) ALLOCATION RECIPIENT.—The term ‘‘alloca-
tion recipient’’ means— 
(A) a qualified State; 
(B) a qualified metropolitan city; and 
(C) a qualified urban county. 
(2) ALLOCATION RECIPIENT ADMINISTRATOR.— 
The term ‘‘allocation recipient administrator’’ means 
the entity that is designated, pursuant to section 
4(b)(1), in the approved plan of the allocation recipi-
ent to act for the allocation recipient for purposes of 
this Act. 
(3) APPROVED
PLAN.—The term ‘‘approved 
plan’’ means a plan of an allocation recipient that 
has been approved pursuant to section 4. 
(4) COVERED MULTIFAMILY HOUSING.—The term 
‘‘covered multifamily housing’’ means a residential 
structure that consists of 64 or fewer dwelling units. 
(5) LOAN AUTHORITY AMOUNT.—The term ‘‘loan 
authority amount’’ means, with respect to an alloca-
tion recipient, the amount of loan authority available 
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pursuant to section 14(b)(1) that is allocated for the 
allocation recipient pursuant to subsection (b), (f), or 
(g) of section 5, as applicable, as such amount may 
be increased or decreased pursuant to section 6(b). 
(6) NONPROFIT ORGANIZATION.—The term ‘‘non-
profit organization’’ has the meaning given such term 
in section 104 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12704). 
(7) QUALIFIED
FORECLOSED
HOUSING.—The 
term ‘‘qualified foreclosed housing’’ means housing 
that— 
(A)(i) is single family housing that is not 
occupied by an owner, pursuant to foreclosure or 
assignment of the mortgage on the housing or 
forfeiture of the housing; or 
(ii) is covered multifamily housing; 
(B) is owned by a lender, mortgage com-
pany, investor, financial institution, or other 
such entity, or any government entity, pursuant 
to foreclosure or assignment of the mortgage on 
the housing or forfeiture of the housing; and 
(C) has a purchase price— 
(i) in the case of single family housing, 
that does not exceed 110 percent of the aver-
age purchase price for single family housing 
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in the area in which the housing is located, 
as determined by the Secretary. 
(ii) in the case of covered multifamily 
housing, that does not exceed the dollar 
amount limitation, for housing of the appli-
cable size located in the area in which the 
housing is located, on the amount of a prin-
cipal obligation of a mortgage eligible for 
insurance under section 207 of the National 
Housing Act (12 U.S.C. 1713), as in effect 
on the date of the enactment of this Act pur-
suant to such section 207(c)(3)(A) and sec-
tion 206A of such Act (12 U.S.C. 1712a). 
(8) QUALIFIED METROPOLITAN CITY.—The term 
‘‘qualified metropolitan city’’ means an incorporated 
place, for which there is an improved plan, that— 
(A) is among the 100 most populous incor-
porated places in the United States, as deter-
mined according to data from the most recent de-
cennial census that is published before the date 
of the enactment of this Act; or 
(B)(i) has a minimum population of 
50,000, as determined according to data from the 
most recent decennial census that is published 
before the date of the enactment of this Act; and 
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(ii) has a foreclosure rate that exceeds 125 
percent of the foreclosure rate for the entire State 
(9) QUALIFIED
STATE.—The term ‘‘qualified 
State’’ means a State for which there is an approved 
plan. 
(10) QUALIFIED
URBAN
COUNTY.—The term 
‘‘qualified urban county’’ means an urban county (as 
such term is defined in section 102 of the Housing 
and Community Development Act of 1974 (42 U.S.C. 
5302)), for which there is an approved plan, that is 
among the 50 most populous urban counties in the 
United States, as determined— 
(A) according to data from the most recent 
decennial census; and 
(B) excluding the population of any quali-
fied metropolitan city within such urban county, 
unless such metropolitan city has agreed to have 
its population included with the population of 
the county for the purposes of this Act. 
(11) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(12) SINGLE FAMILY HOUSING.—The term ‘‘sin-
gle family housing’’ means a residential structure 
consisting of from one to four dwelling units. 
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(13) STATE.—The term ‘‘State’’ means any 
State of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico, the Commonwealth 
of the Northern Mariana Islands, Guam, the Virgin 
Islands, American Samoa, and other territory or pos-
session of the United States. 
SEC. 14. FUNDING. 
(a) GRANTS.—There is authorized to be appropriated 
to the Secretary of the Treasury $7,500,000,000 for grants 
under this Act. 
(b) DIRECT LOANS.— 
(1) LOAN
COMMITMENT
AUTHORITY
LIMITA-
TION.—Subject only to the availability of sufficient 
amounts for the costs (as such term is defined in sec-
tion 502 of the Federal Credit Reform Act of 1990 (2 
U.S.C. 661a)) of such loans and the absence of quali-
fied requests for loans, the Secretary shall enter into 
commitments to make loans under this Act, and shall 
make such loans, in an amount such that the aggre-
gate outstanding principal balance of such loans does 
not at any time exceed $7,500,000,000. 
(2) AUTHORIZATION
OF
APPROPRIATIONS
FOR 
COSTS.—There is authorized to be appropriated such 
sums as may be necessary for costs (as such term is 
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defined in section 502 of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661a)) of loans under this Act. 
SEC. 15. REGULATIONS AND IMPLEMENTATION. 
(a) REGULATIONS.—The Secretary shall issue any reg-
ulations necessary to carry out this Act. 
(b) IMPLEMENTATION.—Pending the effectiveness of 
regulations issued pursuant to subsection (a), the Secretary 
shall take such action as may be necessary to implement 
this Act by notice, guidance, and interim rules. 
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Union Calendar No. 383 
110TH CONGRESS 
2D SESSION 
H. R. 5818 
[Report No. 110–616] 
A BILL 
To authorize the Secretary of Housing and Urban 
Development to make loans to States to acquire 
foreclosed housing and to make grants to States 
for related costs. 
MAY 1, 2008 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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