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ment, in accordance with the requirements under 
section 10; and 
(13) in the case of any grant or loan amounts 
that will be invested with the possibility of a return 
on investment, provide for use of any return on such 
investment only for one or more eligible housing 
stimulus activities under section 8. 
(c) SUBMISSION.— 
(1) IN GENERAL.—The Secretary shall provide 
for allocation recipients to submit plans under this 
section to the Secretary and shall establish require-
ments for the contents and form of such plans. Ex-
cept in the case of plan resubmitted pursuant to 
subsection (d)(3), the Secretary may not accept or 
consider a plan unless the plan is submitted to the 
Secretary before the expiration of the 30-day period 
beginning upon the date of the enactment of this 
Act. 
(2) PUBLIC APPROVAL.—An allocation recipient 
may not submit a plan to the Secretary unless the 
plan is approved by the chief executive officer of the 
allocation recipient after a public hearing on the 
plan held pursuant to reasonable public notice. 
(d) REVIEW AND APPROVAL.— 
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(1) TIMING.—The Secretary shall review, and 
approve or disapprove, each plan submitted or resub-
mitted pursuant to paragraph (3) in compliance with 
the requirements established under this section be-
fore the expiration of the 30-day period beginning 
upon the submission of the plan. If the Secretary 
does not approve or disapprove a plan that is sub-
mitted or resubmitted in accordance with the re-
quirements under this section before the expiration 
of such 30-day period and notify the allocation re-
cipient of such approval or disapproval, the plan 
shall be considered approved for purposes of this 
section. 
(2) STANDARD FOR DISAPPROVAL.—The Sec-
retary may disapprove a plan only if the plan fails 
to comply with the requirements of this Act. 
(3) RESUBMISSION.—If the Secretary dis-
approves the plan of an allocation recipient, the Sec-
retary shall submit to the allocation recipient the 
reasons for the disapproval, and the allocation re-
cipient may, during the 15-day period that begins 
upon notification of such disapproval and the rea-
sons for such disapproval, submit to the Secretary a 
revised plan for review and approval in accordance 
with this subsection. 
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SEC. 5. ALLOCATION OF AMOUNTS. 
(a) GRANTS.—From the total amount made available 
under section 14(a) for grants under this Act, the Sec-
retary shall make a grant to each qualified State in the 
grant amount determined under subsection (c) of this sec-
tion for the qualified State. 
(b) LOANS.—From the aggregate amount of author-
ity for the outstanding principal balance of loans made 
under this Act pursuant to section 14(b)(1), the Secretary 
shall allocate such authority for loans under this Act for 
each qualified State in the loan authority amount deter-
mined under subsection (c) of this section for the qualified 
State. 
(c) GRANT
AMOUNTS
AND
LOAN
AUTHORITY 
AMOUNTS.— 
(1) IN GENERAL.—The grant amount or loan 
authority amount for a qualified State shall be the 
foreclosure grant share or foreclosure loan share, re-
spectively, for the State determined under subsection 
(d), as such share is adjusted in accordance with an 
index established or selected by the Secretary to ac-
count for differences between qualified States in the 
median price of single family housing in such States. 
(2) LIMITATION ON ADJUSTMENT.—If such ad-
justment would result in a grant amount or loan au-
thority amount for any State that exceeds 125 per-
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cent of the foreclosure grant share or foreclosure 
loan share, respectively, for the State, the grant 
amount or loan authority amount for the State shall 
be 125 percent of foreclosure grant share or fore-
closure loan share, respectively, for the State and 
the Secretary shall increase the grant amounts or 
loan authority amounts for all other States on a pro 
rata basis, except as provided in paragraph (3), by 
the amount necessary to account for the aggregate 
of any such decreases in grant amounts or loan au-
thority amounts for States to comply with the 125 
percent limitation. 
(3) LIMITATION
ON
REALLOCATION.—No in-
crease in the grant amount or loan authority amount 
for any State from amounts reallocated pursuant to 
paragraph (2) shall result in the grant amount or 
loan authority amount for any State exceeding 125 
percent of the foreclosure grant share or foreclosure 
loan share for the State, respectively. 
(4) 
PRIORITY
PREFERENCE
FOR
UNUSED 
AMOUNTS.—States which have their grant or loan 
amounts reduced under paragraph (2) shall be 
granted a priority preference for any loans or grants 
which may be reallocated under subsection (i) (relat-
ing to reallocation of funds). 
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(d) FORECLOSURE SHARES.—For purposes of this 
section: 
(1) GRANT
SHARE.—The foreclosure grant 
share for a qualified State shall be the amount that 
bears the same ratio to the total amount made avail-
able under section 14(a) as the number of fore-
closures on mortgages for single family housing and 
subprime mortgage loans for single family housing 
that are over 90 days delinquent, occurring in such 
State during the most recently completed four cal-
endar quarters for which such information is avail-
able, as determined by the Secretary, bears to the 
aggregate number of such foreclosures and such de-
linquent subprime mortgage loans occurring in all 
qualified States during such calendar quarters. 
(2) LOAN SHARE.—The foreclosure loan share 
for a qualified State shall be the amount that bears 
the same ratio to the aggregate amount of the prin-
cipal balance of loans that may be outstanding at 
any time under this Act pursuant to section 14(b)(1) 
as the number of foreclosures on mortgages for sin-
gle family housing and subprime mortgage loans for 
single family housing that are over 90 days delin-
quent, occurring in such State during the most re-
cently completed four calendar quarters for which 
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such information is available, as determined by the 
Secretary, bears to the aggregate number of such 
foreclosures and such delinquent subprime mortgage 
loans occurring in all qualified States during such 
calendar quarters. 
(e) DISTRIBUTION
OF FULL AMOUNT.—The Sec-
retary shall establish the index referred to in subsection 
(c) and the grant and loan authority amounts for the 
qualified States in a manner that provides that— 
(1) the aggregate of the grant amounts for all 
qualified States is equal to the total amount made 
available under section 14(a); and 
(2) the aggregate of the loan authority amounts 
for all qualified States is equal to the aggregate 
amount of authority for the outstanding principal 
balance of all loans made under this Act pursuant 
to section 14(b)(1). 
(f) REQUIREMENT TO ALLOCATE
TO QUALIFIED 
METROPOLITAN CITIES.—Of any grant amounts and loan 
authority amounts allocated pursuant to this section for 
a State, the Secretary shall allocate for each qualified met-
ropolitan city located in such State a portion of such grant 
amounts and such loan authority amounts that bears the 
same ratio to such grant amounts and loan authority 
amounts, respectively, allocated for the State as the num-
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ber of foreclosures on mortgages for single family housing 
and subprime mortgage loans for single family housing 
that are over 90 days delinquent, occurring in such quali-
fied metropolitan city during the most recently completed 
four calendar quarters for which such information is avail-
able, as determined by the Secretary, bears to the aggre-
gate number of such foreclosures and such delinquent 
subprime mortgage loans occurring in the State during 
such calendar quarters. The Secretary shall adjust such 
allocation to account for differences between median single 
family housing prices in the State and in qualified metro-
politan cities in the State. 
(g) REQUIREMENT TO ALLOCATE
TO QUALIFIED 
URBAN COUNTIES.—Of any grant amounts and loan au-
thority amounts allocated pursuant to this section for a 
State, such State shall allocate for each qualified urban 
county located in such State a portion of such grant 
amounts and such loan authority amounts that bears the 
same ratio to such grant amounts and loan authority 
amounts, respectively, allocated for the State as the num-
ber of foreclosures on mortgages for single family housing 
and subprime mortgage loans for single family housing 
that are over 90 days delinquent, occurring in such quali-
fied urban county during the most recently completed four 
calendar quarters for which such information is available, 
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as determined by the Secretary, bears to the aggregate 
number of such foreclosures and such delinquent subprime 
mortgage loans occurring in the State during such cal-
endar quarters. The Secretary shall adjust such allocation 
to account for differences between median single family 
housing prices in the State and in qualified urban counties 
in the State. 
(h) ALLOCATION
EXCEPTION.—If the aggregate 
grant and loan authority amount to be allocated pursuant 
to subsection (f) or (g) to a qualified metropolitan city 
or qualified urban county is less than $10,000,000, the 
Secretary may, but is not required to, allocate such grant 
and loan authority amount to such qualified metropolitan 
city or qualified urban county, and the allocation for such 
State shall be increased by the grant and loan authority 
amount not allocated to such qualified metropolitan city 
or qualified urban county. 
(i) REALLOCATION
OF UNUSED AMOUNTS.—The 
Secretary shall recapture any grant amounts and loan au-
thority amounts allocated to a State that are not used in 
a timely fashion in accordance with section 10, as the Sec-
retary shall prescribe, and shall reallocate such amounts 
among all other qualified States in accordance with the 
provisions of this Act for allocation of grant amounts and 
loan authority amounts. 
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SEC. 6. LOANS. 
(a) REQUIREMENT OF LOAN AUTHORITY AMOUNT.— 
The Secretary may make a loan under this Act for use 
in the area of an allocation recipient only to the extent 
and in such amounts that loan authority amounts for such 
allocation recipient are available. 
(b) REVOLVING AVAILABILITY OF LOAN AUTHORITY 
AMOUNT.—The loan authority amount allocated for each 
allocation recipient shall— 
(1) upon the Secretary entering into a binding 
commitment to make a loan under this Act for use 
in the area of such allocation recipient, be decreased 
by the amount of the principal obligation of such 
loan; and 
(2) upon the repayment to the Secretary by any 
borrower of any principal amounts borrowed under 
a loan this Act for use in the area of such allocation 
recipient, be increased by the amount of principal re-
paid. 
(c) ASSISTED ENTITIES.—The loan authority amount 
of an allocation recipient may be used for activities de-
scribed in section 8(a) undertaken by— 
(1) the allocation recipient; 
(2) a unit of local government or a local govern-
mental entity; or 
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(3) any other entity, as provided in the ap-
proved plan of the allocation recipient under section 
4. 
(d) LOAN TERMS.—Each loan provided under this 
Act from the loan authority amount of an allocation recipi-
ent shall— 
(1) bear no interest; 
(2) have a term to maturity of— 
(A) 3 years, in the case of any loan made 
to purchase or finance the purchase of qualified 
foreclosed housing for use under section 8(a)(1) 
for homeownership; and 
(B) 5 years, in the case of any loan made 
to purchase or finance the purchase of qualified 
foreclosed housing for use under section 8(a)(2) 
for rental; 
(3) not provide for amortization of the principal 
obligation of the loan during such term; 
(4) be non-recourse; 
(5) require payment of the original principal ob-
ligation under the loan only upon the expiration of 
the term of the loan; and 
(6) have such other terms and conditions as the 
Secretary may provide. 
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(e) PROCEDURE.—A qualified State, a qualified met-
ropolitan city, and a qualified urban county shall— 
(1) enter into a loan agreement on behalf of the 
Secretary on terms established under this Act and 
any other terms such State, qualified metropolitan 
city, or qualified urban county determines appro-
priate; 
(2) disburse the loan amount in accordance 
with such terms, subject only to the absence of suffi-
cient loan authority amount for such State, such 
qualified metropolitan city, or such qualified urban 
county; 
(3) monitor such loans; and 
(4) collect and transmit to the Secretary any 
loan repayments. 
(f) ELIGIBILITY
FOR REPEAT LENDING.—A loan 
under this Act may be made to an entity that has pre-
viously borrowed amounts under a loan under this Act 
only if such entity has repaid 90 percent or more of the 
amounts due under all previous such loans. The Secretary 
may waive such requirement upon a request by an alloca-
tion recipient if the borrower has demonstrated satisfac-
tory progress in utilizing outstanding loans and sufficient 
capacity to utilize additional loan amounts effectively. 
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(g) SUNSET.—The Secretary may not enter into any 
commitment to make a loan under this Act, or make any 
such loan, after the expiration of the 48-month period be-
ginning on the date of the enactment of this Act. 
SEC. 7. GRANTS. 
The grant amount of an allocation recipient may be 
used under section 8(b) by the allocation recipient, a unit 
of local government or a local governmental entity, or a 
nonprofit organization. 
SEC. 8. ELIGIBLE HOUSING STIMULUS ACTIVITIES. 
(a) LOAN AMOUNTS.—Amounts provided under a 
loan under this Act for an allocation recipient shall be 
used, in accordance with the approved plan of such alloca-
tion recipient, only for the following activities: 
(1) HOMEOWNERSHIP
HOUSING
PROVISION.— 
To purchase or finance the purchase of qualified 
foreclosed housing for resale as housing for home-
ownership to families having incomes that do not ex-
ceed 140 percent of the median income for the area 
in which the housing is located. 
(2) RENTAL
HOUSING
PROVISION.—To pur-
chase or finance the purchase of qualified foreclosed 
housing for use as rental, lease-purchase, or rent-to- 
own housing, subject to the following requirements: 
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(A) QUALIFIED
TENANTS.—All dwelling 
units in the housing purchased or financed 
using any loan amounts shall be available for 
rental only by families whose incomes do not 
exceed 100 percent of the median income for 
the area in which the housing is located. 
(B) RENTS.—Rents for each dwelling unit 
in the housing purchased or financed using any 
loan amounts shall be established at amounts 
that do not exceed market rents for comparable 
dwelling units located in the area in which the 
housing is located and in accordance with such 
requirements as the Secretary shall establish to 
ensure that rents are established in a fair, ob-
jective, and arms-length manner. 
(3) HOUSING
REHABILITATION.—To rehabili-
tate qualified foreclosed housing acquired with as-
sistance provided pursuant to this subsection, to the 
extent necessary to comply with applicable laws, 
codes, and other requirements relating to housing 
safety, quality, and habitability, or to make improve-
ments to the housing to increase the energy effi-
ciency or conservation of the housing or provide a 
renewable energy source or sources for the housing, 
for the purpose of reselling the housing, to the ex-
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tent possible, during the 3-month period that begins 
upon completion of rehabilitation and at a price that 
is as close as possible to the acquisition price of the 
housing. 
(b) GRANT AMOUNTS.—Grant amounts provided 
under this Act to an allocation recipient shall be used, in 
accordance with the approved plan of such allocation re-
cipient, only for the following activities: 
(1) OPERATING
AND
HOLDING
COSTS.—For 
costs of holding and operating qualified foreclosed 
housing acquired pursuant to subsection (a), includ-
ing expenses incurred operating housing assisted 
under this Act with respect to the administration, 
maintenance, repair, security, utilities, fuel, fur-
nishings, equipment, management, taxes, handling, 
insurance, and other related costs. 
(2) COSTS RELATING TO PROPERTY ACQUISI-
TION.—For incidental costs involved in acquiring 
qualified foreclosed housing pursuant to subsection 
(a), including reasonable closing costs, except that 
grant amounts may not be used to pay any portion 
of the purchase price for the housing under section 
13(7)(C). 
(3) ADMINISTRATIVE COSTS.—For costs of the 
allocation recipient in administering loan authority 
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amounts and grant amounts under this Act, except 
that the amount of grant amounts provided under 
this Act to an allocation recipient that may be used 
under this paragraph shall not exceed the amount 
equal to 8 percent of the sum of the grant amounts 
provided to the allocation recipient pursuant to sub-
section (a), (f), or (g) of section 5, as applicable, and 
the loan authority amount allocated to the allocation 
recipient pursuant to subsection (b), (f), or (g) of 
section 5, as applicable. 
(4) PLANNING COSTS.—For planning costs of 
the State in connection with this Act, except that 
the amount of grant amounts provided under this 
Act to an allocation recipient that may be used 
under this paragraph shall not exceed the amount 
equal to 2 percent of the sum of the grant amounts 
provided to the allocation recipient pursuant to sub-
section (a), (f), or (g) of section 5, as applicable, and 
the loan authority amount allocated to the State 
pursuant to subsection (b), (f), or (g) of section 5, 
as applicable. 
(5) HOUSING REHABILITATION.—For activities 
set forth in subsection (a)(3), except that an alloca-
tion recipient shall not use more than 20 percent of 
a grant amount allocation for such activities. 
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(6) DEMOLITION.—For costs of demolishing 
qualified foreclosed housing that is deteriorated or 
unsafe, but amounts may be used under this para-
graph only if the Secretary determines that the 
neighborhood or other area in which the housing is 
located has a high incidence of vacant and aban-
doned housing (or other vacant and abandoned 
structures) and is experiencing a significant decline 
in population. 
Notwithstanding any other provision of this subsection, 
grant amounts provided under this Act may not be used 
to provide assistance of any kind (including grants, loans, 
and closing cost financing) to provide amounts for 
downpayments for any homebuyers of single family hous-
ing. 
(c) PROHIBITED USES.—The Secretary shall, by reg-
ulation, set forth prohibited uses of grant or loan amounts 
under this Act, which shall include use for— 
(1) political activities; 
(2) advocacy; 
(3) lobbying, whether directly or through other 
parties; 
(4) counseling services; 
(5) travel expenses; and 
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(6) preparing or providing advice on tax re-
turns. 
(d) INCOME TARGETING REQUIREMENT.— 
(1) VERY
LOW-INCOME
FAMILIES.—Not less 
than 50 percent of the total grant amounts an allo-
cation recipient makes available under this Act shall 
be used for activities under subsection (b) in connec-
tion with providing housing for families whose in-
comes do not exceed 50 percent of the median in-
come for the area in which the housing is located. 
(2) EXTREMELY LOW-INCOME FAMILIES.—Not 
less than 50 percent of the total grant amounts an 
allocation recipient makes available under paragraph 
(1) shall be used for activities under subsection (b) 
in connection with providing housing for families 
whose incomes do not exceed 30 percent of the me-
dian income for the area in which the housing is lo-
cated. 
(3) WAIVER.— 
(A) IN GENERAL.—The Secretary may es-
tablish a percentage for purposes of paragraph 
(2) that is less than 50 percent if an allocation 
recipient certifies that, in addition to any other 
requirements the Secretary may establish— 
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(i) such allocation recipient has at-
tempted to use all other federally related 
resources available to it in combination 
with the resources available under this Act 
to meet the requirements of paragraph (2); 
and 
(ii) the failure to comply with para-
graph (2) will not result in an overall loss 
of housing affordable to families whose in-
comes do not exceed 30 percent of area 
median income in the area of such alloca-
tion recipient. 
(B) 
CONSIDERATION
OF
HOUSING 
NEEDS.—In establishing an alternative percent-
age for purposes of paragraph (2) for an alloca-
tion recipient that meets the certification re-
quirements of subparagraph (A), the Secretary 
shall take into consideration the housing needs 
in the area of such allocation recipient of fami-
lies whose incomes do not exceed 30 percent of 
area median income. 
(e) USE FOR RURAL AREAS.—An allocation recipient 
receiving any grant or loan amounts under this Act that 
includes any rural areas shall use a portion of its grant 
and loan authority amount for eligible activities located 
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in rural areas that is proportionate to the identified need 
for such activities in such rural areas. 
(f) SECURITY.—A qualified State, or at its election, 
a qualified metropolitan city or qualified urban county, 
shall record a lien in the name of the Secretary on any 
qualified foreclosed housing purchased or financed with a 
loan under this section in the amount of the principal obli-
gation under the loan and interest due under the loan. 
(g) QUALIFIED HOMEOWNERS.—This Act may not be 
construed to prevent the resale of qualified foreclosed 
housing to a prior owner or occupant of such housing who 
meets the income requirements of this Act. 
(h) VOUCHER NONDISCRIMINATION.— 
(1) PROSPECTIVE
TENANTS.—A recipient of 
amounts from a loan or grant under this Act may 
not refuse to lease a dwelling unit in housing as-
sisted with any such loan or grant amounts to a 
holder of a voucher or certificate of eligibility under 
section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f) because of the status of the pro-
spective tenant as such a holder. 
(2) CURRENT TENANTS.—In the case of any 
qualified foreclosed housing for which funds made 
available under the Act are used and in which a re-
cipient of assistance under section 8(o) of the U.S. 
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Housing Act of 1937 resides at the time of acquisi-
tion or financing, the owner and any successor in in-
terest shall be subject to the lease and to the hous-
ing assistance payments contract for the occupied 
unit. Vacating the property prior to sale shall not 
constitute good cause for termination of the tenancy 
unless the property is unmarketable while occupied 
or unless the owner or subsequent purchaser desires 
the unit for personal or family use. This paragraph 
shall not preempt any State or local law that pro-
vides more protection for tenants. 
(i) EFFECT
OF FORECLOSURE
ON PREEXISTING 
LEASE.— 
(1) IN
GENERAL.—In the case of any fore-
closure on any dwelling or residential real property 
acquired with any amounts made available under 
this Act, any successor in interest in such property 
pursuant to the foreclosure shall assume such inter-
est subject to— 
(A) the provision, by the successor in inter-
est, of a notice to vacate to any bona fide ten-
ant at least 90 days before the effective date of 
the notice to vacate; and 
(B) the rights of any bona fide tenant, as 
of the date of such notice of foreclosure— 
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(i) under any bona fide lease entered 
into before the notice of foreclosure to oc-
cupy the premises until the end of the re-
maining term of the lease or the end of the 
6-month period beginning on the date of 
the notice of foreclosure, whichever occurs 
first, subject to the receipt by the tenant 
of the 90-day notice under subparagraph 
(A); or 
(ii) without a lease or with a lease ter-
minable at will under State law, subject to 
the receipt by the tenant of the 90-day no-
tice under subparagraph (A), except that 
nothing under this subparagraph shall af-
fect the requirements for termination of 
any federally subsidized tenancy. 
(2) BONA FIDE LEASE OR TENANCY.—For pur-
poses of this subsection, a lease or tenancy shall be 
considered bona fide only if— 
(A) the mortgagor under the contract is 
not the tenant; 
(B) the lease or tenancy was the result of 
an arms-length transaction; or 
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(C) the lease or tenancy requires the re-
ceipt of rent that is not substantially less than 
fair market rent for the property. 
(j) PROHIBITION OF DEMOLITION OF PUBLIC HOUS-
ING.—Notwithstanding any other provision of this Act, 
amounts from a grant or loan under this Act may not be 
used to demolish any public housing (as such term is de-
fined in section 3 of the United States Housing Act of 
1937 (42 U.S.C. 1437a)). 
SEC. 9. SHARED APPRECIATION AGREEMENT. 
Notwithstanding any other provision of this Act, no 
amounts from a loan or grant under this Act may be used 
under section 8 for any qualified foreclosed housing unless 
such binding agreements are entered into, in accordance 
with such requirements as the Secretary shall establish, 
that ensure that the Federal Government shall, upon any 
sale or disposition of the qualified foreclosed housing by 
the owner who acquires the housing pursuant to assistance 
under this Act, receive an amount equal to 20 percent of 
the difference between the net proceeds from such sale or 
disposition and the cost of such acquisition of the housing 
pursuant to assistance under this Act, after deductions for 
expenditures paid or incurred after the date of such acqui-
sition that are properly chargeable to capital account 
(within the meaning of section 1016 of the Internal Rev-
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enue Code of 1986) with respect to such housing. In the 
case of a for-profit owner, this section shall be applied by 
substituting ‘‘50 percent’’ for ‘‘20 percent’’. 
SEC. 10. SPENDING REQUIREMENTS. 
(a) IN GENERAL.—Each allocation recipient that re-
ceives a grant under this Act or is allocated loan authority 
amounts under this Act pursuant to section 5(b) shall— 
(1) commence obligation of such grant amounts 
and commitment of such loan authority amounts not 
later than the expiration of the 120-day period that 
begins upon approval of the approved plan of alloca-
tion recipient; 
(2) obligate all such grant amounts and enter 
into commitments for all such loan authority 
amounts not later than the expiration of the 180-day 
period beginning upon such approval; and 
(3) except as provided in subsection (b) of this 
section, outlay all such grant amounts and disburse 
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. 
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(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 sub-
section (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 no-
tify 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 contact information of a representative authorized 
to negotiate purchases. 
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, 
regarding use of such amounts which shall contain such 
information, including information about the location and 
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type of assisted properties and the income of families pur-
chasing 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 al-
location recipient or other recipient of grant or loans funds 
to reimburse 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 Treas-
ury of the United States for any misused funds such State 
is required to allocate to a qualified metropolitan city or 
qualified urban county under subsection (f) or (g) of sec-
tion 5, respectively. 
SEC. 13. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) ALLOCATION RECIPIENT.—The term ‘‘allo-
cation recipient’’ means— 
(A) a qualified State; 
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(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 resi-
dential structure that consists of 64 or fewer dwell-
ing units. 
(5) LOAN
AUTHORITY
AMOUNT.—The term 
‘‘loan authority amount’’ means, with respect to an 
allocation recipient, the amount of loan authority 
available pursuant to section 14(b)(1) that is allo-
cated for the allocation recipient pursuant to sub-
section (b), (f), or (g) of section 5, as applicable, as 
such amount may be increased or decreased pursu-
ant to section 6(b). 
(6) NONPROFIT
ORGANIZATION.—The term 
‘‘nonprofit organization’’ has the meaning given 
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such term in section 104 of the Cranston-Gonzalez 
National Affordable 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 hous-
ing, that does not exceed the lesser of— 
(I) 110 percent of the average 
purchase price for single family hous-
ing in the area in which the housing 
is located, as determined by the Sec-
retary; or 
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(II) the current appraised value 
of the property; 
except that in the case of any such housing 
that has an appraised value that is less 
than 110 percent of the average purchase 
price for single family housing in the area 
in which the housing is located, an alloca-
tion recipient may appeal such appraisal to 
the Secretary and the Secretary may deter-
mine that the average purchase price shall 
operate as the cap on the purchase price; 
and 
(ii) in the case of covered multifamily 
housing, that does not exceed the dollar 
amount limitation, for housing of the ap-
plicable size located in the area in which 
the housing is located, on the amount of a 
principal obligation of a mortgage eligible 
for insurance under section 207 of the Na-
tional Housing Act (12 U.S.C. 1713), as in 
effect on the date of the enactment of this 
Act pursuant to such section 207(c)(3)(A) 
and section 206A of such Act (12 U.S.C. 
1712a). 
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(8) QUALIFIED
METROPOLITAN
CITY.—The 
term ‘‘qualified metropolitan city’’ means an incor-
porated 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 
decennial 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 pub-
lished before the date of the enactment of this 
Act; and 
(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, 
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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 Develop-
ment. 
(12) SINGLE
FAMILY
HOUSING.—The term 
‘‘single family housing’’ means a residential struc-
ture consisting of from one to four dwelling units. 
(13) STATE.—The term ‘‘State’’ means any 
State of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico, the Common-
wealth of the Northern Mariana Islands, Guam, the 
Virgin Islands, American Samoa, and other territory 
or possession 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. 
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(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 
section 502 of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661a)) of such loans and the ab-
sence of qualified 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 aggregate outstanding principal bal-
ance 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 defined in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a)) of loans under 
this Act. 
SEC. 15. PROTECTION OF RIGHT TO BEAR ARMS. 
Nothing in this Act shall affect the right to bear arms 
under the Second Amendment to the Constitution of the 
United States. 
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SEC. 16. INELIGIBLITY OF ILLEGAL ALIENS FOR ASSIST-
ANCE. 
Aliens who are not lawfully present in the United 
States shall be ineligible for financial assistance under this 
Act, as provided and defined by section 214 of the Hous-
ing and Community Development Act of 1980 (42 U.S.C. 
1436a). Nothing in this Act shall be construed to alter 
the restrictions or definitions in such section 214. 
SEC. 17. REGULATIONS AND IMPLEMENTATION. 
(a) REGULATIONS.—The Secretary shall issue any 
regulations necessary to carry out this Act. 
(b) IMPLEMENTATION.—Pending the effectiveness of 
regulations issued pursuant to subsection (a), the Sec-
retary shall take such action as may be necessary to imple-
ment this Act by notice, guidance, and interim rules. 
Passed the House of Representatives May 8, 2008. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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