217 
(B) in subsection (b)— 
(i) in paragraph (1)— 
(I) in the first sentence of sub-
paragraph (A)— 
(aa) by striking ‘‘in regula-
tion’’ and inserting ‘‘, by regula-
tion,’’; and 
(bb) by striking ‘‘eligible ju-
risdiction’’ and inserting ‘‘eligible 
jurisdictions’’; and 
(II) in subparagraph (F)— 
(aa) in the first sentence— 
(AA) in clause (i), by 
striking ‘‘Subcommittee on 
Housing and Urban Affairs’’ 
and 
inserting 
‘‘Sub-
committee 
on 
Housing, 
Transportation, and Com-
munity Development’’; and 
(BB) in clause (ii), by 
striking ‘‘Subcommittee on 
Housing 
and 
Community 
Development of the Com-
mittee on Banking, Finance 
and Urban Affairs’’ and in-
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218 
serting ‘‘Subcommittee on 
Housing and Insurance of 
the Committee on Financial 
Services’’; and 
(bb) in the second sentence, 
by striking ‘‘the Committee on 
Banking, Finance and Urban Af-
fairs of the House of Representa-
tives’’ and inserting ‘‘the Com-
mittee on Financial Services of 
the House of Representatives’’; 
(ii) in paragraph (2)(B), by striking 
‘‘$500,000’’ each place that term appears 
and inserting ‘‘$750,000’’; 
(iii) in paragraph (3)— 
(I) by striking ‘‘$500,000’’ each 
place that term appears and inserting 
‘‘$750,000’’; and 
(II) by striking ‘‘, except as pro-
vided in paragraph (4)’’; and 
(iv) by striking paragraph (4); 
(8) in section 220(c) (42 U.S.C. 12750(c))— 
(A) in paragraph (3), by striking ‘‘Sec-
retary’’ and all that follows and inserting ‘‘Sec-
retary;’’; 
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219 
(B) in paragraph (4), by striking ‘‘under 
this title’’ and all that follows and inserting 
‘‘under this title;’’; and 
(C) by redesignating paragraphs (6), (7), 
and (8) as paragraphs (5), (6), and (7), respec-
tively; 
(9) 
in 
section 
225(d)(4)(B) 
(42 
U.S.C. 
12755(d)(4)(B)), by striking ‘‘for’’ the first place 
that term appears; and 
(10) in section 283 (42 U.S.C. 12833)— 
(A) in subsection (a), by striking ‘‘Bank-
ing, Finance and Urban Affairs’’ and inserting 
‘‘Financial Services’’; and 
(B) in subsection (b), by striking ‘‘General 
Accounting Office’’ each place that term ap-
pears and inserting ‘‘Government Account-
ability Office’’. 
SEC. 503. RURAL HOUSING SERVICE REFORM ACT. 
(a) APPLICATION
OF
MULTIFAMILY
MORTGAGE 
FORECLOSURE PROCEDURES
TO MULTIFAMILY MORT-
GAGES HELD BY THE SECRETARY OF AGRICULTURE AND 
PRESERVATION OF THE RENTAL ASSISTANCE CONTRACT 
UPON FORECLOSURE.— 
(1) MULTIFAMILY MORTGAGE PROCEDURES.— 
Section 363(2) of the Multifamily Mortgage Fore-
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closure Act of 1981 (12 U.S.C. 3702(2)) is amend-
ed— 
(A) in subparagraph (D), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (E), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(F) section 514, 515, or 538 of the Hous-
ing Act of 1949 (42 U.S.C. 1484, 1485, 
1490p).’’. 
(2) PRESERVATION
OF
CONTRACT.—Section 
521(d) of the Housing Act of 1949 (42 U.S.C. 
1490a(d)) is amended by adding at the end the fol-
lowing: 
‘‘(3) Notwithstanding any other provision of law in 
managing and disposing of any multifamily property that 
is owned or has a mortgage held by the Secretary, and 
during the process of foreclosure on any property with a 
contract for rental assistance under this section— 
‘‘(A) the Secretary shall maintain any rental as-
sistance payments that are attached to any dwelling 
units in the property; and 
‘‘(B) the rental assistance contract may be used 
to provide further assistance to existing projects 
under 514, 515, or 516.’’. 
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(b) STUDY ON RURAL HOUSING LOANS FOR HOUS-
ING FOR LOW- AND MODERATE-INCOME FAMILIES.—Not 
later than 6 months after the date of enactment of this 
Act, the Secretary of Agriculture shall conduct a study 
and submit to Congress a publicly available report on the 
loan program under section 521 of the Housing Act of 
1949 (42 U.S.C. 1490a), including— 
(1) the total amount provided by the Secretary 
in subsidies under such section 521 to borrowers 
with loans made pursuant to section 502 of such Act 
(42 U.S.C. 1472); 
(2) how much of the subsidies described in 
paragraph (1) are being recaptured; and 
(3) the amount of time and costs associated 
with recapturing those subsidies. 
(c) AUTHORIZATION
OF
APPROPRIATIONS
FOR 
STAFFING AND IT UPGRADES.—There is authorized to be 
appropriated to the Secretary of Agriculture for each of 
fiscal years 2026 through 2030 such sums as may be nec-
essary for increased staffing needs and information tech-
nology upgrades to support all Rural Housing Service pro-
grams. 
(d) FUNDING FOR TECHNICAL IMPROVEMENTS.— 
(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Sec-
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222 
retary of Agriculture such sums as may be necessary 
for fiscal year 2026 for improvements to the tech-
nology of the Rural Housing Service of the Depart-
ment of Agriculture used to process and manage 
housing loans. 
(2) AVAILABILITY.—Amounts appropriated pur-
suant to paragraph (1) shall remain available until 
the date that is 5 years after the date of the appro-
priation. 
(3) TIMELINE.—The Secretary of Agriculture 
shall make the improvements described in paragraph 
(1) during the 5-year period beginning on the date 
on which amounts are appropriated under paragraph 
(1). 
(e) PERMANENT
ESTABLISHMENT
OF
HOUSING 
PRESERVATION AND REVITALIZATION PROGRAM.—Title 
V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 545. HOUSING PRESERVATION AND REVITALIZATION 
PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall carry 
out a program under this section for the preservation and 
revitalization of multifamily rental housing projects fi-
nanced under section 514, 515, or 516. 
‘‘(b) NOTICE OF MATURING LOANS.— 
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‘‘(1) TO
OWNERS.—On an annual basis, the 
Secretary shall provide written notice to each owner 
of a property financed under section 514, 515, or 
516 that will mature within the 4-year period begin-
ning upon the provision of the notice, setting forth 
the options and financial incentives that are avail-
able to facilitate the extension of the loan term or 
the option to decouple a rental assistance contract 
pursuant to subsection (f). 
‘‘(2) TO TENANTS.— 
‘‘(A) IN GENERAL.—On an annual basis, 
for each property financed under section 514, 
515, or 516, not later than the date that is 2 
years before the date that the loan will mature, 
the Secretary shall provide written notice to 
each household residing in the property that in-
forms them of— 
‘‘(i) the date of the loan maturity; 
‘‘(ii) the possible actions that may 
happen with respect to the property upon 
that maturity; and 
‘‘(iii) how to protect their right to re-
side in federally assisted housing, or how 
to secure housing voucher, after that ma-
turity. 
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‘‘(B) LANGUAGE.—Notice under this para-
graph shall be provided in plain English and 
shall be translated to other languages in the 
case of any property located in an area in which 
a significant number of residents speak such 
other languages. 
‘‘(c) LOAN RESTRUCTURING.—Under the program 
under this section, in any circumstance in which the Sec-
retary proposes a restructuring to an owner or an owner 
proposes a restructuring to the Secretary, the Secretary 
may restructure such existing housing loans, as the Sec-
retary considers appropriate, for the purpose of ensuring 
that those projects have sufficient resources to preserve 
the projects to provide safe and affordable housing for low- 
income residents and farm laborers, by— 
‘‘(1) reducing or eliminating interest; 
‘‘(2) deferring loan payments; 
‘‘(3) subordinating, reducing, or reamortizing 
loan debt; 
‘‘(4) providing other financial assistance, in-
cluding advances, payments, and incentives (includ-
ing the ability of owners to obtain reasonable re-
turns on investment) required by the Secretary; and 
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225 
‘‘(5) permanently removing a portion of the 
housing units from income restrictions when sus-
tained vacancies have occurred. 
‘‘(d) RENEWAL OF RENTAL ASSISTANCE.— 
‘‘(1) IN GENERAL.—When the Secretary pro-
poses to restructure a loan or agrees to the proposal 
of an owner to restructure a loan pursuant to sub-
section (c), the Secretary shall offer to renew the 
rental assistance contract under section 521(a)(2) 
for a term that is the shorter of 20 years and the 
term of the restructured loan, subject to annual ap-
propriations, provided that the owner agrees to bring 
the property up to such standards that will ensure 
maintenance of the property as decent, safe, and 
sanitary housing for the full term of the rental as-
sistance contract. 
‘‘(2) ADDITIONAL RENTAL ASSISTANCE.—With 
respect to a project described in paragraph (1), if 
rental assistance is not available for all households 
in the project for which the loan is being restruc-
tured pursuant to subsection (c), the Secretary may 
extend such additional rental assistance to unas-
sisted households at that project as is necessary to 
make the project safe and affordable to low-income 
households. 
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‘‘(e) RESTRICTIVE USE AGREEMENTS.— 
‘‘(1) REQUIREMENT.—As part of the preserva-
tion and revitalization agreement for a project, the 
Secretary shall obtain a restrictive use agreement 
that is recorded and obligates the owner to operate 
the project in accordance with this title. 
‘‘(2) TERM.— 
‘‘(A) NO EXTENSION OF RENTAL ASSIST-
ANCE CONTRACT.—Except when the Secretary 
enters into a 20-year extension of the rental as-
sistance contract for a project, the term of the 
restrictive use agreement for the project shall 
be consistent with the term of the restructured 
loan for the project. 
‘‘(B) EXTENSION OF RENTAL ASSISTANCE 
CONTRACT.—If the Secretary enters into a 20- 
year extension of the rental assistance contract 
for a project, the term of the restrictive use 
agreement for the project shall be for the longer 
of— 
‘‘(i) 20 years; or 
‘‘(ii) the remaining term of the loan 
for that project. 
‘‘(C) TERMINATION.—The Secretary may 
terminate the 20-year use restrictive use agree-
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227 
ment for a project before the end of the term 
of the agreement if the 20-year rental assist-
ance contract for the project with the owner is 
terminated at any time for reasons outside the 
control of the owner. 
‘‘(f) DECOUPLING OF RENTAL ASSISTANCE.— 
‘‘(1) RENEWAL OF RENTAL ASSISTANCE CON-
TRACT.—If the Secretary determines that a loan ma-
turing during the 4-year period beginning upon the 
provision of the notice required under subsection 
(b)(1) for a project cannot reasonably be restruc-
tured in accordance with subsection (c) because it is 
not financially feasible or the owner does not agree 
with the proposed restructuring, and the project was 
operating with rental assistance under section 521 
and the recipient is a borrower under section 514 or 
515, the Secretary may renew the rental assistance 
contract, notwithstanding any requirement under 
section 521 that the recipient be a current borrower 
under section 514 or 515, for a term of 20 years, 
subject to annual appropriations. 
‘‘(2) ADDITIONAL RENTAL ASSISTANCE.—With 
respect to a project described in paragraph (1), if 
rental assistance is not available for all households 
in the project for which the loan is being restruc-
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228 
tured pursuant to subsection (c), the Secretary may 
extend such additional rental assistance to unas-
sisted households at that project as is necessary to 
make the project safe and affordable to low-income 
households. 
‘‘(3) RENTS.— 
‘‘(A) IN GENERAL.—Any agreement to ex-
tend the term of the rental assistance contract 
under section 521 for a project shall obligate 
the owner to continue to maintain the project 
as decent, safe, and sanitary housing and to op-
erate the development as affordable housing in 
a manner that meets the goals of this title. 
‘‘(B) RENT
AMOUNTS.—Subject to sub-
paragraph (C), in setting rents, the Secretary— 
‘‘(i) shall determine the maximum ini-
tial rent based on current fair market 
rents established under section 8 of the 
United States Housing Act of 1937 (42 
U.S.C. 1437f); and 
‘‘(ii) may annually adjust the rent de-
termined under clause (i) by the operating 
cost adjustment factor as provided under 
section 524 of the Multifamily Assisted 
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229 
Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note). 
‘‘(C) HIGHER RENT.— 
‘‘(i) IN GENERAL.—Subparagraph (B) 
shall not apply if the Secretary determines 
that the budget-based needs of a project 
require a higher rent than the rent de-
scribed in subparagraph (B). 
‘‘(ii) RENT.—If the Secretary makes a 
positive determination under clause (i), the 
Secretary may approve a budget-based rent 
level for the project. 
‘‘(4) CONDITIONS FOR APPROVAL.—Before the 
approval of a rental assistance contract authorized 
under this section, the Secretary shall require, 
through an annual notice in the Federal Register, 
the owner to submit to the Secretary a plan that 
identifies financing sources and a timetable for ren-
ovations and improvements determined to be nec-
essary by the Secretary to maintain and preserve the 
project. 
‘‘(g) MULTIFAMILY HOUSING TRANSFER TECHNICAL 
ASSISTANCE.—Under the program under this section, the 
Secretary may provide grants to qualified nonprofit orga-
nizations and public housing agencies to provide technical 
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230 
assistance, including financial and legal services, to bor-
rowers under loans under this title for multifamily housing 
to facilitate the acquisition or preservation of such multi-
family housing properties in areas where the Secretary de-
termines there is a risk of loss of affordable housing. 
‘‘(h) ADMINISTRATIVE EXPENSES.—Of any amounts 
made available for the program under this section for any 
fiscal year, the Secretary may use not more than 
$1,000,000 for administrative expenses for carrying out 
such program. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for the program under this 
section such sums as may be necessary for each of fiscal 
years 2026 through 2030. 
‘‘(j) RULEMAKING.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of the Renewing Oppor-
tunity in the American Dream to Housing Act of 
2025, the Secretary shall— 
‘‘(A) publish an advance notice of proposed 
rulemaking; and 
‘‘(B) consult with appropriate stake-
holders. 
‘‘(2) INTERIM FINAL RULE.—Not later than 1 
year after the date of enactment of the Renewing 
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231 
Opportunity in the American Dream to Housing Act 
of 2025, the Secretary shall publish an interim final 
rule to carry out this section.’’. 
(f) RENTAL ASSISTANCE CONTRACT AUTHORITY.— 
Section 521(d) of the Housing Act of 1949 (42 U.S.C. 
1490a(d)), as amended by this section, is amended— 
(1) in paragraph (1)— 
(A) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; 
(B) by inserting after subparagraph (A) 
the following: 
‘‘(B) upon request of an owner of a project fi-
nanced under section 514 or 515, the Secretary is 
authorized to enter into renewal of such agreements 
for a period of 20 years or the term of the loan, 
whichever is shorter, subject to amounts made avail-
able in appropriations Acts;’’; 
(C) in subparagraph (C), as so redesig-
nated, by striking ‘‘subparagraph (A)’’ and in-
serting ‘‘subparagraphs (A) and (B)’’; and 
(D) in subparagraph (D), as so redesig-
nated, by striking ‘‘subparagraphs (A) and 
(B)’’ and inserting ‘‘subparagraphs (A), (B), 
and (C)’’; 
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232 
(2) in paragraph (2), by striking ‘‘shall’’ and 
inserting ‘‘may’’; and 
(3) by adding at the end the following: 
‘‘(4) In the case of any rental assistance contract au-
thority that becomes available because of the termination 
of assistance on behalf of an assisted family— 
‘‘(A) at the option of the owner of the rental 
project, the Secretary shall provide the owner a pe-
riod of not more than 6 months before unused as-
sistance is made available pursuant to subparagraph 
(B) during which the owner may use such assistance 
authority to provide assistance on behalf of an eligi-
ble unassisted family that— 
‘‘(i) is residing in the same rental project 
in which the assisted family resided before the 
termination; or 
‘‘(ii) newly occupies a dwelling unit in the 
rental project during that 6-month period; and 
‘‘(B) except for assistance used as provided in 
subparagraph (A), the Secretary shall use such re-
maining authority to provide assistance on behalf of 
eligible families residing in other rental projects 
originally financed under section 514, 515, or 516.’’. 
(g) MODIFICATIONS TO LOANS AND GRANTS FOR 
MINOR IMPROVEMENTS TO FARM HOUSING AND BUILD-
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233 
INGS; INCOME ELIGIBILITY.—Section 504(a) of the Hous-
ing Act of 1949 (42 U.S.C. 1474(a)) is amended— 
(1) in the first sentence, by inserting ‘‘and may 
make a loan to an eligible low-income applicant’’ 
after ‘‘applicant’’; 
(2) by inserting ‘‘Not less than 60 percent of 
loan funds made available under this section shall be 
reserved and made available for very low-income ap-
plicants.’’ after the first sentence; and 
(3) 
by 
striking 
‘‘$7,500’’ 
and 
inserting 
‘‘$15,000’’. 
(h) RURAL
COMMUNITY
DEVELOPMENT
INITIA-
TIVE.—Subtitle E of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2009 et seq.) is amended by 
adding at the end the following: 
‘‘SEC. 381O. RURAL COMMUNITY DEVELOPMENT INITIA-
TIVE. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) a private, nonprofit community-based 
housing or community development organiza-
tion; 
‘‘(B) a rural community; or 
‘‘(C) a federally recognized Indian tribe. 
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234 
‘‘(2) ELIGIBLE INTERMEDIARY.—The term ‘eli-
gible intermediary’ means a qualified— 
‘‘(A) private, nonprofit organization; or 
‘‘(B) public organization. 
‘‘(b) ESTABLISHMENT.—The Secretary shall estab-
lish a Rural Community Development Initiative, under 
which the Secretary shall provide grants to eligible inter-
mediaries to carry out programs to provide financial and 
technical assistance to eligible entities to develop the ca-
pacity and ability of eligible entities to carry out projects 
to improve housing, community facilities, and community 
and economic development projects in rural areas. 
‘‘(c) AMOUNT OF GRANTS.—The amount of a grant 
provided to an eligible intermediary under this section 
shall be not more than $250,000. 
‘‘(d) MATCHING FUNDS.— 
‘‘(1) IN GENERAL.—An eligible intermediary re-
ceiving a grant under this section shall provide 
matching funds from other sources, including Fed-
eral funds for related activities, in an amount not 
less than the amount of the grant. 
‘‘(2) WAIVER.—The Secretary may waive para-
graph (1) with respect to a project that would be 
carried out in a persistently poor rural region, as de-
termined by the Secretary.’’. 
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235 
(i) ANNUAL REPORT
ON RURAL HOUSING PRO-
GRAMS.—Title V of the Housing Act of 1949 (42 U.S.C. 
1471 et seq.), as amended by this section, is amended by 
adding at the end the following: 
‘‘SEC. 546. ANNUAL REPORT. 
‘‘(a) IN GENERAL.—The Secretary shall submit to 
the appropriate committees of Congress and publish on 
the website of the Department of Agriculture an annual 
report on rural housing programs carried out under this 
title, which shall include significant details on the health 
of Rural Housing Service programs, including— 
‘‘(1) raw data sortable by programs and by re-
gion regarding loan performance; 
‘‘(2) the housing stock of those programs, in-
cluding information on why properties end participa-
tion in those programs, such as for maturation, pre-
payment, foreclosure, or other servicing issues; and 
‘‘(3) risk ratings for properties assisted under 
those programs. 
‘‘(b) PROTECTION OF INFORMATION.—The data in-
cluded in each report required under subsection (a) may 
be aggregated or anonymized to protect participant finan-
cial or personal information.’’. 
(j) GAO REPORT
ON RURAL HOUSING SERVICE 
TECHNOLOGY.—Not later than 1 year after the date of 
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236 
enactment of this Act, the Comptroller General of the 
United States shall submit to Congress a report that in-
cludes— 
(1) an analysis of how the outdated technology 
used by the Rural Housing Service impacts partici-
pants in the programs of the Rural Housing Service; 
(2) an estimate of the amount of funding that 
is needed to modernize the technology used by the 
Rural Housing Service; and 
(3) an estimate of the number and type of new 
employees the Rural Housing Service needs to mod-
ernize the technology used by the Rural Housing 
Service. 
(k) ADJUSTMENT TO RURAL DEVELOPMENT VOUCH-
ER AMOUNT.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Secretary of 
Agriculture shall issue regulations to establish a 
process for adjusting the voucher amount provided 
under section 542 of the Housing Act of 1949 (42 
U.S.C. 1490r) after the issuance of the voucher fol-
lowing an interim or annual review of the amount of 
the voucher. 
(2) INTERIM REVIEW.—The interim review de-
scribed in paragraph (1) shall, at the request of a 
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237 
tenant, allow for a recalculation of the voucher 
amount when the tenant experiences a reduction in 
income, change in family composition, or change in 
rental rate. 
(3) ANNUAL REVIEW.— 
(A) IN GENERAL.—The annual review de-
scribed in paragraph (1) shall require tenants 
to annually recertify the family composition of 
the household and that the family income of the 
household does not exceed 80 percent of the 
area median income at a time determined by 
the Secretary of Agriculture. 
(B) CONSIDERATIONS.—If a tenant does 
not recertify the family composition and family 
income of the household within the time frame 
required under subparagraph (A), the Secretary 
of Agriculture— 
(i) shall consider whether extenuating 
circumstances caused the delay in recertifi-
cation; and 
(ii) may alter associated consequences 
for the failure to recertify based on those 
circumstances. 
(C) EFFECTIVE DATE.—Following the an-
nual review of a voucher under paragraph (1), 
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the updated voucher amount shall be effective 
on the 1st day of the month following the expi-
ration of the voucher. 
(4) DEADLINE.—The process established under 
paragraph (1) shall require the Secretary of Agri-
culture to review and update the voucher amount de-
scribed in paragraph (1) for a tenant not later than 
60 days before the end of the voucher term. 
(l) ELIGIBILITY FOR RURAL HOUSING VOUCHERS.— 
Section 542 of the Housing Act of 1949 (42 U.S.C. 
1490r) is amended by adding at the end the following: 
‘‘(c) ELIGIBILITY
OF HOUSEHOLDS
IN SECTIONS 
514, 515, AND 516 PROJECTS.—The Secretary may pro-
vide rural housing vouchers under this section for any low- 
income household (including those not receiving rental as-
sistance) residing for a term longer than the remaining 
term of their lease that is in effect on the date of prepay-
ment, foreclosure, or mortgage maturity, in a property fi-
nanced with a loan under section 514 or 515 or a grant 
under section 516 that has— 
‘‘(1) been prepaid with or without restrictions 
imposed by the Secretary pursuant to section 
502(c)(5)(G)(ii)(I); 
‘‘(2) been foreclosed; or 
‘‘(3) matured after September 30, 2005.’’. 
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(m) AMOUNT OF VOUCHER ASSISTANCE.—Notwith-
standing any other provision of law, in the case of any 
rural housing voucher provided pursuant to section 542 
of the Housing Act of 1949 (42 U.S.C. 1490r), the 
amount of the monthly assistance payment for the house-
hold on whose behalf the assistance is provided shall be 
determined as provided in subsection (a) of such section 
542, including providing for interim and annual review of 
the voucher amount in the event of a change in household 
composition or income or rental rate. 
(n) TRANSFER OF MULTIFAMILY RURAL HOUSING 
PROJECTS.—Section 515 of the Housing Act of 1949 (42 
U.S.C. 1485) is amended— 
(1) in subsection (h), by adding at the end the 
following: 
‘‘(3) TRANSFER
TO
NONPROFIT
ORGANIZA-
TIONS.—A nonprofit or public body purchaser, in-
cluding a limited partnership with a general partner 
with the principal purpose of providing affordable 
housing, may purchase a property for which a loan 
is made or insured under this section that has re-
ceived a market value appraisal, without addressing 
rehabilitation needs at the time of purchase, if the 
purchaser— 
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‘‘(A) makes a commitment to address re-
habilitation needs during ownership and long- 
term use restrictions on the property; and 
‘‘(B) at the time of purchase, accepts long- 
term use restrictions on the property.’’; and 
(2) in subsection (w)(1), in the first sentence in 
the matter preceding subparagraph (A), by striking 
‘‘9 percent’’ and inserting ‘‘25 percent’’. 
(o) EXTENSION OF LOAN TERM.— 
(1) IN
GENERAL.—Section 502(a)(2) of the 
Housing Act of 1949 (42 U.S.C. 1472(a)(2)) is 
amended— 
(A) by inserting ‘‘(A)’’ before ‘‘The Sec-
retary’’; 
(B) in subparagraph (A), as so designated, 
by striking ‘‘paragraph’’ and inserting ‘‘sub-
paragraph’’; and 
(C) by adding at the end the following: 
‘‘(B) The Secretary may refinance or modify 
the period of any loan, including any refinanced 
loan, made under this section in accordance with 
terms and conditions as the Secretary shall pre-
scribe, but in no event shall the total term of the 
loan from the date of the refinance or modification 
exceed 40 years.’’. 
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(2) 
APPLICATION.—The 
amendment 
made 
under paragraph (1) shall apply with respect to 
loans made under section 502 of the Housing Act of 
1949 (42 U.S.C. 1472) before, on, or after the date 
of enactment of this Act. 
(p) RELEASE OF LIABILITY FOR SECTION 502 GUAR-
ANTEED BORROWER UPON ASSUMPTION OF ORIGINAL 
LOAN BY NEW BORROWER.—Section 502(h)(10) of the 
Housing Act of 1949 (42 U.S.C. 1472(h)(10)) is amended 
to read as follows: 
‘‘(10) TRANSFER AND ASSUMPTION.—Upon the 
transfer of property for which a guaranteed loan 
under this subsection was made and the assumption 
of the guaranteed loan by an approved eligible bor-
rower, the original borrower of a guaranteed loan 
under this subsection shall be relieved of liability 
with respect to the loan.’’. 
(q) DEPARTMENT OF AGRICULTURE LOAN RESTRIC-
TIONS.— 
(1) DEFINITIONS.—In this subsection, the 
terms ‘‘State’’ and ‘‘Tribal organization’’ have the 
meanings given those terms in section 658P of the 
Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858n). 
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(2) REVISION.—The Secretary of Agriculture 
shall revise section 3555.102(c) of title 7, Code of 
Federal Regulations, to exclude from the restriction 
under that section— 
(A) a home-based business that is a li-
censed, registered, or regulated child care pro-
vider under State law or by a Tribal organiza-
tion; and 
(B) an applicant that has applied to be-
come a licensed, registered or regulated child 
care provider under State law or by a Tribal or-
ganization. 
(r) LOAN GUARANTEES.—Section 502(h)(4) of the 
Housing Act of 1949 (42 U.S.C. 1472(h)(4)) is amend-
ed— 
(1) by redesignating subparagraphs (A), (B), 
and (C) as clauses (i), (ii), and (iii), respectively; 
(2) by striking ‘‘Loans may be guaranteed’’ and 
inserting the following: 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘accessory dwelling unit’ means a single, 
habitable living unit— 
‘‘(i) with means of separate ingress 
and egress; 
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‘‘(ii) that is usually subordinate in 
size; 
‘‘(iii) that can be added to, created 
within, or detached from a primary 1-unit, 
single-family dwelling; and 
‘‘(iv) in combination with a primary 
1-unit, single family dwelling, constitutes a 
single interest in real estate. 
‘‘(B) SINGLE
FAMILY
REQUIREMENT.— 
Loans may be guaranteed’’; and 
(3) by adding at the end the following: 
‘‘(C) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed to prohibit 
the leasing of an accessory dwelling unit or the 
use of rental income derived from such a lease 
to qualify for a loan guaranteed under this sub-
section— 
‘‘(i) after the date of enactment of the 
Renewing Opportunity in the American 
Dream to Housing Act of 2025; and 
‘‘(ii) if the property that is the subject 
of the loan was constructed before the date 
of enactment of the Renewing Opportunity 
in the American Dream to Housing Act of 
2025.’’. 
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(s) APPLICATION REVIEW.— 
(1) SENSE OF CONGRESS.—It is the sense of 
Congress, not later than 90 days after the date on 
which the Secretary of Agriculture receives an appli-
cation for a loan, grant, or combined loan and grant 
under section 502 or 504 of the Housing Act of 
1949 (42 U.S.C. 1472, 1474), the Secretary of Agri-
culture should— 
(A) review the application; 
(B) complete the underwriting; 
(C) make a determination of eligibility with 
respect to the application; and 
(D) notify the applicant of determination. 
(2) REPORT.— 
(A) IN GENERAL.—Not later than 90 days 
after the date of enactment of this Act, and an-
nually thereafter until the date described in 
subparagraph (B), the Secretary of Agriculture 
shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the 
House of Representatives a report— 
(i) detailing the timeliness of eligi-
bility determinations and final determina-
tions with respect to applications under 
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sections 502 and 504 of the Housing Act 
of 1949 (42 U.S.C. 1472, 1474), including 
justifications for any eligibility determina-
tions taking longer than 90 days; and 
(ii) that includes recommendations to 
shorten the timeline for notifications of eli-
gibility determinations described in clause 
(i) to not more than 90 days. 
(B) DATE
DESCRIBED.—The date de-
scribed in this subparagraph is the date on 
which, during the preceding 5-year period, the 
Secretary of Agriculture provides each eligibility 
determination described in subparagraph (A) 
during the 90-day period beginning on the date 
on which each application is received. 
SEC. 504. NEW MOVING TO WORK COHORT. 
(a) DEFINITIONS.—In this section: 
(1) MOVING TO WORK DEMONSTRATION.—The 
term ‘‘Moving to Work demonstration’’ means the 
Moving to Work demonstration authorized under 
section 204 of the Departments of Veterans Affairs 
and Housing and Urban Development, and Inde-
pendent Agencies Appropriations Act, 1996 (42 
U.S.C. 1437f note). 
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(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(b) AUTHORIZATION OF ADDITIONAL PUBLIC HOUS-
ING AGENCIES.— 
(1) IN GENERAL.—After the completion of the 
initial report required under subsection (h)(2), the 
Secretary may add up to an additional 25 public 
housing agencies that are designated as high per-
forming agencies under the Public Housing Assess-
ment System or the Section 8 Management Assess-
ment Program to participate in a new cohort as part 
of the Moving to Work demonstration. 
(2) NAME.—The new cohort authorized under 
paragraph (1) shall be entitled the ‘‘Economic Op-
portunity and Pathways to Independence Cohort’’. 
(c) WAIVER AUTHORITY.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the authority of the Secretary to grant waivers to 
agencies admitted to the Moving to Work dem-
onstration under this section or to designate policy 
changes as part of a cohort design under this section 
shall be limited to the waivers codified as of January 
2025 in Appendix I of the document of the Depart-
ment of Housing and Urban Development entitled 
‘‘Operations Notice for the Expansion of the Moving 
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to Work Demonstration Program’’ (FR–5994–N– 
05) published in the Federal Register on August 28, 
2020, as amended by the notice entitled ‘‘Operations 
Notice for Expansion of the Moving to Work Dem-
onstration Program Technical Revisions’’ (FR– 
5994–N–06) published in the Federal Register on 
March 20, 2025. 
(2) EXCEPTIONS.—Under paragraph (1), the 
Secretary may not grant waivers 1c, 1d, 1e, 1f, 1k, 
1l, 1o, 1p, 1q, 6, 7, 9a, 9h, or 12 in the document 
described in paragraph (1), including modifications 
of or safe harbor requirement waivers for such waiv-
ers. 
(3) POLICY
OPTIONS.—In carrying out the 
Moving to Work demonstration cohort established 
under this section, the Secretary may consider policy 
options to provide opt-out savings or escrow ac-
counts and report positive rental payments to con-
sumer reporting agencies (as defined in section 603 
of the Fair Credit Reporting Act (15 U.S.C. 1681a)) 
with resident consent. 
(d) FUNDING AND USE OF FUNDS.— 
(1) IN GENERAL.—Public housing agencies in 
the cohort authorized under this section may expend 
not more than 5 percent of the amounts those public 
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housing agencies receive in any fiscal year for hous-
ing assistance payments under section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) for purposes other than such housing as-
sistance payments. 
(2) OTHER USES.—Such other uses of amounts 
described in paragraph (1) shall comply with all 
other applicable requirements. 
(3) FORMULA.— 
(A) RENEWAL.—The amount of funding 
public housing agencies receive for renewal of 
housing assistance payments under section 8(o) 
of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)) shall be determined according 
to the same funding formula applicable to pub-
lic housing agencies that do not participate in 
the Moving to Work demonstration, except that 
the Secretary shall provide public housing agen-
cies funding to renew any funds expended 
under this subsection, with an adjustment for 
inflation. 
(B) ADMINISTRATIVE FEES.—The amount 
of funding public housing agencies receive for 
administrative fees under section 8(q) of the 
United States Housing Act of 1937 (42 U.S.C. 
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1437f(q)), public housing operating subsidies 
under section 9(e) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437g(e)), and pub-
lic housing capital funding under section 9(d) of 
the United States Housing Act of 1937 (42 
U.S.C. 1437g(d)) shall be determined according 
to the same funding formula applicable to pub-
lic housing agencies that do not participate in 
the Moving to Work demonstration. 
(e) SELECTION
REQUIREMENTS.—The Secretary 
shall select public housing agencies designated under this 
section through a competitive process, as determined by 
the Secretary, with the following parameters: 
(1) No public housing agency shall be granted 
this designation under this section that administers 
more than 27,000 aggregate housing vouchers and 
public housing units. 
(2) Of the public housing agencies selected 
under this section, not more than 10 shall admin-
ister 1,000 or fewer aggregate housing vouchers and 
public housing units, not more than 6 shall admin-
ister between 1,001 and 6,000 aggregate housing 
vouchers and public housing units, and not more 
than 4 shall administer between 6,001 and 27,000 
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aggregate housing vouchers and public housing 
units. 
(3) Selection of public housing agencies under 
this section shall be based on ensuring the geo-
graphic diversity of Moving to Work demonstration 
public housing agencies. 
(4) Within the requirements under paragraphs 
(1) through (3), the Secretary shall prioritize select-
ing public housing agencies that serve families with 
children and youth aging out of foster care at a rate 
above the national average. 
(f) REQUIREMENTS FOR SELECTED PUBLIC HOUS-
ING AGENCIES.—Consistent with section 204(c)(3) of the 
Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations 
Act, 1996 (42 U.S.C. 1437f note), public housing agencies 
selected for the Moving to Work demonstration under this 
section shall— 
(1) ensure that not less than 75 percent of the 
families assisted are very low-income families, as de-
fined in section 3(b)(2)(B) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)(2)(B)); 
(2) establish a reasonable rent policy, which 
shall be designed to encourage employment and self- 
sufficiency by participating families, consistent with 
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251 
the purpose of the Moving to Work demonstration, 
such as by excluding some or all of a family’s earned 
income for purposes of determining rent; 
(3) continue to assist substantially the same 
total number of eligible low-income families as would 
have been served had the amounts not been com-
bined; 
(4) maintain a comparable mix of families (by 
family size) as would have been provided had the 
amounts not been used under the Moving to Work 
demonstration; and 
(5) assure that housing assisted under the Mov-
ing to Work demonstration meets housing quality 
standards established or approved by the Secretary. 
(g) NONCOMPLIANCE.— 
(1) IN GENERAL.—If the Secretary finds that a 
public housing agency participating in the cohort au-
thorized under this section is not in compliance with 
the requirements under this section, the Secretary 
shall make a determination of noncompliance. 
(2) COMPLIANCE.—Upon making a determina-
tion under paragraph (1), the Secretary shall de-
velop a process to bring the public housing agency 
into compliance. 
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(3) REMOVAL.—If a public housing agency can-
not be brought into compliance under the process 
developed under paragraph (2), the Secretary shall 
remove the participating public housing agency from 
the cohort and replace it with a similarly qualified 
public housing agency currently not in the cohort 
chosen in the manner described in subsection (e). 
(4) NOTIFICATION.—Upon removing a public 
housing agency under paragraph (3), the Secretary 
shall immediately submit to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of 
Representatives— 
(A) a notification of the removal; and 
(B) a report on the active steps the Sec-
retary is taking to replace the public housing 
agency with a new public housing agency. 
(h) COMPREHENSIVE MOVING TO WORK REPORTING 
AND OVERSIGHT REQUIREMENTS.— 
(1) COHORT RESEARCH.— 
(A) IN
GENERAL.—The Secretary shall 
continue ongoing research investigations com-
menced as part of the assessment of the cohorts 
established under section 239 of the Depart-
ment of Housing and Urban Development Ap-
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253 
propriations Act, 2016 (42 U.S.C. 1437f note; 
Public Law 114–113), make public all products 
completed as part of those investigations, and 
keep such products online for at least 5 years. 
(B) COORDINATION.—The Secretary shall 
coordinate with the advisory committee estab-
lished under section 239 of the Department of 
Housing and Urban Development Appropria-
tions Act, 2016 (42 U.S.C. 1437f note; Public 
Law 114–113) to establish a research program 
to evaluate the outcomes and efficacy of the fol-
lowing for all Moving to Work demonstration 
agencies designated under the authority under 
such section and this section: 
(i) The waivers granted to each cohort 
and whether those waivers accomplish the 
goals of achieving greater cost effectiveness 
and administrative capacity, incentivizing 
families to become economically self-suffi-
cient, and increasing housing choice. 
(ii) The additional flexibilities granted 
to individual public housing agencies under 
each cohort. 
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(iii) How the flexibilities described in 
clause (ii) were used for local, non-tradi-
tional activities. 
(2) COMPREHENSIVE
REPORTING
REQUIRE-
MENT.—Not later than 180 days after the date of 
enactment of this Act, and annually thereafter, the 
Secretary shall submit to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of 
Representatives a report that contains the following 
for each Moving to Work demonstration cohort 
under section 204 of the Departments of Veterans 
Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1996 (42 
U.S.C. 1437f note), section 239 of the Department 
of Housing and Urban Development Appropriations 
Act, 2016 (42 U.S.C. 1437f note; Public Law 114– 
113), and this section: 
(A) The annual administrative plans of 
each Moving to Work demonstration public 
housing agency. 
(B) Assessments of longitudinal data, in-
cluding data on units, households, and out-
comes, which shall be evaluated to compare 
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changes in the following trends before and after 
Moving to Work demonstration designation: 
(i) Impacts on tenants based on the 
following, disaggregated by the public 
housing program and the housing choice 
voucher program: 
(I) Eviction rates. 
(II) Hardship policy usage. 
(III) Share of rent covered by a 
household. 
(IV) Turnover, including the 
number of household moves with or 
without continued assistance. 
(V) Reasons for exit from the 
program. 
(VI) The number and character-
istics of households served, including 
households with a non-elderly family 
member with a disability, 3 or more 
minors, homelessness status at the 
time of admission, and average and 
median income as a percent of area 
median income. 
(ii) Impacts on public housing agency 
operations based on the following: 
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(I) The number of units, broken 
down by type. 
(II) The size, including the num-
ber of bedrooms per unit, accessibility, 
affordability, and quality of units. 
(III) The length of each waitlist 
maintained and average wait times. 
(IV) Changes in capital backlog 
needs and surplus fund and reserve 
levels. 
(V) The number of public hous-
ing units undergoing a conversion 
under the rental assistance dem-
onstration program authorized under 
the Department of Housing and 
Urban Development Appropriations 
Act, 2012 (Public Law 112–55; 125 
Stat. 673) or demolition or disposition 
projects under section 18 of the 
United States Housing Act of 1937 
(42 U.S.C. 1437p), including the 
number of units lost and the location 
of any replacement housing resulting 
from demolition or disposition. 
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(VI) The share of project-based 
vouchers compared to tenant-based 
vouchers. 
(VII) The following annual hous-
ing choice voucher data: 
(aa) Voucher unit utilization 
rates. 
(bb) Voucher budget utiliza-
tion rates. 
(cc) Annualized voucher suc-
cess rate. 
(dd) Demographic composi-
tion of households issued vouch-
ers compared to utilized vouch-
ers. 
(ee) Average time to lease- 
up. 
(ff) Average cost per vouch-
er. 
(gg) Average cost per land-
lord incentive. 
(hh) Ratio of the proportion 
of voucher households living in 
concentrated low-income areas to 
the proportion of renter-occupied 
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units in concentrated low-income 
areas. 
(ii) Characteristics of census 
tracts where voucher recipients 
reside. 
(VIII) How the public housing 
agency met each of the statutory re-
quirements in section 204(c)(3) of the 
Departments of Veterans Affairs and 
Housing and Urban Development, and 
Independent Agencies Appropriations 
Act, 1996 (42 U.S.C. 1437f note). 
(iii) Impacts on public housing staff-
ing and capacity, including the average 
public housing agency operating, adminis-
trative, and housing assistance payment 
expenditures per household per month. 
(C) Legislative recommendations for flexi-
bilities that could be expanded to all public 
housing agencies and how each flexibility en-
hances housing choice, affordability, and admin-
istrative capacity and efficiency for public hous-
ing agencies. 
(3) PUBLIC AVAILABILITY.— 
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(A) IN
GENERAL.—The Secretary shall 
maintain all reports submitted pursuant to this 
section in a manner that is publicly available, 
accessible, and searchable on the website of the 
Department of Housing and Urban Develop-
ment for not less than 5 years. 
(B) OTHER INFORMATION.— 
(i) IN GENERAL.—Annually, the Sec-
retary shall make the annual plan of the 
Moving to Work demonstration, the Sec-
tion 8 administrative plan, and the admis-
sion and continued occupancy policy pub-
licly available in 1 location on the website 
of the Department of Housing and Urban 
Development for not less than 5 years. 
(ii) DATABASE.—The Secretary may 
establish a searchable database on the 
website of the Department of Housing and 
Urban Development to track the types of 
flexibilities into which Moving to Work 
demonstration public housing agencies 
have opted or for which a waiver was ap-
proved by the Secretary, disaggregated by 
year such flexibilities were adopted or ap-
proved. 
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260 
SEC. 505. REDUCING HOMELESSNESS THROUGH PROGRAM 
REFORM ACT. 
(a) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Banking, Housing, 
and Urban Affairs of the Senate; and 
(B) the Committee on Financial Services 
of the House of Representatives. 
(2) AT
RISK
OF
HOMELESSNESS.—The term 
‘‘at risk of homelessness’’ has the meaning given the 
term in section 401 of the McKinney-Vento Home-
less Assistance Act (42 U.S.C. 11360). 
(3) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Housing and Urban De-
velopment. 
(4) HOMELESS.—The term ‘‘homeless’’ has the 
meaning given the term in section 103 of the 
McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11302). 
(5) PUBLIC
HOUSING
AGENCY.—The term 
‘‘public housing agency’’ has the meaning given the 
term in section 3(b) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(b)). 
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261 
(6) SECRETARY.—The term ‘‘Secretary’’, except 
as otherwise provided, means the Secretary of Hous-
ing and Urban Development. 
(b) ADMINISTRATIVE COSTS FOR THE EMERGENCY 
SOLUTIONS
GRANTS
PROGRAM.—Section 418 of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11378) is amended by striking ‘‘7.5 percent’’ and insert-
ing ‘‘10 percent’’. 
(c) AMENDMENTS TO THE CONTINUUM OF CARE 
PROGRAM.— 
(1) IN GENERAL.—Subtitle C of title IV of the 
McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11381 et seq.) is amended— 
(A) 
in 
section 
402(g) 
(42 
U.S.C. 
11360a(g))— 
(i) by redesignating paragraph (2) as 
paragraph (3); and 
(ii) by inserting after paragraph (1) 
the following: 
‘‘(2) TIME LIMIT ON DESIGNATION.—The Sec-
retary— 
‘‘(A) shall accept applications for designa-
tion as a unified funding agency annually or bi-
ennially, which designation shall be effective for 
not more than 2 years; and 
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‘‘(B) may, on an annual or biennial basis, 
renew any designation under subparagraph 
(A).’’; 
(B) in section 422 (42 U.S.C. 11382)— 
(i) in subsection (b)— 
(I) by striking ‘‘The Secretary’’ 
and inserting the following: 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary’’; and 
(II) by adding at the end the fol-
lowing: 
‘‘(2) 2-YEAR
NOTIFICATION.—Subject to the 
availability of appropriations, the Secretary may 
issue a notification of funding availability for grants 
awarded under this subtitle that provides funding 
for 2 successive fiscal years, which shall— 
‘‘(A) award funds for the second year of 
projects, including adjustments under sub-
section (f), unless the project is underper-
forming, as determined by the collaborative ap-
plicant, and the collaborative applicant applies 
to replace the project with a new project; and 
‘‘(B) include— 
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‘‘(i) the method for applying for and 
awarding projects to replace underper-
forming projects in year 2; 
‘‘(ii) the method for applying for and 
awarding renewals of expiring grants for 
projects that were not eligible for renewal 
in the first fiscal year; 
‘‘(iii) the method for allocating any 
amounts in the second fiscal year that are 
in excess of the amount needed to fund the 
second fiscal year of all grants awarded in 
the first fiscal year; 
‘‘(iv) the method of applying for and 
awarding grants, which are 1-year transi-
tion grants awarded by the Secretary to 
project sponsors for activities under this 
subtitle to transition from 1 eligible activ-
ity to another eligible activity if the recipi-
ent— 
‘‘(I) has the consent of the con-
tinuum of care; and 
‘‘(II) meets standards determined 
by the Secretary; 
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264 
‘‘(C) announce by notice the award of sec-
ond fiscal year funding and awards for new and 
renewal projects; and 
‘‘(D) identify the process by which the Sec-
retary may approve replacement of a collabo-
rative applicant that is not a unified funding 
agency to receive the award in the second fiscal 
year.’’; 
(ii) in subsection (c)(2)— 
(I) by striking ‘‘(A) IN
GEN-
ERAL.—Except as provided in sub-
paragraph (B), the Secretary’’ and in-
serting ‘‘The Secretary’’; and 
(II) by striking subparagraph 
(B); and 
(iii) in subsection (e), by striking ‘‘1 
year’’ and inserting ‘‘2 years’’; 
(C) in section 423(a) (42 U.S.C. 11383)— 
(i) in paragraph (4), in the third sen-
tence— 
(I) by striking ‘‘, at the discre-
tion of the applicant and the project 
sponsor,’’; and 
(II) by inserting ‘‘not more than’’ 
before ‘‘15 years’’; 
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(ii) in paragraph (7), in the matter 
preceding subparagraph (A), by inserting 
‘‘payment of not more than 6 months of 
arrears for rent and utility expenses,’’ 
after ‘‘moving costs,’’; and 
(iii) in paragraph (10), by striking ‘‘3 
percent’’ and inserting ‘‘the greater of ei-
ther $70,000 or 5 percent’’; 
(D) in section 425 (42 U.S.C. 11385), by 
adding at the end the following: 
‘‘(f) ADJUSTMENT OF COSTS.—Not later than 1 year 
after the date of enactment of this subsection, and on a 
biennial basis thereafter, the Comptroller General of the 
United States— 
‘‘(1) shall study the hiring, retention, and com-
pensation levels of the workforce providing the serv-
ices described in subsection (c), including executive 
directors, case managers, and frontline staff, and ex-
amine whether low compensation is undermining 
program effectiveness; 
‘‘(2) shall submit to the appropriate congres-
sional committees a report on any findings, and to 
the Secretary any recommendations, as the Comp-
troller General considers appropriate regarding fund-
ing levels for the cost of the supportive services and 
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266 
the staffing to provide the services described in sub-
section (c); and 
‘‘(3) in carrying out the study under paragraph 
(1), may reference the Consumer Price Index or 
other similar surveys.’’; 
(E) in section 426 (42 U.S.C. 11386), by 
adding at the end the following: 
‘‘(h) INSPECTIONS.—When complying with inspection 
requirements for a housing unit provided to a homeless 
individual or family using assistance under this subtitle, 
the Secretary may allow a grantee to— 
‘‘(1) conduct a pre-inspection not more than 60 
days before leasing the unit; 
‘‘(2) if the unit is located in a rural or small 
area, conduct a remote or video inspection of a unit; 
and 
‘‘(3) allow the unit to be leased prior to comple-
tion of an inspection if the unit passed an alter-
native Federal inspection within the preceding 12- 
month period, so long as the unit is inspected not 
later than 15 days after the start of the lease.’’; and 
(F) in section 430 (42 U.S.C. 11386d), by 
adding at the end the following: 
‘‘(d) COSTS PAID BY PROGRAM INCOME.—With re-
spect to grant amounts awarded under this subtitle, costs 
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267 
paid by the program income of a grant recipient may 
count toward the contributions required under subsection 
(a) if the costs— 
‘‘(1) are eligible expenses under this subtitle; 
‘‘(2) meet standards determined by the Sec-
retary; and 
‘‘(3) supplement activities carried out by the re-
cipient under this subtitle.’’. 
(2) OTHER MODIFICATIONS.— 
(A) DEFINITIONS.—In this paragraph— 
(i) the terms ‘‘collaborative applicant’’ 
and ‘‘eligible entity’’ have the meanings 
given those terms in section 401 of the 
McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11360); and 
(ii) the terms ‘‘Indian tribe’’ and 
‘‘tribally designated housing entity’’ have 
the meanings given those terms in section 
4 of the Native American Housing Assist-
ance and Self-Determination Act of 1996 
(25 U.S.C. 4103). 
(B) NONAPPLICATION
OF
CIVIL
RIGHTS 
LAWS.—With respect to the funds made avail-
able for the Continuum of Care program au-
thorized under subtitle C of title IV of the 
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268 
McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11381 et seq.) under the heading 
‘‘Homeless Assistance Grants’’ in the Depart-
ment of Housing and Urban Development Ap-
propriations Act, 2021 (Public Law 116–260) 
and under section 231 of the Department of 
Housing and Urban Development Appropria-
tions Act, 2020 (42 U.S.C. 11364a), title VI of 
the Civil Rights Act of 1964 (42 U.S.C. 2000d 
et seq.) and title VIII of the Civil Rights Act 
of 1968 (42 U.S.C. 3601 et seq.) shall not 
apply to applications by or awards for projects 
to be carried out— 
(i) on or off reservation or trust lands 
for awards made to Indian tribes or trib-
ally designated housing entities; or 
(ii) on reservation or trust lands for 
awards made to eligible entities. 
(C) 
CERTIFICATION.—With 
respect 
to 
funds made available for the Continuum of 
Care program authorized under subtitle C of 
title IV of the McKinney-Vento Homeless As-
sistance Act (42 U.S.C. 11381 et seq.) under 
the heading ‘‘Homeless Assistance Grants’’ 
under section 231 of the Department of Hous-
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269 
ing and Urban Development Appropriations 
Act, 2020 (42 U.S.C. 11364a)— 
(i) applications for projects to be car-
ried out on reservations or trust land shall 
contain a certification of consistency with 
an approved Indian housing plan developed 
under section 102 of the Native American 
Housing Assistance and Self-Determina-
tion Act (25 U.S.C. 4112), notwith-
standing section 106 of the Cranston-Gon-
zalez National Affordable Housing Act (42 
U.S.C. 12706) and section 403 of the 
McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11361); 
(ii) Indian tribes and tribally des-
ignated housing entities that are recipients 
of awards for projects on reservations or 
trust land shall certify that they are fol-
lowing an approved housing plan developed 
under section 102 of the Native American 
Housing Assistance and Self-Determina-
tion Act (25 U.S.C. 4112); and 
(iii) a collaborative applicant for a 
Continuum of Care whose geographic area 
includes only reservation and trust land is 
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not required to meet the requirement in 
section 402(f)(2) of the McKinney-Vento 
Homeless 
Assistance 
Act 
(42 
U.S.C. 
11360a(f)(2)). 
(d) AMENDMENTS TO THE HOUSING CHOICE VOUCH-
ER PROGRAM.—Section 8(o)(5) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(5)) is amended 
by adding at the end the following: 
‘‘(C) EXCEPTIONS.—Notwithstanding sub-
paragraph (A)— 
‘‘(i) a public housing agency may ac-
cept a third party income calculation and 
verification of family income for purposes 
of this subsection if— 
‘‘(I) 
the 
calculation 
and 
verification was completed for deter-
mination of income eligibility for a 
Federal program or service during the 
preceding 12-month period; and 
‘‘(II) there has been no change in 
income or family composition since 
the calculation and verification under 
clause (i); and 
‘‘(ii) when using prior year income 
under section 3(a)(7)(B), a public housing 
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agency shall use the income of the family 
as determined by the agency or owner for 
the prior calendar year or another 12- 
month period ending during the preceding 
12 months, taking into consideration any 
redetermination of income between the 
start of such prior calendar year or other 
12-month period and the date of the an-
nual review.’’; 
(e) IMPROVING COORDINATION BETWEEN HEALTH 
CARE SYSTEMS AND SUPPORTIVE SERVICES.—Not later 
than 180 days after the date of enactment of this Act, 
the Secretary of Health and Human Services and the Sec-
retary shall seek to enter into an agreement with the Na-
tional Academies of Sciences, Engineering, and Medicine 
to conduct and submit to the appropriate congressional 
committees an evidence-based, nonpartisan analysis 
that— 
(1) reviews the research on linkages between ac-
cess to affordable health care and homelessness and 
analyzes the effect of greater coordination and part-
nerships between health care organizations, mental 
health and substance use disorder and substance use 
disorder service providers, and housing service pro-
viders, including possible cost-savings from providing 
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greater access to health services, recovery housing, 
or housing-related supportive services for individuals 
experiencing chronic homelessness and other types of 
homelessness; and 
(2) includes policy and program recommenda-
tions for improving access to health care and hous-
ing, health care and housing outcomes, possible cost- 
savings and efficiencies, and best practices. 
(f) DEMONSTRATION AUTHORITY.— 
(1) IN GENERAL.—Subtitle A of title IV of the 
McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11360 et seq.) is amended by adding at the 
end the following: 
‘‘SEC. 409. DEMONSTRATION AUTHORITY. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional com-
mittees’ means— 
‘‘(A) the Committee on Banking, Housing, 
and Urban Affairs of the Senate; and 
‘‘(B) the Committee on Financial Services 
of the House of Representatives. 
‘‘(2) HEALTH CARE ORGANIZATION.—The term 
‘health care organization’ means an entity providing 
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medical or mental and behavioral health care, in-
cluding— 
‘‘(A) a hospital (as defined in section 
1861(e) of the Social Security Act (42 U.S.C. 
1395x(e))); 
‘‘(B) a Federally-qualified health center 
(as defined in section 1905(l)(2) of the Social 
Security Act (42 U.S.C. 1396d(l)(2))) or an-
other community health center eligible to re-
ceive a grant under section 330 of the Public 
Health Service Act (42 U.S.C. 254b); and 
‘‘(C) a licensed or certified provider of evi-
dence-based substance use disorder services or 
mental health services providing such services 
pursuant to funding under a block grant for 
substance use prevention, treatment, and recov-
ery services or a block grant for community 
mental health services under subpart II or sub-
part I, respectively, of part B of title XIX of 
the Public Health Service Act (42 U.S.C. 300x 
et seq.). 
‘‘(3) HOUSING PROVIDER.—The term ‘housing 
provider’ means an entity, including a grant recipi-
ent under subtitle B or C of this title, a public hous-
ing agency (as defined in section 3 of the United 
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274 
States Housing Act of 1937 (42 U.S.C. 1437a)), or 
a federally funded organization or a nonprofit orga-
nization, that administers a program to provide 
housing services to individuals experiencing or at 
risk of homelessness, including rapid re-housing, 
transitional housing, housing choice vouchers, and 
housing-related supportive services. 
‘‘(b) AUTHORITY.—The Secretary may establish 
demonstration projects or partnerships that involve col-
laboration between housing providers and healthcare orga-
nizations to provide housing-related supportive services, 
including— 
‘‘(1) assistance in coordinating data systems in 
a manner that is compliant with the Health Insur-
ance Portability and Accountability Act (Public Law 
104–191); and 
‘‘(2) projects or partnerships that are aimed at 
serving individuals— 
‘‘(A) who are homeless, chronically home-
less, or at risk of homelessness; and 
‘‘(B) with— 
‘‘(i) a high-use of emergency services 
or emergency departments; 
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‘‘(ii) chronic disabilities, including 
physical health or mental health condi-
tions; 
‘‘(iii) substance use disorders; 
‘‘(iv) serious mental illness; or 
‘‘(v) other severe service needs. 
‘‘(c) REPORT.—Not later than 2 years after the date 
of enactment of this Act, and every 4 years thereafter, 
the Secretary shall submit to the appropriate congres-
sional committees a report on each demonstration project 
or partnership established under this section.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The table of contents in section 101(b) of 
the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11301 note) is amended by inserting after 
the item relating to section 408 the following: 
‘‘Sec. 409. Demonstration authority.’’. 
(g) STREAMLINING COORDINATED ENTRY.— 
(1) AUDIT BY THE COMPTROLLER GENERAL.— 
Not later than 1 year after the date of enactment 
of this Act, the Comptroller General of the United 
States shall— 
(A) conduct a multi-community evaluation 
of the operations of coordinated assessment sys-
tems by the Continuum of Care Program under 
subtitle C of title IV of the McKinney-Vento 
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