1486 
assistance payments with an owner or owners of other exist-
ing housing properties, or provide other rental assistance. 
The Secretary shall also take appropriate steps to ensure 
that project-based contracts remain in effect prior to fore-
closure, subject to the exercise of contractual abatement rem-
edies to assist relocation of tenants for imminent major 
threats to health and safety after written notice to and in-
formed consent of the affected tenants and use of other avail-
able remedies, such as partial abatements or receivership. 
After disposition of any multifamily property described 
under this section, the contract and allowable rent levels 
on such properties shall be subject to the requirements under 
section 524 of MAHRAA. 
SEC. 219. Notwithstanding any other provision of law, 
the recipient of a grant under section 202b of the Housing 
Act of 1959 (12 U.S.C. 1701q) after December 26, 2000, 
in accordance with the unnumbered paragraph at the end 
of section 202(b) of such Act, may, at its option, establish 
a single-asset nonprofit entity to own the project and may 
lend the grant funds to such entity, which may be a private 
nonprofit organization described in section 831 of the 
American Homeownership and Economic Opportunity Act 
of 2000.
1487 
SEC. 220. (a) INSPECTIONS.—Section 8(o)(8) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(8)) 
is amended— 
(1) by redesignating subparagraph (E) as sub-
paragraph (G); and 
(2) by striking subparagraph (D) and inserting 
the following new subparagraphs: 
‘‘(D) BIENNIAL INSPECTIONS.— 
‘‘(i) 
REQUIREMENT.—Each 
public 
housing agency providing assistance under 
this subsection (or other entity, as provided 
in paragraph (11)) shall, for each assisted 
dwelling unit, make inspections not less 
often than biennially during the term of the 
housing assistance payments contract for 
the unit to determine whether the unit is 
maintained in accordance with the require-
ments under subparagraph (A). 
‘‘(ii) USE
OF
ALTERNATIVE
INSPEC-
TION
METHOD.—The requirements under 
clause (i) may be complied with by use of 
inspections that qualify as an alternative 
inspection method pursuant to subpara-
graph (E).
1488 
‘‘(iii) RECORDS.—The public housing 
agency (or other entity) shall retain the 
records of the inspection for a reasonable 
time, as determined by the Secretary, and 
shall make the records available upon re-
quest to the Secretary, the Inspector General 
for the Department of Housing and Urban 
Development, and any auditor conducting 
an audit under section 5(h). 
‘‘(iv) MIXED-FINANCE
PROPERTIES.— 
The Secretary may adjust the frequency of 
inspections for mixed-finance properties as-
sisted with vouchers under paragraph (13) 
to facilitate the use of the alternative in-
spections in subparagraph (E). 
‘‘(E) ALTERNATIVE INSPECTION METHOD.— 
An inspection of a property shall qualify as an 
alternative inspection method for purposes of this 
subparagraph if— 
‘‘(i) the inspection was conducted pur-
suant to requirements under a Federal, 
State, or local housing program (including 
the Home investment partnership program 
under title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act and the low-
1489 
income housing tax credit program under 
section 42 of the Internal Revenue Code of 
1986); and 
‘‘(ii) pursuant to such inspection, the 
property was determined to meet the stand-
ards or requirements regarding housing 
quality or safety applicable to properties as-
sisted under such program, and, if a non- 
Federal standard or requirement was used, 
the public housing agency has certified to 
the Secretary that such standard or require-
ment provides the same (or greater) protec-
tion to occupants of dwelling units meeting 
such standard or requirement as would the 
housing quality standards under subpara-
graph (B). 
‘‘(F) INTERIM INSPECTIONS.—Upon notifi-
cation to the public housing agency, by a family 
(on whose behalf tenant-based rental assistance is 
provided under this subsection) or by a govern-
ment official, that the dwelling unit for which 
such assistance is provided does not comply with 
the housing quality standards under subpara-
graph (B), the public housing agency shall in-
spect the dwelling unit—
1490 
‘‘(i) in the case of any condition that 
is life-threatening, within 24 hours after the 
agency’s receipt of such notification, unless 
waived by the Secretary in extraordinary 
circumstances; and 
‘‘(ii) in the case of any condition that 
is not life-threatening, within a reasonable 
time frame, as determined by the Sec-
retary.’’. 
(b) EFFECTIVE DATE.—The amendments in subsection 
(a) shall take effect upon such date as the Secretary deter-
mines, in the Secretary’s sole discretion, through the Sec-
retary’s publication of such date in the Federal Register, 
as part of regulations promulgated, or a notice issued, by 
the Secretary to implement such amendments. 
SEC. 221. The commitment authority provided under 
the heading ‘‘Community Development Loan Guarantees 
Program Account’’ may be used to guarantee, or make com-
mitments to guarantee, notes, or other obligations issued by 
any State on behalf of non-entitlement communities in the 
State in accordance with the requirements of section 108 
of the Housing and Community Development Act of 1974: 
Provided, That any State receiving such a guarantee or 
commitment shall distribute all funds subject to such guar-
1491 
antee to the units of general local government in non-enti-
tlement areas that received the commitment. 
SEC. 222. Public housing agencies that own and oper-
ate 400 or fewer public housing units may elect to be exempt 
from any asset management requirement imposed by the 
Secretary of Housing and Urban Development in connec-
tion with the operating fund rule: Provided, That an agency 
seeking a discontinuance of a reduction of subsidy under 
the operating fund formula shall not be exempt from asset 
management requirements. 
SEC. 223. With respect to the use of amounts provided 
in this Act and in future Acts for the operation, capital 
improvement and management of public housing as author-
ized by sections 9(d) and 9(e) of the United States Housing 
Act of 1937 (42 U.S.C. 1437g(d) and (e)), the Secretary 
shall not impose any requirement or guideline relating to 
asset management that restricts or limits in any way the 
use of capital funds for central office costs pursuant to sec-
tion 9(g)(1) or 9(g)(2) of the United States Housing Act 
of 1937 (42 U.S.C. 1437g(g)(1), (2)): Provided, That a pub-
lic housing agency may not use capital funds authorized 
under section 9(d) for activities that are eligible under sec-
tion 9(e) for assistance with amounts from the operating 
fund in excess of the amounts permitted under section 
9(g)(1) or 9(g)(2).
1492 
SEC. 224. No official or employee of the Department 
of Housing and Urban Development shall be designated as 
an allotment holder unless the Office of the Chief Financial 
Officer has determined that such allotment holder has im-
plemented an adequate system of funds control and has re-
ceived training in funds control procedures and directives. 
The Chief Financial Officer shall ensure that there is a 
trained allotment holder for each HUD sub-office under the 
accounts ‘‘Executive Offices’’ and ‘‘Administrative Support 
Offices,’’ as well as each account receiving appropriations 
for ‘‘Program Office Salaries and Expenses’’ within the De-
partment of Housing and Urban Development. 
SEC. 225. The Secretary of Housing and Urban Devel-
opment shall report annually to the House and Senate 
Committees on Appropriations on the status of all section 
8 project-based housing, including the number of all project- 
based units by region as well as an analysis of all federally 
subsidized housing being refinanced under the Mark-to- 
Market program. The Secretary shall in the report identify 
all existing units maintained by region as section 8 project- 
based units and all project-based units that have opted out 
of section 8 or have otherwise been eliminated as section 
8 project-based units. The Secretary shall identify in detail 
and by project all the efforts made by the Department to 
preserve all section 8 project-based housing units and all
1493 
the reasons for any units which opted out or otherwise were 
lost as section 8 project-based units. Such analysis shall in-
clude a review of the impact of the loss of any subsidized 
units in that housing marketplace, such as the impact of 
cost and the loss of available subsidized, low-income housing 
in areas with scarce housing resources for low-income fami-
lies. 
SEC. 226. The Secretary of the Department of Housing 
and Urban Development shall, for fiscal year 2014 and sub-
sequent fiscal years, notify the public through the Federal 
Register and other means, as determined appropriate, of 
the issuance of a notice of the availability of assistance or 
notice of funding availability (NOFA) for any program or 
discretionary fund administered by the Secretary that is 
to be competitively awarded. Notwithstanding any other 
provision of law, for fiscal year 2014 and subsequent fiscal 
years, the Secretary may make the NOFA available only 
on the Internet at the appropriate Government Web site or 
through other electronic media, as determined by the Sec-
retary. 
SEC. 227. Payment of attorney fees in program-related 
litigation must be paid from individual program office per-
sonnel benefits and compensation funding. The annual 
budget submission for program office personnel benefit and
1494 
compensation funding must include program-related litiga-
tion costs for attorney fees as a separate line item request. 
SEC. 228. The Secretary of the Department of Housing 
and Urban Development is authorized to transfer up to 5 
percent or $5,000,000, whichever is less, of the funds appro-
priated for any office funded under the heading ‘‘Adminis-
trative Support Offices’’ to any other office funded under 
such heading: Provided, That no appropriation for any of-
fice funded under the heading ‘‘Administrative Support Of-
fices’’ shall be increased or decreased by more than 5 percent 
or $5,000,000, whichever is less, without prior written ap-
proval of the House and Senate Committees on Appropria-
tions: Provided further, That the Secretary is authorized to 
transfer up to 5 percent or $5,000,000, whichever is less, 
of the funds appropriated for any account funded under the 
general heading ‘‘Program Office Salaries and Expenses’’ 
to any other account funded under such heading: Provided 
further, That no appropriation for any account funded 
under the general heading ‘‘Program Office Salaries and 
Expenses’’ shall be increased or decreased by more than 5 
percent or $5,000,000, whichever is less, without prior writ-
ten approval of the House and Senate Committees on Ap-
propriations: Provided further, That the Secretary may 
transfer funds made available for salaries and expenses be-
tween any office funded under the heading ‘‘Administrative
1495 
Support Offices’’ and any account funded under the general 
heading ‘‘Program Office Salaries and Expenses’’, but only 
with the prior written approval of the House and Senate 
Committees on Appropriations. 
SEC. 229. The Disaster Housing Assistance Programs, 
administered by the Department of Housing and Urban De-
velopment, shall be considered a ‘‘program of the Depart-
ment of Housing and Urban Development’’ under section 
904 of the McKinney Act for the purpose of income 
verifications and matching. 
SEC. 230. (a) The Secretary of Housing and Urban 
Development shall take the required actions under sub-
section (b) when a multifamily housing project with a sec-
tion 8 contract or contract for similar project-based assist-
ance: 
(1) receives a Real Estate Assessment Center 
(REAC) score of 30 or less; or 
(2) receives a REAC score between 31 and 59 
and: 
(A) fails to certify in writing to HUD with-
in 60 days that all deficiencies have been cor-
rected; or 
(B) receives consecutive scores of less than 
60 on REAC inspections.
1496 
Such requirements shall apply to insured and noninsured 
projects with assistance attached to the units under section 
8 of the united States housing Act of 1937 (42 U.S.C. 
1437f), but do not apply to such units assisted under section 
8(o)(13) (42 U.S.C. 1437f(o)(13)) or to public housing units 
assisted with capital or operating funds under section 9 of 
the United States Housing Act of 1937 (42 U.S.C. 1437g). 
(b) The Secretary shall take the following required ac-
tions as authorized under subsection (a)— 
(1) The Secretary shall notify the owner and 
provide an opportunity for response within 30 days. 
If the violations remain, the Secretary shall develop 
a Compliance, Disposition and Enforcement Plan 
within 60 days, with a specified timetable for cor-
recting all deficiencies. The Secretary shall provide 
notice of the Plan to the owner, tenants, the local gov-
ernment, any mortgagees, and any contract adminis-
trator. 
(2) At the end of the term of the Compliance, 
Disposition and Enforcement Plan, if the owner fails 
to fully comply with such plan, the Secretary may re-
quire immediate replacement of project management 
with a management agent approved by the Secretary, 
and shall take one or more of the following actions,
1497 
and provide additional notice of those actions to the 
owner and the parties specified above: 
(A) impose civil money penalties; 
(B) abate the section 8 contract, including 
partial abatement, as determined by the Sec-
retary, until all deficiencies have been corrected; 
(C) pursue transfer of the project to an 
owner, approved by the Secretary under estab-
lished procedures, which will be obligated to 
promptly make all required repairs and to ac-
cept renewal of the assistance contract as long as 
such renewal is offered; or 
(D) seek judicial appointment of a receiver 
to manage the property and cure all project defi-
ciencies or seek a judicial order of specific per-
formance requiring the owner to cure all project 
deficiencies. 
(c) The Secretary shall also take appropriate steps to 
ensure that project-based contracts remain in effect, subject 
to the exercise of contractual abatement remedies to assist 
relocation of tenants for imminent major threats to health 
and safety after written notice to and informed consent of 
the affected tenants and use of other remedies set forth 
above. To the extent the Secretary determines, in consulta-
tion with the tenants and the local government, that the
1498 
property is not feasible for continued rental assistance pay-
ments under such section 8 or other programs, based on con-
sideration of (1) the costs of rehabilitating and operating 
the property and all available Federal, State, and local re-
sources, including rent adjustments under section 524 of the 
Multifamily Assisted Housing Reform and Affordability 
Act of 1997 (‘‘MAHRAA’’) and (2) environmental condi-
tions that cannot be remedied in a cost-effective fashion, the 
Secretary may, in consultation with the tenants of that 
property, contract for project-based rental assistance pay-
ments with an owner or owners of other existing housing 
properties, or provide other rental assistance. The Secretary 
shall report semi-annually on all properties covered by this 
section that are assessed through the Real Estate Assessment 
Center and have physical inspection scores of less than 30 
or have consecutive physical inspection scores of less than 
60. The report shall include: 
(1) The enforcement actions being taken to ad-
dress such conditions, including imposition of civil 
money penalties and termination of subsidies, and 
identify properties that have such conditions multiple 
times; and 
(2) Actions that the Department of Housing and 
Urban Development is taking to protect tenants of 
such identified properties.
1499 
SEC. 231. None of the funds made available by this 
Act, or any other Act, for purposes authorized under section 
8 (only with respect to the tenant-based rental assistance 
program) and section 9 of the United States Housing Act 
of 1937 (42 U.S.C. 1437 et seq.), may be used by any public 
housing agency for any amount of salary, for the chief exec-
utive officer of which, or any other official or employee of 
which, that exceeds the annual rate of basic pay payable 
for a position at level IV of the Executive Schedule at any 
time during any public housing agency fiscal year 2014. 
SEC. 232. Title II of division K of Public Law 110– 
161 is amended by striking the item related to ‘‘Flexible 
Subsidy Fund’’. 
SEC. 233. Paragraph (1) of section 242(i) of the Na-
tional Housing Act (12 U.S.C. 1715z–7(i)(1)) is amended 
by striking ‘‘July 31, 2011’’ and inserting ‘‘July 31, 2016’’. 
SEC. 234. Section 24 of the United States Housing Act 
of 1937 (42 U.S.C. 1437v) is amended— 
(1) in subsection (m)(1), by striking ‘‘fiscal 
year’’ and all that follows through the period at the 
end and inserting ‘‘fiscal year 2014.’’; and 
(2) in subsection (o), by striking ‘‘September’’ 
and all that follows through the period at the end and 
inserting ‘‘September 30, 2014.’’.
1500 
SEC. 235. Of the amounts made available for salaries 
and expenses under all accounts under this title (except for 
the Office of Inspector General account), a total of up to 
$5,000,000 may be transferred to and merged with amounts 
made available in the ‘‘Information Technology Fund’’ ac-
count under this title. 
SEC. 236. The proviso under the ‘‘Community Develop-
ment Fund’’ heading in Public Laws 109–148, 109–234, 
110–252, and 110–329 which requires the Secretary to es-
tablish procedures to prevent duplication of benefits and to 
report to the Committees on Appropriations on all steps to 
prevent fraud and abuse is amended by striking ‘‘quarterly’’ 
and inserting ‘‘annually’’. 
SEC. 237. None of the funds in this Act may be avail-
able for the doctoral dissertation research grant program 
at the Department of Housing and Urban Development. 
SEC. 238. (a) Section 3(b) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437a) is amended— 
(1) in paragraph (2), by designating the first 
sentence as subparagraph (A), the second sentence as 
subparagraph (B), and the remaining sentences as 
subparagraph (D), and by inserting after subpara-
graph (B) the following new subparagraph (C):
1501 
‘‘(C) The term extremely low-income fami-
lies means very low-income families whose in-
comes do not exceed the higher of— 
‘‘(i) the poverty guidelines updated pe-
riodically by the Department of Health and 
Human Services under the authority of sec-
tion 673(2) of the Community Services 
Block Grant Act applicable to a family of 
the size involved (except that this clause 
shall not apply in the case of public housing 
agencies or projects located in Puerto Rico 
or any other territory or possession of the 
United States); or 
‘‘(ii) 30 percent of the median family 
income for the area, as determined by the 
Secretary, with adjustments for smaller and 
larger families (except that the Secretary 
may establish income ceilings higher or 
lower than 30 percent of the median for the 
area on the basis of the Secretary’s findings 
that such variations are necessary because 
of unusually high or low family incomes).’’; 
and 
(b) Section 16 of the United States Housing Act of 
1937 (42 U.S.C. 1437n) is amended—
1502 
(1) in subsection (a)(2)(A); 
(2) in subsection (b)(1); and 
(3) in subsection (c)(3), by striking ‘‘families 
whose incomes’’ and all that follows through ‘‘low 
family incomes’’ and inserting ‘‘extremely low-income 
families’’. 
SEC. 239. The language under the heading Rental As-
sistance Demonstration in the Department of Housing and 
Urban Development Appropriations Act, 2012 (Public Law 
112–55) is amended in the penultimate proviso by striking 
‘‘and 2013,’’ and inserting ‘‘through December 31, 2014’’. 
SEC. 240. None of the funds in this Act provided to 
the Department of Housing and Urban Development may 
be used to make a grant award unless the Secretary notifies 
the House and Senate Committees on Appropriations not 
less than 3 full business days before any project, State, lo-
cality, housing authority, tribe, nonprofit organization, or 
other entity selected to receive a grant award is announced 
by the Department or its offices. 
SEC. 241. Section 202(f)(2) of the Housing Act of 1959 
(12 U.S.C. 1701q(f)(2)) is amended— 
(a) in paragraph (A)— 
(1) by striking the matter before clause (i) and 
inserting the following: ‘‘The Secretary shall establish 
procedures to delegate the award, review and proc-
1503 
essing of projects, selected by the Secretary in a na-
tional competition, to a State or local housing agency 
that—’’; and 
(2) in clause (iii), by striking ‘‘capital advance’’ 
and inserting ‘‘funding’’, and by replacing the comma 
with a semi-colon; 
(b) in subparagraph (B), by striking ‘‘capital ad-
vances’’ and inserting ‘‘funding under this section’’; 
(c) in subparagraph (C), by striking the first sentence; 
(d) by redesignating subparagraph (D) as subpara-
graph (E), and in the redesignated subparagraph (E)— 
(1) by striking ‘‘a capital advance’’ and insert-
ing ‘‘funding under this section’’; and 
(2) by striking ‘‘capital advance amounts or 
project rental assistance’’ and inserting ‘‘funding 
under this section’’; and 
(e) by inserting the following new subparagraph after 
subparagraph (C): 
‘‘(D) Assistance under subsection (c)(2) may 
be provided for projects which identify in the ap-
plication for assistance a defined health and 
other supportive services program including 
sources of financing the services for eligible resi-
dents and memoranda of understanding with 
service provision agencies and organizations to
1504 
provide such services for eligible residents at 
their request. Such supportive services plan and 
memoranda of understating shall— 
‘‘(i) identify the target populations to 
be served by the project; 
‘‘(ii) set forth methods for outreach and 
referral; 
‘‘(iii) identify the health and other 
supportive services to be provided; and 
‘‘(iv) identify the terms under which 
such services will be made available to resi-
dents of the project.’’. 
SEC. 242. Section 8(o)(2) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(2)), is amended by adding 
at the end the following new subparagraph: 
‘‘(D) UTILITY ALLOWANCE.— 
‘‘(i) GENERAL.—In determining the 
monthly assistance payment for a family 
under subparagraphs (A) and (B), the 
amount allowed for tenant-paid utilities 
shall not exceed the appropriate utility al-
lowance for the family unit size as deter-
mined by the public housing agency regard-
less of the size of the dwelling unit leased by 
the family.
1505 
‘‘(ii) EXCEPTION FOR FAMILIES IN IN-
CLUDING
PERSONS
WITH
DISABILITIES.— 
Notwithstanding subparagraph (A), upon 
request by a family that includes a person 
with disabilities, the public housing agency 
shall approve a utility allowance that is 
higher than the applicable amount on the 
utility allowance schedule if a higher utility 
allowance is needed as a reasonable accom-
modation to make the program accessible to 
and usable by the family member with a 
disability.’’. 
SEC. 243. The Secretary shall establish by notice such 
requirements as may be necessary to implement sections 
210, 212, 220, 238, and 242 under this title and the notice 
shall take effect upon issuance: Provided, That the Secretary 
shall commence rulemaking based on the initial notice no 
later than the expiration of the 6-month period following 
issuance of the notice and the rulemaking shall allow for 
the opportunity for public comment. 
This title may be cited as the ‘‘Department of Housing 
and Urban Development Appropriations Act, 2014’’.
1506 
TITLE III 
RELATED AGENCIES 
ACCESS BOARD 
SALARIES AND EXPENSES 
For expenses necessary for the Access Board, as author-
ized by section 502 of the Rehabilitation Act of 1973, as 
amended, $7,448,000: Provided, That, notwithstanding any 
other provision of law, there may be credited to this appro-
priation funds received for publications and training ex-
penses. 
FEDERAL MARITIME COMMISSION 
SALARIES AND EXPENSES 
For necessary expenses of the Federal Maritime Com-
mission as authorized by section 201(d) of the Merchant 
Marine Act, 1936, as amended (46 U.S.C. 307), including 
services as authorized by 5 U.S.C. 3109; hire of passenger 
motor vehicles as authorized by 31 U.S.C. 1343(b); and uni-
forms or allowances therefore, as authorized by 5 U.S.C. 
5901–5902, $24,669,000: Provided, That not to exceed 
$2,000 shall be available for official reception and represen-
tation expenses.
1507 
NATIONAL RAILROAD PASSENGER CORPORATION OFFICE 
OF INSPECTOR GENERAL 
SALARIES AND EXPENSES 
For necessary expenses of the Office of Inspector Gen-
eral for the National Railroad Passenger Corporation to 
carry out the provisions of the Inspector General Act of 
1978, as amended, $23,499,000: Provided, That the Inspec-
tor General shall have all necessary authority, in carrying 
out the duties specified in the Inspector General Act, as 
amended (5 U.S.C. App. 3), to investigate allegations of 
fraud, including false statements to the government (18 
U.S.C. 1001), by any person or entity that is subject to 
regulation by the National Railroad Passenger Corpora-
tion: Provided further, That the Inspector General may 
enter into contracts and other arrangements for audits, 
studies, analyses, and other services with public agencies 
and with private persons, subject to the applicable laws and 
regulations that govern the obtaining of such services within 
the National Railroad Passenger Corporation: Provided 
further, That the Inspector General may select, appoint, 
and employ such officers and employees as may be nec-
essary for carrying out the functions, powers, and duties 
of the Office of Inspector General, subject to the applicable 
laws and regulations that govern such selections, appoint-
ments, and employment within Amtrak: Provided further,
1508 
That concurrent with the President’s budget request for fis-
cal year 2015, the Inspector General shall submit to the 
House and Senate Committees on Appropriations a budget 
request for fiscal year 2015 in similar format and substance 
to those submitted by executive agencies of the Federal Gov-
ernment. 
NATIONAL TRANSPORTATION SAFETY BOARD 
SALARIES AND EXPENSES 
For necessary expenses of the National Transportation 
Safety Board, including hire of passenger motor vehicles 
and aircraft; services as authorized by 5 U.S.C. 3109, but 
at rates for individuals not to exceed the per diem rate 
equivalent to the rate for a GS–15; uniforms, or allowances 
therefor, as authorized by law (5 U.S.C. 5901–5902), 
$103,027,000, of which not to exceed $2,000 may be used 
for official reception and representation expenses. The 
amounts made available to the National Transportation 
Safety Board in this Act include amounts necessary to 
make lease payments on an obligation incurred in fiscal 
year 2001 for a capital lease. 
NEIGHBORHOOD REINVESTMENT CORPORATION 
PAYMENT TO THE NEIGHBORHOOD REINVESTMENT 
CORPORATION 
For payment to the Neighborhood Reinvestment Cor-
poration for use in neighborhood reinvestment activities, as
1509 
authorized by the Neighborhood Reinvestment Corporation 
Act (42 U.S.C. 8101–8107), $136,600,000, of which 
$5,000,000 shall be for a multi-family rental housing pro-
gram: Provided, That in addition, $67,500,000 shall be 
made available until expended to the Neighborhood Rein-
vestment Corporation for mortgage foreclosure mitigation 
activities, under the following terms and conditions: 
(1) The Neighborhood Reinvestment Corporation 
(‘‘NRC’’) shall make grants to counseling inter-
mediaries approved by the Department of Housing 
and Urban Development (HUD) (with match to be 
determined by the NRC based on affordability and the 
economic conditions of an area; a match also may be 
waived by the NRC based on the aforementioned con-
ditions) to provide mortgage foreclosure mitigation 
assistance primarily to States and areas with high 
rates of defaults and foreclosures to help eliminate the 
default and foreclosure of mortgages of owner-occupied 
single-family homes that are at risk of such fore-
closure. Other than areas with high rates of defaults 
and foreclosures, grants may also be provided to ap-
proved counseling intermediaries based on a geo-
graphic analysis of the Nation by the NRC which de-
termines where there is a prevalence of mortgages that 
are risky and likely to fail, including any trends for
1510 
mortgages that are likely to default and face fore-
closure. A State Housing Finance Agency may also be 
eligible where the State Housing Finance Agency 
meets all the requirements under this paragraph. A 
HUD-approved counseling intermediary shall meet 
certain mortgage foreclosure mitigation assistance 
counseling requirements, as determined by the NRC, 
and shall be approved by HUD or the NRC as meet-
ing these requirements. 
(2) Mortgage foreclosure mitigation assistance 
shall only be made available to homeowners of owner- 
occupied homes with mortgages in default or in dan-
ger of default. These mortgages shall likely be subject 
to a foreclosure action and homeowners will be pro-
vided such assistance that shall consist of activities 
that are likely to prevent foreclosures and result in 
the long-term affordability of the mortgage retained 
pursuant to such activity or another positive outcome 
for the homeowner. No funds made available under 
this paragraph may be provided directly to lenders or 
homeowners to discharge outstanding mortgage bal-
ances or for any other direct debt reduction payments. 
(3) The use of mortgage foreclosure mitigation 
assistance by approved counseling intermediaries and 
State Housing Finance Agencies shall involve a rea-
1511 
sonable analysis of the borrower’s financial situation, 
an evaluation of the current value of the property 
that is subject to the mortgage, counseling regarding 
the assumption of the mortgage by another non-Fed-
eral party, counseling regarding the possible purchase 
of the mortgage by a non-Federal third party, coun-
seling and advice of all likely restructuring and refi-
nancing strategies or the approval of a work-out 
strategy by all interested parties. 
(4) NRC may provide up to 15 percent of the 
total funds under this paragraph to its own charter 
members with expertise in foreclosure prevention 
counseling, subject to a certification by the NRC that 
the procedures for selection do not consist of any pro-
cedures or activities that could be construed as an un-
acceptable conflict of interest or have the appearance 
of impropriety. 
(5) HUD-approved counseling entities and State 
Housing Finance Agencies receiving funds under this 
paragraph shall have demonstrated experience in suc-
cessfully working with financial institutions as well 
as borrowers facing default, delinquency and fore-
closure as well as documented counseling capacity, 
outreach capacity, past successful performance and 
positive outcomes with documented counseling plans