193 
‘‘(ii) the cost and annual change, per 
family participating in the program, of 
providing housing assistance referred to in 
clause (i) that is administered by the agen-
cy; 
‘‘(iii) any cost savings and additional 
housing resulting from the program; 
‘‘(iv) the household incomes, and 
changes in such incomes, of members of 
families participating in the program who 
are not exempt from work requirements; 
and 
‘‘(v) such other factors as the Sec-
retary considers appropriate.’’; 
(C) by redesignating paragraphs (3) and 
(4) as paragraphs (5) and (6); and 
(D) by inserting after paragraph (2) the 
following new paragraphs: 
‘‘(3) ANNUAL BUDGET PLAN.— 
‘‘(A) REQUIREMENT.—Each agency shall 
submit annually to the Secretary, together with 
the report under paragraph (2), a budget plan 
for the program of the agency for the upcoming 
year and shall make such budget plan publicly 
available. 
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‘‘(B) FORM AND METRICS.—Each annual 
budget plan shall be set forth in a standard 
form, prescribed by the Secretary and shall uti-
lize a common budget metric that allows for 
comparison of the budget plans of all public 
housing agencies participating in the program. 
‘‘(C) CONTENT.—Each annual budget plan 
shall include such content as the Secretary shall 
specify, which shall include— 
‘‘(i) a description and explanation of 
all new rules and policy changes adopted 
by the agency in accordance with this sec-
tion and the program under this section 
and, with respect to such new rules and 
policy changes— 
‘‘(I) a description of the effect 
such rules and changes will have on 
the operation of the agency as com-
pared to the preceding year and as 
compared to the operations of the 
agency other than under the program 
under this section; 
‘‘(II) a description of the extent 
to which such rules and changes 
helped to achieve the annual goals 
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identified in the public housing agen-
cy’s application pursuant to sub-
section (d)(1)(E) and, in the case of 
any such goals not achieved, a de-
scription of the extent to which such 
goals were not achieved and the rea-
sons for such failure; and 
‘‘(III) whether the adoption of 
such new rules and policy changes re-
quired an adjustment in the annual 
goals identified in the public housing 
agency’s application pursuant to sub-
section (d)(1); 
‘‘(ii) a plan for all capital assets and 
anticipated construction and rehabilitation 
activities of the public housing agency in 
the upcoming year and a description of 
whether and how such activities are au-
thorized and assisted under the program 
under this section; and 
‘‘(iii) assurances satisfactory to the 
Secretary that such plan will conform with 
all applicable provisions of the Civil Rights 
Act of 1964 (42 U.S.C. 2000d et seq.), the 
Fair Housing Act (42 U.S.C. 3601 et 
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seq.), the Rehabilitation Act of 1973 (29 
U.S.C. 701 et seq.), and the Americans 
with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.). 
‘‘(4) PUBLIC AND RESIDENT PARTICIPATION.— 
‘‘(A) NOTIFICATION OF RESIDENTS.—Each 
public housing agency shall annually hold a 
meeting to notify all assisted families partici-
pating in the program of the public housing 
agency of the contents of the report under 
paragraph (2) for such year and budget plan 
under paragraph (3) for such year and impacts 
on such assisted families. Any public housing 
agency that assists, in the aggregate, more than 
50,000 families or assists families in multiple 
counties shall hold as many meetings as nec-
essary to provide each assisted family a good- 
faith opportunity to attend such a meeting. 
‘‘(B) PUBLIC COMMENT.—Each annual re-
port under paragraph (2) and annual plan 
under paragraph (3) shall— 
‘‘(i) be made available for inspection 
and public comment 30 days before the 
meeting required by subparagraph (A) re-
garding such plan or report; and 
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197 
‘‘(ii) be approved in a public meeting 
of the board of directors or other gov-
erning body of the public housing agency 
before submission to the Secretary. 
‘‘(C) PUBLIC AVAILABILITY.—Each annual 
report under paragraph (2) and annual plan 
under paragraph (3) shall, upon submission to 
the Secretary, be made publicly available and 
shall include all comments provided pursuant to 
subparagraph (B).’’; 
(9) in subsection (h)— 
(A) in paragraph (1), by striking ‘‘dem-
onstration’’ and inserting ‘‘program under this 
section’’; and 
(B) by striking paragraph (2) and insert-
ing the following: 
‘‘(2) REVIEW.—The Secretary shall annually 
review the activities of each public housing agency 
participating in the program under this section and, 
based on such review and the information submitted 
by the agency pursuant to subsection (g), deter-
mine— 
‘‘(A) the impact and effectiveness of the 
public housing agency’s program and activities 
in achieving each of the purposes of the pro-
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198 
gram specified in subsection (a), including an 
assessment of such impact and effectiveness 
using the common set of budget metrics estab-
lished pursuant to subsection (d)(1)(D); 
‘‘(B) the progress of the public housing 
agency toward meeting the goals identified in 
the public housing agency’s application pursu-
ant to subsection (d)(1)(E), using the metrics 
identified in the public housing agency’s appli-
cation pursuant to such subsection; and 
‘‘(C) the extent of compliance by the public 
housing agency with the requirements of the 
program under this section and, in determining 
such extent of compliance, shall take into con-
sideration the unique characteristics of the pub-
lic housing agency. 
‘‘(3) VERIFICATION OF ACCURACY.—In assess-
ing information submitted by public housing agen-
cies pursuant to subsection (g) and in reviewing 
such information and making determinations pursu-
ant to paragraph (2) of this subsection, the Sec-
retary shall carry out control activities and proce-
dures designed to verify the accuracy of such infor-
mation, which shall include auditing a representative 
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sample of such information using standard statis-
tical methods. 
‘‘(4) CONTINUED
PARTICIPATION.—The Sec-
retary shall not terminate the participation of any 
public housing agency in the program under this 
section unless the Secretary finds that the agency— 
‘‘(A) is in material default of the condi-
tions and obligations under the agreement en-
tered into between the agency and the Secretary 
providing for such participation; 
‘‘(B) as demonstrated in its reports under 
subsection (g)(2) and its annual budget plans 
under subsection (g)(3), has persistently failed 
to meet the goals identified in its application, 
and the reasons or circumstances specified in 
the public housing agency’s reports and plans 
for such failure are not sufficient to justify the 
continued failure; 
‘‘(C) has misused or misappropriated 
funds; 
‘‘(D) has failed to make a good faith effort 
to carry out the purposes of the program speci-
fied in subsection (a); or 
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200 
‘‘(E) has failed to cure a material defi-
ciency in performance after notice and an op-
portunity to correct the deficiency. 
‘‘(5) CORRECTIVE ACTION PROGRAM.—The Sec-
retary shall carry out a program— 
‘‘(A) to identify public housing agencies 
participating in the program under this section 
that are at risk of termination of such partici-
pation pursuant to paragraph (6); 
‘‘(B) to consult with such public housing 
agencies regarding actions that may be taken to 
avoid such termination; 
‘‘(C) to establish goals and timelines for 
such corrective actions; and 
‘‘(D) to provide appropriate technical as-
sistance designed to facilitate such actions and 
avoid such termination. 
‘‘(6) TERMINATION
OF
PARTICIPATION.—Any 
public housing agency whose participation in the 
program under this section is terminated shall be 
subject to the provisions of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437 et seq.) and all 
other provisions of law applicable to public housing 
agencies not participating in the program, except 
that the Secretary shall provide a transition period, 
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201 
that begins upon such termination and is not shorter 
than 18 months, for such public housing agencies to 
come into compliance with such laws. 
‘‘(7) REPORTS TO CONGRESS.—Not later than 
the expiration of the 5-year period beginning on the 
date of the enactment of this Act, and not later than 
the expiration of each successive 5-year period there-
after, the Secretary shall submit a report to the 
Congress regarding the program under this section 
and the results of the reviews conducted under para-
graph (2), which shall— 
‘‘(A) evaluate the programs carried out by 
public housing agencies participating in the pro-
gram, including with respect to each of the pur-
poses specified in subsection (a); and 
‘‘(B) include findings and recommenda-
tions for appropriate legislative changes to the 
program. 
‘‘(8) GAO REVIEWS AND REPORTS.—Not later 
than 180 days after the date of enactment of this 
Act, and not less frequently than every 8 years 
thereafter, the Comptroller General of the United 
States shall— 
‘‘(A) conduct and complete a review of the 
program under this section, which shall include 
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examination and analysis of the implementation 
of the program and identification of any short-
comings and any means for improving the pro-
gram; and 
‘‘(B) submit to the Congress a report re-
garding the review, which shall set forth a de-
tailed description of such implementation, any 
shortcomings of the program identified, and 
recommendations for improving the program.’’; 
(10) in subsection (i)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘section 14 of the United States 
Housing Act of 1937 for fiscal years 1996, 
1997, and 1998’’ and inserting ‘‘the Capital 
Fund under section 9(d) of the United States 
Housing Act of 1937 in each fiscal year’’; and 
(B) in paragraph (1)(B), by striking ‘‘up 
to 10’’; and 
(11) by striking subsection (j). 
(b) TREATMENT OF PARTICIPATING AGENCIES.— 
(1) CONTINUATION
OF
PARTICIPATION.—This 
section and the amendments made by this section 
shall not affect the status of any public housing 
agency that, as of the date of the enactment of this 
Act, is participating in the Moving to Work Program 
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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), as such a participating agency. 
(2) ELECTION.—Any public housing agency re-
ferred to in paragraph (1) may elect— 
(A) to continue participation in the Pro-
gram under section 204 of the Departments of 
Veterans Affairs and Housing and Urban De-
velopment, and Independent Agencies Appro-
priations Act, 1996 (42 U.S.C. 1437f note) 
under the terms of the agreement entered into 
between the agency and the Secretary providing 
for such participation until the date of the expi-
ration of such agreement; or 
(B) at any time before date of the expira-
tion of such agreement, to transition to partici-
pation under the program under such section 
204, as amended by this Act. 
(3) CONVERSION TO REFORMED PROGRAM.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B) of this paragraph, any public 
housing agency that elects pursuant to para-
graph (2)(A) of this subsection to continue par-
ticipation in the Program under section 204 of 
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204 
the Departments of Veterans Affairs and Hous-
ing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 (42 U.S.C. 
1437f note) shall, upon the expiration of the 
agreement referred to in such paragraph, be 
considered to have been approved for participa-
tion in the Program under such section 204, as 
amended by this Act, and the Secretary of 
Housing and Urban Development shall provide 
for the transition of the agency to participation 
under the Program under such section as so 
amended. 
(B) INAPPLICABILITY.—Subparagraph (A) 
shall not apply to any public housing agency 
that is determined by the Secretary to be in 
material default, upon the expiration of the 
agreement referred to in paragraph (2)(A), of 
the conditions and obligations under such 
agreement. 
(4) INAPPLICABILITY
OF
NUMERICAL
LIMITA-
TION.—Any public housing agency transitioned pur-
suant to paragraph (2)(B) or (3)(A) of this sub-
section to participation under the program under 
section 204 of the Departments of Veterans Affairs 
and Housing and Urban Development, and Inde-
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205 
pendent Agencies Appropriations Act, 1996 (42 
U.S.C. 1437f note), as amended by this section, 
shall not count toward fulfillment of the numerical 
limitation under section 204(d)(3)(A) of the Depart-
ments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropria-
tions Act, 1996 (42 U.S.C. 1437f note), as added by 
the amendment made by this section. 
SEC. 502. RESCISSION OF PUBLIC AND INDIAN HOUSING 
NOTICE 2021–18. 
The Public and Indian Housing Notice 2021–18 of 
the Department of Housing and Urban Development is 
hereby rescinded. 
TITLE 
VI—IMPROVING 
FINAN-
CIAL LITERACY REGARDING 
HOUSING 
SEC. 601. REFORMS TO HOUSING COUNSELING AND FINAN-
CIAL LITERACY PROGRAMS. 
(a) IN GENERAL.—Section 106(a)(4) of the Housing 
and Urban Development Act of 1968 (12 U.S.C. 
1701x(a)(4)) is amended— 
(1) in subparagraph (B)— 
(A) by striking ‘‘The Secretary’’ and in-
serting the following: 
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‘‘(i) IN
GENERAL.—The Secretary’’; 
and 
(B) by adding at the end the following: 
‘‘(ii) REQUIREMENT.—The Secretary 
shall require each organization receiving 
assistance under this paragraph to employ 
individuals providing housing counseling 
who— 
‘‘(I) are certified to understand 
sustainable homeownership; and 
‘‘(II) pass required examinations 
that determine the ability of the indi-
vidual to counsel borrowers on respon-
sible homeownership. 
‘‘(iii) 
SUSPENSION
OF
CERTIFI-
CATION.—If an individual employed by an 
organization that receives assistance under 
this paragraph provides counseling services 
to borrowers who, after receiving those 
services, have default rates that exceed the 
average default rates for borrowers coun-
seled by individuals in the area served by 
the organization, the Secretary— 
‘‘(I) shall suspend the certifi-
cation from the individual; and 
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‘‘(II) may deny future assistance 
under this paragraph to that organi-
zation. 
‘‘(iv) PROHIBITION ON LOBBYING AC-
TIVITIES.—An organization that applies 
for or receives assistance under this para-
graph shall not engage in political activi-
ties, advocacy, or lobbying, whether di-
rectly or through other parties.’’; and 
(2) by adding at the end the following: 
‘‘(F) SET ASIDES.—The Secretary shall set 
aside 40 percent of amounts authorized to carry 
out this paragraph for organizations that pro-
vide rental counseling or pre-foreclosure coun-
seling. 
‘‘(G) GEOGRAPHIC DIVERSITY.—In making 
grants under this paragraph, the Secretary 
shall ensure that the recipients are geographi-
cally diverse and include organizations that 
serve urban and rural areas.’’. 
(b) REQUIRING PREPURCHASE AND FORECLOSURE 
MITIGATION COUNSELING.— 
(1) COVERED MORTGAGE LOAN DEFINED.—In 
this subsection, the term ‘‘covered mortgage loan’’ 
means any loan which is secured by a first or subor-
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dinate lien on residential real property (including in-
dividual units of condominiums and cooperatives) de-
signed principally for the occupancy of from 1- to 4- 
families that is— 
(A) insured by the Federal Housing Ad-
ministration under title II of the National 
Housing Act (12 U.S.C. 1707 et seq.); 
(B) insured under section 255 of the Na-
tional Housing Act (12 U.S.C. 1715z–20); 
(C) guaranteed under section 184 or 184A 
of the Housing and Community Development 3 
Act of 1992 (12 U.S.C. 1715z–13a, 1715z–4 
13b); 
(D) guaranteed or insured by the Depart-
ment of Agriculture; or 
(E) made by the Department of Agri-
culture. 
(2) REQUIREMENT FOR PURCHASERS.—Before 
purchasing residential real property that secures a 
covered mortgage loan, the purchaser shall partici-
pate in prepurchase housing counseling. 
(3) REQUIREMENT FOR BORROWERS.—A bor-
rower with respect to a covered mortgage loan who 
is 30 days or more delinquent on payments for the 
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covered mortgage loan shall participate in fore-
closure mitigation counseling. 
Æ 
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