I 
111TH CONGRESS 
1ST SESSION H. R. 2587 
To limit the reinvestment by States and localities of profits under the Neigh-
borhood Stabilization Program of the Department of Housing and Urban 
Development. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 21, 2009 
Mrs. CAPITO (for herself and Mr. LEE of New York) introduced the following 
bill; which was referred to the Committee on Financial Services 
A BILL 
To limit the reinvestment by States and localities of profits 
under the Neighborhood Stabilization Program of the 
Department of Housing and Urban Development. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Neighborhood Sta-
bilization Program Reform Act of 2009’’. 
SEC. 2. REINVESTMENT OF PROFITS. 
(a) 
2-YEAR
REINVESTMENT
PERIOD.—Section 
2301(d) of the Housing and Economic Recovery Act of 
2008, as amended under the heading relating to ‘‘Commu-
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nity Development Fund’’ in title XII of division A of the 
American Recovery and Reinvestment Act of 2009 (Public 
Law 111–5; 123 Stat. 218), is amended by inserting after 
paragraph (3) the following new paragraph: 
‘‘(4) REINVESTMENT OF PROFITS.— 
‘‘(A) PROFITS FROM SALES, RENTALS, AND 
REDEVELOPMENT.— 
‘‘(i) 
2-YEAR
REINVESTMENT
PE-
RIOD.—During the 2-year period beginning 
upon the date of the enactment of the 
Neighborhood Stabilization Program Re-
form Act of 2009, any revenue generated 
from the sale, rental, redevelopment, reha-
bilitation, or any other eligible use that is 
in excess of the cost to acquire and rede-
velop (including reasonable development 
fees) or rehabilitate an abandoned or fore-
closed upon home or residential property 
shall be provided to and used by the State 
or unit of general local government in ac-
cordance with, and in furtherance of, the 
intent and provisions of this section. 
‘‘(ii) 
REDUCTION
OF
NATIONAL 
DEBT.— 
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‘‘(I) PROFITS.—Upon the expira-
tion of the 2-year period set forth 
under clause (i), any revenue gen-
erated from the sale, rental, redevel-
opment, rehabilitation, or any other 
eligible use that is in excess of the 
cost to acquire and redevelop (includ-
ing reasonable development fees) or 
rehabilitate an abandoned or fore-
closed upon home or residential prop-
erty shall be transfered to the special 
account 
established 
by 
section 
3113(d) of title 31, United States 
Code, and shall be used only as pro-
vided in such section to reduce the 
public debt. 
‘‘(II) OTHER
AMOUNTS.—Upon 
the expiration of the 2-year period set 
forth under clause (i), any other rev-
enue not described under subclause 
(I) generated from the sale, rental, re-
development, rehabilitation, or any 
other eligible use of an abandoned or 
foreclosed upon home or residential 
property shall be transfered to the 
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special account established by section 
3113(d) of title 31, United States 
Code, and shall be used only as pro-
vided in such section to reduce the 
public debt. 
‘‘(B) OTHER
REVENUES.—Any revenue 
generated under subparagraphs (A), (C) or (D) 
of subsection (c)(3) shall be provided to and 
used by the State or unit of general local gov-
ernment in accordance with, and in furtherance 
of, the intent and provisions of this section.’’. 
(b) APPLICABILITY TO STIMULUS ACT AMOUNTS.— 
Notwithstanding any other provision of law, the amend-
ment made by subsection (a) shall apply with respect to 
any amounts made available under the heading relating 
to ‘‘Community Development Fund’’ in title XII of divi-
sion A of the American Recovery and Reinvestment Act 
of 2009 (Public Law 111–5; 123 Stat. 218). 
Æ 
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