I 
109TH CONGRESS 
1ST SESSION H. R. 4514 
To assist low-income families, displaced from their residences in the States 
of Alabama, Louisiana, and Mississippi as a result of Hurricane Katrina 
or Hurricane Rita, by establishing within the Department of Housing 
and Urban Development a homesteading initiative that offers displaced 
low-income families the opportunity to purchase a home owned by the 
Federal Government, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 13, 2005 
Mr. JINDAL (for himself, Mr. THOMPSON of Mississippi, Mr. MCCRERY, Mr. 
PICKERING, Mr. WICKER, and Mr. BONNER) introduced the following bill; 
which was referred to the Committee on Financial Services, and in addi-
tion to the Committee on Resources, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To assist low-income families, displaced from their residences 
in the States of Alabama, Louisiana, and Mississippi 
as a result of Hurricane Katrina or Hurricane Rita, 
by establishing within the Department of Housing and 
Urban Development a homesteading initiative that offers 
displaced low-income families the opportunity to purchase 
a home owned by the Federal Government, and for other 
purposes. 
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 ‘‘Hurricanes Katrina 
and Rita Recovery Homesteading Act of 2005’’. 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to allow low-income families who were dis-
placed from their residences in a designated disaster 
area as a result of Hurricane Katrina or Rita to re-
turn to their States, areas, or communities by pro-
viding homeownership opportunities; 
(2) to assist in the rebuilding of neighborhoods 
in Alabama, Louisiana, and Mississippi that were 
damaged by Hurricane Katrina or Rita, through 
strategies that promote homeownership opportuni-
ties; 
(3) to maximize the use of existing Federal re-
sources to assist State and local governments in pro-
viding homesteading and other homeownership op-
portunities in a designated disaster area; and 
(4) to promote the cooperation at all levels of 
government and the private sector, including non-
profit organizations, in providing homesteading op-
portunities and other homeownership opportunities 
that will facilitate the rebuilding of neighborhoods in 
a designated disaster area.
SEC. 3. DEFINITIONS. 
As used in this Act, the following definitions shall 
apply: 
(1) DESIGNATED DISASTER AREAS.—The term 
‘‘designated disaster area’’ means any area in the 
States of Alabama, Louisiana, and Mississippi that 
is the subject of a disaster declaration by the Presi-
dent under title IV of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.) in response to Hurricane 
Katrina or Hurricane Rita. 
(2) FAMILY.—The term ‘‘family’’ includes a 
family, as such term is defined in section 3 of the 
United States Housing Act of 1937 (42 U.S.C. 
1437a), of 1 or more persons. 
(3) LOW-INCOME FAMILY.—The term ‘‘low-in-
come family’’ means a family whose income does not 
exceed 80 percent of the median income for the 
area, as determined by the Secretary, with adjust-
ments for family size, except that the Secretary may 
establish an income ceiling higher or lower than 80 
percent of the median for the area if the Secretary 
finds that such a variation is necessary because of 
prevailing levels of construction costs or unusually 
high or low family incomes.
(4) PARTICIPATING
FEDERAL
AGENCY.—The 
term ‘‘participating Federal agency’’ means a Fed-
eral agency the head of which is referenced by title 
in section 4(b), and any other Federal agency that 
transfers or conveys property for the purposes of 
section 4. 
(5) RESPONSIBLE
ADMINISTERING
ENTITY.— 
The term ‘‘responsible administering entity’’ means 
a unit of general local government or a State in a 
designated disaster area, or a public agency or other 
entity designated by a unit of general local govern-
ment or a State that is charged with administering 
a homestead program approved under section 4(d). 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development, 
except as otherwise specified. 
SEC. 4. HOMESTEADING. 
(a) ELIGIBLE PROPERTY.—The Secretary is author-
ized to transfer, without payment, to a responsible admin-
istering entity, any real property— 
(1) which is either vacant or includes either a 
1-, 2-, 3-, or 4-family residence or multifamily 
project;
(2) to which the Secretary holds title, including 
property conveyed to the Secretary by any other par-
ticipating Federal agency; 
(3) which is not occupied by a person legally 
entitled to reside there; 
(4) which is requested by a responsible admin-
istering entity for use in a homestead program; 
(5) which is not— 
(A) excess or surplus Federal property 
subject to property disposition under title V of 
the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11411 et seq.); or 
(B) Federal property subject to disposition 
under a base closure law, as defined in section 
101(a)(17) of title 10, United States Code; and 
(6) which the Secretary determines is suitable 
for use in a homestead program that is approved 
under subsection (d). 
(b) ACQUISITIONS AND REIMBURSEMENTS.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, the Secretary of Agriculture, the 
Secretary of Health and Human Services, the Sec-
retary of Veterans Affairs, and the head of any 
other participating Federal agency are authorized to 
transfer property to the Secretary, and the Secretary
is authorized to accept custody and accountability of 
such property, to carry out this Act. 
(2) REIMBURSEMENT.— 
(A) IN GENERAL.—The Secretary is au-
thorized to reimburse the Federal Housing Ad-
ministration for property— 
(i) which the Secretary has acquired 
under the National Housing Act (12 
U.S.C. 1701 et seq.) in the form of modi-
fication of subsidy costs, as authorized in 
the Federal Credit Reform Act of 1990 (2 
U.S.C. 661 et seq.); and 
(ii) which the Secretary transfers for 
use in connection with a local homestead 
program approved by the Secretary under 
this section. 
(B) HOMESTEAD
PROGRAM.—The Sec-
retary is authorized to reimburse a partici-
pating Federal agency in an amount to be 
agreed upon by the Secretary and such partici-
pating Federal agency for property that such 
participating Federal agency transferred for use 
in connection with a homestead program ap-
proved by the Secretary under this section.
(C) DEPOSITS.—Amounts to be reim-
bursed under this paragraph shall be— 
(i) deposited pursuant to the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661 
et seq.), as applicable; or 
(ii) made available to the agency to 
address real property capital asset needs. 
(3) DONATED
PROPERTY.—The Secretary is 
authorized to accept, manage, and convey residential 
property donated to the Secretary by a nongovern-
mental entity for purposes of this Act. 
(4) REVERSAL
OF
TRANSFER
OR
CONVEY-
ANCE.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, any real property trans-
ferred to the Secretary by a participating Fed-
eral agency for purposes of this Act shall be 
transferred back to that participating Federal 
agency in the event that such property is not 
conveyed to a responsible administering entity 
under subsection (a). 
(B) REVERSIONS.—In the event of a con-
veyance to a responsible administering entity 
for purposes of this Act, if such responsible ad-
ministering entity does not dispose of such
property within 18 months of the date of such 
conveyance, such property and its proceeds 
shall revert— 
(i) to the Secretary; or 
(ii) in the case of property transferred 
by a participating Federal agency under 
paragraph (1), to such participating Fed-
eral agency. 
(c) SUITABLE PROPERTY
FOR HOMESTEAD PRO-
GRAM.—In determining the suitability of a residential 
property for use in a homestead program, the Secretary 
shall consider— 
(1) the physical condition of the residential 
property, including whether, upon rebuilding, or if 
repairs or improvements are required, upon comple-
tion of such repairs or improvements, the property— 
(A) would meet local or applicable stand-
ards or codes for habitation or occupancy; 
(B) is likely to meet all Federal require-
ments for flood insurance; and 
(C) will otherwise not endanger the health 
or safety of individuals residing within or near-
by the residential property; 
(2) the estimated time for rebuilding or repair-
ing the property for residential use;
(3) the environment surrounding the property 
and the suitability of the surrounding structures and 
the neighborhood to be rebuilt and sustained as a 
viable community; 
(4) the value of any repairs and improvements 
required by the program; 
(5) the benefits to the community and the re-
duced administrative costs to the Federal Govern-
ment which would accrue from the expedited occu-
pancy of the unoccupied property; and 
(6) the possible financial loss to the Federal 
Government which may result from the transfer of 
the property without payment. 
(d) APPROVAL CRITERIA.—The Secretary may ap-
prove a homestead program carried out by a responsible 
administering entity, which provides for the following: 
(1) EQUITABLE SELECTION OF PARTICIPATING 
FAMILIES.—The homestead program shall provide 
for an equitable procedure, as prescribed by the Sec-
retary, for selecting low-income families that have 
been displaced from residences in a designated dis-
aster area, which procedure shall— 
(A) give priority to low-income families 
who were displaced from their residences in a 
particular designated disaster area or who were
displaced as homeowners in a designated dis-
aster area, or other criteria as may be pre-
scribed by the Secretary; 
(B) take into account for each family de-
scribed under subparagraph (A), such fam-
ily’s— 
(i) capacity to obtain assistance for 
the rebuilding, repair, or maintenance of 
the housing from private sources, commu-
nity organizations, or other sources; or 
(ii) agreement to rebuild or repair the 
housing by participating in a self-help 
sweat equity housing program, or the fam-
ily’s contribution to the surrounding com-
munity; and 
(C) include such other criteria as the Sec-
retary determines appropriate. 
(2) INITIAL
OCCUPANCY
AGREEMENT.—The 
homestead program shall provide for the initial occu-
pancy of unoccupied residential property pursuant to 
a written agreement whereby the family to whom 
such property is conveyed agrees— 
(A) to occupy such property as a principal 
residence for a period of not less than 5 years,
or such other time period as the Secretary may 
prescribe; 
(B) to repair, or cause to be repaired or 
improved, if housing is located on such prop-
erty, all defects in such housing that pose a 
substantial danger to health and safety within 
1 year of the date of such initial conveyance, or 
within such other time period as may be pre-
scribed by the Secretary; 
(C) to make, or cause to be made, such re-
pairs and improvements, if housing is located 
on such property, to such housing as may be 
necessary to meet applicable local standards for 
decent, safe, and sanitary housing within 3 
years after the date of initial occupancy, or 
within such other time period as may be pre-
scribed by the Secretary; 
(D) to build or cause to be built, if housing 
is not located on the property, single family 
housing that meets applicable local codes within 
3 years after the date of initial occupancy, or 
within such other time period as may be pre-
scribed by the Secretary; 
(E) to permit reasonable periodic inspec-
tions at reasonable times, and with notice rea-
sonable in the circumstances, for the purpose of 
determining compliance with the agreement; 
(F) to the revocation of such agreement 
upon any material breach of the agreement, 
subject to penalties under section 5; and 
(G) to accept the conveyance from the re-
sponsible administering entity of fee simple title 
to such property without consideration upon 
compliance with the agreement. 
(3) OTHER
CRITERIA
DETERMINED
BY
THE 
SECRETARY.—The homestead program shall meet 
such other criteria determined by the Secretary to be 
appropriate for the program in light of the location 
in which the program is to be administered, or fol-
lowing consultation with State and local government 
officials. 
(e) TECHNICAL SUPPORT.—The Secretary is author-
ized to provide technical assistance and other resources 
directly or indirectly for the administration of homestead 
programs that meet the requirements of subsection (d) 
and to families who are participants in such programs. 
SEC. 5. COMPLIANCE. 
(a) COMPLIANCE MONITORING.—The Secretary shall 
make such reviews and audits as may be necessary or ap-
propriate to determine whether activities authorized to be
carried out under this Act are carried out in accordance 
with the requirements of this Act and other applicable law. 
(b) COMPLIANCE ACTIONS.—In addition to any other 
actions authorized by applicable law, if the Secretary de-
termines that any property transferred for use under a 
homestead program approved under section 4 has been 
conveyed or used under the program in a manner contrary 
to the provisions of section 4, the Secretary may take such 
actions as the Secretary considers appropriate, includ-
ing— 
(1) imposing a civil money penalty on the re-
sponsible administering entity, or the transferee of 
such entity, or both, as appropriate, in an amount 
equal to not less than any profit realized with re-
spect to the conveyance or use of such property con-
trary to the provisions of this Act; 
(2) enforcing, revising, or releasing the restric-
tions contained in any instruments of conveyance; or 
(3) revoking the conveyance of the property to 
the responsible administering entity or requiring the 
responsible administering entity to revoke the con-
veyance of such property to the family in accordance 
with procedures prescribed by the Secretary. 
(c) JUDICIAL ENFORCEMENT.—The Attorney Gen-
eral of the United States, at the request of the Secretary,
may bring civil actions in any district court of the United 
States to enforce this Act, and such court shall have juris-
diction over such actions. 
SEC. 6. NONDISCRIMINATION. 
No person in the United States shall, on the grounds 
of race, color, national origin, religion, disability, or sex, 
be excluded from participation in the homestead program 
established under this Act. 
SEC. 7. ENVIRONMENTAL REVIEW. 
(a) IN GENERAL.—Except as provided in subsection 
(b), the National Environmental Policy Act (42 U.S.C. 
4321 et seq.) shall apply to all activities under this Act. 
(b) EXCEPTIONS.—The Secretary may, in consulta-
tion with Federal, Tribal, State, and local governmental 
entities, as appropriate, waive the requirements of the Na-
tional Environmental Policy Act (42 U.S.C. 4321 et seq.), 
if the Secretary determines that such a waiver— 
(1) will not frustrate the goals of the National 
Environmental Policy Act or any other provision of 
law that furthers the goals of that Act; and 
(2) does not threaten the health or safety of the 
community involved by posing an immediate or long- 
term hazard to residents of that community.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to carry out 
this Act a total of $300,000,000 for fiscal years 2006 
through 2010. 
SEC. 9. IMPLEMENTATION. 
(a) IN GENERAL.—To immediately implement this 
Act, the Secretary shall, by notice, establish such require-
ments as may be necessary to carry out this Act. 
(b) PROCEDURE FOR NOTICE.—The notice required 
under subsection (a) shall— 
(1) take effect upon issuance; and 
(2) provide the opportunity for public comment. 
(c) FINAL REGULATIONS.—The Secretary shall issue 
final regulations based on the notice required under sub-
section (a). 
SEC. 10. SUNSET. 
The Secretary shall not accept, transfer, or convey 
property under this Act after 5 years from the date of 
enactment of this Act. 
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