Coronavirus Homeowner Assistance Act of 2021
Bill: H.R.1710 | Sponsor: Rep. Scott, David (D-GA)
Policy area: Housing and Community Development

Summary:
Coronavirus Homeowner Assistance Act of 2021
This bill establishes and provides FY2021 funding for the Homeowner Assistance Fund, which provides assistance to mitigate the financial hardships associated with the COVID-19 (i.e., coronavirus disease 2019) pandemic. Specifically, grants are provided to states, territories, and tribes for the purpose of preventing homeowner mortgage delinquency, defaults, foreclosures, loss of utilities, and displacements of homeowners experiencing financial hardship after January 21, 2020.

To provide emergency assistance to homeowners to respond to the 
             coronavirus pandemic, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Coronavirus Homeowner Assistance Act 
of 2021''.

SEC. 2. HOMEOWNER ASSISTANCE FUND.

    (a) Appropriation.--There is appropriated, out of amounts in the 
Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2021, to remain available until September 30, 2025, 
$9,961,000,000 to the Homeowner Assistance Fund established under 
subsection (c) for qualified expenses that meet the purposes 
established under subsection (c) and expenses described in subsection 
(d)(1).
    (b) Definitions.--In this section:
            (1) Conforming loan limit.--The term ``conforming loan 
        limit'' means the applicable limitation governing the maximum 
        original principal obligation of a mortgage secured by a 
        single-family residence, a mortgage secured by a 2-family 
        residence, a mortgage secured by a 3-family residence, or a 
        mortgage secured by a 4-family residence, as determined and 
        adjusted annually under section 302(b)(2) of the Federal 
        National Mortgage Association Charter Act (12 U.S.C. 
        1717(b)(2)) and section 305(a)(2) of the Federal Home Loan 
        Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).
            (2) Dwelling.--The term ``dwelling'' means any building, 
        structure, or portion thereof which is occupied as, or designed 
        or intended for occupancy as, a residence by one or more 
        individuals.
            (3) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State; or
                    (B) any entity eligible for payment under 
                subsection (f).
            (4) Mortgage.--The term ``mortgage'' means any credit 
        transaction--
                    (A) that is secured by a mortgage, deed of trust, 
                or other consensual security interest on a principal 
                residence of a borrower that is (i) a 1- to 4-unit 
                dwelling, or (ii) residential real property that 
                includes a 1- to 4-unit dwelling; and
                    (B) the unpaid principal balance of which was, at 
                the time of origination, not more than the conforming 
                loan limit.
            (5) Fund.--The term ``Fund'' means the Homeowner Assistance 
        Fund established under subsection (c).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (7) State.--The term ``State'' means any State of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, American Samoa, the United States Virgin 
        Islands, and the Commonwealth of the Northern Mariana Islands.
    (c) Establishment of Fund.--
            (1) Establishment; qualified expenses.--There is 
        established in the Department of the Treasury a Homeowner 
        Assistance Fund to mitigate financial hardships associated with 
        the coronavirus pandemic by providing such funds as are 
        appropriated by subsection (a) to eligible entities, and to 
        require an eligible entity that receives funds pursuant to this 
        section to periodically submit to the Secretary a report that 
        describes the activities carried out by the eligible entity 
        using the funds provided under this section, for the purpose of 
        preventing homeowner mortgage delinquencies, defaults, 
        foreclosures, loss of utilities or home energy services, and 
        displacements of homeowners experiencing financial hardship 
        after January 21, 2020, through qualified expenses related to 
        mortgages and housing, which include--
                    (A) mortgage payment assistance;
                    (B) financial assistance to allow a homeowner to 
                reinstate a mortgage or to pay other housing related 
                costs related to a period of forbearance, delinquency, 
                or default;
                    (C) principal reduction;
                    (D) facilitating interest rate reductions;
                    (E) payment assistance for--
                            (i) utilities, including electric, gas, and 
                        water;
                            (ii) internet service, including broadband 
                        internet access service, as defined in section 
                        8.1(b) of title 47, Code of Federal Regulations 
                        (or any successor regulation);
                            (iii) property taxes;
                            (iv) homeowner's insurance, flood 
                        insurance, and mortgage insurance; and
                            (v) homeowner's association, condominium 
                        association fees, or common charges;
                    (F) reimbursement of funds expended by a State, 
                local government, or designated entity under subsection 
                (e) during the period beginning on January 21, 2020, 
                and ending on the date that the first funds are 
                disbursed by the eligible entity under the Homeowner 
                Assistance Fund, for the purpose of providing housing 
                or utility payment assistance to individuals or 
                otherwise providing funds to prevent foreclosure or 
                eviction of a homeowner or tenant or prevent mortgage 
                delinquency or loss of housing or utilities as a 
                response to the coronavirus disease (COVID) pandemic; 
                and
                    (G) any other assistance to promote housing 
                stability for homeowners, including preventing 
                eviction, mortgage delinquency or default, foreclosure, 
                or the loss of utility or home energy services, as 
                determined by the Secretary.
            (2) Targeting.--Not less than 60 percent of amounts made to 
        each eligible entity allocated amounts under subsection (d) or 
        (e) shall be used for qualified expenses that assist homeowners 
        having incomes equal to or less than 100 percent of the area 
        median income for their household size or equal to or less than 
        100 percent of the median income for the United States, as 
        determined by the Secretary of Housing and Urban Development, 
        whichever is greater. The eligible entity shall prioritize 
        remaining funds to populations or geographies experiencing the 
        greatest need.
    (d) Allocation of Funds.--
            (1) Administration.--Of any amounts made available under 
        this section, the Secretary shall reserve--
                    (A) to the Department of the Treasury, an amount 
                not to exceed $40,000,000 to administer and oversee the 
                Fund, and to provide technical assistance to eligible 
                entities for the creation and implementation of State 
                and tribal programs to administer assistance from the 
                Fund; and
                    (B) to the Inspector General of the Department of 
                the Treasury, an amount not to exceed $2,600,000 for 
                oversight of the program under this section.
            (2) For states.--After the application of paragraphs (1), 
        (4), and (5) of this subsection and subject to paragraph (3) of 
        this subsection, the Secretary shall establish such criteria as 
        are necessary to allocate the remaining funds available within 
        the Homeowner Assistance Fund to each State of the United 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico, taking into consideration, for such State relative 
        to all States of the United States, the District of Columbia, 
        and the Commonwealth of Puerto Rico, as of the date of the 
        enactment of this Act--
                    (A) the number of individuals who are unemployed;
                    (B) the total number or mortgagors with--
                            (i) mortgage payments that are more than 30 
                        days past due; or
                            (ii) mortgages in foreclosure.
            (3) Small state minimum.--
                    (A) In general.--Each State of the United States, 
                the District of Columbia, and the Commonwealth of 
                Puerto Rico shall receive no less than $40,000,000 for 
                the purposes established in (b).
                    (B) Pro rata adjustments.--The Secretary shall 
                adjust on a pro rata basis the amount of the payments 
                for each State of the United States, the District of 
                Columbia, and the Commonwealth of Puerto Rico 
                determined under this subsection without regard to this 
                subparagraph to the extent necessary to comply with the 
                requirements of subparagraph (A).
            (4) Territory set-aside.--Notwithstanding any other 
        provision of this section, of the amounts appropriated under 
        subsection (d), the Secretary shall reserve $30,000,000 to be 
        disbursed to eligible entities for Guam, American Samoa, the 
        United States Virgin Islands, and the Commonwealth of the 
        Northern Mariana Islands based on each such territory's share 
        of the combined total population of all such territories, as 
        determined by the Secretary. For the purposes of this 
        paragraph, population shall be determined based on the most 
        recent year for which data are available from the United States 
        Census Bureau.
            (5) Tribal set-aside.--The Secretary shall allocate funds 
        to any eligible entity designated under subsection (f) pursuant 
        to the requirements of that subsection.
    (e) Distribution of Funds to States.--
            (1) In general.--The Secretary shall make payments, 
        beginning not later than 45 days after enactment of this Act, 
        from amounts allocated under subsection (d) to eligible 
        entities that have notified the Secretary that they request to 
        receive payment from the Fund and that the eligible entity will 
        use such payments in compliance with this section.
            (2) Reallocation.--If a State does not request allocated 
        funds by the 90th day after the date of enactment of this Act, 
        such State shall not be eligible for a payment from the 
        Secretary pursuant to this section, and the Secretary shall 
        reallocate any funds that were not requested by such State 
        among the States that have requested funds by the 90th day 
        after the date of enactment of this Act. For any such 
        reallocation of funds, the Secretary shall adhere to the 
        requirements of subsection (d), except for paragraph (1), to 
        the greatest extent possible, provided that the Secretary shall 
        also take into consideration in determining such reallocation a 
        State's remaining need and a State's record of using payments 
        from the Fund to serve homeowners at disproportionate risk of 
        mortgage default, foreclosure, or displacement, including 
        homeowners having incomes equal to or less than 100 percent of 
        the area median income for their household size or 100 percent 
        of the median income for the United States, as determined by 
        the Secretary of Housing and Urban Development, whichever is 
        greater, and minority homeowners.
    (f) Tribal Set-Aside.--
            (1) Set-aside.--Notwithstanding any other provision of this 
        section, of the amounts appropriated under subsection (a), the 
        Secretary shall use 5 percent to make payments to entities that 
        are eligible for payments under clauses (i) and (ii) of section 
        501(b)(2)(A) of subtitle A of title V of division N of the 
        Consolidated Appropriations Act, 2021 (Public Law 116-260) for 
        the purposes described in subsection (c).
            (2) Allocation and payment.--The Secretary shall allocate 
        the funds set aside under paragraph (1) using the allocation 
        formulas described in clauses (i) and (ii) of section 
        501(b)(2)(A) of subtitle A of title V of division N of the 
        Consolidated Appropriations Act, 2021 (Public Law 116-260), and 
        shall make payments of such amounts to entities eligible for 
        payment under clauses (i) and (ii) of section 501(b)(2)(A) of 
        subtitle A of title V of division N of the Consolidated 
        Appropriations Act, 2021 (Public Law 116-260) that notify the 
        Secretary that they intend to receive payments allocated by the 
        Secretary for purposes described under subsection (c) and will 
        use such payments in compliance with this section.
            (3) Adjustment.--Allocations provided under this subsection 
        may be further adjusted as provided by section 501(b)(2)(B) of 
        subtitle A of title V of division N of the Consolidated 
        Appropriations Act, 2021 (Public Law 116-260).
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