Affordable Housing Redevelopment Act
Bill: S.580 | Sponsor: Sen. Feinstein, Dianne (D-CA)
Policy area: Housing and Community Development

Summary:
Affordable Housing Redevelopment Act
This bill reauthorizes the Neighborhood Stabilization Program for FY2021 to provide grants to states, local governments, and nonprofit entities for the conversion of blighted, abandoned, or foreclosed property into affordable housing for low-income families.

To reauthorize the Neighborhood Stabilization Program, 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 ``Affordable Housing Redevelopment 
Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) even before the economic hardship caused by the COVID-
        19 pandemic, the United States faced a shortage of more than 
        7,000,000 affordable rental homes to meet the needs of 
        extremely low-income renters;
            (2) due to financial burdens and loss of income resulting 
        from the pandemic, millions of people in the United States are 
        at risk of eviction or foreclosure, and the need for affordable 
        housing is expected to increase dramatically;
            (3) homelessness is projected to rise by as much as 45 
        percent across the United States as a result of the pandemic 
        and economic crisis, meaning nearly 1,000,000 people in the 
        United States could be experiencing homelessness in the very 
        near future;
            (4) in addition to making long-term investments in the 
        affordable housing stock in the United States, it is also 
        critically important to focus resources on more immediate 
        solutions, such as acquiring and rehabilitating existing 
        buildings and placing affordability requirements on the housing 
        that is produced;
            (5) acquisition and rehabilitation provides two distinct 
        advantages by lowering per-unit construction costs and making 
        affordable housing units available to low-income households 
        much faster;
            (6) in addition to rehabilitation of residential 
        properties, there are opportunities for adaptive reuse and the 
        conversion of non-residential office and retail properties to 
        create new affordable housing in communities across the United 
        States; and
            (7) helping States, local governments, and nonprofit 
        organizations acquire blighted, abandoned, vacant, foreclosed, 
        or surplus properties and convert them into affordable housing 
        will allow for the rapid development of new affordable units, 
        while stimulating local economies and creating jobs.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State, a city, county, or other political 
                subdivision of a State, a consortium of political 
                subdivisions of a State, a Tribal government, a public 
                housing authority, or a redevelopment agency; or
                    (B) any nonprofit entity or consortium of nonprofit 
                entities, which may submit an application for a grant 
                under this section in partnership with a for-profit 
                entity.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

SEC. 4. REAUTHORIZATION OF NEIGHBORHOOD STABILIZATION PROGRAM.

    (a) Authorization of Funds.--
            (1) In general.--There is authorized to be appropriated to 
        the Secretary $1,500,000,000 for fiscal year 2021, to remain 
        available until expended, for the provision of emergency 
        assistance for the redevelopment of abandoned and foreclosed 
        homes, as authorized under title III of division B of the 
        Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 note; 
        Public Law 110-289), in addition to other related uses of funds 
        authorized under this section.
            (2) Applicability of provisions.--
                    (A) In general.--Except as otherwise provided in 
                this section, the provisions under the second 
                undesignated paragraph under the heading ``community 
                development fund'' under the heading ``Community 
                Planning and Development'' under the heading 
                ``DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'' in 
                title XII of division A of the American Recovery and 
                Reinvestment Act of 2009 (Public Law 111-5) relating to 
                assistance authorized under title III of division B of 
                the Housing and Economic Recovery Act of 2008 (42 
                U.S.C. 5301 note; Public Law 110-289) shall apply with 
                respect to the emergency assistance authorized under 
                paragraph (1).
                    (B) Certain criteria not applicable.--The fourth 
                proviso in the second undesignated paragraph described 
                in subparagraph (A) of this paragraph (relating to 
                grantees in areas with foreclosures and the ability to 
                expend funding within a certain period) shall not apply 
                with respect to the emergency assistance authorized 
                under paragraph (1) of this subsection.
    (b) Grants; Application.--
            (1) In general.--The Secretary shall award grants under 
        this section to eligible entities through a competitive 
        process.
            (2) Criteria.--Not later than 75 days after the date of 
        enactment of this Act, the Secretary shall publish the criteria 
        for awarding grants under this section.
            (3) Application.--An eligible entity desiring a grant under 
        this section shall submit to the Secretary an application--
                    (A) in such manner and containing such information 
                as the Secretary may require;
                    (B) that demonstrates a capacity to execute 
                projects and leverage potential, and any other 
                additional factors as determined by the Secretary; and
                    (C) not later than 200 days after the date of 
                enactment of this Act.
            (4) Preference.--The Secretary shall award preference to an 
        application for a grant under this section to applicants that 
        submit proposals--
                    (A) to provide assistance in areas with high levels 
                of cost-burdened households;
                    (B) to provide assistance in rural areas;
                    (C) to provide assistance in communities that have 
                adopted local land-use policies, building codes, or 
                related regulations that favor greater housing 
                production, such as--
                            (i) allowing greater density near public 
                        transportation lines;
                            (ii) establishing by-right development;
                            (iii) eliminating off-street parking 
                        requirements;
                            (iv) granting density bonuses;
                            (v) employing inclusionary zoning;
                            (vi) relaxing minimum lot sizes;
                            (vii) authorizing conversion of commercial 
                        properties into mixed-use and residential 
                        properties; or
                            (viii) other local land-use policies, 
                        building codes, or related regulations that 
                        favor greater housing production;
                    (D) to provide assistance in areas that are in 
                close proximity to high-frequency public 
                transportation; or
                    (E) that have a higher proportion of affordable 
                units for households with incomes that are less than 50 
                percent of the area median income.
            (5) Diversity.--In awarding grants under this section, the 
        Secretary shall ensure a geographic diversity of grantees from 
        across the United States.
    (c) Use of Funds.--
            (1) In general.--A recipient of a grant under this 
        section--
                    (A) shall use grant funds to purchase blighted, 
                abandoned, vacant, foreclosed, or surplus property and 
                convert the property into affordable housing, which 
                shall serve individuals and families with a household 
                income that does not exceed the area median income;
                    (B) may use grant funds for mixed-use development 
                projects, conversion of non-residential office and 
                retail properties, and other redevelopment requiring 
                changes to land use restrictions; and
                    (C) shall, to the maximum extent feasible--
                            (i) provide for the hiring of employees who 
                        reside in the vicinity, as such term is defined 
                        by the Secretary, of projects funded under this 
                        section; or
                            (ii) contract with small business concerns 
                        owned and controlled by socially and 
                        economically disadvantaged individuals (as 
                        defined in section 8(d)(3)(C) of the Small 
                        Business Act (15 U.S.C. 637(d)(3)(C))) residing 
                        in the vicinity of projects funded under this 
                        section.
            (2) Set aside for extremely low-income and very low-income 
        families.--Not less than 25 percent of the affordable housing 
        described in paragraph (1) shall service individuals and 
        families with a household income that does not exceed 50 
        percent of the area median income.
            (3) Affordability periods.--
                    (A) In general.--The affordability period for 
                housing assisted under this section--
                            (i) with respect to rental housing or 
                        housing with resale restrictions, shall be not 
                        less than 30 years, beginning on project 
                        completion; and
                            (ii) with respect to housing with recapture 
                        restrictions, shall be not less than 10, 20, or 
                        30 years in accordance with the affordability 
                        period requirements under section 93.305 of 
                        title 24, Code of Federal Regulations, or any 
                        successor regulation.
                    (B) Longer periods permitted.--Nothing in 
                subparagraph (A) shall be construed to prohibit a 
                recipient of a grant under this section from 
                establishing a longer affordability period than is 
                required under that subparagraph.
            (4) Deadline for expending funds.--A recipient of a grant 
        under this section shall expend--
                    (A) not less than 50 percent of allocated funds 
                under this section not later than 3 years after the 
                date on which the funds become available to the grantee 
                for obligation; and
                    (B) 100 percent of allocated funds under this 
                section not later than 6 years after the date on which 
                the funds become available to the grantee for 
                obligation.
    (d) Technical Assistance.--
            (1) In general.--The Secretary may use not more than 2 
        percent of the funds made available under this section to 
        provide technical assistance to grantees under this section.
            (2) Sense of congress.--It is the sense of Congress that, 
        to the extent practicable, the Secretary shall provide 
        technical assistance directly to grantees under this section.
    (e) Deadline for Awarding Funds.--The Secretary shall award all 
grant funds authorized under this section not later than 1 year after 
the date of enactment of this Act.
    (f) Existing Regulations.--Except to the extent that a regulation 
is in conflict with the provisions of this Act, the regulations 
applicable to the provision of emergency assistance for the 
redevelopment of abandoned and foreclosed homes, as authorized under 
title III of division B of the Housing and Economic Recovery Act of 
2008 (42 U.S.C. 5301 note; Public Law 110-289) and subsequent Acts, as 
in effect on the day before the date of enactment of this Act, shall 
apply to the provision of assistance under this Act.
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