Title: Hardest Hit Housing Act of 2019
Policy area: Housing and Community Development

Summary:
Hardest Hit Housing Act of 2019
This bill authorizes through FY2023 additional funds for various housing programs, including grants to large public housing agencies for specified capital activities, grants for foreclosure mitigation counseling and legal assistance, and incremental vouchers for rental assistance for large public housing agencies.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2295 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2295

 To provide additional funding for the public housing Capital Fund for 
  large public housing agencies, for mortgage foreclosure mitigation 
  assistance, and for incremental rental assistance vouchers, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 12, 2019

 Ms. Clarke of New York (for herself, Mr. Espaillat, Ms. Meng, and Ms. 
Ocasio-Cortez) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To provide additional funding for the public housing Capital Fund for 
  large public housing agencies, for mortgage foreclosure mitigation 
  assistance, and for incremental rental assistance vouchers, 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 ``Hardest Hit Housing Act of 2019''.

SEC. 2. CAPITAL FUND AMOUNTS FOR LARGE PUBLIC HOUSING AGENCIES.

    (a) Authorization of Appropriations.--In addition to any amounts 
authorized to be appropriated for formula grants to public housing 
agencies from the Capital Fund pursuant to section 9(d)(2) of the 
United States Housing Act of 1937 (42 U.S.C. 1437g(d)(2)), there is 
authorized to be appropriated $4,000,000,000 for each of fiscal years 
2019 through 2023 for the Public Housing Capital Fund Program under 
section 9(d) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(b)).
    (b) Eligible Public Housing Agencies.--Any amounts appropriated 
pursuant to this section shall be used by the Secretary of Housing and 
Urban Development only for grants to public housing agencies that own 
or administer more than 10,000 public housing dwelling units.
    (c) Eligible Uses.--Funds from grants made with amounts 
appropriated pursuant to this section may be used only for eligible 
capital activities under section 9(d)(1) of the United States Housing 
Act of 1937 (42 U.S.C. 1437g(d)(1)). Section 9(g)(3) of such Act shall 
not apply to any such grant funds.

SEC. 3. ASSISTANCE TO NEIGHBORWORKS FOR MORTGAGE FORECLOSURE MITIGATION 
              ACTIVITIES.

    There is authorized to be appropriated $5,000,000, for each of 
fiscal years 2019 through 2023 for assistance to the Neighborhood 
Reinvestment Corporation for mortgage foreclosure mitigation 
activities, under the following terms and conditions:
            (1) Mortgage foreclosure mitigation counseling.--
                    (A) The Neighborhood Reinvestment Corporation (in 
                this section referred to as the ``NRC'') may make 
                grants under this paragraph to counseling 
                intermediaries approved by the Department of Housing 
                and Urban Development (in this section referred to as 
                ``HUD'') (with match to be determined by NRC based on 
                affordability and the economic conditions of an area; a 
                match also may be waived by NRC based on the 
                aforementioned conditions) to provide mortgage 
                foreclosure mitigation assistance to the 15 States with 
                highest rates of home mortgage defaults and 
                foreclosures, as of January 1, 2019, to help eliminate 
                the default and foreclosure of mortgages of owner-
                occupied single-family homes that are at risk of such 
                foreclosure and located in metropolitan statistical 
                areas having the greatest such need. Other than areas 
                with high rates of defaults and foreclosures, grants 
                may also be provided to approved counseling 
                intermediaries based on a geographic analysis of the 
                Nation by NRC which determines where there is a 
                prevalence of mortgages that are risky and likely to 
                fail, including any trends for mortgages that are 
                likely to default and face foreclosure. A State Housing 
                Finance Agency may also be eligible where the State 
                Housing Finance Agency meets all the requirements under 
                this paragraph. A HUD-approved counseling intermediary 
                shall meet certain mortgage foreclosure mitigation 
                assistance counseling requirements, as determined by 
                NRC, and shall be approved by HUD or NRC as meeting 
                these requirements.
                    (B) Mortgage foreclosure mitigation assistance 
                shall only be made available to homeowners of owner-
                occupied homes with mortgages in default or in danger 
                of default. These mortgages shall likely be subject to 
                a foreclosure action and homeowners will be provided 
                such assistance that shall consist of activities that 
                are likely to prevent foreclosures and result in the 
                long-term affordability of the mortgage retained 
                pursuant to such activity or another positive outcome 
                for the homeowner. No funds made available pursuant to 
                this paragraph may be provided directly to lenders or 
                homeowners to discharge outstanding mortgage balances 
                or for any other direct debt reduction payments.
                    (C) The use of mortgage foreclosure mitigation 
                assistance by approved counseling intermediaries and 
                State Housing Finance Agencies shall involve a 
                reasonable analysis of the borrower's financial 
                situation, an evaluation of the current value of the 
                property that is subject to the mortgage, counseling 
                regarding the assumption of the mortgage by another 
                non-Federal party, counseling regarding the possible 
                purchase of the mortgage by a non-Federal third party, 
                counseling and advice of all likely restructuring and 
                refinancing strategies or the approval of a work-out 
                strategy by all interested parties.
                    (D) NRC may provide up to 15 percent of the total 
                funds made available pursuant to this paragraph to its 
                own charter members with expertise in foreclosure 
                prevention counseling, subject to a certification by 
                NRC that the procedures for selection do not consist of 
                any procedures or activities that could be construed as 
                a conflict of interest or have the appearance of 
                impropriety.
                    (E) HUD-approved counseling entities and State 
                Housing Finance Agencies receiving funds made available 
                pursuant to this paragraph shall have demonstrated 
                experience in successfully working with financial 
                institutions as well as borrowers facing default, 
                delinquency, and foreclosure as well as documented 
                counseling capacity, outreach capacity, past successful 
                performance and positive outcomes with documented 
                counseling plans (including post-mortgage foreclosure 
                mitigation counseling), loan workout agreements, and 
                loan modification agreements. NRC may use other 
                criteria to demonstrate capacity in underserved areas.
                    (F) Of the total amount made available pursuant to 
                this paragraph, up to $250,000 may be made available to 
                build the mortgage foreclosure and default mitigation 
                counseling capacity of counseling intermediaries 
                through NRC training courses with HUD-approved 
                counseling intermediaries and their partners, except 
                that private financial institutions that participate in 
                NRC training shall pay market rates for such training.
                    (G) Of the total amount made available pursuant to 
                this paragraph, up to 5 percent may be used for 
                associated administrative expenses for NRC to carry out 
                activities provided under this paragraph.
                    (H) Mortgage foreclosure mitigation assistance 
                grants may include a budget for outreach and 
                advertising, and training, as determined by NRC.
                    (I) NRC shall report bi-annually to the House and 
                Senate Committees on Appropriations as well as the 
                Senate Committee on Banking, Housing, and Urban Affairs 
                and the House Committee on Financial Services on its 
                efforts to mitigate mortgage default.
            (2) Legal assistance.--
                    (A) The Neighborhood Reinvestment Corporation may 
                make grants to counseling intermediaries approved by 
                HUD or the NRC to hire attorneys to assist homeowners 
                who have legal issues directly related to the 
                homeowner's foreclosure, delinquency, or short sale.
                    (B) Such attorneys shall be capable of assisting 
                homeowners of owner-occupied homes with mortgages in 
                default, in danger of default, or subject to or at risk 
                of foreclosure and who have legal issues that cannot be 
                handled by counselors already employed by such 
                intermediaries.
                    (C) Grants under this paragraph may only be made to 
                counseling intermediaries and legal organizations that 
                (i) provide legal assistance in the 15 States with the 
                highest rates of home mortgage defaults and 
                foreclosures, as of January 1, 2019, and (ii) have the 
                capacity to begin using the financial assistance within 
                90 days after receipt of the assistance.
                    (D) No funds made available pursuant to this 
                paragraph shall be used to provide, obtain, or arrange 
                on behalf of a homeowner, legal representation 
                involving or for the purposes of civil litigation.

SEC. 4. INCREMENTAL HOUSING CHOICE VOUCHER ASSISTANCE.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated for each of fiscal years 2019 through 2023 such sums as 
may be necessary to provide in each such fiscal year 20,000 incremental 
vouchers for rental assistance under section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)).
    (b) Eligible Public Housing Agencies.--Any amounts appropriated 
pursuant to this section shall be used by the Secretary of Housing and 
Urban Development only to provide additional amounts for rental 
assistance vouchers for public housing agencies that administer 10,000 
or more vouchers for rental assistance under such section 8(o).
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