Title: COVID-19 Homeowner Assistance Fund Act of 2020
Policy area: Housing and Community Development

Summary:
COVID-19 Homeowner Assistance Fund Act of 2020
This bill establishes the Homeowner Assistance Fund at the Department of the Treasury to support state housing finance agencies. The funds may be used to prevent mortgage defaults, housing foreclosures, and the displacement of families and individuals experiencing financial hardship after January 21, 2020. Funds may specifically be used for assistance with mortgage payments, taxes, specified insurance, homeowner association fees, utility payments, and for the reimbursement of state or local funds previously used to provide such assistance as a response to the COVID-19 (i.e., coronavirus disease 2019) pandemic. The bill otherwise provides for income requirements and allocation of funds to eligible states, territories, and tribes.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6729 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6729

  To establish a Homeowner Assistance Fund to provide funds to State 
   housing finance agencies for the purpose of preventing homeowner 
 mortgage defaults, foreclosures, and displacements of individuals and 
   families experiencing financial hardship, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 5, 2020

Mr. David Scott of Georgia (for himself and Ms. Waters) introduced the 
   following bill; which was referred to the Committee on Financial 
Services, and in addition to the Committee on the Budget, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
  To establish a Homeowner Assistance Fund to provide funds to State 
   housing finance agencies for the purpose of preventing homeowner 
 mortgage defaults, foreclosures, and displacements of individuals and 
   families experiencing financial hardship, 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 ``COVID-19 Homeowner Assistance Fund 
Act of 2020''.

SEC. 2. HOMEOWNER ASSISTANCE FUND.

    (a) Definitions.--In this section:
            (1) Fund.--The term ``Fund'' means the Homeowner Assistance 
        Fund established under subsection (b).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (3) State.--The term ``State'' means any State of the 
        United States, the District of Columbia, any territory of the 
        United States, Puerto Rico, Guam, American Samoa, the Virgin 
        Islands, and the Northern Mariana Islands.
    (b) Establishment of Fund.--There is established at the Department 
of the Treasury a Homeowner Assistance Fund to provide such funds as 
are made available under subsection (g) to State housing finance 
agencies for the purpose of preventing homeowner mortgage defaults, 
foreclosures, and displacements of individuals and families 
experiencing financial hardship after January 21, 2020.
    (c) Allocation of Funds.--
            (1) Administration.--Of any amounts made available for the 
        Fund, the Secretary of the Treasury may allocate, in the 
        aggregate, an amount not exceeding 5 percent--
                    (A) to the Office of Financial Stability 
                established under section 101(a) of the Emergency 
                Economic Stabilization Act of 2008 (12 U.S.C. 5211(a)) 
                to administer and oversee the Fund, and to provide 
                technical assistance to States for the creation and 
                implementation of State programs to administer 
                assistance from the Fund; and
                    (B) to the Inspector General of the Department of 
                the Treasury for oversight of the program under this 
                section.
            (2) For states.--The Secretary shall establish such 
        criteria as are necessary to allocate the funds available 
        within the Fund for each State. The Secretary shall allocate 
        such funds among all States taking into consideration the 
        number of unemployment claims within a State relative to the 
        nationwide number of unemployment claims.
            (3) Small state minimum.--The amount allocated for each 
        State shall not be less than $250,000,000.
            (4) Set-aside for insular areas.--Notwithstanding any other 
        provision of this section, of the amounts appropriated under 
        subsection (g), the Secretary shall reserve $200,000,000 to be 
        disbursed to Guam, American Samoa, the Virgin Islands, and 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) Set-aside for indian tribes and native hawaiians.----
                    (A) Indian tribes.--Notwithstanding any other 
                provision of this section, of the amounts appropriated 
                under subsection (g), the Secretary shall use 5 percent 
                to make grants in accordance with subsection (f) to 
                eligible recipients for the purposes described in 
                subsection (e)(1).
                    (B) Native hawaiians.--Of the funds set aside under 
                subparagraph (A), the Secretary shall use 0.3 percent 
                to make grants to the Department of Hawaiian Home Lands 
                in accordance with subsection (f) for the purposes 
                described in subsection (e)(1).
    (d) Disbursement of Funds.--
            (1) Administration.--Except for amounts made available for 
        assistance under subsection (f), State housing finance agencies 
        shall be primarily responsible for administering amounts 
        disbursed from the Fund, but may delegate responsibilities and 
        sub-allocate amounts to community development financial 
        institutions and State agencies that administer Low-Income Home 
        Energy Assistance Program of the Department of Health and Human 
        Services.
            (2) Notice of funding.--The Secretary shall provide public 
        notice of the amounts that will be made available to each State 
        and the method used for determining such amounts not later than 
        the expiration of the 14-day period beginning on the date of 
        the enactment of this Act of enactment.
            (3) SHFA plans.--
                    (A) Eligibility.--To be eligible to receive funding 
                allocated for a State under the section, a State 
                housing finance agency for the State shall submit to 
                the Secretary a plan for the implementation of State 
                programs to administer, in part or in full, the amount 
                of funding the State is eligible to receive, which 
                shall provide for the commencement of receipt of 
                applications by homeowners for assistance, and funding 
                of such applications, not later than the expiration of 
                the 6-month period beginning upon the approval under 
                this paragraph of such plan.
                    (B) Multiple plans.--A State housing finance agency 
                may submit multiple plans, each covering a separate 
                portion of funding for which the State is eligible.
                    (C) Timing.--The Secretary shall approve or 
                disapprove a plan within 30 days after the plan's 
                submission and, if disapproved, explain why the plan 
                could not be approved.
                    (D) Disbursement upon approval.--The Secretary 
                shall disburse to a State housing finance agency the 
                appropriate amount of funding upon approval of the 
                agency's plan.
                    (E) Amendments.--A State housing finance agency may 
                subsequently amend a plan that has previously been 
                approved, provided that any plan amendment shall be 
                subject to the approval of the Secretary. The Secretary 
                shall approve any plan amendment or disapprove such 
                amendment explain why the plan amendment could not be 
                approved within 45 days after submission to the 
                Secretary of such amendment.
                    (F) Technical assistance.--The Secretary shall 
                provide technical assistance for any State housing 
                finance agency that twice fails to have a submitted 
                plan approved.
    (e) Permissible Uses of Fund.--
            (1) In general.--Funds made available to State housing 
        finance agencies pursuant to this section may be used for the 
        purposes established under subsection (b), which may include--
                    (A) mortgage payment assistance, including 
                financial assistance to allow a borrower to reinstate 
                their mortgage or to achieve a more affordable mortgage 
                payment, which may include principal reduction or rate 
                reduction, provided that any mortgage payment 
                assistance is tailored to a borrower's needs and their 
                ability to repay, and takes into consideration the loss 
                mitigation options available to the borrower;
                    (B) assistance with payment of taxes, hazard 
                insurance, flood insurance, mortgage insurance, or 
                homeowners' association fees;
                    (C) utility payment assistance, including electric, 
                gas, water, and internet service, including broadband 
                internet access service (as such term is defined in 
                section 8.1(b) of title 47, Code of Federal Regulations 
                (or any successor regulation));
                    (D) reimbursement of funds expended by a State or 
                local government during the period beginning on January 
                21, 2020, and ending on the date that the first funds 
                are disbursed by the State under the Fund, for the 
                purpose of providing housing or utility assistance to 
                individuals or otherwise providing funds to prevent 
                foreclosure or eviction of a homeowner or prevent 
                mortgage delinquency or loss of housing or critical 
                utilities as a response to the coronavirus disease 2019 
                (COVID-19) pandemic; and
                    (E) any other assistance for homeowners to prevent 
                eviction, mortgage delinquency or default, foreclosure, 
                or the loss of essential utility services.
            (2) Targeting.--
                    (A) Requirement.--Not less than 60 percent of 
                amounts made available for each State or other entity 
                allocated amounts under subsection (c) shall be used 
                for activities under paragraph (1) that assist 
                homeowners having incomes equal to or less than 80 
                percent of the area median income.
                    (B) Determination of income.--In determining the 
                income of a household for purposes of this paragraph, 
                income shall be considered to include only income that 
                the household is receiving at the time of application 
                for assistance from the Fund and any income recently 
                terminated shall not be included, except that for 
                purposes of households receiving assistance for 
                arrearages income shall include only the income that 
                the household was receiving at the time such arrearages 
                were incurred.
                    (C) Language assistance.--Each State housing 
                finance agency or other entity allocated amounts under 
                subsection (c) shall make available to each applicant 
                for assistance from amounts from the Fund language 
                assistance in any language that such language 
                assistance is available in and shall provide notice to 
                each such applicant that such language assistance is 
                available.
            (3) Administrative expenses.--Not more than 15 percent of 
        the amount allocated to a State pursuant to subsection (c) may 
        be used by a State housing financing agency for administrative 
        expenses. Any amounts allocated to administrative expenses that 
        are no longer necessary for administrative expenses may be used 
        in accordance with paragraph (1).
    (f) Tribal and Native Hawaiian Assistance.--
            (1) Definitions.--In this subsection:
                    (A) Department of hawaiian home lands.--The term 
                ``Department of Hawaiian Home Lands'' has the meaning 
                given the term in section 801 of the Native American 
                Housing Assistance and Self-Determination Act of 1996 
                (42 U.S.C. 4221).
                    (B) Eligible recipient.--The term ``eligible 
                recipient'' means any entity eligible to receive a 
                grant under section 101 of the Native American Housing 
                Assistance and Self-Determination Act of 1996 (25 
                U.S.C. 4111).
            (2) Requirements.--
                    (A) Allocation.--Except for the funds set aside 
                under subsection (c)(5)(B), the Secretary shall 
                allocate the funds set aside under subsection (c)(5)(A) 
                using the allocation formula described in subpart D of 
                part 1000 of title 24, Code of Federal Regulations (or 
                any successor regulations).
                    (B) Native hawaiians.--The Secretary shall use the 
                funds made available under subsection (c)(5)(B) in 
                accordance with part 1006 of title 24, Code of Federal 
                Regulations (or successor regulations).
            (3) Transfer.--The Secretary shall transfer any funds made 
        available under subsection (c)(5) that have not been allocated 
        by an eligible recipient or the Department of Hawaiian Home 
        Lands, as applicable, to provide the assistance described in 
        subsection (e)(1) by December 31, 2030, to the Secretary of 
        Housing and Urban Development to carry out the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4101 et seq.).
    (g) Funding.--
            (1) Appropriation.--There is appropriated, out of any funds 
        in the Treasury not otherwise appropriated, to the Homeowner 
        Assistance Fund established under subsection (b), 
        $75,000,000,000, to remain available until expended or 
        transferred or credited under subsection (i).
            (2) Emergency designation.--Amounts specified under 
        subsection (a) are designated by the Congress as being for an 
        emergency requirement pursuant to section 251(b)(2)(A)(i) of 
        the Balanced Budget and Emergency Deficit Control Act of 1985.
    (h) Use of Housing Finance Agency Innovation Fund for the Hardest 
Hit Housing Markets Funds.--A State housing finance agency may 
reallocate any administrative or programmatic funds it has received as 
an allocation from the Housing Finance Agency Innovation Fund for the 
Hardest Hit Housing Markets created pursuant to section 101(a) of the 
Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a)) that 
have not been otherwise allocated or disbursed as of the date of 
enactment of this Act to supplement any administrative or programmatic 
funds received from the Housing Assistance Fund. Such reallocated funds 
shall not be considered when allocating resources from the Housing 
Assistance Fund using the process established under subsection (c) and 
shall remain available for the uses permitted and under the terms and 
conditions established by the contract with Secretary created pursuant 
to subsection (d)(1) and the terms of subsection (i).
    (i) Rescission of Funds.--Any funds that have not been allocated by 
a State housing finance agency to provide assistance as described under 
subsection (e) by December 31, 2030, shall be reallocated by the 
Secretary in the following manner:
            (1) Sixty-five percent shall be transferred or credited to 
        the Housing Trust Fund established under section 1338 of the 
        Federal Housing Enterprises Financial Safety and Soundness Act 
        of 1992 (12 U.S.C. 4568); and
            (2) thirty-five percent shall be transferred or credited to 
        the Capital Magnet Fund under section 1339 of the Federal 
        Housing Enterprises Financial Safety and Soundness Act of 1992 
        (12 U.S.C. 4569).
    (j) Reporting Requirements.--The Secretary shall provide public 
reports not less frequently than quarterly regarding the use of funds 
provided by the Homeowner Assistance Fund. Such reports shall include 
the following data by State and by program within each State, both for 
the past quarter and throughout the life of the program--
            (1) the amount of funds allocated;
            (2) the amount of funds disbursed;
            (3) the number of households and individuals assisted;
            (4) the acceptance rate of applicants;
            (5) the type or types of assistance provided to each 
        household;
            (6) whether the household assisted had a federally backed 
        loan and identification of the Federal entity backing such 
        loan;
            (7) the average amount of funding provided per household 
        receiving assistance and per type of assistance provided;
            (8) the average number of monthly payments that were 
        covered by the funding amount that a household received, as 
        applicable, disaggregated by type of assistance provided;
            (9) the income level of each household receiving 
        assistance; and
            (10) the outcome 12 months after the household has received 
        assistance.
Each report under this subsection shall disaggregate the information 
provided under paragraphs (3) through (10) by State, zip code, racial 
and ethnic composition of the household, and whether or not the person 
from the household applying for assistance speaks English as a second 
language.
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