Title: Emergency Rental Assistance and Rental Market Stabilization Act of 2020
Policy area: Housing and Community Development

Summary:
Emergency Rental Assistance and Rental Market Stabilization Act of 2020
This bill provides funding for the Department of Housing and Urban Development (HUD) to award additional grants under the Emergency Solutions Grant program to provide rental assistance for short-term and medium-term housing to homeless individuals or families, or those who are at risk of homelessness, and expands eligibility for such additional assistance.
For assistance provided under the bill, the term at risk of homelessness shall include individuals and families that have an income below 80% of the median income for the area (rather than 30% of the area median income, as under current law). Rental assistance provided under the bill shall generally be limited to 120% of the HUD-established fair market rent for the area, whereas currently rental assistance under the program is generally limited to 100% of an area's fair market rent.
Such assistance may not be conditioned on any prerequisite activities, such as receiving treatment.
HUD may, with some limitations, waive requirements or establish alternative requirements related to such assistance if doing so is necessary to respond to the COVID-19 (i.e., coronavirus disease 2019) public health emergency.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3685 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3685

 To provide emergency rental assistance under the Emergency Solutions 
  Grants program of the Secretary of Housing and Urban Development in 
response to the public health emergency resulting from the coronavirus, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 12, 2020

 Mr. Brown (for himself, Mr. Schumer, Mr. Van Hollen, Mr. Schatz, Ms. 
Cortez Masto, Ms. Warren, Mr. Menendez, Ms. Smith, Mr. Reed, Mr. Wyden, 
Ms. Baldwin, Mrs. Gillibrand, Mrs. Murray, Mr. Merkley, Ms. Hirono, Mr. 
    Markey, Ms. Hassan, Ms. Harris, Mr. Booker, Mrs. Feinstein, Ms. 
  Stabenow, Mr. Blumenthal, Mr. Durbin, Mr. Leahy, Ms. Klobuchar, Mr. 
 Sanders, Mr. Bennet, Mr. Whitehouse, Mr. Heinrich, and Ms. Duckworth) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To provide emergency rental assistance under the Emergency Solutions 
  Grants program of the Secretary of Housing and Urban Development in 
response to the public health emergency resulting from the coronavirus, 
                        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 ``Emergency Rental Assistance and 
Rental Market Stabilization Act of 2020''.

SEC. 2. EMERGENCY RENTAL ASSISTANCE.

    (a) Authorization of Appropriations.--There is appropriated to the 
Secretary of Housing and Urban Development (referred to in this section 
as the ``Secretary''), out of amounts in the Treasury not otherwise 
appropriated, $100,000,000,000 for grants under the Emergency Solutions 
Grants program under subtitle B of title IV of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11371 et seq.) for fiscal year 2020, 
to remain available until expended (subject to subsections (d) and (n) 
of this section), to be used for providing rental assistance in 
accordance with section 415(a)(4) of such Act (42 U.S.C. 11374(a)(4)) 
and this section.
    (b) Definition of at Risk of Homelessness.--Notwithstanding section 
401(1) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11360(1)), for purposes of assistance made available with amounts made 
available pursuant to subsection (a), the term ``at risk of 
homelessness'' means, with respect to an individual or family, that the 
individual or family--
            (1) has an income below 80 percent of the median income for 
        the area as determined by the Secretary; and
            (2) has an inability to attain or maintain housing 
        stability or has insufficient resources to pay for rent or 
        utilities due to financial hardships.
    (c) Income Targeting and Calculation.--For purposes of assistance 
made available with amounts made available pursuant to subsection (a)--
            (1) each grantee of such amounts shall use--
                    (A) not less than 40 percent of the amounts 
                received only for providing assistance for individuals 
                or families experiencing homelessness or at risk of 
                homelessness who have incomes not exceeding 30 percent 
                of the median income for the area as determined by the 
                Secretary;
                    (B) not less than 70 percent of the amounts 
                received only for providing assistance for individuals 
                or families experiencing homelessness or at risk of 
                homelessness who have incomes not exceeding 50 percent 
                of the median income for the area as determined by the 
                Secretary; and
                    (C) the remainder of the amounts received only for 
                providing assistance to individuals or families 
                experiencing homelessness or at risk of homelessness 
                who have incomes not exceeding 80 percent of the median 
                income for the relevant geographic area as determined 
                by the Secretary, except that if a grantee demonstrates 
                to the satisfaction of the Secretary that the 
                population in the geographic area served by the grantee 
                having such incomes is sufficiently being served with 
                respect to activities eligible for funding with such 
                amounts, such grantee may establish a higher percentage 
                limit for purposes of subsection (b)(1), which shall 
                not in any case exceed 120 percent of the area median 
                income; and
            (2) in determining the income of a household--
                    (A) the calculation of income performed at the time 
                of application for such assistance shall consider only 
                income that the household is currently receiving at 
                such time and any income recently terminated shall not 
                be included;
                    (B) the calculation of income performed with 
                respect to households receiving ongoing assistance 
                (such as medium-term rental assistance) 3 months after 
                initial receipt of assistance shall consider only the 
                income that the household is receiving at the time of 
                such review; and
                    (C) the calculation of income performed with 
                respect to households receiving assistance for 
                arrearages shall consider only the income that the 
                household was receiving at the time such arrearages 
                were incurred.
    (d) 3-Year Availability.--
            (1) In general.--Each grantee of amounts made available 
        pursuant to subsection (a) shall--
                    (A) expend not less than 60 percent of such grant 
                amounts within 2 years of the date that such funds 
                became available to the grantee for obligation; and
                    (B) expend 100 percent of such grant amounts within 
                3 years of such date.
            (2) Reallocation after 2 years.--The Secretary may 
        recapture any amounts not obligated in compliance with 
        paragraph (1)(A) and reallocate such amounts to grantees in 
        compliance with the formula referred to in subsection 
        (h)(1)(A).
            (3) Rescission and reallocation of funds.--Any amounts made 
        available pursuant to subsection (a) that are not expended by a 
        grantee to provide assistance in accordance with this section 
        by the deadline under paragraph (1)(B) shall be reallocated by 
        the Secretary as follows:
                    (A) 65 percent shall be transferred and 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).
                    (B) 35 percent shall be transferred or credited to 
                the Capital Magnet Fund established under section 1339 
                of the Federal Housing Enterprises Financial Safety and 
                Soundness Act of 1992 (12 U.S.C. 4569).
    (e) Rent Restrictions.--
            (1) Inapplicability.--Section 576.106(d) of title 24, Code 
        of Federal Regulations, shall not apply with respect to 
        homelessness prevention assistance made available with amounts 
        made available under subsection (a).
            (2) Amount of rental assistance.--In providing homelessness 
        prevention assistance with amounts made available under 
        subsection (a), the maximum amount of rental assistance that 
        may be provided shall be the greater of--
                    (A) 120 percent of the higher of--
                            (i) the Fair Market Rent established by the 
                        Secretary for the metropolitan area or county; 
                        or
                            (ii) the applicable Small Area Fair Market 
                        Rent established by the Secretary; or
                    (B) such higher amount as the Secretary shall 
                determine is needed to cover market rents in the area.
    (f) Subleases.--Notwithstanding the second sentence of subsection 
(g) of section 576.106 of title 24 of the Code of Federal Regulations, 
a program participant may sublet, with rental assistance made available 
with amounts made available pursuant to subsection (a) of this section, 
a dwelling unit from a renter of the dwelling unit if there is a 
legally binding, written lease agreement for such sublease.
    (g) Housing Relocation or Stabilization Activities.--A grantee of 
amounts made available pursuant to subsection (a) may expend up to 25 
percent of its allocation for activities under section 415(a)(5) of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11374(a)(5)), except 
that notwithstanding such section, activities under such section may be 
provided only for individuals or families having incomes not exceeding 
50 percent of the area median income.
    (h) Allocation of Assistance.--
            (1) In general.--In allocating amounts made available 
        pursuant to subsection (a), the Secretary shall--
                    (A)(i) for any purpose authorized in this section, 
                allocate 2 percent of such amount for Indian tribes and 
                tribally designated housing entities (as such terms are 
                defined in section 4 of the Native American Housing 
                Assistance and Self-Determination Act of 1996 (25 
                U.S.C. 4103)) under the formula established pursuant to 
                section 302 of such Act (25 U.S.C. 4152), except that 
                0.3 percent of the amount allocated under this clause 
                shall be allocated for the Department of Hawaiian Home 
                Lands; and
                    (ii) not later than 30 days after the date of 
                enactment of this Act, obligate and disburse the 
                amounts allocated pursuant to clause (i) in accordance 
                with such allocations and provide such grantees with 
                any necessary guidance for use of the funds; and
                    (B)(i) not later than 7 days after the date of 
                enactment of this Act and after setting aside amounts 
                under subparagraph (A), allocate 50 percent of any such 
                remaining amounts under the formula specified in 
                subsections (a), (b), and (e) of section 414 of the 
                McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                11373) for, and notify, each State, metropolitan city, 
                and urban county that is to receive a direct grant of 
                such amounts; and
                    (ii) not later than 30 days after the date of 
                enactment of this Act, obligate and disburse the 
                amounts allocated pursuant to clause (i) in accordance 
                with such allocations and provide such grantees with 
                any necessary guidance for use of the funds; and
                    (C)(i) not later than 45 days after the date of 
                enactment of this Act, allocate any remaining amounts 
                for eligible grantees according to a formula to be 
                developed by the Secretary that takes into 
                consideration the formula referred to in subparagraph 
                (A) and the need for emergency rental assistance under 
                this section, including the severe housing cost burden 
                among extremely low- and very low-income renters and 
                disruptions in housing and economic conditions, 
                including unemployment; and
                    (ii) not later than 30 days after the date of the 
                allocation of such amounts pursuant to clause (i), 
                obligate and disburse such amounts in accordance with 
                such allocations.
            (2) Allocations to states.--
                    (A) In general.--Notwithstanding section 576.202(a) 
                of title 24, Code of Federal Regulations, a State 
                recipient of an allocation under this section may elect 
                to administer up to 100 percent of its allocation to 
                carry out activities eligible under this section.
                    (B) Requirement.--Any State recipient making an 
                election described in subparagraph (A) shall serve 
                households throughout the entire State, including 
                households in rural communities and small towns.
            (3) Election not to administer.--If a grantee elects not to 
        receive funds under this section, such funds shall be allocated 
        to the State recipient in which the grantee is located.
            (4) Partnerships and subgrantees.--A recipient of a grant 
        under this section may distribute funds through 1 or more 
        partnerships, subgrantees, or contracts with an entity, 
        including a public housing agency (as such term is defined in 
        section 3(b) of the United States Housing Act of 1937 (42 
        U.S.C. 1437a(b))), capable of carrying out a program under this 
        section.
    (i) Inapplicability of Matching Requirement.--Section 416(a) of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11375(a)) shall not 
apply to any amounts made available pursuant to subsection (a) of this 
section.
    (j) Reimbursement of Eligible Activities.--Amounts made available 
pursuant to subsection (a) may be used by a grantee to reimburse 
expenditures incurred for eligible activities under this section after 
March 27, 2020.
    (k) Prohibition on Prerequisites.--None of the funds made available 
pursuant to this section may be used to require any individual 
receiving assistance under the program under this section to receive 
treatment or perform any other prerequisite activities as a condition 
for receiving shelter, housing, or other services.
    (l) Waivers and Alternative Requirements.--
            (1) In general.--
                    (A) Authority.--In administering the amounts made 
                available pursuant to subsection (a), the Secretary may 
                waive, or specify alternative requirements for, any 
                provision of any statute or regulation that the 
                Secretary administers in connection with the obligation 
                by the Secretary or the use by the recipient of such 
                amounts (except for requirements related to fair 
                housing, nondiscrimination, labor standards, 
                prohibition on prerequisites, data reporting, and the 
                environment unless otherwise provided under this 
                paragraph), if the Secretary finds that good cause 
                exists for the waiver or alternative requirement and 
                such waiver or alternative requirement is necessary to 
                expedite the use of funds made available pursuant to 
                this section, to respond to public health orders or 
                conditions related to the COVID-19 emergency, or to 
                ensure that eligible individuals can attain or maintain 
                housing stability.
                    (B) Required waiver.--The Secretary shall waive any 
                regulatory requirements that restrict eligibility based 
                upon prior receipt of assistance under the program 
                during the 3-year period preceding the date of 
                enactment of this Act.
                    (C) Public notice.--The Secretary shall notify the 
                public through the Federal Register or other 
                appropriate means of any waiver or alternative 
                requirement under this paragraph, and that such public 
                notice may be provided, at a minimum, on the internet 
                at the appropriate Government website or through other 
                electronic media, as determined by the Secretary.
            (2) Public hearings.--
                    (A) Inapplicability of in-person hearing 
                requirements during the covid-19 emergency.--
                            (i) In general.--A grantee under this 
                        section shall not be required to hold in-person 
                        public hearings in connection with its citizen 
                        participation plan, but shall provide citizens 
                        with notice, including publication of its plan 
                        for carrying out this section on the internet, 
                        and a reasonable opportunity to comment of not 
                        less than 5 days.
                            (ii) Resumption of in-person hearing 
                        requirements.--After the period beginning on 
                        the date of enactment of this Act and ending on 
                        the date of the termination by the Federal 
                        Emergency Management Agency of the emergency 
                        declared on March 13, 2020, by the President 
                        under the Robert T. Stafford Disaster Relief 
                        and Emergency Assistance Act (42 U.S.C. 4121 et 
                        seq.) relating to the Coronavirus Disease 2019 
                        (COVID-19) pandemic, and after the period 
                        described in subparagraph (B), the Secretary 
                        shall direct grantees under this section to 
                        resume pre-crisis public hearing requirements.
                    (B) Virtual public hearings.--
                            (i) In general.--During the period that 
                        national or local health authorities recommend 
                        social distancing and limiting public 
                        gatherings for public health reasons, a grantee 
                        may fulfill applicable public hearing 
                        requirements for all grants from funds made 
                        available pursuant to this section by carrying 
                        out virtual public hearings.
                            (ii) Requirements.--Any virtual hearings 
                        held under clause (i) by a grantee under this 
                        section shall provide reasonable notification 
                        and access for citizens in accordance with the 
                        grantee's certifications, timely responses from 
                        local officials to all citizen questions and 
                        issues, and public access to all questions and 
                        responses.
    (m) Development and Submission of Plans.--
            (1) Resubmission of plans.--A recipient of funds made 
        available pursuant to this section may revise and resubmit its 
        plan for executing a program or programs under this section to 
        the Secretary at anytime during the first 180 days of 
        initiating the program.
            (2) Consultation.--In developing a plan to carry out this 
        section, each recipient of funds made available pursuant to 
        this section shall consult with the applicable Continuum or 
        Continuums of Care for the geographic area served by the 
        recipient and organizations representing underserved 
        communities and populations and organizations with expertise in 
        affordable housing.
    (n) Administration.--
            (1) By secretary.--Of any amounts made available pursuant 
        to subsection (a)--
                    (A) not more than the lesser of 0.5 percent, or 
                $15,000,000, may be used by the Secretary for staffing, 
                training, technical assistance, technology, monitoring, 
                research, and evaluation activities necessary to carry 
                out the program carried out under this section, and 
                such amounts shall remain available until September 30, 
                2024; and
                    (B) not more than $2,000,000 shall be available to 
                the Office of the Inspector General for audits and 
                investigations of the program authorized under this 
                section.
            (2) By recipients.--Subsection (a) of section 576.108 of 
        title 24 of the Code of Federal Regulations shall be applied, 
        with respect to amounts made available pursuant to this 
        section, by substituting ``10'' for ``7.5''.
                                 <all>