I 117th CONGRESS 2d Session H. R. 8327 IN THE HOUSE OF REPRESENTATIVES July 11, 2022 Mr. Torres of New York (for himself and Mr. Gomez ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To authorize the Secretary of Housing and Urban Development to carry out a rent stabilization program to provide short-term financial assistance to extremely low-income families at risk of eviction, and for other purposes.

1. Short title This Act may be cited as the Stable Families Act of 2022 . 2. Emergency assistance program (a) In general The Secretary is authorized to make funds available to State, local, territorial, and Tribal governments (in this section referred to as eligible grantees ) for the purpose of providing financial assistance and housing stabilization services to extremely low-income households to prevent evictions, homelessness, and other housing instability. (b) Distribution of funds An eligible grantee receiving assistance under this section may distribute all or a portion of such assistance to private nonprofit organizations, other government entities, public housing agencies, Tribally designated housing entities, or other entities as determined by the Secretary to carry out programs in accordance with this section. (c) Designation An eligible grantee that receives a grant under this section may designate 1 or more entities to carry out programs in accordance with this section. (d) Household eligibility (1) In general A household that is eligible to receive assistance under a program established under this section (in this section referred to as an eligible household ) shall be— (A) extremely low-income, as defined in section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) ); (B) at risk of housing instability and experiencing a short-term crisis, as attested to in writing by the household, which may include— (i) a decline in household income; (ii) a family or health crisis; (iii) unexpected expenses; (iv) unsafe or unhealthy living conditions; or (v) any other event as determined by the Secretary; and (C) obligated to pay rent on a residential dwelling or experiencing homelessness, as defined in section 103 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11302 ). (2) Housing type Assistance under a program established under this section shall be provided to eligible households regardless of housing type, or lack thereof, including— (A) rental properties, hotels, or motels where the households are covered by State, Tribal, or local eviction laws; (B) manufactured housing; (C) mobile homes; (D) single rooms; and (E) other types of subsidized and unsubsidized housing. (3) Lease requirements Assistance under a program established under this section shall be provided to eligible households with written or oral leases, subleases, or informal tenancy arrangements, allowing households to self-certify lease agreements. (e) Limitation (1) In general Assistance under a program established under this section shall be provided to an eligible household for arrears and a period not to exceed 4 months during any period of 3 years, except that grantees may provide assistance for an additional 3 months only if necessary to ensure housing stability for the eligible household, subject to the availability of funds. (2) Exception for periods of high unemployment, emergency, or major disaster Assistance under a program established under this section shall be provided to an eligible household for a period not to exceed 12 months, except that grantees may provide assistance for an additional 3 months only if necessary to ensure housing stability for the eligible household, subject to the availability of funds— (A) if for any month during the fiscal year the average rate of unemployment (seasonally adjusted) for the United States or for the State in which the eligible grantee is located, for the period consisting of the most recent 3 months for which data for all States are published, equals or exceeds 5.5 percent; or (B) in any fiscal year in which a declaration of a major disaster or emergency under section 401 or 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 , 5191) is in effect with respect to the jurisdiction covered by an eligible grantee. (f) Use of funds (1) In general An eligible grantee shall— (A) use grant amounts to help eligible households overcome a short-term crisis impacting housing stability and provide financial assistance and housing stability-related services to those eligible households; and (B) evaluate the eligibility of households in a manner consistent with Federal nondiscrimination requirements. (2) Financial assistance A recipient of a grant under this section shall use the grant funds to provide housing-related financial assistance to eligible households in the form of payments, including— (A) direct payments to the eligible households; and (B) the payment of— (i) rent and rent arrears; (ii) utilities and home energy costs and utilities and home energy costs arrears; (iii) relocation costs; and (iv) other housing-related expenses, as defined by the Secretary. (3) Housing stability-related services Not more than 25 percent of amounts received by a recipient of a grant under this section shall be used to provide housing stability-related services to eligible households, including— (A) services for case management, including community resources to negotiate and resolve issues to keep eligible households housed; (B) rehousing and relocation services; (C) services provided by housing counseling agencies approved by the Department to negotiate and resolve financial issues; (D) legal services; (E) services to connect those eligible households to other public supports, including long-term housing assistance; (F) referrals to other services for behavioral, emotional, and mental health issues, domestic violence, child welfare issues, employment, substance abuse treatment, or other services; and (G) other services to promote housing stability as determined by the Secretary. (4) Evaluation Of amounts made available under subsection (n) for fiscal year 2022, not more than $10,000,000 shall be used by the Secretary to conduct a rigorous program evaluation under subsection (k). (5) Administrative costs A recipient of a grant under this section may not use more than 10 percent of the total amount received under this section for administrative costs. (g) Allocation of resources (1) Initial eligibility The Secretary, in consultation with the Secretary of Health and Human Services, the Secretary of the Treasury, and the Secretary of Agriculture, shall develop a formula for determining the initial funding eligibility for eligible grantees based on— (A) the number of extremely low-income renter households with severe cost burdens, the number of extremely low-income households experiencing severe overcrowding, and the unemployment rate in each jurisdiction; (B) the prior performance of the grantee, including whether the eligible grantee has any unresolved, systemic housing-related civil rights violations; and (C) other factors as determined by the Secretary. (2) Notification of initial eligibility The Secretary shall notify eligible grantees of their initial eligibility for funding within 30 days of the date of enactment of the appropriate Act making appropriations for the Department for the fiscal year. (3) Statement of grantee interest and commitment Within 90 days of receiving the notification described in paragraph (2), each eligible grantee shall— (A) notify the Secretary of its intent to participate in the program authorized by this section during the fiscal year for which the Secretary is making funds available; and (B) if the eligible grantee notifies the Secretary of its intent to participate in the program, the eligible grantee shall concurrently submit— (i) a detailed plan describing how the eligible grantee will— (I) use the funds to prevent evictions, homelessness, and other housing instability, consistent with the requirements of this section, including any plans to distribute the funds to private nonprofit organizations, other government entities, public housing agencies, or other entities as determined by the Secretary; (II) implement and administer a program to distribute funds quickly and efficiently to eligible households, including through the use of appropriate technology; (III) make the plan publicly accessible; and (IV) raise awareness of the availability of assistance under the plan, including among renters and rental property owners; and (ii) a statement that the eligible grantee will participate in a rigorous evaluation of the effectiveness of the program, if requested to do so by the Secretary. (4) Plan submission and public availability An eligible grantee shall— (A) make the plan submitted under paragraph (3)(B)(i) publicly available on a website of the eligible grantee, including in a format that is accessible to individuals with disabilities; and (B) conduct public hearings and solicit comment on the plan submitted under paragraph (3)(B)(i) using the procedure described in paragraph (5). (5) Public hearing and solicitation of comments (A) In general In conducting public hearings and soliciting comments on a plan submitted under paragraph (3)(B)(i), each eligible grantee shall follow the requirements of the citizen participation plan adopted pursuant to section 91.105 of title 24, Code of Federal Regulations, or any successor regulation, except as provided in this paragraph. (B) Initial hearing Before submitting the plan to the Secretary required under paragraph (3)(B)(i), an eligible grantee shall— (i) hold a public hearing on the plan; and (ii) provide the public with a reasonable opportunity to view and comment on the plan, which shall be for a period of not less than 10 days. (C) Subsequent hearings Not later than 60 days after the initial hearing under subparagraph (B), an eligible grantee shall conduct a public hearing to solicit feedback on grants provided under this section. (D) Consultation In addition to any other citizen participation and consultation requirements, in developing and implementing a plan to carry out this section, each eligible grantee shall consult with— (i) the applicable Continuum or Continuums of Care for the area served by the eligible grantee; (ii) organizations representing underserved communities and populations; and (iii) organizations with expertise in affordable housing, fair housing, and services for individuals with disabilities. (6) Allocation of prorated funds Not later than 120 days after the enactment of appropriations Act making appropriations for the program authorized under this section, the Secretary shall allocate to each eligible grantee that notified the Secretary of its intent to participate in the program, consistent with the requirements in paragraph (3), the amount of funding for which the eligible grantee is eligible under the formula described in paragraph (1), plus any additional prorated amounts made available as a result of State, local, and Tribal governments having notified the Secretary of their intent to decline to participate or has indicated its intent not to participate under the terms of paragraph (3), in accordance with the payment schedule described in paragraph (8). (7) Distribution of declined funds (A) In general If the Secretary determines as of 120 days after the enactment of appropriations for the program authorized under this section that an eligible grantee has declined to receive its full allocation or has not indicated its intent to participate, not later than 15 days after such date, the Secretary— (i) except as provided in clause (ii) and subparagraph (B), shall redistribute, on a pro rata basis, such allocation among the other eligible grantees in the State (or States, if the eligible grantee is a Tribal government with jurisdiction in more than 1 State) that have not declined to receive their allocations; or (ii) if no other eligible grantees exist in a relevant State, may contract with units of local government within the State to administer funds within the State. (B) Exception If a redistribution under subparagraph (A)(i) would result in eligible grantees in a State receiving an increase of not less than 20 percent in funds received under the grant program, any amount above the 20 percent increase in funds shall be returned to the Secretary and distributed across all eligible grantees that did not decline their full allocation. (h) Continuous improvement The Secretary shall establish a process that incorporates findings from rigorous evaluation of the grant program authorized under this section into subsequent guidance and best practices for eligible grantees. (i) Evaluation of grantees The Secretary shall— (1) using data provided by eligible grantees, conduct a rigorous evaluation of the grant program authorized under this section that includes an assessment of— (A) the ease with which eligible households are able to access assistance; (B) the effectiveness of the intervention models of the program in preventing housing instability in general and for eligible households of different types and income levels; (C) the cost-effectiveness of the program; and (D) other indicators as determined by the Secretary; (2) publicly disseminate, through internet websites and other means, interim findings as soon as they become available relating to programs established by recipients of a grant under this section; and (3) make the evaluations described in paragraph (1) publicly available. (j) Reporting requirements (1) In general The Secretary shall publish public reports not less frequently than annually regarding the use of funds made available under this section, which shall include, with respect to each eligible grantee under this section— (A) the number of eligible households that receive assistance; (B) the acceptance rate of applicants for assistance; (C) the type or types of assistance provided to each eligible household; (D) the average amount of funding provided per eligible household receiving assistance; (E) the average number of monthly rental or utility payments that were covered by the funding amount that an eligible household received, as applicable; (F) the rate of evictions in the jurisdiction; and (G) the rate of evictions of households that received assistance under this program in the jurisdiction. (2) Data Each report under this subsection shall disaggregate the information relating to eligible households by the gender, race, and ethnicity of the primary applicant for assistance in those eligible households. (3) Alternative requirements The Secretary may establish alternative reporting requirements for Tribal and territorial eligible grantees and Tribally designated housing entities in carrying out activities under this section, including exempting Tribal eligible grantees and Tribally designated housing entities from— (A) the Fair Housing Act ( 42 U.S.C. 3601 et seq. ); and (B) the citizen participation and consultation requirements under subpart B of part 91 of title 24, Code of Federal Regulations, or any successor regulation. (4) Privacy requirements (A) In general Each eligible grantee that receives a grant under this section shall establish data privacy and security requirements for the information described in paragraph (1) that— (i) include appropriate measures to ensure that the privacy of individuals is protected; (ii) provide that the information, including any personally identifiable information, is collected and used only for the purpose of submitting reports under paragraph (1); and (iii) provide confidentiality protections for data collected about any individuals who are survivors of intimate partner violence, sexual assault, or stalking. (B) Statistical research (i) In general The Secretary— (I) may provide full and unredacted information provided under subparagraphs (A) through (F) of paragraph (1), including personally identifiable information, for statistical research purposes in accordance with existing law; and (II) may collect and make available for statistical research, at the census block group level, information collected under subparagraph (A). (ii) Application of privacy requirements A recipient of information under clause (i) shall establish for such information the data privacy and security requirements described in subparagraph (A). (5) Provision of data Each eligible grantee shall provide to the Secretary such data as may be necessary for the Secretary to complete the reporting requirements under this subsection. (k) Report on program Not later than 5 years after the establishment of the program under this section, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives and publish in the Federal Register a report— (1) evaluating the effectiveness of the strategies pursued under the grant program; and (2) that includes recommendations for any necessary changes to law. (l) Authorization of appropriations (1) In general There is authorized to be appropriated $3,000,000,000 for each of fiscal years 2022 through 2026, and such sums as may be necessary for each fiscal year thereafter, to carry out this section. (2) Reservation of funds for Tribal communities Of the amount appropriated under paragraph (1), the Secretary shall reserve $9,600,000 for activities and assistance authorized under titles I and VIII of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4111 et seq. ) and title I of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 et seq. ) with respect to Indian Tribes, which shall be made available for 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 ). (3) Allocation for States, territories, and units of local government The amount appropriated under paragraph (1) for a fiscal year that remains after the application of paragraph (2) shall be allocated to eligible grantees that are eligible under subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12741 et seq. ), to be used in a manner that conforms to the formula authorized under subsection (f). (4) Pro rata availability The Secretary shall only distribute a pro rata amount of the total appropriated under paragraph (1) in a fiscal year based on the number of eligible grantees that are eligible to receive a grant due to the limitation described in subsection (m)(4). (m) Availability (1) In General Each eligible grantee shall— (A) with respect to the first 2 fiscal years in which grants are awarded under this section— (i) obligate not less than 60 percent of such grant amounts within 2 years of the date that such funds become available to the eligible grantee for obligation; and (ii) obligate 100 percent of such grant amounts within 3 years of such date; and (B) for each subsequent fiscal year— (i) obligate not less than 60 percent of such grant amounts within 1 year of the date that such funds become available to the eligible grantee for obligation; and (ii) obligate 100 percent of such grant amounts within 2 years of such date. (2) Reallocation after 2 years (A) In general The Secretary may recapture any amounts not obligated in compliance with paragraph (1)(A) and reallocate and repay such amounts to eligible grantees in compliance that, at the time of reallocation, have obligated not less than 65 percent of the amount originally allocated and paid to the eligible grantee. (B) Amount The amount of a reallocation described in subparagraph (A) shall be determined based on demonstrated need within the jurisdiction covered by the eligible grantee, as determined by the Secretary. (3) Rescission and reallocation of funds An eligible grantee may use any funds from grants made under this section that are unobligated within 3 years for purposes in addition to those specified in this section, provided that such other purposes are affordable housing purposes, as defined by the Secretary, serving very low-income families (as such term is defined in section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) )). (4) Limitation on availability of funds An eligible grantee may only receive a grant under this section after the earlier of— (A) the date on which the eligible grantee has expended all funds provided under the emergency rental assistance programs under section 501 of division N of the Consolidated Appropriations Act, 2021 ( Public Law 116–260 ) and section 3201 of the American Rescue Plan Act ( Public Law 117–2 ); or (B) the date on which funds provided under the emergency rental assistance programs under section 501 of division N of the Consolidated Appropriations Act, 2021 ( Public Law 116–260 ) and section 3201 of the American Rescue Plan Act ( Public Law 117–2 ) are no longer available for obligation. (n) Prohibition on prerequisites None of the funds made available pursuant to this section may be used to require any eligible household 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. (o) Use of self-Certification or self-Attestation The Secretary shall require eligible grantees to allow eligible households to use self-certification or self-attestation to meet statutory or regulatory requirements, to the greatest extent possible. (p) Treatment of assistance Assistance provided to an eligible household from a payment made under this section shall not be regarded as income and shall not be regarded as a resource for purposes of determining the eligibility of the eligible household or any member of the eligible household for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State, local, or Tribal program financed in whole or in part with Federal funds. (q) Written notice of denial of assistance An eligible household that is denied assistance by an eligible grantee under the grant program under this section shall receive written notice of the denial of assistance within 5 days of the denial, which shall describe the basis for the denial and provide the eligible household with not less than 10 days to correct or amend the application. (r) Non-Supplantation requirement An eligible grantee under this section shall expend, from other Federal funding sources available to the eligible grantee, an amount equal to the average fiscal year amount of total expenditures the eligible grantee made for eviction prevention, housing stabilization, and homelessness assistance for fiscal years 2017, 2018, and 2019 for those same activities during the fiscal year for which funds are paid to an eligible grantee under this section. (s) Definitions In this section: (1) Department The term Department means the Department of Housing and Urban Development. (2) Public housing; public housing agency The terms public housing and public housing agency have the meanings given those terms in section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) ). (3) Secretary The term Secretary means the Secretary of Housing and Urban Development. (4) Tribally designated housing entity The term tribally designated housing entity has the meaning given the term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4103 ).