I 119th CONGRESS 1st Session H. R. 4856 IN THE HOUSE OF REPRESENTATIVES August 1, 2025 Mr. Lawler introduced the following bill; which was referred to the Committee on Financial Services , and in addition to the Committees on Ways and Means , Oversight and Government Reform , Energy and Commerce , and Veterans' Affairs , 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 improve the safety of, affordability of, and access to housing.

1. Short title; Table of contents (a) Short title This Act may be cited as the Revitalizing America’s Housing Act . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; Table of contents. Title I—Promoting opportunity and increasing supply Sec. 101. Identification of regulatory barriers to affordable housing in HUD annual report. Sec. 102. Qualifying ordinary income added to special rules for investments in opportunity zones. Sec. 103. Relieving strain from shortages of transformers. Sec. 104. Incentivizing zoning reform. Sec. 105. Decreasing the equity penalty and incentivizing more long-term owners to sell homes. Title II—Increasing access to housing and addressing cost Sec. 201. Expanding workforce and volunteer housing. Sec. 202. Supporting affordability and safety for public servants. Sec. 203. Expanding programs supporting homeownership for those serving the community. Sec. 204. Improving volunteer first responder housing. Sec. 205. Improving access to housing for veterans. Sec. 206. Supporting veteran families in need. Sec. 207. Attracting private investment to build and rehabilitate owner-occupied homes. Sec. 208. Better utilizing and disposing of unused military and government lands for housing. Sec. 209. Energy conservation standards for manufactured housing. Sec. 210. Rental assistance demonstration program. Sec. 211. Creating incentives for small dollar loan originators. Sec. 212. Small dollar mortgage points and fees. Sec. 213. Removing Outdated Regulation for Manufactured Housing. Title III—Serving the most vulnerable; health and safety Sec. 301. GAO study to determine proximity of housing to Superfund sites. Sec. 302. Ensuring public housing agencies inspect each dwelling unit each year. Sec. 303. Incentivizing local solutions to homelessness. Sec. 304. Improving mold and health standards. Sec. 305. Improving Protection from Lead Hazards. Sec. 306. Improving housing for the elderly and disabled. Title IV—Good Governance Sec. 401. Requiring annual testimony and oversight from housing regulators. Sec. 402. Requiring annual testimony and oversight for government guaranteed or insured mortgage programs. Sec. 403. Testimony and report from United States Interagency Council on Homelessness. Sec. 404. Report detailing NYCHA compliance with and HUD oversight of 2019 agreement. Sec. 405. FHA reporting requirements on safety and soundness. Sec. 406. Combatting squatting. Sec. 407. Reallocation of voucher funding. Title V—Regulatory flexibility Sec. 501. Authorization of Moving to Work Program. Sec. 502. Rescission of Public and Indian Housing Notice 2021–18. Title VI—Improving financial literacy regarding housing Sec. 601. Reforms to housing counseling and financial literacy programs. I Promoting opportunity and increasing supply 101. Identification of regulatory barriers to affordable housing in HUD annual report Section 8 of the Department of Housing and Urban Development Act ( 42 U.S.C. 3536 ) is amended by adding at the end the following: Each such annual report shall include an identification of significant regulatory barriers to affordable housing, within the meaning of such term as provided in the first sentence of section 1203 of the Housing and Community Development Act of 1992 ( 42 U.S.C. 12705b ), and a discussion and analysis of how to reduce or remove such barriers. . 102. Qualifying ordinary income added to special rules for investments in opportunity zones (a) In General Section 1400Z–2 of the Internal Revenue Code of 1986 is amended— (1) in the section heading, by striking capital gains invested and inserting investments , (2) in subsection (a)— (A) in paragraph (1)— (i) in the heading, by inserting qualifying ordinary income and after of , (ii) by inserting qualifying ordinary income and after case of , (iii) by amending subparagraph (A) to read as follows: (A) gross income for the taxable year shall not include— (i) so much of such gain as does not exceed the aggregate amount invested by the taxpayer in a qualified opportunity fund during the 180-day period beginning on the date of such sale or exchange, and (ii) so much of such qualifying ordinary income as does not exceed the aggregate amount invested by the taxpayer in a qualified opportunity fund during such taxable year, , and (iv) in subparagraph (B), by inserting qualifying ordinary income and after amount of , (B) in paragraph (2)— (i) in subparagraph (A), by striking or at the end, (ii) in subparagraph (B), by striking the period at the end and inserting , or , and (iii) by adding at the end the following: (C) with respect to qualified ordinary income received in a taxable year beginning after December 31, 2026. , and (C) by adding at the end the following: (3) Qualifying ordinary income defined In this subsection, the term qualifying ordinary income means ordinary income other than income attributable to capital gains. , (3) in subsection (b)— (A) in the subsection heading, by inserting qualifying ordinary income and after deferral of , (B) in paragraph (1), by striking Gain and inserting Qualifying ordinary income and gain , and (C) in paragraph (2)— (i) in subparagraph (A)— (I) by inserting qualifying ordinary income and after amount of , and (II) in clause (i), by striking of gain , and (ii) in subparagraph (B)— (I) in the clause (ii) heading, by striking gain and inserting amount , and (II) by striking the amount of gain each place it appears and inserting the amount , and (4) in subsection (e)(1), by inserting qualifying ordinary income and after investments of . (b) Effective Date The amendments made by this section shall apply to amounts invested after the date of the enactment of this Act. 103. Relieving strain from shortages of transformers Section 321(35) of the Energy Policy and Conservation Act ( 42 U.S.C. 6291(35) ) is amended by adding at the end the following: (C) Efficiency level The Secretary shall not finalize any rule under which the efficiency level of a liquid-immersed type, low voltage dry type, or medium voltage dry type distribution transformer is greater than trial standard level 2 (as described in table V.1 in the proposed rule entitled Energy Conservation Program: Energy Conservation Standards for Distribution Transformers (88 Fed. Reg. 1722 (January 11, 2023))). (D) Effective date for certain rules Any rule finalized by the Secretary under which the efficiency level of a liquid-immersed type, low voltage dry type, or medium voltage dry-type distribution transformer is trial standard level 1 or 2 (as described in table V.1 in the proposed rule entitled ‘Energy Conservation Program: Energy Conservation Standards for Distribution Transformers’ (88 Fed. Reg. 1722 (January 11, 2023))) shall not take effect until 10 years after the date on which the rule is finalized. . 104. Incentivizing zoning reform (a) Purpose The purpose of this section is to discourage the use of discriminatory land use policies and remove barriers to making housing more affordable in order to further the original intent of the Community Development Block Grant program. (b) Land use plan (1) In general Section 104 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5304 ) is amended by adding at the end the following: (n) Plan To track discriminatory land use policies (1) In general Prior to receipt in any fiscal year of a grant from the Secretary under subsection (b), (d)(1), or (d)(2)(B) of section 106, each recipient shall have prepared and submitted, not less frequently than once during the preceding 5-year period, in accordance with this subsection and in such standardized form as the Secretary shall, by regulation, prescribe, with respect to each land use policy described in paragraph (2) that is applicable to the jurisdiction served by the recipient, a description of— (A) whether the recipient has already adopted the policy in the jurisdiction served by the recipient; (B) the plan of the recipient to implement the policy in that jurisdiction; or (C) the ways in which adopting the policy will benefit the jurisdiction. (2) Land use policies The policies described in this paragraph are as follows: (A) Enacting high-density single-family and multifamily zoning. (B) Expanding by-right multifamily zoned areas. (C) Allowing duplexes, triplexes, or fourplexes in areas zoned primarily for single-family residential homes. (D) Allowing manufactured homes in areas zoned primarily for single-family residential homes. (E) Allowing multifamily development in retail, office, and light manufacturing zones. (F) Allowing single-room occupancy development wherever multifamily housing is allowed. (G) Reducing minimum lot size. (H) Ensuring historic preservation requirements and other land use policies or requirements are coordinated to encourage creation of housing in historic buildings and historic districts. (I) Increasing the allowable floor area ratio in multifamily housing areas. (J) Creating transit-oriented development zones. (K) Streamlining or shortening permitting processes and timelines, including through one-stop and parallel-process permitting. (L) Eliminating or reducing off-street parking requirements. (M) Ensuring impact and utility investment fees accurately reflect required infrastructure needs and related impacts on housing affordability are otherwise mitigated. (N) Allowing prefabricated construction. (O) Reducing or eliminating minimum unit square footage requirements. (P) Allowing the conversion of office units to apartments. (Q) Allowing the subdivision of single-family homes into duplexes. (R) Allowing accessory dwelling units, including detached accessory dwelling units, on all lots with single-family homes. (S) Establishing density bonuses. (T) Eliminating or relaxing residential property height limitations. (U) Using property tax abatements to enable higher density and mixed-income communities. (V) Donating vacant land for affordable housing development. (3) Effect of submission A submission under this subsection shall not be binding with respect to the use or distribution of amounts received under section 106. (4) Acceptance or nonacceptance of plan The acceptance or nonacceptance of any plan submitted under this subsection in which the information required under this subsection is provided is not an endorsement or approval of the plan, policies, or methodologies, or lack thereof. . (2) Effective date The requirements under subsection (n) of section 104 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5304 ), as added by paragraph (1), shall— (A) take effect on the date that is 1 year after the date of enactment of this Act; and (B) apply to recipients of a grant under subsection (b), (d)(1), or (d)(2)(B) of section 106 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306 ) before, on, and after such date. 105. Decreasing the equity penalty and incentivizing more long-term owners to sell homes (a) Increase of exclusion of gain from sale of principal residence Section 121(b) of the Internal Revenue Code of 1986 is amended— (1) by striking $250,000 and inserting $500,000 each place it appears, (2) by striking 500,000 and inserting $1,000,000 each place it appears, (3) in paragraph (2)(A), in the heading, by striking $500,000 and inserting $1,000,000 , and (4) by adding at the end the following new paragraph: (5) Adjustment for inflation In the case of a taxable year beginning after 2024, the $500,000 and $1,000,000 amounts in paragraphs (1), (2), and (4) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2023 for 2016 in subparagraph (A)(ii) thereof. If any increase under this clause is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. . (b) Effective date The amendments made by this section shall apply to sales and exchanges after the date of the enactment of this Act. II Increasing access to housing and addressing cost 201. Expanding workforce and volunteer housing (a) Congressional findings The Congress finds that— (1) the lack of affordable housing in the United States is an issue impacting millions of middle-class, working American families; (2) many of these families earn more annually than the income limits for certain Federal housing financing and benefits; and (3) these families are often excluded from living in neighborhoods near their places of work, schools, shopping, and healthcare due to a lack of affordability. (b) Report to Congress Not later than 180 days after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Congress a report that— (1) identifies issues with housing affordability for America’s middle-income homeowners and renters, including identifying geographically where housing is the most unaffordable for these populations; (2) identifies Federal housing programs, including Federal tax credits, grants, credit programs, and other programs that currently benefit lower-income households, which are not available to middle-income households; (3) identifies any gaps in the inclusion of middle-income households in Federal housing programs designed to promote affordability; (4) sets forth recommendations for a definition of workforce housing based on income parameters in order to assist Federal agencies in including middle-income households under existing Federal programs; and (5) analyzes how such a definition could relate to incentives for workforce housing development through Federal programs, policies, and other initiatives. 202. Supporting affordability and safety for public servants Section 3(a) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(a) ) is amended— (1) in paragraph (1), by striking Except as provided in paragraph (2) and inserting Except as provided in paragraphs (2) and (4) ; and (2) in paragraph (4)— (A) in the heading, by striking Occupancy by police officers and inserting, Occupancy by police officers, firefighters, and emergency medical technicians ; (B) by redesignating subparagraph (C) as subparagraph (D); (C) by inserting after subparagraph (B) the following: (C) Rental payments Notwithstanding paragraph (1), a family of which one or more members are a police officer, firefighter, or emergency medical technician shall pay as rent for a dwelling unit assisted under this Act the highest of the following amounts, rounded to the nearest dollar: (i) 15 per centum of the family's monthly adjusted income; or (ii) 5 per centum of the family's monthly income ; and (D) by amending subparagraph (D), as so redesignated, to read as follows: (D) Definitions In this paragraph: (i) Police officer The term police officer means any person determined by a public housing agency to be, during the period of residence of that person in public housing, employed on a full-time basis as a duly licensed professional police officer by a Federal, State, or local government or by any agency thereof (including a public housing agency having an accredited police force). (ii) Firefighter The term firefighter means any person determined by a public housing agency to be, during the period of residence of that person in public housing, employed on a full-time basis as a firefighter by a fire department or emergency medical services responder unit of the Federal Government, a State, unit of general local government, or an Indian tribal government. (iii) Emergency medical technician The term emergency medical technician means any person determined by a public housing agency to be, during the period of residence of that person in public housing, employed on a full-time basis as an emergency medical technician by a fire department or emergency medical services responder unit of the Federal Government, a State, unit of general local government, or an Indian tribal government. . 203. Expanding programs supporting homeownership for those serving the community (a) Eligibility for Good Neighbors Next Door Sales Program Members of the Armed Forces, firefighters, and law enforcement officers shall be eligible to purchase eligible properties under the Good Neighbor Next Door Sales Program of the Secretary of Housing and Urban Development, as provided under subsection (b). (b) Eligible properties Notwithstanding section 204 of the National Housing Act ( 12 U.S.C. 1710 ), part 291 of the regulations of the Secretary of Housing and Urban Development (24 C.F.R. part 291), or any other provision of law, regulation, guideline, order, or notice, in carrying out the Good Neighbor Next Door Sales Program for single-unit properties acquired by the Secretary, properties shall be made available for purchase under the Program by members of the Armed Forces, by firefighters, and by law enforcement officers without regard to whether or not they are located in a revitalization area. (c) Regulations The Secretary of Housing and Urban Development shall amend the regulations of the Secretary as necessary to carry out subsections (a) and (b). 204. Improving volunteer first responder housing (a) Definitions In this section: (1) Bona fide volunteer; eligible employer; qualified services The terms bona fide volunteer , eligible employer , and qualified services have the meanings given those terms in section 457(e) of the Internal Revenue Code of 1986. (2) Indian Tribe The term Indian Tribe has the meaning given the term Indian tribe in section 501(b) of the Housing Act of 1949 ( 42 U.S.C. 1471(b) ). (3) Qualified volunteer first responder The term qualified volunteer first responder means any individual who— (A) is a bona fide volunteer performing qualified services for an eligible employer; (B) continuously served as a volunteer for the eligible employer during the 2-year period preceding the date on which the individual submits a verification letter under section 3(b) or 4(b); (C) during each of the 2 years described in subparagraph (B)— (i) met the minimum requirements for active membership established by the eligible employer; or (ii) if the eligible employer did not establish minimum requirements, volunteered for not less than 200 hours; and (D) is certified as a firefighter or other first responder in the State, political subdivision of a State, or jurisdiction of an Indian Tribe in which the individual is serving as volunteer. (b) Department of Agriculture Single Family Housing Guaranteed Loan Program (1) In general A qualified volunteer first responder who submits to the Secretary of Agriculture (referred to in this subsection as the Secretary ) a verification letter in accordance with paragraph (2) shall be eligible for a deduction in annual income under section 3555.152(c) of title 7, Code of Federal Regulations (or any successor regulation), in the amount of $18,000. (2) Verification letter To be eligible for a deduction under paragraph (1), a qualified volunteer first responder shall submit to the Secretary a verification letter from the head of the eligible employer for which the qualified volunteer first responder volunteers, which shall— (A) include the date on which the qualified volunteer first responder joined the eligible employer as a volunteer; (B) attest to the Secretary that the qualified volunteer first responder meets the requirements under subparagraphs (B) and (C) of subsection (a)(3); and (C) include a copy of the certification described in subsection (a)(3)(D). (c) Good Neighbor Next Door Sales Program and similar programs (1) Eligibility A qualified volunteer first responder who submits to the Secretary of Housing and Urban Development (referred to in this section as the Secretary ) a verification letter in accordance with paragraph (2) shall qualify as a firefighter or emergency medical technician for purposes of any single family property disposition program carried out by the Secretary by regulation under section 204(g) of the National Housing Act ( 12 U.S.C. 1710(g) ) that offers discounted home prices to firefighters or emergency medical technicians. (2) Verification letter To qualify to purchase a home under a single family property disposition program referred to in paragraph (1), a qualified first responder shall submit to the Secretary a verification letter from the head of the eligible employer for which the qualified volunteer first responder volunteers, which shall— (A) include the date on which the qualified volunteer first responder joined the eligible employer as a volunteer; (B) attest to the Secretary that the qualified volunteer first responder meets the requirements under subparagraphs (B) and (C) of subsection (a)(3); (C) include a copy of the certification described in subsection (a)(3)(D); and (D) include a certification from the qualified volunteer first responder of the responder’s good faith intention to continue serving as a volunteer for the eligible employer for not less than 1 year following the date of closing. 205. Improving access to housing for veterans (a) Service connected disability compensation Section 102(a)(20) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5302(a)(20) ) is amended by adding at the end the following: (C) Service-connected disability compensation When determining whether a person is of a person of low and moderate income, a person of low income, or a person of moderate income under this paragraph, a State, unit of general local government, or Indian tribe shall exclude any service-connected disability compensation received by such person from the Department of Veterans Affairs. . (b) Report The Comptroller General of the United States shall, not later than 1 year after the date of the enactment of this Act, submit to the Congress a report that— (1) examines how service-connected disability compensation is treated for the purposes of determining eligibility for all programs administered by the Secretary of Housing and Urban Development and identifies any cases where service-connected disability compensation is treated inconsistently across a program; and (2) with respect to each program administered by the Secretary of Housing and Urban Development, provides legislative recommendations relating to how such program could better serve veteran populations, and under-served communities. 206. Supporting veteran families in need Section 2044(e) of title 38, United States Code, is amended— (1) by redesignating subparagraphs (A) through (H) as paragraphs (1) through (8), respectively; and (2) by adding at the end the following new paragraph: (9) The amounts that are appropriated to carry out such subsections for fiscal year 2026 and each fiscal year thereafter. . 207. Attracting private investment to build and rehabilitate owner-occupied homes (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 42 the following new section: 42A. Neighborhood homes credit (a) Allowance of credit For purposes of section 38, the neighborhood homes credit determined under this section for the taxable year is, with respect to each qualified residence sold by the taxpayer during such taxable year in an affordable sale, the lesser of— (1) an amount equal to— (A) the excess (if any) of— (i) the reasonable development costs paid or incurred by the taxpayer with respect to such qualified residence, over (ii) the sale price of such qualified residence (reduced by any reasonable expenses paid or incurred by the taxpayer in connection with such sale), or (B) if the neighborhood homes credit agency determines it is necessary to ensure financial feasibility, an amount not to exceed 120 percent of the amount under subparagraph (A), (2) 35 percent of the eligible development costs paid or incurred by the taxpayer with respect to such qualified residence, or (3) 28 percent of the national median sale price for new homes (as determined pursuant to the most recent census data available as of the date on which the neighborhood homes credit agency makes an allocation for the qualified project). (b) Development costs For purposes of this section— (1) Reasonable development costs (A) In general The term reasonable development costs means amounts paid or incurred for the acquisition of buildings and land, construction, substantial rehabilitation, demolition of structures, or environmental remediation, to the extent that the neighborhood homes credit agency determines that such amounts meet the standards specified pursuant to subsection (f)(1)(C) (as of the date on which construction or substantial rehabilitation is substantially complete, as determined by such agency) and are necessary to ensure the financial feasibility of such qualified residence. (B) Considerations in making determination In making the determination under subparagraph (A), the neighborhood homes credit agency shall consider— (i) the sources and uses of funds and the total financing, (ii) any proceeds or receipts generated or expected to be generated by reason of tax benefits, and (iii) the reasonableness of the developmental costs and fees. (2) Eligible development costs The term eligible development costs means the amount which would be reasonable development costs if the amounts taken into account as paid or incurred for the acquisition of buildings and land did not exceed 75 percent of such costs determined without regard to any amount paid or incurred for the acquisition of buildings and land. (3) Substantial rehabilitation The term substantial rehabilitation means amounts paid or incurred for rehabilitation of a qualified residence if such amounts exceed the greater of— (A) $20,000, or (B) 20 percent of the amounts paid or incurred by the taxpayer for the acquisition of buildings and land with respect to such qualified residence. (4) Construction and rehabilitation only after allocation taken into account (A) In general The terms reasonable development costs and eligible development costs shall not include any amount paid or incurred before the date on which an allocation is made to the taxpayer under subsection (e) with respect to the qualified project of which the qualified residence is part unless such amount is paid or incurred for the acquisition of buildings or land. (B) Land and building acquisition costs Amounts paid or incurred for the acquisition of buildings or land shall be included under paragraph (A) only if paid or incurred not more than 3 years before the date on which the allocation referred to in subparagraph (A) is made. If the taxpayer acquired any building or land from an entity (or any related party to such entity) that holds an ownership interest in the taxpayer, then such entity must also have acquired such property within such 3-year period, and the acquisition cost included under subparagraph (A) with respect to the taxpayer shall not exceed the amount such entity paid or incurred to acquire such property. (c) Qualified residence For purposes of this section— (1) In general The term qualified residence means a residence that— (A) is real property affixed on a permanent foundation, (B) is— (i) a house which is comprised of 4 or fewer residential units, (ii) a condominium unit, or (iii) a house or an apartment owned by a cooperative housing corporation (as defined in section 216(b)), (C) is part of a qualified project with respect to which the neighborhood homes credit agency has made an allocation under subsection (e), and (D) is located in a qualified census tract (determined as of the date of such allocation). (2) Qualified census tract (A) In general The term qualified census tract means a census tract— (i) which— (I) has a median family income which does not exceed 80 percent of the median family income for the applicable area, (II) has a poverty rate that is not less than 130 percent of the poverty rate of the applicable area, and (III) has a median value for owner-occupied homes that does not exceed the median value for owner-occupied homes in the applicable area, (ii) which— (I) is located in a city which has a population of not less than 50,000 and such city has a poverty rate that is not less than 150 percent of the poverty rate of the applicable area, (II) has a median family income which does not exceed the median family income for the applicable area, and (III) has a median value for owner-occupied homes that does not exceed 80 percent of the median value for owner-occupied homes in the applicable area, (iii) which— (I) is located in a nonmetropolitan county, (II) has a median family income which does not exceed the median family income for the applicable area, and (III) has been designated by a neighborhood homes credit agency under this clause, or (iv) which is not otherwise a qualified census tract and is located in a disaster area (as defined in section 7508A(d)(3)), but only with respect to credits allocated in any period during which the President of the United States has determined that such area warrants individual or individual and public assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. (B) Applicable area The term applicable area means— (i) in the case of a metropolitan census tract, the metropolitan area in which such census tract is located, and (ii) in the case of a census tract other than a census tract described in clause (i), the State. (d) Affordable sale For purposes of this section— (1) In general The term affordable sale means a sale to a qualified homeowner of a qualified residence that the neighborhood homes credit agency certifies as meeting the standards promulgated under subsection (f)(1)(D) for a price that does not exceed— (A) in the case of any qualified residence not described in subparagraph (B), (C), or (D), the amount equal to the product of 4 multiplied by the median family income for the applicable area (as determined pursuant to the most recent census data available as of the date of the contract for such sale), (B) in the case of a house comprised of 2 residential units, 125 percent of the amount described in subparagraph (A), (C) in the case of a house comprised of 3 residential units, 150 percent of the amount described in subparagraph (A), or (D) in the case of a house comprised of 4 residential units, 175 percent of the amount described in subparagraph (A). (2) Qualified homeowner The term qualified homeowner means, with respect to a qualified residence, an individual— (A) who owns and uses such qualified residence as the principal residence of such individual, and (B) whose family income (determined as of the date that a binding contract for the affordable sale of such residence is entered into) is 140 percent or less of the median family income for the applicable area in which the qualified residence is located. (e) Credit ceiling and allocations (1) Credit limited based on allocations to qualified projects (A) In general The credit allowed under subsection (a) to any taxpayer for any taxable year with respect to one or more qualified residences which are part of the same qualified project shall not exceed the excess (if any) of— (i) the amount allocated by the neighborhood homes credit agency under this paragraph to such taxpayer with respect to such qualified project, over (ii) the aggregate amount of credit allowed under subsection (a) to such taxpayer with respect to qualified residences which are a part of such qualified project for all prior taxable years. (B) Deadline for completion No credit shall be allowed under subsection (a) with respect to any qualified residence unless the affordable sale of such residence is during the 5-year period beginning on the date of the allocation to the qualified project of which such residence is a part (or, in the case of a qualified residence to which subsection (i) applies, the rehabilitation of such residence is completed during such 5-year period). (2) Limitations on allocations to qualified projects (A) Allocations limited by State neighborhood homes credit ceiling The aggregate amount allocated to taxpayers with respect to qualified projects by the neighborhood homes credit agency of any State for any calendar year shall not exceed the State neighborhood homes credit amount of such State for such calendar year. (B) Set-aside for certain projects involving qualified nonprofit organizations Rules similar to the rules of section 42(h)(5) shall apply for purposes of this section. (3) Determination of State neighborhood homes credit ceiling (A) In general The State neighborhood homes credit amount for a State for a calendar year is an amount equal to the sum of— (i) the greater of— (I) the product of $7, multiplied by the State population (determined in accordance with section 146(j)), or (II) $9,000,000, and (ii) any amount previously allocated to any taxpayer with respect to any qualified project by the neighborhood homes credit agency of such State which can no longer be allocated to any qualified residence because the 5-year period described in paragraph (1)(B) expires during calendar year. (B) 3-year carryforward of unused limitation The State neighborhood homes credit amount for a State for a calendar year shall be increased by the excess (if any) of the State neighborhood homes credit amount for such State for the preceding calendar year over the aggregate amount allocated by the neighborhood homes credit agency of such State during such preceding calendar year. Any amount carried forward under the preceding sentence shall not be carried past the third calendar year after the calendar year in which such credit amount originally arose, determined on a first-in, first-out basis. (f) Responsibilities of neighborhood homes credit agencies (1) In general Notwithstanding subsection (e), the State neighborhood homes credit dollar amount shall be zero for a calendar year unless the neighborhood homes credit agency of the State— (A) allocates such amount pursuant to a qualified allocation plan of the neighborhood homes credit agency, (B) allocates not more than 20 percent of amounts allocated in the previous year (or for allocations made in 2025, not more than 20 percent of the neighborhood homes credit ceiling for such year) to projects with respect to qualified residences which— (i) are located in census tracts described in subsection (c)(2)(A)(iii), (c)(2)(A)(iv), (i)(5), or (ii) are not located in a qualified census tract but meet the requirements of subsection (i)(8), (C) promulgates standards with respect to reasonable qualified development costs and fees, (D) promulgates standards with respect to construction quality, (E) in the case of any neighborhood homes credit agency which makes an allocation to a qualified project which includes any qualified residence to which subsection (i) applies, promulgates standards with respect to protecting the owners of such residences, including the capacity of such owners to pay rehabilitation costs not covered by the credit provided by this section and providing for the disclosure to such owners of their rights and responsibilities with respect to the rehabilitation of such residences, (F) submits to the Secretary (at such time and in such manner as the Secretary may prescribe) an annual report specifying— (i) the amount of the neighborhood homes credits allocated to each qualified project for the previous year, (ii) with respect to each qualified residence completed in the preceding calendar year— (I) the census tract in which such qualified residence is located, (II) with respect to the qualified project that includes such qualified residence, the year in which such project received an allocation under this section, (III) whether such qualified residence was new, substantially rehabilitated and sold to a qualified homeowner, or substantially rehabilitated pursuant to subsection (i), (IV) the eligible development costs of such qualified residence, (V) the amount of the neighborhood homes credit with respect to such qualified residence, (VI) the sales price of such qualified residence, if applicable, and (VII) the family income of the qualified homeowner (expressed as a percentage of the applicable area median family income for the location of the qualified residence), and (iii) such other information as the Secretary may require, and (G) makes available to the general public a written explanation for any allocation of a neighborhood homes credit dollar amount which is not made in accordance with established priorities and selection criteria of the neighborhood homes credit agency. Subparagraph (B) shall be applied by substituting 40 percent for 20 percent each place it appears in the case of any State in which at least 45 percent of the State population resides outside metropolitan statistical areas (within the meaning of section 143(k)(2)(B)) and less than 20 percent of the census tracts located in the State are described in subsection (c)(2)(A)(i). (2) Qualified allocation plan For purposes of this subsection, the term qualified allocation plan means any plan which— (A) sets forth the selection criteria to be used to prioritize qualified projects for allocations of State neighborhood homes credit dollar amounts, including— (i) the need for new or substantially rehabilitated owner-occupied homes in the area addressed by the project, (ii) the expected contribution of the project to neighborhood stability and revitalization, including the impact on neighborhood residents, (iii) the capability and prior performance of the project sponsor, and (iv) the likelihood the project will result in long-term homeownership, (B) has been made available for public comment, and (C) provides a procedure that the neighborhood homes credit agency (or any agent or contractor of such agency) shall follow for purposes of— (i) identifying noncompliance with any provisions of this section, and (ii) notifying the Internal Revenue Service of any such noncompliance of which the agency becomes aware. (g) Repayment (1) In general (A) Sold during 5-year period If a qualified residence is sold during the 5-year period beginning immediately after the affordable sale of such qualified residence referred to in subsection (a), the seller shall transfer an amount equal to the repayment amount to the relevant neighborhood homes credit agency. (B) Use of repayments A neighborhood homes credit agency shall use any amount received pursuant to subparagraph (A) only for purposes of qualified projects. (2) Repayment amount For purposes of paragraph (1)(A)— (A) In general The repayment amount is an amount equal to the applicable percentage of the gain from the sale to which the repayment relates. (B) Applicable percentage For purposes of subparagraph (A), the applicable percentage is 50 percent, reduced by 10 percentage points for each year of the 5-year period referred to in paragraph (1)(A) which ends before the date of such sale. (3) Lien for repayment amount A neighborhood homes credit agency receiving an allocation under this section shall place a lien on each qualified residence that is built or rehabilitated as part of a qualified project for an amount such agency deems necessary to ensure potential repayment pursuant to paragraph (1)(A). (4) Waiver (A) In general The neighborhood homes credit agency may waive the repayment required under paragraph (1)(A) if the agency determines that making a repayment would constitute a hardship to the seller. (B) Hardship For purposes of subparagraph (A), with respect to the seller, a hardship may include— (i) divorce, (ii) disability, (iii) illness, or (iv) any other hardship identified by the neighborhood homes credit agency for purposes of this paragraph. (h) Other definitions and special rules For purposes of this section— (1) Neighborhood homes credit agency The term neighborhood homes credit agency means the agency designated by the governor of a State as the neighborhood homes credit agency of the State. (2) Qualified project The term qualified project means a project that a neighborhood homes credit agency certifies will build or substantially rehabilitate one or more qualified residences. (3) Determinations of family income Rules similar to the rules of section 143(f)(2) shall apply for purposes of this section. (4) Possessions treated as states The term State includes the District of Columbia and the possessions of the United States. (5) Special rules related to condominiums and cooperative housing corporations (A) Determination of development costs In the case of a qualified residence described in clause (ii) or (iii) of subsection (c)(1)(A), the reasonable development costs and eligible development costs of such qualified residence shall be an amount equal to such costs, respectively, of the entire condominium or cooperative housing property in which such qualified residence is located, multiplied by a fraction— (i) the numerator of which is the total floor space of such qualified residence, and (ii) the denominator of which is the total floor space of all residences within such property. (B) Tenant-stockholders of cooperative housing corporations treated as owners In the case of a cooperative housing corporation (as such term is defined in section 216(b)), a tenant-stockholder shall be treated as owning the house or apartment which such person is entitled to occupy. (6) Related party sales not treated as affordable sales (A) In general A sale between related persons shall not be treated as an affordable sale. (B) Related persons For purposes of this paragraph, a person (in this subparagraph referred to as the related person ) is related to any person if the related person bears a relationship to such person specified in section 267(b) or 707(b)(1), or the related person and such person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section 52). For purposes of the preceding sentence, in applying section 267(b) or 707(b)(1), 10 percent shall be substituted for 50 percent . (7) Inflation adjustment (A) In general In the case of a calendar year after 2025, the dollar amounts in subsections (b)(3)(A), (e)(3)(A)(i)(I), (e)(3)(A)(i)(II), and (i)(2)(C) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2022 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding (i) In the case of the dollar amounts in subsections (b)(3)(A) and (i)(2)(C), any increase under paragraph (1) which is not a multiple of $1,000 shall be rounded to the nearest multiple of $1,000. (ii) In the case of the dollar amount in subsection (e)(3)(A)(i)(I), any increase under paragraph (1) which is not a multiple of $0.01 shall be rounded to the nearest multiple of $0.01. (iii) In the case of the dollar amount in subsection (e)(3)(A)(i)(II), any increase under paragraph (1) which is not a multiple of $100,000 shall be rounded to the nearest multiple of $100,000. (8) Report (A) In general The Secretary shall annually issue a report, to be made available to the public, which contains the information submitted pursuant to subsection (f)(1)(F). (B) De-identification The Secretary shall ensure that any information made public pursuant to subparagraph (A) excludes any information that would allow for the identification of qualified homeowners. (9) List of qualified census tracts The Secretary of Housing and Urban Development shall, for each year, make publicly available a list of qualified census tracts under— (A) on a combined basis, clauses (i) and (ii) of subsection (c)(2)(A), (B) clause (iii) of such subsection, and (C) subsection (i)(5)(A). (10) Denial of deductions if converted to rental housing If, during the 5-year period beginning immediately after the affordable sale of a qualified residence referred to in subsection (a), an individual who owns a qualified residence (whether or not such individual was the purchaser in such affordable sale) fails to use such qualified residence as such individual’s principal residence for any period of time, no deduction shall be allowed for expenses paid or incurred by such individual with respect to renting, during such period of time, such qualified residence. (i) Application of credit with respect to owner-Occupied rehabilitations (1) In general In the case of a qualified rehabilitation by the taxpayer of any qualified residence which is owned (as of the date that the written binding contract referred to in paragraph (3) is entered into) by a specified homeowner, the rules of paragraphs (2) through (7) shall apply. (2) Alternative credit determination In the case of any qualified residence described in paragraph (1), the neighborhood homes credit determined under subsection (a) with respect to such residence shall (in lieu of any credit otherwise determined under subsection (a) with respect to such residence) be allowed in the taxable year during which the qualified rehabilitation is completed (as determined by the neighborhood homes credit agency) and shall be equal to the least of— (A) the excess (if any) of— (i) the amounts paid or incurred by the taxpayer for the qualified rehabilitation of the qualified residence to the extent that such amounts are certified by the neighborhood homes credit agency (at the time of the completion of such rehabilitation) as meeting the standards specified pursuant to subsection (f)(1)(C), over (ii) any amounts paid to such taxpayer for such rehabilitation, (B) 50 percent of the amounts described in subparagraph (A)(i), or (C) $50,000. (3) Qualified rehabilitation (A) In general For purposes of this subsection, the term qualified rehabilitation means a rehabilitation or reconstruction performed pursuant to a written binding contract between the taxpayer and the specified homeowner if the amount paid or incurred by the taxpayer in the performance of such rehabilitation or reconstruction exceeds the dollar amount in effect under subsection (b)(3)(A). (B) Application of limitation to expenses paid or incurred after allocation A rule similar to the rule of section (b)(4) shall apply for purposes of this subsection. (4) Specified homeowner For purposes of this subsection, the term qualified homeowner means, with respect to a qualified residence, an individual— (A) who owns and uses such qualified residence as the principal residence of such individual as of the date that the written binding contract referred to in paragraph (3) is entered into, and (B) whose family income (determined as of such date) does not exceed the median family income for the applicable area (with respect to the census tract in which the qualified residence is located). (5) Additional census tracts in which owner-occupied residences may be located In the case of any qualified residence described in paragraph (1), the term qualified census tract includes any census tract which— (A) meets the requirements of subsection (c)(2)(A)(i) without regard to subclause (III) thereof, and (B) is designated by the neighborhood homes credit agency for purposes of this paragraph. (6) Modification of repayment requirement In the case of any qualified residence described in paragraph (1), subsection (g) shall be applied by beginning the 5-year period otherwise described therein on the date on which the qualified homeowner acquired such residence. (7) Related parties Paragraph (1) shall not apply if the taxpayer is the owner of the qualified residence described in paragraph (1) or is related (within the meaning of subsection (h)(6)(B)) to such owner. (8) Pyrrhotite remediation The requirement of subsection (c)(1)(C) shall not apply to a qualified rehabilitation under this subsection of a qualified residence that is documented by an engineer’s report and core testing to have a foundation that is adversely impacted by pyrrhotite or other iron sulfide minerals. (j) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations that prevent avoidance of the rules, and abuse of the purposes, of this section. . (b) Credit allowed as part of general business credit Section 38(b) of the Internal Revenue Code of 1986 is amended by striking plus at the end of paragraph (37), by striking the period at the end of paragraph (38) and inserting , plus , and by adding at the end the following new paragraph: (39) the neighborhood homes credit determined under section 42A(a). . (c) Credit allowed against alternative minimum tax Section 38(c)(4)(B) of the Internal Revenue Code of 1986 is amended by redesignating clauses (iv) through (xii) as clauses (v) through (xiii), respectively, and by inserting after clause (iii) the following new clause: (iv) the credit determined under section 42A, . (d) Basis adjustments (1) Energy efficient home improvement credit Section 25C(g) of the Internal Revenue Code of 1986 is amended by adding after the first sentence the following new sentence: This subsection shall not apply for purposes of determining the eligible development costs or adjusted basis of any building under section 42A. . (2) Residential clean energy credit Section 25D(f) of such Code is amended by adding after the first sentence the following new sentence: This subsection shall not apply for purposes of determining the eligible development costs or adjusted basis of any building under section 42A. . (3) New energy efficient home credit Section 45L(e) of such Code is amended by inserting or for purposes of determining the eligible development costs or adjusted basis of any building under section 42A after section 42 . (e) Exclusion from gross income Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139J. State energy subsidies for qualified residences (a) Exclusion from gross income Gross income shall not include the value of any subsidy provided to a taxpayer (whether directly or indirectly) by any State energy office (as defined in section 124(a) of the Energy Policy Act of 2005 ( 42 U.S.C. 15821(a) )) for purposes of any energy improvements made to a qualified residence (as defined in section 42A(c)(1)). . (f) Conforming amendments (1) Subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) of section 469 of the Internal Revenue Code of 1986 are each amended by inserting or 42A after section 42 . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 42 the following new item: Sec. 42A. Neighborhood homes credit. . (3) The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item relating to section 140 the following new item: Sec. 139J. State energy subsidies for qualified residences. . (g) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025. 208. Better utilizing and disposing of unused military and government lands for housing (a) In general A State or unit of local government may submit a petition to a Federal agency requesting to use unused property owned by such Federal agency for the construction of affordable housing. (b) Submission to PBRB Any Federal agency that receives a petition under subsection (a) shall submit a copy of such petition to the Public Buildings Reform Board. (c) Determination A Federal agency that receives a petition under subsection (a) shall, not less that 60 days after receiving such petition determine whether the property is excess. (d) Justification required If a Federal agency determines under subsection (c) that a property is not excess such Federal agency shall submit to the Office of Management and Budget a statement that justifies why such property is not excess. (e) Donation by GSA If a Federal agency determines a property to be excess under subsection (b), the General Services Administration may donate such property to the State or unit of local government that submitted the petition under subsection (a). 209. Energy conservation standards for manufactured housing The Secretary of Energy may not, by rule or otherwise, establish energy conservation standards for manufactured housing. 210. Rental assistance demonstration program The matter under the heading Rental Assistance Demonstration in the Department of Housing and Urban Development Appropriations Act, 2012 ( Public Law 112–55 ), is amended— (1) by striking the second proviso; and (2) by striking the fourth proviso. 211. Creating incentives for small dollar loan originators (a) Small dollar mortgage defined In this section, the term small dollar mortgage means a mortgage loan that— (1) has an original principal obligation of not more than $70,000; (2) is secured by real property designed for the occupancy of 1 to 4 families; and (3) is— (A) insured by the Federal Housing Administration under title II of the National Housing Act ( 12 U.S.C. 1707 et seq. ); (B) made, guaranteed, or insured by the Department of Veterans Affairs; (C) made, guaranteed, or insured by the Department of Agriculture; or (D) eligible to be purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (b) Requirement To update regulations Not later than 270 days after the date of enactment of this Act, the Director of the Bureau of Consumer Financial Protection shall issue regulations to update part 1026 of title 12, Code of Federal Regulations (commonly referred to as Regulation Z ) to allow for salaried originators of residential mortgage loans that only originate small dollar mortgages. 212. Small dollar mortgage points and fees (a) Definition In this section, the term small dollar mortgage means a mortgage with an original principal obligation of less than $70,000. (b) Amendments required Not later than 180 days after the date of enactment of this Act, the Director of the Bureau of Consumer Financial Protection, in consultation with the Secretary of Housing and Urban Development and the Director of the Federal Housing Finance Agency, shall amend the limitations with respect to points and fees under section 1026.32 of title 12, Code of Federal Regulations, or any successor regulation, to encourage additional lending for small dollar mortgages. 213. Removing Outdated Regulation for Manufactured Housing (a) In general Section 603(6) of the National Manufactured Housing Construction and Safety Standards Act of 1974 ( 42 U.S.C. 5402(6) ) is amended by striking built on a permanent chassis and . (b) Implementation Not later than 90 days after the date of the enactment of this Act, the consensus committee established under section 604(a)(3) of the National Manufactured Housing Construction and Safety Standards Act of 1974 ( 42 U.S.C. 5403(a)(3) ) shall meet to develop and recommend to the Secretary of Housing and Urban Development such revisions to the Federal manufactured home construction and safety standards, and related regulations, as are necessary to implement the amendment made by subsection (a) of this section. Such revised standards shall be considered by the Secretary for adoption pursuant to the process set forth in section 604 of such Act. III Serving the most vulnerable; health and safety 301. GAO study to determine proximity of housing to Superfund sites (a) Study The Comptroller General of the United States shall carry out a study to identify how many residential dwelling units, and how many dwelling units in public housing (as such term is defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(B))), are located within one mile of a site that is included on the National Priorities List pursuant to section 105 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ( 42 U.S.C. 9605 ). (b) Report Not later than the expiration of the 6-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Congress identifying, for each site referred to in subsection (a), how many residential dwelling units, and how many dwelling units in public housing, are located within one mile of such site. 302. Ensuring public housing agencies inspect each dwelling unit each year The Secretary of Housing and Urban Development and the Comptroller General of the United States shall, not later than 1 year after the date of the enactment of this section, conduct a study and submit a report to the Congress that identifies: (1) how many inspections required to be conducted by the Secretary of Housing and Urban Development in the 1-year period are incomplete; and (2) how many inspectors are needed to ensure that all inspections required to be conducted by the Secretary of Housing and Urban Development can be completed each year. 303. Incentivizing local solutions to homelessness (a) Continuum of care program Section 428 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 1186b ) is amended by adding at the end the following: (f) Incentives for reducing homelesness (1) In general From the amounts made available to carry out this subtitle for a fiscal year, the Secretary may use not more than 10 percent of the amounts made available to carry out this subtitle for incentives described in paragraph (2). (2) Incentives The Secretary may provide bonuses or other incentives to a geographic area under this subtitle if, during a fiscal year, the Secretary determines that an entity receiving funds under this subtitle has demonstrably and measurably improved housing outcomes for homeless individuals in the geographic area. . (b) Emergency solutions grants program Section 413 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11372a ) is amended by adding at the end the following: (c) Incentives for reducing homelesness (1) In general From the amounts made available to carry out this subtitle for a fiscal year, the Secretary may use not more than 10 percent of the amounts made available to carry out this subtitle for incentives described in paragraph (2). (2) Incentives The Secretary may provide bonuses or other incentives to a geographic area under this subtitle if, during a fiscal year, the Secretary determines that an entity receiving funds under this subtitle has demonstrably and measurably improved housing outcomes for homeless individuals in the geographic area. . 304. Improving mold and health standards (a) Definitions In this section: (1) Indoor residential mold The term indoor residential mold means any form of multicellular fungi in indoor environments, including cladosporium, penicillium, alternaria, aspergillus, fusarium, trichoderma, memnoniella, mucor, stachybotrys chartarum, streptomyces, and epicoccumoften found in water-damaged indoor environments and building materials. (2) Residential mold inspection The term residential mold inspection means an inspection, by a certified or licensed mold inspector or other indoor environmental professional, including through the Real Estate Assessment Center, of real property that is designed to discover— (A) indoor mold growth in residential properties; (B) conditions that facilitate indoor residential mold growth; or (C) indicia of conditions that are likely to facilitate indoor residential mold growth. (3) Toxigenic mold The term toxigenic mold means any indoor mold growth that may be capable of producing a toxin or toxic compound, including mycotoxins and mVOCs, that can cause pulmonary, respiratory, neurological, gastrointestinal, or dermatological illnesses, or other major adverse health impacts, as jointly determined by the Director of the National Institutes of Health, the Secretary of Housing and Urban Development, the Administrator of the Environmental Protection Agency, and the Director of the Centers for Disease Control and Prevention. (b) Interagency research on health impacts of indoor residential mold (1) Research (A) In general As soon as practicable after the date of enactment of this Act, the Director of the National Institute of Environmental Health Sciences at the National Institutes of Health, in conjunction with the Secretary of Housing and Urban Development, the Director of the Centers for Disease Control and Prevention, the Administrator of the Environmental Protection Agency, the Secretary of Energy, the Secretary of Health and Human Services, the President of the National Academy of Sciences, and the Chair of the board of directors of the National Institute of Building Sciences shall jointly conduct a comprehensive study of the health effects of indoor residential mold growth, using the most up-to-date scientific peer-reviewed medical literature. (B) Contents The study conducted under subparagraph (A) shall ascertain, among other things— (i) detailed information about harmful or toxigenic mold, as well as any toxin or toxic compound such mold can produce; (ii) the most accurate research-based methods of detecting harmful or toxigenic mold; (iii) potential dangers of prolonged or chronic exposure to indoor residential mold growth; (iv) the hazards involved with inadequate residential mold inspections and improper indoor residential mold remediation; (v) the estimated current public health burden of new or exacerbated physical illness resulting from exposure to indoor residential mold, including its disproportionate impact on vulnerable communities, including children and seniors; (vi) improved understanding of the different health symptomology that can result from exposure to mold in indoor residential environments; (vii) ongoing surveillance of the prevalence of idiopathic pulmonary hemorrhage (AIPH) in infants; and (viii) longitudinal studies on the effects of indoor old exposure in early childhood on the development of asthma and other respiratory illnesses. (C) Availability Not later than the expiration of the 3-year period beginning on the date of the enactment of this Act, the results of the study conducted under subparagraph (A) shall be submitted to Congress and the President and made available to the general public. (c) Mapping (1) In general Not later than one year after the date of the enactment of this Act, the Secretary of Housing and Urban Development shall, using the previous two years of inspection data, establish a geographic information system mapping tool that identifies areas which are impacted by a known presence of indoor residential mold. (2) Required inclusions The Secretary shall include, as part of the mapping tool— (A) inspection documentation; (B) management and occupancy reviews; (C) transfers of budget authority for contracts under section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ); and (D) any additional information, as required by the Secretary. (3) Updates The Secretary shall update the mapping tool with the latest inspection data not less often than once per year. (d) Public information and education campaign (1) Requirement The Administrator of the Environmental Protection Agency, the Secretary of Housing and Urban Development, and the heads of any other relevant Federal agencies, as determined by such Administrator and Secretary, shall jointly develop and carry out a public information and education campaign regarding indoor air quality and related issues that provides information required under this section on a recurring and annual basis through public outreach. The campaign shall commence within 1 year after the date of the enactment of this Act. (2) Topics The information and education campaign shall include information on the dangers and prevention of indoor residential moisture and mold, volatile organic compounds, dust, smoking, pollution, indoor origins of smoke, including cooking, and any other health risks, as determined by such Administrator and Secretary. (3) Indoor residential mold information The information and education campaign shall include, at minimum, the following information regarding indoor residential mold: (A) The conditions that facilitate indoor residential moisture and mold growth. (B) Guidelines for inspecting indoor residential mold growth. (C) Guidelines for remediating indoor residential mold growth. (D) The dangers and health risks of exposure to indoor residential mold growth. (E) The importance of ventilation and methods to prevent moisture accumulation in indoor residential environments. (F) Any other information as determined appropriate by the heads of the agencies referred to in paragraph (1). (4) Modes of communication (A) In general The public information and education campaign shall provide education and information through modes of communication that are commonly utilized and able to be easily consumed by relevant individuals or organizations, which shall include communication through advertisements on public transit in all 50 States and in territories and possessions of the United States, and distribution of the pamphlet developed pursuant to paragraph (9) as required under such paragraph. (B) Availability All education and information that is part of the information and education campaign shall be made publicly available on the websites of the Environmental Protection Agency, the Department of Housing and Urban Development, and any other applicable Federal agencies. (5) Targeted groups The public information and education campaign shall be designed to reach tenants, tenant organizations working directly with tenants in project-based rental assistance and other types of federally-assisted housing, resident groups, landlords, health professionals, the general public, homeowners, prospective homeowners, the real estate industry, the home construction and renovation industries, the health, property and casualty, and life insurance industries, technical and vocational schools and colleges, and other academic institutions. (6) Information Specific to Health Professions The public information and education campaign shall include information about warning signs of mold and other indoor air exposure pollutants and shall include education for health professions on mold-related illness, including for health professions who work with vulnerable populations and children in school or daycare settings. (7) Coordination In developing and carrying out the public information and education campaign, the heads of the agencies referred to in paragraph (1) may coordinate with the Ad Council. (8) Language All information provided under the public information and education campaign— (A) shall be provided in at least two languages, as determined by the Secretary, based on the most common languages spoken in the neighborhood, tribe, municipality, State, or region, and may be provided in additional languages based on the most common languages spoken in the neighborhood, tribe, municipality, State, or region, as determined by the Secretary; and (B) shall be provided in language that is at a sixth grade reading level and is easy to understand. (9) Pamphlet (A) Requirement The Secretary of Housing and Urban Development, in consultation with the Director of the National Institutes of Health, the Administrator of the Environmental Protection Agency, and the heads of any other agencies the Secretary considers appropriate, shall develop, publish, and revise, not less frequently than every 5 years, a pamphlet regarding indoor residential mold hazards. (B) Content The pamphlet required under this subsection shall— (i) contain information regarding the health risks associated with exposure to indoor residential mold growth; (ii) provide information on the hazards of indoor residential mold growth in federally-assisted and federally-owned housing; (iii) describe the risks of indoor residential mold exposure for persons residing in a dwelling with toxigenic mold; (iv) provide information on approved methods for evaluating and reducing indoor residential mold growth and their effectiveness in identifying, reducing, eliminating, or preventing indoor residential mold growth; (v) provide advice on how to obtain a list of persons certified to inspect or remediate indoor residential mold growth in the area in which the pamphlet is to be used; (vi) include a statement that a risk assessment or inspection for indoor residential mold growth is recommended prior to the purchase, lease, or renovation of target housing; (vii) include a statement that certain State and local laws impose additional requirements related to indoor residential mold growth in housing and provide a listing of Federal, State, and local agencies in each State, including address, telephone number, and electronic mail address, if available, that can provide information about applicable laws and available governmental and private assistance and financing; (viii) provide information considered by the Administrator of the Environmental Protection Agency to be appropriate or necessary to promote awareness of the hazards posed by indoor residential mold; (ix) include information on indoor air quality safety generally, including best practices when cooking, taking a shower or bath, and smoking cessation; (x) be publicly available on the websites of the Department of Housing and Urban Development, the Environmental Protection Agency, and other applicable Federal agencies; and (xi) include any other information considered by the Administrator of the Environmental Protection Agency to be appropriate or necessary. (10) Authorization of appropriations There is authorized to be appropriated such sums as may be necessary to carry out this subsection. (e) GAO study on health and safety concerns in federally-Assisted housing Not later than the expiration of the 3-year period beginning on the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to the Congress analyzing and assessing the communication, as applicable, between public housing agencies, landlords, and tenants over resolving problems with the health, safety, or other issues of dwelling units that are federally subsidized and inspected through subpart G of part 5 of title 24, Code of Federal Regulations, landlord responsiveness regarding such issues, opportunities for improvement in such communications, and how tenants understand their rights and how they are responded to when issues arise, including protocols for responding to tenant complaints and tenant understanding of such processes. The report shall include recommendations for how to improve such communications and the physical quality of the housing stock for which such assistance is provided. 305. Improving Protection from Lead Hazards (a) Definitions In this section— (1) the term covered housing means a dwelling unit receiving project-based rental assistance or tenant-based rental assistance under section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ); and (2) the term Department means the Department of Housing and Urban Development. (b) Annual risk assessment and report Not later than 1 year after the date of enactment of this Act, and every year thereafter, the Deputy Assistant Secretary for the Office of Multifamily Housing Programs of the Department, in collaboration with the Office of Lead Hazard Control and Healthy Homes of the Department, shall— (1) conduct a risk assessment of covered housing to identify properties with the greatest risk of exposing children under the age of 6 years old to lead hazards, including lead-based paint and lead service lines; (2) develop an action plan relating to remediation, control, and safeguards to address lead hazards, including lead-based paint and lead-service lines, in covered housing identified in the risk assessment conducted under paragraph (1), with priority given to those properties with children under the age of 6 years old; and (3) submit to Congress a report on properties with covered housing that have lead-based paint or lead service lines, including the number of children under the age of 6 years old living at these properties. (c) Uniform physical condition standard inspections In conducting uniform physical condition inspections in accordance with part 5 of title 24, Code of Federal Regulations, or any successor regulation, the Secretary shall include lead-based paint and lead service lines in the graded scoring as an exigent health and safety deficiency to ensure that— (1) lead-based paint and lead service lines are tracked at each applicable property; and (2) the owners of those properties are held accountable for remediating deficiencies. 306. Improving housing for the elderly and disabled The Comptroller General of the United States shall, not later than 1 year after the date of the enactment of this section, conduct a study that identifies options to remove barriers and improve housing for persons who are elderly or disabled, including any potential impacts of providing capital advances for— (1) the program for supportive housing for the elderly under section 202 of the Housing Act of 1959; and (2) the program for supportive housing for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act. IV Good Governance 401. Requiring annual testimony and oversight from housing regulators (a) Testimony by Secretary Section 7 of the Department of Housing and Urban Development Act ( 42 U.S.C. 3535 ) is amended by adding at the end the following new subsection: (u) Annual testimony The Secretary shall appear before the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate at an annual hearing and present testimony regarding the operations of the Department during the preceding year, including regarding the following topics: (1) The physical condition of all public housing and other housing assisted by the Department. (2) The financial health of the mortgage insurance funds of the FHA. (3) Oversight by the Department of grantees and sub-grantees engaging in waste, fraud, and abuse. (4) Ongoing activities of the Department, as appropriate. . (b) Testimony by Inspector General Not later than October 1 of each year, the Inspector General of the Department of Housing and Urban Development shall appear before the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate and present testimony on the Office of Inspector General’s— (1) efforts to detect and prevent fraud, waste, and abuse; (2) ability to conduct and supervise audits, investigations, and reviews; (3) actions to identify opportunities for the programs of the Department of Housing and Urban Development to progress and succeed; and (4) ongoing activities regarding any such additional work, as appropriate. 402. Requiring annual testimony and oversight for government guaranteed or insured mortgage programs On an annual basis, the following individuals shall testify before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on mortgage loans guaranteed or insured by the Federal Government: (1) The President of the Government National Mortgage Association. (2) The Federal Housing Commissioner. (3) The Administrator of the Rural Housing Service. 403. Testimony and report from United States Interagency Council on Homelessness Section 203(a) of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11313(a) ) is amended— (1) in paragraph (1)— (A) by striking Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 and inserting Revitalizing America’s Housing Act ; and (B) by striking update such plan annually and inserting the following: submit to the President and Congress a report every year thereafter that includes— (A) the status of completion of the plan; (B) any modifications that were made to the plan and the reasons for those modifications; and (C) an estimate of when homelessness will be ended; ; (2) by redesignating paragraphs (10) through (13) as paragraphs (11) through (14), respectively; (3) by redesignating the second paragraph (9) (relating to collecting and disseminating information) as paragraph (10); (4) in paragraph (13), as so redesignated, by striking and at the end; (5) in paragraph (14), as so redesignated, by striking the period at the end and inserting ; and ; and (6) by adding at the end the following: (15) testify annually before Congress. . 404. Report detailing NYCHA compliance with and HUD oversight of 2019 agreement (a) Congressional findings The Congress finds that— (1) the New York City Housing Authority (in this section referred to as the Authority ) is the largest housing authority in the United States, providing housing for over 520,000 residents in over 177,000 apartments in the City of New York (in this section referred to as the City ); (2) the Authority is a public housing agency that receives Federal financial assistance from the Department of Housing and Urban Development (in this section referred to as the Department ) to administer its public housing program; (3) the Authority is required to, among other things, provide decent, safe, and sanitary housing for the public housing residents of the City and comply with Federal law protecting children from the hazards of lead poisoning; (4) on June 11, 2018, the United States filed a complaint in the United States District Court for the Southern District of New York (in this section referred to as the Complaint ); which set forth the findings of the United States investigation, alleging, among other things, that the Authority had— (A) routinely failed to comply with lead-based paint safety regulations; (B) failed to provide decent, safe, and sanitary housing, including with respect to the provision of heat and elevators and the control and treatment of mold and pests; and (C) repeatedly misled the Department through false statements and deceptive practices; (5) in a Consent Decree executed June 11, 2018, the Authority made admissions regarding, among other things, deficiencies in physical conditions with respect to lead, mold, heating, elevators and pests and made untrue statements to the Department regarding the conditions of the Authority’s properties and practices with regard to Public Housing Assessment System inspections; (6) based on the Authority’s misconduct as detailed in the Complaint, on January 31, 2019, the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) declared that the Authority is in substantial default within the meaning of section 6(j)(3)(A) of the United States Housing Act of 1937 ( 42 U.S.C. 1437d(j)(3)(A) ); (7) the Department did not take possession of the Authority or appoint a receiver, but instead entered into a voluntary agreement between the Authority, the Department, and the City on January 31, 2019, under which the Authority agreed to remedy noted deficiencies subject to the oversight of a Monitor appointed by the City; (8) as of the date of the enactment of this Act, the Authority has still fully not complied with the agreement, including the remedying of deficiencies or compliance with its obligations under Federal law; (9) the Department and the United States Attorney’s Office for the Southern District of New York have sought to extend the term of a Monitor over the Authority for an additional five years beginning in 2024; (10) the residents of housing provided by the Authority should not be required to wait five additional years for the Authority to provide decent, safe, and sanitary housing conditions, as is the Authority’s most basic and necessary function under the law; and (11) the Congress believes that it must provide additional oversight over the Authority, the Department, the City, and the Monitor in order to compel the Authority to fix the appalling conditions and other issues that lead to a declaration of substantial default under section 6(j)(3)(A) of the United States Housing Act of 1937. (b) Investigation and report to Congress (1) Investigation The Inspector General of the Department of Housing and Urban Development shall conduct an investigation of the Authority, which shall include at a minimum— (A) determining the status of the New York City Housing Authority’s compliance with the agreement entered into between the Authority, the Department, and the City on January 31, 2019, including specific areas of deficiency and progress towards compliance; (B) conducting a review of actions taken by the Monitor over the Authority pursuant to such Agreement, including any gaps in oversight by the Monitor; (C) conducting a survey of the physical conditions of housing provided by the Authority for the City’s residents; (D) conducting an examination of any waste, fraud, abuse and violations of Federal law committed by employees or contractors of the Authority; and (E) identifying other priority issues and areas, as deemed necessary and appropriate by the Inspector General. (2) Report Not later than the expiration of the 180-day period beginning on the date of the enactment of this Act, the Inspector General shall provide to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report setting forth the findings of its investigation, a summary of actions the Department may take to compel the Authority to remedy deficiencies, and any other recommendations of the Inspector General. 405. FHA reporting requirements on safety and soundness (a) Monthly reporting on Mutual Mortgage Insurance Fund capital ratio Section 202(a) of the National Housing Act ( 12 U.S.C. 1708(a) ) is amended by adding at the end the following: (8) Other required reporting The Secretary shall— (A) submit to Congress monthly reports on the capital ratio required under section 205(f)(2); and (B) notify Congress as soon as practicable after the Fund falls below the capital ratio required under section 205(f)(2). . (b) First-Time homebuyers (1) Definitions In this section— (A) the terms consumer report has the meaning given the term in section 603 of the Fair Credit Reporting Act ( 15 U.S.C. 1681a ); and (B) the term Federally backed mortgage loan has the meaning given the term in section 4022 of the CARES Act ( 15 U.S.C. 9056 ). (2) Definition of first-time homebuyer For purposes of qualifying for a Federally backed mortgage loan for which a consumer report is furnished to a creditor by a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act ( 15 U.S.C. 1681a(p) ), a first-time homebuyer shall be defined as a borrower whose consumer report does not indicate that the borrower has or had a loan with a consumer purpose that is secured by a 1- to 4-unit residential real property. (c) GAO study on sustainable homeownership Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study and submit to Congress a report on— (1) the value for the Federal Housing Administration of defining what is sustainable homeownership in way that considers borrower default, refinancing to a non-insured mortgage product, paying off a mortgage loan and transitioning back to renting, and other factors that demonstrate whether insurance provided under title II of the National Housing Act ( 12 U.S.C. 1707 et seq. ) has successfully served a borrower, including for first-time homebuyers as defined in subsection (b)(2); and (2) the feasibility of the Federal Housing Administration developing a scorecard using the metrics described in paragraph (1) to measure borrower performance and reporting the scorecard data to Congress. 406. Combatting squatting (a) Congressional findings The Congress finds that— (1) unlawfully entering a property without the permission of the property owner and residing in that property for consecutive days without the permission of the property owner and without the payment of rent or a rental contract agreed to by the property owner can be defined as squatting and should not confer any special status as a tenant or lawful occupant of the property; (2) local law enforcement should take actions to expeditiously remove from a property any persons or persons engaging in squatting and should prosecute such actions as prescribed by local law; (3) Federal Government benefits, including loans, loan guarantees, subsidies, and tax credits, should not be used to reinforce, condone, or otherwise incentivize squatting; and (4) real estate collateral securing a government or government-sponsored enterprise loan, or subject to a loan guarantee, mortgage insurance or other Federal mortgage support program must be protected from persons engaging in squatting as it creates undue risks for the value of such property. (b) Prohibition on CDBG funding Section 104 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5304 ) is amended by adding at the end the following: (n) Withholding of funds for jurisdictions that permit squatting (1) Prohibition The Secretary shall, by regulation— (A) prohibit the allocation and provision of funds under this title for any unit of general local government that permits squatting or confers special status for rights of tenancy for a person or persons engaging in the practice of squatting; and (B) provide for— (i) units of general local government to take corrective actions to remedy the applicability of the prohibition under subparagraph (A) to such unit of general local government; and (ii) certification by the Secretary upon a determination that such actions taken by a unit of general local government are sufficient for the unit of general local government to receive funds under this title. (2) Public notice The Secretary shall make publicly available for each fiscal year a list of all units of general local government that are prohibited by paragraph (1) from receiving funds under this title and the justification for inclusion in the list of each such unit of general local government. (3) Squatting For purposes of this subsection, the term squatting means the practice of entering a property without the permission of the property owner and residing in that property for 14 or more consecutive days without the permission of the property owner and without the payment of rent or a rental contract agreed to by the property owner. . (c) Prohibition on Federal mortgage support (1) Prohibition No Federal support may be provided for any loan that is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) and designed principally for the occupancy of from 1- to 4-families if the property securing such loan is located in a unit of general local government that is, at such time, prohibited from receiving funds under title I of the Housing and Community Development Act of 1974 by section 104(n)(1)(A) of such Act. (2) Regulations The heads of the covered agencies shall jointly develop, by regulations issued not later than 90 days after the date of the enactment of this Act, guidelines for such covered agencies to carry out this subsection. (3) Definitions For purposes of this subsection, the following definitions shall apply: (A) Covered agency The term covered agency means— (i) the Department of Housing and Urban Development; (ii) the Federal Housing Finance Agency; (iii) the Department of Veterans Affairs; and (iv) the Department of Agriculture. (B) Federal support The term Federal support means, with respect to a loan— (i) insurance of the loan by the Federal Housing Administration under title II of the National Housing Act ( 12 U.S.C. 1707 et seq. ); (ii) insurance of the loan under section 255 of the National Housing Act ( 12 U.S.C. 1715z–20 ); (iii) guarantee of the loan under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b); (iv) guarantee or insurance of the loan by the Department of Veterans Affairs; (v) guarantee or insurance of the loan by the Department of Agriculture; (vi) making of the loan by the Department of Agriculture; or (vii) purchase or securitization of the loan by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (C) Squatting The term squatting means the practice of entering a property without the permission of the property owner and residing in that property for 14 or more consecutive days without the permission of the property owner and without the payment of rent or a rental contract agreed to by the property owner. 407. Reallocation of voucher funding Section 8(o) of the United States Housing Act of 1937 is amended by adding at the end the following: (24) Reallocation of amounts The Secretary shall, at the end of each fiscal year— (A) recapture from each public housing agency any amounts provided to such public housing agency for tenant-based assistance under paragraph (1)(A) that such public housing agency did not obligate during such fiscal year; and (B) provide amounts recaptured under subparagrah (A) to public housing agencies that used all of the amounts provided to them for tenant-based assistance under paragraph (1)(A). . V Regulatory flexibility 501. Authorization of Moving to Work Program (a) Program reforms Section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 ( 42 U.S.C. 1437f note) is amended— (1) in the section heading, by striking demonstration and inserting program ; (2) by striking subsection (a) and inserting the following: (a) Purposes The purposes of the program under this section are as follows: (1) Economic independence To develop measures to promote economic independence for families with children whose head of household is working, seeking work, or preparing for work, for able-bodied individuals, and for persons with disabilities who are able to work on a limited basis, to obtain employment and become economically independent, by participating in job training, educational programs, or other supportive services and programs that assist in meeting such goal. (2) Flexibility and cost-effectiveness To give public housing agencies and the Secretary of Housing and Urban Development the flexibility to design and implement various approaches for providing and administering housing assistance that reduce cost and achieve greater cost effectiveness in Federal expenditures. (3) Housing choice To increase housing choices for low-income families. ; (3) in subsection (b)— (A) by striking (b) Program authority .—The Secretary and inserting the following: (b) Program authority (1) In general The Secretary ; (B) in the first sentence, by striking conduct a demonstration program and all that follows through Indian housing program and and inserting carry out a program under this section under which public housing agencies administering the public housing program or ; (C) by inserting after the first sentence the following: There shall be no limitation on the number of public housing agencies that may participate in the program under this section. ; (D) by striking The Secretary shall and all that follows through demonstration. and inserting the following: (2) Identification of replicable models The Secretary shall provide training and technical assistance under the program and conduct detailed evaluations of various agencies to identify replicable program models promoting the purposes of the program. ; (E) by striking Under the demonstration and inserting the following: (3) Combination of assistance Under the program under this section ; and (F) by striking operating assistance provided under section 9 of the United States Housing Act of 1937, modernization assistance provided under section 14 and inserting amounts provided to the agency from the Operating Fund under section 9(e) of the United States Housing Act of 1937, amounts provided to the agency from the Capital Fund under section 9(d) ; (4) in subsection (c)— (A) in the matter preceding paragraph (1), by striking demonstration and inserting program under this section ; (B) in paragraph (1), by striking 9, and 14 and inserting 9(d), and 9(e) ; (C) in paragraph (3)— (i) in subparagraph (A), by striking demonstration ; (ii) in subparagraph (B)— (I) by striking self-sufficiency and inserting economic independence ; and (II) by striking purpose of this demonstration and inserting purpose of the program under subsection (a)(1) ; (iii) in subparagraph (D), by striking demonstration and inserting program under this section; ; (iv) in subparagraph (E), by striking demonstration program and inserting program under this section ; (v) by redesignating subparagraphs (A), (B), (C), (D), and (E) as subparagraphs (B), (C), (D), (G), and (H), respectively; (vi) by inserting before subparagraph (B), as so redesignated, the following: (A) actions to be taken under the proposed program to achieve the purposes of the program under paragraphs (1), (2), and (3) of subsection (a); ; and (vii) by inserting after subparagraph (D), as so redesignated, the following: (E) hardship exceptions consistent with the purposes under subsection (a) under which tenants may be temporarily exempted from compliance with the program operated by the agency in the event of extenuating circumstances preventing such compliance and a process that provides tenants with recourse to a speedy determination regarding such an exception and makes available the contents and results of such a determination available to the public and the board of directors or other governing body on request of the tenant concerned or the director or other head official of the agency; (F) providing assisted families and participants in the program operated by the agency with an informal administrative hearing or grievance process, prior to any eviction or termination of assistance, which process shall make the content and determination of the hearing available to the public and the board of directors or other governing body on request of the tenant concerned or the director or other head official of the agency; ; and (D) in paragraph (4), by striking demonstration and inserting proposed program ; (5) in subsection (d)— (A) by striking (d) Selection .—In selecting among applications, the Secretary shall take into account the and inserting the following: (d) Applications for participation (1) Submission; standards for participation The Secretary shall provide for public housing agencies to submit applications for participation in the program under this section and shall establish, and make public, standards and requirements for participation that further the purposes of this program set forth in subsection (a), which shall— (A) provide that all public housing agencies not designated as troubled pursuant to part 902 or subpart B of part 985, Code of Federal Regulations, at any time during the most recent 2 fiscal years are invited to submit applications for consideration; (B) provide that participation of a public housing agency, upon approval, shall be for a period not shorter than 10 years; (C) include a common set of budget metrics for use under the program that allow for comparison of the performance of different public housing agencies under the program; (D) require that each public housing agency include in its application— (i) a list of innovative proposals to be carried out under the program that are designed to reduce the cost of, and increase the cost-efficiency of, housing provided in connection with the program and metrics to assess the progress of the agency toward such goals; and (ii) a list of innovative manners in which the public housing agency will use the authorities under the program to assist families, goals regarding such activities to accomplish on an annual basis, and metrics to assess the progress of the agency toward such goals; and (E) include a plan for using, to the greatest extent feasible, electronic data-matching for income verification services. (2) Determination and notification (A) Review and determination Upon receipt of an application for participation in the program under this section, the Secretary shall provide for review such application by a selection panel comprised of Federal officials and employees and established by the Secretary for such purpose. Based on such review, such selection panel shall make a determination of whether to approve such agency for participation in the program under this section, based on the criteria under paragraph (4). (B) Notification Upon making a determination pursuant to subparagraph (A), the selection panel shall notify the public housing agency, the Secretary, and the governments for any counties and municipalities in which the jurisdiction of the public housing agency is located of such determination. In the case of disapproval of an application, such notice shall include a statement specifying the reasons for such disapproval. (3) Transition (A) Numerical limitation (i) In general The Secretary shall review and process such applications as to enable the transition of not less than 25 public housing agencies per year to the program under this section (subject to approvable applications), until such time as there are not 25 public housing agencies whose applications merit approval. (ii) Reserved spots for small and rural PHAs Of the applications of public housing agencies approved in each year pursuant to clause (i), not less than 10 shall be applications of public housing agencies that administer, in the aggregate, fewer than 6,000 vouchers for rental assistance under section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ) and public housing dwelling units, except that if for any year the Secretary receives fewer than 10 applications by public housing agencies described in this clause that merit approval, the requirement under this clause shall apply for such year only to the extent of the number of such approvable applications received. (iii) Treatment of new MTW agencies Any agency that is newly transitioned under this subparagraph to participation in the program as in effect pursuant to the amendments made by this Act shall count toward fulfillment of the numerical limitation in clause (i), notwithstanding the authority under section 239 of the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2016 (division L of Public Law 114–113 ) or any other provision of law other than this section authorizing participation of new agencies. (B) Contract revisions The Secretary shall, from time to time and in consultation with public housing agencies, amend contracts for participation by agencies in the program under this section as may be necessary, based on experiences of agencies that have participated in the program, to correct mistakes and better achieve the goals of this program set forth in subsection (a). (C) Renewal of certification (i) In general The Secretary shall provide that upon expiration of a contract for participation by a public housing agency in the program under this section, to continue participating in the program the agency shall be required to recertify with the Secretary for such renewed participation. The standards and requirements applicable to applications for initial participation in the program shall also apply to applications for renewed participation in the program. (ii) Treatment of numerical limitation An agency approved for continued participation in the program pursuant to recertification under this subparagraph shall not count toward fulfillment of the numerical limitation in subparagraph (A)(i). (4) Criteria The Secretary shall establish criteria for approval of applications of public housing agencies for participation in the program under this section, which shall provide for approval of applications that are reasonably designed to carry out the purposes of the program under subsection (a). Such criteria shall take into consideration the capacity and ; (B) by striking each and inserting the ; (C) by striking a program under the demonstration and inserting the proposed program in the application ; and (D) by striking an agency and inserting the agency ; (6) in subsection (e)— (A) in paragraph (1), by striking this demonstration and inserting the program under this section ; and (B) in paragraph (2), by striking demonstration and inserting program under this section ; (7) in subsection (f), by striking section 9, or pursuant to section 14 by a public housing agency participating in the demonstration under this part and inserting of the United States Housing Act of 1937, or provided from the Operating Fund under section 9(e) or from the Capital Fund under section 9(d) of such Act, by a public housing agency participating in the program under this section ; (8) in subsection (g)— (A) in paragraph (1), by inserting , including performance in achieving each of the purposes of the program specified in subsection (a) ; (B) in paragraph (2)— (i) in the first sentence— (I) by inserting , and including such content, as shall be before specified by the Secretary ; and (II) by inserting , but not less often than annually before the period at the end; and (ii) by striking subparagraph (C) and inserting the following: (C) describe and analyze the effects of the program of the agency and the assisted activities under such program in addressing and achieving the objectives of the program under this section and each of the purposes specified in subsection (a), including the effects of the program on— (i) the number of new families the agency has been able to assist from the waiting lists for housing assistance that is administered by the agency, including vouchers for rental assistance under section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ) and dwelling units in public housing and in housing assisted with project-based section 8 assistance, as a result of the flexibility of funds and achievement of economic independence; (ii) the cost and annual change, per family participating in the program, of providing housing assistance referred to in clause (i) that is administered by the agency; (iii) any cost savings and additional housing resulting from the program; (iv) the household incomes, and changes in such incomes, of members of families participating in the program who are not exempt from work requirements; and (v) such other factors as the Secretary considers appropriate. ; (C) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6); and (D) by inserting after paragraph (2) the following new paragraphs: (3) Annual budget plan (A) Requirement Each agency shall submit annually to the Secretary, together with the report under paragraph (2), a budget plan for the program of the agency for the upcoming year and shall make such budget plan publicly available. (B) Form and metrics Each annual budget plan shall be set forth in a standard form, prescribed by the Secretary and shall utilize a common budget metric that allows for comparison of the budget plans of all public housing agencies participating in the program. (C) Content Each annual budget plan shall include such content as the Secretary shall specify, which shall include— (i) a description and explanation of all new rules and policy changes adopted by the agency in accordance with this section and the program under this section and, with respect to such new rules and policy changes— (I) a description of the effect such rules and changes will have on the operation of the agency as compared to the preceding year and as compared to the operations of the agency other than under the program under this section; (II) a description of the extent to which such rules and changes helped to achieve the annual goals identified in the public housing agency’s application pursuant to subsection (d)(1)(E) and, in the case of any such goals not achieved, a description of the extent to which such goals were not achieved and the reasons for such failure; and (III) whether the adoption of such new rules and policy changes required an adjustment in the annual goals identified in the public housing agency’s application pursuant to subsection (d)(1); (ii) a plan for all capital assets and anticipated construction and rehabilitation activities of the public housing agency in the upcoming year and a description of whether and how such activities are authorized and assisted under the program under this section; and (iii) assurances satisfactory to the Secretary that such plan will conform with all applicable provisions of the Civil Rights Act of 1964 ( 42 U.S.C. 2000d et seq. ), the Fair Housing Act ( 42 U.S.C. 3601 et seq. ), the Rehabilitation Act of 1973 ( 29 U.S.C. 701 et seq. ), and the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12101 et seq. ). (4) Public and resident participation (A) Notification of residents Each public housing agency shall annually hold a meeting to notify all assisted families participating in the program of the public housing agency of the contents of the report under paragraph (2) for such year and budget plan under paragraph (3) for such year and impacts on such assisted families. Any public housing agency that assists, in the aggregate, more than 50,000 families or assists families in multiple counties shall hold as many meetings as necessary to provide each assisted family a good-faith opportunity to attend such a meeting. (B) Public comment Each annual report under paragraph (2) and annual plan under paragraph (3) shall— (i) be made available for inspection and public comment 30 days before the meeting required by subparagraph (A) regarding such plan or report; and (ii) be approved in a public meeting of the board of directors or other governing body of the public housing agency before submission to the Secretary. (C) Public availability Each annual report under paragraph (2) and annual plan under paragraph (3) shall, upon submission to the Secretary, be made publicly available and shall include all comments provided pursuant to subparagraph (B). ; (9) in subsection (h)— (A) in paragraph (1), by striking demonstration and inserting program under this section ; and (B) by striking paragraph (2) and inserting the following: (2) Review The Secretary shall annually review the activities of each public housing agency participating in the program under this section and, based on such review and the information submitted by the agency pursuant to subsection (g), determine— (A) the impact and effectiveness of the public housing agency’s program and activities in achieving each of the purposes of the program specified in subsection (a), including an assessment of such impact and effectiveness using the common set of budget metrics established pursuant to subsection (d)(1)(D); (B) the progress of the public housing agency toward meeting the goals identified in the public housing agency’s application pursuant to subsection (d)(1)(E), using the metrics identified in the public housing agency’s application pursuant to such subsection; and (C) the extent of compliance by the public housing agency with the requirements of the program under this section and, in determining such extent of compliance, shall take into consideration the unique characteristics of the public housing agency. (3) Verification of accuracy In assessing information submitted by public housing agencies pursuant to subsection (g) and in reviewing such information and making determinations pursuant to paragraph (2) of this subsection, the Secretary shall carry out control activities and procedures designed to verify the accuracy of such information, which shall include auditing a representative sample of such information using standard statistical methods. (4) Continued participation The Secretary shall not terminate the participation of any public housing agency in the program under this section unless the Secretary finds that the agency— (A) is in material default of the conditions and obligations under the agreement entered into between the agency and the Secretary providing for such participation; (B) as demonstrated in its reports under subsection (g)(2) and its annual budget plans under subsection (g)(3), has persistently failed to meet the goals identified in its application, and the reasons or circumstances specified in the public housing agency’s reports and plans for such failure are not sufficient to justify the continued failure; (C) has misused or misappropriated funds; (D) has failed to make a good faith effort to carry out the purposes of the program specified in subsection (a); or (E) has failed to cure a material deficiency in performance after notice and an opportunity to correct the deficiency. (5) Corrective action program The Secretary shall carry out a program— (A) to identify public housing agencies participating in the program under this section that are at risk of termination of such participation pursuant to paragraph (6); (B) to consult with such public housing agencies regarding actions that may be taken to avoid such termination; (C) to establish goals and timelines for such corrective actions; and (D) to provide appropriate technical assistance designed to facilitate such actions and avoid such termination. (6) Termination of participation Any public housing agency whose participation in the program under this section is terminated shall be subject to the provisions of the United States Housing Act of 1937 ( 42 U.S.C. 1437 et seq. ) and all other provisions of law applicable to public housing agencies not participating in the program, except that the Secretary shall provide a transition period, that begins upon such termination and is not shorter than 18 months, for such public housing agencies to come into compliance with such laws. (7) Reports to Congress Not later than the expiration of the 5-year period beginning on the date of the enactment of this Act, and not later than the expiration of each successive 5-year period thereafter, the Secretary shall submit a report to the Congress regarding the program under this section and the results of the reviews conducted under paragraph (2), which shall— (A) evaluate the programs carried out by public housing agencies participating in the program, including with respect to each of the purposes specified in subsection (a); and (B) include findings and recommendations for appropriate legislative changes to the program. (8) GAO reviews and reports Not later than 180 days after the date of enactment of this Act, and not less frequently than every 8 years thereafter, the Comptroller General of the United States shall— (A) conduct and complete a review of the program under this section, which shall include examination and analysis of the implementation of the program and identification of any shortcomings and any means for improving the program; and (B) submit to the Congress a report regarding the review, which shall set forth a detailed description of such implementation, any shortcomings of the program identified, and recommendations for improving the program. ; (10) in subsection (i)— (A) in the matter preceding paragraph (1), by striking section 14 of the United States Housing Act of 1937 for fiscal years 1996, 1997, and 1998 and inserting the Capital Fund under section 9(d) of the United States Housing Act of 1937 in each fiscal year ; and (B) in paragraph (1)(B), by striking up to 10 ; and (11) by striking subsection (j). (b) Treatment of participating agencies (1) Continuation of participation This section and the amendments made by this section shall not affect the status of any public housing agency that, as of the date of the enactment of this Act, is participating in the Moving to Work Program under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 ( 42 U.S.C. 1437f note), as such a participating agency. (2) Election Any public housing agency referred to in paragraph (1) may elect— (A) to continue participation in the Program under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 ( 42 U.S.C. 1437f note) under the terms of the agreement entered into between the agency and the Secretary providing for such participation until the date of the expiration of such agreement; or (B) at any time before date of the expiration of such agreement, to transition to participation under the program under such section 204, as amended by this Act. (3) Conversion to reformed program (A) In general Except as provided in subparagraph (B) of this paragraph, any public housing agency that elects pursuant to paragraph (2)(A) of this subsection to continue participation in the Program under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 ( 42 U.S.C. 1437f note) shall, upon the expiration of the agreement referred to in such paragraph, be considered to have been approved for participation in the Program under such section 204, as amended by this Act, and the Secretary of Housing and Urban Development shall provide for the transition of the agency to participation under the Program under such section as so amended. (B) Inapplicability Subparagraph (A) shall not apply to any public housing agency that is determined by the Secretary to be in material default, upon the expiration of the agreement referred to in paragraph (2)(A), of the conditions and obligations under such agreement. (4) Inapplicability of numerical limitation Any public housing agency transitioned pursuant to paragraph (2)(B) or (3)(A) of this subsection to participation under the program under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 ( 42 U.S.C. 1437f note), as amended by this section, shall not count toward fulfillment of the numerical limitation under section 204(d)(3)(A) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 ( 42 U.S.C. 1437f note), as added by the amendment made by this section. 502. Rescission of Public and Indian Housing Notice 2021–18 The Public and Indian Housing Notice 2021–18 of the Department of Housing and Urban Development is hereby rescinded. VI Improving financial literacy regarding housing 601. Reforms to housing counseling and financial literacy programs (a) In general Section 106(a)(4) of the Housing and Urban Development Act of 1968 ( 12 U.S.C. 1701x(a)(4) ) is amended— (1) in subparagraph (B)— (A) by striking The Secretary and inserting the following: (i) In general The Secretary ; and (B) by adding at the end the following: (ii) Requirement The Secretary shall require each organization receiving assistance under this paragraph to employ individuals providing housing counseling who— (I) are certified to understand sustainable homeownership; and (II) pass required examinations that determine the ability of the individual to counsel borrowers on responsible homeownership. (iii) Suspension of certification If an individual employed by an organization that receives assistance under this paragraph provides counseling services to borrowers who, after receiving those services, have default rates that exceed the average default rates for borrowers counseled by individuals in the area served by the organization, the Secretary— (I) shall suspend the certification from the individual; and (II) may deny future assistance under this paragraph to that organization. (iv) Prohibition on lobbying activities An organization that applies for or receives assistance under this paragraph shall not engage in political activities, advocacy, or lobbying, whether directly or through other parties. ; and (2) by adding at the end the following: (F) Set asides The Secretary shall set aside 40 percent of amounts authorized to carry out this paragraph for organizations that provide rental counseling or pre-foreclosure counseling. (G) Geographic diversity In making grants under this paragraph, the Secretary shall ensure that the recipients are geographically diverse and include organizations that serve urban and rural areas. . (b) Requiring prepurchase and foreclosure mitigation counseling (1) Covered mortgage loan defined In this subsection, the term covered mortgage loan means any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4-families that is— (A) insured by the Federal Housing Administration under title II of the National Housing Act ( 12 U.S.C. 1707 et seq. ); (B) insured under section 255 of the National Housing Act ( 12 U.S.C. 1715z–20 ); (C) guaranteed under section 184 or 184A of the Housing and Community Development 3 Act of 1992 (12 U.S.C. 1715z–13a, 1715z–4 13b); (D) guaranteed or insured by the Department of Agriculture; or (E) made by the Department of Agriculture. (2) Requirement for purchasers Before purchasing residential real property that secures a covered mortgage loan, the purchaser shall participate in prepurchase housing counseling. (3) Requirement for borrowers A borrower with respect to a covered mortgage loan who is 30 days or more delinquent on payments for the covered mortgage loan shall participate in foreclosure mitigation counseling.