Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Restore our Neighborhoods Act of
2012''.

SEC. 2. CREDIT TO HOLDERS OF QUALIFIED URBAN DEMOLITION BONDS.

(a) In General.--Subpart I of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:

''SEC. 54G. QUALIFIED URBAN DEMOLITION BONDS.

''(a) Qualified Urban Demolition Bond.--For purposes of this
subchapter, the term 'qualified urban demolition bond' means any bond
issued as part of an issue if--
''(1) 100 percent of the available project proceeds of such
issue are to be used for expenditures incurred after the date
of the enactment of this section for 1 or more qualified
projects pursuant to an allocation of such proceeds to such
project or projects by a qualified issuer,
''(2) the bond is issued by a qualified issuer and is in
registered form (within the meaning of section 149(a)),
''(3) the qualified issuer designates such bond for
purposes of this section,
''(4) the term of each bond which is part of such issue
does not exceed 30 years,
''(5) such bond is issued during the 5-year period
beginning on the date of the enactment of this section, and
''(6) the issue meets the requirements of subsection (e).
''(b) Limitation on Amount of Bonds Designated.--
''(1) In general.--The maximum aggregate face amount of
bonds which may be designated under subsection (a) by a State
shall not exceed the qualified urban demolition bond limitation
amount allocated to such State under paragraph (3).
''(2) National qualified urban demolition bond limitation
amount.--There is a national qualified urban demolition bond
limitation amount of $4,000,000,000.
''(3) Allocation to states.--
''(A) In general.--The national qualified urban
demolition bond limitation shall be allocated by the
Secretary among the States on the following basis and
in such manner so as to ensure that all of such
limitation amount is allocated before the date which is
3 months after the date of the enactment of this
section:
''(i) $2,000,000,000 to be allocated among
the qualified States in accordance with
subparagraph (B), and
''(ii) $2,000,000,000 to be equally
allocated among all States.
''(B) Formula for allocation among qualified
states.--
''(i) In general.--The amount allocated to
a State under subparagraph (A)(i) shall be an
amount equal to the amount specified in
subparagraph (A)(i) multiplied by the ratio
that the nonseasonal vacant properties in the
State bears to the total nonseasonal vacant
properties of all qualified States.
''(ii) Nonseasonal vacant properties.--For
purposes of clause (i), nonseasonal vacant
properties shall be determined by the Secretary
on the basis of 2010 decennial census.
''(4) Allocation of limitation amount by states.--The
limitation amount allocated to a State under paragraph (3)
shall be allocated by the State to qualified issuers within
such State.
''(5) Reallocation of unused issuance limitation.--If at
the end of the 2-year period beginning on the date of the
enactment of this section, the national qualified urban
demolition bond limitation amount under paragraph (2) exceeds
the total amount of qualified urban demolition bonds issued
during such period, such excess shall be reallocated among the
qualified States in such manner as the Secretary determines
appropriate so as to ensure to the extent possible that all of
such limitation amount is issued in the form of qualified urban
demolition bonds before the end of the 5-year period beginning
on the date of the enactment of this section.
''(c) Qualified Project.--For purposes of this section, the term
'qualified project' means the direct and indirect demolition costs
properly attributable to any project proposed and approved by a
qualified issuer, but does not include costs of operation or
maintenance with respect to such project.
''(d) Applicable Credit Rate.--In lieu of section 54A(b)(3), for
purposes of section 54A(b)(2), the applicable credit rate with respect
to an issue under this section is the rate equal to an average market
yield (as of the day before the date of sale of the issue) on
outstanding long-term corporate debt obligations (determined in such
manner as the Secretary prescribes).
''(e) Special Rules Relating to Expenditures.--In lieu of
subparagraphs (A) and (B) of section 54A(d)--
''(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of issuance,
the qualified issuer reasonably expects--
''(A) at least 100 percent of the available project
proceeds of such issue are to be spent for 1 or more
qualified projects within the 5-year expenditure period
beginning on such date, and
''(B) to incur a binding commitment with a third
party to spend at least 10 percent of the proceeds of
such issue with respect to such projects within the 12-
month period beginning on such date.
''(2) Rules regarding continuing compliance after 5-year
determination.--To the extent that less than 100 percent of the
available project proceeds of such issue are expended by the
close of the 5-year expenditure period beginning on the date of
issuance, the qualified issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such period.
For purposes of this paragraph, the amount of the nonqualified
bonds required to be redeemed shall be determined in the same
manner as under section 142.
''(f) Recapture of Portion of Credit Where Cessation of
Compliance.--If any bond which when issued purported to be a qualified
urban demolition bond ceases to be such a bond, the qualified issuer
shall pay to the United States (at the time required by the Secretary)
an amount equal to the sum of--
''(1) the aggregate of the credits allowable under section
54A with respect to such bond (determined without regard to
section 54A(c)) for taxable years ending during the calendar
year in which such cessation occurs and each succeeding
calendar year ending with the calendar year in which such bond
is redeemed by the land bank, and
''(2) interest at the underpayment rate under section 6621
on the amount determined under paragraph (1) for each calendar
year for the period beginning on the first day of such calendar
year.
''(g) Other Definitions and Special Rules.--For purposes of this
section--
''(1) Qualified issuer.--The term 'qualified issuer'
means--
''(A) a State-authorized land bank, or
''(B) with respect a State that does not have one
or more State-authorized land banks, the State or any
political subdivision or instrumentality thereof.
''(2) State-authorized land bank.--The term 'State-
authorized land bank' means a special unit of government or
public purpose corporation--
''(A) expressly charged under State law with the
reclamation, repurposing and redevelopment of vacant
and abandoned land,
''(B) enabled under State law to conduct large
scale demolition projects,
''(C) organized in a State which has enacted
legislation allowing for the expedited tax foreclosure
of vacant, abandoned, and tax delinquent property, and
''(D) which may include a joint venture among 2 or
more State-authorized land banks or among other
entities with whom such special unit of government or
public purpose corporation is authorized to enter into
a joint venture.
''(3) Qualified state.--The term 'qualified State' means a
State which meets 3 of the following 4 requirements:
''(A) The State ranks in the top 20 among all
States in percentage change in nonseasonal vacancies in
the time period between the 2000 decennial census and
the 2010 decennial census.
''(B) The State ranks in the top 25 among all
States in unemployment rate (seasonally adjusted) for
the most recent 12-month period available.
''(C) The State ranks in the top 25 among all
States in percentage of loans in foreclosure for the
most recent quarter available.
''(D) The State ranks in the top 20 among all
States in the lowest percentage change in population
growth in the time period between the 2000 decennial
census and the 2010 decennial census.
''(4) Credits may be transferred.--Notwithstanding in any
law or rule of law shall be construed to limit the
transferability of the credit or bond allowed by this section
through sale and repurchase agreements.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) of such Code is amended
by striking ''or'' at the end of subparagraph (D), by inserting
''or'' at the end of subparagraph (E), and by inserting after
subparagraph (E) the following new subparagraph:
''(E) a qualified urban demolition bond,''.
(2) Subparagraph (C) of section 54A(d)(2) is amended by
striking ''and'' at the end of clause (iv), by striking the
period at the end of clause (v) and inserting '', and'', and by
adding at the end the following new clause:
''(vi) in the case of a qualified urban demolition bond, a purpose
specified in section 54G(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 of such Code is amended by adding at
the end the following new item:

''Sec. 54G. Qualified urban demolition bonds.''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.

SEC. 3. USE OF NEIGHBORHOOD STABILIZATION PROGRAM FUNDS FOR DEMOLITION
ACTIVITIES.

(a) NSP2 and NSP3 Funds.--
(1) Exception to limitation on use for demolition.--
Notwithstanding the 13th proviso of the second undesignated
paragraph under the heading ''Community Planning and
Development--Community Development Fund'' in title XII of
division A of the American Recovery and Reinvestment Act of
2009 (Public Law 111-5; 123 Stat. 218) and section 1497(a) of
the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Public Law 111-203; 124 Stat. 2209), a qualified State or unit
of general local government in a qualified State may use all or
any portion of any amounts made available from a grant under
such second undesignated paragraph or under such section 1497
for the purpose set forth in section 2301(c)(4)(D) of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (42 U.S.C.
5301 note), at the sole discretion of the State or unit of
general local government.
(2) Definition.--For purposes of this subsection, the term
''qualified State'' has the meaning given such term in section
54G(g) of the Internal Revenue Code of 1986.
(b) Future Grants.--Subsection (c) of section 2301 of the Housing
and Economic Recovery Act of 2008 (42 U.S.C. 5301 note) is amended by
adding at the end the following new paragraph:
''(5) Prohibition of limitation on use for demolition.--A
qualified State or unit of general local government in a
qualified State may use all or any portion of any amounts made
available from a grant under this section for the purpose set
forth in paragraph (4)(D) of this subsection, at the sole
discretion of the State or unit of general local government.
For purposes of this paragraph, the term 'qualified State' has
the meaning given such term in section 54G(g) of the Internal
Revenue Code of 1986.''.
Student:
Restore our Neighborhoods Act of 2012 - Amends the Internal Revenue Code to establish a new category of tax credit bonds to be known as qualified urban demolition bonds.Allows the issuance of $4 billion of such bonds for the purpose of demolishing vacant, abandoned, and tax delinquent properties in urban areas.Provides for the allocation of$2 billion to all statesto fund such demolition projects, and an additional $2 billion forcertain otherstates that have greater numbers of vacant or foreclosed properties and higher unemployment rates (qualified states).