[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2295 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 2295
To provide additional funding for the public housing Capital Fund for
large public housing agencies, for mortgage foreclosure mitigation
assistance, and for incremental rental assistance vouchers, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 12, 2019
Ms. Clarke of New York (for herself, Mr. Espaillat, Ms. Meng, and Ms.
Ocasio-Cortez) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To provide additional funding for the public housing Capital Fund for
large public housing agencies, for mortgage foreclosure mitigation
assistance, and for incremental rental assistance vouchers, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hardest Hit Housing Act of 2019''.
SEC. 2. CAPITAL FUND AMOUNTS FOR LARGE PUBLIC HOUSING AGENCIES.
(a) Authorization of Appropriations.--In addition to any amounts
authorized to be appropriated for formula grants to public housing
agencies from the Capital Fund pursuant to section 9(d)(2) of the
United States Housing Act of 1937 (42 U.S.C. 1437g(d)(2)), there is
authorized to be appropriated $4,000,000,000 for each of fiscal years
2019 through 2023 for the Public Housing Capital Fund Program under
section 9(d) of the United States Housing Act of 1937 (42 U.S.C.
1437g(b)).
(b) Eligible Public Housing Agencies.--Any amounts appropriated
pursuant to this section shall be used by the Secretary of Housing and
Urban Development only for grants to public housing agencies that own
or administer more than 10,000 public housing dwelling units.
(c) Eligible Uses.--Funds from grants made with amounts
appropriated pursuant to this section may be used only for eligible
capital activities under section 9(d)(1) of the United States Housing
Act of 1937 (42 U.S.C. 1437g(d)(1)). Section 9(g)(3) of such Act shall
not apply to any such grant funds.
SEC. 3. ASSISTANCE TO NEIGHBORWORKS FOR MORTGAGE FORECLOSURE MITIGATION
ACTIVITIES.
There is authorized to be appropriated $5,000,000, for each of
fiscal years 2019 through 2023 for assistance to the Neighborhood
Reinvestment Corporation for mortgage foreclosure mitigation
activities, under the following terms and conditions:
(1) Mortgage foreclosure mitigation counseling.--
(A) The Neighborhood Reinvestment Corporation (in
this section referred to as the ``NRC'') may make
grants under this paragraph to counseling
intermediaries approved by the Department of Housing
and Urban Development (in this section referred to as
``HUD'') (with match to be determined by NRC based on
affordability and the economic conditions of an area; a
match also may be waived by NRC based on the
aforementioned conditions) to provide mortgage
foreclosure mitigation assistance to the 15 States with
highest rates of home mortgage defaults and
foreclosures, as of January 1, 2019, to help eliminate
the default and foreclosure of mortgages of owner-
occupied single-family homes that are at risk of such
foreclosure and located in metropolitan statistical
areas having the greatest such need. Other than areas
with high rates of defaults and foreclosures, grants
may also be provided to approved counseling
intermediaries based on a geographic analysis of the
Nation by NRC which determines where there is a
prevalence of mortgages that are risky and likely to
fail, including any trends for mortgages that are
likely to default and face foreclosure. A State Housing
Finance Agency may also be eligible where the State
Housing Finance Agency meets all the requirements under
this paragraph. A HUD-approved counseling intermediary
shall meet certain mortgage foreclosure mitigation
assistance counseling requirements, as determined by
NRC, and shall be approved by HUD or NRC as meeting
these requirements.
(B) Mortgage foreclosure mitigation assistance
shall only be made available to homeowners of owner-
occupied homes with mortgages in default or in danger
of default. These mortgages shall likely be subject to
a foreclosure action and homeowners will be provided
such assistance that shall consist of activities that
are likely to prevent foreclosures and result in the
long-term affordability of the mortgage retained
pursuant to such activity or another positive outcome
for the homeowner. No funds made available pursuant to
this paragraph may be provided directly to lenders or
homeowners to discharge outstanding mortgage balances
or for any other direct debt reduction payments.
(C) The use of mortgage foreclosure mitigation
assistance by approved counseling intermediaries and
State Housing Finance Agencies shall involve a
reasonable analysis of the borrower's financial
situation, an evaluation of the current value of the
property that is subject to the mortgage, counseling
regarding the assumption of the mortgage by another
non-Federal party, counseling regarding the possible
purchase of the mortgage by a non-Federal third party,
counseling and advice of all likely restructuring and
refinancing strategies or the approval of a work-out
strategy by all interested parties.
(D) NRC may provide up to 15 percent of the total
funds made available pursuant to this paragraph to its
own charter members with expertise in foreclosure
prevention counseling, subject to a certification by
NRC that the procedures for selection do not consist of
any procedures or activities that could be construed as
a conflict of interest or have the appearance of
impropriety.
(E) HUD-approved counseling entities and State
Housing Finance Agencies receiving funds made available
pursuant to this paragraph shall have demonstrated
experience in successfully working with financial
institutions as well as borrowers facing default,
delinquency, and foreclosure as well as documented
counseling capacity, outreach capacity, past successful
performance and positive outcomes with documented
counseling plans (including post-mortgage foreclosure
mitigation counseling), loan workout agreements, and
loan modification agreements. NRC may use other
criteria to demonstrate capacity in underserved areas.
(F) Of the total amount made available pursuant to
this paragraph, up to $250,000 may be made available to
build the mortgage foreclosure and default mitigation
counseling capacity of counseling intermediaries
through NRC training courses with HUD-approved
counseling intermediaries and their partners, except
that private financial institutions that participate in
NRC training shall pay market rates for such training.
(G) Of the total amount made available pursuant to
this paragraph, up to 5 percent may be used for
associated administrative expenses for NRC to carry out
activities provided under this paragraph.
(H) Mortgage foreclosure mitigation assistance
grants may include a budget for outreach and
advertising, and training, as determined by NRC.
(I) NRC shall report bi-annually to the House and
Senate Committees on Appropriations as well as the
Senate Committee on Banking, Housing, and Urban Affairs
and the House Committee on Financial Services on its
efforts to mitigate mortgage default.
(2) Legal assistance.--
(A) The Neighborhood Reinvestment Corporation may
make grants to counseling intermediaries approved by
HUD or the NRC to hire attorneys to assist homeowners
who have legal issues directly related to the
homeowner's foreclosure, delinquency, or short sale.
(B) Such attorneys shall be capable of assisting
homeowners of owner-occupied homes with mortgages in
default, in danger of default, or subject to or at risk
of foreclosure and who have legal issues that cannot be
handled by counselors already employed by such
intermediaries.
(C) Grants under this paragraph may only be made to
counseling intermediaries and legal organizations that
(i) provide legal assistance in the 15 States with the
highest rates of home mortgage defaults and
foreclosures, as of January 1, 2019, and (ii) have the
capacity to begin using the financial assistance within
90 days after receipt of the assistance.
(D) No funds made available pursuant to this
paragraph shall be used to provide, obtain, or arrange
on behalf of a homeowner, legal representation
involving or for the purposes of civil litigation.
SEC. 4. INCREMENTAL HOUSING CHOICE VOUCHER ASSISTANCE.
(a) Authorization of Appropriations.--There is authorized to be
appropriated for each of fiscal years 2019 through 2023 such sums as
may be necessary to provide in each such fiscal year 20,000 incremental
vouchers for rental assistance under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)).
(b) Eligible Public Housing Agencies.--Any amounts appropriated
pursuant to this section shall be used by the Secretary of Housing and
Urban Development only to provide additional amounts for rental
assistance vouchers for public housing agencies that administer 10,000
or more vouchers for rental assistance under such section 8(o).
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Hardest Hit Housing Act of 2019
#2295 | HR Congress #116
Policy Area: Housing and Community Development
Last Action: Referred to the House Committee on Financial Services. (4/12/2019)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text