NeighborWorks Accountability Act

#2484 | S Congress #119

Subjects:

Last Action: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (7/28/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "NeighborWorks Accountability Act" is a piece of legislation aimed at establishing an Inspector General for the Neighborhood Reinvestment Corporation (NRC). This Act amends existing U.S. Code to include the NRC under the oversight of the Inspector General, thereby enhancing accountability and oversight.

Key provisions of the Act include:

1. **Authorization of Inspector General**: The Act formally authorizes the appointment of an Inspector General for the NRC, providing a mechanism for oversight similar to that of other federal entities.

2. **Funding**: It allows for the appropriation of necessary funds to support the Office of Inspector General, ensuring that it has the resources needed to fulfill its responsibilities.

3. **Audit Requirements**: The Act mandates that the NRC undergoes annual audits conducted by independent external auditors, ensuring that financial operations are transparent and comply with established auditing standards.

4. **Separation of Responsibilities**: The Act clarifies that the Office of Inspector General will not assume any operational responsibilities of the NRC, thereby maintaining a clear distinction between oversight and operational functions.

Overall, the NeighborWorks Accountability Act seeks to improve oversight, accountability, and financial integrity within the Neighborhood Reinvestment Corporation.

Possible Impacts

The "NeighborWorks Accountability Act," which establishes an Inspector General for the Neighborhood Reinvestment Corporation, could affect people in the following ways:

1. **Increased Accountability and Transparency**: By appointing an Inspector General, the Act enhances oversight of the Neighborhood Reinvestment Corporation's operations. This could lead to more transparent decision-making processes and accountability for how funds are utilized, benefiting communities that rely on the corporation's programs and services. Residents may have greater confidence in the organization knowing there is independent oversight.

2. **Improved Program Effectiveness**: With mandated independent audits by certified public accountants, the effectiveness of the Neighborhood Reinvestment Corporation's programs can be evaluated more rigorously. This could lead to better resource allocation and program improvements, ultimately resulting in more effective community development and revitalization efforts that directly benefit individuals and families in those neighborhoods.

3. **Protection Against Mismanagement and Fraud**: The establishment of an Inspector General aims to deter potential mismanagement or fraudulent activities within the Neighborhood Reinvestment Corporation. This can protect taxpayers and community stakeholders from the negative impacts of corruption or inefficiency, ensuring that public funds are used appropriately to support housing and community development initiatives that serve low- and moderate-income families.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2484 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 2484

  To establish an Inspector General of the Neighborhood Reinvestment 
                  Corporation, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 28, 2025

  Mr. Hagerty introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To establish an Inspector General of the Neighborhood Reinvestment 
                  Corporation, 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 ``NeighborWorks Accountability Act''.

SEC. 2. AUTHORIZATION OF INSPECTOR GENERAL OF THE NEIGHBORHOOD 
              REINVESTMENT CORPORATION.

    (a) In General.--Section 415(a)(1)(A) of title 5, United States 
Code, is amended by inserting ``the Neighborhood Reinvestment 
Corporation,'' after ``the Postal Regulatory Commission,''.
    (b) Duties and Audits.--The Neighborhood Reinvestment Corporation 
Act (42 U.S.C. 8101 et seq.) is amended--
            (1) in section 606 (42 U.S.C. 8105), by adding at the end 
        the following:
    ``(e)(1) There is authorized to be appropriated to the Office of 
Inspector General of the corporation established under section 415 of 
title 5, United States Code, such sums as may be necessary to carry out 
this Act.
    ``(2) There shall not be transferred to the Office of Inspector 
General of the corporation any program operating responsibilities of 
the corporation, including the organizational assessments work and 
grantee oversight function of the corporation.''.
    (c) Independent Audit.--Section 607 of the Neighborhood 
Reinvestment Corporation Act (42 U.S.C. 8106) is amended by striking 
subsection (b) and inserting following:
    ``(b)(1) The accounts of the corporation shall be audited annually 
by an independent external auditor.
    ``(2) Notwithstanding any other audit work performed by the Office 
of Inspector General of the corporation, the audits required under 
paragraph (1) shall be conducted in accordance with generally accepted 
auditing standards by independent certified public accountants who are 
certified by a regulatory authority of the jurisdiction in which the 
audit is undertaken.''.
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