Sec. 202. State affordable housing trust fund match

1,673 words·~8 min read·/bill/117/s/4789/is/section-202

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 217 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12747 ) is amended by adding at the end the following: In this subsection: The term affordable housing needs means housing, housing construction, or housing improvements designated for low-income individuals, including individuals experiencing substance use disorders, veterans, individuals in rural communities, individuals experiencing homelessness, or individuals experiencing disabilities. The term bonus amount means an increased amount allocated to a State under paragraph (2)(A).

The term covered housing assistance — means housing-related assistance that— is provided by the Federal Government or a State or local government, or an agency or instrumentality thereof; and imposes affordable housing quality or safety measures that are acceptable to the Secretary; and includes— assistance provided under— the HOME Investment Partnerships Program under this title; the Federal Housing Administration’s Risk-Sharing Programs under section 542 of the Housing and Community Development Act of 1992 ( 12 U.S.C. 1715z–22 ); the Community Development Block Grant Program under title I of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 et seq. ); or the Housing Trust Fund under section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4568 ); tax credits provided under section 42 of the Internal Revenue Code of 1986; and funding derived from proceeds of bonds that are— exempt from tax under section 103 of the Internal Revenue Code of 1986; and part of an issue 95 percent or more of the proceeds of which are used to provide qualified residential rental projects (as defined in section 142(d) of such Code).

The term COVID–19 emergency period means the period beginning in fiscal year 2020 and ending in the fiscal year that begins after the last day of the public health emergency declared by the Secretary of Health and Human Services under section 319 of the Public Health Service Act ( 42 U.S.C. 247d ) with respect to COVID–19. The term eligible State , with respect to eligibility to receive a bonus amount for a fiscal year, means a State that made a qualifying expenditure during any of the 3 preceding fiscal years, subject to clause (ii).

If the 3-fiscal year period referred to in clause

(i)would include a fiscal year occurring during the COVID–19 emergency period, a State may elect to have the Secretary apply that clause by substituting the 3 most recent fiscal years that did not coincide with the COVID–19 emergency period for the 3 preceding fiscal years . The term housing for individuals experiencing substance use disorders means— housing that— is designed to meet the needs of an individual experiencing a substance use disorder or a family that includes such an individual; and makes available supportive services that address the physical health, mental health, behavioral health, substance use treatment, or other needs of an individual described in subclause (I), which may include such services to the family of the individual; and recovery housing, as defined in section 550 of the Public Health Service Act ( 42 U.S.C. 290ee–5 ). The term qualifying expenditure means an expenditure— that was obligated, through a State affordable housing trust fund, for a project that also received covered housing assistance; not less than 20 percent of the beneficiaries of which are households with an income that is not more than 30 percent of the area median income; or not less than 40 percent of the beneficiaries of which are households with an income that is not more than 60 percent of the area median income; that has a period of affordability of not less than 15 years; and that has not been counted for purposes of the non-Federal matching requirement under section 220. The term qualifying expenditure for extremely low-income households means a qualifying expenditure that satisfies the criterion under subclause

(I)of subparagraph (G)(ii). The term qualifying expenditure for low-income households means a qualifying expenditure that satisfies the criterion under subclause

(II)of subparagraph (G)(ii). The term State affordable housing trust fund means a fund operated by a State, or an agency or instrumentality thereof— that— provides financial assistance for a variety of affordable housing needs; and receives public funding; and without regard to whether the State (or agency or instrumentality) designates the fund as a trust fund or otherwise. Subject to subparagraph (B), for fiscal year 2023 and each fiscal year thereafter, with respect to an eligible State that submits a complete application to the Secretary under paragraph (4), the Secretary shall increase the amount that would otherwise be allocated to the State under this section by an amount equal to the sum of the amounts calculated by the Secretary for the State under subparagraphs

(A)and

(B)of paragraph (3). If the total amount of bonus amounts that would otherwise be allocated under subparagraph

(A)for a fiscal year exceeds the amounts made available to carry out this subsection for that fiscal year, the Secretary shall reduce the bonus amount allocated to each State under subparagraph

(A)on a pro rata basis. The amount calculated under this subparagraph for a State for a fiscal year shall be 50 percent of the average amount that the State obligated for qualifying expenditures for low-income households during each of the preceding 3 fiscal years, subject to subparagraph (D). The amount calculated under this subparagraph for a State for a fiscal year shall be not more than 75 percent of the average amount that the State obligated, during each of the preceding 3 fiscal years, subject to subparagraph (D), for— qualifying expenditures for low-income households for projects that substantially complied with the definition of the term housing for individuals experiencing substance use disorders under paragraph (1); or qualifying expenditures for extremely low-income households. A qualifying expenditure by a State or State-designated entity counted under subparagraph

(B)may not be counted under subparagraph (A). If the 3-fiscal year period referred to in subparagraphs

(A)and

(B)would include a fiscal year occurring during the COVID–19 emergency period, a State may elect to have the Secretary make the calculation under those subparagraphs using the 3 most recent fiscal years that did not coincide with the COVID–19 emergency period. An eligible State that wishes to receive a bonus amount shall submit to the Secretary an application, as part of the annual action plan required under section 91.320 of title 24, Code of Federal Regulations (or any successor regulation), in accordance with subparagraph (B). An application submitted under subparagraph

(A)shall include, for purposes of determining the amount of the bonus amount— a list of each qualifying expenditure that the State wishes to be counted for purposes of calculating the amount of the bonus amount, including the fiscal year in which the qualifying expenditure was made; a description of each project that the State has funded using a qualifying expenditure described in clause (i); whether the State wishes each qualifying expenditure described in clause

(i)to be counted in calculating— the standard amount under paragraph (3)(A); or the enhanced amount under paragraph (3)(B); the amount of each qualifying expenditure described in clause (i); an explanation of how each qualifying expenditure described in clause (i)— satisfies the definition of the term qualifying expenditure under paragraph (1), including the requirement under clause

(i)of that definition; and if applicable— funded a project that substantially complies with the definition of the term housing for individuals experiencing substance use disorders under paragraph (1); or was a qualifying expenditure for extremely low-income households; and a timeline for completion of each project described in clause (ii). The Secretary shall, for each State that wishes to receive a bonus amount— require the State to develop and maintain a system to— track obligated funds from a State affordable housing trust fund; and ensure that each obligation described in subclause

(I)that the State claims as a qualifying expenditure under subparagraph (B)(i) constitutes a qualifying expenditure; and establish minimum requirements for agreements, between the State and each entity that receives assistance from the State in the form of a qualifying expenditure, which shall include— appropriate periodic financial and project reporting, record retention, and audit requirements for the duration of the assistance to ensure compliance with the definition of the term qualifying expenditure under paragraph (1); and any other requirements that the Secretary determines are necessary to ensure appropriate administration of amounts from State affordable housing trust funds for purposes of this subsection. Not later than September 30, 2026, and every 4 years thereafter, the Secretary shall submit a report to Congress regarding the implementation of this subsection during the preceding 4-year period. In each report submitted under subparagraph (A), the Secretary shall— identify each State that received a bonus amount, and the amount of the bonus amount; describe whether States have increased investment in and obligation of funds from State affordable housing trust funds as a result of the increased funding provided under this subsection; describe how many more units were created by the bonus amount in each State that received a bonus amount; describe the populations targeted by projects that were funded with qualifying expenditures or funded by bonus amounts, such as individuals experiencing substance use disorders, veterans, individuals in rural communities, individuals experiencing homelessness, or individuals experiencing disabilities; describe the average length of affordability periods for— projects funded with qualifying expenditures; and projects funded by bonus amounts; for each State that received a bonus amount, describe whether the State used the bonus amount for— rehabilitation of owner-occupied housing; assistance to home buyers; or rental housing activities; and assess any other metric that the Secretary determines necessary. There are authorized to be appropriated to the Secretary for fiscal year 2023 and each fiscal year thereafter such amounts as may be necessary to carry out this subsection. Nothing in this subsection shall be construed to authorize the Secretary to consider the amount of a bonus amount allocated to a State in determining under subsection (b)(2) whether the formula established under subsection

(b)would allocate less than $3,000,000 to the State. .

Connectionstraces to 4

Traces to 4 documents

U.S. Code

2 references not yet in our index