Sec. 6. Powers and duties
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The Authority may acquire or purchase any real estate property for use as social housing through any legal means, including as provided in this subsection. Subject to any applicable contract in effect on the date of enactment of this Act, and subject to the right of first refusal allowed by section 42(i)(7) of the Internal Revenue Code of 1986, the owner of any real property provided assistance by the Department, including public housing units and land subject to demolition, disposition, or conversion, shall afford the Authority a right of first negotiation, first offer, and first refusal to purchase, acquire, or otherwise receive the real property at a price that does not exceed the sum of— the amount of outstanding indebtedness secured by the real property; and any associated amount of Federal, State, or local tax or other contractual liability projected to be imposed as a result of the sale, disposition, transfer, or other conveyance of the real property to the Authority under this subsection.
Relocation of a household due to any acquisition, rehabilitation, or demolition under this section of any property assisted by the Department shall be subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 ( 42 U.S.C. 4601 et seq. ) and part 24 of title 49, Code of Federal Regulations, or any successor regulation. The Authority may acquire properties for the purposes described in section 5 by the exercise of the right of eminent domain in a court of competent jurisdiction.
The Authority— shall use the eminent domain power of the Authority— in a manner consistent with the purposes described in section 5; and to preserve and create social housing; and may use the eminent domain power of the Authority— if residents of federally assisted housing form a tenant organization and petition the Authority to acquire the property; if a State or local government is seeking to block the development of affordable housing (including a project not already supported by the Authority); or to support transit-oriented development.
The Authority may not use the eminent domain power of the Authority— for widespread displacement of individuals or families; for the destruction of communities; in a manner that is targeted on the basis of any protected characteristic; or for the development of a highway or other similar infrastructure project that is ancillary to or not required for the preservation or creation of affordable housing. When using the eminent domain power, the Authority shall— meaningfully engage with communities affected by the use of the eminent domain power; enter into community benefit agreements to ensure displacement through the use of the eminent domain power is minimized; and provide reasonable alternatives for any individuals displaced or potentially harmed by the use of the eminent domain power.
The Authority may, notwithstanding any other provision of law, take over as receiver for residential real estate properties, if appointed by the court or official authorized under law to appoint a receiver for a financial institution, public housing agency, or other entity, to ensure maintenance of quality for the benefit of the inhabitants and the community, including undertaking maintenance and renovation activities necessary to maintain or achieve compliance with applicable building, safety, health, and habitability codes and requirements.
The Authority may— hold any real property acquired under subsection
(a)for the purpose of maintaining or increasing social housing stock; operate real property described in paragraph
(1)as rental property and collect income; and update and improve real property described in paragraph
(1)to maintain quality and conditions, which may include actions to retrofit and update the real property to be energy efficient, low-carbon, safe, healthy, climate-resilient, and accessible, including retrofits and updates for— energy efficiency, including— installing energy efficient windows; super-insulating roofs and exterior walls; electrifying water heating; installing electric heat pumps for heating or air conditioning; and increasing the airtightness of building envelopes, heat recovery systems, and ventilation systems; remediation to— eliminate any mold, asbestos, lead-based paint, lead-based paint hazards, lead pipes, radon, or other toxins or contaminants in the real property or otherwise affecting residents of the real property; and utilize least toxic building materials; in-unit efficiency upgrades, including installing energy efficient insulation and efficient and all-electric appliances; providing drinking water, including replacing pipes and ensuring compliance with the Safe Drinking Water Act ( 42 U.S.C. 300f et seq. ) and other applicable standards of the Environmental Protection Agency; energy systems, including installing renewable energy rooftops, renewable energy generation, and photovoltaic glass windows, purchasing clean energy grid supply in bulk, and investing in community-scale energy systems; emergency response, including installing battery storage for backup and rigid foam wall insulation in hurricane and earthquake-prone areas to create shear walls and resistance to structural damage from walls tilting or falling during high winds or earthquakes; transportation, including providing dedicated infrastructure for transportation by bicycle, electric bicycle, micromobility, or electric vehicles, including charging stations; and otherwise meeting minimum property standards established by the Authority or the Secretary. The Authority— may convey any real estate property owned or held by the Authority to an eligible entity under paragraph
(2)for use as affordable housing under section 7(c); may not convey real property that is uninhabitable under this subsection unless the Authority has— taken any actions necessary to bring the real property into compliance with applicable building, safety, health, and habitability codes and requirements; or entered into such agreements with the conveyee sufficient to ensure that any actions necessary to bring the real property into compliance with applicable building, safety, health, and habitability codes and requirements will be taken before the property is occupied; finance or assist in financing the acquisition of residential real estate properties by eligible entities under paragraph
(2)for use as affordable housing; contract directly with any eligible entity for the purpose of developing and managing an affordable housing project involving the purchase or acquisition of the right to use completed or remodeled dwelling units, including condominium units, individual buildings that are part of a larger development, or a portion of the units in a multifamily development, or the construction of new buildings, except that— the project shall be subject to rules and regulations promulgated by the Authority, which shall include a procedure for providing public notice of the availability of funding and a ranking of priority for projects according to criteria for selection; the project shall seek to reasonably comply with any applicable laws, ordinances, and regulations of the State and political subdivision thereof in which the project is located, relating to the construction and repair of buildings, zoning, and the protection of public health; and the project budget may include capital funds to establish spaces for supportive services and funds to provide such services. For purposes of conveyance of assets under this subsection, the following entities shall be eligible entities: A mission-driven nonprofit organization that— has as one of its primary purposes— the provision of housing that is affordable to low-income families and moderate-income families; or the provision of evidence-based supportive services, shelter, or housing assistance for homeless persons or families or those at risk of homelessness; or is otherwise considered by the Authority as a suitable purchaser. A tenant organization, resident-owned cooperative, or community-led development organization. A public housing agency. A State, local, or Tribal governmental agency or other instrumentality. A community land trust. Such other entities considered by the Authority as suitable conveyees. The Authority shall establish standards for excluding entities from eligibility under subparagraph
(A)as appropriate to ensure the preservation and permanent affordability of housing and protection of residents. The Authority shall establish procedures to ensure that any eligible entity that is a nonprofit organization, and to which a real property is conveyed under this subsection, maintains its nonprofit status under section 501(c)(3) of the Internal Revenue Code of 1986. A conveyance under this subsection shall all be accompanied by a permanently affordable social housing use restriction. An eligible entity may receive conveyance of a real property or mortgage under this subsection only if the eligible entity enters into such binding agreements as the Authority considers necessary to ensure that the property involved— is used as permanently affordable housing; and cannot be resold, sold, transferred, or assigned into the private market. The Authority shall hold a reversionary interest in each real property the Authority conveys to an eligible entity under this subsection, with the power to reclaim a real property if the eligible entity is found to have violated the permanently affordable social housing use restriction. If the Authority exercises the reversionary interest under clause
(i)on a real property, the Authority shall, at the time the Authority exercises the reversionary interest, compensate each stakeholder who holds limited equity in the real property. Clause
(i)shall not apply to a real property that the Authority conveys to an eligible entity under this subsection for use as public housing. A resident of a real property acquired under this subsection by an eligible entity may purchase limited equity in the real property, at the discretion of the eligible entity. An eligible entity or stakeholder claiming limited equity in a real property conveyed by the Authority under this subsection shall limit the sum of profit that may be taken on leasehold interests and any shares of stock, equity, or other financial interest in the property to a rate of 2 percent per year, compounded annually and adjusted for inflation. The Authority may issue, purchase, acquire, hold, or service a mortgage on any real estate property. The Authority may seek to recoup any losses incurred on a distressed mortgage acquired under paragraph
(1)from the responsible party if the Authority determines, not later than 5 years after acquisition, that the mortgage fell into distress due to— unfair or abusive terms or practices; fraud or deception; or equity stripping or other such actions taken by an individual who constructively owns the real property or exercises control over the real property. The Authority shall provide technical assistance and financing to support the purchase of rental properties by tenant organizations and community land trusts, regardless of incorporation status, under section 7 and otherwise, which may include financing such repairs and improvements as may be necessary to comply with subsection (c)(1)(B)(ii) of this section. To facilitate the exercise of the powers under subsections
(a)through (d), the Authority shall establish a clearinghouse— for the Authority to provide notice of, and to market, in accordance with the requirements of this Act, real estate assets held by the Authority; for owners of distressed real estate assets to provide notice of the availability of, and to market, such assets to the Authority; and for public availability of notices provided to the Authority under section 10. The Authority may promulgate any regulations necessary to carry out the powers, duties, and functions of the Authority. The Authority shall annually provide a report to Congress evaluating the effectiveness of the Authority's actions. The Authority may monitor the affordability of homeownership and adopt internal policies or recommend congressional action, as needed, to preserve affordability.
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