Sec. 502. HOME Investment Partnerships Reauthorization and Improvement Act

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Section 205 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12724 ) is amended to read as follows: The HOME Investment Partnerships Program under subtitle A is hereby authorized. There is authorized such sums as may be necessary to carry out subtitle A. . Subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12741 et seq. ) is amended— in section 212(c) ( 42 U.S.C. 12742(c) ), by striking 10 percent and inserting 15 percent ; and in section 220(b) ( 42 U.S.C. 12750(b) )— by striking and all that follows through Recognition.— A contribution and inserting the following: ; and Recognition.— A contribution by striking paragraph (2).

Section 217(d)(3) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12747(d)(3) ) is amended by striking and inserting the following: ″ Limitation .—Unless otherwise specified Limitations .— The Secretary may, upon a finding that such jurisdiction has failed to meet or comply with the requirements of this title, remove a participating jurisdiction from participation in reallocations of funds made available under this title. Unless otherwise specified . Section 215 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12745 ) is amended— in subsection (a)— in paragraph (1)(E), by striking all that follows purposes of this Act, and inserting the following:

“except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action— recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure; and is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; and ; and by adding at the end the following:

In this paragraph, the term small-scale housing means housing with not more than 4 rental units. Small-scale housing shall qualify as affordable housing under this title if— the housing bears rents that comply with paragraph (1)(A); each unit is occupied by a household that qualifies as a low-income family; the housing complies with paragraph (1)(D); the housing meets the requirements under paragraph (1)(E); and the participating jurisdiction monitors ongoing compliance of the housing with requirements of this title in a manner consistent with the purposes of section 226(b), as determined by the Secretary. ; and in subsection (b)(1), by inserting (defined as the amount borrowed by the homebuyer to purchase the home, or estimated value after rehabilitation, which may be adjusted to account for the limits on future value imposed by the resale restriction) after purchase price .

Section 218 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12748 ) is amended— by striking subsection (g); and by redesignating subsection

(h)as subsection (g). Section 218(c) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12748(c) ) is amended— in paragraph (1), by adding and at the end; by striking paragraph (2); by redesignating paragraph

(3)as paragraph (2); and in paragraph (2), as so redesignated, by striking section 224 and inserting section 223 . Section 215 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12745 ), as amended by this section, is amended— in subsection (b)— in paragraph (2), by redesignating subparagraphs (A), (B), and

(C)as clauses (i), (ii), and (iii), respectively, and adjusting the margins accordingly; by striking paragraph (3); by redesignating paragraphs (1), (2), and

(4)as subparagraphs (A), (B), and (D), respectively, and adjusting the margins accordingly; by inserting after subparagraph (B), as so redesignated, the following: is subject to restrictions that are established by the participating jurisdiction and determined by the Secretary to be appropriate, including with respect to the useful life of the property, to— require that any subsequent purchase of the property be— only by a person who meets the qualifications specified under subparagraph (B); and at a price that is determined by a formula or method established by the participating jurisdiction that provides the owner with a reasonable return on investment, which may include a percentage of the cost of any improvements; or recapture the investment provided under this title in order to assist other persons in accordance with the requirements of this title, except where there are no net proceeds or where the net proceeds are insufficient to repay the full amount of the assistance; and ; by striking Housing that is for homeownership and inserting the following: Housing that is for homeownership ; and by adding at the end the following: Notwithstanding subparagraph (C)(i) of paragraph

(1)and under terms determined by the Secretary, the Secretary may permit a participating jurisdiction to allow a community land trust that used assistance provided under this subtitle for the development of housing that meets the criteria under paragraph (1), to acquire the housing— in accordance with the terms of the preemptive purchase option, lease, covenant on the land, or other similar legal instrument of the community land trust when the terms and rights in the preemptive purchase option, lease, covenant, or legal instrument are and remain subject to the requirements of this title; when the purchase is for— the purpose of— entering into the chain of title; enabling a purchase by a person who meets the qualifications specified under paragraph (1)(B) and is on a waitlist maintained by the community land trust, subject to enforcement by the participating jurisdiction of all applicable requirements of this subtitle, as determined by the Secretary; performing necessary rehabilitation and improvements; or adding a subsidy to preserve affordability, which may be from Federal or non-Federal sources; or another purpose determined appropriate by the Secretary; and if, within a reasonable period of time after the applicable purpose under subparagraph

(B)of this paragraph is fulfilled, as determined by the Secretary, the housing is then sold to a person who meets the qualifications specified under paragraph (1)(B). A participating jurisdiction, in accordance with terms established by the Secretary, may suspend or waive a requirement under paragraph (1)(B) with respect to housing that otherwise meets the criteria under paragraph

(1)if the owner of the housing— is a member of a regular component of the armed forces or a member of the National Guard on full-time National Guard duty, active Guard and Reserve duty, or inactive-duty training (as those terms are defined in section 101(d) of title 10, United States Code); and has received— temporary duty orders to deploy with a military unit or military orders to deploy as an individual acting in support of a military operation, to a location that is not within a reasonable distance from the housing, as determined by the Secretary, for a period of not less than 90 days; or orders for a permanent change of station. Notwithstanding subparagraph

(C)of paragraph (1), housing that meets the criteria under that paragraph prior to the death of an owner may continue to qualify as affordable housing if— the housing is the principal residence of an heir or beneficiary of the deceased owner, as defined by the Secretary; and the heir or beneficiary, in accordance with terms established by the Secretary, assumes the duties and obligations of the deceased owner with respect to funds provided under this title. . Section 226(b) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12756(b) ) is amended— by striking Each participating jurisdiction and inserting the following: Each participating jurisdiction ; and by striking Such review shall include and all that follows and inserting the following: A review conducted under paragraph

(1)by a participating jurisdiction that is a unit of general local government shall include an on-site inspection to determine compliance with housing codes and other applicable regulations. A review conducted under paragraph

(1)by a participating jurisdiction that is a State shall include an on-site inspection to determine compliance with a national standard as determined by the Secretary. A participating jurisdiction shall include in the performance report of the participating jurisdiction submitted to the Secretary under section 108(a), and make available to the public, the results of each review conducted under paragraph (1). . Section 223 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12753 ) is amended— in the heading, by striking and inserting Penalties for misuse of funds ; Program enforcement and penalties for noncompliance in the matter preceding paragraph (1), by inserting after any provision of this subtitle the following: , including any provision applicable throughout the period required by section 215(a)(1)(E) and applicable regulations, ; in paragraph (2), by striking or at the end; in paragraph (3), by striking the period at the end and inserting ; or ; and by adding at the end the following: reduce payments to the participating jurisdiction under this subtitle by an amount equal to the amount of such payments which were not expended in accordance with this title. . Section 225 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12755 ) is amended by adding at the end the following: Paragraphs

(2)through

(4)of subsection

(d)shall not apply to the owner of small-scale housing (as defined in section 215(a)(7)). . Section 104 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12704 ) is amended— in paragraph (6)(B)— by striking significant ; and by striking and otherwise and inserting or as otherwise determined acceptable by the Secretary ; and by adding at the end the following: The term community land trust means a nonprofit entity or a State or local government or instrumentality thereof that— is not managed by, or an affiliate of, a for-profit organization; has as a primary purpose acquiring, developing, or holding land to provide housing that is permanently affordable to low- and moderate-income persons, and monitors properties to ensure affordability is preserved; provides housing described in subparagraph

(B)using a ground lease, deed covenant, or other similar legally enforceable measure, as determined by the Secretary, that— keeps the housing affordable to low- and moderate-income persons for not less than 30 years; and enables low- and moderate-income persons to rent or purchase the housing for homeownership; and maintains preemptive purchase options to purchase the property so the housing remains affordable to low- and moderate-income persons. . Section 233 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12773 ) is amended by striking subsection (f). Section 231 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12771 ) is amended— in subsection (a), by striking to be developed, sponsored, or owned by community housing development organizations and inserting when a community housing development organization materially participates in the ownership or development of such housing, as determined by the Secretary ; by striking subsection

(b)and inserting the following: If any funds reserved under subsection

(a)remain uninvested for a period of 24 months, then the Secretary shall make such funds available to the participating jurisdiction for any eligible activities under this title without regard to whether a community housing development organization materially participates in the use of the funds. ; and by striking subsection (c). The Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12701 et seq. ) is amended— in section 104 ( 42 U.S.C. 12704 )— by redesignating paragraph

(23)(relating to the definition of the term to demonstrate to the Secretary ) as paragraph (22); and by redesignating paragraph

(24)(relating to the definition of the term insular area , as added by section 2(2) of Public Law 102–230 ) as paragraph (23); in section 105(b) ( 42 U.S.C. 12705(b) )— in paragraph (7), by striking Stewart B. McKinney Homeless Assistance Act and inserting McKinney-Vento Homeless Assistance Act ; and in paragraph (8), by striking subparagraphs and inserting paragraphs ; in section 106 ( 42 U.S.C. 12706 ), by striking Stewart B. McKinney Homeless Assistance Act and inserting McKinney-Vento Homeless Assistance Act ; in section 108(a)(1) ( 42 U.S.C. 12708(a)(1) ), by striking section 105(b)(15) and inserting section 105(b)(18) ; in section 212 ( 42 U.S.C. 12742 )— in subsection (a)— in paragraph (3)(A)(ii), by inserting United States before Housing Act ; and by redesignating paragraph

(5)as paragraph (4); in subsection (d)(5), by inserting United States before Housing Act ; and in subsection (e)(1)— by striking section 221(d)(3)(ii) and inserting section 221(d)(4) ; and by striking not to exceed 140 percent and inserting as determined by the Secretary ; in section 215(a)(6)(B) (42 U.S.C. 20 12745(a)(6)(B)), by striking grand children and inserting grandchildren ; in section 217 ( 42 U.S.C. 12747 )— in subsection (a)— in paragraph (1), by striking

(3)and inserting

(2); by striking paragraph (3), as added by section 211(a)(2)(D) of the Housing and Community Development Act of 1992 ( Public Law 102–550 ; 106 Stat. 3756); and by redesignating the remaining paragraph (3), as added by the matter under the heading under the heading Home investment partnerships program in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1993 ( Housing programs Public Law 102–389 ; 106 Stat. 1581), as paragraph (2); and in subsection (b)— in paragraph (1)— in the first sentence of subparagraph (A)— by striking in regulation and inserting , by regulation, ; and by striking eligible jurisdiction and inserting eligible jurisdictions ; and in subparagraph (F)— in the first sentence— in clause (i), by striking Subcommittee on Housing and Urban Affairs and inserting Subcommittee on Housing, Transportation, and Community Development ; and in clause (ii), by striking Subcommittee on Housing and Community Development of the Committee on Banking, Finance and Urban Affairs and inserting Subcommittee on Housing and Insurance of the Committee on Financial Services ; and in the second sentence, by striking the Committee on Banking, Finance and Urban Affairs of the House of Representatives and inserting the Committee on Financial Services of the House of Representatives ; in paragraph (2)(B), by striking $500,000 each place that term appears and inserting $750,000 ; in paragraph (3)— by striking $500,000 each place that term appears and inserting $750,000 ; and by striking , except as provided in paragraph

(4); and by striking paragraph (4); in section 220(c) ( 42 U.S.C. 12750(c) )— in paragraph (3), by striking Secretary and all that follows and inserting Secretary; ; in paragraph (4), by striking under this title and all that follows and inserting under this title; ; and by redesignating paragraphs (6), (7), and

(8)as paragraphs (5), (6), and (7), respectively; in section 225(d)(4)(B) ( 42 U.S.C. 12755(d)(4)(B) ), by striking for the first place that term appears; and in section 283 ( 42 U.S.C. 12833 )— in subsection (a), by striking Banking, Finance and Urban Affairs and inserting Financial Services ; and in subsection (b), by striking General Accounting Office each place that term appears and inserting Government Accountability Office .

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