Sec. 201. HOME Reform

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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 adding at end the following new paragraph: The term infill housing project means a residential housing project that— is located within the geographic limits of a municipality; is adequately served by existing utilities and public services as required under applicable law; is located on a site of previously disturbed land of not more than 5 acres; and is substantially surrounded by residential or commercial development, as determined by the Secretary. .

Title II of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12721 et seq. ) is amended— in section 214(2), by striking households that qualify as low-income families and inserting families with a household income that does not exceed 100-percent of the median-family income of the area, as determined by the Secretary ; in section 215— in subsection (b)(2), by striking whose family qualifies as a low-income family and inserting with a family income that does not exceed 100-percent of the median-family income of the area as determined by the Secretary with adjustments for smaller and larger families ; and in subsection (b)(3)(A)(ii), by striking low-income homebuyers and inserting homebuyers with a household income that does not exceed 100-percent of the median-family income of the area, as determined by the Secretary with adjustments for smaller and larger families ; and in section 271(c)— in paragraph (1)(B), by striking low-income and inserting families with a household income that does not exceed 100-percent of the median-family income of the area as determined by the Secretary with adjustments for smaller and larger families ; and in paragraph (2)(A), by striking low-income families and inserting families with a household income that does not exceed 100-percent of the median-family income of the area as determined by the Secretary with adjustments for smaller and larger families .

Section 212(a)(2) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12742 ) is amended to read as follows: The Secretary may not restrict a participating jurisdiction’s choice of rehabilitation, substantial rehabilitation, new construction, reconstruction, acquisition, or other eligible housing uses authorized in paragraph

(1)unless such restriction is explicitly authorized under section 223(2). . Section 212(a) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12742(a) ) is amended by inserting after paragraph

(3)the following: A participating jurisdiction may use funds provided under this subtitle for infrastructure improvements, including the installation or repair of water and sewer lines, sidewalks, roads, and utility connections if— such participating jurisdiction does not receive assistance under title I of the Housing and Community Development Act of 1974; and such improvements are directly related to, and located within or immediately adjacent to— housing assisted under this subtitle; or housing assisted under section 42 of the Internal Revenue Code of 1986. The labor standards and requirements set forth in section 110 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5310 ) shall apply to any infrastructure improvement conducted using funds provided under this subtitle. Nothing in this paragraph may be construed to impose any requirements of the HOME Investment Partnerships program on housing that benefits from an infrastructure improvement conducted using funds provided under this subtitle but was not otherwise assisted under the HOME Investment Partnerships program. . Not later than 1 year after the date of the enactment of this section, the Secretary shall issue rules to carry out the amendment made by paragraph (1). Section 212(e)(1) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12742(e)(1) ) is amended by striking the second sentence. Section 215(a) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12745(a) ) is amended by adding at the end the following: Notwithstanding paragraph (1)(A), a rental unit shall be considered to qualify as affordable housing under this title if— the unit is occupied by a tenant receiving tenant-based rental assistance under section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ); the tenant’s contribution toward rent does not exceed the amount permitted under such section 8 assistance; and the total rent for the unit does not exceed the amount approved by the public housing agency administering the assistance under that program. . Section 215 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12745(b) ) is amended— in subsection (b)— in paragraph (1), by striking 95 percent and inserting 110 percent ; in paragraph (3)— in subparagraph (A)(ii), by striking or at the end; in subparagraph (B), by striking and at the end and inserting or ; and by adding at the end the following new subparagraph: maintain long-term affordability through a shared equity ownership model, a community land trust, a limited equity cooperative, a community development corporation, or other mechanism approved by the Secretary, that preserves affordability for future eligible homebuyers and ensures compliance with the purposes of this title, including through the use of purchase options, rights of first refusal or other preemptive rights to purchase housing; and ; and by adding at the end the following: A participating jurisdiction, in accordance with terms established by the Secretary, may suspend or waive the income qualifications described in subsection (b)(2) with respect to housing that otherwise meets the criteria described in subsection

(b)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. Housing that meets the criteria described in subsection (b)(3) prior to the death of an owner of such housing shall continue to qualify as affordable housing under this title 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 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 231(b) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12771(b) ) is amended to read as follows: If any funds reserved under subsection

(a)remain uninvested for a period of 24 months, the Secretary shall make such funds available to the participating jurisdiction for any eligible activities under title II of this Act without regard to whether a community housing development organization materially participates in the use of such funds. . Section 245(b)(2) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12785(b)(2) ) is amended by striking 95 percent and inserting 110 percent . Section 288 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12838 ) is amended by adding at the end the following: The following categories of activities carried out under this title shall be statutorily exempt from environmental review under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ), and shall not require further review under such Act— new construction infill housing projects; acquisition of real property for affordable housing purposes; rehabilitation projects carried out pursuant to section 212(a)(1); and new construction projects of 15 units or less. To the extent practicable and permitted by law, the Secretary shall ensure that a project that has undergone an environmental review under this section shall not be subject to a duplicative environmental review solely due to the addition, substitution, or reallocation of other sources of Federal assistance, if the scope, scale, and location of the project remain substantially unchanged. The Secretary shall, by regulation, provide for coordination of environmental review responsibilities with other Federal agencies to streamline inter-agency compliance and avoid unnecessary duplication of effort under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) and other applicable laws. A project may not be subject to an environmental review under this section if a substantially similar review has already been completed by an entity designated under section 104(g)(1) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5304(g)(1) ) or by another entity the Secretary determines to have equivalent authority, if the scope, scale, and location of the project remain substantially unchanged. . Not later than 1 year after the date of the enactment of this Act, the Secretary shall issue such rules as the Secretary determines necessary to carry out the amendment made by this subsection. Any activity generated under this subsection would be subject to an authorization of appropriations. Not later than 180 days after the date of the enactment of this section, the Secretary of Housing and Urban Development shall complete a review of the implementation of the Build America, Buy America Act (title IV of division G of Public Law 117–58 ; 42 U.S.C. 8301 note) with respect to the activities assisted under title II of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12721 et seq. ). Not later than 90 days after the review described in subsection

(a)is completed, the Secretary shall issue updated guidance to clarify the application of the Build America, Buy America Act (title IV of division G of Public Law 117–58 ; 42 U.S.C. 8301 note) with respect to the activities assisted under title II of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12721 et seq. ). Not later than 270 days after the date of the enactment of this section, the Secretary shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report that describes— the results of the review required under subsection (a); and the guidance issued as described in subsection (b). Title II of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12721 et seq. ) is amended by adding at the end the following new section (and by conforming the table of sections in section 1(b), accordingly): Notwithstanding any other provision of law, the requirements of section 3 of the Housing and Urban Development Act of 1968 ( 12 U.S.C. 1701u ), and any implementing regulations or guidance, shall not apply to an activity assisted under this title that involves rehabilitation, construction, or other development of housing if— the recipient of assistance under this title is— a State recipient pursuant to section 216; or a participating jurisdiction that received a total allocation of less than $3,000,000 in the most recent fiscal year pursuant to section 216; and the total number of dwelling units assisted as a part of such activity is 50 or fewer. . The Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12701 et seq. ) is amended— by striking Stewart B. McKinney Homeless Assistance Act each place it appears and inserting McKinney-Vento Homeless Assistance Act ; and by striking Committee on Banking, Finance and Urban Affairs each place it appears and inserting Committee on Financial Services . Section 217(d) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12747(d) ) is amended— in paragraph (1), by striking the second sentence and inserting the following: Subject to paragraph (4), jurisdictions eligible for such reallocations shall include participating jurisdictions and jurisdictions meeting the requirements of this title, including the requirements in paragraphs (3), (4), and

(5)of section 216. ; and by adding at the end the following: The Secretary may decline to make a reallocation available to a jurisdiction eligible for such reallocation if such jurisdiction has failed to meet or comply with any requirement under this title. . Section 215(a) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12745(a) ) is amended— in paragraph (1)(E), by striking except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action

(i)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

(ii)is not for the purpose of avoiding low income affordability restrictions, as determined by the Secretary; and 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; or where existing affordable housing is no longer financially viable due to unforeseen acts or occurrences beyond the reasonable contemplation or control of the participating jurisdiction in which the affordable housing is located or the owner of the affordable housing that significantly impact the financial or physical condition of the affordable housing, as determined by the Secretary; and ; and by adding at the end the following: Small-scale housing shall qualify as affordable housing under this title if— each dwelling unit in such housing bears rent in an amount that complies with the requirements described in paragraph (1)(A); each dwelling unit in such housing is occupied by a low-income family; no dwelling unit in such housing is refused for leasing to a holder of a voucher under section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ) because of the status of the prospective tenant as a holder of such voucher; such housing complies with the requirement described in paragraph (1)(E); and the participating jurisdiction in which such small-scale housing is located monitors the compliance of such housing with the requirements of this title in a manner consistent with the purposes of section 226(b), as determined by the Secretary. In this paragraph, the term small-scale housing means housing with not more than 4 dwelling units each of which is made available for rental. . 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), (3), and

(4)shall not apply to small-scale housing, as such term is defined in section 215(a)(7). . Section 104 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12704 ) is amended by adding at the end the following: The term community land trust means a nonprofit entity, a State, a unit of local government or instrumentality of a State or unit of local government that— is not managed by, or an affiliate of, a for-profit organization; has as a primary purpose of acquiring, developing, or holding land to provide housing that is permanently affordable to low- and moderate-income persons; monitors properties to ensure affordability is preserved; provides housing that is permanently affordable to low- and moderate-income persons using a ground lease, deed covenant, or other similar legally enforceable measure, determined acceptable by the Secretary, that— keeps 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 if such purchase would allow the housing to remain affordable to low-and moderate-income persons. . The Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12701 et seq. ) is amended— in section 233 by striking subsection (f); and in section 233(b)(6), by striking to community land trusts (as such term is defined in subsection (f)) and inserting to community land trusts (as such term is defined in section 104) . Section 217(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747 (b)) is amended— in paragraph (2), by striking $500,000 each place that term appears and inserting $750,000 ; in paragraph (3)— by striking jurisdictions that are allocated an amount of $500,000 or more and inserting jurisdictions that are allocated an amount of $750,000 or more ; by striking that are allocated an amount less than $500,000 and inserting that are allocated an amount less than $750,000 ; and by striking , except as provided in paragraph

(4); and by striking paragraph (4). The Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12701 et seq. ) is amended— in section 108(a)(1), by striking section 105(b)(15) and inserting section 105(b)(18) ; and in section 217(b)(1)(F), by striking Subcommittee on Housing and Community Development and inserting Subcommittee on Housing, Transportation, and Community Development .

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