S.Amdt. 1805

1. Adds Sec. 244. Funds appropriated or otherwise made available by this title for grants to be awarded by the Secretary of Housing and Urban Development shall be subject to the following accountability provisions: on page 169, between lines 22 and 23

   Adds a sectionPrinted page

   Inserted: Sec. 244. Funds appropriated or otherwise made available by this title for grants to be awarded by the Secretary of Housing and Urban Development shall be subject to the following accountability provisions:

   Inserted: (1) Audit requirement.--

   Inserted: (A) In general.--Beginning in the first fiscal year beginning after the date of the enactment of this title, and in each fiscal year thereafter, the Inspector General of the Department of Housing and Development shall conduct audits of recipients of any grant amounts appropriated or otherwise made available under this title to prevent waste, fraud, and abuse of funds by grantees. The Inspector General shall ensure that at least 10 percent of all grantees receiving grant amounts appropriated or otherwise made available under this title are audited each year.

   Inserted: (B) Definition.--In this paragraph, the term "unresolved audit finding" means a finding in the final audit report of the Inspector General of the Department of Housing and Urban Development that the audited grantee has utilized grant funds for an unauthorized expenditure or otherwise unallowable cost that is not closed or resolved within 12 months from the date when the final audit report is issued.

   Inserted: (C) Mandatory exclusion.--A recipient of grant amounts appropriated or otherwise made available under this title that is found to have an unresolved audit finding shall not be eligible to receive grant amounts appropriated or otherwise made available under this title during the following 2 fiscal years.

   Inserted: (D) Priority.--In awarding amounts appropriated or otherwise made available under this title, the Secretary of Housing and Urban Development shall give priority to eligible entities that did not have an unresolved audit finding during the 3 fiscal years prior to submitting an application for grant amounts appropriated or otherwise made available under this title.

   Inserted: (E) Reimbursement.--If an entity is awarded grant amounts appropriated or otherwise made available under this title during the 2-fiscal-year period in which the entity is barred from receiving grants under subparagraph (B), the Secretary of Housing and Urban Development shall--

   Inserted: (i) deposit an amount equal to the grant amounts that were improperly awarded to the grantee into the General Fund of the Treasury; and

   Inserted: (ii) seek to recoup the costs of the repayment to the fund from the grant recipient that was erroneously awarded grant funds.

   Inserted: (F) Disclosure.--A recipient of grant amounts appropriated or otherwise made available under this title shall disclose to the Secretary of Housing and Urban Development, in the application for the grant, if the recipient has ever requested that a departing employee or contractor of the recipient sign an agreement, for compensation, delaying or declining to cooperate with any audits or investigations performed by or on behalf of the United States Government relating to use of Federal housing grant amounts.

   Inserted: (2) Nonprofit organization requirements.--

   Inserted: (A) Definition.--For purposes of this paragraph and any grant programs described in this title, the term "nonprofit organization" means an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and is exempt from taxation under section 501(a) of such Code.

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   Inserted: (B) Prohibition.--The Secretary of Housing and Urban Development may not award any grant amounts appropriated or otherwise made available under this title to a nonprofit organization that holds money in offshore accounts for the purpose of avoiding paying the tax described in section 511(a) of the Internal Revenue Code of 1986.

   Inserted: (C) Disclosure.--Each nonprofit organization that is a recipient of grant amounts appropriated or otherwise made available under this title and uses the procedures prescribed in regulations to create a rebuttable presumption of reasonableness for the compensation of its officers, directors, trustees and key employees, shall disclose to the Secretary of Housing and Urban Development, in the application for the grant, the process for determining such compensation, including the independent persons involved in reviewing and approving such compensation, the comparability data used, and contemporaneous substantiation of the deliberation and decision. Upon request, the Secretary of Housing and Urban Development shall make the information disclosed under this paragraph available for public inspection.

   Original wording

   On page 169, between lines 22 and 23, insert the following:

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As printed