II
110th CONGRESS
1st Session
S. 2455
IN THE SENATE OF THE UNITED STATES
December 12, 2007
Mr. Coleman (for himself and Mr. Leahy) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To provide $1,000,000,000 in emergency Community Development Block Grant funding for necessary expenses related to the impact of foreclosures on communities.
Short title
This Act may be cited as the
Community Foreclosure Assistance Act
of 2007
.
Additional emergency CDBG funding
Appropriation
There are authorized to be appropriated, and shall be appropriated, $1,000,000,000, to remain available until expended, for assistance to States, metropolitan cities, and urban counties (as those terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)) in carrying out 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.)—
for necessary expenses related to the impact of housing foreclosures, and other related economic and community development activities; and
to provide foreclosure-based rental assistance for individual renters in the form of relocation assistance.
Limitation
In general
Except for counseling services none of the amounts appropriated under subsection (a) may be provided, directly or indirectly, to an individual homeowner for foreclosure prevention purposes, including for refinancing assistance, loans, or any other form of financial assistance. Such funds may be provided directly to a certified housing counseling service, which shall be considered as a subrecipient of such grant amounts.
Definition
For purposes of paragraph (1), the term certified housing counseling service means a housing counseling agency approved by the Secretary of Housing and Urban Development pursuant to section 106(d) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(d)).
Increased public services requirement cap
For purposes of this Act, paragraph (8) of section 105(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)) shall apply to the use of all funds appropriated or otherwise made available under this Act by substituting—
25 per centum
for 15
per centum
each place that term appears; and
25
percent
for 15 percent
each place that term
appears.
Low and moderate income requirement
At least 50 percent of the funds appropriated or otherwise made available under this Act shall benefit primarily persons of low- and moderate-income.
Plans and reports
Comprehensive plan
None of the funds appropriated or otherwise made available under this Act shall be used by any State, metropolitan city, or urban county until such time as that State, metropolitan city, or urban county submits to the Secretary of Housing and Urban Development, for approval by the Secretary, a comprehensive plan detailing the proposed use of all such funds.
Report on use of funds
During the period of time that funds are being expended under this Act, each State, metropolitan city, or urban county receiving funds under this Act shall submit, on a quarterly basis, a report to the Secretary of Housing and Urban Development describing and accounting for the use of all such funds expended during the applicable period.
Waivers
General waiver
In administering funds appropriated or otherwise made available under this Act, the Secretary of Housing and Urban Development shall waive, or specify alternative requirements for, any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by the recipient of such funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), upon a request by a State, metropolitan city, or urban county that such waiver is required to facilitate the use of such funds, and a finding by the Secretary that such waiver would not be inconsistent with the overall purpose of the statute.
Low and moderate income requirement waiver
The Secretary of Housing and Urban Development may waive, upon the request of a State, metropolitan city, or urban county, the 50 percent requirement described under section 4. Such waiver shall, in the discretion of the Secretary, only be granted if a compelling need is demonstrated.
Public services cap
The Secretary of Housing and Urban Development may waive, upon the request of a State, metropolitan city, or urban county, the public service requirement cap described under section 3. Such waiver shall, in the discretion of the Secretary, only be granted if a compelling need is demonstrated.
Other waiver provisions
Publication in the Federal Register
The Secretary of Housing and Urban Development shall publish in the Federal Register any waiver of any statute or regulation authorized under this section not later than 5 days before the effective date of such waiver.
Review of waiver
Each waiver granted under this section by the Secretary of Housing and Urban Development shall be reconsidered, and if still necessary reauthorized by the Secretary, not later than 2 years after the date on which such waiver was first published in the Federal Register pursuant to paragraph (1).
Notification of Committees
The Secretary of Housing and Urban Development shall notify the Committee on Appropriations of the Senate and the Committee on Appropriations of the House of Representatives of any waiver granted or denied under this section not later than 5 days before such waiver is granted or denied.
Noncompliance with community development requirements
For purposes of this Act, the provisions of section 111 of the Housing and Community Development Act of 1974 (42 U.S.C. 5311)(relating to noncompliance) shall apply to the use of all funds appropriated or otherwise made available under this Act.
GAO audit
The Comptroller General of the United States shall—
conduct an audit of the expenditure of all funds appropriated under this Act in accordance with generally accepted government auditing standards; and
submit a report detailing such audit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.
Reports
The Secretary of Housing and Urban Development shall report, on a quarterly basis, to the Committee on Appropriations of the Senate and the Committee on Appropriations of the House of Representatives on—
the use of funds appropriated or otherwise made available under this Act, including—
the number of households receiving counseling and rental assistance;
the outcomes of such assistance activities;
the names of those certified housing counseling service providing counseling assistance pursuant to this Act; and
such other information as the Secretary may deem appropriate; and
all steps taken by the Secretary to prevent fraud and abuse of such funds.