S 2969 ISCommentsClose CommentsPermalink

To provide additional emergency mortgage assistance to struggling homeowners, and for other purposes.CommentsClose CommentsPermalink

January 28, 2010CommentsClose CommentsPermalink

Mr. CASEY introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsCommentsClose CommentsPermalink

To provide additional emergency mortgage assistance to struggling homeowners, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Homeowners’ Relief and Neighborhood Stabilization Act of 2010’.CommentsClose CommentsPermalink

SEC. 2. EMERGENCY MORTGAGE RELIEF.

(a) Use of TARP Funds- Using the authority available under sections 101(a) and 115(a) of division A of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a), 5225(a)), the Secretary of the Treasury shall transfer to the Secretary of Housing and Urban Development $3,000,000,000, and the Secretary of Housing and Urban Development shall credit such amount to the Emergency Homeowners’ Relief Fund, which such Secretary shall establish pursuant to section 107 of the Emergency Housing Act of 1975 (12 U.S.C. 2706), as such Act is amended by this section, for use for emergency mortgage assistance in accordance with title I of such Act.CommentsClose CommentsPermalink





(b) Reauthorization of Emergency Mortgage Relief Program- Title I of the Emergency Housing Act of 1975 is amended--CommentsClose CommentsPermalink





(1) in section 103 (12 U.S.C. 2702)--CommentsClose CommentsPermalink





(A) in paragraph (2)--CommentsClose CommentsPermalink





(i) by striking ‘have indicated’ and all that follows through ‘regulation of the holder’ and inserting ‘have certified’;CommentsClose CommentsPermalink





(ii) by striking ‘(such as the volume of delinquent loans in its portfolio)’; andCommentsClose CommentsPermalink





(iii) by striking ‘, except that such statement’ and all that follows through ‘purposes of this title’; andCommentsClose CommentsPermalink





(B) in paragraph (4), by inserting ‘or medical conditions’ after ‘adverse economic conditions’;CommentsClose CommentsPermalink





(2) in section 104 (12 U.S.C. 2703)--CommentsClose CommentsPermalink





(A) in subsection (b), by striking ‘, but such assistance’ and all that follows through the period at the end and inserting the following: ‘. The amount of assistance provided to a homeowner under this title shall be an amount that the Secretary determines is reasonably necessary to supplement such amount as the homeowner is capable of contributing toward such mortgage payment, except that the aggregate amount of such assistance provided for any homeowner shall not exceed $50,000.’;CommentsClose CommentsPermalink





(B) in subsection (d), by striking ‘interest on a loan or advance’and all that follows through the end of the subsection and inserting the following: ‘(1) the rate of interest on any loan or advance of credit insured under this title shall be fixed for the life of the loan or advance of credit and shall not exceed the rate of interest that is generally charged for mortgages on single-family housing insured by the Secretary of Housing and Urban Development under title II of the National Housing Act at the time such loan or advance of credit is made, and (2) no interest shall be charged on interest which is deferred on a loan or advance of credit made under this title. In establishing rates, terms and conditions for loans or advances of credit made under this title, the Secretary shall take into account a homeowner’s ability to repay such loan or advance of credit.’; andCommentsClose CommentsPermalink





(C) in subsection (e), by inserting after the period at the end of the first sentence the following: ‘Any eligible homeowner who receives a grant or an advance of credit under this title may repay the loan in full, without penalty, by lump sum or by installment payments at any time before the loan becomes due and payable.’;CommentsClose CommentsPermalink





(3) in section 105 (12 U.S.C. 2704)--CommentsClose CommentsPermalink





(A) by striking subsection (b);CommentsClose CommentsPermalink





(B) in subsection (e)--CommentsClose CommentsPermalink





(i) by inserting ‘and emergency mortgage relief payments made under section 106’ after ‘insured under this section’; andCommentsClose CommentsPermalink





(ii) by striking ‘$1,500,000,000 at any one time’ and inserting ‘$3,000,000,000’;CommentsClose CommentsPermalink





(C) by redesignating subsections (c), (d), and (e) as subsections (b), (c), and (d), respectively; andCommentsClose CommentsPermalink





(D) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(e) The Secretary shall establish underwriting guidelines or procedures to allocate amounts made available for loans and advances insured under this section and for emergency relief payments made under section 106 based on the likelihood that a mortgagor will be able to resume mortgage payments, pursuant to the requirement under section 103(5).’;CommentsClose CommentsPermalink





(4) in section 107--CommentsClose CommentsPermalink





(A) by striking ‘(a)’; andCommentsClose CommentsPermalink





(B) by striking subsection (b);CommentsClose CommentsPermalink





(5) in section 108 (12 U.S.C. 2707), by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(d) Coverage of Existing Programs- The Secretary shall allow funds to be administered by a State that has an existing program that is determined by the Secretary to provide substantially similar assistance to homeowners. After such determination is made such State shall not be required to modify such program to comply with the provisions of this title.’;CommentsClose CommentsPermalink





(6) in section 109 (12 U.S.C. 2708)--CommentsClose CommentsPermalink





(A) in the section heading, by striking ‘AUTHORIZATION AND’;CommentsClose CommentsPermalink





(B) by striking subsection (a);CommentsClose CommentsPermalink





(C) by striking ‘(b)’; andCommentsClose CommentsPermalink





(D) by striking ‘1977’ and inserting ‘2011’;CommentsClose CommentsPermalink





(7) by striking sections 110, 111, and 113 (12 U.S.C. 2709, 2710, 2712); andCommentsClose CommentsPermalink





(8) by redesignating section 112 (12 U.S.C. 2711) as section 110.CommentsClose CommentsPermalink

SEC. 3. ADDITIONAL ASSISTANCE FOR NEIGHBORHOOD STABILIZATION PROGRAM.

Using the authority made available under sections 101(a) and 115(a) of division A of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a), 5225(a)), the Secretary of the Treasury shall transfer to the Secretary of Housing and Urban Development $1,000,000,000, and the Secretary of Housing and Urban Development shall use such amounts for assistance to States and units of general local government for the redevelopment of abandoned and foreclosed homes, in accordance with the same provisions applicable under the second undesignated paragraph under the heading ‘Community Planning and Development--Community Development Fund’ in title XII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 217) to amounts made available under such second undesignated paragraph, except as follows:CommentsClose CommentsPermalink





(1) Notwithstanding the matter of such second undesignated paragraph that precedes the first proviso, amounts made available by this section shall remain available until expended.CommentsClose CommentsPermalink





(2) The 3rd, 4th, 5th, 6th, 7th, and 15th provisos of such second undesignated paragraph shall not apply to amounts made available by this section.CommentsClose CommentsPermalink





(3) Amounts made available by this section shall be allocated based on a funding formula for such amounts established by the Secretary in accordance with section 2301(b) of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 note), except that--CommentsClose CommentsPermalink





(A) notwithstanding paragraph (2) of such section 2301(b), the formula shall be established not later than 30 days after the date of the enactment of this Act;CommentsClose CommentsPermalink





(B) the Secretary may not establish any minimum grant amount or size for grants to States;CommentsClose CommentsPermalink





(C) the Secretary may establish a minimum grant amount for direct allocations to units of general local government located within a State, which shall not exceed $1,000,000; andCommentsClose CommentsPermalink





(D) each State and local government receiving grant amounts shall establish procedures to create preferences for the development of affordable rental housing for properties assisted with amounts made available by this section.CommentsClose CommentsPermalink





(4) Paragraph (1) of section 2301(c) of the Housing and Economic Recovery Act of 2008 shall not apply to amounts made available by this section.CommentsClose CommentsPermalink





(5) Section 2302 of the Housing and Economic Recovery Act of 2008 shall not apply to amounts made available by this section.CommentsClose CommentsPermalink





(6) The fourth proviso from the end of such second undesignated paragraph shall be applied to amounts made available by this section by substituting ‘2013’ for ‘2012’.CommentsClose CommentsPermalink





(7) Notwithstanding section 2301(a) of the Housing and Economic Recovery Act of 2008, the term ‘State’ means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, and other territory or possession of the United States for purposes of this section and title III of division B of such Act, as applied to amounts made available by this section.CommentsClose CommentsPermalink





(8)(A) None of the amounts made available by this section shall be distributed to--CommentsClose CommentsPermalink





(i) any organization which has been convicted for a violation under Federal law relating to an election for Federal office; orCommentsClose CommentsPermalink





(ii) any organization which employs applicable individuals.CommentsClose CommentsPermalink





(B) In this paragraph, the term ‘applicable individual’ means an individual who--CommentsClose CommentsPermalink





(i) is--CommentsClose CommentsPermalink





(I) employed by the organization in a permanent or temporary capacity;CommentsClose CommentsPermalink





(II) contracted or retained by the organization; orCommentsClose CommentsPermalink





(III) acting on behalf of, or with the express or apparent authority of, the organization; andCommentsClose CommentsPermalink





(ii) has been convicted for a violation under Federal law relating to an election for Federal office.CommentsClose CommentsPermalink