S 2162 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 2162CommentsClose CommentsPermalink

To provide for the redevelopment of abandoned and foreclosed-upon properties and for the stabilization of affected neighborhoods, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

March 6, 2012CommentsClose CommentsPermalink

Mr. REED (for himself, Mr. DURBIN, Mr. SCHUMER, Mr. LEAHY, Mr. BROWN of Ohio, Mr. WHITEHOUSE, Mr. MERKLEY, Mr. BEGICH, Mr. FRANKEN, Mr. BLUMENTHAL, and Mr. AKAKA) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To provide for the redevelopment of abandoned and foreclosed-upon properties and for the stabilization of affected neighborhoods, 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 ‘Project Rebuild Act’.CommentsClose CommentsPermalink

SEC. 2. PROJECT REBUILD.

(a) Direct Appropriations- There is appropriated, out of any money in the Treasury not otherwise appropriated, $15,000,000,000, to remain available until September 30, 2016, for assistance to eligible entities including States and units of general local government (as such terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)), and qualified nonprofit organizations, businesses or consortia of eligible entities for the redevelopment of abandoned and foreclosed-upon properties and for the stabilization of affected neighborhoods.CommentsClose CommentsPermalink





(b) Allocation of Appropriated Amounts-CommentsClose CommentsPermalink





(1) IN GENERAL- Of the amounts appropriated, two-thirds shall be allocated to States and units of general local government based on a funding formula established by the Secretary of Housing and Urban Development (in this section referred to as the ‘Secretary’). Of the amounts appropriated, one-third shall be distributed competitively to eligible entities.CommentsClose CommentsPermalink





(2) FORMULA TO BE DEVISED SWIFTLY- The funding formula required under paragraph (1) shall be established and the Secretary shall announce formula funding allocations, not later than 30 days after the date of the enactment of this Act.CommentsClose CommentsPermalink





(3) FORMULA CRITERIA- The Secretary may establish a minimum grant size, and the funding formula required under paragraph (1) shall ensure that any amounts appropriated or otherwise made available under this section are allocated to States and units of general local government with the greatest need, as such need is determined in the discretion of the Secretary based on--CommentsClose CommentsPermalink





(A) the number and percentage of home foreclosures in each State or unit of general local government;CommentsClose CommentsPermalink





(B) the number and percentage of homes in default or delinquency in each State or unit of general local government; andCommentsClose CommentsPermalink





(C) other factors such as established program designs, grantee capacity and performance, number and percentage of commercial foreclosures, overall economic conditions, and other market needs data, as determined by the Secretary.CommentsClose CommentsPermalink





(4) COMPETITION CRITERIA-CommentsClose CommentsPermalink





(A) ELIGIBLE ENTITIES- For the funds distributed competitively, eligible entities shall be States, units of general local government, nonprofit entities, for-profit entities, and consortia of eligible entities that demonstrate capacity to use funding within the period of this program.CommentsClose CommentsPermalink





(B) AWARD CRITERIA- In selecting grantees, the Secretary shall ensure that grantees are in areas with the greatest number and percentage of residential and commercial foreclosures and other market needs data, as determined by the Secretary. Additional award criteria shall include demonstrated grantee capacity to execute projects involving acquisition and rehabilitation or redevelopment of foreclosed residential and commercial property and neighborhood stabilization, leverage, knowledge of market conditions and of effective stabilization activities to address identified conditions, and any additional factors determined by the Secretary.CommentsClose CommentsPermalink





(C) GRANT SIZE- The Secretary may establish a minimum grant size.CommentsClose CommentsPermalink





(D) PUBLICATION OF CRITERIA; APPLICATION DUE DATE- The Secretary shall publish competition criteria for any grants awarded under this section not later than 60 days after the appropriation of funds, and applications shall be due to the Secretary within 120 days.CommentsClose CommentsPermalink





(c) Use of Funds-CommentsClose CommentsPermalink





(1) OBLIGATION AND EXPENDITURE- The Secretary shall obligate all formula funding within 120 days of the date of the enactment of this Act and all competitive grant funding within 180 days of such enactment date. Any eligible entity that receives amounts pursuant to this section shall expend all funds allocated to it within three years of the date the funds become available to the grantee for obligation. Furthermore, the Secretary shall by Notice establish intermediate expenditure benchmarks at the one and two year dates from the date the funds become available to the grantee for obligation.CommentsClose CommentsPermalink





(2) PRIORITIES-CommentsClose CommentsPermalink





(A) JOB CREATION- Each grantee or eligible entity shall describe how its proposed use of funds will prioritize job creation, and secondly, will address goals to stabilize neighborhoods, reduce vacancy, or increase or stabilize residential and commercial property values.CommentsClose CommentsPermalink





(B) TARGETING- Any State or unit of general local government that receives formula amounts pursuant to this section shall, in distributing and targeting such amounts, give priority emphasis and consideration to those metropolitan areas, metropolitan cities, urban areas, rural areas, low- and moderate-income areas, and other areas with the greatest need, including those--CommentsClose CommentsPermalink





(i) with the greatest percentage of home foreclosures;CommentsClose CommentsPermalink





(ii) identified as likely to face a significant rise in the rate of residential or commercial foreclosures; andCommentsClose CommentsPermalink





(iii) with a higher than national average unemployment rate.CommentsClose CommentsPermalink





In addition, such priority emphasis and consideration may be given to such areas that have lost occupiable housing stock within the 3-year period ending with the date of the enactment of this Act due to the effects of presidentially declared disasters.CommentsClose CommentsPermalink





(C) LEVERAGE- Each grantee or eligible entity shall describe how its proposed use of funds will leverage private funds.CommentsClose CommentsPermalink





(3) ELIGIBLE USES- Amounts made available under this section may be used to--CommentsClose CommentsPermalink





(A) establish financing mechanisms for the purchase and redevelopment of abandoned and foreclosed-upon properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers;CommentsClose CommentsPermalink





(B) purchase and rehabilitate properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such properties;CommentsClose CommentsPermalink





(C) establish and operate land banks for properties that have been abandoned, demolished, severely damaged by presidentially declared disasters, or foreclosed upon;CommentsClose CommentsPermalink





(D) demolish blighted structures;CommentsClose CommentsPermalink





(E) redevelop abandoned, foreclosed, demolished, or vacant properties; andCommentsClose CommentsPermalink





(F) engage in other activities, as determined by the Secretary through notice, that are consistent with the goals of creating jobs, stabilizing neighborhoods, reducing vacancy, increasing or stabilizing residential and commercial property values, and providing assistance to homeowners and landlords recovering after presidentially declared disasters.CommentsClose CommentsPermalink





(d) Limitations-CommentsClose CommentsPermalink





(1) ON PURCHASES- Any purchase of a property under this section shall be at a price not to exceed its current market value, taking into account its current condition.CommentsClose CommentsPermalink





(2) REHABILITATION- Any rehabilitation of an eligible property under this section shall be to the extent necessary to comply with applicable laws, and other requirements relating to safety, quality, marketability, and habitability, in order to sell, rent, or redevelop such properties or provide a renewable energy source or sources for such properties.CommentsClose CommentsPermalink





(3) SALE OF HOMES- If an abandoned or foreclosed-upon home is purchased, redeveloped, or otherwise sold to an individual as a primary residence, then such sale shall be in an amount equal to or less than the cost to acquire and redevelop or rehabilitate such home or property up to a decent, safe, marketable, and habitable condition.CommentsClose CommentsPermalink





(4) ON DEMOLITION OF PUBLIC HOUSING- Public housing, as defined in section 3(b)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(1)), may not be demolished with funds under this section.CommentsClose CommentsPermalink





(5) ON DEMOLITION ACTIVITIES- No more than 10 percent of any grant made under this section may be used for demolition activities unless the Secretary determines that such use represents an appropriate response to local market conditions or is necessary as a result of a presidentially declared disaster.CommentsClose CommentsPermalink





(6) ON USE OF FUNDS FOR NON-RESIDENTIAL PROPERTY- No more than 30 percent of any grant made under this section may be used for eligible activities under subparagraphs (A), (B), and (E) of subsection (c)(3) that will not result in residential use of the property involved unless the Secretary determines that such use represents an appropriate response to local market conditions.CommentsClose CommentsPermalink





(7) GENERAL USE OF FUNDS- Each formula and competitive grantee is required to ensure that all use of formula or competitive funds by the grantee are properly underwritten and reviewed in order to prevent fraud, waste, and abuse.CommentsClose CommentsPermalink





(e) Rules of Construction-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided by this section, amounts appropriated, revenues generated, or amounts otherwise made available to eligible entities under this section shall be treated as though such funds were community development block grant funds under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.).CommentsClose CommentsPermalink





(2) NO MATCH- No matching funds shall be required in order for an eligible entity to receive any amounts under this section.CommentsClose CommentsPermalink





(3) TENANT PROTECTIONS- An eligible entity receiving a grant under this section shall comply with the 14th, 17th, 18th, 19th, 20th, 21st, 22nd and 23rd provisos in 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. 218-19), as amended by section 1497(b)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203, 124 Stat. 2211).CommentsClose CommentsPermalink





(4) VICINITY HIRING- An eligible entity receiving a grant under this section shall comply with section 1497(a)(8) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203, 124 Stat. 2210).CommentsClose CommentsPermalink





(5) BUY AMERICAN- Section 1605 of title XVI of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5, 123 Stat. 303) shall apply to amounts appropriated, revenues generated, and amounts otherwise made available to eligible entities under this section.CommentsClose CommentsPermalink





(f) Authority To Specify Alternative Requirements-CommentsClose CommentsPermalink





(1) IN GENERAL- In administering the program under this section, the Secretary may specify alternative requirements to any provision under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) or under title I of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) (except for those provisions in these laws related to fair housing, nondiscrimination, labor standards, and the environment) for the purpose of expediting and facilitating the use of funds under this section.CommentsClose CommentsPermalink





(2) NOTICE- The Secretary shall provide written notice of intent to the public via Internet to exercise the authority to specify alternative requirements under paragraph (1).CommentsClose CommentsPermalink





(3) LOW AND MODERATE INCOME REQUIREMENT-CommentsClose CommentsPermalink





(A) IN GENERAL- Notwithstanding the authority of the Secretary under paragraph (1)--CommentsClose CommentsPermalink





(i) all of the formula and competitive grantee funds appropriated or otherwise made available under this section shall be used with respect to individuals and families whose income does not exceed 120 percent of area median income; andCommentsClose CommentsPermalink





(ii) not less than 25 percent of the formula and competitive grantee funds appropriated or otherwise made available under this section shall be used for the purchase and redevelopment of eligible properties that will be used to house individuals or families whose incomes do not exceed 50 percent of area median income.CommentsClose CommentsPermalink





(B) RECURRENT REQUIREMENT- The Secretary shall, by rule or order, ensure, to the maximum extent practicable and for the longest feasible term, that the sale, rental, or redevelopment of abandoned and foreclosed-upon homes and residential properties under this section remain affordable to individuals or families described in subparagraph (A).CommentsClose CommentsPermalink





(g) Nationwide Distribution of Resources- Notwithstanding any other provision of this section, each State shall receive not less than $20,000,000 of formula funds.CommentsClose CommentsPermalink





(h) Limitation on Use of Funds With Respect to Eminent Domain- No State or unit of general local government may use any amounts received pursuant to this section to fund any project that seeks to use the power of eminent domain, unless eminent domain is employed only for a public use, which shall not be construed to include economic development that primarily benefits private entities.CommentsClose CommentsPermalink





(i) Limitation on Distribution of Funds-CommentsClose CommentsPermalink





(1) IN GENERAL- None of the funds made available under this section shall be distributed to--CommentsClose CommentsPermalink





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





(B) an organization which employs applicable individuals.CommentsClose CommentsPermalink





(2) APPLICABLE INDIVIDUALS DEFINED- In this section, the term ‘applicable individual’ means an individual who--CommentsClose CommentsPermalink





(A) 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





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





(j) Rental Housing Preferences- Each State and local government receiving formula amounts shall establish procedures to create preferences for the development of affordable rental housing.CommentsClose CommentsPermalink





(k) Job Creation- If a grantee chooses to use funds to create jobs by establishing and operating a program to maintain eligible neighborhood properties, not more than 10 percent of any grant may be used for that purpose.CommentsClose CommentsPermalink





(l) Program Support and Capacity Building- The Secretary may use an overall amount up to 0.75 percent of the funds appropriated for capacity building of and support for eligible entities and grantees undertaking neighborhood stabilization programs, staffing, training, technical assistance, technology, monitoring, travel, enforcement, research and evaluation activities. In addition--CommentsClose CommentsPermalink





(1) funds set aside for the purposes of this subsection shall remain available until September 30, 2016;CommentsClose CommentsPermalink





(2) any funds made available under this subsection and used by the Secretary for personnel, training, or other administrative expenses related to administering funding under this subsection shall be transferred to ‘Program Office Salaries and Expenses, Community Planning and Development’;CommentsClose CommentsPermalink





(3) any funds made available under this subsection and used by the Secretary for technology shall be transferred to ‘Working Capital Fund’; andCommentsClose CommentsPermalink





(4) an amount up to 0.10 percent of the funds appropriated shall be transferred to the Office of Inspector General, Department of Housing and Urban Development and such overall amount described in this subsection shall be reduced by the amount specified in this paragraph.CommentsClose CommentsPermalink





(m) Enforcement and Prevention of Fraud and Abuse- The Secretary shall establish and implement procedures to prevent fraud and abuse of funds under this section, and shall impose a requirement that grantees have an internal auditor to continuously monitor grantee performance to prevent fraud, waste, and abuse. Grantees shall provide the Secretary and citizens with quarterly progress reports. The Secretary shall recapture funds from formula and competitive grantees that do not expend 100 percent of allocated funds within 3 years of the date that funds become available, and from underperforming or mismanaged grantees, and shall re-allocate those funds by formula to target areas with the greatest need, as determined by the Secretary through notice. The Secretary may take an alternative sanctions action only upon determining that such action is necessary to achieve program goals in a timely manner.CommentsClose CommentsPermalink





(n) Policies and Procedures for Grants- The Secretary of Housing and Urban Development shall to the extent feasible conform policies and procedures for grants made under this section to the policies and procedures already in place for the grants made under section 2301 of the Housing and Economic Recovery Act of 2008 (Public Law 110-289, 122 Stat. 2850); title XII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5, 123 Stat. 217); or section 1497 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203, 124 Stat. 2209).CommentsClose CommentsPermalink

SEC. 3. WAGE RATE AND EMPLOYMENT PROTECTION REQUIREMENTS.

Amounts appropriated, revenues generated, and amounts otherwise made available under this Act shall be subject to the requirements of section 110 of the Housing and Community Development Act of 1974 (42 U.S.C. 5310) or to a waiver thereof under section 107(e)(2) of such Act (42 U.S.C. 5307(e)(2)).CommentsClose CommentsPermalink