S 2455
110th CONGRESS
1st Session
S. 2455
To provide $1,000,000,000 in emergency Community Development
Block Grant funding for necessary expenses related to the impact of
foreclosures on communities.
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Community Foreclosure Assistance Act of
2007'.
SEC. 2. ADDITIONAL EMERGENCY CDBG FUNDING.
(a) 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.)--
(1) for necessary expenses related to the impact of housing foreclosures,
and other related economic and community development activities; and
(2) to provide foreclosure-based rental assistance for individual
renters in the form of relocation assistance.
(1) 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.
(2) 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)).
SEC. 3. 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--
(1) `25 per centum' for `15 per centum' each place that term appears;
and
(2) `25 percent' for `15 percent' each place that term appears.
SEC. 4. 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.
SEC. 5. PLANS AND REPORTS.
(a) 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.
(b) 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.
SEC. 6. WAIVERS.
(a) 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.
(b) 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.
(c) 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.
(d) Other Waiver Provisions-
(1) 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.
(2) 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).
(3) 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.
SEC. 7. 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.
SEC. 8. GAO AUDIT.
The Comptroller General of the United States shall--
(1) conduct an audit of the expenditure of all funds appropriated
under this Act in accordance with generally accepted government auditing
standards; and
(2) 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.
SEC. 9. 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--
(1) the use of funds appropriated or otherwise made available under
this Act, including--
(A) the number of households receiving counseling and rental assistance;
(B) the outcomes of such assistance activities;
(C) the names of those certified housing counseling service providing
counseling assistance pursuant to this Act; and
(D) such other information as the Secretary may deem appropriate;
and
(2) all steps taken by the Secretary to prevent fraud and abuse of
such funds.
END
