[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9662 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9662
To establish an independent entity within the Department of Housing and
Urban Development to acquire and maintain distressed real estate to
stabilize communities and increase the supply of affordable housing,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2024
Ms. Ocasio-Cortez (for herself, Ms. Adams, Ms. Balint, Mr. Bowman, Ms.
Bush, Mr. Carter of Louisiana, Mr. Casar, Mrs. Cherfilus-McCormick, Mr.
Frost, Mr. Garcia of Illinois, Ms. Garcia of Texas, Mr. Robert Garcia
of California, Mr. Gomez, Mr. Grijalva, Ms. Jayapal, Mr. Johnson of
Georgia, Ms. Lee of Pennsylvania, Ms. Lee of California, Mr. McGovern,
Mr. Mullin, Ms. Norton, Ms. Omar, Mrs. Peltola, Ms. Pressley, Mrs.
Ramirez, Mr. Raskin, Ms. Schakowsky, Ms. Stansbury, Ms. Tlaib, Mr.
Vargas, Ms. Velazquez, Mrs. Watson Coleman, Ms. Wild, Ms. Crockett, Mr.
Davis of Illinois, and Ms. Tokuda) introduced the following bill; which
was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To establish an independent entity within the Department of Housing and
Urban Development to acquire and maintain distressed real estate to
stabilize communities and increase the supply of affordable housing,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Homes Act of
2024''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Establishment of authority.
Sec. 5. Purposes of the authority.
Sec. 6. Powers and duties.
Sec. 7. Requirements for social housing providers.
Sec. 8. Labor and Buy America provisions.
Sec. 9. Duty to serve.
Sec. 10. Community and tenant opportunity To purchase multifamily
rental properties.
Sec. 11. Maximum contingent liability.
Sec. 12. Authority funds.
Sec. 13. Authorization of appropriations for Authority.
Sec. 14. Authorization of appropriations for public housing backlog.
Sec. 15. Repeal of Faircloth Amendment.
Sec. 16. Miscellaneous.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that the national protracted housing
crisis has existed for decades and only continues to worsen, with the
lack of quality and affordable housing affecting all but the wealthiest
households.
(b) Purposes.--The purposes of this Act are--
(1) to establish a robust public entity to develop a stock
of permanently affordable, quality, publicly financed, and
climate resilient housing that is shielded from market
speculation; and
(2) to stabilize communities and improve general welfare by
maintaining a housing system, as an alternative to market-rate
housing, that offers affordability, fair housing choice, and
quality to all families that are unable to afford market rents,
including families in underserved communities and families that
have experienced historical legacies of exclusion.
SEC. 3. DEFINITIONS.
(a) In General.--In this Act:
(1) Affordable housing.--The term ``affordable housing''
means housing that complies with the standards established
under section 7(c).
(2) At risk of homelessness.--The term ``at risk of
homelessness'' has the meaning given the term in section 401 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360).
(3) Authority.--The term ``Authority'' means the Housing
Development Authority established under section 4(a).
(4) Board.--The term ``Board'' means the Board of Directors
of the Authority established under section 4(c)(1).
(5) Community land trust.--The term ``community land
trust'' means a nonprofit entity or a State or local government
or instrumentality thereof that--
(A) is not sponsored by a for-profit organization;
(B) has as a primary purpose the provision and
maintenance of housing that provides long-term
affordability for low-income families and moderate-
income families;
(C) provides housing described in subparagraph (B)
using a ground lease, deed covenant, or other similar
legally enforceable measure, as determined by the
Authority, that--
(i) keeps the housing permanently
affordable to low-income families and moderate-
income families; and
(ii) enables low-income families and
moderate-income families to purchase the
housing for homeownership; and
(D) maintains preemptive purchase options to
purchase the property so the housing remains affordable
to low-income families and moderate-income families.
(6) Community-led development organization.--The term
``community-led development organization'' means a nonprofit
organization comprised of or acting on behalf of individuals
seeking to establish, develop, maintain, and reside in a
resident-owned multifamily housing building that includes
shared community amenities, whether through the development of
a new building or the rehabilitation or conversion of an
existing building.
(7) Consumer price index.--The term ``Consumer Price
Index'' means the most recent Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics of
the Department of Labor.
(8) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
(9) Distressed.--The term ``distressed'' means, with
respect to an asset, that--
(A) the obligor thereof is subject to a bankruptcy,
insolvency, liquidation, or other similar action or
proceeding;
(B) the obligor thereof has failed to make any
payment of principal or interest with respect to the
asset when due (whether at scheduled maturity or any
accelerated date of maturity or any other date fixed
for payment or prepayment thereof or otherwise) beyond
any period of grace provided with respect thereto;
(C) the asset is classified by the lender as
``nonperforming'' pursuant to generally accepted
accounting principles; or
(D) the asset is in a physically distressed
condition, as shall be defined by the Authority.
(10) Eligible entity.--The term ``eligible entity'' means
an entity described in subparagraph (A) of section 6(c)(2),
subject to subparagraph (B) of that section.
(11) Family.--The term ``family'' includes an individual.
(12) Homeless.--The term ``homeless'' has the meaning given
the term in section 103 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11302).
(13) Income.--The term ``income'' has such meaning as
provided by the Secretary that is consistent with regulations
issued by the Secretary in implementing section 3(b) of the
United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(14) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term ``Indian tribe'' in section 4 of the
Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4103).
(15) Permanent affordability.--The term ``permanent
affordability'' means a designation for a residential property,
the affordability of which is preserved in perpetuity through--
(A) a real property interest held by the Authority;
and
(B) the inclusion of a permanently affordable
social housing use restriction in the deed to the land
and, where applicable, any ground lease to the
improvements on the land.
(16) Permanently affordable social housing; social
housing.--
(A) In general.--The term ``permanently affordable
social housing'' or ``social housing'' means housing,
including newly constructed, acquired, rehabilitated,
or renovated housing, that meets the following
requirements:
(i) Social ownership.--The housing is owned
by the Authority or an eligible entity.
(ii) Permanent stability.--The housing is--
(I) protected from for-profit
investors and the speculative market;
and
(II) subject to restrictions that
ensure that it is never resold for
excessive profit, as determined by the
Authority.
(iii) Permanent affordability.--The housing
meets the requirements of paragraph (15) and,
in the aggregate, is permanently affordable to
families at a range of income levels, including
extremely low-income families and no-income
families.
(iv) Community control.--The housing is
developed, owned, managed, and operated in a
way that is democratically accountable to
residents, the community, and the public, with
residents having a direct role in management
and decision-making, such as through a tenant
organization.
(v) Equitable.--The housing promotes racial
and gender equity and prevents displacement of
communities of color.
(vi) Sustainability.--The housing is built,
renovated, or rehabilitated using construction
methods and materials that--
(I) prioritize energy efficiency,
the long-term safety and health of
occupants, and disaster resilience; and
(II) are guided by an evidence-
based approach designed to reduce
pollution burdens and climate
volatility.
(vii) High quality and accessible.--The
housing is of high quality and accessible to
all people regardless of age, physical need, or
other factors.
(viii) Tenant security.--The housing
provides renter protections to residents.
(B) Public housing.--The Authority may provide any
funding or support to public housing that is necessary
for the public housing to meet the requirements under
subparagraph (A), consistent with the rules and
regulations that are otherwise applicable to public
housing.
(17) Permanently affordable social housing use
restriction.--The term ``permanently affordable social housing
use restriction'', with respect to real property, means a use
restriction, established by the Secretary by rulemaking after
notice and an opportunity for public comment, that ensures that
the property complies with the requirements under subparagraph
(A) of the definition of ``permanently affordable social
housing''.
(18) Public housing.--The term ``public housing'' means
housing assisted under section 9 of the United States Housing
Act of 1937 (42 U.S.C. 1437g).
(19) Public housing agency.--The term ``public housing
agency'' has the meaning given the term in section 3(b) of the
United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(20) Resident-owned cooperative.--The term ``resident-owned
cooperative'' means a nonprofit entity that supports shared-
equity homeownership that--
(A) has as a primary purpose the provision and
maintenance of owner-occupied housing that provides
long-term affordability for low-income families and
moderate-income families;
(B) provides housing described in subparagraph (A)
using a limited equity cooperative agreement, or other
similar legally enforceable measure, as determined by
the Authority, that--
(i) keeps the housing permanently
affordable to low-income families and moderate-
income families; and
(ii) enables low-income families and
moderate-income families to purchase the
housing for homeownership; and
(C) maintains preemptive purchase options to
purchase the property so the housing remains affordable
to low-income families and moderate-income families.
(21) Secretary.--The term ``Secretary'', except as
otherwise provided, means the Secretary of Housing and Urban
Development.
(22) Short sale.--The term ``short sale'' means a sale of a
residential real property that is subject to a mortgage, deed
or trust, or other security interest that secures a residential
mortgage loan that--
(A) will result in proceeds in an amount that is
less than the remaining amount due under the mortgage
loan; and
(B) requires authorization by any securitization
vehicle or other investment vehicle or holder of the
mortgage loan, or the servicer acting on behalf of such
a vehicle or holder.
(23) Supportive services.--The term ``supportive services''
means services that address the needs of persons served by a
project, including--
(A) provision of tenant organizing technical
assistance;
(B) establishment and operation of a child care
services program;
(C) establishment and operation of an employment
assistance program;
(D) provision of outpatient health services, food,
and case management;
(E) provision of mental health services and victim
services;
(F) provision of assistance in obtaining other
Federal, State, and local assistance available for
residents of the project, including mental health
benefits, employment counseling, and medical
assistance;
(G) provision of transportation services that
facilitate the ability of an individual to obtain and
maintain employment and access health care;
(H) provision of services for older adults;
(I) security services; and
(J) other services necessary to maintain housing
and sustain a quality housing community.
(24) Tenant organization.--The term ``tenant
organization'', with respect to rental housing means a tenant-
led organization--
(A) that seeks to--
(i) promote the collective interests and
rights of the tenants;
(ii) improve housing conditions;
(iii) build renter authority; and
(iv) advocate for policy changes for the
benefit of tenants; and
(B) which may be organized with respect to--
(i) housing sharing the same landlord or
building; or
(ii) housing having different landlords or
buildings.
(25) Tribally designated housing entity.--The term
``tribally designated housing entity'' has the meaning given
the term in section 4 of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C. 4103).
(26) Underserved community.--The term ``underserved
community'' means a population sharing a particular
characteristic, or a geographic community, that--
(A) has been systematically denied a full
opportunity to participate in aspects of economic,
social, and civic life; and
(B) may include--
(i) Black, Latino, and Indigenous and
Native American persons, Asian Americans and
Pacific Islanders, and other persons of color;
(ii) members of religious minorities;
(iii) lesbian, gay, bisexual, transgender,
and queer (commonly known as ``LGBTQ+'')
persons;
(iv) persons with disabilities;
(v) persons who live in rural areas; and
(vi) persons otherwise adversely affected
by persistent poverty or inequality.
(b) Income Levels.--
(1) In general.--In this Act, subject to paragraph (2)--
(A) the term ``moderate-income family'' means a
family that satisfies the definition of the term
``persons of moderate income'' in section 102(a) of the
Housing and Community Development Act of 1974 (42
U.S.C. 5302(a));
(B) the term ``low-income family'' means a family
that satisfies the definition of the term ``persons of
low income'' in section 102(a) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302(a));
and
(C) the term ``extremely low-income family'' means
a family that satisfies the definition of the term
``extremely low-income families'