[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [H.R. 9990 Introduced in House (IH)] <DOC> 118th CONGRESS 2d Session H. R. 9990 To increase access to affordable housing, reduce regulatory barriers, increase oversight, and assist the most vulnerable. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES October 15, 2024 Mr. Hill (for himself, Mr. Fitzgerald, Mr. Rose, Mr. Lawler, Mr. Nunn of Iowa, and Mr. Meuser) introduced the following bill; which was referred to the Committee on Financial Services _______________________________________________________________________ A BILL To increase access to affordable housing, reduce regulatory barriers, increase oversight, and assist the most vulnerable. 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 ``Renewing Opportunity in the American Dream to Housing Act'' or the ``ROAD to Housing Act''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--IMPROVING FINANCIAL LITERACY Sec. 101. Reforms to housing counseling and financial literacy programs. TITLE II--INCREASING ACCESS TO HOUSING Sec. 201. Rental assistance demonstration program. Sec. 202. Creating incentives for small dollar loan originators. Sec. 203. Small dollar mortgage points and fees. TITLE III--REGULATORY FLEXIBILITY Sec. 301. Authorization of Moving to Work Program. Sec. 302. Improving self-sufficiency of families in HUD-subsidized housing. Sec. 303. Updating the definition of manufactured home. TITLE IV--SERVING THE MOST VULNERABLE Sec. 401. Incentivizing local solutions to homelessness. TITLE V--PROMOTING OPPORTUNITY Sec. 501. Increasing housing in opportunity zones. TITLE VI--GOOD GOVERNANCE Sec. 601. Requiring annual testimony and oversight from housing regulators. Sec. 602. FHA reporting requirements on safety and soundness. Sec. 603. United States Interagency Council on Homelessness. Sec. 604. Neighborhood Reinvestment Corporation oversight. TITLE I--IMPROVING FINANCIAL LITERACY SEC. 101. REFORMS TO HOUSING COUNSELING AND FINANCIAL LITERACY PROGRAMS. (a) In General.--Section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x) is amended-- (1) in subsection (a)(4)-- (A) in subparagraph (B), by striking ``subparagraph (D)'' and inserting ``subparagraph (E)''; (B) in subparagraph (C), by striking ``adequate distribution'' and all that follows through ``foreclosure rates'' and inserting ``that the recipients are geographically diverse and include organizations that serve urban or rural areas''; (C) by redesignating subparagraphs (D), (E), and (F) as subparagraphs (E), (F), and (G), respectively; and (D) by inserting after subparagraph (C) the following: ``(D) Priority consideration.--In distributing assistance made available under this paragraph, the Secretary shall give priority consideration to entities serving areas with the highest home foreclosure rates.''. (2) in subsection (e), by adding at the end the following: ``(6) Considerations.-- ``(A) Covered mortgage loan defined.--In this paragraph, the term `covered mortgage loan' means any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4-families that is-- ``(i) insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.); or ``(ii) guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a, 1715z-13b). ``(B) Comparison.--For each counselor employed by an organization receiving assistance under this section, the Secretary shall consider the competence of the counselor compared to the default rate of all counseled borrowers of a covered mortgage loan in comparable markets, and such other factors as the Secretary determines appropriate to further the purposes of this section. ``(7) Suspension of certification.--If, based on the comparison required under paragraph (6)(B), the Secretary determines that a counselor lacks competence to provide counseling in the areas described in subsection (e)(2), the Secretary may-- ``(A) require retesting of the individual; or ``(B) suspend the certification under this subsection for the individual.''; and (3) in subsection (i)-- (A) by redesignating paragraph (3) as paragraph (4); and (B) by inserting after paragraph (2) the following: ``(3) Termination of assistance.-- ``(A) In general.--The Secretary may deny future covered assistance to an organization or entity receiving covered assistance if the Secretary determines that the organization or entity, or the individual through which the organization or entity provides such counseling, presents an unacceptable risk to families accessing counseling services or the programs under which covered mortgage loans (as defined in subsection (e)(6)(A)), which determination shall be-- ``(i) based on the comparison required under subsection (e)(6)(B); and ``(ii) made in accordance with regulations issued by the Secretary. ``(B) Notice.-- ``(i) In general.--The Secretary shall give an organization or entity receiving covered assistance at least 60 days prior written notice of any termination under this paragraph, and the termination shall take effect at the end of the notice period, unless the Secretary withdraws the termination notice or extends the notice period. ``(ii) Informal conference.--If requested in writing by the organization or entity within 30 days of the date of the notice described in clause (i), the organization or entity shall be entitled to an informal conference with the official authorized to issue termination notices on behalf of the Secretary (or a designee of that official) at which the organization or entity may present for consideration specific factors that the organization or entity believes were beyond the control of the organization or entity and that caused the excessive default rates.''. (b) Offering Foreclosure Mitigation Counseling.-- (1) Covered mortgage loan defined.--In this subsection, the term ``covered mortgage loan'' means any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4-families that is-- (A) insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.); (B) guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a, 1715z-13b); (C) made, guaranteed, or insured by the Department of Veterans Affairs; or (D) made, guaranteed, or insured by the Department of Agriculture. (2) Opportunity for borrowers.--A borrower with respect to a covered mortgage loan who is 60 days or more delinquent on payments for the covered mortgage loan shall be given an opportunity to participate in housing counseling. (3) Cost.--The cost of counseling for delinquent borrowers described in paragraph (2) with respect to a covered mortgage loan described in paragraph (1)(A) shall be paid for by the Mutual Mortgage Insurance Fund, as authorized under section 203(r)(4) of the National Housing Act (12 U.S.C. 1709(r)(4)). TITLE II--INCREASING ACCESS TO HOUSING SEC. 201. RENTAL ASSISTANCE DEMONSTRATION PROGRAM. The language under the heading ``Rental Assistance Demonstration'' in the Department of Housing and Urban Development Appropriations Act, 2012 (Public Law 112-55), is amended-- (1) by striking the second proviso; and (2) by striking the fourth proviso. SEC. 202. CREATING INCENTIVES FOR SMALL DOLLAR LOAN ORIGINATORS. (a) Small Dollar Mortgage Defined.--In this section, the term ``small dollar mortgage'' means a mortgage loan having an original principal obligation of not more than $70,000 that is-- (1) secured by real property designed for the occupancy of 1- to 4-families; and (2)(A) insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.); (B) made, guaranteed, or insured by the Department of Veterans Affairs; (C) made, guaranteed, or insured by the Department of Agriculture; or (D) eligible to be purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (b) Requirement To Update Regulations.--Not later than 270 days after the date of enactment of this Act, the Director of the Bureau of Consumer Financial Protection shall issue regulations to update part 1026 of title 12, Code of Federal Regulations (commonly referred to as ``Regulation Z'') to provide flexibilities for loan originator compensation that encourage origination of small dollar mortgages. SEC. 203. SMALL DOLLAR MORTGAGE POINTS AND FEES. (a) Definition.--In this section, the term ``small dollar mortgage'' means a mortgage with an original principal obligation of less than $70,000. (b) Amendments Required.--Not later than 270 days after the date of enactment of this Act, the Director of the Bureau of Consumer Financial Protection, in consultation with the Secretary of Housing and Urban Development and the Director of the Federal Housing Finance Agency, shall amend the limitations with respect to points and fees under section 1026.43 of title 12, Code of Federal Regulations, or any successor regulation, to encourage additional lending for small dollar mortgages. TITLE III--REGULATORY FLEXIBILITY SEC. 301. AUTHORIZATION OF MOVING TO WORK PROGRAM. (a) Program Reforms.--Section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note) is amended-- (1) in the section heading, by striking ``demonstration'' and inserting ``program''; (2) by striking subsection (a) and inserting the following: ``(a) Purposes.--The purposes of the program under this section are as follows: ``(1) Economic independence.--To develop measures to promote economic independence for families with children whose head of household is working, seeking work, or preparing for work, and for persons who are able to work, to obtain employment and become economically independent, by participating in job training, educational programs, or other supportive services and programs that assist in meeting such goal. ``(2) Flexibility and cost-effectiveness.--To give public housing agencies and the Secretary of Housing and Urban Development the flexibility to design and implement various approaches for providing and administering housing assistance that reduce cost and achieve greater cost effectiveness in Federal expenditures. ``(3) Housing choice.--To increase housing choices for low- income families.''; (3) in subsection (b)-- (A) by striking ``(b) Program Authority.--The Secretary'' and inserting the following: ``(b) Program Authority.-- ``(1) In general.--The Secretary''; (B) in the first sentence, by striking ``conduct a demonstration program'' and all that follows through ``Indian housing program and'' and inserting ``carry out a program under this section under which public housing agencies administering the public housing program or''; (C) by inserting after the first sentence the following: ``There shall be no limitation on the number of public housing agencies that may participate in the program under this section.''; (D) by striking ``The Secretary shall'' and all that follows through ``demonstration.'' and inserting the following: ``(2) Identification of replicable models.--The Secretary shall provide training and technical assistance under the program and conduct detailed evaluations of various agencies to identify replicable program models promoting the purposes of the program.''; (E) by striking ``Under the demonstration'' and inserting the following: ``(3) Combination of assistance.--Under the program under this section''; and (F) by striking ``operating assistance provided under section 9 of the United States Housing Act of 1937, modernization assistance provided under section 14'' and inserting ``amounts provided to the agency from the Operating Fund under section 9(e) of the United States Housing Act of 1937, amounts provided to the agency from the Capital Fund under section 9(d)''; (4) in subsection (c)-- (A) in the matter preceding paragraph (1), by striking ``demonstration'' and inserting ``program under this section''; (B) in paragraph (1), by striking ``9, and 14'' and inserting ``9(d), and 9(e)''; (C) in paragraph (3)-- (i) in subparagraph (A), by striking ``demonstration''; (ii) in subparagraph (B)-- (I) by striking ``self- sufficiency'' and inserting ``economic independence''; and (II) by striking ``purpose of this demonstration'' and inserting ``purpose of the program under subsection (a)(1)''; (iii) in subparagraph (D), by striking ``demonstration'' and inserting ``program under this section;''; (iv) in subparagraph (E), by striking ``demonstration program'' and inserting ``program under this section''; (v) by redesignating subparagraphs (A), (B), (C), (D), and (E) as subparagraphs (B), (C), (D), (G), and (H), respectively; (vi) by inserting before subparagraph (B), as so redesignated, the following: ``(A) actions to be taken under the proposed program to achieve the purposes of the program under paragraphs (1), (2), and (3) of subsection (a);''; and (vii) by inserting after subparagraph (D), as so redesignated, the following: ``(E) hardship exceptions consistent with the purposes under subsection (a) under which tenants may be temporarily exempted from compliance with the program operated by the agency in the event of extenuating circumstances preventing such compliance and a process that provides tenants with recourse to a speedy determination regarding such an exception and makes available the contents and results of such a determination available to the public and the board of directors or other governing body on request of the tenant concerned and the director or other head official of the agency; ``(F) providing assisted families and participants in the program operated by the agency with an informal administrative hearing or grievance process, prior to any eviction or termination of assistance, which process shall make the content and determination of the hearing available to the public and the board of directors or other governing body on request of the tenant concerned and the director or other head official of the agency;''; and (D) in paragraph (4), by striking ``demonstration'' and inserting ``proposed program''; (5) in subsection (d)-- (A) by striking ``(d) Selection.--In selecting among applications, the Secretary shall take into account the potential of each agency to plan and carry out a program under the demonstration'' and inserting the following: ``(d) Applications for Participation.-- ``(1) Submission; standards for participation.--The