,i #aacth ,,congress #ast ,session ,h4 ,r4 #fef ,,in ,,the ,,house ,,of ,,representatives ,february #ac1 #bjac ,mr4 ,joyce 7for himself1 ,ms4 ,fudge1 and ,ms4 ,kaptur7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to provide #d1jjj1jjj1jjj in new funding through bonding to empower ,states to undertake significant residential and commercial structure demolition projects in urban and other targeted areas1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,restore our ,neighborhoods ,act of #bjac4 #b4 ,credit to holders of qualified urban demolition bonds 7a7 ,in general ,subpart ,i of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ed;,g4 ,qualified urban demolition bonds 7a7 ,qualified urban demolition bond ,for purposes of this subchapter1 the term qualified urban demolition bond means any bond issued as part of an issue if-- 7#a7 #ajj percent of the available project proceeds of such issue are to be used for expenditures incurred after the date of the enactment of this section for #a or more qualified projects pursuant to an allocation of such proceeds to such project or projects by a qualified issuer1 7#b7 the bond is issued by a qualified issuer and is in registered form 7within the meaning of section #adi7;a771 7#c7 the qualified issuer designates such bond for purposes of this section1 7#d7 the term of each bond which is part of such issue does not exceed #cj years1 7#e7 such bond is issued during the #e-year period beginning on the date of the enactment of this section1 and 7#f7 the issue meets the requirements of subsection 7e74 7b7 ,limitation on amount of bonds designated 7#a7 ,in general ,the maximum aggregate face amount of bonds which may be designated under subsection 7a7 by a ,state shall not exceed the qualified urban demolition bond limitation amount allocated to such ,state under paragraph 7#c74 7#b7 ,national qualified urban demolition bond limitation amount ,there is a national qualified urban demolition bond limitation amount of #d1jjj1jjj1jjj4 7#c7 ,allocation to ,states 7,a7 ,in general ,the national qualified urban demolition bond limitation shall be allocated by the ,secretary among the ,states on the following basis and in such manner so as to ensure that all of such limitation amount is allocated before the date which is #c months after the date of the enactment of this section3 7i7 #b1jjj1jjj1jjj to be allocated among the qualified ,states in accordance with subparagraph 7,b71 and 7ii7 #b1jjj1jjj1jjj to be equally allocated among all ,states4 7,b7 ,formula for allocation among qualified ,states 7i7 ,in general ,the amount allocated to a ,state under subparagraph 7,a77i7 shall be an amount equal to the amount specified in subparagraph 7,a77i7 multiplied by the ratio that the nonseasonal vacant properties in the ,state bears to the total nonseasonal vacant properties of all qualified ,states4 7ii7 ,nonseasonal vacant properties ,for purposes of clause 7i71 nonseasonal vacant properties shall be determined by the ,secretary on the basis of #bjaj decennial census4 7#d7 ,allocation of limitation amount by ,states ,the limitation amount allocated to a ,state under paragraph 7#c7 shall be allocated by the ,state to qualified issuers within such ,state4 7#e7 ,reallocation of unused issuance limitation ,if at the end of the #b-year period beginning on the date of the enactment of this section1 the national qualified urban demolition bond limitation amount under paragraph 7#b7 exceeds the total amount of qualified urban demolition bonds issued during such period1 such excess shall be reallocated among the qualified ,states in such manner as the ,secretary determines appropriate so as to ensure to the extent possible that all of such limitation amount is issued in the form of qualified urban demolition bonds before the end of the #e-year period beginning on the date of the enactment of this section4 7c7 ,qualified project ,for purposes of this section1 the term qualified project means the direct and indirect demolition costs properly attributable to any project proposed and approved by a qualified issuer1 but does not include costs of operation or maintenance with respect to such project4 7d7 ,applicable credit rate ,in lieu of section #ed;,a7b77#c71 for purposes of section #ed;,a7b77#b71 the applicable credit rate with respect to an issue under this section is the rate equal to an average market yield 7as of the day before the date of sale of the issue7 on outstanding long-term corporate debt obligations 7determined in such manner as the ,secretary prescribes74 7e7 ,special rules relating to expenditures ,in lieu of subparagraphs 7,a7 and 7,b7 of section #ed;,a7d7-- 7#a7 ,in general ,an issue shall be treated as meeting the requirements of this subsection if1 as of the date of issuance1 the qualified issuer reasonably expects-- 7,a7 at least #ajj percent of the available project proceeds of such issue are to be spent for #a or more qualified projects within the #e-year expenditure period beginning on such date1 and 7,b7 to incur a binding commitment with a third party to spend at least #aj percent of the proceeds of such issue with respect to such projects within the #ab-month period beginning on such date4 7#b7 ,rules regarding continuing compliance after #e-year determination ,to the extent that less than #ajj percent of the available project proceeds of such issue are expended by the close of the #e-year expenditure period beginning on the date of issuance1 the qualified issuer shall redeem all of the nonqualified bonds within #ij days after the end of such period4 ,for purposes of this paragraph1 the amount of the nonqualified bonds required to be redeemed shall be determined in the same manner as under section #adb4 7f7 ,recapture of portion of credit where cessation of compliance ,if any bond which when issued purported to be a qualified urban demolition bond ceases to be such a bond1 the qualified issuer shall pay to the ,united ,states 7at the time required by the ,secretary7 an amount equal to the sum of-- 7#a7 the aggregate of the credits allowable under section #ed;,a with respect to such bond 7determined without regard to section #ed;,a7c77 for taxable years ending during the calendar year in which such cessation occurs and each succeeding calendar year ending with the calendar year in which such bond is redeemed by the land bank1 and 7#b7 interest at the underpayment rate under section #ffba on the amount determined under paragraph 7#a7 for each calendar year for the period beginning on the first day of such calendar year4 7g7 ,other definitions and special rules ,for purposes of this section-- 7#a7 ,qualified issuer ,the term qualified issuer means-- 7,a7 a ,state-authorized land bank1 or 7,b7 with respect a ,state that does not have one or more ,state-authorized land banks1 the ,state or any political subdivision or instrumentality thereof4 7#b7 ,state-authorized land bank ,the term ,state-authorized land bank means a special unit of government or public purpose corporation-- 7,a7 expressly charged under ,state law with the reclamation1 repurposing and redevelopment of vacant and abandoned land1 7,b7 enabled under ,state law to conduct large scale demolition projects1 7,c7 organized in a ,state which has enacted legislation allowing for the expedited tax foreclosure of vacant1 abandoned1 and tax delinquent property1 and 7,d7 which may include a joint venture among #b or more ,state-authorized land banks or among other entities with whom such special unit of government or public purpose corporation is authorized to enter into a joint venture4 7#c7 ,qualified state ,the term qualified ,state means a ,state-- 7,a7 in which at least #di percent of the ,state's total housing units in the ,state were built before #aihj1 according to the #bjaj census1 and 7,b7 which meets #c of the following #d requirements3 7i7 ,the ,state ranks in the top #bj among all ,states in percentage change in nonseasonal vacancies in the time period between the #bjjj decennial census and the #bjaj decennial census4 7ii7 ,the ,state ranks in the top #be among all ,states in unemployment rate 7seasonally adjusted7 for the most recent ,january through ,november period beginning before the issuance of the qualified urban demolition bond4 7iii7 ,the ,state ranks in the top #be among all ,states in percentages of mortgages in foreclosure for the #crd quarter of #bjab4 7iv7 ,the ,state ranks in the top #bj among all ,states in the lowest percentage change in population growth in the time period between the #bjjj decennial census and the #bjaj decennial census4 7#d7 ,credits may be transferred ,notwithstanding in any law or rule of law shall be construed to limit the transferability of the credit or bond allowed by this section through sale and repurchase agreements4 4 7b7 ,conforming amendments 7#a7 ,paragraph 7#a7 of section #ed;,a7d7 of such ,code is amended by striking or at the end of subparagraph 7,d71 by inserting or at the end of subparagraph 7,e71 and by inserting after subparagraph 7,e7 the following new subparagraph3 7,e7 a qualified urban demolition bond1 4 7#b7 ,subparagraph 7,c7 of section #ed;,a7d77#b7 is amended by striking and at the end of clause 7iv71 by striking the period at the end of clause 7v7 and inserting 1 and1 and by adding at the end the following new clause3 7vi7 in the case of a qualified urban demolition bond1 a purpose specified in section #ed;,g7a77#a74 4 7#c7 ,the table of sections for subpart ,i of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #ed;,g4 ,qualified urban demolition bonds4 4 7c7 ,effective date ,the amendments made by this section shall apply to bonds issued after the date of the enactment of this ,act4 #c4 ,use of ,hardest ,hit ,fund amounts for demolition activities 7a7 ,authority ,notwithstanding any provision of title ,i of the ,emergency ,economic ,stabilization ,act of #bjjh 7#ab ,u4,s4,c4 #ebaa et seq471 any regulation1 guidance1 order1 or other directive of the ,secretary of the ,treasury1 or any agreement 7or amendment thereto7 entered into under the ,hardest ,hit ,fund program of the ,secretary under such title ,i1 any amounts of assistance that have been1 or are1 allocated for or provided to a ,state or ,state agency through the ,hardest ,hit ,fund program may be used1 without limitation1 to demolish blighted structures4 7b7 ,failure ,to use ,,hhf amounts ,if1 upon the expiration of the #bd-month period beginning on the date of the enactment of this ,act1 any ,state or ,state agency is holding any amounts of assistance described in subsection 7a7 or any amounts of such assistance allocated for such ,state or ,state agency have not been disbursed to such ,state or agency1 the ,secretary shall remit to the ,treasury an amount equal to #be percent of the aggregate amount1 as of such date1 of such held and undisbursed funds4 ,the ,secretary shall recapture from such ,state or ,state agency any amounts of such held funds necessary to carry out this subsection4