,,ii #aagth ,,congress #ast ,session ,s4 #bcjj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #bd1 #bjba,mr4 ,peters introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to direct the ,secretary of ,housing and ,urban ,development to establish a grant program to help revitalize certain localities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,restoring ,communities ,left ,behind ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,as the ,united ,states continues to feel the devastating economic impacts of ,coronavirus ,disease #bjai 7,,covid-#ai71 many urban and rural communities are still suffering from the effects of underwater mortgages1 vacancy1 abandoned properties1 blight1 aging housing stock1 properties with deferred maintenance and harmful materials such as lead1 asbestos1 and mold1 unemployment1 and population loss4 7#b7 ,while some cities and counties struggle with disinvestment and population loss1 there are also pockets of economic distress in otherwise prosperous1 growing areas4 7#c7 ,investments targeted to these communities left behind will be critical to ensure equitable economic recovery1 job creation1 and housing and neighborhood infrastructure revitalization4 7#d7 ,the need to revitalize neighborhoods is greater than what can be supported with existing local tax bases4 7#e7 ,communities continue to suffer from the impact of governmental policies and private sector practices that forbade or discouraged mortgage lending in neighborhoods having significant minority populations4 7#f7 ,many ,state and local governments1 land banks1 and nonprofit organizations across the ,united ,states have responded to the housing crisis by creating cost-effective strategies to revitalize neighborhoods4 7#g7 #bjaf data from the ,bureau of the ,census shows that non-,hispanic1 ,white households have an average net worth of #adc1fjj1 while ,black households have an average net worth of #ab1ibj and ,hispanic households have an average net worth of #ba1dbj4 7#h7 ,housing equity is a significant portion of ,black and ,hispanic households' net worth1 making up nearly #eg percent of ,black households' net worth1 #ff4e percent of ,hispanic households' net worth1 and #dj4h percent of ,white households' net worth1 according to the ,urban ,institute's calculations from the #bjaf ,survey of ,consumer ,finances4 7#i7 ,the #bjjh recession and the ,,covid-#ai recession have exacerbated the racial wealth gap4 7#aj7 ,funding innovative local neighborhood strategies will allow the ,united ,states to close the racial wealth gap1 ensure equitable access to housing and economic mobility1 and counter the lasting legacy of redlining policies4 7#aa7 ,despite the strong requirement to affirmatively furthering fair housing under the ,fair ,housing ,act 7#db ,u4,s4,c4 #cfja et seq471 the lack of accountability measures implemented by the ,department of ,housing and ,urban ,development to ensure equitable use of housing and community development dollars in ,federal programs has allowed for the perpetuation of the legacy of redlining and neighborhood disinvestment4 7#ab7 ,it is imperative that the ,federal ,government make funding available for the best local strategies to increase homeownership and preserve home equity in impacted areas1 access to safe and affordable rental housing1 economic growth1 job creation1 and to build on local assets to improve communities in ways that affirmatively further fair housing4 #c4 ,definitions ,in this ,act3 7#a7 ,anchor institution ,the term anchor institution means a school1 a library1 a healthcare provider1 a community college or other institution of higher education1 or another community support organization or entity4 7#b7 ,appropriate ,congressional ,committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,financial ,services and the ,committee on ,appropriations of the ,house of ,representatives4 7,b7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,appropriations of the ,senate4 7#c7 ,community development financial institution ,the term community development financial institution has the meaning given the term in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb774 7#d7 ,community land trust ,the term community land trust' means a nonprofit organization or a ,state or local government or instrumentality that-- 7,a7 uses a ground lease or deed covenant with an affordability period of not less than #cj years to-- 7i7 make rental and homeownership units affordable to households2 and 7ii7 stipulate a preemptive option to purchase the affordable rentals or homeownership units so that the affordability of the units is preserved for successive income-eligible households2 and 7,b7 monitor properties to ensure affordability is preserved4 7#e7 ,eligible local partnership ,the term eligible local partnership means a partnership between-- 7,a7 a national or local nonprofit organization with expertise in community planning1 engagement1 organizing1 development1 or neighborhood revitalization2 and 7,b7 7i7 a city or county government2 7ii7 a land bank2 7iii7 a fair housing enforcement organization2 7iv7 an anchor institution2 7v7 a nonprofit organization2 7vi7 a ,state housing finance agency or a related ,state agency2 7vii7 a community development financial institution2 7viii7 a public housing agency2 or 7ix7 a combination of any entities described in clauses 7i7 through 7viii74 7#f7 ,eligible locality ,the term eligible locality means one or more geographic areas at the neighborhood or county level that meet not less than four of the following objective criteria of economic distress1 with specific thresholds set by the ,secretary3 7,a7 ,dwelling unit sales prices are lower than the cost to acquire and rehabilitate1 or build1 a new dwelling unit4 7,b7 ,high proportions of residential and commercial properties are vacant due to foreclosure1 eviction1 abandonment1 or other causes4 7,c7 ,low rates of homeownership4 7,d7 ,racial disparities in homeownership rates4 7,e7 ,high rates of poverty4 7,f7 ,high rates of unemployment and underemployment4 7,g7 ,population loss4 7,h7 ,lack of private sector lending on fair and competitive terms for individuals to purchase homes or start small businesses4 7,i7 ,other indicators of economic distress1 such as the lack of housing affordability1 stemming from long-standing government policies and private sector practices that prevented mortgage lending in some communities1 such as redlining4 7#g7 ,fair housing enforcement organization ,the term fair housing enforcement organization has the meaning given the term in section #efa7;h7 of the ,housing and ,community ,development ,act of #aihg 7#db ,u4,s4,c4 #cfaf;a7h774 7#h7 ,institution of higher education ,the term institution of higher education has the meaning given the term in section #aja of the ,higher ,education ,act of #aife 7#be ,u4,s4,c4 #ajja74 7#i7 ,land bank ,the term land bank means a government entity1 agency1 or program1 or a special purpose nonprofit entity formed by one or more units of government in accordance with ,state or local land bank enabling law1 that has been designated by one or more ,state or local governments to acquire1 steward1 and dispose of vacant1 abandoned1 or other problem properties in accordance with locally-determined priorities and goals4 7#aj7 ,neighborhood revitalization support activity ,the term neighborhood revitalization support activity means an activity described in section #d7;b74 7#aa7 ,non-performing mortgage ,the term non-performing mortgage means a residential mortgage loan that is delinquent for a period of not less than #ij days4 7#ab7 ,nonprofit organization ,the term nonprofit organization means an organization that is described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf and is exempt from taxation under section #eja7;a7 of such ,code4 7#ac7 ,public housing agency ,the term public housing agency has the meaning given the term in section #c7;b7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;a7b774 7#ad7 ,secretary ,the term ,secretary means the ,secretary of ,housing and ,urban ,development4 7#ae7 ,shared equity homeownership program ,the term shared equity homeownership program means affordable homeownership preservation through a resale restriction program administered by a community land trust1 other nonprofit organization1 or a ,state or local government or instrumentality that-- 7,a7 provides affordable homeownership opportunities to households2 and 7,b7 utilizes a ground lease1 deed restriction1 subordinate loan1 or similar legal mechanism that includes provisions ensuring that the program shall-- 7i7 maintain the home as affordable for subsequent very low-1 low-1 or moderate-income families for an affordability term of not less than #cj years after recordation2 7ii7 apply a resale formula that limits the proceeds of the homeowner upon resale2 and 7iii7 provide the program administrator or an assignee thereof a preemptive option to purchase the homeownership unit from the homeowner at resale4 7#af7 ,state housing finance agency ,the term ,state housing finance agency has the meaning given the term in section #ajf7;h7 of the ,housing and ,urban ,development ,act of #aifh 7#ab ,u4,s4,c4 #agjax7h7774 #d4 ,competitive grant program 7a7 ,establishment ,not later than the #abj days after the date of enactment of this ,act1 the ,secretary shall establish a program to award competitive grants to eligible local partnerships to carry out neighborhood revitalization support activities described in subsection 7b7 in furtherance of a neighborhood revitalization strategy in an eligible locality4 7b7 ,use of funds ,the neighborhood revitalization support activities described in this subsection are-- 7#a7 providing assistance to existing residents experiencing economic distress or at risk of displacement with homeowner rehabilitation assistance1 weatherization1 improved housing accessibility and livability for seniors and persons with disabilities1 energy efficiency improvements1 refinancing1 housing counseling certified by the ,secretary1 including loss mitigation counseling1 property tax relief1 clearing and obtaining formal title1 addressing outstanding housing-related expenses1 or other activities that the ,secretary determines are appropriate2 7#b7 purchasing non-performing mortgages to assist existing homeowners and advance neighborhood stability2 7#c7 supporting the purchase and redevelopment of vacant1 abandoned1 or distressed properties to create affordable rental housing1 homeownership or shared equity homeownership opportunities1 mixed-use properties1 or commercial properties1 which properties may be converted between rental and homeownership1 including shared equity homeownership1 upon termination of the lease or transfer of the property during the relevant period of affordability to ensure local community needs are met1 properties do not sit vacant1 and affordability is preserved2 7#d7 providing pre-purchase counseling through housing counselors certified by the ,secretary for neighborhood revitalization support activities that provide homeownership opportunities2 7#e7 providing down payment assistance to prospective homebuyers2 7#f7 establishing and operating community land trusts to provide affordable rental and homeownership opportunities1 including shared equity homeownership opportunities2 7#g7 demolishing abandoned or distressed structures1 but only if such activity is part of a strategy that incorporates rehabilitation or new construction and efforts to increase affordable housing and homeownership1 except that not more than #aj percent of any grant made under this section may be used for activities under this paragraph unless the ,secretary determines that such use is to replace units in an effort to increase affordable housing or homeownership2 7#h7 establishing or operating land banks to maintain acquire1 redevelop1 or sell properties that are abandoned or distressed1 with preference among applications proposing activities under this paragraph to be given to applications that promote distribution of properties for affordable housing and small businesses2 7#i7 improving parks1 sidewalks1 street lighting1 and other neighborhood improvements that impact quality of life in the targeted neighborhoods1 except that not more than #e percent of any grant made under this section may be used for activities under this paragraph2 and 7#aj7 in connection with any other eligible activity under this subsection1 working with resident leaders and community groups to undertake community planning1 outreach1 and neighborhood engagement1 consistent with the goals of increasing homeownership1 stabilizing neighborhoods1 reducing vacancy rates1 creating jobs1 increasing or stabilizing residential and commercial property values1 and meeting other neighborhood needs1 except that not more than #aj percent of any grant made under this section may be used for activities under this paragraph4 7c7 ,affordability terms 7#a7 ,rental units ,in the case of property assisted pursuant to subsection 7b77#c7 containing any dwelling units that are made available for rental-- 7,a7 such units shall be available for rental only by a household having an income that does not exceed #fj percent of the median income for the area in which such unit is located2 7,b7 such units shall remain affordable for not less than #cj years2 7,c7 such property may be a mixed-use property2 and 7,d7 such unit shall be maintained in habitable condition1 as defined by the locality in which the property is located4 7#b7 ,homeownership units ,in the case of property assisted pursuant to subsection 7b77#c7 consisting of a dwelling unit1 or containing any dwelling units1 made available for homeownership1 such unit or units-- 7,a7 shall be available for purchase only to by a household having an income that does not exceed #abj percent of the median income for the area in which such unit is located2 7,b7 if made available through a shared equity homeownership program1 shall remain affordable for not less than #cj years2 and 7,c7 if not made available through a shared equity homeownership program-- 7i7 shall remain affordable for a period of years as determined by the partnership1 which shall not be shorter than #e years from the sale of the unit2 and 7ii7 shall be subject to resale or recapture provisions that-- 7,i7 are established by the partnership to ensure that the affordability term may be met or funds may be redeployed for neighborhood revitalization support activities2 7,,ii7 may be waived in cases of hardship or market depreciation2 and 7,,iii7 provide that1 in the case of a resale1 the partnership may maintain preemptive purchase options in order to sell the property to another income qualified purchaser4 7#c7 ,new terms ,if a property described in this subsection converts between rental and homeownership or shared equity homeownership1 the affordability terms of the new tenure type shall be utilized upon occupancy4 7d7 ,applications 7#a7 ,in general ,to apply to receive a grant under this section1 an eligible local partnership shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7#b7 ,grant recipient priority selection criteria ,the ,secretary shall prioritize awarding grants based on the following criteria3 7,a7 ,the severity of the indicators of distress of the eligible locality described in section #c7f74 7,b7 ,the extent to which the activities proposed will-- 7i7 in the case of rental housing1 benefit households having incomes not exceeding #cj percent of the median income for the area2 and 7ii7 in the case of homeownership housing1 including shared equity homeownership1 benefit households having incomes not exceeding #hj percent of the median income for the area4 7,c7 ,whether the activities proposed will promote affordable homeownership and the extent to which those affordability terms will be preserved4 7,d7 ,the extent to which an eligible local partnership that includes a public housing agency will use housing choice vouchers to support homeownership for households at or below #fj percent of area median income4 7,e7 ,the demonstrated capacity of an eligible local partnership to execute the proposed eligible neighborhood revitalization support activities4 7,f7 ,the demonstrated community planning1 outreach1 and engagement practices of an eligible local partnership4 7,g7 ,the depth and breadth of the community partnership supporting the application4 7,h7 ,the extent to which existing residents are assisted to prevent displacement4 7,i7 ,the extent to which the proposed neighborhood revitalization support activities would help close the racial wealth gap by increasing minority homeownership1 ensuring equitable access to housing and economic opportunity1 and countering the ongoing legacy of redlining policies4 7,j7 ,the extent to which development of new units are water and energy efficient4 7,k7 ,the feasibility of the proposed neighborhood revitalization support activities considering local market conditions4 7,l7 ,the extent to which an application demonstrates comprehensive community planning efforts and additional funds in hand or committed for activities in the geographic area that are not directly related to the provision of affordable housing1 such as support for small1 minority1 and women-owned business activity in commercial zones in the targeted neighborhoods4 7#c7 ,geographical diversity ,the ,secretary shall seek to make grants under this section for eligible local partnerships serving geographically diverse areas of economic distress1 as described in section #c7f71 including metropolitan and underserved rural areas4 7e7 ,operation costs ,not more than #ae percent of the amount of each grant under this section may be used by the recipient for administrative and organizational support costs4 7f7 ,technical assistance and capacity building ,the ,secretary may reserve up to #a percent of any funds appropriated to carry out this section for technical assistance activities which support grantees under this program and #a percent of funds from each grant awarded shall be used to develop grantee capacity to meet the requirements under paragraphs 7#a7 and 7#b7 of subsection 7h74 7g7 ,fair housing protections ,funds provided under the program under this section may not be used to deny housing opportunities based on the criminal or eviction history1 source of income1 or veteran status of any member of a household4 7h7 ,accountability of recipients 7#a7 ,requirements ,the ,secretary shall-- 7,a7 require each grantee under this section to develop and maintain a system to ensure that each recipient of assistance uses those amounts in accordance with this section1 the regulations issued under this section1 and any requirements or conditions under which such amounts were provided2 and 7,b7 establish minimum requirements for agreements between the grantee and the ,secretary1 regarding assistance from grants under this section1 which shall include-- 7i7 appropriate periodic financial and project reporting1 record retention1 and audit requirements for the duration of the grant to the recipient to ensure compliance with the limitations and requirements of this section and the regulations under this section2 and 7ii7 any other requirements that the ,secretary determines are necessary to ensure appropriate grant administration and compliance4 7#b7 ,publicly available information ,the ,secretary shall make information regarding the results of assistance provided with amounts from grants under this section publicly available1 which shall include at least the following information3 7,a7 ,a list of recipients of grants awarded under this section and the amount of each such grant4 7,b7 ,a description of each neighborhood revitalization support activity carried out by each such recipient and the impacts associated with each such activity1 including the change in the rate of minority and first-time homeownership4 7,c7 ,the total number of housing units acquired1 redeveloped1 or produced using grant amounts under this section4 7,d7 ,the total number of housing units for rent1 ownership1 and shared equity homeownership assisted with grant amounts under this section and the number of bedrooms in each such unit4 7,e7 ,the percentage of housing units assisted with grant amounts under this section that are affordable to low-1 very low-1 and extremely low-income households4 7,f7 ,the number of such housing units located in areas where the percentage of households in a racial or ethnic minority group-- 7i7 is not less than #bj percentage points higher than the percentage of the population of that minority group for the metropolitan statistical area2 7ii7 is not less than #bj percentage points higher than the percentage of the population of all minorities for the metropolitan statistical area2 and 7iii7 exceeds #ej percent of the population4 7,g7 ,any other information that the ,secretary determines necessary to ensure that housing outcomes and grant administration and compliance align with the purposes of this ,act4 7i7 ,report ,not later than #b years after grants under this section are first awarded and #c years thereafter1 the ,secretary shall submit to the appropriate congressional committees1 and make publicly available online1 a report that-- 7#a7 evaluates the impact of the program established under this section2 7#b7 describes demographic changes in the eligible localities served by grantees of grants under this section1 including changes in income1 race1 and ethnicity1 property values1 and unemployment rates2 7#c7 identifies the number of housing units assisted with grant amounts under this section located in high- and low-poverty census tracts2 7#d7 identifies the number of accessible units created and modified with grant amounts under this section and where such units are located using the most granular location measurement that is feasible such as at the ,census block group level2 and 7#e7 identifies where housing units assisted with grant amounts are located in relation to community assets1 including high performing schools and public transportation options4 7j7 ,authorization of appropriations 7#a7 ,in general ,there is authorized to be appropriated to carry out this section #e1jjj1jjj1jjj for each of fiscal years #bjba through #bjca4 7#b7 ,set aside 7,a7 ,in general ,the ,secretary shall award not less than #ejj1jjj1jjj of any amounts appropriated pursuant to this subsection to eligible local partnerships that will provide neighborhood revitalization support activities to localities outside of a ,metropolitan ,statistical ,area1 as designated by the ,office of ,management and ,budget4 7,b7 ,exception ,the priority under subsection 7d77#b77,l7 7relating to matching funds7 shall not apply to amounts awarded under this paragraph4 7#c7 ,,nofa ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall issue a ,notice of ,funding ,availability for grants under this section4 #e4 ,self-,help ,homeownership ,opportunity ,program ,there is authorized to be appropriated for grants under section #aa of the ,housing ,opportunity ,program ,extension ,act of #aiif 7#db ,u4,s4,c4 #abhje note7 #bej1jjj1jjj for fiscal year #bjba1 which shall remain available until ,september #cj1 #bjca4