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PUBLIC LAW 111–22—MAY 20, 2009

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PREVENTING MORTGAGE FORECLOSURES
AND ENHANCING MORTGAGE CREDIT

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123 STAT. 1632

PUBLIC LAW 111–22—MAY 20, 2009

Public Law 111–22
111th Congress
An Act
May 20, 2009
[S. 896]

To prevent mortgage foreclosures and enhance mortgage credit availability.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
Helping Families
Save Their
Homes Act of
2009.

DIVISION A—PREVENTING MORTGAGE
FORECLOSURES
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

12 USC 5201
note.

(a) SHORT TITLE.—This division may be cited as the ‘‘Helping
Families Save Their Homes Act of 2009’’.
(b) TABLE OF CONTENTS.—The table of contents of this division
is the following:
Sec. 1. Short title; table of contents.
TITLE I—PREVENTION OF MORTGAGE FORECLOSURES
Sec. 101. Guaranteed rural housing loans.
Sec. 102. Modification of housing loans guaranteed by the Department of Veterans
Affairs.
Sec. 103. Additional funding for HUD programs to assist individuals to better withstand the current mortgage crisis.
Sec. 104. Mortgage modification data collecting and reporting.
Sec. 105. Neighborhood Stabilization Program Refinements.
TITLE II—FORECLOSURE MITIGATION AND CREDIT AVAILABILITY
Sec.
Sec.
Sec.
Sec.

201.
202.
203.
204.

Servicer safe harbor for mortgage loan modifications.
Changes to HOPE for Homeowners Program.
Requirements for FHA-approved mortgagees.
Enhancement of liquidity and stability of insured depository institutions
to ensure availability of credit and reduction of foreclosures.
Sec. 205. Application of GSE conforming loan limit to mortgages assisted with
TARP funds.
Sec. 206. Mortgages on certain homes on leased land.
Sec. 207. Sense of Congress regarding mortgage revenue bond purchases.
TITLE III—MORTGAGE FRAUD TASK FORCE
Sec. 301. Sense of the Congress on establishment of a Nationwide Mortgage Fraud
Task Force.
TITLE IV—FORECLOSURE MORATORIUM PROVISIONS
Sec. 401. Sense of the Congress on foreclosures.
Sec. 402. Public-Private Investment Program; Additional Appropriations for the
Special Inspector General for the Troubled Asset Relief Program.
Sec. 403. Removal of requirement to liquidate warrants under the TARP.
Sec. 404. Notification of sale or transfer of mortgage loans.
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TITLE V—FARM LOAN RESTRUCTURING
Sec. 501. Congressional Oversight Panel special report.

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1633

TITLE VI—ENHANCED OVERSIGHT OF THE TROUBLED ASSET RELIEF
PROGRAM
Sec. 601. Enhanced oversight of the Troubled Asset Relief Program.
Sec.
Sec.
Sec.
Sec.

701.
702.
703.
704.

TITLE VII—PROTECTING TENANTS AT FORECLOSURE ACT
Short title.
Effect of foreclosure on preexisting tenancy.
Effect of foreclosure on section 8 tenancies.
Sunset.

TITLE VIII—COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES
Sec. 801. Comptroller General additional audit authorities.

TITLE I—PREVENTION OF MORTGAGE
FORECLOSURES

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SEC. 101. GUARANTEED RURAL HOUSING LOANS.

(a) GUARANTEED RURAL HOUSING LOANS.—Section 502(h) of
the Housing Act of 1949 (42 U.S.C. 1472(h)) is amended—
(1) by redesignating paragraphs (13) and (14) as paragraphs
(16) and (17), respectively; and
(2) by inserting after paragraph (12) the following new
paragraphs:
‘‘(13) LOSS MITIGATION.—Upon default or imminent default
of any mortgage guaranteed under this subsection, mortgagees
shall engage in loss mitigation actions for the purpose of providing an alternative to foreclosure (including actions such
as special forbearance, loan modification, pre-foreclosure sale,
deed in lieu of foreclosure, as required, support for borrower
housing counseling, subordinate lien resolution, and borrower
relocation), as provided for by the Secretary.
‘‘(14) PAYMENT OF PARTIAL CLAIMS AND MORTGAGE MODIFICATIONS.—The Secretary may authorize the modification of
mortgages, and establish a program for payment of a partial
claim to a mortgagee that agrees to apply the claim amount
to payment of a mortgage on a 1- to 4-family residence, for
mortgages that are in default or face imminent default, as
defined by the Secretary. Any payment under such program
directed to the mortgagee shall be made at the sole discretion
of the Secretary and on terms and conditions acceptable to
the Secretary, except that—
‘‘(A) the amount of the partial claim payment shall
be in an amount determined by the Secretary, and shall
not exceed an amount equivalent to 30 percent of the
unpaid principal balance of the mortgage and any costs
that are approved by the Secretary;
‘‘(B) the amount of the partial claim payment shall
be applied first to any outstanding indebtedness on the
mortgage, including any arrearage, but may also include
principal reduction;
‘‘(C) the mortgagor shall agree to repay the amount
of the partial claim to the Secretary upon terms and conditions acceptable to the Secretary;
‘‘(D) expenses related to a partial claim or modification
are not to be charged to the borrower;
‘‘(E) the Secretary may authorize compensation to the
mortgagee for lost income on monthly mortgage payments
due to interest rate reduction;

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123 STAT. 1634

PUBLIC LAW 111–22—MAY 20, 2009
‘‘(F) the Secretary may reimburse the mortgagee from
the appropriate guaranty fund in connection with any
activities that the mortgagee is required to undertake concerning repayment by the mortgagor of the amount owed
to the Secretary;
‘‘(G) the Secretary may authorize payments to the
mortgagee on behalf of the borrower, under such terms
and conditions as are defined by the Secretary, based on
successful performance under the terms of the mortgage
modification, which shall be used to reduce the principal
obligation under the modified mortgage; and
‘‘(H) the Secretary may authorize the modification of
mortgages with terms extended up to 40 years from the
date of modification.
‘‘(15) ASSIGNMENT.—
‘‘(A) PROGRAM AUTHORITY.—The Secretary may establish a program for assignment to the Secretary, upon
request of the mortgagee, of a mortgage on a 1- to 4family residence guaranteed under this chapter.
‘‘(B) PROGRAM REQUIREMENTS.—
‘‘(i) IN GENERAL.—The Secretary may encourage
loan modifications for eligible delinquent mortgages
or mortgages facing imminent default, as defined by
the Secretary, through the payment of the guaranty
and assignment of the mortgage to the Secretary and
the subsequent modification of the terms of the mortgage according to a loan modification approved under
this section.
‘‘(ii) ACCEPTANCE OF ASSIGNMENT.—The Secretary
may accept assignment of a mortgage under a program
under this subsection only if—
‘‘(I) the mortgage is in default or facing
imminent default;
‘‘(II) the mortgagee has modified the mortgage
or qualified the mortgage for modification sufficient to cure the default and provide for mortgage
payments the mortgagor is reasonably able to pay,
at interest rates not exceeding current market
interest rates; and
‘‘(III) the Secretary arranges for servicing of
the assigned mortgage by a mortgagee (which may
include the assigning mortgagee) through procedures that the Secretary has determined to be
in the best interests of the appropriate guaranty
fund.
‘‘(C) PAYMENT OF GUARANTY.—Under the program
under this paragraph, the Secretary may pay the guaranty
for a mortgage, in the amount determined in accordance
with paragraph (2), without reduction for any amounts
modified, but only upon the assignment, transfer, and
delivery to the Secretary of all rights, interest, claims,
evidence, and records with respect to the mortgage, as
defined by the Secretary.
‘‘(D) DISPOSITION.—After modification of a mortgage
pursuant to this paragraph, and assignment of the mortgage, the Secretary may provide guarantees under this

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1635

subsection for the mortgage. The Secretary may subsequently—
‘‘(i) re-assign the mortgage to the mortgagee under
terms and conditions as are agreed to by the mortgagee
and the Secretary;
‘‘(ii) act as a Government National Mortgage
Association issuer, or contract with an entity for such
purpose, in order to pool the mortgage into a Government National Mortgage Association security; or
‘‘(iii) re-sell the mortgage in accordance with any
program that has been established for purchase by
the Federal Government of mortgages insured under
this title, and the Secretary may coordinate standards
for interest rate reductions available for loan modification with interest rates established for such purchase.
‘‘(E) LOAN SERVICING.—In carrying out the program
under this subsection, the Secretary may require the
existing servicer of a mortgage assigned to the Secretary
under the program to continue servicing the mortgage as
an agent of the Secretary during the period that the Secretary acquires and holds the mortgage for the purpose
of modifying the terms of the mortgage. If the mortgage
is resold pursuant to subparagraph (D)(iii), the Secretary
may provide for the existing servicer to continue to service
the mortgage or may engage another entity to service the
mortgage.’’.
(b) TECHNICAL AMENDMENTS.—Subsection (h) of section 502
of the Housing Act of 1949 (42 U.S.C. 1472(h)) is amended—
(1) in paragraph (5)(A), by striking ‘‘(as defined in paragraph (13)’’ and inserting ‘‘(as defined in paragraph (17)’’; and
(2) in paragraph (18)(E)(as so redesignated by subsection
(a)(2)), by—
(A) striking ‘‘paragraphs (3), (6), (7)(A), (8), and (10)’’
and inserting ‘‘paragraphs (3), (6), (7)(A), (8), (10), (13),
and (14)’’; and
(B) striking ‘‘paragraphs (2) through (13)’’ and inserting
‘‘paragraphs (2) through (15)’’.
(c) PROCEDURE.—
(1) IN GENERAL.—The promulgation of regulations necessitated and the administration actions required by the amendments made by this section shall be made without regard
to—
(A) the notice and comment provisions of section 553
of title 5, United States Code;
(B) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804),
relating to notices of proposed rulemaking and public
participation in rulemaking; and
(C) chapter 35 of title 44, United States Code (commonly known as the ‘‘Paperwork Reduction Act’’).
(2) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In
carrying out this section, and the amendments made by this
section, the Secretary shall use the authority provided under
section 808 of title 5, United States Code.

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42 USC 1472
note.

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123 STAT. 1636

PUBLIC LAW 111–22—MAY 20, 2009

SEC. 102. MODIFICATION OF HOUSING LOANS GUARANTEED BY THE
DEPARTMENT OF VETERANS AFFAIRS.

38 USC 3703
note.

(a) MATURITY OF HOUSING LOANS.—Section 3703(d)(1) of title
38, United States Code, is amended by inserting ‘‘at the time
of origination’’ after ‘‘loan’’.
(b) IMPLEMENTATION.—The Secretary of Veterans Affairs may
implement the amendments made by this section through notice,
procedure notice, or administrative notice.
SEC. 103. ADDITIONAL FUNDING FOR HUD PROGRAMS TO ASSIST
INDIVIDUALS TO BETTER WITHSTAND THE CURRENT
MORTGAGE CRISIS.

(a) ADDITIONAL APPROPRIATIONS FOR ADVERTISING TO INCREASE
PUBLIC AWARENESS OF MORTGAGE SCAMS AND COUNSELING ASSISTANCE.—In addition to any amounts that may be appropriated for
each of the fiscal years 2010 and 2011 for such purpose, there
is authorized to be appropriated to the Secretary of Housing and
Urban Development, to remain available until expended,
$10,000,000 for each of the fiscal years 2010 and 2011 for purposes
of providing additional resources to be used for advertising to raise
awareness of mortgage fraud and to support HUD programs and
approved counseling agencies, provided that such amounts are used
to advertise in the 100 metropolitan statistical areas with the
highest rate of home foreclosures, and provided, further that up
to $5,000,000 of such amounts are used for advertisements designed
to reach and inform broad segments of the community.
(b) ADDITIONAL APPROPRIATIONS FOR THE HOUSING COUNSELING
ASSISTANCE PROGRAM.—In addition to any amounts that may be
appropriated for each of the fiscal years 2010 and 2011 for such
purpose, there is authorized to be appropriated to the Secretary
of Housing and Urban Development, to remain available until
expended, $50,000,000 for each of the fiscal years 2010 and 2011
to carry out the Housing Counseling Assistance Program established
within the Department of Housing and Urban Development, provided that such amounts are used to fund HUD-certified housingcounseling agencies located in the 100 metropolitan statistical areas
with the highest rate of home foreclosures for the purpose of
assisting homeowners with inquiries regarding mortgage-modification assistance and mortgage scams.
(c) ADDITIONAL APPROPRIATIONS FOR PERSONNEL AT THE OFFICE
OF FAIR HOUSING AND EQUAL OPPORTUNITY.—In addition to any
amounts that may be appropriated for each of the fiscal years
2010 and 2011 for such purpose, there is authorized to be appropriated to the Secretary of Housing and Urban Development, to
remain available until expended, $5,000,000 for each of the fiscal
years 2010 and 2011 for purposes of hiring additional personnel
at the Office of Fair Housing and Equal Opportunity within the
Department of Housing and Urban Development, provided that
such amounts are used to hire personnel at the local branches
of such Office located in the 100 metropolitan statistical areas
with the highest rate of home foreclosures.

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12 USC
1715z–25.

SEC.

104.

MORTGAGE
REPORTING.

MODIFICATION

DATA

COLLECTING

AND

(a) REPORTING REQUIREMENTS.—Not later than 120 days after
the date of the enactment of this Act, and quarterly thereafter,
the Comptroller of the Currency and the Director of the Office

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1637

of Thrift Supervision, shall jointly submit a report to the Committee
on Banking, Housing, and Urban Affairs of the Senate, the Committee on Financial Services of the House of Representatives on
the volume of mortgage modifications reported to the Office of
the Comptroller of the Currency and the Office of Thrift Supervision,
under the mortgage metrics program of each such Office, during
the previous quarter, including the following:
(1) A copy of the data collection instrument currently used
by the Office of the Comptroller of the Currency and the Office
of Thrift Supervision to collect data on loan modifications.
(2) The total number of mortgage modifications resulting
in each of the following:
(A) Additions of delinquent payments and fees to loan
balances.
(B) Interest rate reductions and freezes.
(C) Term extensions.
(D) Reductions of principal.
(E) Deferrals of principal.
(F) Combinations of modifications described in
subparagraph (A), (B), (C), (D), or (E).
(3) The total number of mortgage modifications in which
the total monthly principal and interest payment resulted in
the following:
(A) An increase.
(B) Remained the same.
(C) Decreased less than 10 percent.
(D) Decreased between 10 percent and 20 percent.
(E) Decreased 20 percent or more.
(4) The total number of loans that have been modified
and then entered into default, where the loan modification
resulted in—
(A) higher monthly payments by the homeowner;
(B) equivalent monthly payments by the homeowner;
(C) lower monthly payments by the homeowner of up
to 10 percent;
(D) lower monthly payments by the homeowner of
between 10 percent to 20 percent; or
(E) lower monthly payments by the homeowner of more
than 20 percent.
(b) DATA COLLECTION.—
(1) REQUIRED.—
(A) IN GENERAL.—Not later than 60 days after the
date of the enactment of this Act, the Comptroller of the
Currency and the Director of the Office of Thrift Supervision, shall issue mortgage modification data collection
and reporting requirements to institutions covered under
the reporting requirement of the mortgage metrics program
of the Comptroller or the Director.
(B) INCLUSIVENESS OF COLLECTIONS.—The requirements under subparagraph (A) shall provide for the collection of all mortgage modification data needed by the Comptroller of the Currency and the Director of the Office of
Thrift Supervision to fulfill the reporting requirements
under subsection (a).
(2) REPORT.—The Comptroller of the Currency shall report
all requirements established under paragraph (1) to each committee receiving the report required under subsection (a).

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123 STAT. 1638

PUBLIC LAW 111–22—MAY 20, 2009

SEC. 105. NEIGHBORHOOD STABILIZATION PROGRAM REFINEMENTS.

(a) IN GENERAL.—Section 2301(c) of the Foreclosure Prevention
Act of 2008 (42 U.S.C. 5301 note) is amended—
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following new paragraph:
‘‘(3) EXCEPTION FOR CERTAIN STATES.—Each State that has
received the minimum allocation of amounts pursuant to the
requirement under section 2302 may, to the extent such State
has fulfilled the requirements of paragraph (2), distribute any
remaining amounts to areas with homeowners at risk of foreclosure or in foreclosure without regard to the percentage of
home foreclosures in such areas.’’.
(b) RETROACTIVE EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect as if enacted on the date of enactment
of the Foreclosure Prevention Act of 2008 (Public Law 110–289).

42 USC 5301
note.

TITLE II—FORECLOSURE MITIGATION
AND CREDIT AVAILABILITY
SEC. 201. SERVICER SAFE HARBOR FOR MORTGAGE LOAN MODIFICATIONS.
15 USC 1639a
note.

(a) CONGRESSIONAL FINDINGS.—Congress finds the following:
(1) Increasing numbers of mortgage foreclosures are not
only depriving many Americans of their homes, but are also
destabilizing property values and negatively affecting State
and local economies as well as the national economy.
(2) In order to reduce the number of foreclosures and
to stabilize property values, local economies, and the national
economy, servicers must be given—
(A) authorization to—
(i) modify mortgage loans and engage in other
loss mitigation activities consistent with applicable
guidelines issued by the Secretary of the Treasury
or his designee under the Emergency Economic Stabilization Act of 2008; and
(ii) refinance mortgage loans under the Hope for
Homeowners program; and
(B) a safe harbor to enable such servicers to exercise
these authorities.
(b) SAFE HARBOR.—Section 129A of the Truth in Lending Act
(15 U.S.C. 1639a) is amended to read as follows:
‘‘SEC. 129. DUTY OF SERVICERS OF RESIDENTIAL MORTGAGES.

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‘‘(a) IN GENERAL.—Notwithstanding any other provision of law,
whenever a servicer of residential mortgages agrees to enter into
a qualified loss mitigation plan with respect to 1 or more residential
mortgages originated before the date of enactment of the Helping
Families Save Their Homes Act of 2009, including mortgages held
in a securitization or other investment vehicle—
‘‘(1) to the extent that the servicer owes a duty to investors
or other parties to maximize the net present value of such
mortgages, the duty shall be construed to apply to all such
investors and parties, and not to any individual party or group
of parties; and

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123 STAT. 1639

‘‘(2) the servicer shall be deemed to have satisfied the
duty set forth in paragraph (1) if, before December 31, 2012,
the servicer implements a qualified loss mitigation plan that
meets the following criteria:
‘‘(A) Default on the payment of such mortgage has
occurred, is imminent, or is reasonably foreseeable, as such
terms are defined by guidelines issued by the Secretary
of the Treasury or his designee under the Emergency Economic Stabilization Act of 2008.
‘‘(B) The mortgagor occupies the property securing the
mortgage as his or her principal residence.
‘‘(C) The servicer reasonably determined, consistent
with the guidelines issued by the Secretary of the Treasury
or his designee, that the application of such qualified loss
mitigation plan to a mortgage or class of mortgages will
likely provide an anticipated recovery on the outstanding
principal mortgage debt that will exceed the anticipated
recovery through foreclosures.
‘‘(b) NO LIABILITY.—A servicer that is deemed to be acting
in the best interests of all investors or other parties under this
section shall not be liable to any party who is owed a duty under
subsection (a)(1), and shall not be subject to any injunction, stay,
or other equitable relief to such party, based solely upon the
implementation by the servicer of a qualified loss mitigation plan.
‘‘(c) STANDARD INDUSTRY PRACTICE.—The qualified loss mitigation plan guidelines issued by the Secretary of the Treasury under
the Emergency Economic Stabilization Act of 2008 shall constitute
standard industry practice for purposes of all Federal and State
laws.
‘‘(d) SCOPE OF SAFE HARBOR.—Any person, including a trustee,
issuer, and loan originator, shall not be liable for monetary damages
or be subject to an injunction, stay, or other equitable relief, based
solely upon the cooperation of such person with a servicer when
such cooperation is necessary for the servicer to implement a qualified loss mitigation plan that meets the requirements of subsection
(a).
‘‘(e) REPORTING.—Each servicer that engages in qualified loss
mitigation plans under this section shall regularly report to the
Secretary of the Treasury the extent, scope, and results of the
servicer’s modification activities. The Secretary of the Treasury
shall prescribe regulations or guidance specifying the form, content,
and timing of such reports.
‘‘(f) DEFINITIONS.—As used in this section—
‘‘(1) the term ‘qualified loss mitigation plan’ means—
‘‘(A) a residential loan modification, workout, or other
loss mitigation plan, including to the extent that the Secretary of the Treasury determines appropriate, a loan sale,
real property disposition, trial modification, pre-foreclosure
sale, and deed in lieu of foreclosure, that is described
or authorized in guidelines issued by the Secretary of the
Treasury or his designee under the Emergency Economic
Stabilization Act of 2008; and
‘‘(B) a refinancing of a mortgage under the Hope for
Homeowners program;
‘‘(2) the term ‘servicer’ means the person responsible for
the servicing for others of residential mortgage loans (including
of a pool of residential mortgage loans); and

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Deadline.
Criteria.

Regulations.

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123 STAT. 1640

PUBLIC LAW 111–22—MAY 20, 2009

‘‘(3) the term ‘securitization vehicle’ means a trust, special
purpose entity, or other legal structure that is used to facilitate
the issuing of securities, participation certificates, or similar
instruments backed by or referring to a pool of assets that
includes residential mortgages (or instruments that are related
to residential mortgages such as credit-linked notes).
‘‘(g) RULE OF CONSTRUCTION.—No provision of subsection (b)
or (d) shall be construed as affecting the liability of any servicer
or person as described in subsection (d) for actual fraud in the
origination or servicing of a loan or in the implementation of a
qualified loss mitigation plan, or for the violation of a State or
Federal law, including laws regulating the origination of mortgage
loans, commonly referred to as predatory lending laws.’’.

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SEC. 202. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM.

(a) PROGRAM CHANGES.—Section 257 of the National Housing
Act (12 U.S.C. 1715z–23) is amended—
(1) in subsection (c)—
(A) in the heading for paragraph (1), by striking ‘‘THE
BOARD’’ and inserting ‘‘SECRETARY’’;
(B) in paragraph (1), by striking ‘‘Board’’ inserting
‘‘Secretary, after consultation with the Board,’’;
(C) in paragraph (1)(A), by inserting ‘‘consistent with
section 203(b) to the maximum extent possible’’ before the
semicolon; and
(D) by adding after paragraph (2) the following:
‘‘(3) DUTIES OF BOARD.—The Board shall advise the Secretary regarding the establishment and implementation of the
HOPE for Homeowners Program.’’;
(2) by striking ‘‘Board’’ each place such term appears in
subsections (e), (h)(1), (h)(3), (j), (l), (n), (s)(3), and (v) and
inserting ‘‘Secretary’’;
(3) in subsection (e)—
(A) by striking paragraph (1) and inserting the following:
‘‘(1) BORROWER CERTIFICATION.—
‘‘(A) NO INTENTIONAL DEFAULT OR FALSE INFORMATION.—The mortgagor shall provide a certification to the
Secretary that the mortgagor has not intentionally
defaulted on the existing mortgage or mortgages or any
other substantial debt within the last 5 years and has
not knowingly, or willfully and with actual knowledge,
furnished material information known to be false for the
purpose of obtaining the eligible mortgage to be insured
and has not been convicted under Federal or State law
for fraud during the 10-year period ending upon the insurance of the mortgage under this section.
‘‘(B) LIABILITY FOR REPAYMENT.—The mortgagor shall
agree in writing that the mortgagor shall be liable to repay
to the Secretary any direct financial benefit achieved from
the reduction of indebtedness on the existing mortgage
or mortgages on the residence refinanced under this section
derived from misrepresentations made by the mortgagor
in the certifications and documentation required under this
paragraph, subject to the discretion of the Secretary.
‘‘(C) CURRENT BORROWER DEBT-TO-INCOME RATIO.—As
of the date of application for a commitment to insure or

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1641

insurance under this section, the mortgagor shall have
had, or thereafter is likely to have, due to the terms of
the mortgage being reset, a ratio of mortgage debt to
income, taking into consideration all existing mortgages
of that mortgagor at such time, greater than 31 percent
(or such higher amount as the Secretary determines appropriate).’’;
(B) in paragraph (4)—
(i) in subparagraph (A), by striking ‘‘, subject to
standards established by the Board under subparagraph (B),’’; and
(ii) in subparagraph (B)(i), by striking ‘‘shall’’ and
inserting ‘‘may’’; and
(C) in paragraph (7), by striking ‘‘; and provided that’’
and all that follows through ‘‘new second lien’’;
(D) in paragraph (9)—
(i) by striking ‘‘by procuring (A) an income tax
return transcript of the income tax return of the mortgagor, or (B)’’ and inserting ‘‘in accordance with procedures and standards that the Secretary shall establish
(provided that such procedures and standards are consistent with section 203(b) to the maximum extent
possible) which may include requiring the mortgagee
to procure’’; and
(ii) by striking ‘‘and by any other method, in
accordance with procedures and standards that the
Board shall establish’’;
(E) in paragraph (10)—
(i) by striking ‘‘The mortgagor shall not’’ and
inserting the following:
‘‘(A) PROHIBITION.—The mortgagor shall not’’; and
(ii) by adding at the end the following:
‘‘(B) DUTY OF MORTGAGEE.—The duty of the mortgagee
to ensure that the mortgagor is in compliance with the
prohibition under subparagraph (A) shall be satisfied if
the mortgagee makes a good faith effort to determine that
the mortgagor has not been convicted under Federal or
State law for fraud during the period described in subparagraph (A).’’;
(F) in paragraph (11), by inserting before the period
at the end the following: ‘‘, except that the Secretary may
provide exceptions to such latter requirement (relating to
present ownership interest) for any mortgagor who has
inherited a property’’; and
(G) by adding at the end:
‘‘(12) BAN ON MILLIONAIRES.—The mortgagor shall not have
a net worth, as of the date the mortgagor first applies for
a mortgage to be insured under the Program under this section,
that exceeds $1,000,000.’’;
(4) in subsection (h)(2), by striking ‘‘The Board shall prohibit the Secretary from paying’’ and inserting ‘‘The Secretary
shall not pay’’; and
(5) in subsection (i)—
(A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and adjusting the margins
accordingly;

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123 STAT. 1642

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(B) in the matter preceding subparagraph (A), as
redesignated by this paragraph, by striking ‘‘For each’’
and inserting the following:
‘‘(1) PREMIUMS.—For each’’;
(C) in subparagraph (A), as redesignated by this paragraph, by striking ‘‘equal to 3 percent’’ and inserting ‘‘not
more than 3 percent’’; and
(D) in subparagraph (B), as redesignated by this paragraph, by striking ‘‘equal to 1.5 percent’’ and inserting
‘‘not more than 1.5 percent’’;
(E) by adding at the end the following:
‘‘(2) CONSIDERATIONS.—In setting the premium under this
subsection, the Secretary shall consider—
‘‘(A) the financial integrity of the HOPE for Homeowners Program; and
‘‘(B) the purposes of the HOPE for Homeowners Program described in subsection (b).’’;
(6) in subsection (k)—
(A) by striking the subsection heading and inserting
‘‘EXIT FEE’’;
(B) in paragraph (1), in the matter preceding subparagraph (A), by striking ‘‘such sale or refinancing’’ and
inserting ‘‘the mortgage being insured under this section’’;
and
(C) in paragraph (2), by striking ‘‘and the mortgagor’’
and all that follows through the end and inserting ‘‘may,
upon any sale or disposition of the property to which the
mortgage relates, be entitled to up to 50 percent of appreciation, up to the appraised value of the home at the
time when the mortgage being refinanced under this section
was originally made. The Secretary may share any amounts
received under this paragraph with or assign the rights
of any amounts due to the Secretary to the holder of
the existing senior mortgage on the eligible mortgage, the
holder of any existing subordinate mortgage on the eligible
mortgage, or both.’’;
(7) in the heading for subsection (n), by striking ‘‘THE
BOARD’’ and inserting ‘‘SECRETARY’’;
(8) in subsection (p), by striking ‘‘Under the direction of
the Board, the’’ and inserting ‘‘The’’;
(9) in subsection (s)—
(A) in the first sentence of paragraph (2), by striking
‘‘Board of Directors of’’ and inserting ‘‘Advisory Board for’’;
and
(B) in paragraph (3)(A)(ii), by striking ‘‘subsection
(e)(1)(B) and such other’’ and inserting ‘‘such’’;
(10) in subsection (v), by inserting after the period at
the end the following: ‘‘The Secretary shall conform documents,
forms, and procedures for mortgages insured under this section
to those in place for mortgages insured under section 203(b)
to the maximum extent possible consistent with the requirements of this section.’’; and
(11) by adding at the end the following new subsections:
‘‘(x) PAYMENTS TO SERVICERS AND ORIGINATORS.—The Secretary
may establish a payment to the—

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123 STAT. 1643

‘‘(1) servicer of the existing senior mortgage or existing
subordinate mortgage for every loan insured under the HOPE
for Homeowners Program; and
‘‘(2) originator of each new loan insured under the HOPE
for Homeowners Program.
‘‘(y) AUCTIONS.—The Secretary, with the concurrence of the
Board, shall, if feasible, establish a structure and organize procedures for an auction to refinance eligible mortgages on a wholesale
or bulk basis.’’.
(b) REDUCING TARP FUNDS TO OFFSET COSTS OF PROGRAM
CHANGES.—Paragraph (3) of section 115(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225) is amended by
inserting ‘‘, as such amount is reduced by $1,244,000,000,’’ after
‘‘$700,000,000,000’’.
(c) TECHNICAL CORRECTION.—The second section 257 of the
National Housing Act (Public Law 110–289; 122 Stat. 2839; 12
U.S.C. 1715z–24) is amended by striking the section heading and
inserting the following:

Procedures.

‘‘SEC. 258. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS WITHOUT SUFFICIENT CREDIT HISTORY.’’.

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SEC. 203. REQUIREMENTS FOR FHA-APPROVED MORTGAGEES.

(a) MORTGAGEE REVIEW BOARD.—
(1) IN GENERAL.—Section 202(c)(2) of the National Housing
Act (12 U.S.C. 1708(c)) is amended—
(A) in subparagraph (E), by inserting ‘‘and’’ after the
semicolon;
(B) in subparagraph (F), by striking ‘‘; and’’ and
inserting ‘‘or their designees.’’; and
(C) by striking subparagraph (G).
(2) PROHIBITION AGAINST LIMITATIONS ON MORTGAGEE
REVIEW BOARD’S POWER TO TAKE ACTION AGAINST MORTGAGEES.—Section 202(c) of the National Housing Act (12 U.S.C.
1708(c)) is amended by adding at the end the following new
paragraph:
‘‘(9) PROHIBITION AGAINST LIMITATIONS ON MORTGAGEE
REVIEW BOARD’S POWER TO TAKE ACTION AGAINST MORTGAGEES.—No State or local law, and no Federal law (except a
Federal law enacted expressly in limitation of this subsection
after the effective date of this sentence), shall preclude or
limit the exercise by the Board of its power to take any action
authorized under paragraphs (3) and (6) of this subsection
against any mortgagee.’’.
(b) LIMITATIONS ON PARTICIPATION AND MORTGAGEE APPROVAL
AND USE OF NAME.—Section 202 of the National Housing Act (12
U.S.C. 1708) is amended—
(1) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively;
(2) by inserting after subsection (c) the following new subsection:
‘‘(d) LIMITATIONS ON PARTICIPATION IN ORIGINATION AND MORTGAGEE APPROVAL.—
‘‘(1) REQUIREMENT.—Any person or entity that is not
approved by the Secretary to serve as a mortgagee, as such
term is defined in subsection (c)(7), shall not participate in
the origination of an FHA-insured loan except as authorized
by the Secretary.

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Deadline.
Notice.
Effective date.

Regulations.

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Records.

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‘‘(2) ELIGIBILITY FOR APPROVAL.—In order to be eligible
for approval by the Secretary, an applicant mortgagee shall
not be, and shall not have any officer, partner, director, principal, manager, supervisor, loan processor, loan underwriter,
or loan originator of the applicant mortgagee who is—
‘‘(A) currently suspended, debarred, under a limited
denial of participation (LDP), or otherwise restricted under
part 25 of title 24 of the Code of Federal Regulations,
2 Code of Federal Regulations, part 180 as implemented
by part 2424, or any successor regulations to such parts,
or under similar provisions of any other Federal agency;
‘‘(B) under indictment for, or has been convicted of,
an offense that reflects adversely upon the applicant’s
integrity, competence or fitness to meet the responsibilities
of an approved mortgagee;
‘‘(C) subject to unresolved findings contained in a
Department of Housing and Urban Development or other
governmental audit, investigation, or review;
‘‘(D) engaged in business practices that do not conform
to generally accepted practices of prudent mortgagees or
that demonstrate irresponsibility;
‘‘(E) convicted of, or who has pled guilty or nolo
contendre to, a felony related to participation in the real
estate or mortgage loan industry—
‘‘(i) during the 7-year period preceding the date
of the application for licensing and registration; or
‘‘(ii) at any time preceding such date of application,
if such felony involved an act of fraud, dishonesty,
or a breach of trust, or money laundering;
‘‘(F) in violation of provisions of the S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any
applicable provision of State law; or
‘‘(G) in violation of any other requirement as established by the Secretary.
‘‘(3) RULEMAKING AND IMPLEMENTATION.—The Secretary
shall conduct a rulemaking to carry out this subsection. The
Secretary shall implement this subsection not later than the
expiration of the 60-day period beginning upon the date of
the enactment of this subsection by notice, mortgagee letter,
or interim final regulations, which shall take effect upon
issuance.’’; and
(3) by adding at the end the following new subsection:
‘‘(h) USE OF NAME.—The Secretary shall, by regulation, require
each mortgagee approved by the Secretary for participation in the
FHA mortgage insurance programs of the Secretary—
‘‘(1) to use the business name of the mortgagee that is
registered with the Secretary in connection with such approval
in all advertisements and promotional materials, as such terms
are defined by the Secretary, relating to the business of such
mortgagee in such mortgage insurance programs; and
‘‘(2) to maintain copies of all such advertisements and
promotional materials, in such form and for such period as
the Secretary requires.’’.
(c) PAYMENT FOR LOSS MITIGATION.—Section 204(a)(2) of the
National Housing Act (12 U.S.C. 1710(a)(2)) is amended—
(1) by inserting ‘‘or faces imminent default, as defined
by the Secretary’’ after ‘‘default’’;

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123 STAT. 1645

(2) by inserting ‘‘support for borrower housing counseling,
partial claims, borrower incentives, preforeclosure sale,’’ after
‘‘loan modification,’’; and
(3) by striking ‘‘204(a)(1)(A)’’ and inserting ‘‘subsection
(a)(1)(A) or section 230(c)’’.
(d) PAYMENT OF FHA MORTGAGE INSURANCE BENEFITS.—
(1) ADDITIONAL LOSS MITIGATION ACTIONS.—Section 230(a)
of the National Housing Act (12 U.S.C. 1715u(a)) is amended—
(A) by inserting ‘‘or imminent default, as defined by
the Secretary’’ after ‘‘default’’;
(B) by striking ‘‘loss’’ and inserting ‘‘loan’’;
(C) by inserting ‘‘preforeclosure sale, support for borrower housing counseling, subordinate lien resolution, borrower incentives,’’ after ‘‘loan modification,’’;
(D) by inserting ‘‘as required,’’ after ‘‘deeds in lieu
of foreclosure,’’; and
(E) by inserting ‘‘or section 230(c),’’ before ‘‘as provided’’.
(2) AMENDMENT TO PARTIAL CLAIM AUTHORITY.—Section
230(b) of the National Housing Act (12 U.S.C. 1715u(b)) is
amended to read as follows:
‘‘(b) PAYMENT OF PARTIAL CLAIM.—
‘‘(1) ESTABLISHMENT OF PROGRAM.—The Secretary may
establish a program for payment of a partial claim to a mortgagee that agrees to apply the claim amount to payment of
a mortgage on a 1- to 4-family residence that is in default
or faces imminent default, as defined by the Secretary.
‘‘(2) PAYMENTS AND EXCEPTIONS.—Any payment of a partial
claim under the program established in paragraph (1) to a
mortgagee shall be made in the sole discretion of the Secretary
and on terms and conditions acceptable to the Secretary, except
that—
‘‘(A) the amount of the payment shall be in an amount
determined by the Secretary, not to exceed an amount
equivalent to 30 percent of the unpaid principal balance
of the mortgage and any costs that are approved by the
Secretary;
‘‘(B) the amount of the partial claim payment shall
first be applied to any arrearage on the mortgage, and
may also be applied to achieve principal reduction;
‘‘(C) the mortgagor shall agree to repay the amount
of the insurance claim to the Secretary upon terms and
conditions acceptable to the Secretary;
‘‘(D) the Secretary may permit compensation to the
mortgagee for lost income on monthly payments, due to
a reduction in the interest rate charged on the mortgage;
‘‘(E) expenses related to the partial claim or modification may not be charged to the borrower;
‘‘(F) loans may be modified to extend the term of the
mortgage to a maximum of 40 years from the date of
the modification; and
‘‘(G) the Secretary may permit incentive payments to
the mortgagee, on the borrower’s behalf, based on successful performance of a modified mortgage, which shall be
used to reduce the amount of principal indebtedness.
‘‘(3) PAYMENTS IN CONNECTION WITH CERTAIN ACTIVITIES.—
The Secretary may pay the mortgagee, from the appropriate

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123 STAT. 1646

PUBLIC LAW 111–22—MAY 20, 2009
insurance fund, in connection with any activities that the mortgagee is required to undertake concerning repayment by the
mortgagor of the amount owed to the Secretary.’’.
(3) ASSIGNMENT.—Section 230(c) of the National Housing
Act (12 U.S.C. 1715u(c)) is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(c)’’;
(B) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively;
(C) in paragraph (1)(B) (as so redesignated)—
(i) by redesignating subparagraphs (A), (B), and
(C) as clauses (i), (ii), and (iii), respectively;
(ii) in the matter preceding clause (i) (as so redesignated), by striking ‘‘under a program under this subsection’’ and inserting ‘‘under this paragraph’’; and
(iii) in clause (i) (as so redesignated), by inserting
‘‘or facing imminent default, as defined by the Secretary’’ after ‘‘default’’;
(D) in paragraph (1)(C) (as so redesignated), by striking
‘‘under a program under this subsection’’ and inserting
‘‘under this paragraph’’; and
(E) by adding at the end the following:
‘‘(2) ASSIGNMENT AND LOAN MODIFICATION.—
‘‘(A) AUTHORITY.—The Secretary may encourage loan
modifications for eligible delinquent mortgages or mortgages facing imminent default, as defined by the Secretary,
through the payment of insurance benefits and assignment
of the mortgage to the Secretary and the subsequent modification of the terms of the mortgage according to a loan
modification approved by the mortgagee.
‘‘(B) PAYMENT OF BENEFITS AND ASSIGNMENT.—In carrying out this paragraph, the Secretary may pay insurance
benefits for a mortgage, in the amount determined in
accordance with section 204(a)(5), without reduction for
any amounts modified, but only upon the assignment,
transfer, and delivery to the Secretary of all rights, interest,
claims, evidence, and records with respect to the mortgage
specified in clauses (i) through (iv) of section 204(a)(1)(A).
‘‘(C) DISPOSITION.—After modification of a mortgage
pursuant to this paragraph, the Secretary may provide
insurance under this title for the mortgage. The Secretary
may subsequently—
‘‘(i) re-assign the mortgage to the mortgagee under
terms and conditions as are agreed to by the mortgagee
and the Secretary;
‘‘(ii) act as a Government National Mortgage
Association issuer, or contract with an entity for such
purpose, in order to pool the mortgage into a Government National Mortgage Association security; or
‘‘(iii) re-sell the mortgage in accordance with any
program that has been established for purchase by
the Federal Government of mortgages insured under
this title, and the Secretary may coordinate standards
for interest rate reductions available for loan modification with interest rates established for such purchase.
‘‘(D) LOAN SERVICING.—In carrying out this paragraph,
the Secretary may require the existing servicer of a mortgage assigned to the Secretary to continue servicing the

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123 STAT. 1647

mortgage as an agent of the Secretary during the period
that the Secretary acquires and holds the mortgage for
the purpose of modifying the terms of the mortgage, provided that the Secretary compensates the existing servicer
appropriately, as such compensation is determined by the
Secretary consistent, to the maximum extent possible, with
section 203(b). If the mortgage is resold pursuant to
subparagraph (C)(iii), the Secretary may provide for the
existing servicer to continue to service the mortgage or
may engage another entity to service the mortgage.’’.
(4) IMPLEMENTATION.—The Secretary of Housing and
Urban Development may implement the amendments made
by this subsection through notice or mortgagee letter.
(e) CHANGE OF STATUS.—The National Housing Act is amended
by striking section 532 (12 U.S.C. 1735f–10) and inserting the
following new section:

12 USC 1715u
note.

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‘‘SEC. 532. CHANGE OF MORTGAGEE STATUS.

‘‘(a) NOTIFICATION.—Upon the occurrence of any action
described in subsection (b), an approved mortgagee shall immediately submit to the Secretary, in writing, notification of such
occurrence.
‘‘(b) ACTIONS.—The actions described in this subsection are
as follows:
‘‘(1) The debarment, suspension or a Limited Denial of
Participation (LDP), or application of other sanctions, other
exclusions, fines, or penalties applied to the mortgagee or to
any officer, partner, director, principal, manager, supervisor,
loan processor, loan underwriter, or loan originator of the mortgagee pursuant to applicable provisions of State or Federal
law.
‘‘(2) The revocation of a State-issued mortgage loan originator license issued pursuant to the S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any other
similar declaration of ineligibility pursuant to State law.’’.
(f) CIVIL MONEY PENALTIES.—Section 536 of the National
Housing Act (12 U.S.C. 1735f–14) is amended—
(1) in subsection (b)—
(A) in paragraph (1)—
(i) in the matter preceding subparagraph (A), by
inserting ‘‘or any of its owners, officers, or directors’’
after ‘‘mortgagee or lender’’;
(ii) in subparagraph (H), by striking ‘‘title I’’ and
all that follows through ‘‘under this Act.’’ and inserting
‘‘title I or II of this Act, or any implementing regulation, handbook, or mortgagee letter that is issued under
this Act.’’; and
(iii) by inserting after subparagraph (J) the following:
‘‘(K) Violation of section 202(d) of this Act (12 U.S.C.
1708(d)).
‘‘(L) Use of ‘Federal Housing Administration’, ‘Department of Housing and Urban Development’, ‘Government
National Mortgage Association’, ‘Ginnie Mae’, the acronyms
‘HUD’, ‘FHA’, or ‘GNMA’, or any official seal or logo of
the Department of Housing and Urban Development, except
as authorized by the Secretary.’’;

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12 USC 1708
note.
Deadline.

Procedures.

PUBLIC LAW 111–22—MAY 20, 2009

(B) in paragraph (2)—
(i) in subparagraph (B), by striking ‘‘or’’ at the
end;
(ii) in subparagraph (C), by striking the period
at the end and inserting ‘‘; or’’; and
(iii) by adding at the end the following new
subparagraph:
‘‘(D) causing or participating in any of the violations
set forth in paragraph (1) of this subsection.’’; and
(C) by amending paragraph (3) to read as follows:
‘‘(3) PROHIBITION AGAINST MISLEADING USE OF FEDERAL
ENTITY DESIGNATION.—The Secretary may impose a civil money
penalty, as adjusted from time to time, under subsection (a)
for any use of ‘Federal Housing Administration’, ‘Department
of Housing and Urban Development’, ‘Government National
Mortgage Association’, ‘Ginnie Mae’, the acronyms ‘HUD’,
‘FHA’, or ‘GNMA’, or any official seal or logo of the Department
of Housing and Urban Development, by any person, party,
company, firm, partnership, or business, including sellers of
real estate, closing agents, title companies, real estate agents,
mortgage brokers, appraisers, loan correspondents, and dealers,
except as authorized by the Secretary.’’; and
(2) in subsection (g), by striking ‘‘The term’’ and all that
follows through the end of the sentence and inserting ‘‘For
purposes of this section, a person acts knowingly when a person
has actual knowledge of acts or should have known of the
acts.’’.
(g) EXPANDED REVIEW OF FHA MORTGAGEE APPLICANTS AND
NEWLY APPROVED MORTGAGEES.—Not later than the expiration of
the 3-month period beginning upon the date of the enactment
of this Act, the Secretary of Housing and Urban Development
shall—
(1) expand the existing process for reviewing new
applicants for approval for participation in the mortgage insurance programs of the Secretary for mortgages on 1- to 4-family
residences for the purpose of identifying applicants who represent a high risk to the Mutual Mortgage Insurance Fund;
and
(2) implement procedures that, for mortgagees approved
during the 12-month period ending upon such date of enactment—
(A) expand the number of mortgages originated by
such mortgagees that are reviewed for compliance with
applicable laws, regulations, and policies; and
(B) include a process for random reviews of such mortgagees and a process for reviews that is based on volume
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SEC. 204. ENHANCEMENT OF LIQUIDITY AND STABILITY OF INSURED
DEPOSITORY INSTITUTIONS TO ENSURE AVAILABILITY OF
CREDIT AND REDUCTION OF FORECLOSURES.

(a) TEMPORARY INCREASE IN DEPOSIT INSURANCE EXTENDED.—
Section 136 of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5241) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘December 31, 2009’’
and inserting ‘‘December 31, 2013’’;

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(B) by striking paragraph (2);
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and
(D) in paragraph (2), as so redesignated, by striking
‘‘December 31, 2009’’ and inserting ‘‘December 31, 2013’’;
and
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘December 31, 2009’’
and inserting ‘‘December 31, 2013’’;
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph (2);
and
(D) in paragraph (2), as so redesignated, by striking
‘‘December 31, 2009’’ and inserting ‘‘December 31, 2013’’;
and
(b) EXTENSION OF RESTORATION PLAN PERIOD.—Section
7(b)(3)(E)(ii) of the Federal Deposit Insurance Act (12 U.S.C.
1817(b)(3)(E)(ii)) is amended by striking ‘‘5-year period’’ and
inserting ‘‘8-year period’’.
(c) FDIC AND NCUA BORROWING AUTHORITY.—
(1) FDIC.—Section 14(a) of the Federal Deposit Insurance
Act (12 U.S.C. 1824(a)) is amended—
(A) by striking ‘‘$30,000,000,000’’ and inserting
‘‘$100,000,000,000’’;
(B) by striking ‘‘The Corporation is authorized’’ and
inserting the following:
‘‘(1) IN GENERAL.—The Corporation is authorized’’;
(C) by striking ‘‘There are hereby’’ and inserting the
following:
‘‘(2) FUNDING.—There are hereby’’; and
(D) by adding at the end the following:
‘‘(3) TEMPORARY INCREASES AUTHORIZED.—
‘‘(A) RECOMMENDATIONS FOR INCREASE.—During the
period beginning on the date of enactment of this paragraph
and ending on December 31, 2010, if, upon the written
recommendation of the Board of Directors (upon a vote
of not less than two-thirds of the members of the Board
of Directors) and the Board of Governors of the Federal
Reserve System (upon a vote of not less than two-thirds
of the members of such Board), the Secretary of the
Treasury (in consultation with the President) determines
that additional amounts above the $100,000,000,000
amount specified in paragraph (1) are necessary, such
amount shall be increased to the amount so determined
to be necessary, not to exceed $500,000,000,000.
‘‘(B) REPORT REQUIRED.—If the borrowing authority of
the Corporation is increased above $100,000,000,000 pursuant to subparagraph (A), the Corporation shall promptly
submit a report to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives
describing the reasons and need for the additional borrowing authority and its intended uses.
‘‘(C) RESTRICTION ON USAGE.—The Corporation may
not borrow pursuant to subparagraph (A) to fund obligations of the Corporation incurred as a part of a program
established by the Secretary of the Treasury pursuant to

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Time period.

Applicability.

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the Emergency Economic Stabilization Act of 2008 to purchase or guarantee assets.’’.
(2) NCUA.—Section 203(d)(1) of the Federal Credit Union
Act (12 U.S.C. 1783(d)(1)) is amended to read as follows:
‘‘(1) If, in the judgment of the Board, a loan to the insurance
fund, or to the stabilization fund described in section 217 of
this title, is required at any time for purposes of this subchapter, the Secretary of the Treasury shall make the loan,
but loans under this paragraph shall not exceed in the aggregate $6,000,000,000 outstanding at any one time. Except as
otherwise provided in this subsection, section 217, and in subsection (e) of this section, each loan under this paragraph
shall be made on such terms as may be fixed by agreement
between the Board and the Secretary of the Treasury.’’.
(3) TEMPORARY INCREASES OF BORROWING AUTHORITY FOR
NCUA.—Section 203(d) of the Federal Credit Union Act (12
U.S.C. 1783(d)) is amended by adding at the end the following:
‘‘(4) TEMPORARY INCREASES AUTHORIZED.—
‘‘(A) RECOMMENDATIONS FOR INCREASE.—During the
period beginning on the date of enactment of this paragraph
and ending on December 31, 2010, if, upon the written
recommendation of the Board (upon a vote of not less
than two-thirds of the members of the Board) and the
Board of Governors of the Federal Reserve System (upon
a vote of not less than two-thirds of the members of such
Board), the Secretary of the Treasury (in consultation with
the President) determines that additional amounts above
the $6,000,000,000 amount specified in paragraph (1) are
necessary, such amount shall be increased to the amount
so determined to be necessary, not to exceed
$30,000,000,000.
‘‘(B) REPORT REQUIRED.—If the borrowing authority of
the Board is increased above $6,000,000,000 pursuant to
subparagraph (A), the Board shall promptly submit a report
to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services
of the House of Representatives describing the reasons
and need for the additional borrowing authority and its
intended uses.’’.
(d) EXPANDING SYSTEMIC RISK SPECIAL ASSESSMENTS.—Section
13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12 U.S.C.
1823(c)(4)(G)(ii)) is amended to read as follows:
‘‘(ii) REPAYMENT OF LOSS.—
‘‘(I) IN GENERAL.—The Corporation shall
recover the loss to the Deposit Insurance Fund
arising from any action taken or assistance provided with respect to an insured depository institution under clause (i) from 1 or more special assessments on insured depository institutions, depository institution holding companies (with the
concurrence of the Secretary of the Treasury with
respect to holding companies), or both, as the Corporation determines to be appropriate.
‘‘(II) TREATMENT OF DEPOSITORY INSTITUTION
HOLDING COMPANIES.—For purposes of this clause,
sections 7(c)(2) and 18(h) shall apply to depository

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123 STAT. 1651

institution holding companies as if they were
insured depository institutions.
‘‘(III) REGULATIONS.—The Corporation shall
prescribe such regulations as it deems necessary
to implement this clause. In prescribing such regulations, defining terms, and setting the appropriate
assessment rate or rates, the Corporation shall
establish rates sufficient to cover the losses
incurred as a result of the actions of the Corporation under clause (i) and shall consider: the types
of entities that benefit from any action taken or
assistance provided under this subparagraph; economic conditions, the effects on the industry, and
such other factors as the Corporation deems appropriate and relevant to the action taken or the
assistance provided. Any funds so collected that
exceed actual losses shall be placed in the Deposit
Insurance Fund.’’.
(e) ESTABLISHMENT OF A NATIONAL CREDIT UNION SHARE INSURANCE FUND RESTORATION PLAN PERIOD.—Section 202(c)(2) of the
Federal Credit Union Act (12 U.S.C. 1782(c)(2)) is amended by
adding at the end the following new subparagraph:
‘‘(D) FUND RESTORATION PLANS.—
‘‘(i) IN GENERAL.—Whenever—
‘‘(I) the Board projects that the equity ratio
of the Fund will, within 6 months of such determination, fall below the minimum amount specified in subparagraph (C); or
‘‘(II) the equity ratio of the Fund actually falls
below the minimum amount specified in subparagraph (C) without any determination under subclause (I) having been made,
the Board shall establish and implement a restoration
plan within 90 days that meets the requirements of
clause (ii) and such other conditions as the Board
determines to be appropriate.
‘‘(ii) REQUIREMENTS OF RESTORATION PLAN.—A restoration plan meets the requirements of this clause
if the plan provides that the equity ratio of the Fund
will meet or exceed the minimum amount specified
in subparagraph (C) before the end of the 8-year period
beginning upon the implementation of the plan (or
such longer period as the Board may determine to
be necessary due to extraordinary circumstances).
‘‘(iii) TRANSPARENCY.—Not more than 30 days after
the Board establishes and implements a restoration
plan under clause (i), the Board shall publish in the
Federal Register a detailed analysis of the factors
considered and the basis for the actions taken with
regard to the plan.’’.
(f) TEMPORARY CORPORATE CREDIT UNION STABILIZATION
FUND.—
(1) ESTABLISHMENT OF STABILIZATION FUND.—Title II of
the Federal Credit Union Act (12 U.S.C. 1781 et seq.) is
amended by adding at the end the following new section:

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123 STAT. 1652
12 USC 1790e.

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PUBLIC LAW 111–22—MAY 20, 2009

‘‘SEC. 217. TEMPORARY CORPORATE CREDIT UNION STABILIZATION
FUND.

‘‘(a) ESTABLISHMENT OF STABILIZATION FUND.—There is hereby
created in the Treasury of the United States a fund to be known
as the ‘Temporary Corporate Credit Union Stabilization Fund.’ The
Board will administer the Stabilization Fund as prescribed by section 209.
‘‘(b) EXPENDITURES FROM STABILIZATION FUND.—Money in the
Stabilization Fund shall be available upon requisition by the Board,
without fiscal year limitation, for making payments for the purposes
described in section 203(a), subject to the following additional
limitations:
‘‘(1) All payments other than administrative payments shall
be connected to the conservatorship, liquidation, or threatened
conservatorship or liquidation, of a corporate credit union.
‘‘(2) Prior to authorizing each payment the Board shall—
‘‘(A) certify that, absent the existence of the Stabilization Fund, the Board would have made the identical payment out of the National Credit Union Share Insurance
Fund (Insurance Fund); and
‘‘(B) report each such certification to the Committee
on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House
of Representatives.
‘‘(c) AUTHORITY TO BORROW.—
‘‘(1) IN GENERAL.—The Stabilization Fund is authorized
to borrow from the Secretary of the Treasury from time-totime as deemed necessary by the Board. The maximum outstanding amount of all borrowings from the Treasury by the
Stabilization Fund and the National Credit Union Share Insurance Fund, combined, is limited to the amount provided for
in section 203(d)(1), including any authorized increases in that
amount.
‘‘(2) REPAYMENT OF ADVANCES.—
‘‘(A) IN GENERAL.—The advances made under this section shall be repaid by the Stabilization Fund, and interest
on such advance shall be paid, to the General fund of
the Treasury.
‘‘(B) VARIABLE RATE OF INTEREST.—The Secretary of
the Treasury shall make the first rate determination at
the time of the first advance under this section and shall
reset the rate again for all advances on each anniversary
of the first advance. The interest rate shall be equal to
the average market yield on outstanding marketable obligations of the United States with remaining periods to maturity equal to 12 months.
‘‘(3) REPAYMENT SCHEDULE.—The Stabilization Fund shall
repay the advances on a first-in, first-out basis, with interest
on the amount repaid, at times and dates determined by the
Board at its discretion. All advances shall be repaid not later
than the date of the seventh anniversary of the first advance
to the Stabilization Fund, unless the Board extends this final
repayment date. The Board shall obtain the concurrence of
the Secretary of the Treasury on any proposed extension,
including the terms and conditions of the extended repayment.
‘‘(d) ASSESSMENT TO REPAY ADVANCES.—At least 90 days prior
to each repayment described in subsection (c)(3), the Board shall

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123 STAT. 1653

set the amount of the upcoming repayment and determine if the
Stabilization Fund will have sufficient funds to make the repayment. If the Stabilization Fund might not have sufficient funds
to make the repayment, the Board shall assess each federally
insured credit union a special premium due and payable within
60 days in an aggregate amount calculated to ensure the Stabilization Fund is able to make the repayment. The premium charge
for each credit union shall be stated as a percentage of its insured
shares as represented on the credit union’s previous call report.
The percentage shall be identical for each credit union. Any credit
union that fails to make timely payment of the special premium
is subject to the procedures and penalties described under subsections (d), (e), and (f) of section 202.
‘‘(e) DISTRIBUTIONS FROM INSURANCE FUND.—At the end of
any calendar year in which the Stabilization Fund has an outstanding advance from the Treasury, the Insurance Fund is prohibited from making the distribution to insured credit unions described
in section 202(c)(3). In lieu of the distribution described in that
section, the Insurance Fund shall make a distribution to the Stabilization Fund of the maximum amount possible that does not
reduce the Insurance Fund’s equity ratio below the normal operating level and does not reduce the Insurance Fund’s available
assets ratio below 1.0 percent.
‘‘(f) INVESTMENT OF STABILIZATION FUND ASSETS.—The Board
may request the Secretary of the Treasury to invest such portion
of the Stabilization Fund as is not, in the Board’s judgment,
required to meet the current needs of the Stabilization Fund. Such
investments shall be made by the Secretary of the Treasury in
public debt securities, with maturities suitable to the needs of
the Stabilization Fund, as determined by the Board, and bearing
interest at a rate determined by the Secretary of the Treasury,
taking into consideration current market yields on outstanding
marketable obligations of the United States of comparable maturity.
‘‘(g) REPORTS.—The Board shall submit an annual report to
Congress on the financial condition and the results of the operation
of the Stabilization Fund. The report is due to Congress within
30 days after each anniversary of the first advance made under
subsection (c)(1). Because the Fund will use advances from the
Treasury to meet corporate stabilization costs with full repayment
of borrowings to Treasury at the Board’s discretion not due until
7 years from the initial advance, to the extent operating expenses
of the Fund exceed income, the financial condition of the Fund
may reflect a deficit. With planned and required future repayments,
the Board shall resolve all deficits prior to termination of the
Fund.
‘‘(h) CLOSING OF STABILIZATION FUND.—Within 90 days following the seventh anniversary of the initial Stabilization Fund
advance, or earlier at the Board’s discretion, the Board shall distribute any funds, property, or other assets remaining in the Stabilization Fund to the Insurance Fund and shall close the Stabilization Fund. If the Board extends the final repayment date as permitted under subsection (c)(3), the mandatory date for closing the
Stabilization Fund shall be extended by the same number of days.’’.
(2) CONFORMING AMENDMENT.—Section 202(c)(3)(A) of the
Federal Credit Union Act (12 U.S.C. 1782(c)(3)(A)) is amended
by inserting ‘‘, subject to the requirements of section 217(e),’’
after ‘‘The Board shall’’.

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123 STAT. 1654
12 USC 5220a.

PUBLIC LAW 111–22—MAY 20, 2009

SEC. 205. APPLICATION OF GSE CONFORMING LOAN LIMIT TO MORTGAGES ASSISTED WITH TARP FUNDS.

In making any assistance available to prevent and mitigate
foreclosures on residential properties, including any assistance for
mortgage modifications, using any amounts made available to the
Secretary of the Treasury under title I of the Emergency Economic
Stabilization Act of 2008, the Secretary shall provide that the
limitation on the maximum original principal obligation of a mortgage that may be modified, refinanced, made, guaranteed, insured,
or otherwise assisted, using such amounts shall not be less than
the dollar amount limitation on the maximum original principal
obligation of a mortgage that may be purchased by the Federal
Home Loan Mortgage Corporation that is in effect, at the time
that the mortgage is modified, refinanced, made, guaranteed,
insured, or otherwise assisted using such amounts, for the area
in which the property involved in the transaction is located.
SEC. 206. MORTGAGES ON CERTAIN HOMES ON LEASED LAND.

Section 255(b)(4) of the National Housing Act (12 U.S.C. 1715z–
20(b)(4)) is amended by striking subparagraph (B) and inserting:
‘‘(B) under a lease that has a term that ends no earlier
than the minimum number of years, as specified by the
Secretary, beyond the actuarial life expectancy of the mortgagor or comortgagor, whichever is the later date.’’.
SEC. 207. SENSE OF CONGRESS REGARDING MORTGAGE REVENUE
BOND PURCHASES.

It is the sense of the Congress that the Secretary of the
Treasury should use amounts made available in this Act to purchase
mortgage revenue bonds for single-family housing issued through
State housing finance agencies and through units of local government and agencies thereof.

TITLE III—MORTGAGE FRAUD TASK
FORCE

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SEC. 301. SENSE OF CONGRESS ON ESTABLISHMENT OF A NATIONWIDE
MORTGAGE FRAUD TASK FORCE.

(a) IN GENERAL.—It is the sense of the Congress that the
Department of Justice establish a Nationwide Mortgage Fraud Task
Force (hereinafter referred to in this section as the ‘‘Task Force’’)
to address mortgage fraud in the United States.
(b) SUPPORT.—If the Department of Justice establishes the
Task Force referred to in subsection (a), it is the sense of the
Congress that the Attorney General should provide the Task Force
with the appropriate staff, administrative support, and other
resources necessary to carry out the duties of the Task Force.
(c) MANDATORY FUNCTIONS.—If the Department of Justice
establishes the Task Force referred to in subsection (a), it is the
sense of the Congress that the Attorney General should—
(1) establish coordinating entities, and solicit the voluntary
participation of Federal, State, and local law enforcement and
prosecutorial agencies in such entities, to organize initiatives
to address mortgage fraud, including initiatives to enforce State
mortgage fraud laws and other related Federal and State laws;

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1655

(2) provide training to Federal, State, and local law enforcement and prosecutorial agencies with respect to mortgage fraud,
including related Federal and State laws;
(3) collect and disseminate data with respect to mortgage
fraud, including Federal, State, and local data relating to mortgage fraud investigations and prosecutions; and
(4) perform other functions determined by the Attorney
General to enhance the detection of, prevention of, and response
to mortgage fraud in the United States.
(d) OPTIONAL FUNCTIONS.—If the Department of Justice establishes the Task Force referred to in subsection (a), it is the sense
of the Congress that the Task Force should—
(1) initiate and coordinate Federal mortgage fraud investigations and, through the coordinating entities described under
subsection (c), State and local mortgage fraud investigations;
(2) establish a toll-free hotline for—
(A) reporting mortgage fraud;
(B) providing the public with access to information
and resources with respect to mortgage fraud; and
(C) directing reports of mortgage fraud to the appropriate Federal, State, and local law enforcement and prosecutorial agency, including to the appropriate branch of
the Task Force established under subsection (d);
(3) create a database with respect to suspensions and revocations of mortgage industry licenses and certifications to
facilitate the sharing of such information by States;
(4) make recommendations with respect to the need for
and resources available to provide the equipment and training
necessary for the Task Force to combat mortgage fraud; and
(5) propose legislation to Federal, State, and local legislative bodies with respect to the elimination and prevention of
mortgage fraud, including measures to address mortgage loan
procedures and property appraiser practices that provide
opportunities for mortgage fraud.

TITLE IV—FORECLOSURE
MORATORIUM PROVISIONS

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SEC. 401. SENSE OF THE CONGRESS ON FORECLOSURES.

(a) IN GENERAL.—It is the sense of the Congress that mortgage
holders, institutions, and mortgage servicers should not initiate
a foreclosure proceeding or a foreclosure sale on any homeowner
until the foreclosure mitigation provisions, like the Hope for Homeowners program, as required under title II, and the President’s
‘‘Homeowner Affordability and Stability Plan’’ have been implemented and determined to be operational by the Secretary of
Housing and Urban Development and the Secretary of the Treasury.
(b) SCOPE OF MORATORIUM.—The foreclosure moratorium
referred to in subsection (a) should apply only for first mortgages
secured by the owner’s principal dwelling.
(c) FHA-REGULATED LOAN MODIFICATION AGREEMENTS.—If a
mortgage holder, institution, or mortgage servicer to which subsection (a) applies reaches a loan modification agreement with
a homeowner under the auspices of the Federal Housing Administration before any plan referred to in such subsection takes effect,

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PUBLIC LAW 111–22—MAY 20, 2009

subsection (a) shall cease to apply to such institution as of the
effective date of the loan modification agreement.
(d) DUTY OF CONSUMER TO MAINTAIN PROPERTY.—Any homeowner for whose benefit any foreclosure proceeding or sale is barred
under subsection (a) from being instituted, continued, or consummated with respect to any homeowner mortgage should not,
with respect to any property securing such mortgage, destroy, damage, or impair such property, allow the property to deteriorate,
or commit waste on the property.
(e) DUTY OF CONSUMER TO RESPOND TO REASONABLE
INQUIRIES.—Any homeowner for whose benefit any foreclosure proceeding or sale is barred under subsection (a) from being instituted,
continued, or consummated with respect to any homeowner mortgage should respond to reasonable inquiries from a creditor or
servicer during the period during which such foreclosure proceeding
or sale is barred.
Public-Private
Investment
Program
Improvement
and Oversight
Act of 2009.
12 USC 5231a.

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SEC. 402. PUBLIC-PRIVATE INVESTMENT PROGRAM; ADDITIONAL
APPROPRIATIONS FOR THE SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM.

(a) SHORT TITLE.—This section may be cited as the ‘‘PublicPrivate Investment Program Improvement and Oversight Act of
2009’’.
(b) PUBLIC-PRIVATE INVESTMENT PROGRAM.—
(1) IN GENERAL.—Any program established by the Federal
Government to create a public-private investment fund shall—
(A) in consultation with the Special Inspector General
of the Trouble Asset Relief Program (in this section referred
to as the ‘‘Special Inspector General’’), impose strict conflict
of interest rules on managers of public-private investment
funds to ensure that securities bought by the funds are
purchased in arms-length transactions, that fiduciary
duties to public and private investors in the fund are
not violated, and that there is full disclosure of relevant
facts and financial interests (which conflict of interest rules
shall be implemented by the manager of a public-private
investment fund prior to such fund receiving Federal
Government financing);
(B) require each public-private investment fund to
make a quarterly report to the Secretary of the Treasury
(in this section referred to as the ‘‘Secretary’’) that discloses
the 10 largest positions of such fund (which reports shall
be publicly disclosed at such time as the Secretary of the
Treasury determines that such disclosure will not harm
the ongoing business operations of the fund);
(C) allow the Special Inspector General access to all
books and records of a public-private investment fund,
including all records of financial transactions in machine
readable form, and the confidentiality of all such information shall be maintained by the Special Inspector General;
(D) require each manager of a public-private investment fund to retain all books, documents, and records
relating to such public-private investment fund, including
electronic messages;
(E) require each manager of a public-private investment fund to acknowledge, in writing, a fiduciary duty
to both the public and private investors in such fund;

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123 STAT. 1657

(F) require each manager of a public-private investment fund to develop a robust ethics policy that includes
methods to ensure compliance with such policy;
(G) require strict investor screening procedures for
public-private investment funds; and
(H) require each manager of a public-private fund to
identify for the Secretary, on a periodic basis, each investor
that, individually or together with affiliates, directly or
indirectly, holds equity interests equal to at least 10 percent
of the equity interest of the fund including if such interests
are held in a vehicle formed for the purpose of directly
or indirectly investing in the fund.
(2) INTERACTION BETWEEN PUBLIC-PRIVATE INVESTMENT
FUNDS AND THE TERM-ASSET BACKED SECURITIES LOAN
FACILITY.—The Secretary shall consult with the Special
Inspector General and shall issue regulations governing the
interaction of the Public-Private Investment Program, the
Term-Asset Backed Securities Loan Facility, and other similar
public-private investment programs. Such regulations shall
address concerns regarding the potential for excessive leverage
that could result from interactions between such programs.
(3) REPORT.—Not later than 60 days after the date of
the establishment of a program described in paragraph (1),
the Special Inspector General shall submit a report to Congress
on the implementation of this section.
(c) ADDITIONAL APPROPRIATIONS FOR THE SPECIAL INSPECTOR
GENERAL.—
(1) IN GENERAL.—Of amounts made available under section
115(a) of the Emergency Economic Stabilization Act of 2008
(Public Law 110–343), $15,000,000 shall be made available
to the Special Inspector General, which shall be in addition
to amounts otherwise made available to the Special Inspector
General.
(2) PRIORITIES.—In utilizing funds made available under
this section, the Special Inspector General shall prioritize the
performance of audits or investigations of recipients of nonrecourse Federal loans made under any program that is funded
in whole or in part by funds appropriated under the Emergency
Economic Stabilization Act of 2008, to the extent that such
priority is consistent with other aspects of the mission of the
Special Inspector General. Such audits or investigations shall
determine the existence of any collusion between the loan
recipient and the seller or originator of the asset used as
loan collateral, or any other conflict of interest that may have
led the loan recipient to deliberately overstate the value of
the asset used as loan collateral.
(d) RULE OF CONSTRUCTION.—Notwithstanding any other provision of law, nothing in this section shall be construed to apply
to any activity of the Federal Deposit Insurance Corporation in
connection with insured depository institutions, as described in
section 13(c)(2)(B) of the Federal Deposit Insurance Act.
(e) DEFINITION.—In this section, the term ‘‘public-private investment fund’’ means a financial vehicle that is—
(1) established by the Federal Government to purchase
pools of loans, securities, or assets from a financial institution
described in section 101(a)(1) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a)(1)); and

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PUBLIC LAW 111–22—MAY 20, 2009

(2) funded by a combination of cash or equity from private
investors and funds provided by the Secretary of the Treasury
or funds appropriated under the Emergency Economic Stabilization Act of 2008.
(f) OFFSET OF COSTS OF PROGRAM CHANGES.—Notwithstanding
the amendment made by section 202(b) of this Act, paragraph
(3) of section 115(a) of the Emergency Economic Stabilization Act
of 2008 (12 U.S.C. 5225) is amended by inserting ‘‘, as such amount
is reduced by $1,259,000,000,’’ after ‘‘$700,000,000,000’’.
(g) REGULATIONS.—The Secretary of the Treasury may prescribe
such regulations or other guidance as may be necessary or appropriate to define terms or carry out the authorities or purposes
of this section.
SEC. 403. REMOVAL OF REQUIREMENT TO LIQUIDATE WARRANTS
UNDER THE TARP.

Section 111(g) of the Emergency Economic Stabilization Act
of 2008 (12 U.S.C. 5221(g)) is amended by striking ‘‘shall liquidate
warrants associated with such assistance at the current market
price’’ and inserting ‘‘, at the market price, may liquidate warrants
associated with such assistance’’.
SEC. 404. NOTIFICATION OF SALE OR TRANSFER OF MORTGAGE LOANS.

Deadline.

(a) IN GENERAL.—Section 131 of the Truth in Lending Act
(15 U.S.C. 1641) is amended by adding at the end the following:
‘‘(g) NOTICE OF NEW CREDITOR.—
‘‘(1) IN GENERAL.—In addition to other disclosures required
by this title, not later than 30 days after the date on which
a mortgage loan is sold or otherwise transferred or assigned
to a third party, the creditor that is the new owner or assignee
of the debt shall notify the borrower in writing of such transfer,
including—
‘‘(A) the identity, address, telephone number of the
new creditor;
‘‘(B) the date of transfer;
‘‘(C) how to reach an agent or party having authority
to act on behalf of the new creditor;
‘‘(D) the location of the place where transfer of ownership of the debt is recorded; and
‘‘(E) any other relevant information regarding the new
creditor.
‘‘(2) DEFINITION.—As used in this subsection, the term
‘mortgage loan’ means any consumer credit transaction that
is secured by the principal dwelling of a consumer.’’.
(b) PRIVATE RIGHT OF ACTION.—Section 130(a) of the Truth
in Lending Act (15 U.S.C. 1640(a)) is amended by inserting ‘‘subsection (f) or (g) of section 131,’’ after ‘‘section 125,’’.

TITLE V—FARM LOAN RESTRUCTURING

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SEC. 501. CONGRESSIONAL OVERSIGHT PANEL SPECIAL REPORT.

Section 125(b) of the Emergency Economic Stabilization Act
of 2008 (12 U.S.C. 5233(b)) is amended by adding at the end
the following:

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‘‘(3) SPECIAL REPORT ON FARM LOAN RESTRUCTURING.—Not
later than 60 days after the date of enactment of this paragraph, the Oversight Panel shall submit a special report on
farm loan restructuring that—
‘‘(A) analyzes the state of the commercial farm credit
markets and the use of loan restructuring as an alternative
to foreclosure by recipients of financial assistance under
the Troubled Asset Relief Program; and
‘‘(B) includes an examination of and recommendation
on the different methods for farm loan restructuring that
could be used as part of a foreclosure mitigation program
for farm loans made by recipients of financial assistance
under the Troubled Asset Relief Program, including any
programs for direct loan restructuring or modification carried out by the Farm Service Agency of the Department
of Agriculture, the farm credit system, and the Making
Home Affordable Program of the Department of the
Treasury.’’.

TITLE VI—ENHANCED OVERSIGHT OF
THE TROUBLED ASSET RELIEF PROGRAM

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SEC. 601. ENHANCED OVERSIGHT OF THE TROUBLED ASSET RELIEF
PROGRAM.

Section 116 of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5226) is amended—
(1) in subsection (a)(1)(A)—
(A) in clause (iii), by striking ‘‘and’’ at the end;
(B) in clause (iv), by striking the period at the end
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(v) public accountability for the exercise of such
authority, including with respect to actions taken by
those entities participating in programs established
under this Act.’’; and
(2) in subsection (a)(2)—
(A) by redesignating subparagraph (C) as subparagraph (F); and
(B) by striking subparagraphs (A) and (B) and inserting
the following:
‘‘(A) DEFINITION.—In this paragraph, the term ‘governmental unit’ has the meaning given under section 101(27)
of title 11, United States Code, and does not include any
insured depository institution as defined under section 3
of the Federal Deposit Insurance Act (12 U.S.C. 8113).
‘‘(B) GAO PRESENCE.—The Secretary shall provide the
Comptroller General with appropriate space and facilities
in the Department of the Treasury as necessary to facilitate
oversight of the TARP until the termination date established in section 5230 of this title.
‘‘(C) ACCESS TO RECORDS.—
‘‘(i) IN GENERAL.—Notwithstanding any other
provision of law, and for purposes of reviewing the
performance of the TARP, the Comptroller General

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123 STAT. 1660

PUBLIC LAW 111–22—MAY 20, 2009
shall have access, upon request, to any information,
data, schedules, books, accounts, financial records,
reports, files, electronic communications, or other
papers, things, or property belonging to or in use by
the TARP, any entity established by the Secretary
under this Act, any entity that is established by a
Federal reserve bank and receives funding from the
TARP, or any entity (other than a governmental unit)
participating in a program established under the
authority of this Act, and to the officers, employees,
directors, independent public accountants, financial
advisors and any and all other agents and representatives thereof, at such time as the Comptroller General
may request.
‘‘(ii) VERIFICATION.—The Comptroller General shall
be afforded full facilities for verifying transactions with
the balances or securities held by, among others,
depositories, fiscal agents, and custodians.
‘‘(iii) COPIES.—The Comptroller General may make
and retain copies of such books, accounts, and other
records as the Comptroller General determines appropriate.
‘‘(D) AGREEMENT BY ENTITIES.—Each contract, term
sheet, or other agreement between the Secretary or the
TARP (or any TARP vehicle, officer, director, employee,
independent public accountant, financial advisor, or other
TARP agent or representative) and an entity (other than
a governmental unit) participating in a program established under this Act shall provide for access by the Comptroller General in accordance with this section.
‘‘(E) RESTRICTION ON PUBLIC DISCLOSURE.—
‘‘(i) IN GENERAL.—The Comptroller General may
not publicly disclose proprietary or trade secret
information obtained under this section.
‘‘(ii) EXCEPTION FOR CONGRESSIONAL COMMITTEES.—This subparagraph does not limit disclosures
to congressional committees or members thereof having
jurisdiction over a private or public entity referred
to under subparagraph (C).
‘‘(iii) RULE OF CONSTRUCTION.—Nothing in this section shall be construed to alter or amend the prohibitions against the disclosure of trade secrets or other
information prohibited by section 1905 of title 18,
United States Code, section 714(c) of title 31, United
States Code, or other applicable provisions of law.’’.

TITLE VII—PROTECTING TENANTS AT
FORECLOSURE ACT

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Protecting
Tenants at
Foreclosure Act
of 2009.

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12 USC 5201
note.

SEC. 701. SHORT TITLE.

12 USC 5220
note.

SEC. 702. EFFECT OF FORECLOSURE ON PREEXISTING TENANCY.

16:47 May 28, 2009

This title may be cited as the ‘‘Protecting Tenants at Foreclosure Act of 2009’’.
(a) IN GENERAL.—In the case of any foreclosure on a federallyrelated mortgage loan or on any dwelling or residential real property

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1661

after the date of enactment of this title, any immediate successor
in interest in such property pursuant to the foreclosure shall assume
such interest subject to—
(1) the provision, by such successor in interest of a notice
to vacate to any bona fide tenant at least 90 days before
the effective date of such notice; and
(2) the rights of any bona fide tenant, as of the date
of such notice of foreclosure—
(A) under any bona fide lease entered into before the
notice of foreclosure to occupy the premises until the end
of the remaining term of the lease, except that a successor
in interest may terminate a lease effective on the date
of sale of the unit to a purchaser who will occupy the
unit as a primary residence, subject to the receipt by the
tenant of the 90 day notice under paragraph (1); or
(B) without a lease or with a lease terminable at will
under State law, subject to the receipt by the tenant of
the 90 day notice under subsection (1),
except that nothing under this section shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer time
periods or other additional protections for tenants.
(b) BONA FIDE LEASE OR TENANCY.—For purposes of this section, a lease or tenancy shall be considered bona fide only if—
(1) the mortgagor or the child, spouse, or parent of the
mortgagor under the contract is not the tenant;
(2) the lease or tenancy was the result of an arms-length
transaction; and
(3) the lease or tenancy requires the receipt of rent that
is not substantially less than fair market rent for the property
or the unit’s rent is reduced or subsidized due to a Federal,
State, or local subsidy.
(c) DEFINITION.—For purposes of this section, the term ‘‘federally-related mortgage loan’’ has the same meaning as in section
3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C.
2602).

Notice.
Deadline.

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SEC. 703. EFFECT OF FORECLOSURE ON SECTION 8 TENANCIES.

Section 8(o)(7) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)(7)) is amended—
(1) by inserting before the semicolon in subparagraph (C)
the following: ‘‘and in the case of an owner who is an immediate
successor in interest pursuant to foreclosure during the term
of the lease vacating the property prior to sale shall not constitute other good cause, except that the owner may terminate
the tenancy effective on the date of transfer of the unit to
the owner if the owner—
‘‘(i) will occupy the unit as a primary residence;
and
‘‘(ii) has provided the tenant a notice to vacate
at least 90 days before the effective date of such
notice.’’; and
(2) by inserting at the end of subparagraph (F) the following: ‘‘In the case of any foreclosure on any federally-related
mortgage loan (as that term is defined in section 3 of the
Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602))
or on any residential real property in which a recipient of

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123 STAT. 1662

PUBLIC LAW 111–22—MAY 20, 2009
assistance under this subsection resides, the immediate successor in interest in such property pursuant to the foreclosure
shall assume such interest subject to the lease between the
prior owner and the tenant and to the housing assistance
payments contract between the prior owner and the public
housing agency for the occupied unit, except that this provision
and the provisions related to foreclosure in subparagraph (C)
shall not shall not affect any State or local law that provides
longer time periods or other additional protections for tenants.’’.

12 USC 5201
note.
12 USC 5220
note.
42 USC 1437f
and note.

SEC. 704. SUNSET.

This title, and any amendments made by this title are repealed,
and the requirements under this title shall terminate, on December
31, 2012.

TITLE VIII—COMPTROLLER GENERAL
ADDITIONAL AUDIT AUTHORITIES

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SEC. 801. COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES.

(a) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.—
Section 714 of title 31, United States Code, is amended—
(1) in subsection (a), by striking ‘‘Federal Reserve Board,’’
and inserting ‘‘Board of Governors of the Federal Reserve
System (in this section referred to as the ‘Board’),’’; and
(2) in subsection (b)—
(A) in the matter preceding paragraph (1), by striking
‘‘Federal Reserve Board,’’ and inserting ‘‘Board’’; and
(B) in paragraph (4), by striking ‘‘of Governors’’.
(b) CONFIDENTIAL INFORMATION.—Section 714(c) of title 31,
United States Code, is amended by striking paragraph (3) and
inserting the following:
‘‘(3) Except as provided under paragraph (4), an officer
or employee of the Government Accountability Office may not
disclose to any person outside the Government Accountability
Office information obtained in audits or examinations conducted
under subsection (e) and maintained as confidential by the
Board or the Federal reserve banks.
‘‘(4) This subsection shall not—
‘‘(A) authorize an officer or employee of an agency
to withhold information from any committee or subcommittee of jurisdiction of Congress, or any member of
such committee or subcommittee; or
‘‘(B) limit any disclosure by the Government Accountability Office to any committee or subcommittee of jurisdiction of Congress, or any member of such committee or
subcommittee.’’.
(c) ACCESS TO RECORDS.—Section 714(d) of title 31, United
States Code, is amended—
(1) in paragraph (1), by inserting ‘‘The Comptroller General
shall have access to the officers, employees, contractors, and
other agents and representatives of an agency and any entity
established by an agency at any reasonable time as the Comptroller General may request. The Comptroller General may
make and retain copies of such books, accounts, and other
records as the Comptroller General determines appropriate.’’
after the first sentence;

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1663

(2) in paragraph (2), by inserting ‘‘, copies of any record,’’
after ‘‘records’’; and
(3) by adding at the end the following:
‘‘(3)(A) For purposes of conducting audits and examinations
under subsection (e), the Comptroller General shall have access,
upon request, to any information, data, schedules, books,
accounts, financial records, reports, files, electronic communications, or other papers, things or property belonging to or in
use by—
‘‘(i) any entity established by any action taken by the
Board described under subsection (e);
‘‘(ii) any entity receiving assistance from any action
taken by the Board described under subsection (e), to the
extent that the access and request relates to that assistance; and
‘‘(iii) the officers, directors, employees, independent
public accountants, financial advisors and any and all representatives of any entity described under clause (i) or
(ii); to the extent that the access and request relates to
that assistance;
‘‘(B) The Comptroller General shall have access as provided
under subparagraph (A) at such time as the Comptroller General may request.
‘‘(C) Each contract, term sheet, or other agreement between
the Board or any Federal reserve bank (or any entity established by the Board or any Federal reserve bank) and an
entity receiving assistance from any action taken by the Board
described under subsection (e) shall provide for access by the
Comptroller General in accordance with this paragraph.’’.
(d) AUDITS OF CERTAIN ACTIONS OF THE BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM.—Section 714 of title 31, United
States Code, is amended by adding at the end the following:
‘‘(e) Notwithstanding subsection (b), the Comptroller General
may conduct audits, including onsite examinations when the Comptroller General determines such audits and examinations are appropriate, of any action taken by the Board under the third undesignated paragraph of section 13 of the Federal Reserve Act (12
U.S.C. 343); with respect to a single and specific partnership or
corporation.’’.

DIVISION B—HOMELESSNESS REFORM
SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This division may be cited as the ‘‘Homeless
Emergency Assistance and Rapid Transition to Housing Act of
2009’’.
(b) TABLE OF CONTENTS.—The table of contents for this division
is as follows:

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Sec.
Sec.
Sec.
Sec.

1001.
1002.
1003.
1004.

Determination.

Homeless
Emergency
Assistance and
Rapid Transition
to Housing Act of
2009.
42 USC 11301
note.

DIVISION B—HOMELESSNESS REFORM
Short title; table of contents.
Findings and purposes.
Definition of homelessness.
United States Interagency Council on Homelessness.

TITLE I—HOUSING ASSISTANCE GENERAL PROVISIONS
Sec. 1101. Definitions.
Sec. 1102. Community homeless assistance planning boards.

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123 STAT. 1664

PUBLIC LAW 111–22—MAY 20, 2009

Sec. 1103. General provisions.
Sec. 1104. Protection of personally identifying information by victim service providers.
Sec. 1105. Authorization of appropriations.
Sec.
Sec.
Sec.
Sec.
Sec.

1201.
1202.
1203.
1204.
1205.

TITLE II—EMERGENCY SOLUTIONS GRANTS PROGRAM
Grant assistance.
Eligible activities.
Participation in Homeless Management Information System.
Administrative provision.
GAO study of administrative fees.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

1301.
1302.
1303.
1304.
1305.
1306.

TITLE III—CONTINUUM OF CARE PROGRAM
Continuum of care.
Eligible activities.
High performing communities.
Program requirements.
Selection criteria, allocation amounts, and funding.
Research.

TITLE IV—RURAL HOUSING STABILITY ASSISTANCE PROGRAM
Sec. 1401. Rural housing stability assistance.
Sec. 1402. GAO study of homelessness and homeless assistance in rural areas.
Sec.
Sec.
Sec.
Sec.
Sec.
42 USC 11301
note.

1501.
1502.
1503.
1504.
1505.

TITLE V—REPEALS AND CONFORMING AMENDMENTS
Repeals.
Conforming amendments.
Effective date.
Regulations.
Amendment to table of contents.

SEC. 1002. FINDINGS AND PURPOSES.

(a) FINDINGS.—The Congress finds that—
(1) a lack of affordable housing and limited scale of housing
assistance programs are the primary causes of homelessness;
and
(2) homelessness affects all types of communities in the
United States, including rural, urban, and suburban areas.
(b) PURPOSES.—The purposes of this division are—
(1) to consolidate the separate homeless assistance programs carried out under title IV of the McKinney-Vento Homeless Assistance Act (consisting of the supportive housing program and related innovative programs, the safe havens program, the section 8 assistance program for single-room occupancy dwellings, and the shelter plus care program) into a
single program with specific eligible activities;
(2) to codify in Federal law the continuum of care planning
process as a required and integral local function necessary
to generate the local strategies for ending homelessness; and
(3) to establish a Federal goal of ensuring that individuals
and families who become homeless return to permanent housing
within 30 days.

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SEC. 1003. DEFINITION OF HOMELESSNESS.

(a) IN GENERAL.—Section 103 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11302) is amended—
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d); and
(2) by striking subsection (a) and inserting the following:
‘‘(a) IN GENERAL.—For purposes of this Act, the terms ‘homeless’, ‘homeless individual’, and ‘homeless person’ means—
‘‘(1) an individual or family who lacks a fixed, regular,
and adequate nighttime residence;

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1665

‘‘(2) an individual or family with a primary nighttime residence that is a public or private place not designed for or
ordinarily used as a regular sleeping accommodation for human
beings, including a car, park, abandoned building, bus or train
station, airport, or camping ground;
‘‘(3) an individual or family living in a supervised publicly
or privately operated shelter designated to provide temporary
living arrangements (including hotels and motels paid for by
Federal, State, or local government programs for low-income
individuals or by charitable organizations, congregate shelters,
and transitional housing);
‘‘(4) an individual who resided in a shelter or place not
meant for human habitation and who is exiting an institution
where he or she temporarily resided;
‘‘(5) an individual or family who—
‘‘(A) will imminently lose their housing, including
housing they own, rent, or live in without paying rent,
are sharing with others, and rooms in hotels or motels
not paid for by Federal, State, or local government programs for low-income individuals or by charitable organizations, as evidenced by—
‘‘(i) a court order resulting from an eviction action
that notifies the individual or family that they must
leave within 14 days;
‘‘(ii) the individual or family having a primary
nighttime residence that is a room in a hotel or motel
and where they lack the resources necessary to reside
there for more than 14 days; or
‘‘(iii) credible evidence indicating that the owner
or renter of the housing will not allow the individual
or family to stay for more than 14 days, and any
oral statement from an individual or family seeking
homeless assistance that is found to be credible shall
be considered credible evidence for purposes of this
clause;
‘‘(B) has no subsequent residence identified; and
‘‘(C) lacks the resources or support networks needed
to obtain other permanent housing; and
‘‘(6) unaccompanied youth and homeless families with children and youth defined as homeless under other Federal statutes who—
‘‘(A) have experienced a long term period without living
independently in permanent housing,
‘‘(B) have experienced persistent instability as measured by frequent moves over such period, and
‘‘(C) can be expected to continue in such status for
an extended period of time because of chronic disabilities,
chronic physical health or mental health conditions, substance addiction, histories of domestic violence or childhood
abuse, the presence of a child or youth with a disability,
or multiple barriers to employment.
‘‘(b) DOMESTIC VIOLENCE AND OTHER DANGEROUS OR LIFETHREATENING CONDITIONS.—Notwithstanding any other provision
of this section, the Secretary shall consider to be homeless any
individual or family who is fleeing, or is attempting to flee, domestic
violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions in the individual’s or family’s

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123 STAT. 1666

Deadline.
42 USC 11302
note.

Effective date.
42 USC 11302
note.

PUBLIC LAW 111–22—MAY 20, 2009

current housing situation, including where the health and safety
of children are jeopardized, and who have no other residence and
lack the resources or support networks to obtain other permanent
housing.’’.
(b) REGULATIONS.—Not later than the expiration of the 6-month
period beginning upon the date of the enactment of this division,
the Secretary of Housing and Urban Development shall issue regulations that provide sufficient guidance to recipients of funds under
title IV of the McKinney-Vento Homeless Assistance Act to allow
uniform and consistent implementation of the requirements of section 103 of such Act, as amended by subsection (a) of this section.
This subsection shall take effect on the date of the enactment
of this division.
(c) CLARIFICATION OF EFFECT ON OTHER LAWS.—This section
and the amendments made by this section to section 103 of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302) may
not be construed to affect, alter, limit, annul, or supersede any
other provision of Federal law providing a definition of ‘‘homeless’’,
‘‘homeless individual’’, or ‘‘homeless person’’ for purposes other than
such Act, except to the extent that such provision refers to such
section 103 or the definition provided in such section 103.

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SEC. 1004. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS.

(a) IN GENERAL.—Title II of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11311 et seq.) is amended—
(1) in section 201 (42 U.S.C. 11311), by inserting before
the period at the end the following ‘‘whose mission shall be
to coordinate the Federal response to homelessness and to
create a national partnership at every level of government
and with the private sector to reduce and end homelessness
in the nation while maximizing the effectiveness of the Federal
Government in contributing to the end of homelessness’’;
(2) in section 202 (42 U.S.C. 11312)—
(A) in subsection (a)—
(i) by redesignating paragraph (16) as paragraph
(22); and
(ii) by inserting after paragraph (15) the following:
‘‘(16) The Commissioner of Social Security, or the designee
of the Commissioner.
‘‘(17) The Attorney General of the United States, or the
designee of the Attorney General.
‘‘(18) The Director of the Office of Management and Budget,
or the designee of the Director.
‘‘(19) The Director of the Office of Faith-Based and Community Initiatives, or the designee of the Director.
‘‘(20) The Director of USA FreedomCorps, or the designee
of the Director.’’;
(B) in subsection (c), by striking ‘‘annually’’ and
inserting ‘‘four times each year, and the rotation of the
positions of Chairperson and Vice Chairperson required
under subsection (b) shall occur at the first meeting of
each year’’; and
(C) by adding at the end the following:
‘‘(e) ADMINISTRATION.—The Executive Director of the Council
shall report to the Chairman of the Council.’’;
(3) in section 203(a) (42 U.S.C. 11313(a))—

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123 STAT. 1667

(A) by redesignating paragraphs (1), (2), (3), (4), (5),
(6), and (7) as paragraphs (2), (3), (4), (5), (9), (10), and
(11), respectively;
(B) by inserting before paragraph (2), as so redesignated by subparagraph (A), the following:
‘‘(1) not later than 12 months after the date of the enactment of the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009, develop, make available for public
comment, and submit to the President and to Congress a
National Strategic Plan to End Homelessness, and shall update
such plan annually;’’;
(C) in paragraph (5), as redesignated by subparagraph
(A), by striking ‘‘at least 2, but in no case more than
5’’ and inserting ‘‘not less than 5, but in no case more
than 10’’;
(D) by inserting after paragraph (5), as so redesignated
by subparagraph (A), the following:
‘‘(6) encourage the creation of State Interagency Councils
on Homelessness and the formulation of jurisdictional 10-year
plans to end homelessness at State, city, and county levels;
‘‘(7) annually obtain from Federal agencies their identification of consumer-oriented entitlement and other resources for
which persons experiencing homelessness may be eligible and
the agencies’ identification of improvements to ensure access;
develop mechanisms to ensure access by persons experiencing
homelessness to all Federal, State, and local programs for which
the persons are eligible, and to verify collaboration among
entities within a community that receive Federal funding under
programs targeted for persons experiencing homelessness, and
other programs for which persons experiencing homelessness
are eligible, including mainstream programs identified by the
Government Accountability Office in the reports entitled
‘Homelessness: Coordination and Evaluation of Programs Are
Essential’, issued February 26, 1999, and ‘Homelessness: Barriers to Using Mainstream Programs’, issued July 6, 2000;
‘‘(8) conduct research and evaluation related to its functions
as defined in this section;
‘‘(9) develop joint Federal agency and other initiatives to
fulfill the goals of the agency;’’;
(E) in paragraph (10), as so redesignated by subparagraph (A), by striking ‘‘and’’ at the end;
(F) in paragraph (11), as so redesignated by subparagraph (A), by striking the period at the end and inserting
a semicolon;
(G) by adding at the end the following new paragraphs:
‘‘(12) develop constructive alternatives to criminalizing
homelessness and laws and policies that prohibit sleeping,
feeding, sitting, resting, or lying in public spaces when there
are no suitable alternatives, result in the destruction of a
homeless person’s property without due process, or are selectively enforced against homeless persons; and
‘‘(13) not later than the expiration of the 6-month period
beginning upon completion of the study requested in a letter
to the Acting Comptroller General from the Chair and Ranking
Member of the House Financial Services Committee and several
other members regarding various definitions of homelessness
in Federal statutes, convene a meeting of representatives of

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Public
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Strategic plan.

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PUBLIC LAW 111–22—MAY 20, 2009
all Federal agencies and committees of the House of Representatives and the Senate having jurisdiction over any Federal
program to assist homeless individuals or families, local and
State governments, academic researchers who specialize in
homelessness, nonprofit housing and service providers that
receive funding under any Federal program to assist homeless
individuals or families, organizations advocating on behalf of
such nonprofit providers and homeless persons receiving
housing or services under any such Federal program, and homeless persons receiving housing or services under any such Federal program, at which meeting such representatives shall discuss all issues relevant to whether the definitions of ‘homeless’
under paragraphs (1) through (4) of section 103(a) of the
McKinney-Vento Homeless Assistance Act, as amended by section 1003 of the Homeless Emergency Assistance and Rapid
Transition to Housing Act of 2009, should be modified by the
Congress, including whether there is a compelling need for
a uniform definition of homelessness under Federal law, the
extent to which the differences in such definitions create barriers for individuals to accessing services and to collaboration
between agencies, and the relative availability, and barriers
to access by persons defined as homeless, of mainstream programs identified by the Government Accountability Office in
the two reports identified in paragraph (7) of this subsection;
and shall submit transcripts of such meeting, and any majority
and dissenting recommendations from such meetings, to each
committee of the House of Representatives and the Senate
having jurisdiction over any Federal program to assist homeless
individuals or families not later than the expiration of the
60-day period beginning upon conclusion of such meeting.’’.
(4) in section 203(b)(1) (42 U.S.C. 11313(b))—
(A) by striking ‘‘Federal’’ and inserting ‘‘national’’;
(B) by striking ‘‘; and’’ and inserting ‘‘and pay for
expenses of attendance at meetings which are concerned
with the functions or activities for which the appropriation
is made;’’;
(5) in section 205(d) (42 U.S.C. 11315(d)), by striking ‘‘property.’’ and inserting ‘‘property, both real and personal, public
and private, without fiscal year limitation, for the purpose
of aiding or facilitating the work of the Council.’’; and
(6) by striking section 208 (42 U.S.C. 11318) and inserting
the following:

‘‘SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

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42 USC 11311
note.

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‘‘There are authorized to be appropriated to carry out this
title $3,000,000 for fiscal year 2010 and such sums as may be
necessary for fiscal years 2011. Any amounts appropriated to carry
out this title shall remain available until expended.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect on, and shall apply beginning on, the date
of the enactment of this division.

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1669

TITLE I—HOUSING ASSISTANCE
GENERAL PROVISIONS
SEC. 1101. DEFINITIONS.

Subtitle A of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361 et seq.) is amended—
(1) by striking the subtitle heading and inserting the following:

‘‘Subtitle A—General Provisions’’;
(2) by redesignating sections 401 and 402 (42 U.S.C. 11361,
11362) as sections 403 and 406, respectively; and
(3) by inserting before section 403 (as so redesignated by
paragraph (2) of this section) the following new section:

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‘‘SEC. 401. DEFINITIONS.

42 USC 11360.

‘‘For purposes of this title:
‘‘(1) AT RISK OF HOMELESSNESS.—The term ‘at risk of
homelessness’ means, with respect to an individual or family,
that the individual or family—
‘‘(A) has income below 30 percent of median income
for the geographic area;
‘‘(B) has insufficient resources immediately available
to attain housing stability; and
‘‘(C)(i) has moved frequently because of economic reasons;
‘‘(ii) is living in the home of another because of economic hardship;
‘‘(iii) has been notified that their right to occupy their
current housing or living situation will be terminated;
‘‘(iv) lives in a hotel or motel;
‘‘(v) lives in severely overcrowded housing;
‘‘(vi) is exiting an institution; or
‘‘(vii) otherwise lives in housing that has characteristics
associated with instability and an increased risk of
homelessness.
Such term includes all families with children and youth
defined as homeless under other Federal statutes.
‘‘(2) CHRONICALLY HOMELESS.—
‘‘(A) IN GENERAL.—The term ‘chronically homeless’
means, with respect to an individual or family, that the
individual or family—
‘‘(i) is homeless and lives or resides in a place
not meant for human habitation, a safe haven, or in
an emergency shelter;
‘‘(ii) has been homeless and living or residing in
a place not meant for human habitation, a safe haven,
or in an emergency shelter continuously for at least
1 year or on at least 4 separate occasions in the last
3 years; and
‘‘(iii) has an adult head of household (or a minor
head of household if no adult is present in the household) with a diagnosable substance use disorder,
serious mental illness, developmental disability (as

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defined in section 102 of the Developmental Disabilities
Assistance and Bill of Rights Act of 2000 (42 U.S.C.
15002)), post traumatic stress disorder, cognitive
impairments resulting from a brain injury, or chronic
physical illness or disability, including the co-occurrence of 2 or more of those conditions.
‘‘(B) RULE OF CONSTRUCTION.—A person who currently
lives or resides in an institutional care facility, including
a jail, substance abuse or mental health treatment facility,
hospital or other similar facility, and has resided there
for fewer than 90 days shall be considered chronically
homeless if such person met all of the requirements
described in subparagraph (A) prior to entering that
facility.
‘‘(3) COLLABORATIVE APPLICANT.—The term ‘collaborative
applicant’ means an entity that—
‘‘(A) carries out the duties specified in section 402;
‘‘(B) serves as the applicant for project sponsors who
jointly submit a single application for a grant under subtitle
C in accordance with a collaborative process; and
‘‘(C) if the entity is a legal entity and is awarded
such grant, receives such grant directly from the Secretary.
‘‘(4) COLLABORATIVE APPLICATION.—The term ‘collaborative
application’ means an application for a grant under subtitle
C that—
‘‘(A) satisfies section 422; and
‘‘(B) is submitted to the Secretary by a collaborative
applicant.
‘‘(5) CONSOLIDATED PLAN.—The term ‘Consolidated Plan’
means a comprehensive housing affordability strategy and
community development plan required in part 91 of title 24,
Code of Federal Regulations.
‘‘(6) ELIGIBLE ENTITY.—The term ‘eligible entity’ means,
with respect to a subtitle, a public entity, a private entity,
or an entity that is a combination of public and private entities,
that is eligible to directly receive grant amounts under such
subtitle.
‘‘(7) FAMILIES WITH CHILDREN AND YOUTH DEFINED AS HOMELESS UNDER OTHER FEDERAL STATUTES.—The term ‘families with
children and youth defined as homeless under other Federal
statutes’ means any children or youth that are defined as
‘homeless’ under any Federal statute other than this subtitle,
but are not defined as homeless under section 103, and shall
also include the parent, parents, or guardian of such children
or youth under subtitle B of title VII this Act (42 U.S.C.
11431 et seq.).
‘‘(8) GEOGRAPHIC AREA.—The term ‘geographic area’ means
a State, metropolitan city, urban county, town, village, or other
nonentitlement area, or a combination or consortia of such,
in the United States, as described in section 106 of the Housing
and Community Development Act of 1974 (42 U.S.C. 5306).
‘‘(9) HOMELESS INDIVIDUAL WITH A DISABILITY.—
‘‘(A) IN GENERAL.—The term ‘homeless individual with
a disability’ means an individual who is homeless, as
defined in section 103, and has a disability that—
‘‘(i)(I) is expected to be long-continuing or of indefinite duration;

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123 STAT. 1671

‘‘(II) substantially impedes the individual’s ability
to live independently;
‘‘(III) could be improved by the provision of more
suitable housing conditions; and
‘‘(IV) is a physical, mental, or emotional impairment, including an impairment caused by alcohol or
drug abuse, post traumatic stress disorder, or brain
injury;
‘‘(ii) is a developmental disability, as defined in
section 102 of the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002);
or
‘‘(iii) is the disease of acquired immunodeficiency
syndrome or any condition arising from the etiologic
agency for acquired immunodeficiency syndrome.
‘‘(B) RULE.—Nothing in clause (iii) of subparagraph
(A) shall be construed to limit eligibility under clause (i)
or (ii) of subparagraph (A).
‘‘(10) LEGAL ENTITY.—The term ‘legal entity’ means—
‘‘(A) an entity described in section 501(c)(3) of the
Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) and
exempt from tax under section 501(a) of such Code;
‘‘(B) an instrumentality of State or local government;
or
‘‘(C) a consortium of instrumentalities of State or local
governments that has constituted itself as an entity.
‘‘(11) METROPOLITAN CITY; URBAN COUNTY; NONENTITLEMENT AREA.—The terms ‘metropolitan city’, ‘urban county’, and
‘nonentitlement area’ have the meanings given such terms in
section 102(a) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5302(a)).
‘‘(12) NEW.—The term ‘new’ means, with respect to housing,
that no assistance has been provided under this title for the
housing.
‘‘(13) OPERATING COSTS.—The term ‘operating costs’ means
expenses incurred by a project sponsor operating transitional
housing or permanent housing under this title with respect
to—
‘‘(A) the administration, maintenance, repair, and security of such housing;
‘‘(B) utilities, fuel, furnishings, and equipment for such
housing; or
‘‘(C) coordination of services as needed to ensure longterm housing stability.
‘‘(14) OUTPATIENT HEALTH SERVICES.—The term ‘outpatient
health services’ means outpatient health care services, mental
health services, and outpatient substance abuse services.
‘‘(15) PERMANENT HOUSING.—The term ‘permanent housing’
means community-based housing without a designated length
of stay, and includes both permanent supportive housing and
permanent housing without supportive services.
‘‘(16) PERSONALLY IDENTIFYING INFORMATION.—The term
‘personally identifying information’ means individually identifying information for or about an individual, including information likely to disclose the location of a victim of domestic
violence, dating violence, sexual assault, or stalking,
including—

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‘‘(A) a first and last name;
‘‘(B) a home or other physical address;
‘‘(C) contact information (including a postal, e-mail or
Internet protocol address, or telephone or facsimile
number);
‘‘(D) a social security number; and
‘‘(E) any other information, including date of birth,
racial or ethnic background, or religious affiliation, that,
in combination with any other non-personally identifying
information, would serve to identify any individual.
‘‘(17) PRIVATE NONPROFIT ORGANIZATION.—The term ‘private nonprofit organization’ means an organization—
‘‘(A) no part of the net earnings of which inures to
the benefit of any member, founder, contributor, or individual;
‘‘(B) that has a voluntary board;
‘‘(C) that has an accounting system, or has designated
a fiscal agent in accordance with requirements established
by the Secretary; and
‘‘(D) that practices nondiscrimination in the provision
of assistance.
‘‘(18) PROJECT.—The term ‘project’ means, with respect to
activities carried out under subtitle C, eligible activities
described in section 423(a), undertaken pursuant to a specific
endeavor, such as serving a particular population or providing
a particular resource.
‘‘(19) PROJECT-BASED.—The term ‘project-based’ means,
with respect to rental assistance, that the assistance is provided
pursuant to a contract that—
‘‘(A) is between—
‘‘(i) the recipient or a project sponsor; and
‘‘(ii) an owner of a structure that exists as of the
date the contract is entered into; and
‘‘(B) provides that rental assistance payments shall
be made to the owner and that the units in the structure
shall be occupied by eligible persons for not less than
the term of the contract.
‘‘(20) PROJECT SPONSOR.—The term ‘project sponsor’ means,
with respect to proposed eligible activities, the organization
directly responsible for carrying out the proposed eligible activities.
‘‘(21) RECIPIENT.—Except as used in subtitle B, the term
‘recipient’ means an eligible entity who—
‘‘(A) submits an application for a grant under section
422 that is approved by the Secretary;
‘‘(B) receives the grant directly from the Secretary to
support approved projects described in the application; and
‘‘(C)(i) serves as a project sponsor for the projects;
or
‘‘(ii) awards the funds to project sponsors to carry
out the projects.
‘‘(22) SECRETARY.—The term ‘Secretary’ means the Secretary of Housing and Urban Development.
‘‘(23) SERIOUS MENTAL ILLNESS.—The term ‘serious mental
illness’ means a severe and persistent mental illness or emotional impairment that seriously limits a person’s ability to
live independently.

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123 STAT. 1673

‘‘(24) SOLO APPLICANT.—The term ‘solo applicant’ means
an entity that is an eligible entity, directly submits an application for a grant under subtitle C to the Secretary, and, if
awarded such grant, receives such grant directly from the Secretary.
‘‘(25) SPONSOR-BASED.—The term ‘sponsor-based’ means,
with respect to rental assistance, that the assistance is provided
pursuant to a contract that—
‘‘(A) is between—
‘‘(i) the recipient or a project sponsor; and
‘‘(ii) an independent entity that—
‘‘(I) is a private organization; and
‘‘(II) owns or leases dwelling units; and
‘‘(B) provides that rental assistance payments shall
be made to the independent entity and that eligible persons
shall occupy such assisted units.
‘‘(26) STATE.—Except as used in subtitle B, the term ‘State’
means each of the several States, the District of Columbia,
the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, the Trust Territory of the Pacific
Islands, and any other territory or possession of the United
States.
‘‘(27) SUPPORTIVE SERVICES.—The term ‘supportive services’
means services that address the special needs of people served
by a project, including—
‘‘(A) the establishment and operation of a child care
services program for families experiencing homelessness;
‘‘(B) the establishment and operation of an employment
assistance program, including providing job training;
‘‘(C) the provision of outpatient health services, food,
and case management;
‘‘(D) the provision of assistance in obtaining permanent
housing, employment counseling, and nutritional counseling;
‘‘(E) the provision of outreach services, advocacy, life
skills training, and housing search and counseling services;
‘‘(F) the provision of mental health services, trauma
counseling, and victim services;
‘‘(G) the provision of assistance in obtaining other Federal, State, and local assistance available for residents
of supportive housing (including mental health benefits,
employment counseling, and medical assistance, but not
including major medical equipment);
‘‘(H) the provision of legal services for purposes
including requesting reconsiderations and appeals of veterans and public benefit claim denials and resolving outstanding warrants that interfere with an individual’s
ability to obtain and retain housing;
‘‘(I) the provision of—
‘‘(i) transportation services that facilitate an
individual’s ability to obtain and maintain employment;
and
‘‘(ii) health care; and
‘‘(J) other supportive services necessary to obtain and
maintain housing.

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‘‘(28) TENANT-BASED.—The term ‘tenant-based’ means, with
respect to rental assistance, assistance that—
‘‘(A) allows an eligible person to select a housing unit
in which such person will live using rental assistance provided under subtitle C, except that if necessary to assure
that the provision of supportive services to a person participating in a program is feasible, a recipient or project
sponsor may require that the person live—
‘‘(i) in a particular structure or unit for not more
than the first year of the participation;
‘‘(ii) within a particular geographic area for the
full period of the participation, or the period remaining
after the period referred to in subparagraph (A); and
‘‘(B) provides that a person may receive such assistance
and move to another structure, unit, or geographic area
if the person has complied with all other obligations of
the program and has moved out of the assisted dwelling
unit in order to protect the health or safety of an individual
who is or has been the victim of domestic violence, dating
violence, sexual assault, or stalking, and who reasonably
believed he or she was imminently threatened by harm
from further violence if he or she remained in the assisted
dwelling unit.
‘‘(29) TRANSITIONAL HOUSING.—The term ‘transitional
housing’ means housing the purpose of which is to facilitate
the movement of individuals and families experiencing
homelessness to permanent housing within 24 months or such
longer period as the Secretary determines necessary.
‘‘(30) UNIFIED FUNDING AGENCY.—The term ‘unified funding
agency’ means a collaborative applicant that performs the
duties described in section 402(g).
‘‘(31) UNDERSERVED POPULATIONS.—The term ‘underserved
populations’ includes populations underserved because of
geographic location, underserved racial and ethnic populations,
populations underserved because of special needs (such as language barriers, disabilities, alienage status, or age), and any
other population determined to be underserved by the Secretary, as appropriate.
‘‘(32) VICTIM SERVICE PROVIDER.—The term ‘victim service
provider’ means a private nonprofit organization whose primary
mission is to provide services to victims of domestic violence,
dating violence, sexual assault, or stalking. Such term includes
rape crisis centers, battered women’s shelters, domestic violence
transitional housing programs, and other programs.
‘‘(33) VICTIM SERVICES.—The term ‘victim services’ means
services that assist domestic violence, dating violence, sexual
assault, or stalking victims, including services offered by rape
crisis centers and domestic violence shelters, and other
organizations, with a documented history of effective work concerning domestic violence, dating violence, sexual assault, or
stalking.’’.

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SEC. 1102. COMMUNITY HOMELESS ASSISTANCE PLANNING BOARDS.

Subtitle A of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361 et seq.) is amended by inserting after
section 401 (as added by section 1101(3) of this division) the following new section:

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‘‘SEC. 402. COLLABORATIVE APPLICANTS.

42 USC 11360a.

‘‘(a) ESTABLISHMENT AND DESIGNATION.—A collaborative
applicant shall be established for a geographic area by the relevant
parties in that geographic area to—
‘‘(1) submit an application for amounts under this subtitle;
and
‘‘(2) perform the duties specified in subsection (f) and, if
applicable, subsection (g).
‘‘(b) NO REQUIREMENT TO BE A LEGAL ENTITY.—An entity may
be established to serve as a collaborative applicant under this
section without being a legal entity.
‘‘(c) REMEDIAL ACTION.—If the Secretary finds that a collaborative applicant for a geographic area does not meet the requirements of this section, or if there is no collaborative applicant for
a geographic area, the Secretary may take remedial action to ensure
fair distribution of grant amounts under subtitle C to eligible entities within that area. Such measures may include designating
another body as a collaborative applicant, or permitting other
eligible entities to apply directly for grants.
‘‘(d) CONSTRUCTION.—Nothing in this section shall be construed
to displace conflict of interest or government fair practices laws,
or their equivalent, that govern applicants for grant amounts under
subtitles B and C.
‘‘(e) APPOINTMENT OF AGENT.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), a collaborative
applicant may designate an agent to—
‘‘(A) apply for a grant under section 422(c);
‘‘(B) receive and distribute grant funds awarded under
subtitle C; and
‘‘(C) perform other administrative duties.
‘‘(2) RETENTION OF DUTIES.—Any collaborative applicant
that designates an agent pursuant to paragraph (1) shall
regardless of such designation retain all of its duties and
responsibilities under this title.
‘‘(f) DUTIES.—A collaborative applicant shall—
‘‘(1) design a collaborative process for the development of
an application under subtitle C, and for evaluating the outcomes
of projects for which funds are awarded under subtitle B, in
such a manner as to provide information necessary for the
Secretary—
‘‘(A) to determine compliance with—
‘‘(i) the program requirements under section 426;
and
‘‘(ii) the selection criteria described under section
427; and
‘‘(B) to establish priorities for funding projects in the
geographic area involved;
‘‘(2) participate in the Consolidated Plan for the geographic
area served by the collaborative applicant; and
‘‘(3) ensure operation of, and consistent participation by,
project sponsors in a community-wide homeless management
information system (in this subsection referred to as ‘HMIS’)
that—
‘‘(A) collects unduplicated counts of individuals and
families experiencing homelessness;
‘‘(B) analyzes patterns of use of assistance provided
under subtitles B and C for the geographic area involved;

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‘‘(C) provides information to project sponsors and
applicants for needs analyses and funding priorities; and
‘‘(D) is developed in accordance with standards established by the Secretary, including standards that provide
for—
‘‘(i) encryption of data collected for purposes of
HMIS;
‘‘(ii) documentation, including keeping an accurate
accounting, proper usage, and disclosure, of HMIS
data;
‘‘(iii) access to HMIS data by staff, contractors,
law enforcement, and academic researchers;
‘‘(iv) rights of persons receiving services under this
title;
‘‘(v) criminal and civil penalties for unlawful disclosure of data; and
‘‘(vi) such other standards as may be determined
necessary by the Secretary.
‘‘(g) UNIFIED FUNDING.—
‘‘(1) IN GENERAL.—In addition to the duties described in
subsection (f), a collaborative applicant shall receive from the
Secretary and distribute to other project sponsors in the
applicable geographic area funds for projects to be carried out
by such other project sponsors, if—
‘‘(A) the collaborative applicant—
‘‘(i) applies to undertake such collection and distribution responsibilities in an application submitted
under this subtitle; and
‘‘(ii) is selected to perform such responsibilities
by the Secretary; or
‘‘(B) the Secretary designates the collaborative
applicant as the unified funding agency in the geographic
area, after—
‘‘(i) a finding by the Secretary that the applicant—
‘‘(I) has the capacity to perform such responsibilities; and
‘‘(II) would serve the purposes of this Act as
they apply to the geographic area; and
‘‘(ii) the Secretary provides the collaborative
applicant with the technical assistance necessary to
perform such responsibilities as such assistance is
agreed to by the collaborative applicant.
‘‘(2) REQUIRED ACTIONS BY A UNIFIED FUNDING AGENCY.—
A collaborative applicant that is either selected or designated
as a unified funding agency for a geographic area under paragraph (1) shall—
‘‘(A) require each project sponsor who is funded by
a grant received under subtitle C to establish such fiscal
control and fund accounting procedures as may be necessary to assure the proper disbursal of, and accounting
for, Federal funds awarded to the project sponsor under
subtitle C in order to ensure that all financial transactions
carried out under subtitle C are conducted, and records
maintained, in accordance with generally accepted
accounting principles; and
‘‘(B) arrange for an annual survey, audit, or evaluation
of the financial records of each project carried out by a

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123 STAT. 1677

project sponsor funded by a grant received under subtitle
C.
‘‘(h) CONFLICT OF INTEREST.—No board member of a collaborative applicant may participate in decisions of the collaborative
applicant concerning the award of a grant, or provision of other
financial benefits, to such member or the organization that such
member represents.’’.
SEC. 1103. GENERAL PROVISIONS.

Subtitle A of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11361 et seq.) is amended by inserting after section
403 (as so redesignated by section 1101(2) of this division) the
following new sections:
‘‘SEC. 404. PREVENTING INVOLUNTARY FAMILY SEPARATION.

42 USC 11361a.

‘‘(a) IN GENERAL.—After the expiration of the 2-year period
that begins upon the date of the enactment of the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009,
and except as provided in subsection (b), any project sponsor
receiving funds under this title to provide emergency shelter, transitional housing, or permanent housing to families with children
under age 18 shall not deny admission to any family based on
the age of any child under age 18.
‘‘(b) EXCEPTION.—Notwithstanding the requirement under subsection (a), project sponsors of transitional housing receiving funds
under this title may target transitional housing resources to families
with children of a specific age only if the project sponsor—
‘‘(1) operates a transitional housing program that has a
primary purpose of implementing an evidence-based practice
that requires that housing units be targeted to families with
children in a specific age group; and
‘‘(2) provides such assurances, as the Secretary shall
require, that an equivalent appropriate alternative living
arrangement for the whole family or household unit has been
secured.

Time period.

‘‘SEC. 405. TECHNICAL ASSISTANCE.

42 USC 11361b.

‘‘(a) IN GENERAL.—The Secretary shall make available technical
assistance to private nonprofit organizations and other nongovernmental entities, States, metropolitan cities, urban counties, and
counties that are not urban counties, to implement effective planning processes for preventing and ending homelessness, to improve
their capacity to prepare collaborative applications, to prevent the
separation of families in emergency shelter or other housing programs, and to adopt and provide best practices in housing and
services for persons experiencing homeless.
‘‘(b) RESERVATION.—The Secretary shall reserve not more than
1 percent of the funds made available for any fiscal year for carrying
out subtitles B and C, to provide technical assistance under subsection (a).’’.

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SEC. 1104. PROTECTION OF PERSONALLY IDENTIFYING INFORMATION
BY VICTIM SERVICE PROVIDERS.

Subtitle A of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11361 et seq.), as amended by the preceding provisions
of this title, is further amended by adding at the end the following
new section:

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123 STAT. 1678
42 USC 11363.

PUBLIC LAW 111–22—MAY 20, 2009

‘‘SEC. 407. PROTECTION OF PERSONALLY IDENTIFYING INFORMATION
BY VICTIM SERVICE PROVIDERS.

‘‘In the course of awarding grants or implementing programs
under this title, the Secretary shall instruct any victim service
provider that is a recipient or subgrantee not to disclose for purposes
of the Homeless Management Information System any personally
identifying information about any client. The Secretary may, after
public notice and comment, require or ask such recipients and
subgrantees to disclose for purposes of the Homeless Management
Information System non-personally identifying information that has
been de-identified, encrypted, or otherwise encoded. Nothing in
this section shall be construed to supersede any provision of any
Federal, State, or local law that provides greater protection than
this subsection for victims of domestic violence, dating violence,
sexual assault, or stalking.’’.
SEC. 1105. AUTHORIZATION OF APPROPRIATIONS.

Subtitle A of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11361 et seq.), as amended by the preceding provisions
of this title, is further amended by adding at the end the following
new section:
42 USC 11364.

‘‘SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

‘‘There are authorized to be appropriated to carry out this
title $2,200,000,000 for fiscal year 2010 and such sums as may
be necessary for fiscal year 2011.’’.

TITLE II—EMERGENCY SOLUTIONS
GRANTS PROGRAM
SEC. 1201. GRANT ASSISTANCE.

Subtitle B of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11371 et seq.) is amended—
(1) by striking the subtitle heading and inserting the following:

‘‘Subtitle B—Emergency Solutions Grants
Program’’;
(2) by striking section 417 (42 U.S.C. 11377);
(3) by redesignating sections 413 through 416 (42 U.S.C.
11373–6) as sections 414 through 417, respectively; and
(4) by striking section 412 (42 U.S.C. 11372) and inserting
the following:
‘‘SEC. 412. GRANT ASSISTANCE.

‘‘The Secretary shall make grants to States and local governments (and to private nonprofit organizations providing assistance
to persons experiencing homelessness or at risk of homelessness,
in the case of grants made with reallocated amounts) for the purpose
of carrying out activities described in section 415.

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42 USC 11372a.

‘‘SEC. 413. AMOUNT AND ALLOCATION OF ASSISTANCE.

‘‘(a) IN GENERAL.—Of the amount made available to carry out
this subtitle and subtitle C for a fiscal year, the Secretary shall

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allocate nationally 20 percent of such amount for activities described
in section 415. The Secretary shall be required to certify that
such allocation will not adversely affect the renewal of existing
projects under this subtitle and subtitle C for those individuals
or families who are homeless.
‘‘(b) ALLOCATION.—An entity that receives a grant under section
412, and serves an area that includes 1 or more geographic areas
(or portions of such areas) served by collaborative applicants that
submit applications under subtitle C, shall allocate the funds made
available through the grant to carry out activities described in
section 415, in consultation with the collaborative applicants.’’; and
(5) in section 414(b) (42 U.S.C. 11373(b)), as so redesignated
by paragraph (3) of this section, by striking ‘‘amounts appropriated’’ and all that follows through ‘‘for any’’ and inserting
‘‘amounts appropriated under section 408 and made available
to carry out this subtitle for any’’.

Certification.

SEC. 1202. ELIGIBLE ACTIVITIES.

The McKinney-Vento Homeless Assistance Act is amended by
striking section 415 (42 U.S.C. 11374), as so redesignated by section
1201(3) of this division, and inserting the following new section:

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‘‘SEC. 415. ELIGIBLE ACTIVITIES.

‘‘(a) IN GENERAL.—Assistance provided under section 412 may
be used for the following activities:
‘‘(1) The renovation, major rehabilitation, or conversion
of buildings to be used as emergency shelters.
‘‘(2) The provision of essential services related to emergency
shelter or street outreach, including services concerned with
employment, health, education, family support services for
homeless youth, substance abuse services, victim services, or
mental health services, if—
‘‘(A) such essential services have not been provided
by the local government during any part of the immediately
preceding 12-month period or the Secretary determines
that the local government is in a severe financial deficit;
or
‘‘(B) the use of assistance under this subtitle would
complement the provision of those essential services.
‘‘(3) Maintenance, operation, insurance, provision of utilities, and provision of furnishings related to emergency shelter.
‘‘(4) Provision of rental assistance to provide short-term
or medium-term housing to homeless individuals or families
or individuals or families at risk of homelessness. Such rental
assistance may include tenant-based or project-based rental
assistance.
‘‘(5) Housing relocation or stabilization services for homeless individuals or families or individuals or families at risk
of homelessness, including housing search, mediation or outreach to property owners, legal services, credit repair, providing
security or utility deposits, utility payments, rental assistance
for a final month at a location, assistance with moving costs,
or other activities that are effective at—
‘‘(A) stabilizing individuals and families in their current housing; or
‘‘(B) quickly moving such individuals and families to
other permanent housing.

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‘‘(b) MAXIMUM ALLOCATION FOR EMERGENCY SHELTER ACTIVIgrantee of assistance provided under section 412 for any
fiscal year may not use an amount of such assistance for activities
described in paragraphs (1) through (3) of subsection (a) that
exceeds the greater of—
‘‘(1) 60 percent of the aggregate amount of such assistance
provided for the grantee for such fiscal year; or
‘‘(2) the amount expended by such grantee for such activities during fiscal year most recently completed before the effective date under section 1503 of the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009.’’.
TIES.—A

SEC. 1203. PARTICIPATION IN HOMELESS MANAGEMENT INFORMATION
SYSTEM.

Section 416 of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11375), as so redesignated by section 1201(3) of this
division, is amended by adding at the end the following new subsection:
‘‘(f) PARTICIPATION IN HMIS.—The Secretary shall ensure that
recipients of funds under this subtitle ensure the consistent participation by emergency shelters and homelessness prevention and
rehousing programs in any applicable community-wide homeless
management information system.’’.
SEC. 1204. ADMINISTRATIVE PROVISION.

Section 418 of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11378) is amended by striking ‘‘5 percent’’ and inserting
‘‘7.5 percent’’.
SEC. 1205. GAO STUDY OF ADMINISTRATIVE FEES.
Deadline.

Reports.

Not later than the expiration of the 12-month period beginning
on the date of the enactment of this division, the Comptroller
General of the United States shall—
(1) conduct a study to examine the appropriate administrative costs for administering the program authorized under subtitle B of title IV of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11371 et seq.); and
(2) submit to Congress a report on the findings of the
study required under paragraph (1).

TITLE III—CONTINUUM OF CARE
PROGRAM
SEC. 1301. CONTINUUM OF CARE.

The McKinney-Vento Homeless Assistance Act is amended—
(1) by striking the subtitle heading for subtitle C of title
IV (42 U.S.C. 11381 et seq.) and inserting the following:

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Homeless.
Grants.

‘‘Subtitle C—Continuum of Care Program’’;
and
(2) by striking sections 421 and 422 (42 U.S.C. 11381
and 11382) and inserting the following new sections:

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123 STAT. 1681

‘‘SEC. 421. PURPOSES.

42 USC 11381.

‘‘The purposes of this subtitle are—
‘‘(1) to promote community-wide commitment to the goal
of ending homelessness;
‘‘(2) to provide funding for efforts by nonprofit providers
and State and local governments to quickly rehouse homeless
individuals and families while minimizing the trauma and dislocation caused to individuals, families, and communities by
homelessness;
‘‘(3) to promote access to, and effective utilization of, mainstream programs described in section 203(a)(7) and programs
funded with State or local resources; and
‘‘(4) to optimize self-sufficiency among individuals and families experiencing homelessness.

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‘‘SEC. 422. CONTINUUM OF CARE APPLICATIONS AND GRANTS.

‘‘(a) PROJECTS.—The Secretary shall award grants, on a
competitive basis, and using the selection criteria described in section 427, to carry out eligible activities under this subtitle for
projects that meet the program requirements under section 426,
either by directly awarding funds to project sponsors or by awarding
funds to unified funding agencies.
‘‘(b) NOTIFICATION OF FUNDING AVAILABILITY.—The Secretary
shall release a notification of funding availability for grants awarded
under this subtitle for a fiscal year not later than 3 months after
the date of the enactment of the appropriate Act making appropriations for the Department of Housing and Urban Development for
such fiscal year.
‘‘(c) APPLICATIONS.—
‘‘(1) SUBMISSION TO THE SECRETARY.—To be eligible to
receive a grant under subsection (a), a project sponsor or unified
funding agency in a geographic area shall submit an application
to the Secretary at such time and in such manner as the
Secretary may require, and containing such information as
the Secretary determines necessary—
‘‘(A) to determine compliance with the program requirements and selection criteria under this subtitle; and
‘‘(B) to establish priorities for funding projects in the
geographic area.
‘‘(2) ANNOUNCEMENT OF AWARDS.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the Secretary shall announce, within 5 months after
the last date for the submission of applications described
in this subsection for a fiscal year, the grants conditionally
awarded under subsection (a) for that fiscal year.
‘‘(B) TRANSITION.—For a period of up to 2 years beginning after the effective date under section 1503 of the
Homeless Emergency Assistance and Rapid Transition to
Housing Act of 2009, the Secretary shall announce, within
6 months after the last date for the submission of applications described in this subsection for a fiscal year, the
grants conditionally awarded under subsection (a) for that
fiscal year.
‘‘(d) OBLIGATION, DISTRIBUTION, AND UTILIZATION OF FUNDS.—
‘‘(1) REQUIREMENTS FOR OBLIGATION.—
‘‘(A) IN GENERAL.—Not later than 9 months after the
announcement referred to in subsection (c)(2), each

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Deadline.

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recipient or project sponsor shall meet all requirements
for the obligation of those funds, including site control,
matching funds, and environmental review requirements,
except as provided in subparagraphs (B) and (C).
‘‘(B) ACQUISITION, REHABILITATION, OR CONSTRUCTION.—Not later than 24 months after the announcement
referred to in subsection (c)(2), each recipient or project
sponsor seeking the obligation of funds for acquisition of
housing, rehabilitation of housing, or construction of new
housing for a grant announced under subsection (c)(2) shall
meet all requirements for the obligation of those funds,
including site control, matching funds, and environmental
review requirements.
‘‘(C) EXTENSIONS.—At the discretion of the Secretary,
and in compelling circumstances, the Secretary may extend
the date by which a recipient or project sponsor shall
meet the requirements described in subparagraphs (A) and
(B) if the Secretary determines that compliance with the
requirements was delayed due to factors beyond the reasonable control of the recipient or project sponsor. Such factors
may include difficulties in obtaining site control for a proposed project, completing the process of obtaining secure
financing for the project, obtaining approvals from State
or local governments, or completing the technical submission requirements for the project.
‘‘(2) OBLIGATION.—Not later than 45 days after a recipient
or project sponsor meets the requirements described in paragraph (1), the Secretary shall obligate the funds for the grant
involved.
‘‘(3) DISTRIBUTION.—A recipient that receives funds through
such a grant—
‘‘(A) shall distribute the funds to project sponsors (in
advance of expenditures by the project sponsors); and
‘‘(B) shall distribute the appropriate portion of the
funds to a project sponsor not later than 45 days after
receiving a request for such distribution from the project
sponsor.
‘‘(4) EXPENDITURE OF FUNDS.—The Secretary may establish
a date by which funds made available through a grant
announced under subsection (c)(2) for a homeless assistance
project shall be entirely expended by the recipient or project
sponsors involved. The date established under this paragraph
shall not occur before the expiration of the 24-month period
beginning on the date that funds are obligated for activities
described under paragraphs (1) or (2) of section 423(a). The
Secretary shall recapture the funds not expended by such date.
The Secretary shall reallocate the funds for another homeless
assistance and prevention project that meets the requirements
of this subtitle to be carried out, if possible and appropriate,
in the same geographic area as the area served through the
original grant.
‘‘(e) RENEWAL FUNDING FOR UNSUCCESSFUL APPLICANTS.—The
Secretary may renew funding for a specific project previously funded
under this subtitle that the Secretary determines meets the purposes of this subtitle, and was included as part of a total application
that met the criteria of subsection (c), even if the application was
not selected to receive grant assistance. The Secretary may renew

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123 STAT. 1683

the funding for a period of not more than 1 year, and under
such conditions as the Secretary determines to be appropriate.
‘‘(f) CONSIDERATIONS IN DETERMINING RENEWAL FUNDING.—
When providing renewal funding for leasing, operating costs, or
rental assistance for permanent housing, the Secretary shall make
adjustments proportional to increases in the fair market rents in
the geographic area.
‘‘(g) MORE THAN 1 APPLICATION FOR A GEOGRAPHIC AREA.—
If more than 1 collaborative applicant applies for funds for a
geographic area, the Secretary shall award funds to the collaborative applicant with the highest score based on the selection criteria set forth in section 427.
‘‘(h) APPEALS.—
‘‘(1) IN GENERAL.—The Secretary shall establish a timely
appeal procedure for grant amounts awarded or denied under
this subtitle pursuant to a collaborative application or solo
application for funding.
‘‘(2) PROCESS.—The Secretary shall ensure that the procedure permits appeals submitted by entities carrying out homeless housing and services projects (including emergency shelters
and homelessness prevention programs), and all other
applicants under this subtitle.
‘‘(i) SOLO APPLICANTS.—A solo applicant may submit an application to the Secretary for a grant under subsection (a) and be
awarded such grant on the same basis as such grants are awarded
to other applicants based on the criteria described in section 427,
but only if the Secretary determines that the solo applicant has
attempted to participate in the continuum of care process but was
not permitted to participate in a reasonable manner. The Secretary
may award such grants directly to such applicants in a manner
determined to be appropriate by the Secretary.
‘‘(j) FLEXIBILITY TO SERVE PERSONS DEFINED AS HOMELESS
UNDER OTHER FEDERAL LAWS.—
‘‘(1) IN GENERAL.—A collaborative applicant may use not
more than 10 percent of funds awarded under this subtitle
(continuum of care funding) for any of the types of eligible
activities specified in paragraphs (1) through (7) of section
423(a) to serve families with children and youth defined as
homeless under other Federal statutes, or homeless families
with children and youth defined as homeless under section
103(a)(6), but only if the applicant demonstrates that the use
of such funds is of an equal or greater priority or is equally
or more cost effective in meeting the overall goals and objectives
of the plan submitted under section 427(b)(1)(B), especially
with respect to children and unaccompanied youth.
‘‘(2) LIMITATIONS.—The 10 percent limitation under paragraph (1) shall not apply to collaborative applicants in which
the rate of homelessness, as calculated in the most recent
point in time count, is less than one-tenth of 1 percent of
total population.
‘‘(3) TREATMENT OF CERTAIN POPULATIONS.—
‘‘(A) IN GENERAL.—Notwithstanding section 103(a) and
subject to subparagraph (B), funds awarded under this
subtitle may be used for eligible activities to serve unaccompanied youth and homeless families and children defined
as homeless under section 103(a)(6) only pursuant to paragraph (1) of this subsection and such families and children

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123 STAT. 1684

PUBLIC LAW 111–22—MAY 20, 2009
shall not otherwise be considered as homeless for purposes
of this subtitle.
‘‘(B) AT RISK OF HOMELESSNESS.—Subparagraph (A)
may not be construed to prevent any unaccompanied youth
and homeless families and children defined as homeless
under section 103(a)(6) from qualifying for, and being
treated for purposes of this subtitle as, at risk of homelessness or from eligibility for any projects, activities, or services carried out using amounts provided under this subtitle
for which individuals or families that are at risk of
homelessness are eligible.’’.

SEC. 1302. ELIGIBLE ACTIVITIES.

The McKinney-Vento Homeless Assistance Act is amended by
striking section 423 (42 U.S.C. 11383) and inserting the following
new section:

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‘‘SEC. 423. ELIGIBLE ACTIVITIES.

‘‘(a) IN GENERAL.—Grants awarded under section 422 to qualified applicants shall be used to carry out projects that serve homeless individuals or families that consist of one or more of the
following eligible activities:
‘‘(1) Construction of new housing units to provide transitional or permanent housing.
‘‘(2) Acquisition or rehabilitation of a structure to provide
transitional or permanent housing, other than emergency
shelter, or to provide supportive services.
‘‘(3) Leasing of property, or portions of property, not owned
by the recipient or project sponsor involved, for use in providing
transitional or permanent housing, or providing supportive
services.
‘‘(4) Provision of rental assistance to provide transitional
or permanent housing to eligible persons. The rental assistance
may include tenant-based, project-based, or sponsor-based
rental assistance. Project-based rental assistance, sponsorbased rental assistance, and operating cost assistance contracts
carried out by project sponsors receiving grants under this
section may, at the discretion of the applicant and the project
sponsor, have an initial term of 15 years, with assistance for
the first 5 years paid with funds authorized for appropriation
under this Act, and assistance for the remainder of the term
treated as a renewal of an expiring contract as provided in
section 429. Project-based rental assistance may include rental
assistance to preserve existing permanent supportive housing
for homeless individuals and families.
‘‘(5) Payment of operating costs for housing units assisted
under this subtitle or for the preservation of housing that
will serve homeless individuals and families and for which
another form of assistance is expiring or otherwise no longer
available.
‘‘(6) Supportive services for individuals and families who
are currently homeless, who have been homeless in the prior
six months but are currently residing in permanent housing,
or who were previously homeless and are currently residing
in permanent supportive housing.
‘‘(7) Provision of rehousing services, including housing
search, mediation or outreach to property owners, credit repair,
providing security or utility deposits, rental assistance for a

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123 STAT. 1685

final month at a location, assistance with moving costs, or
other activities that—
‘‘(A) are effective at moving homeless individuals and
families immediately into housing; or
‘‘(B) may benefit individuals and families who in the
prior 6 months have been homeless, but are currently
residing in permanent housing.
‘‘(8) In the case of a collaborative applicant that is a legal
entity, performance of the duties described under section
402(f)(3).
‘‘(9) Operation of, participation in, and ensuring consistent
participation by project sponsors in, a community-wide homeless management information system.
‘‘(10) In the case of a collaborative applicant that is a
legal entity, payment of administrative costs related to meeting
the requirements described in paragraphs (1) and (2) of section
402(f), for which the collaborative applicant may use not more
than 3 percent of the total funds made available in the
geographic area under this subtitle for such costs.
‘‘(11) In the case of a collaborative applicant that is a
unified funding agency under section 402(g), payment of
administrative costs related to meeting the requirements of
that section, for which the unified funding agency may use
not more than 3 percent of the total funds made available
in the geographic area under this subtitle for such costs, in
addition to funds used under paragraph (10).
‘‘(12) Payment of administrative costs to project sponsors,
for which each project sponsor may use not more than 10
percent of the total funds made available to that project sponsor
through this subtitle for such costs.
‘‘(b) MINIMUM GRANT TERMS.—The Secretary may impose minimum grant terms of up to 5 years for new projects providing
permanent housing.
‘‘(c) USE RESTRICTIONS.—
‘‘(1) ACQUISITION, REHABILITATION, AND NEW CONSTRUCTION.—A project that consists of activities described in paragraph (1) or (2) of subsection (a) shall be operated for the
purpose specified in the application submitted for the project
under section 422 for not less than 15 years.
‘‘(2) OTHER ACTIVITIES.—A project that consists of activities
described in any of paragraphs (3) through (12) of subsection
(a) shall be operated for the purpose specified in the application
submitted for the project under section 422 for the duration
of the grant period involved.
‘‘(3) CONVERSION.—If the recipient or project sponsor carrying out a project that provides transitional or permanent
housing submits a request to the Secretary to carry out instead
a project for the direct benefit of low-income persons, and
the Secretary determines that the initial project is no longer
needed to provide transitional or permanent housing, the Secretary may approve the project described in the request and
authorize the recipient or project sponsor to carry out that
project.
‘‘(d) REPAYMENT OF ASSISTANCE AND PREVENTION OF UNDUE
BENEFITS.—
‘‘(1) REPAYMENT.—If a recipient or project sponsor receives
assistance under section 422 to carry out a project that consists

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of activities described in paragraph (1) or (2) of subsection
(a) and the project ceases to provide transitional or permanent
housing—
‘‘(A) earlier than 10 years after operation of the project
begins, the Secretary shall require the recipient or project
sponsor to repay 100 percent of the assistance; or
‘‘(B) not earlier than 10 years, but earlier than 15
years, after operation of the project begins, the Secretary
shall require the recipient or project sponsor to repay 20
percent of the assistance for each of the years in the 15year period for which the project fails to provide that
housing.
‘‘(2) PREVENTION OF UNDUE BENEFITS.—Except as provided
in paragraph (3), if any property is used for a project that
receives assistance under subsection (a) and consists of activities described in paragraph (1) or (2) of subsection (a), and
the sale or other disposition of the property occurs before the
expiration of the 15-year period beginning on the date that
operation of the project begins, the recipient or project sponsor
who received the assistance shall comply with such terms and
conditions as the Secretary may prescribe to prevent the
recipient or project sponsor from unduly benefitting from such
sale or disposition.
‘‘(3) EXCEPTION.—A recipient or project sponsor shall not
be required to make the repayments, and comply with the
terms and conditions, required under paragraph (1) or (2) if—
‘‘(A) the sale or disposition of the property used for
the project results in the use of the property for the direct
benefit of very low-income persons;
‘‘(B) all of the proceeds of the sale or disposition are
used to provide transitional or permanent housing meeting
the requirements of this subtitle;
‘‘(C) project-based rental assistance or operating cost
assistance from any Federal program or an equivalent State
or local program is no longer made available and the project
is meeting applicable performance standards, provided that
the portion of the project that had benefitted from such
assistance continues to meet the tenant income and rent
restrictions for low-income units under section 42(g) of
the Internal Revenue Code of 1986; or
‘‘(D) there are no individuals and families in the
geographic area who are homeless, in which case the project
may serve individuals and families at risk of homelessness.
‘‘(e) STAFF TRAINING.—The Secretary may allow reasonable
costs associated with staff training to be included as part of the
activities described in subsection (a).
‘‘(f) ELIGIBILITY FOR PERMANENT HOUSING.—Any project that
receives assistance under subsection (a) and that provides projectbased or sponsor-based permanent housing for homeless individuals
or families with a disability, including projects that meet the
requirements of subsection (a) and subsection (d)(2)(A) of section
428 may also serve individuals who had previously met the requirements for such project prior to moving into a different permanent
housing project.
‘‘(g) ADMINISTRATION OF RENTAL ASSISTANCE.—Provision of
permanent housing rental assistance shall be administered by a
State, unit of general local government, or public housing agency.’’.

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SEC. 1303. HIGH PERFORMING COMMUNITIES.

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‘‘SEC. 424. INCENTIVES FOR HIGH-PERFORMING COMMUNITIES.

‘‘(a) DESIGNATION AS A HIGH-PERFORMING COMMUNITY.—
‘‘(1) IN GENERAL.—The Secretary shall designate, on an
annual basis, which collaborative applicants represent highperforming communities.
‘‘(2) CONSIDERATION.—In determining whether to designate
a collaborative applicant as a high-performing community under
paragraph (1), the Secretary shall establish criteria to ensure
that the requirements described under paragraphs (1)(B) and
(2)(B) of subsection (d) are measured by comparing homeless
individuals and families under similar circumstances, in order
to encourage projects in the geographic area to serve homeless
individuals and families with more severe barriers to housing
stability.
‘‘(3) 2-YEAR PHASE IN.—In each of the first 2 years after
the effective date under section 1503 of the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009,
the Secretary shall designate not more than 10 collaborative
applicants as high-performing communities.
‘‘(4) EXCESS OF QUALIFIED APPLICANTS.—If, during the 2year period described under paragraph (2), more than 10
collaborative applicants could qualify to be designated as highperforming communities, the Secretary shall designate the 10
that have, in the discretion of the Secretary, the best performance based on the criteria described under subsection (d).
‘‘(5) TIME LIMIT ON DESIGNATION.—The designation of any
collaborative applicant as a high-performing community under
this subsection shall be effective only for the year in which
such designation is made. The Secretary, on an annual basis,
may renew any such designation.
‘‘(b) APPLICATION.—
‘‘(1) IN GENERAL.—A collaborative applicant seeking designation as a high-performing community under subsection (a)
shall submit an application to the Secretary at such time,
and in such manner as the Secretary may require.
‘‘(2) CONTENT OF APPLICATION.—In any application submitted under paragraph (1), a collaborative applicant shall
include in such application—
‘‘(A) a report showing how any money received under
this subtitle in the preceding year was expended; and
‘‘(B) information that such applicant can meet the
requirements described under subsection (d).
‘‘(3) PUBLICATION OF APPLICATION.—The Secretary shall—
‘‘(A) publish any report or information submitted in
an application under this section in the geographic area
represented by the collaborative applicant; and
‘‘(B) seek comments from the public as to whether
the collaborative applicant seeking designation as a highperforming community meets the requirements described
under subsection (d).
‘‘(c) USE OF FUNDS.—Funds awarded under section 422(a) to
a project sponsor who is located in a high-performing community
may be used—

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‘‘(1) for any of the eligible activities described in section
423; or
‘‘(2) for any of the eligible activities described in paragraphs
(4) and (5) of section 415(a).
‘‘(d) DEFINITION OF HIGH-PERFORMING COMMUNITY.—For purposes of this section, the term ‘high-performing community’ means
a geographic area that demonstrates through reliable data that
all five of the following requirements are met for that geographic
area:
‘‘(1) TERM OF HOMELESSNESS.—The mean length of episodes
of homelessness for that geographic area—
‘‘(A) is less than 20 days; or
‘‘(B) for individuals and families in similar circumstances in the preceding year was at least 10 percent
less than in the year before.
‘‘(2) FAMILIES LEAVING HOMELESSNESS.—Of individuals and
families—
‘‘(A) who leave homelessness, fewer than 5 percent
of such individuals and families become homeless again
at any time within the next 2 years; or
‘‘(B) in similar circumstances who leave homelessness,
the percentage of such individuals and families who become
homeless again within the next 2 years has decreased
by at least 20 percent from the preceding year.
‘‘(3) COMMUNITY ACTION.—The communities that compose
the geographic area have—
‘‘(A) actively encouraged homeless individuals and
families to participate in homeless assistance services available in that geographic area; and
‘‘(B) included each homeless individual or family who
sought homeless assistance services in the data system
used by that community for determining compliance with
this subsection.
‘‘(4) EFFECTIVENESS OF PREVIOUS ACTIVITIES.—If recipients
in the geographic area have used funding awarded under section 422(a) for eligible activities described under section 415(a)
in previous years based on the authority granted under subsection (c), that such activities were effective at reducing the
number of individuals and families who became homeless in
that community.
‘‘(5) FLEXIBILITY TO SERVE PERSONS DEFINED AS HOMELESS
UNDER OTHER FEDERAL LAWS.—With respect to collaborative
applicants exercising the authority under section 422(j) to serve
homeless families with children and youth defined as homeless
under other Federal statutes, effectiveness in achieving the
goals and outcomes identified in subsection 427(b)(1)(F)
according to such standards as the Secretary shall promulgate.
‘‘(e) COOPERATION AMONG ENTITIES.—A collaborative applicant
designated as a high-performing community under this section shall
cooperate with the Secretary in distributing information about
successful efforts within the geographic area represented by the
collaborative applicant to reduce homelessness.’’.

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SEC. 1304. PROGRAM REQUIREMENTS.

Section 426 of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11386) is amended—

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123 STAT. 1689

(1) by striking subsections (a), (b), and (c) and inserting
the following:
‘‘(a) SITE CONTROL.—The Secretary shall require that each
application include reasonable assurances that the applicant will
own or have control of a site for the proposed project not later
than the expiration of the 12-month period beginning upon notification of an award for grant assistance, unless the application proposes providing supportive housing assistance under section
423(a)(3) or housing that will eventually be owned or controlled
by the families and individuals served. An applicant may obtain
ownership or control of a suitable site different from the site specified in the application. If any recipient or project sponsor fails
to obtain ownership or control of the site within 12 months after
notification of an award for grant assistance, the grant shall be
recaptured and reallocated under this subtitle.
‘‘(b) REQUIRED AGREEMENTS.—The Secretary may not provide
assistance for a proposed project under this subtitle unless the
collaborative applicant involved agrees—
‘‘(1) to ensure the operation of the project in accordance
with the provisions of this subtitle;
‘‘(2) to monitor and report to the Secretary the progress
of the project;
‘‘(3) to ensure, to the maximum extent practicable, that
individuals and families experiencing homelessness are
involved, through employment, provision of volunteer services,
or otherwise, in constructing, rehabilitating, maintaining, and
operating facilities for the project and in providing supportive
services for the project;
‘‘(4) to require certification from all project sponsors that—
‘‘(A) they will maintain the confidentiality of records
pertaining to any individual or family provided family
violence prevention or treatment services through the
project;
‘‘(B) that the address or location of any family violence
shelter project assisted under this subtitle will not be made
public, except with written authorization of the person
responsible for the operation of such project;
‘‘(C) they will establish policies and practices that are
consistent with, and do not restrict the exercise of rights
provided by, subtitle B of title VII, and other laws relating
to the provision of educational and related services to
individuals and families experiencing homelessness;
‘‘(D) in the case of programs that provide housing or
services to families, they will designate a staff person to
be responsible for ensuring that children being served in
the program are enrolled in school and connected to appropriate services in the community, including early childhood
programs such as Head Start, part C of the Individuals
with Disabilities Education Act, and programs authorized
under subtitle B of title VII of this Act (42 U.S.C. 11431
et seq.); and
‘‘(E) they will provide data and reports as required
by the Secretary pursuant to the Act;
‘‘(5) if a collaborative applicant is a unified funding agency
under section 402(g) and receives funds under subtitle C to
carry out the payment of administrative costs described in
section 423(a)(11), to establish such fiscal control and fund

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Time period.

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PUBLIC LAW 111–22—MAY 20, 2009
accounting procedures as may be necessary to assure the proper
disbursal of, and accounting for, such funds in order to ensure
that all financial transactions carried out with such funds are
conducted, and records maintained, in accordance with generally accepted accounting principles;
‘‘(6) to monitor and report to the Secretary the provision
of matching funds as required by section 430;
‘‘(7) to take the educational needs of children into account
when families are placed in emergency or transitional shelter
and will, to the maximum extent practicable, place families
with children as close as possible to their school of origin
so as not to disrupt such children’s education; and
‘‘(8) to comply with such other terms and conditions as
the Secretary may establish to carry out this subtitle in an
effective and efficient manner.’’;
(2) by redesignating subsection (d) as subsection (c);
(3) in the first sentence of subsection (c) (as so redesignated
by paragraph (2) of this subsection), by striking ‘‘recipient’’
and inserting ‘‘recipient or project sponsor’’;
(4) by striking subsection (e);
(5) by redesignating subsections (f), (g), and (h), as subsections (d), (e), and (f), respectively;
(6) in the first sentence of subsection (e) (as so redesignated
by paragraph (5) of this section), by striking ‘‘recipient’’ each
place it appears and inserting ‘‘recipient or project sponsor’’;
(7) by striking subsection (i); and
(8) by redesignating subsection (j) as subsection (g).

SEC.

1305.

SELECTION
FUNDING.

CRITERIA,

ALLOCATION

AMOUNTS,

AND

The McKinney-Vento Homeless Assistance Act is amended—
(1) by repealing section 429 (42 U.S.C. 11389); and
(2) by redesignating sections 427 and 428 (42 U.S.C. 11387,
11388) as sections 432 and 433, respectively; and
(3) by inserting after section 426 the following new sections:

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42 USC 11386a.

‘‘SEC. 427. SELECTION CRITERIA.

‘‘(a) IN GENERAL.—The Secretary shall award funds to recipients through a national competition between geographic areas based
on criteria established by the Secretary.
‘‘(b) REQUIRED CRITERIA.—
‘‘(1) IN GENERAL.—The criteria established under subsection
(a) shall include—
‘‘(A) the previous performance of the recipient
regarding homelessness, including performance related to
funds provided under section 412 (except that recipients
applying from geographic areas where no funds have been
awarded under this subtitle, or under subtitles C, D, E,
or F of title IV of this Act, as in effect prior to the date
of the enactment of the Homeless Emergency Assistance
and Rapid Transition to Housing Act of 2009, shall receive
full credit for performance under this subparagraph), measured by criteria that shall be announced by the Secretary,
that shall take into account barriers faced by individual
homeless people, and that shall include—
‘‘(i) the length of time individuals and families
remain homeless;

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‘‘(ii) the extent to which individuals and families
who leave homelessness experience additional spells
of homelessness;
‘‘(iii) the thoroughness of grantees in the
geographic area in reaching homeless individuals and
families;
‘‘(iv) overall reduction in the number of homeless
individuals and families;
‘‘(v) jobs and income growth for homeless individuals and families;
‘‘(vi) success at reducing the number of individuals
and families who become homeless;
‘‘(vii) other accomplishments by the recipient
related to reducing homelessness; and
‘‘(viii) for collaborative applicants that have exercised the authority under section 422(j) to serve families with children and youth defined as homeless under
other Federal statutes, success in achieving the goals
and outcomes identified in section 427(b)(1)(F);
‘‘(B) the plan of the recipient, which shall describe—
‘‘(i) how the number of individuals and families
who become homeless will be reduced in the community;
‘‘(ii) how the length of time that individuals and
families remain homeless will be reduced;
‘‘(iii) how the recipient will collaborate with local
education authorities to assist in the identification of
individuals and families who become or remain homeless and are informed of their eligibility for services
under subtitle B of title VII of this Act (42 U.S.C.
11431 et seq.);
‘‘(iv) the extent to which the recipient will—
‘‘(I) address the needs of all relevant subpopulations;
‘‘(II) incorporate comprehensive strategies for
reducing homelessness, including the interventions
referred to in section 428(d);
‘‘(III) set quantifiable performance measures;
‘‘(IV) set timelines for completion of specific
tasks;
‘‘(V) identify specific funding sources for
planned activities; and
‘‘(VI) identify an individual or body responsible
for overseeing implementation of specific strategies; and
‘‘(v) whether the recipient proposes to exercise
authority to use funds under section 422(j), and if
so, how the recipient will achieve the goals and outcomes identified in section 427(b)(1)(F);
‘‘(C) the methodology of the recipient used to determine
the priority for funding local projects under section
422(c)(1), including the extent to which the priority-setting
process—
‘‘(i) uses periodically collected information and
analysis to determine the extent to which each project
has resulted in rapid return to permanent housing
for those served by the project, taking into account

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123 STAT. 1692

PUBLIC LAW 111–22—MAY 20, 2009
the severity of barriers faced by the people the project
serves;
‘‘(ii) considers the full range of opinions from
individuals or entities with knowledge of homelessness
in the geographic area or an interest in preventing
or ending homelessness in the geographic area;
‘‘(iii) is based on objective criteria that have been
publicly announced by the recipient; and
‘‘(iv) is open to proposals from entities that have
not previously received funds under this subtitle;
‘‘(D) the extent to which the amount of assistance
to be provided under this subtitle to the recipient will
be supplemented with resources from other public and
private sources, including mainstream programs identified
by the Government Accountability Office in the two reports
described in section 203(a)(7);
‘‘(E) demonstrated coordination by the recipient with
the other Federal, State, local, private, and other entities
serving individuals and families experiencing homelessness
and at risk of homelessness in the planning and operation
of projects;
‘‘(F) for collaborative applicants exercising the
authority under section 422(j) to serve homeless families
with children and youth defined as homeless under other
Federal statutes, program goals and outcomes, which shall
include—
‘‘(i) preventing homelessness among the subset of
such families with children and youth who are at
highest risk of becoming homeless, as such term is
defined for purposes of this title; or
‘‘(ii) achieving independent living in permanent
housing among such families with children and youth,
especially those who have a history of doubled-up and
other temporary housing situations or are living in
a temporary housing situation due to lack of available
and appropriate emergency shelter, through the provision of eligible assistance that directly contributes to
achieving such results including assistance to address
chronic disabilities, chronic physical health or mental
health conditions, substance addiction, histories of
domestic violence or childhood abuse, or multiple barriers to employment; and
‘‘(G) such other factors as the Secretary determines
to be appropriate to carry out this subtitle in an effective
and efficient manner.
‘‘(2) ADDITIONAL CRITERIA.—In addition to the criteria
required under paragraph (1), the criteria established under
paragraph (1) shall also include the need within the geographic
area for homeless services, determined as follows and under
the following conditions:
‘‘(A) NOTICE.—The Secretary shall inform each collaborative applicant, at a time concurrent with the release
of the notice of funding availability for the grants, of the
pro rata estimated grant amount under this subtitle for
the geographic area represented by the collaborative
applicant.
‘‘(B) AMOUNT.—

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123 STAT. 1693

‘‘(i) FORMULA.—Such estimated grant amounts
shall be determined by a formula, which shall be developed by the Secretary, by regulation, not later than
the expiration of the 2-year period beginning upon
the date of the enactment of the Homeless Emergency
Assistance and Rapid Transition to Housing Act of
2009, that is based upon factors that are appropriate
to allocate funds to meet the goals and objectives of
this subtitle.
‘‘(ii) COMBINATIONS OR CONSORTIA.—For a collaborative applicant that represents a combination or
consortium of cities or counties, the estimated need
amount shall be the sum of the estimated need
amounts for the cities or counties represented by the
collaborative applicant.
‘‘(iii) AUTHORITY OF SECRETARY.—Subject to the
availability of appropriations, the Secretary shall
increase the estimated need amount for a geographic
area if necessary to provide 1 year of renewal funding
for all expiring contracts entered into under this subtitle for the geographic area.
‘‘(3) HOMELESSNESS COUNTS.—The Secretary shall not
require that communities conduct an actual count of homeless
people other than those described in paragraphs (1) through
(4) of section 103(a) of this Act (42 U.S.C. 11302(a)).
‘‘(c) ADJUSTMENTS.—The Secretary may adjust the formula
described in subsection (b)(2) as necessary—
‘‘(1) to ensure that each collaborative applicant has sufficient funding to renew all qualified projects for at least one
year; and
‘‘(2) to ensure that collaborative applicants are not discouraged from replacing renewal projects with new projects that
the collaborative applicant determines will better be able to
meet the purposes of this Act.

Regulations.
Deadline.
Time period.

‘‘SEC. 428. ALLOCATION OF AMOUNTS AND INCENTIVES FOR SPECIFIC
ELIGIBLE ACTIVITIES.

42 USC 11386b.

‘‘(a) MINIMUM ALLOCATION FOR PERMANENT HOUSING FOR
HOMELESS INDIVIDUALS AND FAMILIES WITH DISABILITIES.—
‘‘(1) IN GENERAL.—From the amounts made available to
carry out this subtitle for a fiscal year, a portion equal to
not less than 30 percent of the sums made available to carry
out subtitle B and this subtitle, shall be used for permanent
housing for homeless individuals with disabilities and homeless
families that include such an individual who is an adult or
a minor head of household if no adult is present in the household.
‘‘(2) CALCULATION.—In calculating the portion of the
amount described in paragraph (1) that is used for activities
that are described in paragraph (1), the Secretary shall not
count funds made available to renew contracts for existing
projects under section 429.
‘‘(3) ADJUSTMENT.—The 30 percent figure in paragraph (1)
shall be reduced proportionately based on need under section
427(b)(2) in geographic areas for which subsection (e) applies
in regard to subsection (d)(2)(A).

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Contracts.

Applicability.

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Notice.
Public comments.

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‘‘(4) SUSPENSION.—The requirement established in paragraph (1) shall be suspended for any year in which funding
available for grants under this subtitle after making the allocation established in paragraph (1) would not be sufficient to
renew for 1 year all existing grants that would otherwise be
fully funded under this subtitle.
‘‘(5) TERMINATION.—The requirement established in paragraph (1) shall terminate upon a finding by the Secretary
that since the beginning of 2001 at least 150,000 new units
of permanent housing for homeless individuals and families
with disabilities have been funded under this subtitle.
‘‘(b) SET-ASIDE FOR PERMANENT HOUSING FOR HOMELESS FAMILIES WITH CHILDREN.—From the amounts made available to carry
out this subtitle for a fiscal year, a portion equal to not less
than 10 percent of the sums made available to carry out subtitle
B and this subtitle for that fiscal year shall be used to provide
or secure permanent housing for homeless families with children.
‘‘(c) TREATMENT OF AMOUNTS FOR PERMANENT OR TRANSITIONAL
HOUSING.—Nothing in this Act may be construed to establish a
limit on the amount of funding that an applicant may request
under this subtitle for acquisition, construction, or rehabilitation
activities for the development of permanent housing or transitional
housing.
‘‘(d) INCENTIVES FOR PROVEN STRATEGIES.—
‘‘(1) IN GENERAL.—The Secretary shall provide bonuses or
other incentives to geographic areas for using funding under
this subtitle for activities that have been proven to be effective
at reducing homelessness generally, reducing homelessness for
a specific subpopulation, or achieving homeless prevention and
independent living goals as set forth in section 427(b)(1)(F).
‘‘(2) RULE OF CONSTRUCTION.—For purposes of this subsection, activities that have been proven to be effective at
reducing homelessness generally or reducing homelessness for
a specific subpopulation includes—
‘‘(A) permanent supportive housing for chronically
homeless individuals and families;
‘‘(B) for homeless families, rapid rehousing services,
short-term flexible subsidies to overcome barriers to
rehousing, support services concentrating on improving
incomes to pay rent, coupled with performance measures
emphasizing rapid and permanent rehousing and with
leveraging funding from mainstream family service systems
such as Temporary Assistance for Needy Families and
Child Welfare services; and
‘‘(C) any other activity determined by the Secretary,
based on research and after notice and comment to the
public, to have been proven effective at reducing homelessness generally, reducing homelessness for a specific subpopulation, or achieving homeless prevention and independent living goals as set forth in section 427(b)(1)(F).
‘‘(3) BALANCE OF INCENTIVES FOR PROVEN STRATEGIES.—
To the extent practicable, in providing bonuses or incentives
for proven strategies, the Secretary shall seek to maintain
a balance among strategies targeting homeless individuals,
families, and other subpopulations. The Secretary shall not
implement bonuses or incentives that specifically discourage
collaborative applicants from exercising their flexibility to serve

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1695

families with children and youth defined as homeless under
other Federal statutes.
‘‘(e) INCENTIVES FOR SUCCESSFUL IMPLEMENTATION OF PROVEN
STRATEGIES.—If any geographic area demonstrates that it has fully
implemented any of the activities described in subsection (d) for
all homeless individuals and families or for all members of subpopulations for whom such activities are targeted, that geographic
area shall receive the bonus or incentive provided under subsection
(d), but may use such bonus or incentive for any eligible activity
under either section 423 or paragraphs (4) and (5) of section 415(a)
for homeless people generally or for the relevant subpopulation.
‘‘SEC. 429. RENEWAL FUNDING AND TERMS OF ASSISTANCE FOR
PERMANENT HOUSING.

‘‘(a) IN GENERAL.—Renewal of expiring contracts for leasing,
rental assistance, or operating costs for permanent housing contracts may be funded either—
‘‘(1) under the appropriations account for this title; or
‘‘(2) the section 8 project-based rental assistance account.
‘‘(b) RENEWALS.—The sums made available under subsection
(a) shall be available for the renewal of contracts in the case
of tenant-based assistance, successive 1-year terms, and in the
case of project-based assistance, successive terms of up to 15 years
at the discretion of the applicant or project sponsor and subject
to the availability of annual appropriations, for rental assistance
and housing operation costs associated with permanent housing
projects funded under this subtitle, or under subtitle C or F (as
in effect on the day before the effective date of the Homeless
Emergency Assistance and Rapid Transition to Housing Act of
2009). The Secretary shall determine whether to renew a contract
for such a permanent housing project on the basis of certification
by the collaborative applicant for the geographic area that—
‘‘(1) there is a demonstrated need for the project; and
‘‘(2) the project complies with program requirements and
appropriate standards of housing quality and habitability, as
determined by the Secretary.
‘‘(c) CONSTRUCTION.—Nothing in this section shall be construed
as prohibiting the Secretary from renewing contracts under this
subtitle in accordance with criteria set forth in a provision of
this subtitle other than this section.

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‘‘SEC. 430. MATCHING FUNDING.

Contracts.
42 USC 11386c.

Determination.

42 USC 11386d.

‘‘(a) IN GENERAL.—A collaborative applicant in a geographic
area in which funds are awarded under this subtitle shall specify
contributions from any source other than a grant awarded under
this subtitle, including renewal funding of projects assisted under
subtitles C, D, and F of this title as in effect before the effective
date under section 1503 of the Homeless Emergency Assistance
and Rapid Transition to Housing Act of 2009, that shall be made
available in the geographic area in an amount equal to not less
than 25 percent of the funds provided to recipients in the geographic
area, except that grants for leasing shall not be subject to any
match requirement.
‘‘(b) LIMITATIONS ON IN-KIND MATCH.—The cash value of services provided to the residents or clients of a project sponsor by
an entity other than the project sponsor may count toward the

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123 STAT. 1696

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contributions in subsection (a) only when documented by a memorandum of understanding between the project sponsor and the
other entity that such services will be provided.
‘‘(c) COUNTABLE ACTIVITIES.—The contributions required under
subsection (a) may consist of—
‘‘(1) funding for any eligible activity described under section
423; and
‘‘(2) subject to subsection (b), in-kind provision of services
of any eligible activity described under section 423.
42 USC 11386e.

‘‘SEC. 431. APPEAL PROCEDURE.

‘‘(a) IN GENERAL.—With respect to funding under this subtitle,
if certification of consistency with the consolidated plan pursuant
to section 403 is withheld from an applicant who has submitted
an application for that certification, such applicant may appeal
such decision to the Secretary.
‘‘(b) PROCEDURE.—The Secretary shall establish a procedure
to process the appeals described in subsection (a).
‘‘(c) DETERMINATION.—Not later than 45 days after the date
of receipt of an appeal described in subsection (a), the Secretary
shall determine if certification was unreasonably withheld. If such
certification was unreasonably withheld, the Secretary shall review
such application and determine if such applicant shall receive
funding under this subtitle.’’.

Deadline.

Appropriation
authorization.

SEC. 1306. RESEARCH.

There is authorized to be appropriated $8,000,000, for each
of fiscal years 2010 and 2011, for research into the efficacy of
interventions for homeless families, to be expended by the Secretary
of Housing and Urban Development over the 2 years at 3 different
sites to provide services for homeless families and evaluate the
effectiveness of such services.

TITLE IV—RURAL HOUSING STABILITY
ASSISTANCE PROGRAM

Homeless.
Grants.

SEC. 1401. RURAL HOUSING STABILITY ASSISTANCE.

Subtitle G of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11408 et seq.) is amended—
(1) by striking the subtitle heading and inserting the following:

‘‘Subtitle G—Rural Housing Stability
Assistance Program’’; and

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42 USC 11408.

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(2) in section 491—
(A) by striking the section heading and inserting
‘‘RURAL HOUSING STABILITY GRANT PROGRAM.’’;
(B) in subsection (a)—
(i) by striking ‘‘rural homelessness grant program’’
and inserting ‘‘rural housing stability grant program’’;
(ii) by inserting ‘‘in lieu of grants under subtitle
C’’ after ‘‘eligible organizations’’; and
(iii) by striking paragraphs (1), (2), and (3), and
inserting the following:

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‘‘(1) rehousing or improving the housing situations of
individuals and families who are homeless or in the worst
housing situations in the geographic area;
‘‘(2) stabilizing the housing of individuals and families who
are in imminent danger of losing housing; and
‘‘(3) improving the ability of the lowest-income residents
of the community to afford stable housing.’’;
(C) in subsection (b)(1)—
(i) by redesignating subparagraphs (E), (F), and
(G) as subparagraphs (I), (J), and (K), respectively;
and
(ii) by striking subparagraph (D) and inserting
the following:
‘‘(D) construction of new housing units to provide
transitional or permanent housing to homeless individuals
and families and individuals and families at risk of
homelessness;
‘‘(E) acquisition or rehabilitation of a structure to provide supportive services or to provide transitional or permanent housing, other than emergency shelter, to homeless
individuals and families and individuals and families at
risk of homelessness;
‘‘(F) leasing of property, or portions of property, not
owned by the recipient or project sponsor involved, for
use in providing transitional or permanent housing to
homeless individuals and families and individuals and
families at risk of homelessness, or providing supportive
services to such homeless and at-risk individuals and families;
‘‘(G) provision of rental assistance to provide transitional or permanent housing to homeless individuals and
families and individuals and families at risk of homelessness, such rental assistance may include tenant-based or
project-based rental assistance;
‘‘(H) payment of operating costs for housing units
assisted under this title;’’;
(D) in subsection (b)(2), by striking ‘‘appropriated’’ and
inserting ‘‘transferred’’;
(E) in subsection (c)—
(i) in paragraph (1)(A), by striking ‘‘appropriated’’
and inserting ‘‘transferred’’; and
(ii) in paragraph (3), by striking ‘‘appropriated’’
and inserting ‘‘transferred’’;
(F) in subsection (d)—
(i) in paragraph (5), by striking ‘‘; and’’ and
inserting a semicolon;
(ii) in paragraph (6)—
(I) by striking ‘‘an agreement’’ and all that
follows through ‘‘families’’ and inserting the following: ‘‘a description of how individuals and families who are homeless or who have the lowest
incomes in the community will be involved by the
organization’’; and
(II) by striking the period at the end, and
inserting a semicolon; and
(iii) by adding at the end the following:

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Deadline.

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‘‘(7) a description of consultations that took place within
the community to ascertain the most important uses for funding
under this section, including the involvement of potential beneficiaries of the project; and
‘‘(8) a description of the extent and nature of homelessness
and of the worst housing situations in the community.’’;
(G) by striking subsections (f) and (g) and inserting
the following:
‘‘(f) MATCHING FUNDING.—
‘‘(1) IN GENERAL.—An organization eligible to receive a
grant under subsection (a) shall specify matching contributions
from any source other than a grant awarded under this subtitle,
that shall be made available in the geographic area in an
amount equal to not less than 25 percent of the funds provided
for the project or activity, except that grants for leasing shall
not be subject to any match requirement.
‘‘(2) LIMITATIONS ON IN-KIND MATCH.—The cash value of
services provided to the beneficiaries or clients of an eligible
organization by an entity other than the organization may
count toward the contributions in paragraph (1) only when
documented by a memorandum of understanding between the
organization and the other entity that such services will be
provided.
‘‘(3) COUNTABLE ACTIVITIES.—The contributions required
under paragraph (1) may consist of—
‘‘(A) funding for any eligible activity described under
subsection (b); and
‘‘(B) subject to paragraph (2), in-kind provision of services of any eligible activity described under subsection (b).
‘‘(g) SELECTION CRITERIA.—The Secretary shall establish criteria for selecting recipients of grants under subsection (a),
including—
‘‘(1) the participation of potential beneficiaries of the project
in assessing the need for, and importance of, the project in
the community;
‘‘(2) the degree to which the project addresses the most
harmful housing situations present in the community;
‘‘(3) the degree of collaboration with others in the community to meet the goals described in subsection (a);
‘‘(4) the performance of the organization in improving
housing situations, taking account of the severity of barriers
of individuals and families served by the organization;
‘‘(5) for organizations that have previously received funding
under this section, the extent of improvement in homelessness
and the worst housing situations in the community since such
funding began;
‘‘(6) the need for such funds, as determined by the formula
established under section 427(b)(2); and
‘‘(7) any other relevant criteria as determined by the Secretary.’’;
(H) in subsection (h)—
(i) in paragraph (1), in the matter preceding
subparagraph (A), by striking ‘‘The’’ and inserting ‘‘Not
later than 18 months after funding is first made available pursuant to the amendments made by title IV
of the Homeless Emergency Assistance and Rapid
Transition to Housing Act of 2009, the’’; and

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(ii) in paragraph (1)(A), by striking ‘‘providing
housing and other assistance to homeless persons’’ and
inserting ‘‘meeting the goals described in subsection
(a)’’;
(iii) in paragraph (1)(B), by striking ‘‘address
homelessness in rural areas’’ and inserting ‘‘meet the
goals described in subsection (a) in rural areas’’; and
(iv) in paragraph (2)—
(I) by striking ‘‘The’’ and inserting ‘‘Not later
than 24 months after funding is first made available pursuant to the amendment made by title
IV of the Homeless Emergency Assistance and
Rapid Transition to Housing Act of 2009, the’’;
(II) by striking ‘‘, not later than 18 months
after the date on which the Secretary first makes
grants under the program,’’; and
(III) by striking ‘‘prevent and respond to
homelessness’’ and inserting ‘‘meet the goals
described in subsection (a)’’;
(I) in subsection (k)—
(i) in paragraph (1), by striking ‘‘rural homelessness grant program’’ and inserting ‘‘rural housing stability grant program’’; and
(ii) in paragraph (2)—
(I) in subparagraph (A), by striking ‘‘; or’’ and
inserting a semicolon;
(II) in subparagraph (B)(ii), by striking ‘‘rural
census tract.’’ and inserting ‘‘county where at least
75 percent of the population is rural; or’’; and
(III) by adding at the end the following:
‘‘(C) any area or community, respectively, located in
a State that has population density of less than 30 persons
per square mile (as reported in the most recent decennial
census), and of which at least 1.25 percent of the total
acreage of such State is under Federal jurisdiction, provided
that no metropolitan city (as such term is defined in section
102 of the Housing and Community Development Act of
1974) in such State is the sole beneficiary of the grant
amounts awarded under this section.’’;
(J) in subsection (l)—
(i) by striking the subsection heading and inserting
‘‘PROGRAM FUNDING.—’’; and
(ii) by striking paragraph (1) and inserting the
following:
‘‘(1) IN GENERAL.—The Secretary shall determine the total
amount of funding attributable under section 427(b)(2) to meet
the needs of any geographic area in the Nation that applies
for funding under this section. The Secretary shall transfer
any amounts determined under this subsection from the
Community Homeless Assistance Program and consolidate such
transferred amounts for grants under this section, except that
the Secretary shall transfer an amount not less than 5 percent
of the amount available under subtitle C for grants under
this section. Any amounts so transferred and not used for
grants under this section due to an insufficient number of
applications shall be transferred to be used for grants under
subtitle C.’’; and

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PUBLIC LAW 111–22—MAY 20, 2009

(K) by adding at the end the following:
‘‘(m) DETERMINATION OF FUNDING SOURCE.—For any fiscal year,
in addition to funds awarded under subtitle B, funds under this
title to be used in a city or county shall only be awarded under
either subtitle C or subtitle D.’’.

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SEC. 1402. GAO STUDY OF HOMELESSNESS AND HOMELESS ASSISTANCE IN RURAL AREAS.

(a) STUDY AND REPORT.—Not later than the expiration of the
12-month period beginning on the date of the enactment of this
division, the Comptroller General of the United States shall conduct
a study to examine homelessness and homeless assistance in rural
areas and rural communities and submit a report to the Congress
on the findings and conclusion of the study. The report shall contain
the following matters:
(1) A general description of homelessness, including the
range of living situations among homeless individuals and
homeless families, in rural areas and rural communities of
the United States, including tribal lands and colonias.
(2) An estimate of the incidence and prevalence of homelessness among individuals and families in rural areas and rural
communities of the United States.
(3) An estimate of the number of individuals and families
from rural areas and rural communities who migrate annually
to non-rural areas and non-rural communities for homeless
assistance.
(4) A description of barriers that individuals and families
in and from rural areas and rural communities encounter when
seeking to access homeless assistance programs, and recommendations for removing such barriers.
(5) A comparison of the rate of homelessness among individuals and families in and from rural areas and rural communities compared to the rate of homelessness among individuals
and families in and from non-rural areas and non-rural communities.
(6) A general description of homeless assistance for individuals and families in rural areas and rural communities of
the United States.
(7) A description of barriers that homeless assistance providers serving rural areas and rural communities encounter
when seeking to access Federal homeless assistance programs,
and recommendations for removing such barriers.
(8) An assessment of the type and amount of Federal
homeless assistance funds awarded to organizations serving
rural areas and rural communities and a determination as
to whether such amount is proportional to the distribution
of homeless individuals and families in and from rural areas
and rural communities compared to homeless individuals and
families in non-rural areas and non-rural communities.
(9) An assessment of the current roles of the Department
of Housing and Urban Development, the Department of Agriculture, and other Federal departments and agencies in administering homeless assistance programs in rural areas and rural
communities and recommendations for distributing Federal
responsibilities, including homeless assistance program
administration and grantmaking, among the departments and

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PUBLIC LAW 111–22—MAY 20, 2009

123 STAT. 1701

agencies so that service organizations in rural areas and rural
communities are most effectively reached and supported.
(b) ACQUISITION OF SUPPORTING INFORMATION.—In carrying out
the study under this section, the Comptroller General shall seek
to obtain views from the following persons:
(1) The Secretary of Agriculture.
(2) The Secretary of Housing and Urban Development.
(3) The Secretary of Health and Human Services.
(4) The Secretary of Education.
(5) The Secretary of Labor.
(6) The Secretary of Veterans Affairs.
(7) The Executive Director of the United States Interagency
Council on Homelessness.
(8) Project sponsors and recipients of homeless assistance
grants serving rural areas and rural communities.
(9) Individuals and families in or from rural areas and
rural communities who have sought or are seeking Federal
homeless assistance services.
(10) National advocacy organizations concerned with
homelessness, rural housing, and rural community development.
(c) EFFECTIVE DATE.—This section shall take effect on the date
of the enactment of this division.

TITLE V—REPEALS AND CONFORMING
AMENDMENTS
SEC. 1501. REPEALS.

Subtitles D, E, and F of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11391 et seq., 11401 et seq., and
11403 et seq.) are hereby repealed.

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SEC. 1502. CONFORMING AMENDMENTS.

42 USC 11361.

(a) CONSOLIDATED PLAN.—Section 403(1) of the McKinneyVento Homeless Assistance Act (as so redesignated by section
1101(2) of this division), is amended—
(1) by striking ‘‘current housing affordability strategy’’ and
inserting ‘‘consolidated plan’’; and
(2) by inserting before the comma the following: ‘‘(referred
to in such section as a ‘comprehensive housing affordability
strategy’)’’.
(b) PERSONS EXPERIENCING HOMELESSNESS.—Section 103 of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302), as
amended by the preceding provisions of this division, is further
amended by adding at the end the following new subsection:
‘‘(e) PERSONS EXPERIENCING HOMELESSNESS.—Any references
in this Act to homeless individuals (including homeless persons)
or homeless groups (including homeless persons) shall be considered
to include, and to refer to, individuals experiencing homelessness
or groups experiencing homelessness, respectively.’’.
(c) RURAL HOUSING STABILITY ASSISTANCE.—Title IV of the
McKinney-Vento Homeless Assistance Act is amended by redesignating subtitle G (42 U.S.C. 11408 et seq.), as amended by the
preceding provisions of this division, as subtitle D.

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123 STAT. 1702
Applicability.
42 USC 11302
note.

Publication.

42 USC 11301
note.
Deadline.

PUBLIC LAW 111–22—MAY 20, 2009

SEC. 1503. EFFECTIVE DATE.

Except as specifically provided otherwise in this division, this
division and the amendments made by this division shall take
effect on, and shall apply beginning on—
(1) the expiration of the 18-month period beginning on
the date of the enactment of this division, or
(2) the expiration of the 3-month period beginning upon
publication by the Secretary of Housing and Urban Development of final regulations pursuant to section 1504,
whichever occurs first.
SEC. 1504. REGULATIONS.

(a) IN GENERAL.—Not later than 12 months after the date
of the enactment of this division, the Secretary of Housing and
Urban Development shall promulgate regulations governing the
operation of the programs that are created or modified by this
division.
(b) EFFECTIVE DATE.—This section shall take effect on the
date of the enactment of this division.
SEC. 1505. AMENDMENT TO TABLE OF CONTENTS.

The table of contents in section 101(b) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11301 note) is amended by
striking the item relating to the heading for title IV and all that
follows through the item relating to section 492 and inserting
the following new items:
‘‘TITLE IV—HOUSING ASSISTANCE

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‘‘Subtitle A—General Provisions
Definitions.
Collaborative applicants.
Housing affordability strategy.
Preventing involuntary family separation.
Technical assistance.
Discharge coordination policy.
Protection of personally identifying information by victim service providers.
‘‘Sec. 408. Authorization of appropriations.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.

401.
402.
403.
404.
405.
406.
407.

‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.

411.
412.
413.
414.
415.
416.
417.
418.

‘‘Subtitle B—Emergency Solutions Grants Program
Definitions.
Grant assistance.
Amount and allocation of assistance.
Allocation and distribution of assistance.
Eligible activities.
Responsibilities of recipients.
Administrative provisions.
Administrative costs.

‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.

421.
422.
423.
424.
425.
426.
427.
428.
429.
430.
431.
432.
433.

‘‘Subtitle C—Continuum of Care Program
Purposes.
Continuum of care applications and grants.
Eligible activities.
Incentives for high-performing communities.
Supportive services.
Program requirements.
Selection criteria.
Allocation of amounts and incentives for specific eligible activities.
Renewal funding and terms of assistance for permanent housing.
Matching funding.
Appeal procedure.
Regulations.
Reports to Congress.

‘‘Subtitle D—Rural Housing Stability Assistance Program
‘‘Sec. 491. Rural housing stability assistance.

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123 STAT. 1703

‘‘Sec. 492. Use of FHMA inventory for transitional housing for homeless persons
and for turnkey housing.’’.

Approved May 20, 2009.

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LEGISLATIVE HISTORY—S. 896 (H.R. 1106):
CONGRESSIONAL RECORD, Vol. 155 (2009):
Apr. 30, May 1, 4–6, considered and passed Senate.
May 19, considered and passed House, amended. Senate concurred
in House amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2009):
May 20, Presidential remarks.

Æ

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