H.R. 3068 (111th): TARP for Main Street Act of 2009

111th Congress, 2009–2010. Text as of Jun 26, 2009 (Introduced).

Status & Summary | PDF | Source: GPO

I

111th CONGRESS

1st Session

H. R. 3068

IN THE HOUSE OF REPRESENTATIVES

June 26, 2009

(for himself, Ms. Waters, Mr. Cardoza, and Ms. Velázquez) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To use amounts made available under the Troubled Assets Relief Program of the Secretary of the Treasury for relief for homeowners and neighborhoods.

1.

Short title

This Act may be cited as the TARP for Main Street Act of 2009.

2.

Housing Trust Fund

From dividends paid by financial institutions that have received financial assistance provided under title I of division A of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.), the Secretary of the Treasury shall transfer and credit $1,000,000,000 to the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4567) for use in accordance with such section.

3.

Neighborhood Stabilization Program

From dividends paid by financial institutions that have received financial assistance provided under title I of division A of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.), the Secretary of the Treasury shall transfer $1,500,000,000 to the Secretary of Housing and Urban Development and such Secretary shall use such amounts for assistance to States and units of general local government for the redevelopment of abandoned and foreclosed homes, in accordance with the same provisions applicable under the second undesignated paragraph under the heading Community Planning and Development—Community Development Fund in title XII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 217) to amounts made available under such second undesignated paragraph, except as follows:

(1)

Notwithstanding the matter of such second undesignated paragraph that precedes the first proviso, amounts made available by this section shall remain available until expended.

(2)

The 3rd, 4th, 5th, 6th, 7th, and 15th provisos of such second undesignated paragraph shall not apply to amounts made available by this section.

(3)

Amounts made available by this section shall be allocated based on a funding formula for such amounts established by the Secretary in accordance with section 2301(b) of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 note), except that—

(A)

notwithstanding paragraph (2) of such section 2301(b), the formula shall be established not later than 30 days after the date of the enactment of this Act;

(B)

the Secretary may not establish any minimum grant amount or size for grants to States; and

(C)

the Secretary may establish a minimum grant amount for direct allocations to units of general local government located within a State, which shall not exceed $1,000,000.

(4)

Paragraph (1) of section 2301(c) of the Housing and Economic Recovery Act of 2008 shall not apply to amounts made available by this section.

(5)

Section 2302 of the Housing and Economic Recovery Act of 2008 shall not apply to amounts made available by this section.

(6)

The fourth proviso from the end of such second undesignated paragraph shall be applied to amounts made available by this section by substituting 2013 for 2012.

(7)

Notwithstanding section 2301(a) of the Housing and Economic Recovery Act of 2008, the term State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, and other territory or possession of the United States for purposes of this section and title III of division B of such Act, as applied to amounts made available by this section.

4.

Emergency mortgage relief

(a)

Use of TARP funds

Using the authority available under section 115(a) of division A of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)), the Secretary of the Treasury shall transfer to the Secretary of Housing and Urban Development $2,000,000,000, and the Secretary of Housing and Urban Development shall credit such amount to the Emergency Homeowners’ Relief Fund, which such Secretary shall establish pursuant to section 107 of the Emergency Housing Act of 1975 (12 U.S.C. 2706), as such Act is amended by this section, for use for emergency mortgage assistance in accordance with title I of such Act.

(b)

Reauthorization of emergency mortgage relief program

Title I of the Emergency Housing Act of 1975 is amended—

(1)

in section 103(2) (12 U.S.C. 2702(2)—

(A)

by striking have indicated and all that follows through regulation of the holder and insert have certified;

(B)

by striking (such as the volume of delinquent loans in its portfolio); and

(C)

by striking , except that such statement and all that follows through purposes of this title;

(2)

in section 104(b) (12 U.S.C. 2703(b)), by striking the lesser of $250 per month;

(3)

in section 105(e) (12 U.S.C. 2704(e)), by striking $1,500,000,000 and inserting $2,000,000,000;

(4)

in section 109 (12 U.S.C. 2708)—

(A)

in the section heading, by striking authorization and;

(B)

by striking subsection (a);

(C)

by striking (b); and

(D)

by striking 1977 and inserting 2011; and

(5)

by striking sections 110, 111, and 113 (12 U.S.C. 2709, 2710, 2712).

5.

Multifamily mortgage resolution

(a)

Use of TARP funds

Using the authority available under section 115(a) of division A of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)), the Secretary of the Treasury shall transfer $2,000,000,000 to the Secretary of Housing and Urban Development for use under the program developed under subsection (b) to stabilize multifamily properties that are in default or foreclosure, or have recently been foreclosed.

(b)

Multifamily mortgage resolution program

The Secretary of Housing and Urban Development shall develop a program under this subsection to ensure the protection of current and future tenants of at-risk multifamily properties, where feasible, based on criteria that may include—

(1)

creating sustainable financing of such properties, that may take into consideration such factors as—

(A)

the rental income generated by such properties; and

(B)

the preservation of adequate operating reserves;

(2)

maintaining the level of Federal, State, and city subsidies in effect as of the date of enactment of this Act;

(3)

providing funds for rehabilitation; and

(4)

facilitating the transfer of such properties, when appropriate and with the agreement of owners, to responsible new owners and ensuring affordability of such properties.

(c)

Definition

For purposes of this section, the term multifamily properties means a residential structure that consists of 5 or more dwelling units.

6.

Reducing TARP authorization limit to offset costs

Paragraph (3) of section 115(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225) is amended by inserting after $1,244,000,000 the following: , and as such amount is further reduced by such sums as may be necessary for assistance and costs (as such term is defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of loans, advances, insurance, and appropriations as authorized under the TARP for Main Street Act of 2009 .