HR 1640 — HEIRS Act of 2025

changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

 HOUSING AND URBAN DEVELOPMENT ACT OF 1968

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 TITLE I--LOWER INCOME HOUSING

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 technical assistance, counseling to tenants and homeowners, and loans 
 to sponsors of low- and moderate-income housing

 Sec. 106. (a)(1) The Secretary is authorized to provide, or 
contract with public or private organizations to provide, 
information, advice, and technical assistance, including but 
not limited to--
 
 (i) the assembly, correlation, publication, and 
 dissemination of information with respect to the 
 construction, rehabilitation, and operation of low- and 
 moderate-income housing;
 (ii) the provision of advice and technical assistance 
 to public bodies or to nonprofit or cooperative 
 organizations with respect to the construction, 
 rehabilitation, and operation of low- and moderate-
 income housing, including assistance with respect to 
 self-help and mutual self-help programs;
 (iii) counseling and advice to tenants and homeowners 
 with respect to property maintenance, financial 
 management, and such other matters as may be 
 appropriate to assist them in improving their housing 
 conditions and in meeting the responsibilities of 
 tenancy or homeownership; and
 (iv) the provision of technical assistance to 
 communities, particularly smaller communities, to 
 assist such communities in planning, developing, and 
 administering Community Development Programs pursuant 
 to title I of the Housing and Community Development Act 
 of 1974.
 (2) The Secretary (A) shall provide the services described in 
clause (iii) of paragraph (1) for homeowners assisted under 
section 235 of the National Housing Act; (B) shall, in 
consultation with the Secretary of Agriculture, provide such 
services for borrowers who are first-time homebuyers with 
guaranteed loans under section 502(h) of the Housing Act of 
1949; and (C) may provide such services for other owners of 
single family dwelling units insured under title II of the 
National Housing Act or guaranteed or insured under chapter 37 
of title 38, United States Code. For purposes of this paragraph 
and clause (iii) of paragraph (1), the Secretary may provide 
the services described in such clause directly or may enter 
into contracts with, make grants to, and provide other types of 
assistance to private or public organizations with special 
competence and knowledge in counseling low- and moderate-income 
families to provide such services.
 (3) There is authorized to be appropriated for the purposes 
of this subsection, without fiscal year limitation, such sums 
as may be necessary, except that for such purposes there are 
authorized to be appropriated $6,025,000 for fiscal year 1993 
and $6,278,050 for fiscal year 1994. Of the amounts 
appropriated for each of fiscal years 1993 and 1994, up to 
$500,000 shall be available for use for counseling and other 
activities in connection with the demonstration program under 
section 152 of the Housing and Community Development Act of 
1992. Any amounts so appropriated shall remain available until 
expended.
 (4) Homeownership and Rental Counseling Assistance.--
 (A) In general.--The Secretary shall make financial 
 assistance available under this paragraph to HUD-
 approved housing counseling agencies and State housing 
 finance agencies.
 (B) Qualified entities.--The Secretary shall 
 establish standards and guidelines for eligibility of 
 organizations (including governmental and nonprofit 
 organizations) to receive assistance under this 
 paragraph, in accordance with subparagraph (D).
 (C) Distribution.--Assistance made available under 
 this paragraph shall be distributed in a manner that 
 encourages efficient and successful counseling programs 
 and that ensures adequate distribution of amounts for 
 rural areas having traditionally low levels of access 
 to such counseling services, including areas with 
 insufficient access to the Internet. In distributing 
 such assistance, the Secretary may give priority 
 consideration to entities serving areas with the 
 highest home foreclosure rates.
 (D) Limitation on distribution of assistance.--
 (i) In general.--None of the amounts made 
 available under this paragraph shall be 
 distributed to--
 (I) any organization which has been 
 convicted for a violation under Federal 
 law relating to an election for Federal 
 office; or
 (II) any organization which employs 
 applicable individuals.
 (ii) Definition of applicable individuals.--
 In this subparagraph, the term ``applicable 
 individual'' means an individual who--
 (I) is--
 (aa) employed by the 
 organization in a permanent or 
 temporary capacity;
 (bb) contracted or retained 
 by the organization; or
 (cc) acting on behalf of, or 
 with the express or apparent 
 authority of, the organization; 
 and
 (II) has been convicted for a 
 violation under Federal law relating to 
 an election for Federal office.
 (E) Grantmaking process.--In making assistance 
 available under this paragraph, the Secretary shall 
 consider appropriate ways of streamlining and improving 
 the processes for grant application, review, approval, 
 and award.
 (F) Authorization of appropriations.--There are 
 authorized to be appropriated $45,000,000 for each of 
 fiscal years 2009 through 2012 for--
 (i) the operations of the Office of Housing 
 Counseling of the Department of Housing and 
 Urban Development;
 (ii) the responsibilities of the Director of 
 Housing Counseling under paragraphs (2) through 
 (5) of subsection (g); and
 (iii) assistance pursuant to this paragraph 
 for entities providing homeownership and rental 
 counseling.
 (b)(1) The Secretary is authorized to make loans to nonprofit 
organizations or public housing agencies for the necessary 
expenses, prior to construction, in planning, and obtaining 
financing for, the rehabilitation or construction of housing 
for low- or moderate-income families under section 235 of the 
National Housing Act or any other federally assisted program. 
Such loans shall be made without interest and shall not exceed 
80 per centum of the reasonable costs expected to be incurred 
in planning, and in obtaining financing for, such housing prior 
to the availability of financing, including, but not limited 
to, preliminary surveys and analyses of market needs, 
preliminary site engineering and architectural fees, site 
acquisition, application, and mortgage commitment fees, and 
construction loan fees and discounts. The Secretary shall 
require repayment of loans made under this subsection, under 
such terms and conditions as he may require, upon completion of 
the project or sooner, and may cancel any part or all of a loan 
if he determines that it cannot be recovered from the proceeds 
of any permanent loan made to finance the rehabilitation or 
construction of the housing.
 (2) The Secretary shall determine prior to the making of any 
loan that the nonprofit organization or public housing agency 
meets such requirements with respect to financial 
responsibility and stability as he may prescribe.
 (3) There are authorized to be appropriated for the purposes 
of this subsection not to exceed $7,500,000, for the fiscal 
year ending June 30, 1969, and not to exceed $10,000,000 for 
the fiscal year ending June 30, 1970. Any amounts so 
appropriated shall remain available until expended, and any 
amounts authorized for any fiscal year under this paragraph but 
not appropriated may be appropriated for any succeeding fiscal 
year.
 (4) All funds appropriated for the purposes of this 
subsection shall be deposited in a fund which shall be known as 
the Low and Moderate Income Sponsor Fund, and which shall be 
available without fiscal year limitation and be administered by 
the Secretary as a revolving fund for carrying out the purposes 
of this subsection. Sums received in repayment of loans made 
under this subsection shall be deposited in such fund.
 (c) Grants for Homeownership Counseling Organizations.--
 (1) In general.--The Secretary of Housing and Urban 
 Development may make grants--
 (A) to nonprofit organizations experienced in 
 the provision of homeownership counseling to 
 enable the organizations to provide 
 homeownership counseling to eligible 
 homeowners; and
 (B) to assist in the establishment of 
 nonprofit homeownership counseling 
 organizations.
 (2) Program requirements.--
 (A) Applications for grants under this 
 subsection shall be submitted in the form, and 
 in accordance with the procedures, that the 
 Secretary requires.
 (B) The homeownership counseling 
 organizations receiving assistance under this 
 subsection shall use the assistance only to 
 provide homeownership counseling to eligible 
 homeowners.
 (C) The homeownership counseling provided by 
 homeownership counseling organizations 
 receiving assistance under this subsection 
 shall include counseling with respect to--
 (i) financial management;
 (ii) available community resources, 
 including public assistance programs, 
 mortgage assistance programs, home 
 repair assistance programs, utility 
 assistance programs, food programs, and 
 social services; and
 (iii) employment training and 
 placement.
 (3) Availability of homeownership counseling.--The 
 Secretary shall take any action that is necessary--
 (A) to ensure the availability throughout the 
 United States of homeownership counseling from 
 homeownership counseling organizations 
 receiving assistance under this subsection, 
 with priority to areas that--
 (i) are experiencing high rates of 
 home foreclosure and any other 
 indicators of homeowner distress 
 determined by the Secretary to be 
 appropriate;
 (ii) are not already adequately 
 served by homeownership counseling 
 organizations; and
 (iii) have a high incidence of 
 mortgages involving principal 
 obligations (including such initial 
 service charges, appraisal, inspection, 
 and other fees as the Secretary shall 
 approve) in excess of 97 percent of the 
 appraised value of the properties that 
 are insured pursuant to section 203 of 
 the National Housing Act; and
 (B) to inform the public of the availability 
 of the homeownership counseling.
 (4) Eligibility for counseling.--A homeowner shall be 
 eligible for homeownership counseling under this 
 subsection if--
 (A) the home loan is secured by property that 
 is the principal residence (as defined by the 
 Secretary) of the homeowner;
 (B) the home loan is not assisted under title 
 V of the Housing Act of 1949; and
 (C) the homeowner is, or is expected to be, 
 unable to make payments, correct a home loan 
 delinquency within a reasonable time, or resume 
 full home loan payments due to a reduction in 
 the income of the homeowner because of--
 (i) an involuntary loss of, or 
 reduction in, the employment of the 
 homeowner, the self-employment of the 
 homeowner, or income from the pursuit 
 of the occupation of the homeowner;
 (ii) any similar loss or reduction 
 experienced by any person who 
 contributes to the income of the 
 homeowner;
 (iii) a significant reduction in the 
 income of the household due to divorce 
 or death; or
 (iv) a significant increase in basic 
 expenses of the homeowner or an 
 immediate family member of the 
 homeowner (including the spouse, child, 
 or parent for whom the homeowner 
 provides substantial care or financial 
 assistance) due to--
 (I) an unexpected or 
 significant increase in medical 
 expenses;
 (II) a divorce;
 (III) unexpected and 
 significant damage to the 
 property, the repair of which 
 will not be covered by private 
 or public insurance; or
 (IV) a large property-tax 
 increase; or
 (D) the Secretary of Housing and Urban 
 Development determines that the annual income 
 of the homeowner is no greater than the annual 
 income established by the Secretary as being of 
 low- or moderate-income.
 (5) Notification of availability of homeownership 
 counseling.--
 (A) Notification of availability of 
 homeownership counseling.--
 (i) Requirement.--Except as provided 
 in subparagraph (C), the creditor of a 
 loan (or proposed creditor) shall 
 provide notice under clause (ii) to (I) 
 any eligible homeowner who fails to pay 
 any amount by the date the amount is 
 due under a home loan, and (II) any 
 applicant for a mortgage described in 
 paragraph (4).
 (ii) Content.--Notification under 
 this subparagraph shall--
 (I) notify the homeowner or 
 mortgage applicant of the 
 availability of any 
 homeownership counseling 
 offered by the creditor (or 
 proposed creditor);
 (II) if provided to an 
 eligible mortgage applicant, 
 state that completion of a 
 counseling program is required 
 for insurance pursuant to 
 section 203 of the National 
 Housing Act;
 (III) notify the homeowner or 
 mortgage applicant of the 
 availability of homeownership 
 counseling provided by 
 nonprofit organizations 
 approved by the Secretary and 
 experienced in the provision of 
 homeownership counseling, or 
 provide the toll-free telephone 
 number described in 
 subparagraph (D)(i);
 (IV) notify the homeowner by 
 a statement or notice, written 
 in plain English by the 
 Secretary of Housing and Urban 
 Development, in consultation 
 with the Secretary of Defense 
 and the Secretary of the 
 Treasury, explaining the 
 mortgage and foreclosure rights 
 of servicemembers, and the 
 dependents of such 
 servicemembers, under the 
 Servicemembers Civil Relief Act 
 (50 U.S.C. App. 501 et seq.), 
 including the toll-free 
 military one source number to 
 call if servicemembers, or the 
 dependents of such 
 servicemembers, require further 
 assistance; and
 (V) notify the housing or 
 mortgage applicant of the 
 availability of mortgage 
 software systems provided 
 pursuant to subsection (g)(3).
 (B) Deadline for notification.--The 
 notification required in subparagraph (A) shall 
 be made--
 (i) in a manner approved by the 
 Secretary; and
 (ii) before the expiration of the 45-
 day period beginning on the date on 
 which the failure referred to in such 
 subparagraph occurs.
 (C) Notification.--Notification under 
 subparagraph (A) shall not be required with 
 respect to any loan for which the eligible 
 homeowner pays the amount overdue before the 
 expiration of the 45-day period under 
 subparagraph (B)(ii).
 (D) Administration and compliance.--The 
 Secretary shall, to the extent of amounts 
 approved in appropriation Acts, enter into an 
 agreement with an appropriate private entity 
 under which the entity will--
 (i) operate a toll-free telephone 
 number through which any eligible 
 homeowner can obtain a list of 
 nonprofit organizations, which shall be 
 updated annually, that--
 (I) are approved by the 
 Secretary and experienced in 
 the provision of homeownership 
 counseling; and
 (II) serve the area in which 
 the residential property of the 
 homeowner is located;
 (ii) monitor the compliance of 
 creditors with the requirements of 
 subparagraphs (A) and (B); and
 (iii) report to the Secretary not 
 less than annually regarding the extent 
 of compliance of creditors with the 
 requirements of subparagraphs (A) and 
 (B).
 (E) Report.--The Secretary shall submit a 
 report to the Congress not less than annually 
 regarding the extent of compliance of creditors 
 with the requirements of subparagraphs (A) and 
 (B) and the effectiveness of the entity 
 monitoring such compliance. The Secretary shall 
 also include in the report any recommendations 
 for legislative action to increase the 
 authority of the Secretary to penalize 
 creditors who do not comply with such 
 requirements.
 (6) Definitions.--For purposes of this subsection:
 (A) The term ``creditor'' means a person or 
 entity that is servicing a home loan on behalf 
 of itself or another person or entity.
 (B) The term ``eligible homeowner'' means a 
 homeowner eligible for counseling under 
 paragraph (4).
 (C) The term ``home loan'' means a loan 
 secured by a mortgage or lien on residential 
 property.
 (D) The term ``homeowner'' means a person who 
 is obligated under a home loan.
 (E) The term ``residential property'' means a 
 1-family residence, including a 1-family unit 
 in a condominium project, a membership interest 
 and occupancy agreement in a cooperative 
 housing project, and a manufactured home and 
 the lot on which the home is situated.
 (7) Regulations.--The Secretary shall issue any 
 regulations that are necessary to carry out this 
 subsection.
 (8) Authorization of appropriations.--There are 
 authorized to be appropriated to carry out this section 
 $7,000,000 for fiscal year 1993 and $7,294,000 for 
 fiscal year 1994, of which amounts $1,000,000 shall be 
 available in each such fiscal year to carry out 
 paragraph (5)(D). Any amount appropriated under this 
 subsection shall remain available until expended.
 (d) Prepurchase and Foreclosure-Prevention Counseling 
Demonstration.--
 (1) Purposes.--The purpose of this subsection is--
 (A) to reduce defaults and foreclosures on 
 mortgage loans insured under the Federal 
 Housing Administration single family mortgage 
 insurance program;
 (B) to encourage responsible and prudent use 
 of such federally insured home mortgages;
 (C) to assist homeowners with such federally 
 insured mortgages to retain the homes they have 
 purchased pursuant to such mortgages; and
 (D) to encourage the availability and 
 expansion of housing opportunities in 
 connection with such federally insured home 
 mortgages.
 (2) Authority.--The Secretary of Housing and Urban 
 Development shall carry out a program to demonstrate 
 the effectiveness of providing coordinated prepurchase 
 counseling and foreclosure-prevention counseling to 
 first-time homebuyers and homeowners in avoiding 
 defaults and foreclosures on mortgages insured under 
 the Federal Housing Administration single family home 
 mortgage insurance program.
 (3) Grants.--Under the demonstration program under 
 this subsection, the Secretary shall make grants to 
 qualified nonprofit organizations under paragraph (4) 
 to enable the organizations to provide prepurchase 
 counseling services to eligible homebuyers and 
 foreclosure-prevention counseling services to eligible 
 homeowners, in counseling target areas.
 (4) Qualified nonprofit organizations.--The Secretary 
 shall select nonprofit organizations to receive 
 assistance under the demonstration program under this 
 subsection based on the experience and ability of the 
 organizations in providing homeownership counseling and 
 their ability to provide community-based prepurchase 
 and foreclosure-prevention counseling under paragraphs 
 (5) and (6) in a counseling target area. To be eligible 
 for selection under this paragraph, a nonprofit 
 organization shall submit an application containing a 
 proposal for providing counseling services in the form 
 and manner required by the Secretary.
 (5) Prepurchase counseling.--
 (A) Mandatory participation.--Under the 
 demonstration program, the Secretary shall 
 require any eligible homebuyer who intends to 
 purchase a home located in a counseling target 
 area and who has applied for (as determined by 
 the Secretary) a qualified mortgage (as such 
 term is defined in paragraph (9)) on such home 
 that involves a downpayment of less than 10 
 percent of the principal obligation of the 
 mortgage, to receive counseling prior to 
 signing of a contract to purchase the home. The 
 counseling shall include counseling with 
 respect to--
 (i) financial management and the 
 responsibilities involved in 
 homeownership;
 (ii) fair housing laws and 
 requirements;
 (iii) the maximum mortgage amount 
 that the homebuyer can afford; and
 (iv) options, programs, and actions 
 available to the homebuyer in the event 
 of actual or potential delinquency or 
 default.
 (B) Eligibility for counseling.--A homebuyer 
 shall be eligible for prepurchase counseling 
 under this paragraph if--
 (i) the homebuyer has applied for a 
 qualified mortgage;
 (ii) the homebuyer is a first-time 
 homebuyer; and
 (iii) the home to be purchased under 
 the qualified mortgage is located in a 
 counseling target area.
 (6) Foreclosure-prevention counseling.--
 (A) Availability.--Under the demonstration 
 program, the Secretary shall make counseling 
 available for eligible homeowners who are 60 or 
 more days delinquent with respect to a payment 
 under a qualified mortgage on a home located 
 within a counseling target area. The counseling 
 shall include counseling with respect to 
 options, programs, and actions available to the 
 homeowner for resolving the delinquency or 
 default.
 (B) Notification of delinquency.--Under the 
 demonstration program, the Secretary shall 
 require the creditor of any eligible homeowner 
 who is delinquent (as described in subparagraph 
 (A)) to send written notice by registered or 
 certified mail within 5 days (excluding 
 Saturdays, Sundays, and legal public holidays) 
 after the occurrence of such delinquency--
 (i) notifying the homeowner of the 
 delinquency and the name, address, and 
 phone number of the counseling 
 organization for the counseling target 
 area; and
 (ii) notifying any counseling 
 organization for the counseling target 
 area of the delinquency and the name, 
 address, and phone number of the 
 delinquent homeowner.
 (C) Coordination with emergency homeownership 
 counseling program.--The Secretary may 
 coordinate the provision of assistance under 
 subsection (c) with the demonstration program 
 under this subsection.
 (D) Eligibility for counseling.--A homeowner 
 shall be eligible for foreclosure-prevention 
 counseling under this paragraph if--
 (i) the home owned by the homeowner 
 is subject to a qualified mortgage; and
 (ii) such home is located in a 
 counseling target area.
 (7) Scope of demonstration program.--
 (A) Designation of counseling target areas.--
 The Secretary shall designate 3 counseling 
 target areas (as provided in subparagraph (B)), 
 which shall be located in not less than 2 
 separate metropolitan areas. The Secretary 
 shall provide for counseling under the 
 demonstration program under this subsection 
 with respect to only such counseling target 
 areas.
 (B) Counseling target areas.--Each counseling 
 target area shall consist of a group of 
 contiguous census tracts--
 (i) the population of which is 
 greater than 50,000;
 (ii) which together constitute an 
 identifiable neighborhood, area, 
 borough, district, or region within a 
 metropolitan area (except that this 
 clause may not be construed to exclude 
 a group of census tracts containing 
 areas not wholly contained within a 
 single town, city, or other political 
 subdivision of a State);
 (iii) in which the average age of 
 existing housing is greater than 20 
 years; and
 (iv) for which (I) the percentage of 
 qualified mortgages on homes within the 
 area that are foreclosed exceeds 5 
 percent for the calendar year preceding 
 the year in which the area is selected 
 as a counseling target area, or (II) 
 the number of qualified mortgages 
 originated on homes in such area in the 
 calendar year preceding the calendar 
 year in which the area is selected as a 
 counseling target area exceeds 20 
 percent of the total number of 
 mortgages originated on residences in 
 the area during such year.
 (C) Mortgage characteristics.--In designating 
 counseling target areas under subparagraph (A), 
 the Secretary shall designate at least 1 such 
 area that meets the requirements of 
 subparagraph (B)(iv)(I) and at least 1 such 
 area that meets the requirements of 
 subparagraph (B)(iv)(II).
 (D) Expansion of target areas.--The Secretary 
 may expand any counseling target area during 
 the term of the demonstration program, if the 
 Secretary determines that counseling can be 
 adequately provided within such expanded area 
 and the purposes of this subsection will be 
 furthered by such expansion. Any such expansion 
 shall include only groups of census tracts that 
 are contiguous to the counseling target area 
 expanded and such census tract groups shall not 
 be subject to the provisions of subparagraph 
 (B).
 (E) Designation of control areas.--For 
 purposes of determining the effectiveness of 
 counseling under the demonstration program, the 
 Secretary shall designate 3 control areas, each 
 of which shall correspond to 1 of the 
 counseling target areas designated under 
 subparagraph (A). Each control area shall be 
 located in the metropolitan area in which the 
 corresponding counseling target area is 
 located, shall meet the requirements of 
 subparagraph (B), and shall be similar to such 
 area with respect to size, age of housing 
 stock, median income, and racial makeup of the 
 population. Each control area shall also comply 
 with the requirements of subclause (I) or (II) 
 of subparagraph (B)(iv), according to the 
 subclause with which the corresponding 
 counseling target area complies.
 (8) Evaluation.--Each organization providing 
 counseling under the demonstration program under this 
 subsection shall maintain records with respect to each 
 eligible homebuyer and eligible homeowner counseled and 
 shall provide information with respect to such 
 counseling as the Secretary or the Comptroller General 
 may require.
 (9) Definitions.--For purposes of this subsection:
 (A) The term ``control area'' means an area 
 designated by the Secretary under paragraph 
 (7)(E).
 (B) The term ``counseling target area'' means 
 an area designated by the Secretary under 
 paragraph (7)(A).
 (C) The term ``creditor'' means a person or 
 entity that is servicing a loan secured by a 
 qualified mortgage on behalf of itself or 
 another person or entity.
 (D) The term ``displaced homemaker'' means an 
 individual who--
 (i) is an adult;
 (ii) has not worked full-time, full-
 year in the labor force for a number of 
 years, but has during such years, 
 worked primarily without remuneration 
 to care for the home and family; and
 (iii) is unemployed or underemployed 
 and is experiencing difficulty in 
 obtaining or upgrading employment.
 (E) The term ``downpayment'' means the amount 
 of purchase price of home required to be paid 
 at or before the time of purchase.
 (F) The term ``eligible homebuyer'' means a 
 homebuyer that meets the requirements under 
 paragraph (5)(B).
 (G) The term ``eligible homeowner'' means a 
 homeowner that meets the requirements under 
 paragraph (6)(D).
 (H) The term ``first-time homebuyer'' means 
 an individual who--
 (i) (and whose spouse) has had no 
 ownership in a principal residence 
 during the 3-year period ending on the 
 date of purchase of the home pursuant 
 to which counseling is provided under 
 this subsection;
 (ii) is a displaced homemaker who, 
 except for owning a residence with his 
 or her spouse or residing in a 
 residence owned by the spouse, meets 
 the requirements of clause (i); or
 (iii) is a single parent who, except 
 for owning a residence with his or her 
 spouse or residing in a residence owned 
 by the spouse while married, meets the 
 requirements of clause (i).
 (I) The term ``home'' includes any dwelling 
 or dwelling unit eligible for a qualified 
 mortgage, and includes a unit in a condominium 
 project, a membership interest and occupancy 
 agreement in a cooperative housing project, and 
 a manufactured home and the lot on which the 
 home is situated.
 (J) The term ``metropolitan area'' means a 
 standard metropolitan statistical area as 
 designated by the Director of the Office of 
 Management and Budget.
 (K) The term ``qualified mortgage'' means a 
 mortgage on a 1- to 4-family home that is 
 insured under title II of the National Housing 
 Act.
 (L) The term ``Secretary'' means the 
 Secretary of Housing and Urban Development.
 (M) The term ``single parent'' means an 
 individual who--
 (i) is unmarried or legally separated 
 from a spouse; and
 (ii)(I) has 1 or more minor children 
 for whom the individual has custody or 
 joint custody; or
 (II) is pregnant.
 (10) Regulations.--The Secretary may issue any 
 regulations necessary to carry out this subsection.
 (11) Authorization of appropriations.--There are 
 authorized to be appropriated to carry out this 
 subsection $365,000 for fiscal year 1993 and $380,330 
 for fiscal year 1994.
 (12) Termination.--The demonstration program under 
 this subsection shall terminate at the end of fiscal 
 year 1994.
 (e) Certification.--
 (1) Requirement for assistance.--An organization may 
 not receive assistance for counseling activities under 
 subsection (a)(1)(iii), (a)(2), (a)(4), (c), or (d) of 
 this section, or under section 101(e), unless the 
 organization, or the individuals through which the 
 organization provides such counseling, has been 
 certified by the Secretary under this subsection as 
 competent to provide such counseling.
 (2) Standards and examination.--The Secretary shall, 
 by regulation, establish standards and procedures for 
 testing and certifying counselors and for certifying 
 organizations. Such standards and procedures shall 
 require, for certification of an organization, that 
 each individual through which the organization provides 
 counseling shall demonstrate, and, for certification of 
 an individual, that the individual shall demonstrate, 
 by written examination (as provided under subsection 
 (f)(4)), competence to provide counseling in each of 
 the following areas:
 (A) Financial management.
 (B) Property maintenance.
 (C) Responsibilities of homeownership and 
 tenancy.
 (D) Fair housing laws and requirements.
 (E) Housing affordability.
 (F) Avoidance of, and responses to, rental 
 and mortgage delinquency and avoidance of 
 eviction and mortgage default.
 (3) Requirement under hud programs.--Any 
 homeownership counseling or rental housing counseling 
 (as such terms are defined in subsection (g)(1)) 
 required under, or provided in connection with, any 
 program administered by the Department of Housing and 
 Urban Development shall be provided only by 
 organizations or counselors certified by the Secretary 
 under this subsection as competent to provide such 
 counseling.
 (4) Outreach.--The Secretary shall take such actions 
 as the Secretary considers appropriate to ensure that 
 individuals and organizations providing homeownership 
 or rental housing counseling are aware of the 
 certification requirements and standards of this 
 subsection and of the training and certification 
 programs under subsection (f).
 (5) Encouragement.--The Secretary shall encourage 
 organizations engaged in providing homeownership and 
 rental counseling that do not receive assistance under 
 this section to employ organizations and individuals to 
 provide such counseling who are certified under this 
 subsection or meet the certification standards 
 established under this subsection.
 (f) Homeownership and Rental Counselor Training and 
Certification Programs.--
 (1) Establishment.--To the extent amounts are 
 provided in appropriations Acts under paragraph (7), 
 the Secretary shall contract with an appropriate entity 
 (which may be a nonprofit organization) to carry out a 
 program under this subsection to train individuals to 
 provide homeownership and rental counseling and to 
 administer the examination under subsection (e)(2) and 
 certify individuals under such subsection.
 (2) Eligibility and selection.--
 (A) Eligibility.--To be eligible to provide 
 the training and certification program under 
 this subsection, an entity shall have 
 demonstrated experience in training 
 homeownership and rental counselors.
 (B) Selection.--The Secretary shall provide 
 for entities meeting the requirements of 
 subparagraph (A) to submit applications to 
 provide the training and certification program 
 under this subsection. The Secretary shall 
 select an application based on the ability of 
 the entity to--
 (i) establish the program as soon as 
 possible on a national basis, but not 
 later than the date under paragraph 
 (6);
 (ii) minimize the costs involved in 
 establishing the program; and
 (iii) effectively and efficiently 
 carry out the program.
 (3) Training.--The Secretary shall require that 
 training of counselors under the program under this 
 subsection be designed and coordinated to prepare 
 individuals for successful completion of the 
 examination for certification under subsection (e)(2). 
 The Secretary, in consultation with the entity selected 
 under paragraph (2)(B), shall establish the curriculum 
 and standards for training counselors under the 
 program.
 (4) Certification.--The entity selected under 
 paragraph (2)(B) shall administer the examination under 
 subsection (e)(2) and, on behalf of the Secretary, 
 certify individuals successfully completing the 
 examination. The Secretary, in consultation with such 
 entity, shall establish the content and format of the 
 examination.
 (5) Fees.--Subject to the approval of the Secretary, 
 the entity selected under paragraph (2)(B) may 
 establish and impose reasonable fees for participation 
 in the training provided under the program and for 
 examination and certification under subsection (e)(2), 
 in an amount sufficient to cover any costs of such 
 activities not covered with amounts provided under 
 paragraph (7).
 (6) Timing.--The entity selected under paragraph 
 (2)(B) to carry out the training and certification 
 program shall establish the program as soon as possible 
 after such selection, and shall make training and 
 certification available under the program on a national 
 basis not later than the expiration of the 1-year 
 period beginning upon such selection.
 (7) Authorization of appropriations.--There are 
 authorized to be appropriated to carry out this 
 subsection $2,000,000 for fiscal year 1993 and 
 $2,084,000 for 1994.
 (g) Procedures and Activities.--
 (1) Counseling procedures.--
 (A) In general.--The Secretary shall 
 establish, coordinate, and monitor the 
 administration by the Department of Housing and 
 Urban Development of the counseling procedures 
 for homeownership counseling and rental housing 
 counseling provided in connection with any 
 program of the Department, including all 
 requirements, standards, and performance 
 measures that relate to homeownership and 
 rental housing counseling.
 (B) Homeownership counseling.--For purposes 
 of this subsection and as used in the 
 provisions referred to in this subparagraph, 
 the term ``homeownership counseling'' means 
 counseling related to homeownership and 
 residential mortgage loans. Such term includes 
 counseling related to homeownership and 
 residential mortgage loans that is provided 
 pursuant to--
 (i) section 105(a)(20) of the Housing 
 and Community Development Act of 1974 
 (42 U.S.C. 5305(a)(20));
 (ii) in the United States Housing Act 
 of 1937--
 (I) section 9(e) (42 U.S.C. 
 1437g(e));
 (II) section 8(y)(1)(D) (42 
 U.S.C. 1437f(y)(1)(D));
 (III) section 18(a)(4)(D) (42 
 U.S.C. 1437p(a)(4)(D));
 (IV) section 23(c)(4) (42 
 U.S.C. 1437u(c)(4));
 (V) section 32(e)(4) (42 
 U.S.C. 1437z-4(e)(4));
 (VI) section 33(d)(2)(B) (42 
 U.S.C. 1437z-5(d)(2)(B));
 (VII) sections 302(b)(6) and 
 303(b)(7) (42 U.S.C. 1437aaa-
 1(b)(6), 1437aaa-2(b)(7)); and
 (VIII) section 304(c)(4) (42 
 U.S.C. 1437aaa-3(c)(4));
 (iii) section 302(a)(4) of the 
 American Homeownership and Economic 
 Opportunity Act of 2000 (42 U.S.C. 
 1437f note);
 (iv) sections 233(b)(2) and 258(b) of 
 the Cranston-Gonzalez National 
 Affordable Housing Act (42 U.S.C. 
 12773(b)(2), 12808(b));
 (v) this section and section 101(e) 
 of the Housing and Urban Development 
 Act of 1968 (12 U.S.C. 1701x, 
 1701w(e));
 (vi) section 220(d)(2)(G) of the Low-
 Income Housing Preservation and 
 Resident Homeownership Act of 1990 (12 
 U.S.C. 4110(d)(2)(G));
 (vii) sections 422(b)(6), 423(b)(7), 
 424(c)(4), 442(b)(6), and 443(b)(6) of 
 the Cranston-Gonzalez National 
 Affordable Housing Act (42 U.S.C. 
 12872(b)(6), 12873(b)(7), 12874(c)(4), 
 12892(b)(6), and 12893(b)(6));
 (viii) section 491(b)(1)(F)(iii) of 
 the McKinney-Vento Homeless Assistance 
 Act (42 U.S.C. 11408(b)(1)(F)(iii));
 (ix) sections 202(3) and 810(b)(2)(A) 
 of the Native American Housing and 
 Self-Determination Act of 1996 (25 
 U.S.C. 4132(3), 4229(b)(2)(A));
 (x) in the National Housing Act--
 (I) in section 203 (12 U.S.C. 
 1709), the penultimate 
 undesignated paragraph of 
 paragraph (2) of subsection 
 (b), subsection (c)(2)(A), and 
 subsection (r)(4);
 (II) subsections (a) and 
 (c)(3) of section 237 (12 
 U.S.C. 1715z-2); and
 (III) subsections (d)(2)(B) 
 and (m)(1) of section 255 (12 
 U.S.C. 1715z-20);
 (xi) section 502(h)(4)(B) of the 
 Housing Act of 1949 (42 U.S.C. 
 1472(h)(4)(B));
 (xii) section 508 of the Housing and 
 Urban Development Act of 1970 (12 
 U.S.C. 1701z-7); and
 (xiii) section 106 of the Energy 
 Policy Act of 1992 (42 U.S.C. 12712 
 note).
 (C) Rental housing counseling.--For purposes 
 of this subsection, the term ``rental housing 
 counseling'' means counseling related to rental 
 of residential property, which may include 
 counseling regarding future homeownership 
 opportunities and providing referrals for 
 renters and prospective renters to entities 
 providing counseling and shall include 
 counseling related to such topics that is 
 provided pursuant to--
 (i) section 105(a)(20) of the Housing 
 and Community Development Act of 1974 
 (42 U.S.C. 5305(a)(20));
 (ii) in the United States Housing Act 
 of 1937--
 (I) section 9(e) (42 U.S.C. 
 1437g(e));
 (II) section 18(a)(4)(D) (42 
 U.S.C. 1437p(a)(4)(D));
 (III) section 23(c)(4) (42 
 U.S.C. 1437u(c)(4));
 (IV) section 32(e)(4) (42 
 U.S.C. 1437z-4(e)(4));
 (V) section 33(d)(2)(B) (42 
 U.S.C. 1437z-5(d)(2)(B)); and
 (VI) section 302(b)(6) (42 
 U.S.C. 1437aaa-1(b)(6));
 (iii) section 233(b)(2) of the 
 Cranston-Gonzalez National Affordable 
 Housing Act (42 U.S.C. 12773(b)(2));
 (iv) section 106 of the Housing and 
 Urban Development Act of 1968 (12 
 U.S.C. 1701x);
 (v) section 422(b)(6) of the 
 Cranston-Gonzalez National Affordable 
 Housing Act (42 U.S.C. 12872(b)(6));
 (vi) section 491(b)(1)(F)(iii) of the 
 McKinney-Vento Homeless Assistance Act 
 (42 U.S.C. 11408(b)(1)(F)(iii));
 (vii) sections 202(3) and 
 810(b)(2)(A) of the Native American 
 Housing and Self-Determination Act of 
 1996 (25 U.S.C. 4132(3), 
 4229(b)(2)(A)); and
 (viii) the rental assistance program 
 under section 8 of the United States 
 Housing Act of 1937 (42 U.S.C. 1437f).
 (2) Standards for materials.--The Secretary, in 
 consultation with the advisory committee established 
 under subsection (g)(4) of the Department of Housing 
 and Urban Development Act, shall establish standards 
 for materials and forms to be used, as appropriate, by 
 organizations providing homeownership counseling 
 services, including any recipients of assistance 
 pursuant to subsection (a)(4).
 (3) Mortgage software systems.--
 (A) Certification.--The Secretary shall 
 provide for the certification of various 
 computer software programs for consumers to use 
 in evaluating different residential mortgage 
 loan proposals. The Secretary shall require, 
 for such certification, that the mortgage 
 software systems take into account--
 (i) the consumer's financial 
 situation and the cost of maintaining a 
 home, including insurance, taxes, and 
 utilities;
 (ii) the amount of time the consumer 
 expects to remain in the home or 
 expected time to maturity of the loan; 
 and
 (iii) such other factors as the 
 Secretary considers appropriate to 
 assist the consumer in evaluating 
 whether to pay points, to lock in an 
 interest rate, to select an adjustable 
 or fixed rate loan, to select a 
 conventional or government-insured or 
 guaranteed loan and to make other 
 choices during the loan application 
 process.
 If the Secretary determines that available 
 existing software is inadequate to assist 
 consumers during the residential mortgage loan 
 application process, the Secretary shall 
 arrange for the development by private sector 
 software companies of new mortgage software 
 systems that meet the Secretary's 
 specifications.
 (B) Use and initial availability.--Such 
 certified computer software programs shall be 
 used to supplement, not replace, housing 
 counseling. The Secretary shall provide that 
 such programs are initially used only in 
 connection with the assistance of housing 
 counselors certified pursuant to subsection 
 (e).
 (C) Availability.--After a period of initial 
 availability under subparagraph (B) as the 
 Secretary considers appropriate, the Secretary 
 shall take reasonable steps to make mortgage 
 software systems certified pursuant to this 
 paragraph widely available through the Internet 
 and at public locations, including public 
 libraries, senior-citizen centers, public 
 housing sites, offices of public housing 
 agencies that administer rental housing 
 assistance vouchers, and housing counseling 
 centers.
 (D) Budget compliance.--This paragraph shall 
 be effective only to the extent that amounts to 
 carry out this paragraph are made available in 
 advance in appropriations Acts.
 (4) National public service multimedia campaigns to 
 promote housing counseling.--
 (A) In general.--The Director of Housing 
 Counseling shall develop, implement, and 
 conduct national public service multimedia 
 campaigns designed to make persons facing 
 mortgage foreclosure, persons considering a 
 subprime mortgage loan to purchase a home, 
 elderly persons, persons who face language 
 barriers, low-income persons, minorities, and 
 other potentially vulnerable consumers aware 
 that it is advisable, before seeking or 
 maintaining a residential mortgage loan, to 
 obtain homeownership counseling from an 
 unbiased and reliable sources and that such 
 homeownership counseling is available, 
 including through programs sponsored by the 
 Secretary of Housing and Urban Development.
 (B) Contact information.--Each segment of the 
 multimedia campaign under subparagraph (A) 
 shall publicize the toll-free telephone number 
 and website of the Department of Housing and 
 Urban Development through which persons seeking 
 housing counseling can locate a housing 
 counseling agency in their State that is 
 certified by the Secretary of Housing and Urban 
 Development and can provide advice on buying a 
 home, renting, defaults, foreclosures, credit 
 issues, and reverse mortgages.
 (C) Authorization of appropriations.--There 
 are authorized to be appropriated to the 
 Secretary, not to exceed $3,000,000 for fiscal 
 years 2009, 2010, and 2011, for the 
 development, implementation, and conduct of 
 national public service multimedia campaigns 
 under this paragraph.
 (D) Foreclosure rescue education programs.--
 (i) In general.--Ten percent of any 
 funds appropriated pursuant to the 
 authorization under subparagraph (C) 
 shall be used by the Director of 
 Housing Counseling to conduct an 
 education program in areas that have a 
 high density of foreclosure. Such 
 program shall involve direct mailings 
 to persons living in such areas 
 describing--
 (I) tips on avoiding 
 foreclosure rescue scams;
 (II) tips on avoiding 
 predatory lending mortgage 
 agreements;
 (III) tips on avoiding for-
 profit foreclosure counseling 
 services; and
 (IV) local counseling 
 resources that are approved by 
 the Department of Housing and 
 Urban Development.
 (ii) Program emphasis.--In conducting 
 the education program described under 
 clause (i), the Director of Housing 
 Counseling shall also place an emphasis 
 on serving communities that have a high 
 percentage of retirement communities or 
 a high percentage of low-income 
 minority communities.
 (iii) Terms defined.--For purposes of 
 this subparagraph:
 (I) High density of 
 foreclosures.--An area has a 
 ``high density of 
 foreclosures'' if such area is 
 one of the metropolitan 
 statistical areas (as that term 
 is defined by the Director of 
 the Office of Management and 
 Budget) with the highest home 
 foreclosure rates.
 (II) High percentage of 
 retirement communities.--An 
 area has a ``high percentage of 
 retirement communities'' if 
 such area is one of the 
 metropolitan statistical areas 
 (as that term is defined by the 
 Director of the Office of 
 Management and Budget) with the 
 highest percentage of residents 
 aged 65 or older.
 (III) High percentage of low-
 income minority communities.--
 An area has a ``high percentage 
 of low-income minority 
 communities'' if such area 
 contains a higher-than-normal 
 percentage of residents who are 
 both minorities and low-income, 
 as defined by the Director of 
 Housing Counseling.
 (5) Education programs.--The Secretary shall provide 
 advice and technical assistance to States, units of 
 general local government, and nonprofit organizations 
 regarding the establishment and operation of, including 
 assistance with the development of content and 
 materials for, educational programs to inform and 
 educate consumers, particularly those most vulnerable 
 with respect to residential mortgage loans (such as 
 elderly persons, persons facing language barriers, low-
 income persons, minorities, and other potentially 
 vulnerable consumers), regarding home mortgages, 
 mortgage refinancing, home equity loans, home repair 
 loans, and where appropriate by region, any 
 requirements and costs associated with obtaining flood 
 or other disaster-specific insurance coverage.
 (6) Counseling with respect to heirs' property.--
 (A) In general.--Any nonprofit organization 
 that receives amounts under this section shall, 
 when providing homeownership counseling 
 services to consumers--
 (i) explain to such consumers what 
 heirs' property is, the risks 
 associated with heirs' property, and 
 how to avoid heirs' property issues; 
 and
 (ii) inform such consumers of all 
 available estate planning and title 
 clearing options, assistance, and 
 services, including those offered under 
 sections 2 and 3 of the Heirs Estate 
 Inheritance Resolution and Succession 
 Act of 2025.
 (B) Referral.--The Secretary shall ensure 
 that each nonprofit organization that receives 
 amounts under this section knows how to refer 
 consumers, where appropriate, to mission-driven 
 nonprofit organizations and legal services 
 clinics operated by institutes of higher 
 education that are capable of assisting a 
 consumer to clear title and with general estate 
 planning.
 (C) Heirs' property.--The term ``heirs' 
 property'' means residential property for which 
 title passed by operation of law through 
 intestacy and is held by two or more heirs as 
 tenants in common.
 (h) Definitions.--For purposes of this section:
 (1) Nonprofit organization.--The term ``nonprofit 
 organization'' has the meaning given such term in 
 section 104(5) of the Cranston-Gonzalez National 
 Affordable Housing Act (42 U.S.C. 12704(5)), except 
 that subparagraph (D) of such section shall not apply 
 for purposes of this section.
 (2) State.--The term ``State'' means each of the 
 several States, the Commonwealth of Puerto Rico, the 
 District of Columbia, the Commonwealth of the Northern 
 Mariana Islands, Guam, the Virgin Islands, American 
 Samoa, the Trust Territories of the Pacific, or any 
 other possession of the United States.
 (3) Unit of general local government.--The term 
 ``unit of general local government'' means any city, 
 county, parish, town, township, borough, village, or 
 other general purpose political subdivision of a State.
 (4) HUD-approved counseling agency.--The term ``HUD-
 approved counseling agency'' means a private or public 
 nonprofit organization that is--
 (A) exempt from taxation under section 501(c) 
 of the Internal Revenue Code of 1986; and
 (B) certified by the Secretary to provide 
 housing counseling services.
 (5) State housing finance agency.--The term ``State 
 housing finance agency'' means any public body, agency, 
 or instrumentality specifically created under State 
 statute that is authorised to finance activities 
 designed to provide housing and related facilities 
 throughout an entire State through land acquisition, 
 construction, or rehabilitation.
 (i) Accountability for Recipients of Covered Assistance.--
 (1) Tracking of funds.--The Secretary shall--
 (A) develop and maintain a system to ensure 
 that any organization or entity that receives 
 any covered assistance uses all amounts of 
 covered assistance in accordance with this 
 section, the regulations issued under this 
 section, and any requirements or conditions 
 under which such amounts were provided; and
 (B) require any organization or entity, as a 
 condition of receipt of any covered assistance, 
 to agree to comply with such requirements 
 regarding covered assistance as the Secretary 
 shall establish, which shall include--
 (i) appropriate periodic financial 
 and grant activity reporting, record 
 retention, and audit requirements for 
 the duration of the covered assistance 
 to the organization or entity to ensure 
 compliance with the limitations and 
 requirements of this section, the 
 regulations under this section, and any 
 requirements or conditions under which 
 such amounts were provided; and
 (ii) any other requirements that the 
 Secretary determines are necessary to 
 ensure appropriate administration and 
 compliance.
 (2) Misuse of funds.--If any organization or entity 
 that receives any covered assistance is determined by 
 the Secretary to have used any covered assistance in a 
 manner that is materially in violation of this section, 
 the regulations issued under this section, or any 
 requirements or conditions under which such assistance 
 was provided--
 (A) the Secretary shall require that, within 
 12 months after the determination of such 
 misuse, the organization or entity shall 
 reimburse the Secretary for such misused 
 amounts and return to the Secretary any such 
 amounts that remain unused or uncommitted for 
 use; and
 (B) such organization or entity shall be 
 ineligible, at any time after such 
 determination, to apply for or receive any 
 further covered assistance.
 The remedies under this paragraph are in addition to 
 any other remedies that may be available under law.
 (3) Covered assistance.--For purposes of this 
 subsection, the term ``covered assistance'' means any 
 grant or other financial assistance provided under this 
 section.

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