Div. Title

PUBLIC LAW 111–5—FEB. 17, 2009

123 STAT. 217

previous proviso shall govern such transferred funds: Provided further, That any funds made available under this heading used by
the Secretary for training or other administrative expenses shall
be transferred to ‘‘Administration, Operations, and Management’’,
for non-personnel expenses of the Department of Housing and
Urban Development: Provided further, That any funds made available under this heading used by the Secretary for technology shall
be transferred to ‘‘Working Capital Fund’’.
COMMUNITY PLANNING

AND

DEVELOPMENT

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COMMUNITY DEVELOPMENT FUND

For an additional amount for ‘‘Community Development Fund’’
$1,000,000,000, to remain available until September 30, 2010 to
carry out the community development block grant program under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.): Provided, That the amount appropriated
in this paragraph shall be distributed pursuant to 42 U.S.C. 5306
to grantees that received funding in fiscal year 2008: Provided
further, That in administering the funds appropriated in this paragraph, the Secretary of Housing and Urban Development shall
establish requirements to expedite the use of the funds: Provided
further, That in selecting projects to be funded, recipients shall
give priority to projects that can award contracts based on bids
within 120 days from the date the funds are made available to
the recipients: Provided further, That in administering funds appropriated or otherwise made available under this heading, the Secretary may waive or specify alternative requirements for any provision of any statute or regulation in connection with the obligation
by the Secretary or the use by the recipient of these funds (except
for requirements related to fair housing, nondiscrimination, labor
standards, and the environment), upon a finding that such waiver
is necessary to expedite or facilitate the timely use of such funds
and would not be inconsistent with the overall purpose of the
statute.
For the provision of emergency assistance for the redevelopment
of abandoned and foreclosed homes, as authorized under division
B, title III of the Housing and Economic Recovery Act of 2008
(‘‘the Act’’) (Public Law 110–289) (42 U.S.C. 5301 note),
$2,000,000,000, to remain available until September 30, 2010: Provided, That grantees shall expend at least 50 percent of allocated
funds within 2 years of the date funds become available to the
grantee for obligation, and 100 percent of such funds within 3
years of such date: Provided further, That unless otherwise noted
herein, the provisions of the Act govern the use of the additional
funds made available under this heading: Provided further, That
notwithstanding the provisions of sections 2301(b) and (c)(1) and
section 2302 of the Act, funding under this paragraph shall be
allocated by competitions for which eligible entities shall be States,
units of general local government, and nonprofit entities or consortia
of nonprofit entities, which may submit proposals in partnership
with for profit entities: Provided further, That in selecting grantees,
the Secretary of Housing and Urban Development shall ensure
that the grantees are in areas with the greatest number and
percentage of foreclosures and can expend funding within the period
allowed under this heading: Provided further, That additional award
criteria for such competitions shall include demonstrated grantee

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Requirements.

Waiver authority.

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123 STAT. 218

Publication.
Criteria.
Deadlines.
Deadline.

42 USC 5301
note.

42 USC 5301
note.

Waiver authority.

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Foreclosure.
Notice.
42 USC 5301
note.

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PUBLIC LAW 111–5—FEB. 17, 2009

capacity to execute projects, leveraging potential, concentration of
investment to achieve neighborhood stabilization, and any additional factors determined by the Secretary of Housing and Urban
Development: Provided further, That the Secretary may establish
a minimum grant size: Provided further, That the Secretary shall
publish criteria on which to base competition for any grants
awarded under this heading not later than 75 days after the enactment of this Act and applications shall be due to HUD not later
than 150 days after the enactment of this Act: Provided further,
That the Secretary shall obligate all funding within 1 year of
enactment of this Act: Provided further, That section 2301(d)(4)
of the Act is repealed: Provided further, That section 2301(c)(3)(C)
of the Act is amended to read ‘‘establish and operate land banks
for homes and residential properties that have been foreclosed
upon’’: Provided further, That funding used for section 2301(c)(3)(E)
of the Act shall be available only for the redevelopment of demolished or vacant properties as housing: Provided further, That no
amounts made available from a grant under this heading may
be used to demolish any public housing (as such term is defined
in section 3 of the United States Housing Act of 1937 (42 U.S.C.
1437a)): Provided further, That a grantee may not use more than
10 percent of its grant under this heading for demolition activities
under section 2301(c)(3)(C) and (D) unless the Secretary determines
that such use represents an appropriate response to local market
conditions: Provided further, That the recipient of any grant or
loan from amounts made available under this heading or, after
the date of enactment under division B, title III of the Housing
and Economic Recovery Act of 2008, may not refuse to lease a
dwelling unit in housing with such loan or grant to a participant
under section 8 of the United States Housing Act of 1937 (42
U.S.C 1437f) because of the status of the prospective tenant as
such a participant: Provided further, That in addition to the eligible
uses in section 2301, the Secretary may also use up to 10 percent
of the funds provided under this heading for grantees for the
provision of capacity building of and support for local communities
receiving funding under section 2301 of the Act or under this
heading: Provided further, That in administering funds appropriated or otherwise made available under this section, the Secretary may waive or specify alternative requirements for any provision of any statute or regulation in connection with the obligation
by the Secretary or the use of funds except for requirements related
to fair housing, nondiscrimination, labor standards and the environment, upon a finding that such a waiver is necessary to expedite
or facilitate the use of such funds: Provided further, That in the
case of any acquisition of a foreclosed upon dwelling or residential
real property acquired after the date of enactment with any amounts
made available under this heading or under division B, title III
of the Housing and Economic Recovery Act of 2008 (Public Law
110–289), the initial 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

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PUBLIC LAW 111–5—FEB. 17, 2009

123 STAT. 219

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 this paragraph; 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 this paragraph,
except that nothing in this paragraph 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: Provided further, That, for purposes of this paragraph, a lease or tenancy shall be considered
bona fide only if: (1) the mortgagor under the contract is not
the tenant; (2) the lease or tenancy was the result of an armslength transaction; and (3) the lease or tenancy requires the receipt
of rent that is not substantially less than fair market rent for
the property: Provided further, That the recipient of any grant
or loan from amounts made available under this heading or, after
the date of enactment, under division B, title III of the Housing
and Economic Recovery Act of 2008 (Public Law 110–289) may
not refuse to lease a dwelling unit in housing assisted with such
loan or grant to a holder of a voucher or certificate of eligibility
under section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f) because of the status of the prospective tenant as
such a holder: Provided further, That in the case of any qualified
foreclosed housing for which funds made available under this
heading or, after the date of enactment, under division B, title
III of the Housing and Economic Recovery Act of 2008 (Public
Law 110–289) are used and in which a recipient of assistance
under section 8(o) of the U.S. Housing Act of 1937 resides at
the time of foreclosure, the initial successor in interest shall be
subject to the lease and to the housing assistance payments contract
for the occupied unit: Provided further, That vacating the property
prior to sale shall not constitute good cause for termination of
the tenancy unless the property is unmarketable while occupied
or unless the owner or subsequent purchaser desires the unit for
personal or family use: Provided further, That if a public housing
agency is unable to make payments under the contract to the
immediate successor in interest after foreclosures, due to (1) an
action or inaction by the successor in interest, including the rejection of payments or the failure of the successor to maintain the
unit in compliance with section 8(o)(8) of the United States Housing
Act of 1937 (42 U.S.C.1437f) or (2) an inability to identify the
successor, the agency may use funds that would have been used
to pay the rental amount on behalf of the family—(i) to pay for
utilities that are the responsibility of the owner under the lease
or applicable law, after taking reasonable steps to notify the owner
that it intends to make payments to a utility provider in lieu
of payments to the owner, except prior notification shall not be
required in any case in which the unit will be or has been rendered
uninhabitable due to the termination or threat of termination of
service, in which case the public housing agency shall notify the
owner within a reasonable time after making such payment; or
(ii) for the family’s reasonable moving costs, including security
deposit costs: Provided further, That this paragraph shall not preempt any Federal, State or local law that provides more protections
for tenants: Provided further, That of the funds made available
under this heading, up to 1 percent shall be available for staffing,
training, technical assistance, technology, monitoring, travel,

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123 STAT. 220

PUBLIC LAW 111–5—FEB. 17, 2009

enforcement, research and evaluation activities: Provided further,
That funds set aside in the previous proviso shall remain available
until September 30, 2012: Provided further, That any funds made
available under this heading used by the Secretary for personnel
expenses related to administering funding under this heading shall
be transferred to ‘‘Personnel Compensation and Benefits, Community Planning and Development’’ and shall retain the terms and
conditions of this account, including reprogramming provisions,
except that the period of availability set forth in the previous
proviso shall govern such transferred funds: Provided further, That
any funds made available under this heading used by the Secretary
for training or other administrative expenses shall be transferred
to ‘‘Administration, Operations, and Management’’ for non-personnel expenses of the Department of Housing and Urban Development: Provided further, That any funds made available under this
heading used by the Secretary for technology shall be transferred
to ‘‘Working Capital Fund’’.
HOME INVESTMENT PARTNERSHIPS PROGRAM

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For an additional amount for capital investments in low-income
housing tax credit projects, $2,250,000,000, to remain available
until September 30, 2011: Provided, That such funds shall be made
available to State housing credit agencies, as defined in section
42(h) of the Internal Revenue Code of 1986, and shall be apportioned
among the States based on the percentage of HOME funds apportioned to each State and the participating jurisdictions therein
for Fiscal Year 2008: Provided further, That the housing credit
agencies in each State shall distribute these funds competitively
under this heading and pursuant to their qualified allocation plan
(as defined in section 42(m) of the Internal Revenue Code of 1986)
to owners of projects who have received or receive simultaneously
an award of low-income housing tax credits under section 42(h)
of the Internal Revenue Code of 1986: Provided further, That
housing credit agencies in each State shall commit not less than
75 percent of such funds within one year of the date of enactment
of this Act, and shall demonstrate that the project owners shall
have expended 75 percent of the funds made available under this
heading within two years of the date of enactment of this Act,
and shall have expended 100 percent of the funds within 3 years
of the date of enactment of this Act: Provided further, That failure
by an owner to expend funds within the parameters required within
the previous proviso shall result in a redistribution of these funds
by a housing credit agency to a more deserving project in such
State, except any funds not expended after 3 years from enactment
shall be redistributed by the Secretary to other States that have
fully utilized the funds made available to them: Provided further,
That projects awarded low income housing tax credits under section
42(h) of the IRC of 1986 in fiscal years 2007, 2008, or 2009 shall
be eligible for funding under this heading: Provided further, That
housing credit agencies shall give priority to projects that are
expected to be completed within 3 years of enactment: Provided
further, That any assistance provided to an eligible low income
housing tax credit project under this heading shall be made in
the same manner and be subject to the same limitations (including
rent, income, and use restrictions, in lieu of corresponding limitations under the HOME program) as required by the state housing

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