§ 1701x. Assistance with respect to housing for low- and moderate-income families

Pub. L. 110–289, div. A, title I, § 1132, July 30, 2008, 122 Stat. 2727, as amended by Pub. L. 111–203, title X, § 1072(a), July 21, 2010, 124 Stat. 2059, provided that: “(a) Goals.—Financial education and counseling under this section shall have the goal of—“(1) increasing the financial knowledge and decision making capabilities of prospective homebuyers or economically vulnerable individuals and families; “(2) assisting prospective homebuyers or economically vulnerable individuals and families to develop monthly budgets, build personal savings, finance or plan for major purchases, reduce their debt, improve their financial stability, and set and reach their financial goals; “(3) helping prospective homebuyers or economically vulnerable individuals and families to improve their credit scores by understanding the relationship between their credit histories and their credit scores; and “(4) educating prospective homebuyers or economically vulnerable individuals and families about the options available to build savings for short- and long-term goals. “(b) Grants.—“(1) In general.—The Secretary of the Treasury (in this section referred to as the ‘Secretary’) shall make grants to eligible organizations to enable such organizations to provide a range of financial education and counseling services to prospective homebuyers or economically vulnerable individuals and families. “(2) Selection.—The Secretary shall select eligible organizations to receive assistance under this section based on their experience and ability to provide financial education and counseling services that result in documented positive behavioral changes. “(c) Eligible Organizations.—“(1) In general.—For purposes of this section, the term ‘eligible organization’ means an organization that is—“(A) certified in accordance with section 106(e)(1) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)[1]); “(B) certified by the Office of Financial Education of the Department of the Treasury for purposes of this section, in accordance with paragraph (2); or “(C) a nonprofit corporation that—“(i) is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 [26 U.S.C. 501(c)(3)]; and “(ii) specializes or has expertise in working with economically vulnerable individuals and families, but whose primary purpose is not provision of credit counseling services. “(2) OFE certification.—To be certified by the Office of Financial Education for purposes of this section, an eligible organization shall be—“(A) a housing counseling agency certified by the Secretary of Housing and Urban Development under section 106(e) of the Housing and Urban Development Act of 1968 [12 U.S.C. 1701x(e)]; “(B) a State, local, or tribal government agency; “(C) a community development financial institution (as defined in section 103(5) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702(5)) or a credit union; or “(D) any collaborative effort of entities described in any of subparagraphs (A) through (C). “(d) Authority for Pilot Projects.—“(1) In general.—The Secretary of the Treasury shall authorize pilot project grants to eligible organizations under subsection (c) in order to—“(A) carry out the services under this section; and “(B) provide such other services that will improve the financial stability and economic condition of low- and moderate-income and low-wealth individuals. “(2) Goal.—The goal of the pilot project grants under this subsection is to—“(A) identify successful methods resulting in positive behavioral change for financial empowerment; and “(B) establish program models for organizations to carry out effective counseling services. “(e) Authorization of Appropriations.—There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section and for the provision of additional financial educational services. “(f) Study and Report on Effectiveness and Impact.—“(1) In general.—The Comptroller General of the United States shall conduct a study on the effectiveness and impact of the grant program established under this section. Not later than 3 years after the date of enactment of this Act [July 30, 2008], the Comptroller General shall submit a report on the results of such study to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. “(2) Content of study.—The study required under paragraph (1) shall include an evaluation of the following:“(A) The effectiveness of the grant program established under this section in improving the financial situation of homeowners and prospective homebuyers served by the grant program. “(B) The extent to which financial education and counseling services have resulted in positive behavioral changes. “(C) The effectiveness and quality of the eligible organizations providing financial education and counseling services under the grant program. “(g) Regulations.—The Secretary is authorized to promulgate such regulations as may be necessary to implement and administer the grant program authorized by this section.”

[Pub. L. 111–203, title X, § 1072(b), July 21, 2010, 124 Stat. 2060, provided that: “Amendments made by subsection (a) [amending section 1132 of Pub. L. 110–289, set out above] shall not apply to programs authorized by section 1132 of the Housing and Economic Recovery Act of 2008 [Pub. L. 110–289] (12 U.S.C. 1701x note) that are funded with appropriations prior to fiscal year 2011.” ]

Pre-Purchase Homeownership Counseling Demonstration

Pub. L. 110–289, div. B, title I, § 2128, July 30, 2008, 122 Stat. 2841, provided that: “(a) Establishment of Program.—For the period beginning on the date of enactment of this title [July 30, 2008] and ending on the date that is 3 years after such date of enactment, the Secretary of Housing and Urban Development shall establish and conduct a demonstration program to test the effectiveness of alternative forms of pre-purchase homeownership counseling for eligible homebuyers. “(b) Forms of Counseling.—The Secretary of Housing and Urban Development shall provide to eligible homebuyers pre-purchase homeownership counseling under this section in the form of—“(1) telephone counseling; “(2) individualized in-person counseling; “(3) web-based counseling; “(4) counseling classes; or “(5) any other form or type of counseling that the Secretary may, in his discretion, determine appropriate. “(c) Size of Program.—The Secretary shall make available the pre-purchase homeownership counseling described in subsection (b) to not more than 3,000 eligible homebuyers in any given year. “(d) Incentive To Participate.—The Secretary of Housing and Urban Development may provide incentives to eligible homebuyers to participate in the demonstration program established under subsection (a). Such incentives may include the reduction of any insurance premium charges owed by the eligible homebuyer to the Secretary. “(e) Eligible Homebuyer Defined.—For purposes of this section an ‘eligible homebuyer’ means a first-time homebuyer who has been approved for a home loan with a loan-to-value ratio between 97 percent and 98.5 percent. “(f) Report to Congress.—The Secretary of Housing and Urban Development shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representative—[sic]“(1) on an annual basis, on the progress and results of the demonstration program established under subsection (a); and “(2) for the period beginning on the date of enactment of this title [July 30, 2008] and ending on the date that is 5 years after such date of enactment, on the payment history and delinquency rates of eligible homebuyers who participated in the demonstration program.”

Disclosure Form

Pub. L. 109–163, div. A, title VI, § 688(c), Jan. 6, 2006, 119 Stat. 3337, provided that: “Not later than 150 days after the date of the enactment of this Act [Jan. 6, 2006], the Secretary of Housing and Urban Development shall issue a final disclosure form to fulfill the requirement of subclause (IV) of section 106(c)(5)(A)(ii) of the Housing and Urban Development Act of 1968 [12 U.S.C. 1701x(c)(5)(A)(ii)(IV)], as added by subsection (a).”