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

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of the Act is repealed: Provided further, That section 2301(c)(3)(C)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

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,

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’’.