Part A—Coronavirus Economic Stabilization
§9041. Definitions
In this part:
(1) Air carrier
The term "air carrier" has the meaning such term has under
(2) Coronavirus
The term "coronavirus" means SARS–CoV–2 or another coronavirus with pandemic potential.
(3) Covered loss
The term "covered loss" includes losses incurred directly or indirectly as a result of coronavirus, as determined by the Secretary.
(4) Eligible business
The term "eligible business" means—
(A) an air carrier; or
(B) a United States business that has not otherwise received adequate economic relief in the form of loans or loan guarantees provided under this Act.
(5) Employee
Except where the context otherwise requires, the term "employee"—
(A) has the meaning given the term in
(B) includes any individual employed by an employer subject to the Railway Labor Act (
(6) Equity security; exchange
The terms "equity security" and "exchange" have the meanings given the terms in
(7) Municipality
The term "municipality" includes—
(A) a political subdivision of a State, and
(B) an instrumentality of a municipality, a State, or a political subdivision of a State.
(8) National securities exchange
The term "national securities exchange" means an exchange registered as a national securities exchange under
(9) Secretary
The term "Secretary" means the Secretary of the Treasury, or the designee of the Secretary of the Treasury.
(10) State
The term "State" means—
(A) any of the several States;
(B) the District of Columbia;
(C) any of the territories and possessions of the United States;
(D) any bi-State or multi-State entity; and
(E) any Indian Tribe.
(11) Aerospace-related businesses critical to maintaining national security
The term "businesses critical to maintaining national security" means those businesses that manufacture or produce aerospace-related products, civil or defense, including those that design, integrate, assemble, supply, maintain, and repair such products, and other businesses involved in aerospace-related manufacturing or production as further defined by the Secretary, in consultation with the Secretary of Defense and the Secretary of Transportation. For purposes of the preceding sentence, aerospace-related products include, but are not limited to, components, parts, or systems of aircraft, aircraft engines, or appliances for inclusion in an aircraft, aircraft engine, or appliance.
(
Editorial Notes
References in Text
This part, referred to in text, was in the original "this subtitle", meaning subtitle A (§§4001–4029) of title IV of div. A of
This Act, referred to in par. (4)(B), probably means subtitle A (§§4001–4029) of title IV of div. A of
The Railway Labor Act, referred to in par. (5)(B), is act May 20, 1926, ch. 347,
Amendments
2020—Par. (11).
§9042. Emergency relief and taxpayer protections
(a) In general
Notwithstanding any other provision of law, to provide liquidity to eligible businesses, States, and municipalities related to losses incurred as a result of coronavirus, the Secretary is authorized to make loans, loan guarantees, and other investments in support of eligible businesses, States, and municipalities that do not, in the aggregate, exceed $0 and provide the subsidy amounts necessary for such loans, loan guarantees, and other investments in accordance with the provisions of the Federal Credit Reform Act of 1990 (
(b) Loans, loan guarantees, and other investments
Loans, loan guarantees, and other investments made pursuant to subsection (a) shall be made available as follows:
(1) Not more than $0 shall be available to make loans and loan guarantees for passenger air carriers, eligible businesses that are certified under part 145 of title 14, Code of Federal Regulations, and approved to perform inspection, repair, replace, or overhaul services, and ticket agents (as defined in
(2) Not more than 0 1 shall be available to make loans and loan guarantees for cargo air carriers.
(3) Not more than 0 1 shall be available to make loans and loan guarantees for businesses critical to maintaining national security.
(4) Not more than the sum of $0 and any amounts available under paragraphs (1), (2), and (3) that are not used as provided under those paragraphs shall be available to make loans and loan guarantees to, and other investments in, programs or facilities established by the Board of Governors of the Federal Reserve System for the purpose of providing liquidity to the financial system that supports lending to eligible businesses, States, or municipalities by—
(A) purchasing obligations or other interests directly from issuers of such obligations or other interests;
(B) purchasing obligations or other interests in secondary markets or otherwise; or
(C) making loans, including loans or other advances secured by collateral.
(c) Terms and conditions
(1) In general
(A) Forms; terms and conditions
A loan, loan guarantee, or other investment by the Secretary shall be made under this section in such form and on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate. Any loans made by the Secretary under this section shall be at a rate determined by the Secretary based on the risk and the current average yield on outstanding marketable obligations of the United States of comparable maturity.
(B) Procedures
As soon as practicable, but in no case later than 10 days after March 27, 2020, the Secretary shall publish procedures for application and minimum requirements, which may be supplemented by the Secretary in the Secretary's discretion, for making loans, loan guarantees, or other investments under paragraphs (1), (2) and (3) of subsection (b) .
(2) Loans and loan guarantees
The Secretary may enter into agreements to make loans or loan guarantees to 1 or more eligible businesses under paragraphs (1), (2) and (3) of subsection (b) if the Secretary determines that, in the Secretary's discretion—
(A) the applicant is an eligible business for which credit is not reasonably available at the time of the transaction;
(B) the intended obligation by the applicant is prudently incurred;
(C) the loan or loan guarantee is sufficiently secured or is made at a rate that—
(i) reflects the risk of the loan or loan guarantee; and
(ii) is to the extent practicable, not less than an interest rate based on market conditions for comparable obligations prevalent prior to the outbreak of the coronavirus disease 2019 (COVID–19);
(D) the duration of the loan or loan guarantee is as short as practicable and in any case not longer than 5 years;
(E) the agreement provides that, until the date 12 months after the date the loan or loan guarantee is no longer outstanding, neither the eligible business nor any affiliate of the eligible business may purchase an equity security that is listed on a national securities exchange of the eligible business or any parent company of the eligible business, except to the extent required under a contractual obligation in effect as of March 27, 2020;
(F) the agreement provides that, until the date 12 months after the date the loan or loan guarantee is no longer outstanding, the eligible business shall not pay dividends or make other capital distributions with respect to the common stock of the eligible business;
(G) the agreement provides that, until September 30, 2020, the eligible business shall maintain its employment levels as of March 24, 2020, to the extent practicable, and in any case shall not reduce its employment levels by more than 10 percent from the levels on such date;
(H) the agreement includes a certification by the eligible business that it is created or organized in the United States or under the laws of the United States and has significant operations in and a majority of its employees based in the United States; and
(I) for purposes of a loan or loan guarantee under paragraphs (1), (2), and (3) of subsection (b), the eligible business must have incurred or is expected to incur covered losses such that the continued operations of the business are jeopardized, as determined by the Secretary.
(3) Federal reserve programs or facilities
(A) Terms and conditions
(i) Definition
In this paragraph, the term "direct loan" means a loan under a bilateral loan agreement that is —
(I) entered into directly with an eligible business as borrower; and
(II) not part of a syndicated loan, a loan originated by a financial institution in the ordinary course of business, or a securities or capital markets transaction.
(ii) Restrictions
The Secretary may make a loan, loan guarantee, or other investment under subsection (b)(4) as part of a program or facility that provides direct loans only if the applicable eligible businesses agree—
(I) until the date 12 months after the date on which the direct loan is no longer outstanding, not to repurchase an equity security that is listed on a national securities exchange of the eligible business or any parent company of the eligible business while the direct loan is outstanding, except to the extent required under a contractual obligation that is in effect as of March 27, 2020;
(II) until the date 12 months after the date on which the direct loan is no longer outstanding, not to pay dividends or make other capital distributions with respect to the common stock of the eligible business; and
(III) to comply with the limitations on compensation set forth in
(iii) Waiver
The Secretary may waive the requirement under clause (ii) with respect to any program or facility upon a determination that such waiver is necessary to protect the interests of the Federal Government. If the Secretary exercises a waiver under this clause, the Secretary shall make himself available to testify before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives regarding the reasons for the waiver.
(B) Federal Reserve Act taxpayer protections and other requirements apply
For the avoidance of doubt, any applicable requirements under section 13(3) of the Federal Reserve Act (
(C) United States businesses
A program or facility in which the Secretary makes a loan, loan guarantee, or other investment under subsection (b)(4) shall only purchase obligations or other interests (other than securities that are based on an index or that are based on a diversified pool of securities) from, or make loans or other advances to, businesses that are created or organized in the United States or under the laws of the United States and that have significant operations in and a majority of its employees based in the United States.
(D) Assistance for mid-sized businesses
(i) In general
Without limiting the terms and conditions of the programs and facilities that the Secretary may otherwise provide financial assistance to under subsection (b)(4), the Secretary shall endeavor to seek the implementation of a program or facility described in subsection (b)(4) that provides financing to banks and other lenders that make direct loans to eligible businesses including, to the extent practicable, nonprofit organizations, with between 500 and 10,000 employees, with such direct loans being subject to an annualized interest rate that is not higher than 2 percent per annum. For the first 6 months after any such direct loan is made, or for such longer period as the Secretary may determine in his discretion, no principal or interest shall be due and payable. Any eligible borrower applying for a direct loan under this program shall make a good-faith certification that—
(I) the uncertainty of economic conditions as of the date of the application makes necessary the loan request to support the ongoing operations of the recipient;
(II) the funds it receives will be used to retain at least 90 percent of the recipient's workforce, at full compensation and benefits, until September 30, 2020;
(III) the recipient intends to restore not less than 90 percent of the workforce of the recipient that existed as of February 1, 2020, and to restore all compensation and benefits to the workers of the recipient no later than 4 months after the termination date of the public health emergency declared by the Secretary of Health and Human Services on January 31, 2020, under
(IV) the recipient is an entity or business that is domiciled in the United States with significant operations and employees located in the United States;
(V) the recipient is not a debtor in a bankruptcy proceeding;
(VI) the recipient is created or organized in the United States or under the laws of the United States and has significant operations in and a majority of its employees based in the United States;
(VII) the recipient will not pay dividends with respect to the common stock of the eligible business, or repurchase an equity security that is listed on a national securities exchange of the recipient or any parent company of the recipient while the direct loan is outstanding, except to the extent required under a contractual obligation that is in effect as of March 27, 2020;
(VIII) the recipient will not outsource or offshore jobs for the term of the loan and 2 years after completing repayment of the loan;
(IX) the recipient will not abrogate existing collective bargaining agreements for the term of the loan and 2 years after completing repayment of the loan; and
(X) that the recipient will remain neutral in any union organizing effort for the term of the loan.
(ii) Main street lending program
Nothing in this subparagraph shall limit the discretion of the Board of Governors of the Federal Reserve System to establish a Main Street Lending Program or other similar program or facility that supports lending to small and mid-sized businesses on such terms and conditions as the Board may set consistent with section 13(3) of the Federal Reserve Act (
(E) Government participants
The Secretary shall endeavor to seek the implementation of a program or facility in accordance with subsection (b)(4) that provides liquidity to the financial system that supports lending to States and municipalities.
(d) Financial protection of government
(1) Warrant or senior debt instrument
The Secretary may not issue a loan to, or a loan guarantee for, an eligible business under paragraph (1), (2), or (3) of subsection (b) unless—
(A)(i) the eligible business has issued securities that are traded on a national securities exchange; and
(ii) the Secretary receives a warrant or equity interest in the eligible business; or
(B) in the case of any eligible business other than an eligible business described in subparagraph (A), the Secretary receives, in the discretion of the Secretary—
(i) a warrant or equity interest in the eligible business; or
(ii) a senior debt instrument issued by the eligible business.
(2) Terms and conditions
The terms and conditions of any warrant, equity interest, or senior debt instrument received under paragraph (1) shall be set by the Secretary and shall meet the following requirements:
(A) Purposes
Such terms and conditions shall be designed to provide for a reasonable participation by the Secretary, for the benefit of taxpayers, in equity appreciation in the case of a warrant or other equity interest, or a reasonable interest rate premium, in the case of a debt instrument.
(B) Authority to sell, exercise, or surrender
For the primary benefit of taxpayers, the Secretary may sell, exercise, or surrender a warrant or any senior debt instrument received under this subsection. The Secretary shall not exercise voting power with respect to any shares of common stock acquired under this section.
(C) Sufficiency
If the Secretary determines that the eligible business cannot feasibly issue warrants or other equity interests as required by this subsection, the Secretary may accept a senior debt instrument in an amount and on such terms as the Secretary deems appropriate.
(3) Prohibition on loan forgiveness
The principal amount of any obligation issued by an eligible business, State, or municipality under a program described in subsection (b) shall not be reduced through loan forgiveness.
(e) Deposit of proceeds
Notwithstanding any other provision of law, amounts collected under subsection (b) shall be deposited in the following order of priority:
(1) Into the financing accounts established under section 505 of the Federal Credit Reform Act of 1990 (
(A) the amount transferred from the appropriation made under
(B) the amount necessary to repay any amount lent from the Treasury to such financing accounts.
(2) After the deposits specified in paragraph (1) of this subsection have been made, into the Federal Old-Age and Survivors Insurance Trust Fund established under
(f) Administrative provisions
Notwithstanding any other provision of law, the Secretary may use not greater than 61,000,000 1 of the funds made available under
(1) using direct hiring authority to hire employees to administer this part;
(2) entering into contracts, including contracts for services authorized by this part;
(3) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase, hold, and sell assets and issue obligations; and
(4) issuing such regulations and other guidance as may be necessary or appropriate to carry out the authorities or purposes of this part.
(g) Financial agents
The Secretary is authorized to designate financial institutions, including but not limited to, depositories, brokers, dealers, and other institutions, as financial agents of the United States. Such institutions shall—
(1) perform all reasonable duties the Secretary determines necessary to respond to the coronavirus; and
(2) be paid for such duties using appropriations available to the Secretary to reimburse financial institutions in their capacity as financial agents of the United States.
(h) Loans made by or guaranteed by the Department of the Treasury treated as indebtedness for tax purposes
(1) In general
Any loan made by or guaranteed by the Department of the Treasury under this section shall be treated as indebtedness for purposes of the Internal Revenue Code of 1986, shall be treated as issued for its stated principal amount, and stated interest on such loans shall be treated as qualified stated interest.
(2) Regulations or guidance
The Secretary of the Treasury (or the Secretary's delegate) shall prescribe such regulations or guidance as may be necessary or appropriate to carry out the purposes of this section, including guidance providing that the acquisition of warrants, stock options, common or preferred stock or other equity under this section does not result in an ownership change for purposes of section 382 of the Internal Revenue Code of 1986 [
(
Editorial Notes
References in Text
The Federal Credit Reform Act of 1990, referred to in subsec. (a), is title V of
This part, referred to in subsecs. (e)(1) and (f), was in the original "this subtitle", meaning subtitle A (§§4001–4029) of title IV of div. A of
The Internal Revenue Code of 1986, referred to in subsec. (h)(1), is classified generally to Title 26, Internal Revenue Code.
Amendments
2022—Subsec. (f).
2020—Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2020 Amendment
Construction of 2020 Amendment
1 So in original. Probably should be preceded by a dollar sign.
§9043. Limitation on certain employee compensation
(a) In general
The Secretary may only enter into an agreement with an eligible business to make a loan or loan guarantee under paragraph (1), (2) or (3) of
(1) no officer or employee of the eligible business whose total compensation exceeded $425,000 in calendar year 2019 (other than an employee whose compensation is determined through an existing collective bargaining agreement entered into prior to March 1, 2020)—
(A) will receive from the eligible business total compensation which exceeds, during any 12 consecutive months of such period, the total compensation received by the officer or employee from the eligible business in calendar year 2019; or
(B) will receive from the eligible business severance pay or other benefits upon termination of employment with the eligible business which exceeds twice the maximum total compensation received by the officer or employee from the eligible business in calendar year 2019; and
(2) no officer or employee of the eligible business whose total compensation exceeded $3,000,000 in calendar year 2019 may receive during any 12 consecutive months of such period total compensation in excess of the sum of—
(A) $3,000,000; and
(B) 50 percent of the excess over $3,000,000 of the total compensation received by the officer or employee from the eligible business in calendar year 2019.
(b) Total compensation defined
In this section, the term "total compensation" includes salary, bonuses, awards of stock, and other financial benefits provided by an eligible business to an officer or employee of the eligible business.
(
§9044. Continuation of certain air service
The Secretary of Transportation is authorized to require, to the extent reasonable and practicable, an air carrier receiving loans and loan guarantees under
(
§9045. Coordination with Secretary of Transportation
In implementing this part with respect to air carriers, the Secretary shall coordinate with the Secretary of Transportation.
(
Editorial Notes
References in Text
This part, referred to in text, was in the original "this subtitle", meaning subtitle A (§§4001–4029) of title IV of div. A of
§9046. Suspension of certain aviation excise taxes
(a) Transportation by air
In the case of any amount paid for transportation by air (including any amount treated as paid for transportation by air by reason of
(b) Use of Kerosene in commercial aviation
In the case of kerosene used in commercial aviation (as defined in
(1) no tax shall be imposed on such kerosene under—
(A)
(B)
(2)
(A) by treating such use as a nontaxable use, and
(B) without regard to paragraph (4)(A)(ii) thereof.
(c) Excise tax holiday period
For purposes of this section, the term "excise tax holiday period" means the period beginning after March 27, 2020, and ending before January 1, 2021.
(
§9047. Federal credit union transaction account guarantees
Notwithstanding any other provision of law and in coordination with the Federal Deposit Insurance Corporation, the National Credit Union Administration Board may by a vote of the Board increase to unlimited, or such lower amount as the Board approves, the share insurance coverage provided by the National Credit Union Share Insurance Fund on any noninterest-bearing transaction account in any federally insured credit union without exception, provided that any such increase shall terminate not later than December 31, 2020.
(
§9048. Temporary Government in the Sunshine Act relief
(a) In general
Except as provided in subsection (b), notwithstanding any other provision of law, if the Chairman of the Board of Governors of the Federal Reserve System determines, in writing, that unusual and exigent circumstances exist, the Board may conduct meetings without regard to the requirements of
(1) the date on which the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (
(2) December 31, 2020.
(b) Records
The Board of Governors of the Federal Reserve System shall keep a record of all Board votes and the reasons for such votes during the period described in subsection (a).
(
Editorial Notes
References in Text
The National Emergencies Act, referred to in subsec. (a)(1), is
§9049. Temporary hiring flexibility
(a) Definition
In this section, the term "covered period" means the period beginning on March 27, 2020, and ending on the sooner of—
(1) the termination date of the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (
(2) December 31, 2020.
(b) Authority
During the covered period, the Secretary of Housing and Urban Development, the Securities and Exchange Commission, and the Commodity Futures Trading Commission may, without regard to
(
Editorial Notes
References in Text
The National Emergencies Act, referred to in subsec. (a)(1), is
§9050. Temporary relief for community banks
(a) Definitions
In this section—
(1) the term "appropriate Federal banking agency" has the meaning given the term in section 2 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (
(2) the terms "Community Bank Leverage Ratio" and "qualifying community bank" have the meanings given the terms in section 201(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (
(b) Interim rule
(1) In general
Notwithstanding any other provision of law or regulation, the appropriate Federal banking agencies shall issue an interim final rule that provides that, for the purposes of section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (
(A) the Community Bank Leverage Ratio shall be 8 percent; and
(B) a qualifying community bank that falls below the Community Bank Leverage Ratio established under subparagraph (A) shall have a reasonable grace period to satisfy the Community Bank Leverage Ratio.
(2) Effective period
The interim rule issued under paragraph (1) shall be effective during the period beginning on the date on which the appropriate Federal banking agencies issue the rule and ending on the sooner of—
(A) the termination date of the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (
(B) December 31, 2020.
(c) Grace period
During a grace period described in subsection (b)(1)(B), a qualifying community bank to which the grace period applies may continue to be treated as a qualifying community bank and shall be presumed to satisfy the capital and leverage requirements described in section 201(c) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (
(
Editorial Notes
References in Text
Section 2 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, referred to in subsec. (a)(1), is section 2 of
Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, referred to in subsecs. (a)(2), (b)(1), and (c), is section 201 of
The National Emergencies Act, referred to in subsec. (b)(2)(A), is
§9051. Temporary relief from troubled debt restructurings
(a) Definitions
In this section:
(1) Applicable period
The term "applicable period" means the period beginning on March 1, 2020 and ending on the earlier of January 1, 2022, or the date that is 60 days after the date on which the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (
(2) Appropriate federal banking agency
The term "appropriate Federal banking agency"—
(A) has the meaning given the term in
(B) includes the National Credit Union Administration.
(b) Suspension
(1) In general
During the applicable period, a financial institution, including an insurance company, may elect to—
(A) suspend the requirements under United States generally accepted accounting principles for loan modifications related to the coronavirus disease 2019 (COVID–19) pandemic that would otherwise be categorized as a troubled debt restructuring; and
(B) suspend any determination of a loan modified as a result of the effects of the coronavirus disease 2019 (COVID–19) pandemic as being a troubled debt restructuring, including impairment for accounting purposes under United States Generally Accepted Accounting Principles.
(2) Applicability
Any suspension under paragraph (1)—
(A) shall be applicable for the term of the loan modification, but solely with respect to any modification, including a forbearance arrangement, an interest rate modification, a repayment plan, and any other similar arrangement that defers or delays the payment of principal or interest, that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019; and
(B) shall not apply to any adverse impact on the credit of a borrower that is not related to the coronavirus disease 2019 (COVID–19) pandemic.
(c) Deference
The appropriate Federal banking agency of the financial institution, including an insurance company, shall defer to the determination of the financial institution, including an insurance company, to make a suspension under this section.
(d) Records
For modified loans for which suspensions under subsection (a) apply—
(1) financial institutions, including insurance companies, should continue to maintain records of the volume of loans involved; and
(2) the appropriate Federal banking agencies may collect data about such loans for supervisory purposes.
(
Editorial Notes
References in Text
The National Emergencies Act, referred to in subsec. (a)(1), is
Amendments
2020—Subsec. (a)(1).
Subsec. (b)(1).
Subsec. (b)(1)(B).
Subsec. (c).
Subsec. (d)(1).
§9052. Optional temporary relief from current expected credit losses
(a) Definitions
In this section:
(1) Appropriate Federal banking agency
The term "appropriate Federal banking agency"—
(A) has the meaning given the term in
(B) includes the National Credit Union Administration.
(2) Insured depository institution
The term "insured depository institution"—
(A) has the meaning given the term in
(B) includes a credit union.
(b) Temporary relief from CECL standards
Notwithstanding any other provision of law, no insured depository institution, bank holding company, or any affiliate thereof shall be required to comply with the Financial Accounting Standards Board Accounting Standards Update No. 2016–13 ("Measurement of Credit Losses on Financial Instruments"), including the current expected credit losses methodology for estimating allowances for credit losses, during the period beginning on March 27, 2020, and ending on the earlier of—
(1) the first day of the fiscal year of the insured depository institution, bank holding company, or any affiliate thereof that begins after the date on which the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (
(2) January 1, 2022.
(
Editorial Notes
References in Text
The National Emergencies Act, referred to in subsec. (b)(1), is
Amendments
2020—Subsec. (b)(1).
Subsec. (b)(2).
§9053. Special Inspector General for Pandemic Recovery
(a) Office of Inspector General
There is hereby established within the Department of the Treasury the Office of the Special Inspector General for Pandemic Recovery.
(b) Appointment of Inspector General; removal
(1) In general
The head of the Office of the Special Inspector General for Pandemic Recovery shall be the Special Inspector General for Pandemic Recovery (referred to in this section as the "Special Inspector General"), who shall be appointed by the President, by and with the advice and consent of the Senate.
(2) Nomination
The nomination of the Special Inspector General shall be made on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations. The nomination of an individual as Special Inspector General shall be made as soon as practicable after any loan, loan guarantee, or other investment is made under
(3) Removal
The Special Inspector General shall be removable from office in accordance with the provisions of section 3(b) of the Inspector General Act of 1978 (5 U.S.C. App.).1
(4) Political activity
For purposes of
(5) Basic pay
The annual rate of basic pay of the Special Inspector General shall be the annual rate of basic pay for an Inspector General under section 3(e) of the Inspector General Act of 1978 (5 U.S.C. App.).1
(c) Duties
(1) In general
It shall be the duty of the Special Inspector General to, in accordance with section 4(b)(1) of the Inspector General Act of 1978 (5 U.S.C. App.),1 conduct, supervise, and coordinate audits and investigations of the making, purchase, management, and sale of loans, loan guarantees, and other investments made by the Secretary of the Treasury under any program established by the Secretary under this Act, and the management by the Secretary of any program established under this Act, including by collecting and summarizing the following information:
(A) A description of the categories of the loans, loan guarantees, and other investments made by the Secretary.
(B) A listing of the eligible businesses receiving loan, loan guarantees, and other investments made under each category described in subparagraph (A).
(C) An explanation of the reasons the Secretary determined it to be appropriate to make each loan or loan guarantee under this Act, including a justification of the price paid for, and other financial terms associated with, the applicable transaction.
(D) A listing of, and detailed biographical information with respect to, each person hired to manage or service each loan, loan guarantee, or other investment made under
(E) A current, as of the date on which the information is collected, estimate of the total amount of each loan, loan guarantee, and other investment made under this Act that is outstanding, the amount of interest and fees accrued and received with respect to each loan or loan guarantee, the total amount of matured loans, the type and amount of collateral, if any, and any losses or gains, if any, recorded or accrued for each loan, loan guarantee, or other investment.
(2) Maintenance of systems
The Special Inspector General shall establish, maintain, and oversee such systems, procedures, and controls as the Special Inspector General considers appropriate to discharge the duties of the Special Inspector General under paragraph (1).
(3) Additional duties and responsibilities
In addition to the duties described in paragraphs (1) and (2), the Special Inspector General shall also have the duties and responsibilities of inspectors general under the Inspector General Act of 1978 (5 U.S.C. App.).1
(d) Powers and authorities
(1) In general
In carrying out the duties of the Special Inspector General under subsection (c), the Special Inspector General shall have the authorities provided in section 6 of the Inspector General Act of 1978 (5 U.S.C. App.).1
(2) Treatment of Office
The Office of the Special Inspector General for Pandemic Recovery shall be considered to be an office described in section 6(f)(3) of the Inspector General Act of 1978 (5 U.S.C. App.) 1 and shall be exempt from an initial determination by the Attorney General under section 6(f)(2) of that Act.
(e) Personnel, facilities, and other resources
(1) Appointment of officers and employees
The Special Inspector General may select, appoint, and employ such officers and employees as may be necessary for carrying out the duties of the Special Inspector General, subject to the provisions of title 5 governing appointments in the competitive service, and the provisions of
(2) Experts and consultants
The Special Inspector General may obtain services as authorized under
(3) Contracts
The Special Inspector General may enter into contracts and other arrangements for audits, studies, analyses, and other services with public agencies and with private persons, and make such payments as may be necessary to carry out the duties of the Inspector General.
(4) Requests for information
(A) In general
Upon request of the Special Inspector General for information or assistance from any department, agency, or other entity of the Federal Government, the head of that department, agency, or entity shall, to the extent practicable and not in contravention of any existing law, furnish that information or assistance to the Special Inspector General, or an authorized designee.
(B) Refusal to provide requested information
Whenever information or assistance requested by the Special Inspector General is, in the judgment of the Special Inspector General, unreasonably refused or not provided, the Special Inspector General shall report the circumstances to the appropriate committees of Congress without delay.
(f) Reports
(1) Quarterly reports
(A) In general
Not later than 60 days after the date on which the Special Inspector General is confirmed, and once every calendar quarter thereafter, the Special Inspector General shall submit to the appropriate committees of Congress a report summarizing the activities of the Special Inspector General during the 3-month period ending on the date on which the Special Inspector General submits the report.
(B) Contents
Each report submitted under subparagraph (A) shall include, for the period covered by the report, a detailed statement of all loans, loan guarantees, other transactions, obligations, expenditures, and revenues associated with any program established by the Secretary under
(2) Rule of construction
Nothing in this subsection may be construed to authorize the public disclosure of information that is—
(A) specifically prohibited from disclosure by any other provision of law;
(B) specifically required by Executive order to be protected from disclosure in the interest of national defense or national security or in the conduct of foreign affairs; or
(C) a part of an ongoing criminal investigation.
(g) Funding
(1) In general
Of the amounts made available to the Secretary under
(2) Availability
The amounts made available to the Special Inspector General under paragraph (1) shall remain available until expended.
(h) Termination
The Office of the Special Inspector General shall terminate on the date 5 years after March 27, 2020.
(i) Council of the Inspectors General on integrity and efficiency
The Special Inspector General shall be a member of the Council of the Inspectors General on Integrity and Efficiency established under section 11 of the Inspector General Act of 1978 (5 U.S.C. App.) 1 until the date of termination of the Office of the Special Inspector General.
(j) Corrective responses to audit problems
The Secretary shall—
(1) take action to address deficiencies identified by a report or investigation of the Special Inspector General; or
(2) with respect to a deficiency identified under paragraph (1), certify to the Committee on Banking, Housing, and Urban Affairs of the Senate, the Committee on Finance of the Senate, the Committee on Financial Services of the House of Representatives, and the Committee on Ways and Means of the House of Representatives that no action is necessary or appropriate.
(
Editorial Notes
References in Text
The Inspector General Act of 1978, referred to in subsecs. (b) to (d) and (i), is
This Act, referred to in subsec. (c)(1), probably means subtitle A (§§4001–4029) of title IV of div. A of
1 See References in Text note below.
§9054. Conflicts of interest
(a) Definitions
In this section:
(1) Controlling interest
The term "controlling interest" means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity.
(2) Covered entity
The term "covered entity" means an entity in which a covered individual directly or indirectly holds a controlling interest. For the purpose of determining whether an entity is a covered entity, the securities owned, controlled, or held by 2 or more individuals who are related as described in paragraph (3)(B) shall be aggregated.
(3) Covered individual
The term "covered individual" means—
(A) the President, the Vice President, the head of an Executive department, or a Member of Congress; and
(B) the spouse, child, son-in-law, or daughter-in-law, as determined under applicable common law, of an individual described in subparagraph (A).
(4) Executive department
The term "Executive department" has the meaning given the term in
(5) Member of Congress
The term "member of Congress" means a member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico.
(6) Equity interest
The term "equity interest" means—
(A) a share in an entity, without regard to whether the share is—
(i) transferable; or
(ii) classified as stock or anything similar;
(B) a capital or profit interest in a limited liability company or partnership; or
(C) a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest described in subparagraph (A) or (B), respectively.
(b) Prohibition
Notwithstanding any other provision of this part, no covered entity may be eligible for any transaction described in
(c) Requirement
The principal executive officer and the principal financial officer, or individuals performing similar functions, of an entity seeking to enter a transaction under
(
Editorial Notes
References in Text
This part, referred to in subsec. (b), was in the original "this subtitle", meaning subtitle A (§§4001–4029) of title IV of div. A of
§9055. Congressional Oversight Commission
(a) Establishment
There is hereby established the Congressional Oversight Commission (hereafter in this section referred to as the "Oversight Commission") as an establishment in the legislative branch.
(b) Duties
(1) In general
The Oversight Commission shall—
(A) conduct oversight of the implementation of this part by the Department of the Treasury and the Board of Governors of the Federal Reserve System, including efforts of the Department and the Board to provide economic stability as a result of the coronavirus disease 2019 (COVID–19) pandemic of 2020;
(B) submit to Congress reports under paragraph (2); and
(C) review the implementation of this part by the Federal Government.
(2) Regular reports
(A) In general
Reports of the Oversight Commission shall include the following:
(i) The use by the Secretary and the Board of Governors of the Federal Reserve System of authority under this part, including with respect to the use of contracting authority and administration of the provisions of this part.
(ii) The impact of loans, loan guarantees, and investments made under this part on the financial well-being of the people of the United States and the United States economy, financial markets, and financial institutions.
(iii) The extent to which the information made available on transactions under this part has contributed to market transparency.
(iv) The effectiveness of loans, loan guarantees, and investments made under this part of minimizing long-term costs to the taxpayers and maximizing the benefits for taxpayers.
(B) Timing
The reports required under this paragraph shall be submitted not later than 30 days after the first exercise by the Secretary and the Board of Governors of the Federal Reserve System of the authority under this part and every 30 days thereafter.
(c) Membership
(1) In general
The Oversight Commission shall consist of 5 members as follows:
(A) 1 member appointed by the Speaker of the House of Representatives.
(B) 1 member appointed by the minority leader of the House of Representatives.
(C) 1 member appointed by the majority leader of the Senate.
(D) 1 member appointed by the minority leader of the Senate.
(E) 1 member appointed as Chairperson by the Speaker of the House of Representatives and the majority leader of the Senate, after consultation with the minority leader of the Senate and the minority leader of the House of Representatives 1
(2) Pay
Each member of the Oversight Commission shall be paid at a rate equal to the daily equivalent of the annual rate of basic pay for level I of the Executive Schedule for each day (including travel time) during which such member is engaged in the actual performance of duties vested in the Oversight Commission.
(3) Prohibition of compensation of Federal employees
Members of the Oversight Commission who are full-time officers or employees of the United States may not receive additional pay, allowances, or benefits by reason of their service on the Oversight Commission.
(4) Travel expenses
Each member shall receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of
(5) Quorum
Four members of the Oversight Commission shall constitute a quorum but a lesser number may hold hearings.
(6) Vacancies
A vacancy on the Oversight Commission shall be filled in the manner in which the original appointment was made.
(7) Meetings
The Oversight Commission shall meet at the call of the Chairperson or a majority of its members.
(d) Staff
(1) In general
The Oversight Commission may appoint and fix the pay of any personnel as the Oversight Commission considers appropriate.
(2) Experts and consultants
The Oversight Commission may procure temporary and intermittent services under
(3) Staff of agencies
Upon request of the Oversight Commission, the head of any Federal department or agency may detail, on a reimbursable basis, any of the personnel of that department or agency to the Oversight Commission to assist it in carrying out its duties under the this 2 part.
(e) Powers
(1) Hearings and evidence
The Oversight Commission, or any subcommittee or member thereof, may, for the purpose of carrying out this section hold hearings, sit and act at times and places, take testimony, and receive evidence as the Oversight Commission considers appropriate and may administer oaths or affirmations to witnesses appearing before it.
(2) Contracting
The Oversight Commission may, to such extent and in such amounts as are provided in appropriation Acts, enter into contracts to enable the Oversight Commission to discharge its duties under this section.
(3) Powers of members and agents
Any member or agent of the Oversight Commission may, if authorized by the Oversight Commission, take any action which the Oversight Commission is authorized to take by this section.
(4) Obtaining official data
The Oversight Commission may secure directly from any department or agency of the United States information necessary to enable it to carry out this section. Upon request of the Chairperson of the Oversight Commission, the head of that department or agency shall furnish that information to the Oversight Commission.
(5) Reports
The Oversight Commission shall receive and consider all reports required to be submitted to the Oversight Commission under this part.
(f) Termination
The Oversight Commission shall terminate on June 30, 2023.
(g) Funding for expenses
(1) Authorization of appropriations
There is authorized to be appropriated to the Oversight Commission such sums as may be necessary for any fiscal year, half of which shall be derived from the applicable account of the House of Representatives, and half of which shall be derived from the contingent fund of the Senate.
(2) Reimbursement of amounts
An amount equal to the expenses of the Oversight Commission shall be promptly transferred by the Secretary and the Board of Governors of the Federal Reserve System, from time to time upon the presentment of a statement of such expenses by the Chairperson of the Oversight Commission, from funds made available to the Secretary under this part to the applicable fund of the House of Representatives and the contingent fund of the Senate, as appropriate, as reimbursement for amounts expended from such account and fund under paragraph (1).
(
Editorial Notes
References in Text
This part, referred to in subsecs. (b), (d)(3), (e)(5), and (g)(2), was in the original "this subtitle", meaning subtitle A (§§4001–4029) of title IV of div. A of
Level I of the Executive Schedule, referred to in subsec. (c)(2), is set out in
Amendments
2022—Subsec. (f).
1 So in original. Probably should be followed by a period.
§9056. Foreclosure moratorium and consumer right to request forbearance
(a) Definitions
In this section:
(1) COVID–19 emergency
The term "COVID–19 emergency" means the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (
(2) Federally backed mortgage loan
The term "Federally backed mortgage loan" includes any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4- families that is—
(A) insured by the Federal Housing Administration under title II of the National Housing Act (
(B) insured under section 255 of the National Housing Act (
(C) guaranteed under
(D) guaranteed or insured by the Department of Veterans Affairs;
(E) guaranteed or insured by the Department of Agriculture;
(F) made by the Department of Agriculture; or
(G) purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
(b) Forbearance
(1) In general
During the covered period, a borrower with a Federally backed mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID–19 emergency may request forbearance on the Federally backed mortgage loan, regardless of delinquency status, by—
(A) submitting a request to the borrower's servicer; and
(B) affirming that the borrower is experiencing a financial hardship during the COVID–19 emergency.
(2) Duration of forbearance
Upon a request by a borrower for forbearance under paragraph (1), such forbearance shall be granted for up to 180 days, and shall be extended for an additional period of up to 180 days at the request of the borrower, provided that, at the borrower's request, either the initial or extended period of forbearance may be shortened.
(3) Accrual of interest or fees
During a period of forbearance described in this subsection, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrower's account.
(c) Requirements for servicers
(1) In general
Upon receiving a request for forbearance from a borrower under subsection (b), the servicer shall with no additional documentation required other than the borrower's attestation to a financial hardship caused by the COVID–19 emergency and with no fees, penalties, or interest (beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract) charged to the borrower in connection with the forbearance, provide the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower, provided that, the borrower's request for an extension is made during the covered period, and, at the borrower's request, either the initial or extended period of forbearance may be shortened.
(2) Foreclosure moratorium
Except with respect to a vacant or abandoned property, a servicer of a Federally backed mortgage loan may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale for not less than the 60-day period beginning on March 18, 2020.
(
Editorial Notes
References in Text
The National Emergencies Act, referred to in subsec. (a)(1), is
The National Housing Act, referred to in subsec. (a)(2)(A), is act June 27, 1934, ch. 847,
Executive Documents
Ex. Ord. No. 13945. Fighting the Spread of COVID–19 by Providing Assistance to Renters and Homeowners
Ex. Ord. No. 13945, Aug. 8, 2020, 85 F.R. 49935, provided:
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:
The Centers for Disease Control and Prevention (CDC) of the Department of Health and Human Services have concluded that "growing and disproportionate unemployment rates for some racial and ethnic minority groups during the COVID–19 pandemic may lead to greater risk of eviction and homelessness or sharing of housing."
This trend is concerning for many reasons, including that homeless shelters have proven to be particularly susceptible to outbreaks of COVID–19. CDC has observed that "[h]omelessness poses multiple challenges that can exacerbate and amplify the spread of COVID–19. Homeless shelters are often crowded, making social distancing difficult. Many persons experiencing homelessness are older or have underlying medical conditions, placing them at higher risk for severe COVID–19-associated illness." Increased shared housing is also potentially problematic to the extent it results in increased in-person interactions between older, higher-risk individuals and their younger relatives or friends.
My Administration has taken bold steps to help renters and homeowners have safe and secure places to call home during the COVID–19 crisis. Prior to passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (
The CARES Act imposed a temporary moratorium on evictions of certain renters subject to certain conditions. That moratorium has now expired, and there is a significant risk that this will set off an abnormally large wave of evictions. With the failure of the Congress to act, my Administration must do all that it can to help vulnerable populations stay in their homes in the midst of this pandemic. Those who are dislocated from their homes may be unable to shelter in place and may have more difficulty maintaining a routine of social distancing. They will have to find alternative living arrangements, which may include a homeless shelter or a crowded family home and may also require traveling to other States.
In addition, evictions tend to disproportionately affect minorities, particularly African Americans and Latinos. Unlike the Congress, I cannot sit idly and refuse to assist vulnerable Americans in need. Under my Administration, minorities achieved the lowest unemployment rates on record, and we will not let COVID–19 erase these gains by causing short-term dislocations that could well have long-term consequences.
Accordingly, my Administration, to the extent reasonably necessary to prevent the further spread of COVID–19, will take all lawful measures to prevent residential evictions and foreclosures resulting from financial hardships caused by COVID–19.
(b) The Secretary of the Treasury and the Secretary of Housing and Urban Development shall identify any and all available Federal funds to provide temporary financial assistance to renters and homeowners who, as a result of the financial hardships caused by COVID–19, are struggling to meet their monthly rental or mortgage obligations.
(c) The Secretary of Housing and Urban Development shall take action, as appropriate and consistent with applicable law, to promote the ability of renters and homeowners to avoid eviction or foreclosure resulting from financial hardships caused by COVID–19. Such action may include encouraging and providing assistance to public housing authorities, affordable housing owners, landlords, and recipients of Federal grant funds in minimizing evictions and foreclosures.
(d) In consultation with the Secretary of the Treasury, the Director of FHFA shall review all existing authorities and resources that may be used to prevent evictions and foreclosures for renters and homeowners resulting from hardships caused by COVID–19.
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
Donald J. Trump.
§9057. Forbearance of residential mortgage loan payments for multifamily properties with Federally backed loans
(a) In general
During the covered period, a multifamily borrower with a Federally backed multifamily mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID–19 emergency may request a forbearance under the terms set forth in this section.
(b) Request for relief
A multifamily borrower with a Federally backed multifamily mortgage loan that was current on its payments as of February 1, 2020, may submit an oral or written request for forbearance under subsection (a) to the borrower's servicer affirming that the multifamily borrower is experiencing a financial hardship during the COVID–19 emergency.
(c) Forbearance period
(1) In general
Upon receipt of an oral or written request for forbearance from a multifamily borrower, a servicer shall—
(A) document the financial hardship;
(B) provide the forbearance for up to 30 days; and
(C) extend the forbearance for up to 2 additional 30 day periods upon the request of the borrower provided that, the borrower's request for an extension is made during the covered period, and, at least 15 days prior to the end of the forbearance period described under subparagraph (B).
(2) Right to discontinue
A multifamily borrower shall have the option to discontinue the forbearance at any time.
(d) Renter protections during forbearance period
A multifamily borrower that receives a forbearance under this section may not, for the duration of the forbearance—
(1) evict or initiate the eviction of a tenant from a dwelling unit located in or on the applicable property solely for nonpayment of rent or other fees or charges; or
(2) charge any late fees, penalties, or other charges to a tenant described in paragraph (1) for late payment of rent.
(e) Notice
A multifamily borrower that receives a forbearance under this section—
(1) may not require a tenant to vacate a dwelling unit located in or on the applicable property before the date that is 30 days after the date on which the borrower provides the tenant with a notice to vacate; and
(2) may not issue a notice to vacate under paragraph (1) until after the expiration of the forbearance.
(f) Definitions
In this section:
(1) Applicable property
The term "applicable property", with respect to a Federally backed multifamily mortgage loan, means the residential multifamily property against which the mortgage loan is secured by a lien.
(2) Federally backed multifamily mortgage loan
The term "Federally backed multifamily mortgage loan" includes any loan (other than temporary financing such as a construction loan) that—
(A) is secured by a first or subordinate lien on residential multifamily real property designed principally for the occupancy of 5 or more families, including any such secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same property; and
(B) is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the Federal Government or under or in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development or a housing or related program administered by any other such officer or agency, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
(3) Multifamily borrower
the term "multifamily borrower" means a borrower of a residential mortgage loan that is secured by a lien against a property comprising 5 or more dwelling units.
(4) COVID–19 emergency
The term "COVID–19 emergency" means the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (
(5) Covered period
The term "covered period" means the period beginning on March 27, 2020, and ending on the sooner of—
(A) the termination date of the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (
(B) December 31, 2020.
(
Editorial Notes
References in Text
The National Emergencies Act, referred to in subsec. (f)(4), (5)(A), is
§9058. Temporary moratorium on eviction filings
(a) Definitions
In this section:
(1) Covered dwelling
The term "covered dwelling" means a dwelling that—
(A) is occupied by a tenant—
(i) pursuant to a residential lease; or
(ii) without a lease or with a lease terminable under State law; and
(B) is on or in a covered property.
(2) Covered property
The term "covered property" means any property that—
(A) participates in—
(i) a covered housing program (as defined in
(ii) the rural housing voucher program under
(B) has a—
(i) Federally backed mortgage loan; or
(ii) Federally backed multifamily mortgage loan.
(3) Dwelling
The term "dwelling"—
(A) has the meaning given the term in
(B) includes houses and dwellings described in
(4) Federally backed mortgage loan
The term "Federally backed mortgage loan" includes any loan (other than temporary financing such as a construction loan) that—
(A) is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1 to 4 families, including any such secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same property; and
(B) is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the Federal Government or under or in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development or a housing or related program administered by any other such officer or agency, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
(5) Federally backed multifamily mortgage loan
The term "Federally backed multifamily mortgage loan" includes any loan (other than temporary financing such as a construction loan) that—
(A) is secured by a first or subordinate lien on residential multifamily real property designed principally for the occupancy of 5 or more families, including any such secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same property; and
(B) is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the Federal Government or under or in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development or a housing or related program administered by any other such officer or agency, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
(b) Moratorium
During the 120-day period beginning on March 27, 2020, the lessor of a covered dwelling may not—
(1) make, or cause to be made, any filing with the court of jurisdiction to initiate a legal action to recover possession of the covered dwelling from the tenant for nonpayment of rent or other fees or charges; or
(2) charge fees, penalties, or other charges to the tenant related to such nonpayment of rent.
(c) Notice
The lessor of a covered dwelling unit—
(1) may not require the tenant to vacate the covered dwelling unit before the date that is 30 days after the date on which the lessor provides the tenant with a notice to vacate; and
(2) may not issue a notice to vacate under paragraph (1) until after the expiration of the period described in subsection (b).
(
§9058a. Emergency rental assistance
(a) Appropriation
(1) In general
Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for making payments to eligible grantees under this section, $25,000,000,000 for fiscal year 2021.
(2) Reservation of funds for the territories and tribal communities
Of the amount appropriated under paragraph (1), the Secretary shall reserve—
(A) $400,000,000 of such amount for making payments under this section to the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa; and
(B) $800,000,000 of such amount for making payments under this section to eligible grantees described in subparagraphs (C) and (D) of subsection (k)(2); and
(C) $15,000,000 for administrative expenses of the Secretary described in subsection (h).
(b) Payments for rental assistance
(1) Allocation and payments to states and units of local government
(A) In general
The amount appropriated under paragraph (1) of subsection (a) that remains after the application of paragraph (2) of such subsection shall be allocated and paid to eligible grantees described in subparagraph (B) in the same manner as the amount appropriated under subsection (a)(1) of
(i) the deadline for payments under section 801(b)(1) of such title shall, for purposes of payments under this section, be deemed to be not later than 30 days after December 27, 2020;
(ii) the amount referred to in paragraph (3) of section 801(c) of such title shall be deemed to be the amount appropriated under paragraph (1) of subsection (a) of this Act 1 that remains after the application of paragraph (2) of such subsection;
(iii)
(I) by substituting "1 of the 50 States or the District of Columbia" for "1 of the 50 States" each place it appears;
(II) in paragraph (2)(A), by substituting " $200,000,000" for " $1,250,000,000";
(III) in paragraph (2)(B), by substituting "each of the 50 States and District of Columbia" for "each of the 50 States";
(IV) in paragraph (4), by substituting "excluding the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa" for "excluding the District of Columbia and territories specified in subsection (a)(2)(A)"; and
(V) without regard to paragraph (6);
(iv) section 801(d) of such title shall not apply to such payments; and
(v) section 801(e) of such title 2 shall be applied—
(I) by substituting "under
(II) by substituting "local government elects to receive funds from the Secretary under
(B) Eligible grantees described
The eligible grantees described in this subparagraph are the following:
(i) A State that is 1 of the 50 States or the District of Columbia.
(ii) A unit of local government located in a State described in clause (i).
(2) Allocation and payments to tribal communities
(A) In general
From the amount reserved under subsection (a)(2)(B), the Secretary shall—
(i) pay the amount equal to 0.3 percent of such amount to the Department of Hawaiian Home Lands; and
(ii) subject to subparagraph (B), from the remainder of such amount, allocate and pay to each Indian tribe (or, if applicable, the tribally designated housing entity of an Indian tribe) that was eligible for a grant under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA) (
(B) Pro rata adjustment; distribution of declined funds
(i) Pro rata adjustments
The Secretary shall make pro rata reductions in the amounts of the allocations determined under clause (ii) of subparagraph (A) for entities described in such clause as necessary to ensure that the total amount of payments made pursuant to such clause does not exceed the remainder amount described in such clause.
(ii) Distribution of declined funds
If the Secretary determines as of 30 days after December 27, 2020, that an entity described in clause (ii) of subparagraph (A) has declined to receive its full allocation under such clause then, not later than 15 days after such date, the Secretary shall redistribute, on a pro rata basis, such allocation among the other entities described in such clause that have not declined to receive their allocations.
(3) Allocations and payments to territories
(A) In general
From the amount reserved under subsection (a)(2)(A), subject to subparagraph (B), the Secretary shall allocate and pay to each eligible grantee described in subparagraph (C) an amount equal to the product of—
(i) the amount so reserved; and
(ii) each such eligible grantee's share of the combined total population of all such eligible grantees, as determined by the Secretary.
(B) Allocation adjustment
(i) Requirement
The sum of the amounts allocated under subparagraph (A) to all of the eligible grantees described in clause (ii) of subparagraph (C) shall not be less than the amount equal to 0.3 percent of the amount appropriated under subsection (a)(1).
(ii) Reduction
The Secretary shall reduce the amount of the allocation determined under subparagraph (A) for the eligible grantee described in clause (i) of subparagraph (C) as necessary to meet the requirement of clause (i).
(C) Eligible grantees described
The eligible grantees described in this subparagraph are—
(i) the Commonwealth of Puerto Rico; and
(ii) the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa.
(c) Use of funds
(1) In general
An eligible grantee shall only use the funds provided from a payment made under this section to provide financial assistance and housing stability services to eligible households.
(2) Financial assistance
(A) In general
Not less than 90 percent of the funds received by an eligible grantee from a payment made under this section shall be used to provide financial assistance to eligible households, including the payment of
(i) rent;
(ii) rental arrears;
(iii) utilities and home energy costs;
(iv) utilities and home energy costs arrears; and
(v) other expenses related to housing incurred due, directly or indirectly, to the novel coronavirus disease (COVID–19) outbreak, as defined by the Secretary.
Such assistance shall be provided for a period not to exceed 12 months except that grantees may provide assistance for an additional 3 months only if necessary to ensure housing stability for a household subject to the availability of funds.
(B) Limitation on assistance for prospective rent payments
(i) In general
Subject to the exception in clause (ii), an eligible grantee shall not provide an eligible household with financial assistance for prospective rent payments for more than 3 months based on any application by or on behalf of the household.
(ii) Exception
For any eligible household described in clause (i), such household may receive financial assistance for prospective rent payments for additional months:
(I) subject to the availability of remaining funds currently allocated to the eligible grantee, and
(II) based on a subsequent application for additional financial assistance provided that the total months of financial assistance provided to the household do not exceed the total months of assistance allowed under subparagraph (A).
(iii) Further limitation
To the extent that applicants have rental arrears, grantees may not make commitments for prospective rent payments unless they have also provided assistance to reduce an eligible household's rental arrears.
(C) Distribution of financial assistance
(i) Payments
(I) In general
With respect to financial assistance for rent and rental arrears and utilities and home energy costs and utility and home energy costs arrears provided to an eligible household from a payment made under this section, an eligible grantee shall make payments to a lessor or utility provider on behalf of the eligible household, except that, if the lessor or utility provider does not agree to accept such payment from the grantee after outreach to the lessor or utility provider by the grantee, the grantee may make such payments directly to the eligible household for the purpose of making payments to the lessor or utility provider.
(II) Rule of construction
Nothing in this section shall be construed to invalidate any otherwise legitimate grounds for eviction.
(ii) Documentation
For any payments made by an eligible grantee to a lessor or utility provider on behalf of an eligible household, the eligible grantee shall provide documentation of such payments to such household.
(3) Housing stability services
Not more than 10 percent of funds received by an eligible grantee from a payment made under this section may be used to provide eligible households with case management and other services related to the novel coronavirus disease (COVID–19) outbreak, as defined by the Secretary, intended to help keep households stably housed.
(4) Prioritization of assistance
(A) In reviewing applications for financial assistance and housing stability services to eligible households from a payment made under this section, an eligible grantee shall prioritize consideration of the applications of an eligible household that satisfies any of the following conditions:
(i) The income of the household does not exceed 50 percent of the area median income for the household.
(ii) 1 or more individuals within the household are unemployed as of the date of the application for assistance and have not been employed for the 90-day period preceding such date.
(B) Nothing in this section shall be construed to prohibit an eligible grantee from providing a process for the further prioritizing of applications for financial assistance and housing stability services from a payment made under this section, including to eligible households in which 1 or more individuals within the household were unable to reach their place of employment or their place of employment was closed because of a public health order imposed as a direct result of the COVID–19 public health emergency.
(5) Administrative costs
(A) In general
Not more than 10 percent of the amount paid to an eligible grantee under this section may be used for administrative costs attributable to providing financial assistance and housing stability services under paragraphs (2) and (3), respectively, including for data collection and reporting requirements related to such funds.
(B) No other administrative costs
Amounts paid under this section shall not be used for any administrative costs other than to the extent allowed under subparagraph (A).
(d) Reallocation of unused funds
Beginning on September 30, 2021, the Secretary shall recapture excess funds, as determined by the Secretary, not obligated by a grantee for the purposes described under subsection (c) and the Secretary shall reallocate and repay such amounts to eligible grantees who, at the time of such reallocation, have obligated at least 65 percent of the amount originally allocated and paid to such grantee under subsection (b)(1), only for the allowable uses described under subsection (c). The amount of any such reallocation shall be determined based on demonstrated need within a grantee's jurisdiction, as determined by the Secretary.
(e) Availability
(1) In general
Funds provided to an eligible grantee under a payment made under this section shall remain available through September 30, 2022.
(2) Extension for funds provided pursuant to a reallocation of unused funds
For funds reallocated to an eligible grantee pursuant to subsection (d), an eligible grantee may request, subject to the approval of the Secretary, a 90-day extension of the deadline established in paragraph (1).
(f) Application for assistance by landlords and owners
(1) In general
Subject to paragraph (2), nothing in this section shall preclude a landlord or owner of a residential dwelling from—
(A) assisting a renter of such dwelling in applying for assistance from a payment made under this section; or
(B) applying for such assistance on behalf of a renter of such dwelling.
(2) Requirements for applications submitted on behalf of tenants
If a landlord or owner of a residential dwelling submits an application for assistance from a payment made under this section on behalf of a renter of such dwelling—
(A) the landlord must obtain the signature of the tenant on such application, which may be documented electronically;
(B) documentation of such application shall be provided to the tenant by the landlord; and
(C) any payments received by the landlord from a payment made under this section shall be used to satisfy the tenant's rental obligations to the owner.
(g) Reporting requirements
(1) In general
The Secretary, in consultation with the Secretary of Housing and Urban Development, shall provide public reports not less frequently than quarterly regarding the use of funds made available under this section, which shall include, with respect to each eligible grantee under this section, both for the past quarter and over the period for which such funds are available—
(A) the number of eligible households that receive assistance from such payments;
(B) the acceptance rate of applicants for assistance;
(C) the type or types of assistance provided to each eligible household;
(D) the average amount of funding provided per eligible household receiving assistance;
(E) household income level, with such information disaggregated for households with income that—
(i) does not exceed 30 percent of the area median income for the household;
(ii) exceeds 30 percent but does not exceed 50 percent of the area median income for the household; and
(iii) exceeds 50 percent but does not exceed 80 percent of area median income for the household; and
(F) the average number of monthly rental or utility payments that were covered by the funding amount that a household received, as applicable.
(2) Disaggregation
Each report under this subsection shall disaggregate the information relating to households provided under subparagraphs (A) through (F) of paragraph (1) by the gender, race, and ethnicity of the primary applicant for assistance in such households.
(3) Alternative reporting requirements for certain grantees
The Secretary may establish alternative reporting requirements for grantees described in subsection (b)(2).
(4) Privacy requirements
(A) In general
Each eligible grantee that receives a payment under this section shall establish data privacy and security requirements for the information described in paragraph (1) that—
(i) include appropriate measures to ensure that the privacy of the individuals and households is protected;
(ii) provide that the information, including any personally identifiable information, is collected and used only for the purpose of submitting reports under paragraph (1); and
(iii) provide confidentiality protections for data collected about any individuals who are survivors of intimate partner violence, sexual assault, or stalking.
(B) Statistical research
(i) In general
The Secretary—
(I) may provide full and unredacted information provided under subparagraphs (A) through (F) of paragraph (1), including personally identifiable information, for statistical research purposes in accordance with existing law; and
(II) may collect and make available for statistical research, at the census tract level, information collected under subparagraph (A).
(ii) Application of privacy requirements
A recipient of information under clause (i) shall establish for such information the data privacy and security requirements described in subparagraph (A).
(5) Nonapplication of the Paperwork Reduction Act
Subchapter I of
(h) Administrative expenses of the Secretary
Of the funds appropriated pursuant to subsection (a), not more than $15,000,000 may be used for administrative expenses of the Secretary in administering this section, including technical assistance to grantees in order to facilitate effective use of funds provided under this section.
(i) Inspector General Oversight; Recoupment
(1) Oversight authority
The Inspector General of the Department of the Treasury shall conduct monitoring and oversight of the receipt, disbursement, and use of funds made available under this section.
(2) Recoupment
If the Inspector General of the Department of the Treasury determines that a State, Tribal government, or unit of local government has failed to comply with subsection (c), the amount equal to the amount of funds used in violation of such subsection shall be booked as a debt of such entity owed to the Federal Government. Amounts recovered under this subsection shall be deposited into the general fund of the Treasury.
(3) Appropriation
Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated to the Office of the Inspector General of the Department of the Treasury, $6,500,000 to carry out oversight and recoupment activities under this subsection. Amounts appropriated under the preceding sentence shall remain available until expended.
(4) Authority of Inspector General
Nothing in this subsection shall be construed to diminish the authority of any Inspector General, including such authority as provided in the Inspector General Act of 1978 (5 U.S.C. App.) 3
(j) Treatment of assistance
Assistance provided to a household from a payment made under this section shall not be regarded as income and shall not be regarded as a resource for purposes of determining the eligibility of the household or any member of the household for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.
(k) Definitions
In this section:
(1) Area median income
The term "area median income" means, with respect to a household, the median income for the area in which the household is located, as determined by the Secretary of Housing and Urban Development.
(2) Eligible grantee
The term "eligible grantee" means any of the following:
(A) A State (as defined in
(B) A unit of local government (as defined in paragraph (5)).
(C) An Indian tribe or its tribally designated housing entity (as such terms are defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (
(D) The Department of Hawaiian Homelands.
(3) Eligible household
(A) In general
The term "eligible household" means a household of 1 or more individuals who are obligated to pay rent on a residential dwelling and with respect to which the eligible grantee involved determines—
(i) that 1 or more individuals within the household has 4
(I) qualified for unemployment benefits or
(II) experienced a reduction in household income, incurred significant costs, or experienced other financial hardship due, directly or indirectly, to the novel coronavirus disease (COVID–19) outbreak, which the applicant shall attest in writing;
(ii) that 1 or more individuals within the household can demonstrate a risk of experiencing homelessness or housing instability, which may include—
(I) a past due utility or rent notice or eviction notice;
(II) unsafe or unhealthy living conditions; or
(III) any other evidence of such risk, as determined by the eligible grantee involved; and
(iii) the household has a household income that is not more than 80 percent of the area median income for the household.
(B) Exception
To the extent feasible, an eligible grantee shall ensure that any rental assistance provided to an eligible household pursuant to funds made available under this section is not duplicative of any other Federally funded rental assistance provided to such household.
(C) Income determination
(i) In determining the income of a household for purposes of determining such household's eligibility for assistance from a payment made under this section (including for purposes of subsection (c)(4)), the eligible grantee involved shall consider either
(I) the household's total income for calendar year 2020, or
(II) subject to clause (ii), sufficient confirmation, as determined by the Secretary, of the household's monthly income at the time of application for such assistance.
(ii) In the case of income determined under subclause (II), the eligible grantee shall be required to re-determine the eligibility of a household's income after each such period of 3 months for which the household receives assistance from a payment made under this section.
(4) Inspector General
The term "Inspector General" means the Inspector General of the Department of the Treasury.
(5) Secretary
The term "Secretary" means the Secretary of the Treasury.
(6) Unit of local government
The term "unit of local government" has the meaning given such term in paragraph (2) of
(l) Termination of program
The authority of an eligible grantee to make new obligations to provide payments under subsection (c) shall terminate on the date established in subsection (e) for that eligible grantee. Amounts not expended in accordance with this section shall revert to the Department of the Treasury.
(
Editorial Notes
References in Text
The Native American Housing Assistance and Self-Determination Act of 1996, referred to in subsecs. (b)(2)(A)(ii) and (k)(2)(C), is
The Further Consolidated Appropriations Act, 2020, referred to in subsecs. (b)(2)(A)(ii) and (k)(2)(C), is
The Inspector General Act of 1978, referred to in subsec. (i)(4), is
The Alaska Native Claims Settlement Act, referred to in subsec. (k)(2)(C), is
Codification
In subsec. (b)(1)(A)(v), "section 801(e) of such title" was in the original "section 601(e)", and was translated as meaning "section 601(e) of such Act", meaning section 601(e) of the Social Security Act, to reflect the probable intent of Congress.
Section was enacted as part of the Consolidated Appropriations Act, 2021, and not as part of the CARES Act which in part comprises this chapter.
Amendments
2021—Subsec. (e)(1).
1 So in original. Probably should be "this section".
2 See Codification note below.
3 So in original. Probably should be followed by a period. See References in Text note below.
4 So in original. Probably should be followed by a dash.
§9058b. Funding for water assistance program
(a) In general
In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services (in this section referred to as the "Secretary") for fiscal year 2021, out of any amounts in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, for grants to States and Indian Tribes to assist low-income households, particularly those with the lowest incomes, that pay a high proportion of household income for drinking water and wastewater services, by providing funds to owners or operators of public water systems or treatment works to reduce arrearages of and rates charged to such households for such services.
(b) Allotment
The Secretary shall—
(1) allot amounts appropriated in this section to a State or Indian Tribe based on—
(A) the percentage of households in the State, or under the jurisdiction of the Indian Tribe, with income equal or less than 150 percent of the Federal poverty line; and
(B) the percentage of households in the State, or under the jurisdiction of the Indian Tribe, that spend more than 30 percent of monthly income on housing; and
(2) reserve up to 3 percent of the amount appropriated in this section for Indian Tribes and tribal organizations.
(c) Definition
In this section, the term "State" means each of the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands.
(
Editorial Notes
Codification
Section was enacted as part of the American Rescue Plan Act of 2021, and not as part of the CARES Act which in part comprises this chapter.
§9058c. Emergency rental assistance
(a) Funding
(1) Appropriation
In addition to amounts otherwise available, there is appropriated to the Secretary of the Treasury for fiscal year 2021, out of any money in the Treasury not otherwise appropriated, $21,550,000,000, to remain available until September 30, 2027, for making payments to eligible grantees under this section—
(2) Reservation of funds
Of the amount appropriated under paragraph (1), the Secretary shall reserve—
(A) $305,000,000 for making payments under this section to the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa;
(B) $30,000,000 for costs of the Secretary for the administration of emergency rental assistance programs and technical assistance to recipients of any grants made by the Secretary to provide financial and other assistance to renters;
(C) $3,000,000 for administrative expenses of the Inspector General relating to oversight of funds provided in this section; and
(D) $2,500,000,000 for payments to high-need grantees as provided in this section.
(b) Allocation of funds to eligible grantees
(1) Allocation for States and units of local government
(A) In general
The amount appropriated under paragraph (1) of subsection (a) that remains after the application of paragraph (2) of such subsection shall be allocated to eligible grantees described in subparagraphs (A) and (B) of subsection (f)(1) in the same manner as the amount appropriated under
(i) without regard to clause (i) of paragraph (1)(A);
(ii) by deeming the amount appropriated under paragraph (1) of subsection (a) of this Act 1 that remains after the application of paragraph (2) of such subsection to be the amount deemed to apply for purposes of applying clause (ii) of
(iii) by substituting "$152,000,000" for "$200,000,000" each place such term appears;
(iv) in subclause (I) of such
(v) in subclause (II) of such
(B) Pro rata adjustment
The Secretary shall make pro rata adjustments in the amounts of the allocations determined under subparagraph (A) of this paragraph for entities described in such subparagraph as necessary to ensure that the total amount of allocations made pursuant to such subparagraph does not exceed the remainder appropriated amount described in such subparagraph.
(2) Allocations for territories
The amount reserved under subsection (a)(2)(A) shall be allocated to eligible grantees described in subsection (f)(1)(C) in the same manner as the amount appropriated under
(A) in subparagraph (A), by inserting "of
(B) in clause (i) of subparagraph (B), by substituting "the amount equal to 0.3 percent of the amount appropriated under subsection (a)(1)" with "the amount equal to 0.3 percent of the amount appropriated under subsection (a)(1) of
(3) High-need grantees
The Secretary shall allocate funds reserved under subsection (a)(2)(D) to eligible grantees with a high need for assistance under this section, with the number of very low-income renter households paying more than 50 percent of income on rent or living in substandard or overcrowded conditions, rental market costs, and change in employment since February 2020 used as the factors for allocating funds.
(c) Payment schedule
(1) In general
The Secretary shall pay all eligible grantees not less than 40 percent of each such eligible grantee's total allocation provided under subsection (b) within 60 days of March 11, 2021.
(2) Subsequent payments
The Secretary shall pay to eligible grantees additional amounts in tranches up to the full amount of each such eligible grantee's total allocation in accordance with a procedure established by the Secretary, provided that any such procedure established by the Secretary shall require that an eligible grantee must have obligated not less than 75 percent of the funds already disbursed by the Secretary pursuant to this section prior to disbursement of additional amounts.
(d) Use of funds
(1) In general
An eligible grantee shall only use the funds provided from payments made under this section as follows:
(A) Financial assistance
(i) In general
Subject to clause (ii) of this subparagraph, funds received by an eligible grantee from payments made under this section shall be used to provide financial assistance to eligible households, not to exceed 18 months, including the payment of—
(I) rent;
(II) rental arrears;
(III) utilities and home energy costs;
(IV) utilities and home energy costs arrears; and
(V) other expenses related to housing, as defined by the Secretary.
(ii) Limitation
The aggregate amount of financial assistance an eligible household may receive under this section, when combined with financial assistance provided under
(B) Housing stability services
Not more than 10 percent of funds received by an eligible grantee from payments made under this section may be used to provide case management and other services intended to help keep households stably housed.
(C) Administrative costs
Not more than 15 percent of the total amount paid to an eligible grantee under this section may be used for administrative costs attributable to providing financial assistance, housing stability services, and other affordable rental housing and eviction prevention activities, including for data collection and reporting requirements related to such funds.
(D) Other affordable rental housing and eviction prevention activities
An eligible grantee may use any funds from payments made under this section that are unobligated on October 1, 2022, for purposes in addition to those specified in this paragraph, provided that—
(i) such other purposes are affordable rental housing and eviction prevention purposes, as defined by the Secretary, serving very low-income families (as such term is defined in
(ii) prior to obligating any funds for such purposes, the eligible grantee has obligated not less than 75 percent of the total funds allocated to such eligible grantee in accordance with this section.
(2) Distribution of assistance
Amounts appropriated under subsection (a)(1) of this section shall be subject to the same terms and conditions that apply under paragraph (4) of
(e) Reallocation of funds
(1) In general
Beginning March 31, 2022, the Secretary shall reallocate funds allocated to eligible grantees in accordance with subsection (b) but not yet paid in accordance with subsection (c)(2) according to a procedure established by the Secretary.
(2) Eligibility for reallocated funds
The Secretary shall require an eligible grantee to have obligated 50 percent of the total amount of funds allocated to such eligible grantee under subsection (b) to be eligible to receive funds reallocated under paragraph (1) of this subsection.
(3) Payment of reallocated funds by the Secretary
The Secretary shall pay to each eligible grantee eligible for a payment of reallocated funds described in paragraph (2) of this subsection the amount allocated to such eligible grantee in accordance with the procedure established by the Secretary in accordance with paragraph (1) of this subsection.
(4) Use of reallocated funds
Eligible grantees may use any funds received in accordance with this subsection only for purposes specified in paragraph (1) of subsection (d).
(f) Definitions
In this section:
(1) Eligible grantee
The term "eligible grantee" means any of the following:
(A) The 50 States of the United States and the District of Columbia.
(B) A unit of local government (as defined in paragraph (5)).
(C) The Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa.
(2) Eligible household
The term "eligible household" means a household of 1 or more individuals who are obligated to pay rent on a residential dwelling and with respect to which the eligible grantee involved determines that—
(A) 1 or more individuals within the household has—
(i) qualified for unemployment benefits; or
(ii) experienced a reduction in household income, incurred significant costs, or experienced other financial hardship during or due, directly or indirectly, to the coronavirus pandemic;
(B) 1 or more individuals within the household can demonstrate a risk of experiencing homelessness or housing instability; and
(C) the household is a low-income family (as such term is defined in
(3) Inspector general
The term "Inspector General" means the Inspector General of the Department of the Treasury.
(4) Secretary
The term "Secretary" means the Secretary of the Treasury.
(5) Unit of local government
The term "unit of local government" has the meaning given such term in
(g) Availability
Funds provided to an eligible grantee under a payment made under this section shall remain available through September 30, 2025.
(
Editorial Notes
Codification
Section was enacted as part of the American Rescue Plan Act of 2021, and not as part of the CARES Act which in part comprises this chapter.
Section is comprised of section 3201 of
1 So in original. Probably should be "this section".
2 So in original. A closing parenthesis probably should precede the period.
§9058d. Homeowner Assistance Fund
(a) Appropriation
In addition to amounts otherwise available, there is appropriated to the Secretary of the Treasury for the Homeowner Assistance Fund established under subsection (c) for fiscal year 2021, out of any money in the Treasury not otherwise appropriated, $9,961,000,000, to remain available until September 30, 2025, for qualified expenses that meet the purposes specified under subsection (c) and expenses described in subsection (d)(1).
(b) Definitions
In this section:
(1) Conforming loan limit
The term "conforming loan limit" means the applicable limitation governing the maximum original principal obligation of a mortgage secured by a single-family residence, a mortgage secured by a 2-family residence, a mortgage secured by a 3-family residence, or a mortgage secured by a 4-family residence, as determined and adjusted annually under
(2) Dwelling
The term "dwelling" means any building, structure, or portion thereof which is occupied as, or designed or intended for occupancy as, a residence by one or more individuals.
(3) Eligible entity
The term "eligible entity" means—
(A) a State; or
(B) any entity eligible for payment under subsection (f).
(4) Mortgage
The term "mortgage" means any credit transaction—
(A) that is secured by a mortgage, deed of trust, or other consensual security interest on a principal residence of a borrower that is (i) a 1- to 4-unit dwelling, or (ii) residential real property that includes a 1- to 4-unit dwelling; and
(B) the unpaid principal balance of which was, at the time of origination, not more than the conforming loan limit.
(5) Fund
The term "Fund" means the Homeowner Assistance Fund established under subsection (c).
(6) Secretary
The term "Secretary" means the Secretary of the Treasury.
(7) State
The term "State" means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands.
(c) Establishment of Fund
(1) Establishment; qualified expenses
There is established in the Department of the Treasury a Homeowner Assistance Fund to mitigate financial hardships associated with the coronavirus pandemic by providing such funds as are appropriated by subsection (a) to eligible entities for the purpose of preventing homeowner mortgage delinquencies, defaults, foreclosures, loss of utilities or home energy services, and displacements of homeowners experiencing financial hardship after January 21, 2020, through qualified expenses related to mortgages and housing, which include—
(A) mortgage payment assistance;
(B) financial assistance to allow a homeowner to reinstate a mortgage or to pay other housing related costs related to a period of forbearance, delinquency, or default;
(C) principal reduction;
(D) facilitating interest rate reductions;
(E) payment assistance for—
(i) utilities, including electric, gas, home energy, and water;
(ii) internet service, including broadband internet access service, as defined in section 8.1(b) of title 47, Code of Federal Regulations (or any successor regulation);
(iii) homeowner's insurance, flood insurance, and mortgage insurance; and
(iv) homeowner's association, condominium association fees, or common charges;
(F) reimbursement of funds expended by a State, local government, or designated entity under subsection (f) during the period beginning on January 21, 2020, and ending on the date that the first funds are disbursed by the eligible entity under the Homeowner Assistance Fund, for the purpose of providing housing or utility payment assistance to homeowners or otherwise providing funds to prevent foreclosure or post-foreclosure eviction of a homeowner or prevent mortgage delinquency or loss of housing or utilities as a response to the coronavirus disease (COVID) pandemic; and
(G) any other assistance to promote housing stability for homeowners, including preventing mortgage delinquency, default, foreclosure, post-foreclosure eviction of a homeowner, or the loss of utility or home energy services, as determined by the Secretary.
(2) Targeting
Not less than 60 percent of amounts made to each eligible entity allocated amounts under subsection (d) or (f) shall be used for qualified expenses that assist homeowners having incomes equal to or less than 100 percent of the area median income for their household size or equal to or less than 100 percent of the median income for the United States, as determined by the Secretary of Housing and Urban Development, whichever is greater. The eligible entity shall prioritize remaining funds to socially disadvantaged individuals.
(d) Allocation of Funds
(1) Administration
Of any amounts made available under this section, the Secretary shall reserve—
(A) to the Department of the Treasury, an amount not to exceed $40,000,000 to administer and oversee the Fund, and to provide technical assistance to eligible entities for the creation and implementation of State and tribal programs to administer assistance from the Fund; and
(B) to the Inspector General of the Department of the Treasury, an amount to not exceed $2,600,000 for oversight of the program under this section.
(2) For States
After the application of paragraphs (1), (4), and (5) of this subsection and subject to paragraph (3) of this subsection, the Secretary shall allocate the remaining funds available within the Homeowner Assistance Fund to each State of the United States, the District of Columbia, and the Commonwealth of Puerto Rico based on homeowner need, for such State relative to all States of the United States, the District of Columbia, and the Commonwealth of Puerto Rico, as of March 11, 2021, which is determined by reference to—
(A) the average number of unemployed individuals measured over a period of time not fewer than 3 months and not more than 12 months; and
(B) the total number of mortgagors with—
(i) mortgage payments that are more than 30 days past due; or
(ii) mortgages in foreclosure.
(3) Small State minimum
(A) In general
Each State of the United States, the District of Columbia, and the Commonwealth of Puerto Rico shall receive no less than $50,000,000 for the purposes established in (c) 1.
(B) Pro rata adjustments
The Secretary shall adjust on a pro rata basis the amount of the payments for each State of the United States, the District of Columbia, and the Commonwealth of Puerto Rico determined under this subsection without regard to this subparagraph to the extent necessary to comply with the requirements of subparagraph (A).
(4) Territory set-aside
Notwithstanding any other provision of this section, of the amounts appropriated under subsection (a), the Secretary shall reserve $30,000,000 to be disbursed to Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands based on each such territory's share of the combined total population of all such territories, as determined by the Secretary. For the purposes of this paragraph, population shall be determined based on the most recent year for which data are available from the United States Census Bureau.
(5) Tribal set-aside
The Secretary shall allocate funds to any eligible entity designated under subsection (f) pursuant to the requirements of that subsection.
(e) Distribution of funds to States
(1) In general
The Secretary shall make payments, beginning not later than 45 days after March 11, 2021, from amounts allocated under subsection (d) to eligible entities that have notified the Secretary that they request to receive payment from the Fund and that the eligible entity will use such payments in compliance with this section.
(2) If a State does not request allocated funds by the 45th day after March 11, 2021, such State shall not be eligible for a payment from the Secretary pursuant to this section, and the Secretary shall, by the 180th day after March 11, 2021, reallocate any funds that were not requested by such State among the States that have requested funds by the 45th day after March 11, 2021. For any such reallocation of funds, the Secretary shall adhere to the requirements of subsection (d), except for paragraph (1), to the greatest extent possible, provided that the Secretary shall also take into consideration in determining such reallocation a State's remaining need and a State's record of using payments from the Fund to serve homeowners at disproportionate risk of mortgage default, foreclosure, or displacement, including homeowners having incomes equal to or less than 100 percent of the area median income for their household size or 100 percent of the median income for the United States, as determined by the Secretary of Housing and Urban Development, whichever is greater, and minority homeowners.
(f) Tribal set-aside
(1) Set-aside
Notwithstanding any other provision of this section, of the amounts appropriated under subsection (a), the Secretary shall use 5 percent to make payments to entities that are eligible for payments under clauses (i) and (ii) of
(2) Allocation and payment
The Secretary shall allocate the funds set aside under paragraph (1) using the allocation formulas described in clauses (i) and (ii) of
(3) Adjustment
Allocations provided under this subsection may be further adjusted as provided by
(
Editorial Notes
Codification
Section was enacted as part of the American Rescue Plan Act of 2021, and not as part of the CARES Act which in part comprises this chapter.
1 So in original. Probably should be preceded by "subsection".
§9059. Protection of collective bargaining agreement
(a) In general
Neither the Secretary, nor any other actor, department, or agency of the Federal Government, shall condition the issuance of a loan or loan guarantee under paragraph (1), (2), or (3) of
(b) Period of effect
With respect to an air carrier or eligible business to which the loan or loan guarantee is provided under this part, this section shall be in effect with respect to the air carrier or eligible business beginning on the date on which the air carrier or eligible business is first issued such loan or loan guarantee and ending on the date that is 1 year after the loan or loan guarantee is no longer outstanding.
(
Editorial Notes
References in Text
The Railway Labor Act, referred to in subsec. (a), is act May 20, 1926, ch. 347,
The National Labor Relations Act, referred to in subsec. (a), is act July 5, 1935, ch. 372,
This part, referred to in subsec. (b), was in the original "this subtitle", meaning subtitle A (§§4001–4029) of title IV of div. A of
§9060. Reports
(a) Disclosure of transactions
Not later than 72 hours after any transaction by the Secretary under paragraph (1), (2), or (3) of
(1) a plain-language description of the transaction, including the date of application, date of application approval, and identity of the counterparty;
(2) the amount of the loan or loan guarantee;
(3) the interest rate, conditions, and any other material or financial terms associated with the transaction, if applicable; and
(4) a copy of the relevant and final term sheet, if applicable, and contract or other relevant documentation regarding the transaction.
(b) Reports
(1) To Congress
(A) In general
In addition to such reports as are required under
(i) an overview of actions taken by the Secretary under paragraph (1), (2) or (3) of
(ii) the actual obligation, expenditure, and disbursements of the funds during such period; and
(iii) a detailed financial statement with respect to the exercise of authority under paragraph (1), (2) or (3) of
(I) all loans and loan guarantees made, renewed, or restructured;
(II) all transactions during such period, including the types of parties involved;
(III) the nature of the assets purchased;
(IV) a description of the vehicles established to exercise such authority; and
(V) any or all repayment activity, delinquencies or defaults on loans and loan guarantees issued under paragraph (1), (2) or (3) of
(B) Publication
Not later than 7 days after the date on which the Secretary submits a report under subparagraph (A) to the committees of Congress described in such subparagraph, the Secretary shall publish such report on the website of the Department of the Treasury.
(C) 30-day reports
Every 30 days during such time as a loan or loan guarantee under paragraph (1), (2), or (3) of
(2) Board of Governors
(A) In general
With respect to any program or facility described in paragraph (4) of
(i) not later than 7 days after the Board authorizes a new facility or other financial assistance in accordance with
(ii) once every 30 days with respect to outstanding loans or financial assistance in accordance with
(B) Publication
Not later than 7 days after the Board of Governors of the Federal Reserve System submits a report under subparagraph (A) to the committees of Congress described in subparagraph (A), the Board shall publish on its website such report.
(c) Testimony
The Secretary and the Chairman of the Board of Governors of the Federal Reserve System shall testify, on a semiannual basis, before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives regarding the obligations of the Department of the Treasury and the Federal Reserve System, and transactions entered into, under this Act. This subsection shall have no force or effect after December 31, 2027.
(d) Program descriptions
The Secretary shall post on the website of the Department of the Treasury all criteria, guidelines, eligibility requirements, and application materials for the making of any loan or loan guarantee under paragraph (1), (2), or (3) of
(e) Administrative contracts
Not later than 24 hours after the Secretary enters into a contract in connection with the administration of any loan or loan guarantee authorized to be made under paragraph (1), (2), or (3) of
(f) Government Accountability Office
(1) Study
The Comptroller General of the United States shall conduct a study on the loans, loan guarantees, and other investments provided under
(2) Report
Not later than 9 months after March 27, 2020, and annually thereafter through the year succeeding the last year for which loans, loan guarantees, or other investments made under
(
Editorial Notes
References in Text
This Act, referred to in subsec. (c), probably means subtitle A (§§4001–4029) of title IV of div. A of
Amendments
2022—Subsec. (c).
§9061. Direct appropriation
(a) In general
Notwithstanding any other provision of law, there is appropriated, out of amounts in the Treasury not otherwise appropriated, to the fund established under
(b) Omitted
(c) Clarification
(1) In general
On or after January 1, 2021, any remaining funds made available under
(A) modifications, restructurings, or other amendments of loans, loan guarantees, or other investments in accordance with
(B) exercising any options, warrants, or other investments made prior to January 1, 2021; and
(C) paying costs and administrative expenses as provided in
(2) Deficit reduction
On January 1, 2026, any funds described in paragraph (1) that are remaining shall be transferred to the general fund of the Treasury to be used for deficit reduction.
(
Editorial Notes
References in Text
This part, referred to in subsec. (a), was in the original "this subtitle", meaning subtitle A (§§4001–4029) of title IV of div. A of
Codification
Section is comprised of section 4027 of
§9062. Rule of construction
Nothing in this part shall be construed to allow the Secretary to provide relief to eligible businesses, States, and municipalities except in the form of loans, loan guarantees, and other investments as provided in this part and under terms and conditions that are in the interest of the Federal Government.
(
Editorial Notes
References in Text
This part, referred to in text, was in the original "this subtitle", meaning subtitle A (§§4001–4029) of title IV of div. A of
§9063. Termination of authority
(a) In general
Except as provided in subsection (b), on December 31, 2020, the authority provided under this part to make loans, loan guarantees, or other investments shall terminate.
(b) Outstanding
(1) In general
Except as provided in paragraph (2), any loan or loan guarantee made under paragraph (1), (2), or (3) of
(A) may be modified, restructured, or otherwise amended; and
(B) may not be forgiven.
(2) Duration
The duration of any loan or loan guarantee made under
(c) Federal Reserve programs or facilities
(1) In general
After December 31, 2020, the Board of Governors of the Federal Reserve System and the Federal Reserve banks shall not make any loan, purchase any obligation, asset, security, or other interest, or make any extension of credit through any program or facility established under
(2) No modification
After December 31, 2020, the Board of Governors of the Federal Reserve System and the Federal Reserve banks—
(A) shall not modify the terms and conditions of any program or facility established under
(B) may modify or restructure a loan, obligation, asset, security, other interest, or extension of credit made or purchased through any such program or facility provided that—
(i) the loan, obligation, asset, security, other interest, or extension of credit is an eligible asset or for an eligible business, including an eligible nonprofit organization, each as defined by such program or facility; and
(ii) the modification or restructuring relates to an eligible asset or single and specific eligible business, including an eligible nonprofit organization, each as defined by such program or facility; and
(iii) the modification or restructuring is necessary to minimize costs to taxpayers that could arise from a default on the loan, obligation, asset, security, other interest, or extension of credit.
(3) Use of funds
(A) In general
Except as provided in subparagraph (B), the Secretary is permitted to use the fund established under
(B) Exception
The fund established under
(
Editorial Notes
References in Text
This part, referred to in subsec. (a), was in the original "this subtitle", meaning subtitle A (§§4001–4029) of title IV of div. A of
Amendments
2020—Subsec. (a).
Subsec. (b)(1).
Subsec. (c).