text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Neighborhood Rescue and 
  Stabilization Act of 2008''.
  
  SEC. 2. EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
                FORECLOSED HOMES.
  
      (a) Direct Appropriations.--There is authorized to be appropriated 
  for fiscal year 2008, $10,000,000,000, to remain available until 
  expended, for assistance to States, qualified metropolitan cities, and 
  units of general local government for the redevelopment of abandoned 
  and foreclosed homes.
      (b) Allocation of Appropriated Amounts.--
              (1) Allocation by hud for states.--Any amounts appropriated 
          or otherwise made available pursuant to this section shall be 
          allocated by the Secretary of Housing and Urban Development 
          among the States, and provided to the States, in amounts 
          determined according to the funding formula established 
          pursuant to paragraph (2).
              (2) Formula for allocation among states.--
                      (A) Establishment.--Not later than 60 days after 
                  the date of the enactment of this Act, the Secretary 
                  shall establish a funding formula under this paragraph.
                      (B) Criteria.--The funding formula under this 
                  paragraph shall provide that, of the aggregate amount 
                  appropriated or otherwise made available pursuant to 
                  this section, the amount allocated for each State shall 
                  be the amount that bears the same ratio to such 
                  aggregate amount as the number of foreclosures on 
                  mortgages for homes occurring in such State during the 
                  most recently completed two calendar quarters for which 
                  such information is available, as determined by the 
                  Secretary, bears to the aggregate number of such 
                  foreclosures occurring in all States during such 
                  calendar quarters, as such amount is adjusted to 
                  account for differences in the States in--
                              (i) the number and percentage of homes in a 
                          State that are financed by a subprime mortgage 
                          related loan;
                              (ii) the number and percentage of homes in 
                          a State in default or delinquency; and
                              (iii) the median home price in a State.
              (3) Distribution.--Amounts appropriated or otherwise made 
          available under this section shall be distributed to the States 
          according to the funding formula required under paragraph (2) 
          not later than 30 days after the establishment of such formula.
              (4) Allocation by states for qualified metropolitan 
          cities.--
                      (A) Requirement to allocate.--Of any amounts 
                  allocated pursuant to this subsection for a State, such 
                  State shall allocate for each qualified metropolitan 
                  city located in such State an amount, as determined 
                  according to the funding formula established pursuant 
                  to subparagraph (B).
                      (B) Formula for allocation among states.--
                              (i) Establishment.--Not later than 60 days 
                          after the date of the enactment of this Act, 
                          the Secretary shall establish a funding formula 
                          under this subparagraph.
                              (ii) Criteria.--The funding formula under 
                          this subparagraph shall provide that, of the 
                          aggregate amount allocated pursuant to this 
                          subsection for a State, the amount allocated 
                          for a qualified metropolitan city located in 
                          the State shall be the amount that bears the 
                          same ratio to such aggregate amount as the 
                          number of foreclosures on mortgages for homes 
                          occurring in such qualified metropolitan city 
                          during the most recently completed two calendar 
                          quarters for which such information is 
                          available, as determined by the Secretary, 
                          bears to the aggregate number of such 
                          foreclosures occurring in such State during 
                          such calendar quarters, as such amount is 
                          adjusted to account for differences between the 
                          qualified metropolitan city in and State in--
                                      (I) the percentage of homes that 
                                  are financed by a subprime mortgage 
                                  related loan;
                                      (II) the percentage of homes in 
                                  default or delinquency; and
                                      (III) the median home price.
              (5) Other amounts.--Any amounts allocated for a State that 
          are not allocated for a qualified metropolitan city pursuant to 
          paragraph (4) may be used for any units of general local 
          government in the State.
      (c) Use of Funds.--
              (1) In general.--Any State, qualified metropolitan city, or 
          unit of general local government that receives amounts pursuant 
          to this section shall, not later than 18 months after the 
          receipt of such amounts, use such amounts to redevelop 
          abandoned and foreclosed homes.
              (2) Priority.--Any State, qualified metropolitan city, or 
          unit of general local government that receives amounts pursuant 
          to this section shall in distributing such amounts give 
          priority emphasis and consideration to those metropolitan 
          areas, metropolitan cities, urban areas, rural areas, low- and 
          moderate-income areas, and other areas with the greatest need, 
          including those--
                      (A) with the greatest percentage of home 
                  foreclosures;
                      (B) with the highest percentage of homes financed 
                  by a subprime mortgage related loan; or
                      (C) identified by the State, qualified metropolitan 
                  city, or unit of general local government as likely to 
                  face a significant rise in the rate of home 
                  foreclosures.
              (3) Eligible uses.--
                      (A) In general.--Amounts made available under this 
                  section may be used only as follows:
                              (i) Financial assistance through 
                          institutions and organizations.--To make 
                          grants, loans, and other financing mechanisms 
                          to community development financial institutions 
                          (as such term is defined under section 103(5) 
                          of the Community Development Banking and 
                          Financial Institutions Act of 1994 (12 U.S.C. 
                          4702(5))), national intermediaries, and 
                          nonprofit housing or community development 
                          organizations and others to purchase and 
                          rehabilitate homes that have been abandoned or 
                          foreclosed upon, in order to sell, rent, or 
                          redevelop such homes.
                              (ii) Financing mechanisms for 
                          redevelopment.--To establish financing 
                          mechanisms for redevelopment of foreclosed upon 
                          homes, including such mechanisms as soft-
                          seconds, loan loss reserves, and shared-equity 
                          loans for low- and moderate-income homebuyers.
                              (iii) Purchase and rehabilitation for sale 
                          or rental.--To purchase and rehabilitate homes 
                          that have been abandoned or foreclosed upon, in 
                          order to sell, rent, or redevelop such homes.
                              (iv) Land banks.--To establish land banks 
                          for homes that have been foreclosed upon.
                              (v) Demolition.--To demolish blighted 
                          structures.
                              (vi) Project-based rental assistance.--To 
                          provide rental assistance for low- and 
                          moderate-income persons (as such term is 
                          defined in section 102 of the Housing and 
                          Community Development Act of 1974 (42 U.S.C. 
                          5302)) that is attached to single family and 
                          multifamily residences.
                              (vii) Project operating reserves.--To 
                          provide grants for use to cover the loss of 
                          rental assistance or in conjunction with a 
                          project loan that is attached to single family 
                          and multifamily residences.
                              (viii) Project operating subsidies.--To 
                          fund project operating accounts used to cover 
                          net operating income shortfalls for single and 
                          multifamily residences. Eligible operating 
                          costs shall include costs of management, taxes, 
                          handling, insurance, and other related costs.
                              (ix) CDBG-eligible activities.--To carry 
                          out any activities that, under section 105 of 
                          the Housing and Community Development Act of 
                          1974 (42 U.S.C. 5305), are eligible to be 
                          carried out with amounts provided under title I 
                          of such Act.
                      (B) Limitation.--Any funds used under this section 
                  for the purchase of an abandoned or foreclosed upon 
                  home shall be at a cost equal to or less than the 
                  appraised value of the home based on the most up-to-
                  date appraisal, as such appraisal is defined by the 
                  Secretary.
      (d) Rule of Construction.--Amounts appropriated or otherwise made 
  available to States, qualified metropolitan cities, and units of 
  general local government under this section shall be treated as though 
  such funds were community development block grant funds under title I 
  of the Housing and Community Development Act of 1974.
      (e) Waiver Authority.--
              (1) In general.--In administering any amounts appropriated 
          or otherwise made available under this section, the Secretary 
          may waive, or specify alternative requirements for, any 
          provision of any statute or regulation that the Secretary 
          administers (but not including the requirements of this 
          section) in connection with the obligation by the Secretary or 
          the use by the recipient of such funds (except for requirements 
          related to fair housing, nondiscrimination, labor standards, 
          and the environment), in order to expedite or facilitate the 
          use of such funds.
              (2) Low and moderate income requirement.--Notwithstanding 
          the authority of the Secretary under paragraph (1)--
                      (A) all of the funds appropriated or otherwise made 
                  available under this section shall be used with respect 
                  to persons whose incomes do not exceed 120 percent of 
                  area median income; and
                      (B) not less than 25 percent of the funds made 
                  available under this section to any State, qualified 
                  metropolitan city, or unit of general local government 
                  shall be used with respect to persons whose incomes do 
                  not exceed 30 percent of the area median income.
      (f) Definitions.--For purposes of this Act, the following 
  definitions shall apply:
              (1) Qualified metropolitan city.--The term ``qualified 
          metropolitan city'' means a metropolitan city, as such term is 
          defined in section 102 of the Housing and Community Development 
          Act of 1974 (42 U.S.C. 5302), that has a population of not less 
          than 200,000, as determined by the 2000 decennial census.
              (2) Secretary.--The term ``Secretary'' means the Secretary 
          of Housing and Urban Development.
              (3) State; unit of general local government.--The terms 
          ``State'' and ``unit of general local government'' have the 
          meanings given such terms in section 102 of the Housing and 
          Community Development Act of 1974 (42 U.S.C. 5302).
      (g) Emergency Designation.--The amounts appropriated under this 
  title are designated as an emergency requirement and necessary to meet 
  emergency needs pursuant to section 204 of S . Con. Res. 21 (110th 
  Congress), the concurrent resolution on the budget for fiscal year 
  2008.
target: Neighborhood Rescue and Stabilization Act of 2008 - Authorizes for FY2008 appropriations for assistance to states and local governmental units for the redevelopment of abandoned and foreclosed homes.
  
  Requires the Secretary of Housing and Urban Development (HUD) to allocate the funds among the states according to a funding formula reflecting the ratio that home mortgage foreclosures occurring in a state bears to the aggregate number of such foreclosures occurring in all states. Requires states to allocate funds to qualified metropolitan cities according to a similar formula.
  
  Requires states and local governmental units to give priority to those metropolitan areas, metropolitan cities, urban areas, rural areas, low- and moderate-income areas, and other areas with the greatest need, including those: (1) with the greatest percentage of home foreclosures; (2) with the highest percentage of homes financed by a subprime mortgage related loan; or (3) identified as likely to face a significant rise in the rate of home foreclosures.
  
  Cites eligible uses and redevelopment financing mechanisms.
  
  Sets forth low- and moderate-income requirements for the use of all funds made available under this Act.
feat_title: To provide economic stimulus through emergency community development block grant assistance for the redevelopment of abandoned and foreclosed homes.