H.R. 4266 — Housing for US Act

This section directs the transfer of any amounts received by the federal government from the release of the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) to a trust fund for exclusive use under section 3 for 10 years after the transfer date. After 10 years, it requires states to repay capitalization loans described in section 3 to the Treasury General Fund solely for deficit reduction.

This section establishes a revolving loan fund program administered by the Secretary of Housing and Urban Development (HUD) under which the Secretary makes capitalization loans to states (i.e., the 50 states, District of Columbia, and territories), from amounts authorized under section 2, for states to establish state housing revolving loan funds that provide loans or loan guarantees to eligible entities (i.e., local governments or nonprofits) for eligible projects. Funds are allotted to states based on (1) the share of need for increased affordable housing supply for families of different sizes between 80 and 165 percent of area median income, (2) inadequate or substandard housing supply, (3) housing production costs (with increased funds for high-cost states), and (4) other factors determined by the Secretary; states must contribute non-Federal matching funds of at least 20 percent of the capitalization loan amount. Amounts in state loan funds, including repayments and interest, must be used solely to provide below-market-rate loans (including at zero percent interest) or guarantees to eligible entities for (1) new construction or rehabilitation of homeownership or rental housing for middle-income persons and families, (2) related activities such as real property acquisition, site improvements, conversions, or demolition, (3) financing or relocation costs, or (4) reasonable administrative and planning costs. Ineligible uses include modernizing public housing, tenant-based Section 8 assistance, ongoing rental operations, paying back taxes or fees, or serving as non-Federal matching funds for other federal programs. Loans require principal and interest payments to commence no later than 18 months after project completion and full amortization no later than 30 years thereafter (with possible state-provided extended terms). State loan funds must be maintained in perpetuity, with excess amounts invested in interest-bearing obligations, and states must adhere to specified accounting, audit, and fiscal standards; no assistance is available to eligible entities lacking technical, managerial, or financial capability.