Pub. L. 111-5, div. A, tit. X, sec. 1001

Sec. 1001. (a) Temporary Expansion of Homeowners Assistance Program to Respond to Mortgage Foreclosure and Credit Crisis. Section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966 (42 U.S.C. 3374) is amended—(1) in subsection (a)—(A) by redesignating paragraphs (1), (2), and (3) as clauses (i), (ii), and (iii), respectively, and indenting such subparagraphs, as so redesignated, 6 ems from the left margin;(B) by striking “Notwithstanding any other provision of law” and inserting the following:“(1) Acquisition of property at or near military installations that have been ordered to be closed.—Notwithstanding any other provision of law”;(C) by striking “if he determines” and inserting “if—“(A) the Secretary determines—”;(D) in clause (iii), as redesignated by subparagraph (A), by striking the period at the end and inserting “; or”; and(E) by adding at the end the following:“(B) the Secretary determines—“(i) that the conditions in clauses (i) and (ii) of subparagraph (A) have been met;“(ii) that the closing or realignment of the base or installation resulted from a realignment or closure carried out under the 2005 round of defense base closure and realignment under the Defense Base Closure and Realignment Act of 1990 (part XXIX of Public Law 101–510; 10 U.S.C. 2687 note);“(iii) that the property was purchased by the owner before July 1, 2006;“(iv) that the property was sold by the owner between July 1, 2006, and September 30, 2012, or an earlier end date designated by the Secretary;123 STAT. 195“(v) that the property is the primary residence of the owner; and“(vi) that the owner has not previously received benefit payments authorized under this subsection.“(2) Homeowner assistance for wounded members of the armed forces, department of defense and united states coast guard civilian employees, and their spouses.—Notwithstanding any other provision of law, the Secretary of Defense is authorized to acquire title to, hold, manage, and dispose of, or, in lieu thereof, to reimburse for certain losses upon private sale of, or foreclosure against, any property improved with a one- or two-family dwelling which was at the time of the relevant wound, injury, or illness, the primary residence of—“(A) any member of the Armed Forces in medical transition who—“(i) incurred a wound, injury, or illness in the line of duty during a deployment in support of the Armed Forces;“(ii) is disabled to a degree of 30 percent or more as a result of such wound, injury, or illness, as determined by the Secretary of Defense; and“(iii) is reassigned in furtherance of medical treatment or rehabilitation, or due to medical retirement in connection with such disability;“(B) any civilian employee of the Department of Defense or the United States Coast Guard who—“(i) was wounded, injured, or became ill in the performance of his or her duties during a forward deployment occurring on or after September 11, 2001, in support of the Armed Forces; and“(ii) is reassigned in furtherance of medical treatment, rehabilitation, or due to medical retirement resulting from the sustained disability; or“(C) the spouse of a member of the Armed Forces or a civilian employee of the Department of Defense or the United States Coast Guard if—“(i) the member or employee was killed in the line of duty or in the performance of his or her duties during a deployment on or after September 11, 2001, in support of the Armed Forces or died from a wound, injury, or illness incurred in the line of duty during such a deployment; and“(ii) the spouse relocates from such residence within 2 years after the death of such member or employee.“(3) Temporary homeowner assistance for members of the armed forces permanently reassigned during specified mortgage crisis.—Notwithstanding any other provision of law, the Secretary of Defense is authorized to acquire title to, hold, manage, and dispose of, or, in lieu thereof, to reimburse for certain losses upon private sale of, or foreclosure against, any property improved with a one- or two-family dwelling situated at or near a military base or installation, if the Secretary determines—“(A) that the owner is a member of the Armed Forces serving on permanent assignment;123 STAT. 196“(B) that the owner is permanently reassigned by order of the United States Government to a duty station or home port outside a 50-mile radius of the base or installation;“(C) that the reassignment was ordered between February 1, 2006, and September 30, 2012, or an earlier end date designated by the Secretary;“(D) that the property was purchased by the owner before July 1, 2006;“(E) that the property was sold by the owner between July 1, 2006, and September 30, 2012, or an earlier end date designated by the Secretary;“(F) that the property is the primary residence of the owner; and“(G) that the owner has not previously received benefit payments authorized under this subsection.”;(2) in subsection (b), by striking “this section” each place it appears and inserting “subsection (a)(1)”;(3) in subsection (c)—(A) by striking “Such persons” and inserting the following:“(1) Homeowner assistance related to closed military installations.—“(A) In general.—Such persons”;(B) by striking “set forth above shall elect either (1) to receive” and inserting the following: “set forth in subsection (a)(1) shall elect either—“(i) to receive”;(C) by striking “difference between (A) 95 per centum” and all that follows through “(B) the fair market value” and inserting the following: “difference between—“(I) 95 per centum of the fair market value of their property (as such value is determined by the Secretary of Defense) prior to public announcement of intention to close all or part of the military base or installation; and“(II) the fair market value”;(D) by striking “time of the sale, or (2) to receive” and inserting the following: “time of the sale; or“(ii) to receive”;(E) by striking “outstanding mortgages. The Secretary may also pay a person who elects to receive a cash payment under clause (1) of the preceding sentence an amount” and inserting “outstanding mortgages.“(B) Reimbursement of expenses.—The Secretary may also pay a person who elects to receive a cash payment under subparagraph (A) an amount”; and(F) by striking “best interest of the Federal Government. Cash payment” and inserting the following: “best interest of the United States.“(2) Homeowner assistance for wounded individuals and their spouses.—“(A) In general.—Persons eligible under the criteria set forth in subsection (a)(2) may elect either—“(i) to receive a cash payment as compensation for losses which may be or have been sustained in 123 STAT. 197 a private sale, in an amount not to exceed the difference between—“(I) 95 per centum of prior fair market value of their property (as such value is determined by the Secretary of Defense); and“(II) the fair market value of such property (as such value is determined by the Secretary of Defense) at the time of sale; or“(ii) to receive, as purchase price for their property an amount not to exceed 90 per centum of prior fair market value as such value is determined by the Secretary of Defense, or the amount of the outstanding mortgages.“(B) Determination of benefits.—The Secretary may also pay a person who elects to receive a cash payment under subparagraph (A) an amount that the Secretary determines appropriate to reimburse the person for the costs incurred by the person in the sale of the property if the Secretary determines that such payment will benefit the person and is in the best interest of the United States.“(3) Homeowner assistance for permanently reassigned individuals.—“(A) In general.—Persons eligible under the criteria set forth in subsection (a)(3) may elect either—“(i) to receive a cash payment as compensation for losses which may be or have been sustained in a private sale, in an amount not to exceed the difference between—“(I) 95 per centum of prior fair market value of their property (as such value is determined by the Secretary of Defense); and“(II) the fair market value of such property (as such value is determined by the Secretary of Defense) at the time of sale; or“(ii) to receive, as purchase price for their property an amount not to exceed 90 per centum of prior fair market value as such value is determined by the Secretary of Defense, or the amount of the outstanding mortgages.“(B) Determination of benefits.—The Secretary may also pay a person who elects to receive a cash payment under subparagraph (A) an amount that the Secretary determines appropriate to reimburse the person for the costs incurred by the person in the sale of the property if the Secretary determines that such payment will benefit the person and is in the best interest of the United States.“(4) Compensation and limitations related to foreclosures and encumbrances.—Cash payment”;(4) by striking subsection (g);(5) in subsection (l), by striking “(a)(2)” and inserting “(a)(1)(A)(ii)”;(6) in subsection (m), by striking “this section” and inserting “subsection (a)(1)”;(7) in subsection (n)—(A) in paragraph (1), by striking “this section” and inserting “subsection (a)(1)”; and123 STAT. 198(B) in paragraph (2), by striking “this section” and inserting “subsection (a)(1)”;(8) in subsection (o)—(A) in paragraph (1), by striking “this section” and inserting “subsection (a)(1)”;(B) in paragraph (2), by striking “this section” and inserting “subsection (a)(1)”; and(C) by striking paragraph (4); and(9) by adding at the end the following new subsection:“(p) Definitions.—In this section:“(1) the term ‘Armed Forces’ has the meaning given the term ‘armed forces’ in section 101(a) of title 10, United States Code;“(2) the term ‘civilian employee’ has the meaning given the term ‘employee’ in section 2105(a) of title 5, United States Code;“(3) the term ‘medical transition’, in the case of a member of the Armed Forces, means a member who—“(A) is in Medical Holdover status;“(B) is in Active Duty Medical Extension status;“(C) is in Medical Hold status;“(D) is in a status pending an evaluation by a medical evaluation board;“(E) has a complex medical need requiring six or more months of medical treatment; or“(F) is assigned or attached to an Army Warrior Transition Unit, an Air Force Patient Squadron, a Navy Patient Multidisciplinary Care Team, or a Marine Patient Affairs Team/Wounded Warrior Regiment; and“(4) the term ‘nonappropriated fund instrumentality employee’ means a civilian employee who—“(A) is a citizen of the United States; and“(B) is paid from nonappropriated funds of Army and Air Force Exchange Service, Navy Resale and Services Support Office, Marine Corps exchanges, or any other instrumentality of the United States under the jurisdiction of the Armed Forces which is conducted for the comfort, pleasure, contentment, or physical or mental improvement of members of the Armed Forces.”.(b) Clerical Amendment.—Such section is further amended in the section heading by inserting “and certain property owned by members of the Armed Forces, Department of Defense and United States Coast Guard civilian employees, and surviving spouses” after “ordered to be closed”.(c) Authority to Use Appropriated Funds.—Notwithstanding subsection (i) of such section, amounts appropriated or otherwise made available by this title under the heading “Homeowners Assistance Fund” may be used for the Homeowners Assistance Fund established under such section.123 STAT. 199