SEC. 257. ADMINISTRATIVE FEES.
(a) In General- In addition to fees that may be collected under section 254(e), the chief executive officer shall establish and collect fees from eligible funding recipients with respect to loans and loan guarantees under this Act that--
(1) are sufficient to cover all or a portion of the administrative costs to the Federal Government for the operations of AIFA, including the costs of expert firms, including counsel in the field of municipal and project finance, and financial advisors to assist with underwriting, credit analysis, or other independent reviews, as appropriate;
(2) may be in the form of an application or transaction fee, or other form established by the CEO; and
(3) may be based on the risk premium associated with the loan or loan guarantee, taking into consideration--
(A) the price of United States Treasury obligations of a similar maturity;
(B) prevailing market conditions;
(C) the ability of the infrastructure project to support the loan or loan guarantee; and
(D) the total amount of the loan or loan guarantee;
(b) Availability of Amounts- Amounts collected under subsections (a)(1), (a)(2)(a)(3) shall be available without further action; provided further, that the source of fees paid under this section shall not be a loan or debt obligation guaranteed by the Federal Government.
The bank expects to maintain its administrative cost with fees. The amount of the fees are set according to ability to AFFORD the payment of the fees as well as assessments of market conditions, cost of the project and the price of Treasury bonds. I would imagine the fees also includes the interest on the loans. But, the bill goes on to say the operation of the AIFA has to be as efficient as is reasonable and then there is an initial funding that requires a single payment of the US Treasury to AIFA of $10 billion.
SEC. 259. FUNDING.
There is hereby appropriated to AIFA to carry out this Act, for the cost of direct loans and loan guarantees subject to the limitations under Section 253, and for administrative costs, $10,000,000,000, to remain available until expended; Provided, That such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Federal Credit Reform Act of 1990, as amended; Provided further, that of this amount, not more than $25,000,000 for each of fiscal years 2012 through 2013, and not more than $50,000,000 for fiscal year 2014 may be used for administrative costs of AIFA; provided further, that not more than 5 percent of such amount shall be used to offset subsidy costs associated with rural projects. Amounts authorized shall be available without further action.
The initial $10 billion is part of the cost included in the cost of the American Jobs Act. It is not in addition to any other debt of the federal government.
Cited Law:
Federal Credit Reform Act
Below is more of the tax changes included as a benefit in this bill.
PART IV--EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX TREATMENT FOR CERTAIN TAX-EXEMPT BONDS
SEC. 260. EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX TREATMENT FOR CERTAIN TAX-EXEMPT BONDS.
It is extended until 2013 and is retroactive to the beginning of 2011.
(c) Effective Date- The amendments made by this section shall apply to obligations issued after December 31, 2010.
I believe this is the IRS Code that is effected by this provision. I hate IRS Code.
...such bonds will not be treated as private activity bonds under § 57(a)(5)(C)(i). (click here)
Section 57(a)(5)(C)(vi) provides: (I) for purposes of § 57(a)(5)(C)(i), the term “private activity bond” shall not include any bond issued after December 31, 2008, and before January 1, 2011; (II) for purposes of § 57(a)(5)(C)(vi)(I), a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond); and (III)
§ 57(a)(5)(C)(vi)(II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.
Section 56(g)(4)(B)(iv) provides: (I) § 56(g)(4)(B)(i) shall not apply in the case of any interest on a bond issued after December 31, 2008, and before January 1, 2011; (II) for purposes of § 56(g)(4)(B)(iv)(I), a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond); and (III) § 56(g)(4)(B)(iv)(II)
The above reference also explains the law if one cares to read it. Below is continuing with the American Jobs Act.
SUBTITLE G – PROJECT REBUILD
SEC. 261. PROJECT REBUILD
(a) Direct Appropriations.— There is appropriated, out of any money in the Treasury not otherwise appropriated, $15,000,000,000, to remain available until September 30, 2014, for assistance to eligible entities including States and units of general local government (as such terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)), and qualified nonprofit organizations, businesses or consortia of eligible entities for the redevelopment of abandoned and foreclosed-upon properties and for the stabilization of affected neighborhoods.
Cited Law:
42 U.S.C. § 5302 : US Code - Section 5302: General provisions (click here)
There is a funding code that is probably already developed by The Secretary of Housing and Urban Development to distribute two-thirds of the monies to states and local municipalities.
(3) FORMULA CRITERIA.— The Secretary may establish a minimum grant size, and the funding formula required under paragraph (1) shall ensure that any amounts appropriated or otherwise made available under this section are allocated to States and units of general local government with the greatest need, as such need is determined in the discretion of the Secretary based on—
(A) the number and percentage of home foreclosures in each State or unit of general local government;
(B) the number and percentage of homes in default or delinquency in each State or unit of general local government; and
(C) other factors such as established program designs, grantee capacity and performance, number and percentage of commercial foreclosures, overall economic conditions, and other market needs data, as determined by the Secretary.
The formula will 'weight' each of the designation above and seek to prioritize the distribution of the monies in this provision. This is done to prevent politics from prevailing and making sure those cities and states in greatest need are served well.
Non-profits are listed as recipients of these monies because some housing projects are non-profits. An example is below: This is only one, there are others.
Non-Profit Housing Association of Northern California (click here)
The bill continues to read.
(D) The Secretary shall publish competition criteria for any grants awarded under this heading not later than 60 days after appropriation of funds, and applications shall be due to the Secretary within 120 days.
(c) Use of Funds.—
(1) OBLIGATION and EXPENDITURE.— The Secretary shall obligate all funding within 150 days of enactment of this Act....
(2) PRIORITIES
(A) JOB CREATION. Each grantee or eligible entity shall describe how its proposed use of funds will prioritize job creation, and secondly, will address goals to stabilize neighborhoods, reverse vacancy, or increase or stabilize residential and commercial property values.
The Republicans act most of the time as if there still isn't a CONTINUING housing crisis from the profiteering that took place by Wall Street under the past administration and ended in the collapse of the American Dream. This President and his administration has continually sought answers for stabilizing the housing crisis and thus stabilizing neighborhoods because local economies, THE SUPPOSED SMALL BUSINESSES the Republicans are always pleading for, are based in local neighborhoods. If the housing crisis isn't stabilized and local economies, including tax bases, continue to be in fluctuation; there can be no economic recovery. Even if this were nothing more than an effort to return profitability to Wall Street, which it is not, their best interest is to work with communities to stabilize and create jobs so they can continue to profit. But, we all know there is absolutely no interest in Wall Street to do same. They rather wallow in their pile of money for time unending.
It is huge dynamic issues like this that always tell me Republicans are about rhetorical lies rather than substantive law. If they knew at all how this economy needs to be rescued there would be no obstructionism, but, only a profound effort to return the USA to a functional tax base and upholding the American Dream. The McConnell focus of "Making President Obama a one term President" has absolutely NOTHING to do with protecting the people of the USA or stabilizing its economy.
With the inauguration of President Obama anyone elected to the US Congress should be rallying around this President to insure the return of the USA economy and the American Dream as soon as possible. That has not happened and the country shows it.
(3) ELIGIBLE USES.— Amounts made available under this section may be used to—
(A) establish financing mechanisms for the purchase and redevelopment of abandoned and foreclosed-upon properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers;
(B) purchase and rehabilitate properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such properties;
(C) establish and operate land banks for properties that have been abandoned or foreclosed upon;
(D) demolish blighted structures;
(E) redevelop abandoned, foreclosed, demolished, or vacant properties; and
(F) engage in other activities, as determined by the Secretary through notice, that are consistent with the goals of creating jobs, stabilizing neighborhoods, reversing vacancy reduction,
The provision below insures there will be no purchases made whereby the properties are mortgaged 'under water' and therefor in peril to repeat the process of foreclosure, etc. FAIR MARKET VALUE TODAY. NOT 2006.
OR.
What is owed on it, above today's Fair Market Value.
(d) Limitations.—
(1) ON PURCHASES.— Any purchase of a property under this section shall be at a price not to exceed its current market value, taking into account its current condition.
(4) ON DEMOLITION OF PUBLIC HOUSING. – Public housing, as defined at section 3(b)(6) of the , may not be demolished with funds under this section.
Cited Law:
SEC. 3 (click here)
(b) When used in this Act
(6) PUBLIC HOUSING AGENCY.—
The American Jobs Act continues...
(1) IN GENERAL.— Except as otherwise provided by this section, amounts appropriated, revenues generated, or amounts otherwise made available to eligible entities under this section shall be treated as though such funds were funds under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.).
(2) NO MATCH- No matching funds shall be required in order for an eligible entity to receive any amounts under this section.
(3) TENANT PROTECTIONS.—An eligible entity...
Cited Law:
Community Development Block Grant (42 U.S.C. 5301 et. seq.)
Community Development Block Grant Program - CDBG (click here)
The Community Development Block Grant (CDBG) program is a flexible program that provides communities with resources to address a wide range of unique community development needs. Beginning in 1974, the CDBG program is one of the longest continuously run programs at HUD. The CDBG program provides annual grants on a formula basis to 1209 general units of local government and States.
(4) VICINITY HIRING. — An eligible entity receiving a grant under this section shall comply with section 1497(a)(8) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ().
Cited Law:
Sec. 1497. Additional assistance for Neighborhood Stabilization Program. (click here)
(a) IN GENERAL.—Effective October 1, 2010, out of funds in the Treasury not otherwise appropriated, there is hereby made available to the Secretary of Housing and Urban Development $1,000,000,000, and the Secretary of Housing and Urban Development shall use such amounts for assistance to States and units of general local govern-ment for the redevelopment of abandoned and foreclosed homes, in accordance with the same provisions applicable under the second undesignated paragraph under the heading ‘‘Community Planning and Development—Community Development Fund’’ in title XII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 217) to amounts made available under such second undesignated paragraph, except as follows:
(8) An eligible entity receiving a grant under this section shall, to the maximum extent feasible, provide for the hiring of employees who reside in the vicinity, as such term is defined by the Secretary, of projects funded under this section or contract with small businesses that are owned and operated by persons residing in the vicinity of such projects.
(B) RECURRENT REQUIREMENT.— The Secretary shall, by rule or order, ensure, to the maximum extent practicable and for the longest feasible term, that the sale, rental, or redevelopment of abandoned and foreclosed-upon homes and residential properties under this section remain affordable to individuals or families described in subparagraph (A).
There is a national distribution requirement of which states receive not less than $20 million based on formula.
(h) LIMITATION ON USE OF FUNDS WITH RESPECT TO EMINENT DOMAIN. No State or unit of general local government may use any amounts received pursuant to this section to fund any project that seeks to use the power of eminent domain, unless eminent domain is employed only for a public use, which shall not be construed to include economic development that primarily benefits private entities.
Got to love this part. Oh, no crime never takes place under federal statue. Sure it doesn't. Let's all make the same mistakes over again! And in some instances after the collapse of 2008 that might be true given the provision set up to protect the criminals that were the recipients of $700 billion.
(i) LIMITATION ON DISTRIBUTION OF FUNDS.
(1) IN GENERAL. — None of the funds made available under this title or title IV shall be distributed to—
(A) an organization which has been indicted for a violation under Federal law relating to an election for Federal office; or
(B) an organization which employs applicable individuals.
(2) APPLICABLE INDIVIDUALS DEFINED.- In this section, the...
Ten percent of any grant can be used for maintenance of eligible properties.
(k) JOB CREATION. If a grantee chooses to use funds to create jobs by establishing and operating a program to maintain eligible neighborhood properties, not more than 10 percent of any grant may be used for that purpose.
The provision below will also create jobs. Jobs that will support the efforts of this section of the bill. They will probably be temporary federal employees, but, they may be employed until 2016, which I don't believe one can consider lightly when reflecting on the economy. Working in a federal capacity is a nice thing on a resume.
(l) PROGRAM SUPPORT AND CAPACITY BUILDING. The Secretary may use up to 0.75 percent of the funds appropriated for capacity building of and support for eligible entities and grantees undertaking neighborhood stabilization programs, staffing, training, technical assistance, technology, monitoring, travel, enforcement, research and evaluation activities.
(1) Funds set aside for the purposes of this subparagraph shall remain available until September 30, 2016;
(m) ENFORCEMENT AND PREVENTION OF FRAUD AND ABUSE. The Secretary shall establish and implement procedures to prevent fraud and abuse of funds under this section, and shall impose a requirement that grantees have an internal auditor to continuously monitor grantee performance to prevent fraud, waste, and abuse....
The reporting is conducted quarterly to the Secretary of Housing and Urban Development. It is nice work if you can get it.
(n) The Secretary of Housing and Urban Development shall to the extent feasible conform policies and procedures for grants made under this section to the policies and practices already in place for the grants made under ; ; or Section 1497 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Cited Law:
HOUSING AND ECONOMIC RECOVERY ACT OF 2008 (click here)
SEC. 2301. EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES.
American Recovery and Reinvestment Act of 2009/Division A/Title XII
SEC. 1497. ADDITIONAL ASSISTANCE FOR NEIGHBORHOOD STABILIZATION PROGRAM (click here - at the bottom of the PDF)
That is the bottom of Page 62. The next section tomorrow and until the bill passes the Senate and the House is:
SUBTITLE H – NATIONAL WIRELESS INITIATIVE
end
