FY2022 Reconciliation: Title IV, House Financial December 7, 2021
Services Committee Provisions
Maggie McCarty,
On November 19, 2021, the House approved the Build Back Better Act (H.R. 5376), a FY2022
Coordinator
reconciliation measure. Title IV of the bill includes a modified version of the provisions
Specialist in Housing Policy
approved by the House Financial Services Committee in September 2021. These provisions were

developed pursuant to the directives in S.Con.Res. 14, the Concurrent Budget Resolution for
Grant A. Driessen
FY2022.
Specialist in Public Finance

Title IV of H.R. 5376, as approved by the House, would authorize over $156 billion in new
mandatory budget authority for programs and activities within the jurisdiction of the House
Joseph V. Jaroscak
Financial Services Committee, primarily focused on affordable housing. This is roughly half the
Analyst in Economic
amount that was proposed in the committee-reported version. H.R. 5376, as approved by the
Development Policy
House, includes funding for capital investments in existing housing, increasing affordable

housing, and supporting homeownership. The legislation also contains several community and
Diane P. Horn
economic development spending provisions, as well as funding for related administrative
Analyst in Flood Insurance
infrastructure. In some cases, the legislation would provide funding to existing programs, often
and Emergency
with alternate requirements or expanded or altered purposes; in other cases, it would create new
Management
programs.

Katie Jones
Analyst in Housing Policy

Julie M. Lawhorn
Analyst in Economic
Development Policy

Libby Perl
Specialist in Housing Policy

Congressional Research Service

link to page 7 FY2022 Reconciliation: Title IV, House Financial Services Committee Provisions

n November 19, 2021, the House approved the Build Back Better Act (H.R. 5376), a
FY2022 budget reconciliation measure. Title IV of the legislation includes a modified
O version of the provisions approved by the House Financial Services Committee on
September 13 and 14, 2021, and incorporated into H.R. 5376 and reported by the House Budget
Committee (H.Rept. 117-13) on September 27, 2021. These provisions were developed pursuant
to the directives in S.Con.Res. 14, the Concurrent Budget Resolution for FY2022. (For more
information, see CRS Report R46893, S.Con.Res. 14: The Budget Resolution for FY2022.)
This budget resolution and its resulting reconciliation package is one of two legislative initiatives
developed in response to President Biden’s American Jobs Plan infrastructure investment
proposal. The first package—the Infrastructure Investment and Jobs Act—was passed by the
Senate in August 2021, approved by the House on November 5, 2021, and signed into law on
November 15, 2021 (P.L. 117-58). It authorized new spending for a variety of transportation,
energy, and water programs, among others, but included no dedicated funding for affordable
housing. The second package—the Build Back Better Act—is designed to be broader in purpose
and larger in terms of overall new spending than the first, and does include funding for affordable
housing, primarily in Title IV (but also in the tax provisions in Title XIII).1
Title IV of the Build Back Better Act would authorize over $156 billion in new mandatory budget
authority2 for programs and activities within the jurisdiction of the House Financial Services
Committee, primarily focused on affordable housing. This is roughly half the amount of funding
initially proposed by the Financial Services Committee and included in the legislation reported by
the House Budget Committee. It would fund programs and activities administered by the
Department of Housing and Urban Development (HUD), the Department of Agriculture (USDA),
the Department of the Treasury (Treasury), the Federal Emergency Management Agency
(FEMA), and the Department of Commerce (Commerce).
Overview
Title IV of the Build Back Better Act primarily proposes new funding for various affordable
housing-related programs and activities.3 These include funding for capital investments in
existing housing, increasing affordable housing, and supporting homeownership. The legislation
also contains several community and economic development spending provisions, as well as
funding for related administrative infrastructure. In some cases, the legislation provides funding
to existing programs, often with alternate requirements or expanded or altered purposes; in other
cases, it creates new programs.
A brief review of the provisions, grouped into thematic categories, is provided below; a summary
of specific provisions, ordered by section number in the legislation, is provided in Table 1. (For
more information about existing federal affordable housing programs and policies, see CRS
Report RL34591, Overview of Federal Housing Assistance Programs and Policy.)

1 For more information, see CRS Report R46960, Tax Provisions in the Build Back Better Act: Rules Committee Print
117-18.
2 Of the $156.6 billion in total budget authority estimated by the Congressional Budget Office (CBO) to be made
available from FY2022 to FY2031 under Title IV of H.R. 5376, $156.1 billion would be made available in the first year
(FY2022).
3 While the Financial Services Committee has primary jurisdiction over federal housing programs and investments,
other committees have jurisdiction over some aspects of federal housing policy; thus, their reconciliation packages may
also include housing-related provisions. The House Ways and Means Committee has jurisdiction over tax policy,
including housing-related tax provisions such as the Low Income Housing Tax Credit program.
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FY2022 Reconciliation: Title IV, House Financial Services Committee Provisions

Capital Investments in Existing Housing
A number of the provisions contained in Title IV would invest new resources in improving the
physical condition of existing housing, particularly affordable housing or housing occupied by
lower-income individuals and families. This includes a significant increase in funding for capital
grants for public housing (§40001), grants to revitalize distressed multifamily housing (§40007),
and grants to revitalize and preserve rural rental housing (§40008). Additional provisions would
devote funding for identification and remediation of lead-based paint and other health hazards in
housing (§40102) and for energy and water efficiency and related upgrades to existing HUD-
assisted multifamily housing properties (§40006).
Increasing Affordable Housing
Several provisions would aim to increase the amount of available affordable housing, either
through the creation of additional housing units that would be affordable to lower-income
households or through rental assistance to defray the costs of renting existing housing. Funding
provided to multiple programs could be used for the development (or preservation or
rehabilitation) of affordable housing units for rental or homeownership, including the HOME
program (with a set-aside of funding specifically for activities eligible under the Housing Trust
Fund) (§40002); a new Housing Investment Fund (§40003); a new Community Restoration and
Revitalization Fund (§40105); and some prioritization for housing activities under the
Community Development Block Grant program (§40101). In addition, the House-passed bill
would temporarily increase the amount that the Federal Home Loan Banks are annually required
to contribute to their Affordable Housing Program (§40012); this provision was not included in
the committee-reported bill.
Additional funding for capital grants and project-based rental assistance would be provided for
the development of new housing units for persons with disabilities under the existing Section 811
program (§40004) and for persons age 62 and older under the Section 202 program (§40005). The
legislation would also provide funding for new Section 8 project-based rental assistance contracts
to be awarded to owners or developers of affordable multifamily properties (§40010).
Additionally, the bill would provide a significant increase in funding for new Housing Choice
Vouchers (§40009), which subsidize the rents of low-income renters in the private market.
Supporting Homeownership
A number of provisions would provide funding for new programs or initiatives focused on
supporting homeownership. These include funding for down payment and other homebuyer
assistance for first-time, first-generation homebuyers (§40201); funding for a “wealth-building
home loan” program to subsidize certain mortgages with 20-year terms for eligible first-time,
first-generation homebuyers (§40202); and funding to facilitate greater availability of small-
dollar mortgages no greater than $100,000 (§40203).
The House-passed bill would also provide funding for an existing home repair grant program
administered by USDA’s Rural Housing Service (§40204). In addition to this USDA home repair
grant funding, the committee-reported bill had included funding for certain other existing USDA
Congressional Research Service

5

FY2022 Reconciliation: Title IV, House Financial Services Committee Provisions

single-family housing programs and funding for HUD’s Self-Help Homeownership Opportunity
Program (SHOP).4 Funding for these other programs was not included in the House-passed bill.
In addition, certain homeownership activities would be among the eligible uses of funds provided
in other provisions—such as funding for HUD’s HOME program (§40002), a new HUD
Community Restoration and Revitalization Fund (§40105), a new Housing Investment Fund at
Treasury’s Community Development Financial Institutions (CDFI) Fund (§40003), and the
increased contributions to the Federal Home Loan Banks’ Affordable Housing Program included
in the House-passed bill (§40012).
Community and Economic Development
The legislation would also provide funding for community and economic development-related
activities. For example, the Community Development Block Grant (CDBG) program would
receive additional funding (§40101), and a new Unlocking Possibilities Program (§40103) would
provide competitive grants to states and localities for planning and implementation of various
housing and land-use planning initiatives. Additional resources would also be provided for the
Minority Business Development Agency (§40401) and State Small Business Credits (§40402).
Administrative Infrastructure
Nearly all of the provisions in the legislation include funding for the administrative costs of
federal agencies in implementing the programs or activities. In addition, several provisions are
designed solely to increase administrative capacity. For example, administration and capacity-
building funding is provided for HUD (§40301) as well as community-based nonprofits (§40302).
Additional resources are provided for purposes of Fair Housing Act enforcement (§40106 and
§40107), and additional funding (along with programmatic changes) is provided to support the
National Flood Insurance Program (§40104).

4 Namely, §40204 of the committee-reported bill included funding for USDA’s Section 502 Direct Home Loan
Program and Section 523 Mutual Self-Help Housing Grants, as well as Section 504 Housing Repair Grants. The
House-passed bill included funding only for the Section 504 grants. Section 40205 of the committee-passed bill
included funding for SHOP, which supports sweat equity homeownership programs.
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6

link to page 12
Table 1. Summary of Provisions
(Dollars in billions)

Funding

Reported

by
House-
Section
Title
Committee
Passed
Agency
Summary
CRS Contact
Subtitle A—Creating and Preserving Affordable, Equitable and Accessible Housing For the 21st Century
40001
Public Housing Investment
$80.000
$65.000
HUD
Funding to local public housing authorities (PHAs) for capital
Maggie McCarty,
grants (both formula-based and competitive) to rehabilitate
Specialist in Housing
existing public housing properties and for the development of
Policy
new units of public housing.
40002
Investments in Affordable and
72.000
25.000
HUD
Funding for the HOME program, which provides formula
Katie Jones, Analyst in
Accessible Housing Production
grants to states and eligible local governments to use for a
Housing Policy
range of affordable housing activities, including both rental
housing and homeownership. Of the total amount of HOME
funding provided, a portion ($14.9 bil ion in the House-passed
bil ) is to be allocated to states according to the Housing
Trust Fund formula and used only for activities eligible under
that program (primarily production, preservation, and
rehabilitation of rental housing for the lowest income
households).
40003
Housing Investment Funda
10.000
0.750
Treasury
Funding for a new program administered by Treasury’s
Katie Jones, Analyst in
Community Development Financial Institutions (CDFI) Fund
Housing Policy
to provide competitive grants to CDFIs or eligible nonprofits
to develop, preserve, rehabilitate, finance, or purchase
affordable housing.
40004
Section 811 Supportive
1.000
0.500
HUD
Funding for capital grants and project rental assistance for
Libby Perl, Specialist in
Housing for People With
nonprofit grantees to develop units of housing for persons
Housing Policy
Disabilities
with disabilities through the Section 811 program. Funding is

also available for the Section 811 Project Rental Assistance
program administered through state housing finance agencies.
CRS-7

link to page 12

Funding

40005
Section 202 Supportive
2.500
0.500
HUD
Funding for capital grants and Section 8 project-based rental
Libby Perl, Specialist in
Housing for the Elderly
assistance for nonprofit grantees to develop units of housing
Housing Policy
Program
for persons who are age 62 and older through the Section
202 program.
40006
Improving Energy Efficiency or
6.000
2.000
HUD
Funding for up to $4 bil ion in direct loans (which may be
Libby Perl, Specialist in
Water Efficiency or Climate
converted to grants) and grants to improve energy and water
Housing Policy
Resilience of Affordable
efficiency or climate resilience in HUD-assisted multifamily

Housing
housing properties receiving project-based assistance through
Maggie McCarty,
the Section 202, Section 811, and Section 8 project-based
Specialist in Housing
rental assistance programs.
Policy
40007
Revitalization of Distressed
4.000
1.600
HUD
Funding for up to $6 bil ion in direct loans (which may be
Libby Perl, Specialist in
Multifamily Properties
forgivable) to make necessary physical improvements to
Housing Policy
distressed HUD-assisted multifamily housing properties

funded through the Section 202, Section 811, Section 236,
Maggie McCarty,
and Section 8 programs. Recipients would be required to
Specialist in Housing
extend affordability restrictions by 30 years.
Policy
40008
Investments in Rural Rental
4.800
2.000
USDA
Funding for direct loans and grants for new construction,
Maggie McCarty,
Housing
preservation, and rehabilitation (including energy and water
Specialist in Housing
efficiency and climate resilience upgrades) of rural rental
Policy
properties under the Section 515 program and farm labor
housing under the Section 514/516 program; as well as rental
assistance under the Section 521 program.
40009
Housing Vouchers
75.000b
24.000
HUD
Funding for the creation of new Housing Choice Vouchers
Maggie McCarty,
(including set-asides for new vouchers for persons
Specialist in Housing
experiencing or at risk of homelessness, survivors of
Policy
domestic violence, and victims of trafficking; and tenant
protection vouchers for public housing residents), associated
renewal costs, administrative fees, and landlord outreach and
mobility activities. New vouchers are to be allocated to PHAs
pursuant to a new formula established by the HUD Secretary,
based on severe housing need among extremely low-income
renters, PHA capacity, and geographic diversity among PHAs.
CRS-8

link to page 13

Funding

40010
Project-Based Rental
15.000
1.000
HUD
Funding for new project-based rental assistance contracts to
Maggie McCarty,
Assistance
be awarded to owners/developers of affordable multifamily
Specialist in Housing
housing properties, to be distributed as determined by the
Policy
HUD Secretary.
40011
Investments in Native
2.000
1.000
HUD
Funding for multiple existing programs that support a variety
Katie Jones, Analyst in
American Communities
of tribal housing and community development activities;
Housing Policy
namely, Indian Housing Block Grant (IHBG) formula and
competitive grants, Indian Community Development Block
Grants, and the Native Hawaiian Housing Block Grant.
40012
Increased Affordable Housing
NA
0.972c
FHLBs
This section would temporarily increase funding for the
Katie Jones, Analyst in
Program Investment
Affordable Housing Program (AHP) by increasing the
Housing Policy
percentage of net income that each of the 11 regional Federal
Home Loan Banks is annually required to contribute to the
AHP. The required percentage would be increased to 15%
(compared to 10% in current law) for each year from 2022
through 2027.
Subtitle B—21st Century Sustainable and Equitable Communities
40101
Community Development
8.500
3.050
HUD
Funding for the Community Development Block Grant
Joe Jaroscak, Analyst
Block Grant Funding for
program (CDBG), with a newly structured set-aside for
in Economic
Affordable Housing and
colonias (certain U.S.-Mexico border communities)—as well
Development Policy
Infrastructure
as funding for technical assistance and agency program
administrative costs—and for new competitive grants to
support manufactured home communities. Additional
flexibility for new housing construction activities is available
for certain funding recipients.
40102
Lead-Based Paint Hazard
10.000
5.000
HUD
Funding for grants to states, localities, tribes, and
Maggie McCarty,
Control And Housing-Related
nonprofits—as well as some funding for owners of federally
Specialist in Housing
Health and Safety Hazard
subsidized housing—for lead-based paint inspection, controls,
Policy
Mitigation in Housing of
and abatement, as well as testing and mitigation of other
Families With Lower Incomes
housing-related health and safety hazards, among other
purposes, with resources targeted to serving lower-income
households.
CRS-9

link to page 13 link to page 13

Funding

40103
Unlocking Possibilities Program
4.500
1.750
HUD
Funding for new competitive grants for research, planning,
Joe Jaroscak, Analyst
and implementation activities related to state and local
in Economic
housing policy and zoning regulations. Eligible entities include
Development Policy
CDBG grantees and regional planning agencies or consortia
(for certain planning activities).
40104
Strengthening Resilience Under
4.000
0.60
FEMA
Cancels all outstanding National Flood Insurance Program
Diane Horn, Analyst in
National Flood Insurance
(NFIP) debt to Treasury. The NFIP currently owes $20.525
Flood Insurance and
Program
bil ion to Treasury.d
Emergency
Directs FEMA to spend an amount equal to the interest that
Management
the NFIP would have paid in servicing the cancelled debt for
flood mapping in FY2022 and FY2023, to supplement other
amounts appropriated and to remain available until expended.
Funding of $600 mil ion to the NFIP for a new means-tested
affordability program to provide discounts to eligible NFIP
policyholders for insurance costs.e
40105
Community Restoration and
7.500
3.000
HUD
Funding for new competitive grants to partnerships of eligible
Joe Jaroscak, Analyst
Revitalization Fund
entities for planning and implementing a variety of eligible
in Economic
activities related to housing and civic infrastructure. The
Development Policy
activities include those eligible under HUD’s CDBG program

and additional enumerated uses, as well as a set-aside of
funding to support community land trusts and shared equity
Katie Jones, Analyst in
homeownership.
Housing Policy
40106
Fair Housing Activities and
1.000
0.700
HUD
Funding for the Fair Housing Initiatives Program for eligible
Libby Perl, Specialist in
Investigations
fair housing organizations to expand capacity to accept and
Housing Policy
investigate complaints, conduct testing, and provide education
and outreach, among other activities.
40107
Intergovernmental Fair Housing
0.250
0.100
HUD
Funding for Fair Housing Assistance Program grantees to
Libby Perl, Specialist in
Activities and Investigations
increase capacity to enforce state and local fair housing laws
Housing Policy
that are substantially equivalent to the federal Fair Housing
Act, and to assist grantees in affirmatively furthering fair
housing.
CRS-10

link to page 13 link to page 13 link to page 13

Funding

Subtitle C—Homeownership Investments
40201
First-Generation
10.000
10.000
HUD
Funding for a new program to provide formula grants to
Katie Jones, Analyst in
Downpayment Assistance
states and competitive grants to eligible entities to use for
Housing Policy
down payment and other assistance for eligible first-time,
first-generation homebuyers.
40202
Home Loan Programf
0.500
5.000
HUD
Funding for a new program to subsidize mortgages with 20-
Katie Jones, Analyst in
and
year repayment terms, but monthly payments similar to those
Housing Policy
USDA,
on a 30-year mortgage, that are insured by the Federal
with
Housing Administration (FHA) or guaranteed by USDA for
Treasury
eligible first-time, first-generation homebuyers.
40203
HUD-Insured Small Dol ar
0.100
0.100
HUD
Funding for HUD to increase access to single-family
Katie Jones, Analyst in
Mortgage Demonstration
mortgages with original principal balances of $100,000 or less
Housing Policy
Program
that are insured or guaranteed by HUD. HUD can use
funding for loan subsidy costs and for other activities
intended to increase access to such mortgages.
40204
Investments in Rural
0.200
0.100
USDA
Funding for assistance to certain homeowners in rural areas.g
Katie Jones, Analyst in
Homeownership
Housing Policy
40205
Self-Help Homeownership
0.050
0.000
HUD
The committee-reported bil included funding for SHOP,
Katie Jones, Analyst in
Opportunity Program (SHOP)
which provides competitive grants to eligible organizations to
Housing Policy
support sweat equity homeownership programs. The House-
passed bil did not include this funding.
Subtitle D—HUD and Community Capacity Building
40301
Program Administration,
2.000
1.000
HUD,
Funding primarily for administrative costs of HUD in
Libby Perl, Specialist in
Training, Technical Assistance,
Treasury,
implementing programs funded through the reconciliation
Housing Policy
and Capacity Building, and
USDAh
package and HUD programs generally, and for training,

Agency Oversight
technical assistance, and capacity building. Amounts are also
Maggie McCarty,
provided to the Office of Inspector General for HUD,
Specialist in Housing
Treasury, and the Department of Agriculture, for oversight of
Policy
the funds provided by this title.
CRS-11

Funding

40302
Community-Led Capacity
0.100
0.100
HUD
Funding for new competitive grants to nonfederal entities
Joe Jaroscak, Analyst
Building
with capacity for providing technical assistance to local
in Economic
nonprofit community development organizations including,
Development Policy
but not limited to, community land trusts and community
development corporations. Eligible activities include the
provision of technical assistance and training, predevelopment
assistance grants, and other activities as determined by the
HUD Secretary.
Subtitle E—Economic Development
40401
Minority Business
3.100
1.600
Commerce
Funding for new and existing MBDA Business Centers, Rural
Julie Lawhorn, Analyst
Development Agency (MBDA)
Business Centers, and Specialty Centers. Funding also to
in Economic
support minority business enterprises; the establishment of
Development Policy
regional MBDA offices; entrepreneurship education curricula;
nonprofits that support minority business enterprises; and
research, evaluation, and administrative activities.
40402
Manufacturing Facility
1.00
0.500
Treasury
Provides for additional payments to states, made
Grant Driessen,
(Enhanced use of Defense
proportionally to their nationwide share of manufacturing
Specialist in Public
Production Act of 1950)
jobs lost in the last 30 years, for programs that promote
Finance
economic competitiveness and invest in manufacturing
technology or clean energy, and for other purposes.
40403
Supporting Factory-Built
NA
0.025
Treasury
Extends the authority of the Treasury Secretary to administer Grant Driessen,
Housing Through the State
and implement the SSBCI program by 30 months, through
Specialist in Public
Small Business Credit Initiative
FY2030, and provides $25 mil ion in SSBCI technical
Finance
(SSBCI)
assistance for certain factory-built housing projects.
Source: Table prepared by CRS based on the text of the Amendment in the Nature of a Substitute to the Committee Print, as approved by the House Financial Services
Committee and posted on its website at https://financialservices.house.gov/uploadedfiles/hmkp-117-ba00-20210913-sd004.pdf; and H.R. 5376, as approved by the House,
and the Congressional Budget Office (CBO) score of H.R. 5376.
Notes: Amounts shown reflect total budget authority provided in FY2022; total budget authority from FY2022 to 2031 may differ from this amount, based on CBO
scoring. The periods of availability for funding vary across and within accounts. Summaries reflect the version of the legislation as passed by the House.
a. The Housing Investment Fund would be a newly established fund, but it would be similar in many ways to the existing Capital Magnet Fund, which is also
administered by Treasury’s CDFI Fund.
b. Funding used for new, incremental vouchers is to be allocated annually from FY2022 through FY2026.
CRS-12

c. The Congressional Budget Office (CBO) estimates that from FY2022 to FY2031, this provision wil result in an increase in AHP spending of $972 mil ion. It also
estimates that the change in FHLB contributions wil increase revenues by $796 mil ion, resulting in a net increase in the deficit of about $170 mil ion. See CBO,
Estimated Budgetary Effects of Title IV, Committee on Financial Services, H.R. 5376, the Build Back Better Act, November 15, 2021, https://www.cbo.gov/publication/57619.
d. The language in the bil directs the cancellation of all NFIP debt rather than a specific amount. The amount indicated is not appropriation but a cancellation of
program debt. The interest payments and subsequent receipts are intergovernmental transfers and have no net effect on the deficit; outlays for flood mapping would
be direct spending. See CBO, Estimated Budgetary Effects of Title IV, Committee on Financial Services, H.R. 5376, the Build Back Better Act, November 15, 2021,
https://www.cbo.gov/publication/57619.
e. FEMA does not currently have the authority to implement an affordability program.
f.
This section was titled “Wealth-Building Home Loan” in the committee-reported bil .
g. The committee-reported bil included funding for Section 502 Direct Home Loans, Section 504 Housing Repair Grants (with certain adjustments to eligibility criteria
and allowable uses), and Section 523 Mutual Self-Help Housing Grants. The House-passed bil includes only the Section 504 Housing Repair Grants funding.
h. The committee-reported bil included funding for the United States Interagency Council on Homelessness; that funding was not included in the House-passed
version.

CRS-13

FY2022 Reconciliation: Title IV, House Financial Services Committee Provisions

Author Information

Maggie McCarty, Coordinator
Katie Jones
Specialist in Housing Policy
Analyst in Housing Policy

Grant A. Driessen
Julie M. Lawhorn
Specialist in Public Finance
Analyst in Economic Development Policy

Joseph V. Jaroscak
Libby Perl
Analyst in Economic Development Policy
Specialist in Housing Policy

Diane P. Horn

Analyst in Flood Insurance and Emergency
Management

Disclaimer
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Congressional Research Service
R46916 · VERSION 4 · UPDATED
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