§ 1701x–2 — Legal Assistance For Foreclosure-related Issues

(a) The Secretary of Housing and Urban Development (hereafter in this section referred to as the “Secretary”) shall establish a program for making grants for providing a full range of foreclosure legal assistance to low- and moderate-income homeowners and tenants related to home ownership preservation, home foreclosure prevention, and tenancy associated with home foreclosure. (b) The Secretary shall allocate amounts made available for grants under this section to State and local legal organizations on the basis of a competitive process. For purposes of this subsection “State and local legal organizations” are those State and local organizations whose primary business or mission is to provide legal assistance. (c) In allocating amounts in accordance with subsection (b), the Secretary shall give priority consideration to State and local legal organizations that are operating in the 125 metropolitan statistical areas (as that term is defined by the Director of the Office of Management and Budget) with the highest home foreclosure rates. (1) Any State or local legal organization that receives financial assistance pursuant to this section may use such amounts only to assist— (A) homeowners of owner-occupied homes with mortgages in default, in danger of default, or subject to or at risk of foreclosure; and (B) tenants at risk of or subject to eviction as a result of foreclosure of the property in which such tenant resides. (2) Any State or local legal organization that receives financial assistance pursuant to this section shall begin using any financial assistance received under this section within 90 days after receipt of the assistance. (3) No funds provided to a State or local legal organization under this section may be used to support any class action litigation. (4) Legal assistance funded with amounts provided under this section shall be limited to mortgage-related default, eviction, or foreclosure proceedings, without regard to whether such foreclosure is judicial or nonjudicial. (5) Notwithstanding any other provision of this Act, this subsection shall take effect on July 21, 2010. (1) None of the amounts made available under this section shall be distributed to— (A) any organization which has been convicted for a violation under Federal law relating to an election for Federal office; or (B) any organization which employs applicable individuals. (2) In this subsection, the term “applicable individual” means an individual who— (A) is— (i) employed by the organization in a permanent or temporary capacity; (ii) contracted or retained by the organization; or (iii) acting on behalf of, or with the express or apparent authority of, the organization; and (B) has been convicted for a violation under Federal law relating to an election for Federal office. (f) There are authorized to be appropriated to the Secretary $35,000,000 for each of fiscal years 2011 through 2012 for grants under this section.