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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9159 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9159
To amend the Small Business Act to establish a program under which the
Small Business Administration may make supplemental disaster loans to
homeowner associations to repair common areas damaged by disasters and
implement disaster mitigation measures, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 4, 2026
Mr. Soto (for himself and Mr. Patronis) introduced the following bill;
which was referred to the Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to establish a program under which the
Small Business Administration may make supplemental disaster loans to
homeowner associations to repair common areas damaged by disasters and
implement disaster mitigation measures, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protect Our Homes Act''.
SEC. 2. RESIDENTIAL COMMON AREA REPAIR AND DISASTER MITIGATION
SUPPLEMENTAL LOANS.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by
adding at the end the following new subsection:
``(o) Residential Common Area Repair Supplemental Disaster Loans.--
``(1) In general.--There is established in the
Administration a Residential Common Area Repair Loan program
under which the Administrator may make, in cooperation with
banks or other lending institutions through agreements to
participate on an immediate or deferred (guaranteed) basis--
``(A) loans to covered entities to make covered
repairs to residential common areas; and
``(B) loans to covered entities located in recent
disaster areas to implement measures to protect from
possible future disasters the property of the covered
entities that was damaged or destroyed by the
applicable disasters.
``(2) Supplemental loan.--A covered entity is eligible to
receive a repair or mitigation loan with respect to an
applicable disaster only if the total amount of loans
outstanding and committed to such covered entity under
subsection (b)(1) with respect to such applicable disaster
meets the applicable limit on such amounts for such covered
entity under subsection (d)(6).
``(3) Loan criteria.--
``(A) Limit.--The aggregate loan amount outstanding
and committed to a borrower under the Program with
respect to an applicable disaster may not exceed--
``(i) in the case of a borrower that
constitutes a major source of employment in an
area suffering a disaster, such limit as
determined by the Administrator, up to the
greater of $2,000,000 or such other amount
established by the Administrator under
subsection (b)(8)(B) with respect to such
applicable disaster; and
``(ii) for all other borrowers, $500,000.
``(B) Interest rate.--The interest rate on the a
loan made under the Program shall not exceed the
average annual interest rate on all interest-bearing
obligations of the United States then forming a part of
the public debt as computed at the end of the fiscal
year next preceding the date of the loan and adjusted
to the nearest one-eighth of 1 per centum plus one-
quarter of 1 per centum.
``(C) Duration.--No loan under the Program,
including renewals and extensions thereof, may be made
for a period or periods exceeding thirty years.
``(D) Small loan collateral exclusion.--That the
Administration shall not require collateral for loans
made under the Program of $14,000 or less (or such
higher amount as the Administrator determines
appropriate in the event of a major disaster).
``(E) Use of funds.--
``(i) Repair loans.--Amounts made available
to a covered entity as a repair loan may be
used only for the costs of covered repairs to
residential common areas of such covered
entity.
``(ii) Mitigation loan.--Amounts made
available to a covered entity as a mitigation
loan may be used only to implement measures to
protect from possible future disasters the
property of such covered entity that was
damaged or destroyed by the applicable
disaster.
``(4) Deferment.--The Administrator may defer payment of
principal and interest on a loan under the Program to the same
extent that the Administrator may defer payment of principal
and interest on loans under subsection (b)(1).
``(5) Definitions.--In this subsection:
``(A) Applicable disaster.--The term `applicable
disaster'--
``(i) with respect to a mitigation loan to
a covered entity, means the disaster pursuant
to which the area in which such covered entity
is located is a recent disaster area for the
purposes of such mitigation loan; and
``(ii) with respect to a repair loan to a
covered entity, means the natural disaster or
act of God necessitating the covered repairs to
residential common areas for which such repair
loan has or will be used.
``(B) Covered entity.--The term `covered entity'
means an organization--
``(i) the membership of which is comprised
of each owner of a dwelling unit of a single
residential community; and
``(ii) that is responsible for managing the
residential common areas of such residential
community and enforcing the rules and
regulations of such residential community with
respect to the dwelling units in and residents
and owners of dwelling units of such
residential community.
``(C) Dwelling unit.--The term `dwelling unit'
means a house, townhouse, or condominium.
``(D) Covered repair.--The term `covered repair'
means a repair, rehabilitation, or replacement made
necessary due to a natural disaster (other than a
natural disaster resulting from intentional, willful,
or reckless conduct), or an act of God, including water
damage, wind damage, and fire damage associated with
such a natural disaster or act of God.
``(E) Mitigation loan.--The term `mitigation loan'
means a loan under the Program described in paragraph
(1)(B).
``(F) Program.--The term `Program' means the
Residential Common Area Repair Loan program established
by paragraph (1).
``(G) Recent disaster area.--The term `recent
disaster area', with respect to a mitigation loan to a
covered entity, means an area which the Administrator
determines has, in the five-year period ending on the
date on which such covered entity submits to the
Administrator a request for such mitigation loan, been
affected by a disaster and--
``(i) the Administrator determines that
such disaster constitutes--
``(I) a major disaster, as
determined by the President under the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C.
5121 et seq.);
``(II) a natural disaster, as
determined by the Secretary of
Agriculture pursuant to section 321 of
the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961);
``(III) a disaster, as determined
by the Administrator; or
``(IV) an emergency involving
Federal primary responsibility
determined to exist by the President
under section 501(b) of the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5191(b)); or
``(ii) the Governor of the State in which
such area is located certifies to the
Administration, and the Administrator agrees,
that the small business concerns, private
nonprofit organizations, or small agricultural
cooperatives in such area--
``(I) have suffered economic injury
as the result of such disaster; and
``(II) are in need of financial
assistance which is not available on
reasonable terms in such area.
``(H) Repair loan.--The term `repair loan' means a
loan under the Program described in paragraph (1)(A).
``(I) Residential common area.--The term
`residential common area' means an area or space that
is operated and maintained by a covered entity for the
benefit of and use by part or all of the residents of
the residential community that are members of such
covered entity, including any services associated with
such an area or space, other than any area or space
that is located in a dwelling unit in such residential
community.
``(J) Residential community.--The term `residential
community' means a group of dwelling units that are
proximately located and the owners of which are members
of the same covered entity.''.
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