H.R. 9159

[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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