NeighborWorks Accountability Act
- Bill Number
- H.R. 6483
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-12-04: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-04-10T15:22:22Z
AI-Generated Summary
Purpose
The NeighborWorks Accountability Act (H.R. 6483) aims to increase oversight and accountability for the Neighborhood Reinvestment Corporation (also known as NeighborWorks America), a federally chartered nonprofit organization that supports community development, affordable housing, and neighborhood revitalization programs. By establishing an Inspector General (IG) office, the bill ensures independent audits and reviews to prevent waste, fraud, and mismanagement of federal funds.
Key Provisions
- Establishment of Inspector General: Authorizes the creation of an independent IG office for the Neighborhood Reinvestment Corporation, similar to IGs in other federal entities. The IG will conduct audits, investigations, and evaluations to promote efficiency and integrity.
- Funding Authorization: Allows Congress to appropriate necessary funds to support the IG office's operations.
- Limitations on Responsibilities: Prohibits transferring any of the corporation's core program duties—such as assessing organizational performance or overseeing grant recipients—to the IG office, keeping oversight separate from daily operations.
- Independent Annual Audits: Requires the corporation's financial accounts to be audited each year by external, independent certified public accountants (CPAs) who follow standard auditing practices. These audits must be certified by a regulatory body in the relevant location and remain separate from the IG's other review work.
Significant Changes to Existing Law
- Amends Section 415(a)(1)(A) of Title 5, U.S. Code (the federal law governing IGs) to explicitly include the Neighborhood Reinvestment Corporation in the list of organizations required to have an IG, bringing it under the standard federal IG framework.
- Modifies the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8101 et seq.):
- Adds new funding and operational limits to Section 606, ensuring the IG has resources but no control over the corporation's main activities.
- Replaces the previous audit subsection in Section 607 with stricter requirements for independent external audits, emphasizing certification and adherence to generally accepted auditing standards (professional guidelines for ensuring accurate financial reporting).
These changes fill a gap by formalizing IG oversight for an entity that previously lacked this level of independent federal scrutiny.
Potential Impacts
- On Government Agencies: Strengthens accountability for the Neighborhood Reinvestment Corporation, which receives federal funding and partners with agencies like the Department of Housing and Urban Development. This could lead to more efficient use of taxpayer dollars and reduce risks of financial irregularities.
- On Citizens: Improves transparency in programs that aid low-income communities, such as homeownership initiatives and community lending, potentially building public trust and ensuring funds reach intended beneficiaries without waste.
- On International Relations: No direct impacts, as the bill focuses on domestic financial oversight.
Main Stakeholders Affected
- Neighborhood Reinvestment Corporation (NeighborWorks America): Directly gains an IG office, requiring compliance with new audit and reporting standards, which may increase administrative costs but enhance credibility.
- Congress and Federal Oversight Committees: The bill was referred to the House Committees on Financial Services and Oversight and Government Reform, giving them tools to monitor the corporation's use of federal appropriations.
- Taxpayers and Community Beneficiaries: Indirectly affected through better safeguards on public funds supporting housing and development programs in underserved areas.
- Independent Auditors and CPAs: Gain mandated roles in annual audits, creating new professional opportunities.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Aligns the corporation with the federal Inspector General Act of 1978 (as amended), promoting uniform oversight standards across government-related entities. The emphasis on independent audits reinforces anti-corruption measures without altering the corporation's nonprofit status or core mission.
- Constitutional Implications: None significant; the bill operates within Congress's authority under Article I to regulate federal spending and create oversight mechanisms, avoiding any challenges to separation of powers.
- Political Implications: Enhances bipartisan interest in fiscal responsibility by addressing accountability for a congressionally chartered entity, potentially setting a precedent for similar oversight of other quasi-governmental organizations. It could influence future appropriations debates by demonstrating proactive governance reforms.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Walkinshaw, James R. [D-VA-11]
Recent Actions
- 2025-12-04: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-12-04: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-12-04: Introduced in House
- 2025-12-04: Introduced in House
Bill Versions
- NeighborWorks Accountability Act — issued 2025-12-04 — PDF (3 pages)