To authorize States and localities receiving assistance under the Neighborhood Stabilization Program of the Department of Housing and Urban Development to use such amounts for renovating owner-occupied housing of low-income families.

Amends the Housing and Economic Recovery Act of 2008 to authorize states and localities receiving emergency assistance for the redevelopment of abandoned and foreclosed homes under the Neighborhood Stabilization Program of the Department of Housing and Urban Development (HUD) to use such amounts to renovate single-family housing that is owned and occupied as a principal residence by a family whose income does not exceed 80% of the median income of the area in which the housing is located, as determined by the HUD Secretary with adjustments for smaller and larger families.