Abandonment Disaster Demonstration Relief Act

Abandonment Disaster Demonstration Relief Act - States that it is the purpose of this Act to establish a Neighborhood Protection Corporation which will have the authority, on a demonstration basis, to enter and take possession of abandoned residential properties in order to prevent the continued deterioration and destruction of neighborhoods and communities and to hold and assemble parcels of land for the development and redevelopment of neighborhoods and communities.

Establishes a corporation to be known as the Neighborhood Corporation, which shall be an independent agency of the United States. Prohibits the Corporation or any of its functions, powers, or duties, from being transferred to or consolidated with any other department, agency, or establishment of the Federal Government.

Requires the demonstration program to be conducted in three metropolitan housing areas.

States that in the case of abandoned residential property subject to a mortgage which is insured or guaranteed by an agency of the United States, the Corporation may file in the United States district court wherein the property is located an action for forfeiture of such property to the United States, and an application for an order to seize and take possession of such property as the receiver of the court.

Provides that, not later than thirty days after the issuance of an order, the court shall hold a hearing on the merits to determine whether forfeiture should be ordered.

Directs the Corporation to acquire in exchange for obligations issued by it residential properties to which title is held by the Secretary of Housing and Urban Development or the Administrator of Veterans' Affairs at the fair market value of the property as of the date the title is passed to the Corporation.

Allows the Corporation to acquire real or residential properties by condemnation for the purpose of redeveloping a community or neighborhood.

Permits the Corporation to construct, erect, remodel, repair, and rehabilitate structures on residential property; or rent, lease, insure, maintain, exchange, convey, sell for cash or credit, or otherwise dispose of real or residential property, improvements or interests therein.

States that the Corporation may acquire in exchange for obligations issued by it, real properties, residential properties, mortgages on residential properties, and other obligations and liens secured by residential properties.

Directs the Corporation to provide directly or by contract counseling on household management, property management, budgeting, and related counseling services which would assist low- and moderate-income families who purchase homes from the Corporation.

Provides that the Corporation, when it sells property improved by dwellings for occupancy by fewer than five families to a purchaser, may originate and service the mortgage covering such property.

Requires the Board of Directors of the Corporation to determine the minimum amount of capital stock in the Corporation and to increase such capital stock from time to time in such amount as may be necessary, but not to exceed in the aggregate $35,000,000.

Directs that, in its fourth annual report, the Corporation shall include its recommendations with respect to whether the demonstration authorized under this Act should be continued, expanded, or terminated.