; and (5) by adding at the end the following: (4) reduce payments to the participating jurisdiction under this subtitle by an amount equal to the amount of such payments which were not expended in accordance with this title. . 206. Tenant and participant protections for small-scale affordable housing Section 225 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12755 ) is amended by adding at the end the following: (e) Tenant selection for small-Scale housing Paragraphs (2) through (4) of subsection (d) shall not apply to the owner of small-scale housing (as defined in section 215(a)). . 207. Establishment of home loan guarantee program Subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12741 et seq. ) is amended by adding at the end the following: 227. Guarantee and commitment to guarantee loans for acquisition of property (a) Authority (1) In general The Secretary may, under such terms and conditions as the Secretary may prescribe, guarantee and make commitments to guarantee, only to such extent or in such amounts as provided in appropriation Acts, the notes or obligations issued by participating jurisdictions for the purposes of financing the development or preservation of affordable rental and homeownership housing through the acquisition, new construction, reconstruction, or moderate or substantial rehabilitation of affordable housing. (2) Eligible expenses When in support of the activities described in paragraph (1), the expenses for which the Secretary may guarantee and make commitments to guarantee notes or obligations under that paragraph include real property acquisition, site improvement, conversion, demolition, and other expenses, including financing costs and relocation expenses of any displaced person, family, or business. (b) Limitations and requirements (1) Eligibility A guarantee under this section may be used to assist a participating jurisdiction in obtaining financing only if the participating jurisdiction— (A) has made efforts to