HCDA -- TITLE III, TITLE IV, AND TITLE V

           TITLE III - PRESERVATION OF LOW-INCOME HOUSING

SUBTITLE A - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL HOUSING
                                ACT

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

  Section 234 of the Housing and Community Development Act of 1987
(12 U.S.C. 4124) is amended to read as follows:

'SEC. 234. AUTHORIZATION OF APPROPRIATIONS.

  '(a) In General. - There are authorized to be appropriated for
assistance and incentives authorized under this subtitle
$638,252,784 for fiscal year 1993 and $665,059,401 for fiscal year
1994.

  '(b) Grants. - Subject to approval in appropriation Acts, not
more than $50,000,000 of the amounts made available under
subsection (a) for fiscal year 1993, and not more than $50,000,000
of the amounts made available under subsection (a) for fiscal year
1994, shall be available for grants under section 221(d)(2).'.

SEC. 302. GUIDELINES FOR APPRAISALS OF PRESERVATION VALUE.

  The first sentence of section 213(c) of the Housing and Community
Development Act of 1987 (12 U.S.C. 4103(c)) is amended by inserting
before 'and costs' the following: 'simultaneous termination of any
Federal rental assistance,'.

SEC. 303. SECOND NOTICE OF INTENT.

  Section 216(d) of the Housing and Community Development Act of
1987 (12 U.S.C. 4106(d)) is amended by adding at the end the
following new paragraph:

      '(3) Filing with the state or local government, tenants, and
    mortgagee  . - Upon filing a second notice of intent under this
subsection, the owner shall simultaneously file such notice of the
intent with the chief executive officer of the appropriate State or
local government for the jurisdiction within which the housing is
located and with the mortgagee, and shall inform the tenants of the
housing of the filing.'.

SEC. 304. PLAN OF ACTION.

  (a) Supporting Documentation Regarding Plan of Action. - Section
217(a)(2) of the Housing and Community Development Act of 1987 (12
U.S.C. 4107(a)(2)) is amended by inserting after the second
sentence the following new sentence: 'Each owner and the Secretary
shall also, upon request, make available to the tenants of the
housing and to the office of the chief executive officer of the
appropriate State or local government for the jurisdiction within
which the housing is located all documentation supporting the plan
of action, but not including any information that the Secretary
determines is proprietary information.'.

  (b) Supporting Documentation Regarding Revisions. - Section
217(c) of the Housing and Community Development Act of 1987 (12
U.S.C. 4107(c)) is amended in the second sentence by inserting
before the period the following: 'and make available to the
Secretary and tenants all documentation supporting any revision,
but not including any information that the Secretary determines is
proprietary information'.

SEC. 305. APPROVAL OF PLAN OF ACTION.

  Section 218 of the Housing and Community Development Act of 1987
(12 U.S.C. 4108) is amended -

      (1) by redesignating subsection (b) as subsection (c); and

      (2) by inserting after subsection (a) the following new
    subsection:

  '(b) Standards and Procedure for Written Findings. -

      '(1) Standards. - A written finding under subsection (a)
    shall be based on an analysis of the evidence considered by the
    Secretary in reaching such finding and shall contain
    documentation of such evidence.

      '(2) Procedure and criteria. - The Secretary shall, by
    regulation, develop (A) a procedure for determining whether the
    conditions under paragraphs (1) and (2) of subsection (a)
    exist, (B) requirements for evidence on which such
    determinations are based, and (C) criteria on which such
    determinations are based.'.

SEC. 306. RECEIPT OF INCENTIVES TO EXTEND LOW-INCOME USE.

  Section 219(a) of the Housing and Community Development Act of
1987 (12 U.S.C. 4109(a)) is amended -

      (1) in the first sentence, by inserting after 'receive' the
    following: '(for each year after the approval of the plan of
    action)'; and

      (2) by adding at the end the following new sentence: 'The
    Secretary shall take such actions as are necessary to ensure
    that owners receive the annual authorized return for the
    housing determined under section 214(a) during the period in
    which rent increases are phased in as provided in section
    222(a)(2)(E), including (in order of preference) (1) allowing
    the owner access to residual receipt accounts (pursuant to
    subsection (b)(1) of this section), (2) deferring remittance of
    excess rent payments, and (3) providing an increase in rents
    permitted under an existing contract under section 8 of the
    United States Housing Act of 1937 (pursuant to subsection
    (b)(2) of this section).'.

SEC. 307. TRANSFER TO QUALIFIED PURCHASERS.

  (a) Eligibility for Assistance. - The matter preceding
subparagraph (A) in section 220(d)(2) of the Housing and Community
Development Act of 1987 (12 U.S.C. 4110(d)(2)) is amended by
inserting after 'purchasers' the following: '(including all
priority purchasers other than resident councils acquiring under
the homeownership program authorized by section 226)'.

  (b) Project Oversight. - Section 220(d)(2)(D) of the Housing and
Community Development Act of 1987 (12 U.S.C. 4110(d)(2)(D)) is
amended by inserting before the semicolon the following: ', and in
the case of a priority purchaser, meet project oversight costs'.

  (c) Return. - Section 220(d)(2)(E) of the Housing and Community
Development Act of 1987 (12 U.S.C. 4110(d)(2)(E)) is amended to
read as follows:

          '(E) receive a distribution equal to an 8 percent annual
        return on any actual cash investment (from sources other
        than assistance provided under this title) made to acquire
        or rehabilitate the project;'.

  (d) Reimbursement. - Section 220(d)(2)(F) of the Housing and
Community Development Act of 1987 (12 U.S.C. 4110(d)(2)(F)) is
amended to read as follows:

          '(F) in the case of a priority purchaser, receive a
        reimbursement of all reasonable transaction expenses
        associated with the acquisition, loan closing, and
        implementation of an approved plan of action; and'.

  (e) Incentives. - Section 220(d)(3)(A) of the Housing and
Community Development Act of 1987 (12 U.S.C. 4110(d)(3)(A)) is
amended by striking 'any residual receipts' and all that follows
through '(b) or (c) and'.

SEC. 308. CRITERIA FOR PLAN OF ACTION INVOLVING INCENTIVES.

  (a) Elimination of Windfall Profits Test  . - Section 222 of the
Housing and Community Development Act of 1987 (12 U.S.C. 4112) is
amended by striking subsection (e).

  (b) Rent Adjustments. - Section 222(a)(2)(G)(i) of the Housing
and Community Development Act of 1987 (12 U.S.C. 4112(a)(2)(G)(i))
is amended by striking 'by making changes in the annual authorized
return under section 214' and inserting the following: ', where the
owner is a priority purchaser, to the portion of rent attributable
to project oversight costs'.

SEC. 309. RESIDENT HOMEOWNERSHIP PROGRAM.

  Section 226(b) of the Housing and Community Development Act of
1987 (12 U.S.C. 4116(b)) is amended -

      (1) in paragraph (2) -

          (A) by inserting 'and limitation on conditions of
        approval' before the period at the end of the paragraph
        heading; and

          (B) by inserting after the period at the end the
        following new sentence: 'The Secretary may not require the
        prepayment of the mortgage on eligible low-income housing
        for the approval of a plan of action involving a
        homeownership program for the housing.';

      (2) in paragraph (3) -

          (A) in subparagraph (C), by striking 'and' at the end;

          (B) in subparagraph (D), by striking the period at the
        end and inserting '; and'; and

          (C) by adding at the end the following new subparagraph:

          '(E) the low-income affordability restrictions shall
        continue to apply to any rental units in the housing for
        any period during which such units remain rental units.';

      (3) in paragraph (8), by striking 'Resident' and inserting
    'Except in the case of limited equity cooperatives, resident';
    and

      (4) in paragraph (10) -

          (A) by striking ', as determined by the Secretary,';

          (B) by striking 'section 222(d)' and inserting 'section
        222(c)'; and

          (C) by striking the last sentence.

SEC. 310. DEFINITION OF ELIGIBLE LOW-INCOME HOUSING.

  Section 229(1)(A)(i) of the Housing and Community Development Act
of 1987 (12 U.S.C. 4119(1)(A)(i)) is amended by striking 'assisted
under section 101 of the Housing and Urban Development Act of 1965
or section 8 of the United States Housing Act of 1937' and
inserting 'receiving loan management assistance under section 8 of
the United States Housing Act of 1937 due to a conversion from
section 101 of the Housing and Urban Development Act of 1965'.

SEC. 311. PREEMPTION OF STATE AND LOCAL LAWS.

  The first sentence of section 232(b) of the Housing and Community
Development Act of 1987 (12 U.S.C. 4122(b)) is amended by striking
'and' the first place it appears and inserting ', such as any law
or regulation'.

SEC. 312. TECHNICAL ASSISTANCE AND CAPACITY BUILDING.

  Title II of the Housing and Community Development Act of 1987 (42
U.S.C. 4101 et seq.) is amended by adding at the end the following
new subtitle:

      'SUBTITLE C - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

'SEC. 251. AUTHORITY.

  'The Secretary of Housing and Urban Development may provide
technical assistance and capacity building to further the
preservation program established under this title.

'SEC. 252. PURPOSES.

  'The purposes of this subtitle are -

      '(1) to promote the ability of residents of eligible
    low-income housing to meaningfully participate in the
    preservation process established by this title and affect
    decisions about the future of their housing;

      '(2) to promote the ability of community-based nonprofit
    housing developers and resident councils to acquire,
    rehabilitate, and competently own and manage eligible housing
    as rental or cooperative housing for low- and moderate-income
    people; and

      '(3) to assist the Secretary in discharging the obligation
    under section 220 to notify potential qualified purchasers of
    the availability of properties for sale and to otherwise
    facilitate the coordination and oversight of the preservation
    program established under this title.

'SEC. 253. GRANTS FOR BUILDING RESIDENT CAPACITY AND FUNDING
            PREDEVELOPMENT COSTS.

  '(a) In General  . - Assistance made available under this section
shall be used for direct assistance grants to resident
organizations and community-based nonprofit housing developers and
resident councils to assist the acquisition of specific projects
(including the payment of reasonable administrative expenses to
participating intermediaries).

  '(b) Allocation  . - 30 percent of the assistance made available
under this section shall be used for resident capacity grants in
accordance with subsection (d). The remainder shall be used for
predevelopment grants in connection with specific projects in
accordance with subsection (e).

  '(c) Limitation on Grant Amounts. -  A resident capacity grant
under subsection (d) may not exceed $30,000 per project and a grant
under subsection (e) for predevelopment costs may not exceed
$200,000 per project, exclusive of any fees paid to a participating
intermediary by the Secretary for administering the program.

  '(d) Resident Capacity Grants  . -

      '(1) Use. -  Resident capacity grants under this subsection
shall be available to eligible applicants to cover expenses for
resident outreach, incorporation of a resident organization or
council, conducting democratic elections, training, leadership
development, legal and other technical assistance to the board of
directors, staff and members of the resident organization or
council.

      '(2) Eligible housing. -  Grants under this subsection may be
provided with respect to eligible low-income housing for which the
owner has filed a notice of intent under subtitle B of this title
or title II of the Emergency Low Income Housing Preservation Act of
1987 (pursuant to section 604 of the Cranston-Gonzalez National
Affordable Housing Act).

  '(e) Predevelopment Grants. -

      '(1) Use  . - Predevelopment grants under this subsection
shall be made available to community-based nonprofit housing
developers and resident councils to cover the cost of organizing a
purchasing entity and pursuing an acquisition, including third
party costs for training, development consulting, legal, appraisal,
accounting, environmental, architectural and engineering,
application fees, and sponsor's staff and overhead costs.

      '(2) Eligible housing. -  Such grants may only be made
available with respect to any eligible low-income housing project
for which the owner has filed an initial notice of intent to
transfer the housing to a qualified purchaser in accordance with
section 220 of this title, or has filed a notice of intent and
entered into a binding agreement to sell the housing to a resident
organization or nonprofit organization.

      '(3) Phase-in of grant payments. -  Grant payments under this
subsection shall be made in phases, based on performance benchmarks
established by the Secretary in consultation with intermediaries
selected under section 255(b).

  '(f) Grant Applications. -  Grant applications for assistance
under subsections (d) and (e) shall be received monthly on a
rolling basis and approved or rejected on at least a quarterly
basis by intermediaries selected under section 255(b).

  '(g) Appeal. - If an application for assistance under subsections
(d) or (e) is denied, the applicant shall have the right to appeal
the denial to the Secretary and receive a binding determination
within 30 days of the appeal.

'SEC. 254. GRANTS FOR OTHER PURPOSES.

  'The Secretary may provide grants under this subtitle -

      '(1) to resident-controlled or community-based nonprofit
    organizations with experience in resident education and
    organizing for the purpose of conducting community, city or
    county wide outreach and training programs to identify and
    organize residents of eligible low-income housing; and

      '(2) to State and local government agencies and nonprofit
    intermediaries for the purpose of carrying out such activities
    as the Secretary deems appropriate to further the preservation
    program established under this title.

'SEC. 255. DELIVERY OF ASSISTANCE THROUGH INTERMEDIARIES.

  '(a) In General  . - The Secretary shall approve and disburse
assistance under section 253 through eligible intermediaries
selected by the Secretary under subsection (b). If the Secretary
does not receive an acceptable proposal from an intermediary
offering to administer assistance under this section in a given
State, the Secretary shall administer the program in such State
directly.

  '(b) Selection of Eligible Intermediaries. -

      '(1) In general. -  The Secretary shall develop criteria to
select eligible intermediaries, through a competitive process, to
administer assistance under this subtitle.  The process shall
include provision for a reasonable administrative fee.

      '(2) Priority. -  With respect to all forms of grants
available under section 253, such criteria shall give priority to
applications from eligible intermediaries with demonstrated
expertise or experience with the program established under this
title or under the Emergency Low Income Housing Preservation Act of
1987.

      '(3) Criteria. -  The criteria developed under this
subsection shall -

          '(A) not assign any preference or priority to
        applications from eligible intermediaries based on their
        previous participation in administering or receiving
        Federal grants or loans (but may exclude applicants who
        have failed to perform under prior contracts of a similar
        nature);

          '(B) require an applicant to prepare a proposal that
        demonstrates adequate staffing, qualifications, prior
        experience, and a plan for participation; and

          '(C) permit an applicant to serve as the administrator of
        assistance made available under section 253(d) or (e),
        based on the applicant's suitability and interest.

      '(4) Geographic coverage. -  The Secretary may select more
than 1 State or regional intermediary for a single State or region.
The number of intermediaries chosen for each State or region may be
based on the number of eligible low-income housing projects in the
State or region, provided there is no duplication of geographic
coverage by intermediaries in the administration of the direct
assistance grant program.

      '(5) National nonprofit intermediaries. -  National nonprofit
intermediaries shall be selected to administer the assistance made
available under section 253 only with respect to States or regions
for which no other eligible intermediary, acceptable to the
Secretary, has submitted a proposal to participate.

      '(6) Preference. -  With respect to assistance made available
under section 254, preference shall be given to eligible regional,
State, and local intermediaries, over national nonprofit
organizations.

  '(c) Conflicts of Interest. -  Eligible intermediaries selected
under subsection (b) to disburse assistance under section 253 shall
certify that they will serve only as delegated program
administrators, charged with the responsibility for reviewing and
approving grant applications on behalf of the Secretary. Selected
intermediaries shall -

      '(1) establish appropriate procedures for grant
    administration and fiscal management, pursuant to standards
    established by the Secretary; and

      '(2) receive a reasonable administrative fee, except that
    they may not provide other services to grant recipients with
    respect to projects that are the subject of the grant
    application and may not receive payment, directly or
    indirectly, from the proceeds of grants they have approved.

  '(d) Definition of Eligible Intermediaries. -  For purposes of
this section, the term 'eligible intermediary' means a State,
regional, or national organization (including a quasi-public
organization) or a State or local housing agency that -

      '(1) has as a central purpose the preservation of existing
    affordable housing and the prevention of displacement;

      '(2) does not receive direct Federal appropriations for
    operating support;

      '(3) in the case of a national nonprofit organization, has
    been in existence for at least 5 years prior to the date of
    application and has been classified by the Internal Revenue
    Service as an exempt organization under section 501(c)(3) of
    the Internal Revenue Code of 1986;

      '(4) in the case of a regional or State nonprofit
    organization, has been in existence for at least 3 years prior
    to the date of application and has been classified by the
    Internal Revenue Service as an exempt organization under
    section 501(c)(3) of the Internal Revenue Code of 1986 or is
    otherwise a tax-exempt entity;

      '(5) has a record of service to low-income individuals or
    community-based nonprofit housing developers in multiple
    communities and, with respect to intermediaries administering
    assistance under section 253, has experience with the
    allocation or administration of grant or loan funds; and

      '(6) meets standards of fiscal responsibility established by
    the Secretary.

'SEC. 256. DEFINITIONS.

  'For purposes of this subtitle -

      '(1) the term 'community-based nonprofit housing developer'
    means a nonprofit community development corporation that -

          '(A) has been classified by the Internal Revenue Service
        as an exempt organization under section 501(c)(3) of the
        Internal Revenue Code of 1986;

          '(B) has been in existence for at least 2 years prior to
        the date of the grant application;

          '(C) has a record of service to low- and moderate-income
        people in the community in which the project is located;

          '(D) is organized at the neighborhood, city, county or
        multi-county level; and

          '(E) in the case of a corporation acquiring eligible
        housing under subtitle B of this title, agrees to form a
        purchaser entity that conforms to the definition of a
        community-based nonprofit organization under such subtitle
        and agrees to use its best efforts to secure majority
        tenant consent to the acquisition of the project for which
        grant assistance is requested; and

      '(2) the terms 'eligible low-income housing', 'nonprofit
    organization', 'owner', and 'resident council' have the
    meanings given such terms in section 229.

'SEC. 257. FUNDING.

  'The Secretary shall use not more than $25,000,000 of the amounts
made available under section 234(a) for fiscal year 1993, and not
more than $25,000,000 of the amounts made available under section
234(a) for fiscal year 1994, to carry out this subtitle.  Of any
amounts made available to carry out this subtitle in any
appropriation Act, 90 percent shall be set aside for use in
accordance with section 253 and 10 percent shall be set aside for
use in accordance with subsection 254.'.

SEC. 313. TRANSITION PROVISIONS.

  (a) Effect of Election. - Section 604(a) of the Cranston-Gonzalez
National Affordable Housing Act (12 U.S.C. 4101 note) is amended by
adding at the end the following sentence: 'An owner that elects to
be subject to the provisions of the Emergency Low Income Housing
Preservation Act of 1987 shall comply with section 212(b), section
217(a)(2), and section 217(c) of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990.'.

  (b) Changes to Provisions of 1987 Act  . - Section 604(c) of the
Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 4101
note) is amended by adding at the end the following new sentence:
'With respect to housing for which such an election is made -

      '(1) in making incentives under section 224 of such Act
    available to such housing, the Secretary -

          '(A) shall, for approvable plans of action, provide
        assistance sufficient to enable a nonprofit organization
        that has purchased or will purchase an eligible low income
        housing project to meet project oversight costs; and

          '(B) may not refuse to offer incentives referred to in
        such section to any owner who filed a notice of intent
        under section 222 of such Act before October 15, 1991,
        based solely on the date of filing of the plan of action
        for the housing; and

      '(2) the provisions of section 233(1)(A)(i) of such Act shall
    not apply, and the term 'eligible low income housing' shall,
    for purposes of such Act, shall include housing financed by a
    loan or mortgage that is insured or held by the Secretary or a
    State or State agency under section 221(d)(3) of the National
    Housing Act and receiving loan management assistance under
    section 8 of the United States Housing Act of 1937 due to a
    conversion from section 101 of the Housing and Urban
    Development Act of 1965.'.

SEC. 314. CONDITIONS OF ASSISTANCE.

  (a) Elihpa of 1987. - The Secretary may not require, as a
condition of eligibility for or receipt of technical assistance
made available under the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1992 (Public Law 102-139) (including any phase
of a grant), that an applicant participate in a training program
sponsored or conducted by the Department of Housing and Urban
Development for acquisition of eligible low income housing under
the provisions of the Emergency Low Income Housing Preservation Act
of 1987, and may not provide any preference or priority for such
assistance for any applicant based on participation in such a
program.

  (b) Lihprha of 1990  . - The Secretary may require, as a
condition of eligibility for or receipt of technical assistance
made available under the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1992 (Public Law 102-139) (including any phase
of a grant), that an applicant participate in a training program
sponsored or conducted by the Department of Housing and Urban
Development for acquisition of eligible low-income housing under
this title, and may provide preference or priority for such
assistance for applicants based on participation in such a program,
but only if the program is made available on a nationwide basis not
later than March 1, 1993.

SEC. 315. DELEGATED RESPONSIBILITY TO STATE AGENCIES.

  The Secretary of Housing and Urban Development shall issue
interim regulations implementing section 227 of the Housing and
Community Development Act of 1987 (as amended by section 601(a) of
the Cranston-Gonzalez National Affordable Housing Act) not later
than the expiration of the 30-day period beginning on the date of
the enactment of this Act, which shall take effect upon issuance.
The Secretary shall issue final regulations implementing such
section 227 after notice and opportunity for public comment
regarding the interim regulations, pursuant to the provisions of
section 553 of title 5, United States Code (notwithstanding
subsections (a)(2), (b)(B), and (d)(3) of such section).  The
duration of the period for public comment shall not be less than 60
days, and the final regulations shall be issued not later than the
expiration of the 60-day period beginning upon the conclusion of
the comment period and shall take effect upon issuance.

SEC. 316. INSURANCE FOR SECOND MORTGAGE FINANCING.

  (a) Terms. - Section 241(f) of the National Housing Act (12
U.S.C. 1715z-6(f)) is amended -

      (1) in paragraph (2)(B)(i), by inserting after 'equal to' the
    following: 'the amount of rehabilitation costs required by the
    plan of action and related charges and';

      (2) in paragraph (3)(B), by inserting after '1990' the
    following: 'and the amount of rehabilitation costs required by
    the plan of action and related charges and';

      (3) in paragraph (5) -

          (A) by redesignating subparagraph (B) as subparagraph
        (C); and

          (B) by striking subparagraph (A) and inserting the
        following new subparagraphs:

  '(A)(i) in the case of equity loans, have a term not to exceed 40
years and amortization provisions which will, to the extent
practicable, support the loan amount authorized under paragraph
(2)(B); and

  '(ii) in the case of acquisition loans, have a term of not less
than 40 years; and

  '(B) bear interest at such rate as may be agreed upon by the
mortgagor and mortgagee and be secured in such manner as the
Secretary may require; and';

      (4) by striking paragraph (6); and

      (5) by redesignating paragraphs (7) through (9) as paragraphs
    (6) through (8), respectively.

  (b) Renegotiation  . - Section 241(f) of the National Housing Act
(12 U.S.C. 17z-6(f)) is amended by adding at the end the following
new paragraph:

  '(10) The Secretary shall renegotiate and modify the terms of an
equity loan insured under this subsection, at the request of the
owner of the project for which the loan is made, if -

      '(1) the loan was made during the period beginning 30 days
    before the date of the enactment of the Housing and Community
    Development Act of 1992 and ending 90 days after such date of
    enactment under this subsection; and

      '(2) the loan was made pursuant to a plan of action under the
    provisions of the Emergency Low Income Housing Preservation Act
    of 1987 and accepted by the Secretary for processing in
    December 1991.'.

  (c) Regulations. - Not later than the expiration of the 45-day
period beginning on the date of the enactment of this Act, the
Secretary shall issue regulations implementing section 241(f)(1) of
the National Housing Act. The regulations shall not be subject to
the requirements of subsections (b) and (c) of section 553 of title
5, United States Code.

SEC. 317. TECHNICAL AMENDMENTS.

  (a) Low-Income Housing Preservation and Resident Homeownership
Act of 1990. - The Housing and Community Development Act of 1987
(12 U.S.C. 4101 et seq.) is amended -

      (1) in section 215(a)(2), by inserting 'Housing' after
    'United States';

      (2) in section 216(b)(4), by striking 'exceeds' and inserting
    'exceed';

      (3) in the second sentence of section 221(c), by striking
    'that' and inserting 'than';

      (4) in section 222 -

          (A) in subsection (a)(2)(A), by striking 'low income' and
        inserting 'low-income';

          (B) in subsection (c)(2), by striking 'an hearing' and
        inserting 'a hearing';

          (C) in subsection (d)(2)(B), by inserting 'the' after
        'that'; and

          (D) in subsection (d)(2)(C)(ii), by inserting 'in' before
        'default';

      (5) in section 229(11)(A), by striking 'resident' and
    inserting 'residents'; and

      (6) in section 231(b), by striking 'section 222(d)' and
    inserting 'section 222(c)'.

  (b) Cranston-Gonzalez National Affordable Housing Act. - Section
613(b)(2) of the Cranston-Gonzalez National Affordable Housing Act
(12 U.S.C. 4125(b)(2)) is amended by striking 'section 224(e)' and
inserting 'section 222(d)'.

  (c) National Housing Act. - Section 241(f) of the National
Housing Act (12 U.S.C. 1715z-6(f)) is amended -

      (1) in paragraph (2)(B)(ii), by striking 'and' at the end;
    and

      (2) in paragraph (7), by striking 'acquisiton loan' and
    inserting 'acquisition loan'.

SEC. 318. STUDY OF PROJECTS ASSISTED UNDER FLEXIBLE SUBSIDY
PROGRAM.

  (a) Study. - The Secretary shall conduct a study of housing
projects that (1) are assisted under section 236 of the National
Housing Act or the proviso of section 221(d)(5) of such Act, and
(2) have received or are receiving assistance under section 201 of
the Housing and Community Development Amendments of 1978, to
determine the cost of providing such projects with incentives under
the Low-Income Housing Preservation and Resident Homeownership Act
of 1990. The study shall examine any projects portions of which
assisted under such section 236 that are assisted primarily by
State agencies.

  (b) Report. - The Secretary shall submit a report to the Congress
regarding any findings and conclusions of the study under
subsection (a) not later than the expiration of the 1-year period
beginning on the date of the enactment of this Act.

             SUBTITLE B - OTHER PRESERVATION PROVISIONS

SEC. 331. ELIGIBILITY OF PUBLIC MORTGAGORS FOR SECTION 236 MORTGAGE
INSURANCE.

  Section 236(j)(4)(A) of the National Housing Act (12 U.S.C.
1715z-1(j)(4)(A)) is amended by striking 'private'.

SEC. 332. REGULATIONS.

  Except as otherwise provided in this title, the Secretary of
Housing and Urban Development shall issue interim regulations
implementing this title and the amendments made by this title not
later than the expiration of the 90-day period beginning on the
date of the enactment of this Act, which shall take effect upon
issuance.  The Secretary shall issue final regulations implementing
this title and the amendments made by this title after notice and
opportunity for public comment regarding the interim regulations,
pursuant to the provisions of section 553 of title 5, United States
Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of
such section).  The duration of the period for public comment shall
not be less than 60 days, and the final regulations shall be issued
not later than the expiration of the 60-day period beginning upon
the conclusion of the comment period and shall take effect upon
issuance.

 TITLE IV - MULTIFAMILY HOUSING PLANNING AND INVESTMENT STRATEGIES

SEC. 401. DEFINITIONS.

  For purposes of this title:

      (1) Covered multifamily housing property. - The term 'covered
    multifamily housing property' means any housing -

          (A) that is -

              (i) reserved for occupancy by very low-income elderly
            persons pursuant to section 202(d)(1) of the Housing
            Act of 1959;

              (ii) assisted under the provisions of section 202 of
            the Housing Act of 1959 (as such section existed before
            the effectiveness of the amendment made by section
            801(a) of the Cranston-Gonzalez National Affordable
            Housing Act);

              (iii) financed by a loan or mortgage insured,
            assisted, or held by the Secretary or a State or State
            agency under section 236 of the National Housing Act;
            or

              (iv) financed by a loan or mortgage insured or held
            by the Secretary pursuant to section 221(d)(3) of the
            National Housing Act; and

          (B) that is not eligible for assistance under -

              (i) the Low-Income Housing Preservation and Resident
            Homeownership Act of 1990;

              (ii) the provisions of the Emergency Low Income
            Housing Preservation Act of 1987 (as in effect
            immediately before the date of the enactment of the
            Cranston-Gonzalez National Affordable Housing Act); or

              (iii) the HOME Investment Partnerships Act.

      (2) Covered multifamily housing property for the elderly. -
    The term 'covered multifamily housing property for the elderly'
    means any multifamily housing project that was designed or
    designated to serve, or is serving, elderly persons or families
    and is assisted under a program administered by the Secretary.

      (3) Secretary. - The term 'Secretary' means the Secretary of
    Housing and Urban Development.

SEC. 402. REQUIRED SUBMISSION.

  (a) In General. - The owner of each covered multifamily housing
property, and the owner of each covered multifamily housing
property for the elderly, shall submit to the Secretary of Housing
and Urban Development a comprehensive needs assessment of the
property under this title.

  (b) Timing. - The Secretary shall require the owners of
approximately one-third of the aggregate number of covered
multifamily housing properties, and the owners of approximately
one-third of the aggregate number of covered multifamily housing
properties for the elderly, to submit the comprehensive needs
assessments under this section for the properties in each of fiscal
years 1993, 1994, and 1995, in a manner designed to ensure that
upon the conclusion of fiscal year 1995 the assessments for all
such properties have been submitted.

SEC. 403. CONTENTS.

  (a) In General  . - Each comprehensive needs assessment submitted
under this title for a covered multifamily housing property or a
covered multifamily housing property for the elderly shall contain
the following information with respect to the property:

      (1) A description of any financial or other assistance
    currently needed for the property to ensure that the property
    is maintained in a livable condition and to ensure the
    financial viability of the project.

      (2) A description of any financial or other assistance for
    the property that, at the time of the assessment, is reasonably
    foreseeable as necessary to ensure that the property is
    maintained in a livable condition and to ensure the financial
    viability of the project, during the remaining useful life of
    the property.

      (3) A description of any resources available for meeting the
    current and future needs of the property described under
    paragraphs (1) and (2) and the likelihood of obtaining such
    resources.

      (4) A description of any assistance needed for the property
    under programs administered by the Secretary.

  (b) Projects for the Elderly. - Each comprehensive needs
assessment for a covered multifamily housing property for the
elderly shall include, in addition to the information required
under subsection (a), the following information with respect to the
property:

      (1) A description of the supportive service needs of such
    residents and any supportive services provided to elderly
    residents of the property.

      (2) A description of any modernization needs and activities
    for the property.

      (3) A description of any personnel needs for the property.

SEC. 404. SUBMISSION AND REVIEW.

  (a) Form. - The Secretary shall establish the form and manner of
submission of the comprehensive needs assessments under this title.

  (b) Resident Review. - The Secretary shall require each owner of
a covered multifamily housing property and each owner of a covered
multifamily housing property for the elderly to make available to
the residents of the property the comprehensive needs assessment
that is to be submitted to the Secretary. The Secretary shall
require each owner to provide for such residents to submit comments
and opinions regarding the assessment to the owner before the
submission of the assessment.

  (c) State Housing Finance Agency Review. - To the extent that a
covered multifamily housing property or a covered multifamily
housing property for the elderly is financed or assisted by a State
housing finance agency (as such term is defined in section 802 of
the Housing and Community Development Act of 1974), the Secretary
shall require the owner of the property to submit the comprehensive
needs assessment for the property to the State housing finance
agency upon submitting the assessment to the Secretary.

  (d) Review. - The Secretary shall review each comprehensive needs
assessment and shall approve the assessment before the expiration
of the 90-day period beginning upon the receipt of the assessment,
unless the Secretary determines that the assessment has not been
provided in a substantially complete manner.

  (e) Cost of Preparation of Strategy. - The Secretary shall
consider any costs relating to preparing a comprehensive needs
assessment under this title for a covered multifamily housing
property that do not exceed $5,000 for the property as an eligible
project expense for the property.  The Secretary shall provide that
an owner may not increase the rental charge for any unit in a
covered multifamily housing property to provide for the cost of
preparing a comprehensive needs assessment.

  (f) Notice. - The Secretary shall immediately notify each owner
submitting a comprehensive needs assessment (and any State housing
finance agency to which the owner has submitted an assessment under
subsection (d)) of the approval or disapproval of the assessment
upon making such determination.  Within 30 days after disapproving
any assessment, the Secretary shall inform the owner in writing of
the reasons for disapproval.  The Secretary shall require any owner
whose assessment is disapproved to resubmit an amended assessment
not later than 30 days after the owner receives the notice of
disapproval.

  (g) Annual Review and Report of Funding and Targeting for Covered
Multifamily Properties for the Elderly. -

      (1) Review. - The Secretary shall annually conduct a
    comprehensive review of -

          (A) the funding levels required to fully address the
        needs of covered multifamily housing properties for the
        elderly identified in the comprehensive needs assessments
        under section 403(b), specifically identifying any expenses
        necessary to make substantial repairs and add features
        (such as congregate dining facilities and commercial
        kitchens) resulting from development of a property in
        compliance with cost-containment requirements established
        by the Secretary;

          (B) the adequacy of the geographic targeting of resources
        provided under programs of the Department with respect to
        covered multifamily housing properties for the elderly,
        based on information acquired pursuant to section 403(b);
        and

          (C) local housing markets throughout the United States,
        with respect to the need, availability, and cost of housing
        for elderly persons and families, which shall include
        review of any information and plans relating to housing for
        elderly persons and families included in comprehensive
        housing affordability strategies submitted by jurisdictions
        pursuant to section 105 of the Cranston-Gonzalez National
        Affordable Housing Act.

      (2) Report. - The Secretary of Housing and Urban Development
    shall submit a report to the Congress annually describing the
    results of the annual comprehensive needs assessments under
    section 402 for covered multifamily housing properties for the
    elderly and the annual review conducted under paragraph (1) of
    this subsection, which shall contain a description of the
    methods used by project owners and by the Secretary to acquire
    the information described in section 402(b) and any findings
    and recommendations of the Secretary pursuant to the review.

SEC. 405. TROUBLED MULTIFAMILY HOUSING.

  (a) Mandatory Elements. - Section 201(d) of the Housing and
Community Development Amendments of 1978 (12 U.S.C. 1715z-1a(d)) is
amended -

      (1) in paragraph (5), by striking 'and';

      (2) in paragraph (6), by striking the period and inserting a
    semicolon; and

      (3) by adding at the end the following new paragraphs:

      '(7) all reasonable attempts have been made to take all
    appropriate actions and provide suitable housing for project
    residents;

      '(8) the project has a feasible plan to involve the residents
    in project decisions;

      '(9) the affirmative fair housing marketing plan meets
    applicable requirements; and

      '(10) the owner certifies that it will comply with various
    equal opportunity statutes.'.

  (b) Selection Criteria. -

      (1) Repeal of section 201(k)(4). - Section 201(k)(4) of the
    Housing and Community Development Amendments of 1978 (12 U.S.C.
    1715z-1a(k)(4)) is repealed.

      (2) New criteria. - Section 201 of the Housing and Community
    Development Amendments of 1978 is amended by adding at the end
    the following new subsection:

  '(n)(1) The Secretary shall award assistance under this section
to eligible projects on the basis of the following selection
criteria:

      '(A) The extent to which the project presents an imminent
    threat to the life, health, and safety of project residents.

      '(B) The extent to which the project is financially troubled.

      '(C) The extent of physical improvements needed by the
    project as evidenced by the comprehensive needs assessment
    submitted in accordance with title IV of the Housing and
    Community Development Act of 1992.

      '(D) The extent to which there is evidence that there will be
    significant opportunities for residents (including a resident
    council or resident management corporation, as appropriate) to
    be involved in management of the project (except that this
    paragraph shall have no application to projects that are owned
    as cooperatives).

      '(E) The extent to which there is evidence that the project
    owner has provided competent management and complied with all
    regulatory and administrative instructions (including such
    instructions with respect to the comprehensive servicing of
    multifamily projects as the Secretary may issue).

      '(F) Such other criteria as the Secretary may specify by
    regulation or in a Federal Register notice of fund
    availability.

  '(2) Eligible projects that have federally insured mortgages in
force are to be selected for award of assistance under this section
before any other eligible project.'.

  (c) Low-Income Affordability Restrictions. - Section 201(l)(2)(D)
of the Housing and Community Development Amendments of 1978 (12
U.S.C. 1715z-1a(l)(2)(D)) is amended by adding at the end the
following: 'The Secretary may require owners receiving assistance
for capital improvements under this section to retain the housing
as housing affordable for very low-income families or persons,
low-income families or persons and moderate-income families or
persons for the remaining useful life of the housing.  For purposes
of this section, the term 'remaining useful life' means, with
respect to housing assisted under this section, the period during
which the physical characteristics of the housing remain in a
condition suitable for occupancy, assuming normal maintenance and
repairs are made and major systems and capital components are
replaced as becomes necessary.'.

  (d) Exclusivity of Assistance. - Section 201 of the Housing and
Community Development Amendments of 1978, as amended by this
section, is further amended by adding at the end the following new
subsection:

  '(o) Projects receiving assistance under this section are not
eligible for prepayment incentives under the Emergency Low-Income
Housing Preservation Act of 1987 or the Low-Income Housing
Preservation and Resident Homeownership Act of 1990. Projects
receiving financial assistance under such Acts are not eligible for
assistance under this section.'.

  (e) Owner Contributions. - Section 201(k)(2) of the Housing and
Community Development Amendments of 1978 is amended -

      (1) in subparagraph (B), by striking 'and';

      (2) in subparagraph (C), by striking the period and inserting
    '; and'; and

      (3) by adding at the end the following new subparagraph:

          '(D) the Secretary shall give owners credit for advances
        made to the project during a 3-year period prior to the
        application for assistance.'.

  (f) Coordination of Assistance. - Section 201 of the Housing and
Community Development Amendments of 1978, as amended by this
section, is further amended by adding at the end the following new
subsection:

  '(p) The Secretary shall coordinate the allocation of assistance
under this section with assistance made available under section
8(v) of the United States Housing Act of 1937 and section 203 of
this Act to enhance the cost effectiveness of the Federal response
to troubled multifamily housing.'.

SEC. 406. FLEXIBLE SUBSIDY PROGRAM.

  Section 201(d)(6) of the Housing and Community Development
Amendments of 1978 (12 U.S.C. 1715z-1a(d)(6)) is amended by
inserting before the period at the end the following: '; and except
that the Secretary shall review and approve or disapprove each plan
not later than the expiration of the 30-day period beginning upon
the date of submission of the plan to the Secretary by the owner,
but if the Secretary fails to inform the owner of approval or
disapproval of the plan within such period the plan shall be
considered to have been approved'.

SEC. 407. CAPACITY STUDY.

  Section 110(a) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12710(a)) is amended -

      (1) by striking ', and'; and

      (2) by striking the period at the end and inserting the
    following: ', and the ability to respond to areas identified as
    'material weaknesses' by the Office of the Inspector General in
    financial audits or other reports.'.

SEC. 408. FLEXIBLE SUBSIDY PROGRAM.

  (a) Authorization of Appropriations. - Section 201(j)(5) of the
Housing and Community Development Amendments of 1978 (12 U.S.C.
1715z-1a(j)(5)) is amended to read as follows:

  '(5) There is authorized to be appropriated for assistance under
the flexible subsidy fund not to exceed $52,200,000 for fiscal year
1993 and $54,392,400 for fiscal year 1994.'.

  (b) Use of Section 236 Rental Assistance Fund Amounts for
Flexible Subsidy Payments. - Section 236(f)(3) of the National
Housing Act (12 U.S.C. 1715z-1a(f)(3)) is amended by striking
'September 30, 1992' and inserting 'September 30, 1994'.

     TITLE V - MORTGAGE INSURANCE AND SECONDARY MORTGAGE MARKET

            SUBTITLE A - FHA MORTGAGE INSURANCE PROGRAMS

SEC. 501. LIMITATION ON INSURANCE AUTHORITY.

  Section 531(b) of the National Housing Act (12 U.S.C. 1735f-9(b))
is amended to read as follows:

  '(b) Notwithstanding any other provision of law and subject only
to the absence of qualified requests for insurance, to the
authority provided in this Act, and to the limitation in subsection
(a), the Secretary shall enter into commitments to insure mortgages
under this Act with an aggregate principal amount of
$65,905,824,960 during fiscal year 1993 and $68,673,868,600 during
fiscal year 1994.'.

SEC. 502. FEDERAL HOUSING ADMINISTRATION ADVISORY BOARD.

  Section 202(b) of the National Housing Act (12 U.S.C. 1708(b)) is
amended by adding at the end the following new paragraph:

      '(11) The Board shall terminate on January 1, 1995.'.

SEC. 503. MAXIMUM MORTGAGE AMOUNT.

  (a) In General. - The first sentence of section 203(b)(2) of the
National Housing Act (12 U.S.C. 1709(b)(2)) is amended to read as
follows: 'Involve a principal obligation (including such initial
service charges, appraisal, inspection, and other fees as the
Secretary shall approve) in an amount -

      '(A) not to exceed the lesser of -

          '(i) in the case of a 1-family residence, 95 percent of
        the median 1-family house price in the area, as determined
        by the Secretary; in the case of a 2-family residence, 107
        percent of such median price; in the case of a 3-family
        residence, 130 percent of such median price; or in the case
        of a 4-family residence, 150 percent of such median price;
        or

          '(ii) 75 percent of the dollar amount limitation
        determined under section 305(a)(2) of the Federal Home Loan
        Mortgage Corporation Act (as in effect on September 30,
        1992) for a residence of the applicable size;

    except that the applicable dollar amount limitation in effect
    for any area under this subparagraph (A) may not be less than
    the dollar amount limitation in effect under this section for
    the area on May 12, 1992; and

      '(B) except as otherwise provided in this paragraph (2), not
    to exceed an amount equal to the sum of -

          '(i) 97 percent of $25,000 of the appraised value of the
        property, as of the date the mortgage is accepted for
        insurance;

          '(ii) 95 percent of such value in excess of $25,000 but
        not in excess of $125,000; and

          '(iii) 90 percent of such value in excess of $125,000.'.

  (b) Applicability  . - The amendment made by subsection (a) shall
apply only to mortgages executed on or after January 1, 1993.

  (c) Conforming Amendments. -

      (1) Title i - loans. -  Notwithstanding any other provision
of law, section 2(b)(1) of the National Housing Act (12 U.S.C.
1703(b)(1)) is amended by striking subparagraphs (C), (D), and (E)
and inserting the following new subparagraphs:

          '(C) $48,600 if made for the purpose of financing the
        purchase of a manufactured home;

          '(D) $64,800 if made for the purpose of financing the
        purchase of a manufactured home and a suitably developed
        lot on which to place the home; and

          '(E) $16,200 if made for the purpose of financing the
        purchase, by an owner of a manufactured home which is the
        principal residence of that owner, of a suitably developed
        lot on which to place that manufactured home, and if the
        owner certifies that he or she will place the manufactured
        home on the lot acquired with such loan within 6 months
        after the date of such loan.'.

      (2) Home equity conversion mortgages for elderly homeowners.
    - Section 255(g) of the National Housing Act (12 U.S.C.
    1715z-20(g)) is amended by striking 'for a 1-family residence'
    and inserting 'for 1-family residences in the area in which the
    dwelling subject to the mortgage under this section is
    located'.

      (3) RTC affordable housing program. - Subparagraphs (D)(ii)
    and (G)(II) of section 21A(c)(9) of the Federal Home Loan Bank
    Act (12 U.S.C. 1441a(c)(9)) are each amended by striking 'the
    applicable dollar amount' and all that follows through 'areas)'
    and inserting the following: '$67,500 in the case of a 1-family
    residence, $76,000 in the case of a 2-family residence, $92,000
    in the case of a 3-family residence, and $107,000 in the case
    of a 4-family residence'.

      (4) FDIC affordable housing program. - Paragraphs (4)(B) and
    (7)(B) of section 40(p) of the Federal Deposit Insurance Act
    (12 U.S.C. 1831q(p)) are each amended to read as follows:

          '(B) that has an appraised value that does not exceed the
        amount provided in section 203(b)(2)(A) of the National
        Housing Act except that such amount shall not exceed
        $101,250 in the case of a 1-family residence, $114,000 in
        the case of a 2-family residence, $138,000 in the case of a
        3-family residence, and $160,000 in the case of a 4-family
        residence.'

  (d) GAO Study on FHA Loan Limits and GSE Conforming Loan Limits.
-

      (1) In general. -  The Comptroller General of the United
States shall submit to the Congress, on or before September 1,
1993, a report which evaluates the methodology used to establish
the annual conforming loan limits for the secondary market,
pursuant to section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act, as well as the loan limits adjustments utilized
under the single family mortgage insurance program under section
203 of the National Housing Act.

      (2) Contents. -  The report shall -

          (A) evaluate the methodology used to determine the annual
        adjustment to the conforming loan limit, including the
        accuracy of using the Mortgage Interest Rate Survey (MIRS)
        in determining the median home sales price each year;

          (B) recommend any legislative or administrative changes
        to ensure that the conforming loan limits accurately
        reflect market dynamics;

          (C) assess the long-term consequences of indexing the
        mortgage limits utilized under the FHA section 203(b)
        single family mortgage insurance program to the annual
        adjustments to the conforming loan limits for the secondary
        market;

          (D) assess the impact of such annual adjustments on the
        ability of the FHA single family insurance program to serve
        low and moderate income borrowers; and

          (E) recommend alternative measures that could be employed
        to ensure that FHA can meet the needs of low and moderate
        income families in low and high cost areas of the country.

SEC. 504. FHA ANNUAL REPORT.

  Section 203 of the National Housing Act (12 U.S.C. 1709) is
amended by adding at the end the following:

  '(v) Annual Report. - The Secretary of Housing and Urban
Development shall submit to the Congress an annual report on the
single family mortgage insurance program under this section.  Each
report shall set forth -

      '(1) an analysis of the income groups served by the single
    family insurance program, including -

          '(A) the percentage of borrowers whose incomes do not
        exceed 100 percent of the median income for the area;

          '(B) the percentage of borrowers whose incomes do not
        exceed 80 percent of the median income for the area; and

          '(C) the percentage of borrowers whose incomes do not
        exceed 60 percent of the median income for the area;

      '(2) an analysis of the percentage of minority borrowers
    annually assisted by the program; the percentage of central
    city borrowers assisted and the percentage of rural borrowers
    assisted by the program;

      '(3) the extent to which the Secretary in carrying out the
    program has employed methods to ensure that needs of low and
    moderate income families, underserved areas, and historically
    disadvantaged groups are served by the program; and

      '(4) the current impediments to having the program serve low
    and moderate income borrowers; borrowers from central city
    areas; borrowers from rural areas; and minority borrowers.

SEC. 505. MAXIMUM PRINCIPAL OBLIGATION OF MORTGAGES FOR VETERANS.

  (a) In General. - The first sentence of the last undesignated
paragraph of section 203(b)(2) of the National Housing Act (12
U.S.C. 1709(b)(2)) is amended by striking 'Notwithstanding any
other provision of this paragraph,' and inserting 'Except with
respect to mortgages executed by mortgagors who are veterans,'.

  (b) Technical Amendment. - Section 203(b)(9) of the National
Housing Act (12 U.S.C. 1709(b)(9)) is amended by striking '(except
in a case to which the next to the last sentence of paragraph (2)
applies)' and inserting '(except with respect to a mortgage
executed by a mortgagor who is a veteran)'.

SEC. 506. PREPURCHASE COUNSELING REQUIREMENT.

  (a) In General. - Section 203(b)(2) of the National Housing Act
(12 U.S.C. 1709(b)(2)) is amended by inserting at the end the
following new undesignated paragraph:

      'Notwithstanding any other provision of this paragraph, the
    Secretary may not insure, or enter into a commitment to insure,
    a mortgage under this section that is executed by a first-time
    homebuyer and that involves a principal obligation (including
    such initial service charges, appraisal, inspection, and other
    fees as the Secretary shall approve) in excess of 97 percent of
    the appraised value of the property unless the mortgagor has
    completed a program of counseling with respect to the
    responsibilities and financial management involved in
    homeownership that is approved by the Secretary; except that
    the Secretary may, in the discretion of the Secretary, waive
    the applicability of this requirement.'.

  (b) Effective Date. - The amendment made by subsection (a) shall
apply to mortgages for which commitments for insurance are issued
after the expiration of the 12-month period beginning on the date
of the enactment of this Act.

SEC. 507. AUTHORITY TO DECREASE INSURANCE PREMIUM CHARGES.

  (a) Permanent Provisions. - Section 203(c)(2) of the National
Housing Act (12 U.S.C. 1709(c)(2)) is amended -

      (1) in subparagraph (A), by striking 'equal to' and inserting
    'not exceeding'; and

      (2) in subparagraph (B) -

          (A) in the matter preceding clause (i), by striking
        'equal to' and inserting 'not exceeding'; and

          (B) in clause (ii), by striking 'equal to 0.55 percent'
        and inserting 'not exceeding 0.55 percent'.

  (b) Transition Provisions. - Section 2103(b) of the Omnibus
Budget Reconciliation Act of 1990 (12 U.S.C. 1709 note) is amended
-

      (1) in paragraph (1) -

          (A) in subparagraph (A), by striking 'equal to' and
        inserting 'not exceeding'; and

          (B) in subparagraph (B), in the matter preceding clause
        (i), by striking 'equal to' and inserting 'not exceeding';
        and

      (2) in paragraph (2) -

          (A) in subparagraph (A), by striking 'equal to' and
        inserting 'not exceeding'; and

          (B) in subparagraph (B), in the matter preceding clause
        (i), by striking 'equal to' and inserting 'not exceeding'.

SEC. 508. STATUTE OF LIMITATIONS ON PAYMENT OF DISTRIBUTIVE SHARES.

  (a) Distribution of Shares. -  Section 205(c) of the National
Housing Act (12 U.S.C. 1711(c)) is amended by adding at the end the
following two new sentences: 'The Secretary shall not distribute
any share to an eligible mortgagor under this subsection beginning
on the date which is 6 years after the date the Secretary first
transmitted written notification of eligibility to the last known
address of the mortgagor, unless the mortgagor has applied in
accordance with procedures prescribed by the Secretary for payment
of the share within the 6-year period.  The Secretary shall
transfer any amounts no longer eligible for distribution under the
previous sentence from the Participating Reserve Account to the
General Surplus Account.'.

  (b) Exception. -  Notwithstanding the 6-year limitation on
distribution of shares of the Participating Reserve Account under
section 205(c) of the National Housing Act, the Secretary shall
distribute a share to an otherwise eligible mortgagor in accordance
with section 205(c), if the mortgagor applies for payment of the
share within 1 year after the date of enactment of this Act in
accordance with procedures in effect on such date.

SEC. 509. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS.

  (a) Section 207 Limits. - Section 207(c)(3) of the National
Housing Act (12 U.S.C. 1713(c)(3)) is amended -

      (1) by striking '$25,350', '$28,080', '$33,540', '$41,340',
    and '$46,800' and inserting '$30,420', '$33,696', '$40,248',
    '$49,608', and '$59,160', respectively; and

      (2) by striking '$29,250', '$32,760', '$40,170', '$50,310',
    and '$56,885' and inserting '$35,100', '$39,312', '$48,204',
    '$60,372', and '$68,262', respectively.

  (b) Section 213 Limits. - Section 213(b)(2) of the National
Housing Act (12 U.S.C. 1715e(b)(2)) is amended -

      (1) by striking '$25,350', '$28,080', '$33,540', '$41,340',
    and '$46,800' and inserting '$30,420', '$33,696', '$40,248',
    '$49,608', and '$59,160', respectively; and

      (2) by striking '$29,250', '$32,760', '$40,170', '$50,310',
    and '$56,885' and inserting '$35,100', '$39,312', '$48,204',
    '$60,372', and '$68,262', respectively.

  (c) Section 220 Limits. - Section 220(d)(3)(B)(iii) of the
National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is amended -

      (1) by striking '$25,350', '$28,080', '$33,540', '$41,340',
    and '$46,800' and inserting '$30,420', '$33,696', '$40,248',
    '$49,608', and '$59,160', respectively; and

      (2) by striking '$29,250', '$32,760', '$40,170', '$50,310',
    and '$56,885' and inserting '$35,100', '$39,312', '$48,204',
    '$60,372', and '$68,262', respectively.

  (d) Section 221(d)(3) Limits. - Section 221(d)(3)(ii) of the
National Housing Act (12 U.S.C. 1715l(d)(3)(ii)) is amended by
striking '$28,032', '$32,321', '$38,979', '$49,893', '$55,583',
'$29,500', '$33,816', '$41,120', '$53,195', and '$58,392' and
inserting '$33,638', '$38,785', '$46,775', '$59,872', '$66,700',
'$35,400', '$40,579', '$49,344', '$63,834', and '$70,070',
respectively.

  (e) Section 221(d)(4) Limits. - Section 221(d)(4)(ii) of the
National Housing Act (12 U.S.C. 1715l(d)(4)(ii)) is amended by
striking '$25,228', '$28,636', '$34,613', '$43,446', '$49,231',
'$27,251', '$31,239', '$37,986', '$49,140', and '$53,942' and
inserting '$30,274', '$34,363', '$41,536', '$52,135', '$59,077',
'$32,701', '$37,487', '$45,583', '$58,968', and '$64,730',
respectively.

  (f) Section 231 Limits. - Section 231(c)(2) of the National
Housing Act (12 U.S.C. 1715v(c)(2)) is amended -

      (1) by striking '$23,985', '$26,813', '$32,019', '$38,532',
    and '$45,300' and inserting '$28,782', '$32,176', '$38,423',
    '$46,238', and '$54,360', respectively; and

      (2) by striking '$27,251', '$31,239', '$37,986', '$49,140',
    and '$53,942' and inserting '$32,701', '$37,487', '$45,583',
    '$58,968', and '$64,730', respectively.

  (g) Section 234 Limits. - Section 234(e)(3) of the National
Housing Act (12 U.S.C. 1715y(e)(3)) is amended -

      (1) by striking '$25,350', '$28,080', '$33,540', '$41,340',
    and '$46,800' and inserting '$30,420', '$33,696', '$40,248',
    '$49,608', and '$59,160', respectively; and

      (2) by striking '$29,250', '$32,760', '$40,170', '$50,310',
    and '$56,885' and inserting '$35,100', '$39,312', '$48,204',
    '$60,372', and '$68,262', respectively.

  (h) Regulations. - The Secretary of Housing and Urban Development
shall issue regulations necessary to carry out the amendments made
by subsections (a) through (g), which shall take effect not later
than the expiration of the 1-year period beginning on the date of
the enactment of this Act.

  (i) Conforming Amendments. - Clauses (i)(II) and (ii)(II) of
section 21A(c)(9)(E) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(c)(9)(E)) are each amended by striking 'the applicable dollar
amount' and all that follows through 'areas)' and inserting the
following: ', for such part of the property as may be attributable
to dwelling use (excluding exterior land improvements), $29,500 per
family unit without a bedroom, $33,816 per family unit with 1
bedroom, $41,120 per family unit with 2 bedrooms, $53,195 per
family unit with 3 bedrooms, and $58,392 per family unit with 4 or
more bedrooms'.

SEC. 510. INSURANCE OF LOANS FOR OPERATING LOSSES OF MULTIFAMILY
PROJECTS.

  Section 223(d) of the National Housing Act (12 U.S.C. 1715n(d))
is amended by adding at the end the following new paragraph:

  '(6) In determining the amount of an operating loss loan to be
insured pursuant to this subsection, the Secretary shall not reduce
such amount solely to reflect any amounts placed in escrow (at the
time the existing project mortgage was insured) for initial
operating deficits.  If an operating loss loan was insured by the
Secretary pursuant to this subsection before the date of the
enactment of the Housing and Community Development Act of 1992 and
was reduced solely to reflect the amount placed in escrow for
initial operating deficits, the Secretary shall insure, to the
extent of the availability of insurance authority provided in
appropriation Acts, an increase in the existing loan or a separate
loan, in an amount equal to the lesser of (A) the maximum amount
permitted under this subsection and the applicable underwriting
requirements established by the Secretary and in effect at the time
the loan is to be made, or (B) the amount of the escrow for initial
operating deficits.'.

SEC. 511. ELIGIBILITY OF ASSISTED LIVING FACILITIES FOR MORTGAGE
INSURANCE UNDER SECTION 232.

  (a) Purpose. - Section 232(a) of the National Housing Act (12
U.S.C. 1715w(a)) is amended -

      (1) in the matter preceding paragraph (1), by striking
    'either' and inserting 'any'; and

      (2) by adding at the end the following new paragraph:

      '(3) The development of assisted living facilities for the
    care of frail elderly persons.'.

  (b) Definitions. - Section 232(b) of the National Housing Act (12
U.S.C. 1715w(b)) is amended -

      (1) in paragraph (4), by striking 'and' at the end;

      (2) in paragraph (5), by striking the period at the end and
    inserting a semicolon; and

      (3) by adding at the end the following new paragraphs:

      '(6) the term 'assisted living facility' means a public
    facility, proprietary facility, or facility of a private
    nonprofit corporation that -

          '(A) is licensed and regulated by the State (or if there
        is no State law providing for such licensing and regulation
        by the State, by the municipality or other political
        subdivision in which the facility is located);

          '(B) makes available to residents supportive services to
        assist the residents in carrying out activities of daily
        living, such as bathing, dressing, eating, getting in and
        out of bed or chairs, walking, going outdoors, using the
        toilet, laundry, home management, preparing meals, shopping
        for personal items, obtaining and taking medication,
        managing money, using the telephone, or performing light or
        heavy housework, and which may make available to residents
        home health care services, such as nursing and therapy; and

          '(C) provides separate dwelling units for residents, each
        of which may contain a full kitchen and bathroom, and which
        includes common rooms and other facilities appropriate for
        the provision of supportive services to the residents of
        the facility; and

      '(7) the term 'frail elderly person' has the meaning given
    the term in section 802(k) of the Cranston-Gonzalez National
    Affordable Housing Act.'.

  (c) Mortgage Requirements. - Section 232(d) of the National
Housing Act (12 U.S.C. 1715w(d)) is amended -

      (1) in the matter preceding paragraph (1) -

          (A) by inserting ', assisted living facility,' before 'or
        intermediate care facility';

          (B) by striking 'combined nursing home and intermediate
        care facility' and inserting 'any combination of nursing
        home, assisted living facility, and intermediate care
        facility'; and

          (C) by inserting after 'intermediate care facility' the
        first place it appears the following: ', including a new
        addition to an existing nursing home, assisted living
        facility, or intermediate care facility and regardless of
        whether the existing home or facility is being
        rehabilitated,';

      (2) in paragraph (2), in the matter preceding subparagraph
    (A), by inserting 'or 95 percent of the estimated value of the
    property or project in the case of a mortgagor that is a
    private nonprofit corporation or association (under the meaning
    given such term for purposes of section 221(d)(3) of this
    Act),' before 'including';

      (3) in paragraph (3), by adding at the end the following:
    'The Secretary shall not promulgate regulations or establish
    terms or conditions that interfere with the ability of the
    mortgagor and mortgagee to determine the interest rate; and

      (4) in paragraph (4), by adding at the end the following new
    subparagraph:

      '(C) With respect to assisted living facilities or any such
    facility combined with any other home or facility, the
    Secretary shall not insure any mortgage under this section
    unless -

          '(i) the Secretary determines that the level of financing
        acquired by the mortgagor and any other resources available
        for the facility will be sufficient to ensure that the
        facility contains dwelling units and facilities for the
        provision of supportive services in accordance with
        subsection (b)(6);

          '(ii) the mortgagor provides assurances satisfactory to
        the Secretary that each dwelling unit in the facility will
        not be occupied by more than 1 person without the consent
        of all such occupants; and

          '(iii) the appropriate State licensing agency for the
        State, municipality, or other political subdivision in
        which the facility is or is to be located provides such
        assurances as the Secretary considers necessary that the
        facility will comply with any applicable standards and
        requirements for such facilities.'.

  (d) Fire Safety Equipment. - Section 232(i)(1) of the National
Housing Act (12 U.S.C. 1715w(i)(1)) is amended by inserting ',
assisted living facilities,' after 'nursing homes'.

  (e) Administration. - Section 232 of the National Housing Act (12
U.S.C. 1715w) is amended by adding at the end the following new
subsection:

  '(j) The Secretary shall establish schedules and deadlines for
the processing and approval (or provision of notice of disapproval)
of applications for mortgage insurance under this section.  The
Secretary shall submit a report to the Congress annually describing
such schedules and deadlines and the extent of compliance by the
Department with the schedules and deadlines during the year.'.

  (f) Authority To Insure Refinancing. - Section 223(f) of the
National Housing Act (12 U.S.C. 1715n(f)) is amended by inserting
'existing assisted living facility,' after 'existing nursing home,'
each place it appears.

SEC. 512. EXPEDITING INSURANCE FOR ACQUISITION OF RESOLUTION TRUST
CORPORATION PROPERTY.

  (a) In General. - Section 534 of the National Housing Act (12
U.S.C. 1735f-12) is amended -

      (1) by inserting '(a) State Offices. - ' after '534.'; and

      (2) by adding at the end the following new subsection:

  '(b) Expedited Procedure for RTC Properties. - To assist the
Resolution Trust Corporation in disposing of the property to which
it acquires title and to ensure the timely processing of
applications for insurance of loans and mortgages under this Act
that will be used to purchase multifamily residential property from
the Resolution Trust Corporation, the Secretary shall establish an
expedited procedure for considering such applications.'.

  (b) Implementation. - The procedure referred to in the amendment
made by subsection (a) shall be established through interim and
final regulations issued by the Secretary. The Secretary shall
issue interim regulations implementing the procedure not later than
the expiration of the 90-day period beginning on the date of the
enactment of this Act, which shall be effective upon issuance.  The
Secretary shall issue final regulations after notice and
opportunity for public comment pursuant to the provisions of
section 553 of title 5, United States Code (notwithstanding
subsections (a)(2), (b)(B), and (d)(3) of such section).

SEC. 513. ENERGY EFFICIENT MORTGAGES PILOT PROGRAM.

  (a) Establishment of Pilot Program.  -

      (1) In general. -  Not later than 6 months after the date of
enactment of this Act, the Secretary of Housing and Urban
Development (hereafter referred to as the 'Secretary') shall
establish an energy efficient mortgage pilot program in 5 States,
to promote the purchase of existing energy efficient residential
buildings and the installation of cost-effective improvements in
existing residential buildings.

      (2) Pilot program. -  The pilot program established under
this subsection shall include the following criteria, where
applicable:

          (A) Origination.  - The lender shall originate a housing
loan that is insured under title II of the National Housing Act in
accordance with the applicable requirements.

          (B) Approval.  - The mortgagor's base loan application
shall be approved if the mortgagor's income and credit record is
found to be satisfactory.

          (C) Cost of improvements.  - The cost of cost-effective
energy efficiency improvements shall not exceed the greater of -

              (i) 5 percent of the property value (not to exceed
            $8,000); or

              (ii) $4,000.

      (3) Authority for mortgagees. -  In granting mortgages under
the pilot program established pursuant to this subsection, the
Secretary shall grant mortgagees the authority -

          (A) to permit the final loan amount to exceed the loan
        limits established under title II of the National Housing
        Act by an amount not to exceed 100 percent of the cost of
        the cost-effective energy efficiency improvements, if the
        mortgagor's request to add the cost of such improvements is
        received by the mortgagee prior to funding of the base
        loan;

          (B) to hold in escrow all funds provided to the mortgagor
        to undertake the energy efficiency improvements until the
        efficiency improvements are actually installed; and

          (C) to transfer or sell the energy efficient mortgage to
        the appropriate secondary market agency, after the mortgage
        is issued, but before the energy efficiency improvements
        are actually installed.

      (4) Promotion of pilot program. -  The Secretary shall
encourage participation in the energy efficient mortgage pilot
program by -

          (A) making available information to lending agencies and
        other appropriate authorities regarding the availability
        and benefits of energy efficient mortgages;

          (B) requiring mortgagees and designated lending
        authorities to provide written notice of the availability
        and benefits of the pilot program to mortgagors applying
        for financing in those States designated by the Secretary
        as participating under the pilot program; and

          (C) requiring each applicant for a mortgage insured under
        title II of the National Housing Act in those States
        participating under the pilot program to sign a statement
        that such applicant has been informed of the program
        requirements and understands the benefits of energy
        efficient mortgages.

      (5) Training program. -  Not later than 9 months after the
date of enactment of this Act, the Secretary, in consultation with
the Secretary of Energy, shall establish and implement a program
for training personnel at relevant lending agencies, real estate
companies, and other appropriate organizations regarding the
benefits of energy efficient mortgages and the operation of the
pilot program under this subsection.

      (6) Report. -  Not later than 18 months after the date of
enactment of this Act, the Secretary shall prepare and submit a
report to the Congress describing the effectiveness and
implementation of the energy efficient mortgage pilot program as
described under this subsection, and assessing the potential for
expanding the pilot program nationwide.

  (b) Expansion of Program. - Not later than the expiration of the
2-year period beginning on the date of the implementation of the
energy efficient mortgage pilot program under this section, the
Secretary of Housing and Urban Development shall expand the pilot
program on a nationwide basis and shall expand the program to
include new residential housing, unless the Secretary determines
that either such expansion would not be practicable in which case
the Secretary shall submit to the Congress, before the expiration
of such period, a report explaining why either expansion would not
be practicable.

  (c) Definitions. - For purposes of this section:

      (1) The term 'base loan' means any mortgage loan for a
    residential building eligible for insurance under title II of
    the National Housing Act or title 38, United States Code, that
    does not include the cost of cost-effective energy
    improvements.

      (2) The term 'cost-effective' means, with respect to energy
    efficiency improvements to a residential building, improvements
    that result in the total present value cost of the improvements
    (including any maintenance and repair expenses) being less than
    the total present value of the energy saved over the useful
    life of the improvement, when 100 percent of the cost of
    improvements is added to the base loan.  For purposes of this
    paragraph, savings and cost-effectiveness shall be determined
    pursuant to a home energy rating report sufficient for purposes
    of the Federal National Mortgage Association and the Federal
    Home Loan Mortgage Corporation, or by other technically
    accurate methods.

      (3) The term 'energy efficient mortgage' means a mortgage on
    a residential building that recognizes the energy savings of a
    home that has cost-effective energy saving construction or
    improvements (including solar water heaters, solar-assisted air
    conditioners and ventilators, super-insulation, and insulating
    glass and film) and that has the effect of not disqualifying a
    borrower who, but for the expenditures on energy saving
    construction or improvements, would otherwise have qualified
    for a base loan.

      (4) The term 'residential building' means any attached or
    unattached single family residence.

  (d) Rule of Construction. - This section may not be construed to
affect any other programs of the Secretary of Housing and Urban
Development for energy-efficient mortgages.  The pilot program
carried out under this section shall not replace or result in the
termination of such other programs.

  (e) Regulations  . - The Secretary shall issue any regulations
necessary to carry out this section not later than the expiration
of the 180-day period beginning on the date of the enactment of
this Act. The regulations shall be issued after notice and
opportunity for public comment pursuant to the provisions of
section 553 of title 5, United States Code (notwithstanding
subsections (a)(2), (b)(B), and (d)(3) of such section).

  (f) Authorization of Appropriations. - There are authorized to be
appropriated such sums as may be necessary to carry out this
section.

SEC. 514. STUDY REGARDING HOME WARRANTY PLANS.

  (a) In General. -  The Secretary of Housing and Urban Development
(hereafter in this section referred to as the 'Secretary') shall
conduct a study of home and builder's warranties and protection
plans regarding the construction of, and materials used in, 1- to
4-family dwellings subject to mortgages insured under title II of
the National Housing Act.

  (b) Scope of Study. - The study shall analyze -

      (1) the extent to which home sellers and builders use such
    warranties and plans,

      (2) how such warranties and plans affect the single family
    mortgage insurance program under the National Housing Act and
    the solvency of the Mutual Mortgage Insurance Fund,

      (3) any effects on homeowners of reliance upon such
    warranties and plans,

      (4) the cost of inspections of mortgaged homes not covered by
    such warranties or plans,

      (5) how quickly the issuers of such warranties and plans pay
    claims to homeowners under the warranties and plans,

      (6) how well such warranties and plans provide for the
    prevention of structural damage before damage occurs,

      (7) how responsive the issuers are to homeowner complaints,

      (8) the extent to which homeowners are adequately informed of
    the extent of insurance coverage, the complaint procedures, and
    the arbitration procedures available to them under such
    warranties and plans,

      (9) the extent to which the arbitration process used to
    settle claims under such warranties and plans provides fair and
    reasonable relief for homeowners,

      (10) how well homeowners are informed of their right to
    appeal the decision of such arbitrators to the Secretary,

      (11) whether the reporting and inspection requirements to
    which such warranties and plans are subject provide the
    Secretary with sufficient information to verify that such
    warranties and plans are acceptable,

      (12) whether dwellings covered by such warranties and plans
    satisfy all requirements which would have been applicable if
    such dwellings had been approved for mortgage insurance by the
    Secretary before the beginning of construction, and

      (13) any other issues relating to such warranties and plans
    that the Secretary considers appropriate.

  (c) Report. - The Secretary shall submit a report to the Congress
regarding the findings of the study and any recommendations of the
Secretary resulting from the study, not later than the expiration
of the 12-month period beginning on the date of the enactment of
this Act.

SEC. 515. EXPENDITURES TO CORRECT DEFECTS.

  Section 518(a) of the National Housing Act (12 U.S.C. 1735b(a))
is amended -

      (1) by redesignating paragraphs (1) through (3) as
    subparagraphs (A) through (C), respectively; and

      (2) by striking out 'The Secretary' and all that follows
    through 'make expenditures for' and inserting in lieu thereof
    the following:

      '(1) The Secretary is authorized to make expenditures under
    this subsection with respect to any property that -

          '(A) is a condominium unit (including common areas) or is
        improved by a one-to-four family dwelling;

          '(B) was approved, before the beginning of construction,
        for mortgage insurance under this Act or for guaranty,
        insurance, or direct loan under chapter 37 of title 38,
        United States Code, or was less than a year old at the time
        of insurance of the mortgage and was covered by a consumer
        protection or warranty plan acceptable to the Secretary;
        and

          '(C) the Secretary finds to have structural defects.

      '(2) Expenditures under this subsection may be made for'.

SEC. 516. PAYMENT OF MORTGAGE INSURANCE CLAIMS.

  (a) Payment of Insurance. -  Section 204 of the National Housing
Act (12 U.S.C. 1710) is amended -

      (1) in the fifth sentence of subsection (a), by striking ',
    subject to the cash adjustment hereinafter provided, issue to
    the mortgagee debentures having a total face value' and insert
    in lieu thereof the following: 'issue to the mortgagee
    debentures having a par value';

      (2) by striking subsection (c) and inserting the following:

  '(c) Debentures issued under this section -

      '(1) shall be in such form and amounts;

      '(2) shall be subject to such terms and conditions;

      '(3) shall include such provisions for redemption, if any, as
    may be prescribed by the Secretary of Housing and Urban
    Development, with the approval of the Secretary of the
    Treasury; and

      '(4) may be in book entry or certificated registered form, or
    such other form as the Secretary of Housing and Urban
    Development may prescribe in regulations.';

      (3) in the first sentence of subsection (d) -

          (A) by striking 'executed' and inserting 'issued'; and

          (B) by striking ', shall be signed by the Secretary by
        either his written or engraved signature, and shall be
        negotiable' and inserting the following: 'and shall be
        negotiable, and, if in book entry form, transferable, in
        the manner described by the Secretary in regulations'; and

      (4) by striking in the fifth sentence of subsection (d) 'and
    such guaranty' and inserting the following: 'and, in the case
    of debentures issued in certificated registered form, such
    guaranty'.

  (b) Rental Housing Insurance. -  Section 207 of the National
Housing Act (12 U.S.C. 1713) is amended -

      (1) by striking in the second sentence of subsection (g) ',
    subject to the cash adjustment provided for in subsection (j),
    issue to the mortgagee a certificate of claim as provided in
    subsection (h), and debentures having a total face value' and
    inserting the following: 'issue to the mortgagee a certificate
    of claim as provided in subsection (h), and debentures having a
    par value';

      (2) by striking in the first sentence of subsection (i)
    'shall be signed by the Secretary, by either his written or
    engraved signature, shall be negotiable' and inserting the
    following: 'shall be negotiable, and, if in book entry form,
    transferable, in the manner described by the Secretary in
    regulations';

      (3) by striking in the fourth sentence of subsection (i) 'and
    such guaranty' and inserting the following: 'and, in the case
    of debentures issued in certificated registered form, such
    guaranty'; and

      (4) by striking subsection (j) and inserting the following:

   '(j) Debentures issued under this section -

      '(1) shall be in such form and amounts;

      '(2) shall be subject to such terms and conditions;

      '(3) shall include such provisions for redemption, if any, as
    may be prescribed by the Secretary of Housing and Urban
    Development, with the approval of the Secretary of the
    Treasury; and

      '(4) may be in book entry or certificated registered form, or
    such other form as the Secretary of Housing and Urban
    Development may prescribe in regulations.'.

  (c) Rehabilitation and Neighborhood Conservation Housing
Insurance. -  Section 220(h) of the National Housing Act (12 U.S.C.
1715k) is amended -

      (1) by striking in the first sentence of paragraph (7),
    'shall be signed by the Secretary, by either his written or
    engraved signature, shall be negotiable' and inserting the
    following: 'shall be negotiable, and, if in book entry form,
    transferable, in the manner described by the Secretary in
    regulations';

      (2) by striking in the fourth sentence of paragraph (h)(7)
    'and the guaranty' and inserting the following: 'and, in the
    case of debentures issued in certificated registered form, the
    guaranty';

      (3) by striking the sixth sentence of paragraph (7), and
    inserting the following: 'Debentures issued under this
    subsection shall be in such form and amounts; shall be subject
    to such terms and conditions; and shall include such provisions
    for redemption, if any, as may be prescribed by the Secretary
    of Housing and Urban Development, with the approval of the
    Secretary of the Treasury; and may be in book entry or
    certificated registered form, or such other form as the
    Secretary of Housing and Urban Development may prescribe in
    regulations.'; and

      (4) by striking the last sentence of paragraph (7).

  (d) Housing for Moderate Income and Displaced Families. -  The
second sentence of section 221(g)(4)(A) of the National Housing Act
(12 U.S.C. 1715l(g)(4)(A)) is amended by striking ', subject to the
cash adjustment provided herein, issue to the mortgagee debentures
having total face value' and inserting the following: 'issue to the
mortgagee debentures having a par value'.

SEC. 517. COVERAGE OF THE MULTIFAMILY MORTGAGE FORECLOSURE ACT.

  (a) Purposes. -  Section 362 of the Multifamily Mortgage
Foreclosure Act of 1981 (12 U.S.C. 3701) is amended -

      (1) in subsection (a)(1), by striking 'real estate' and all
    that follows through 'properties' and inserting: 'multifamily
    mortgages'; and

      (2) in subsection (b), by striking 'multiunit' and all that
    follows through '1964' and inserting 'multifamily mortgages'.

  (b) Definition. -  Section 363(2) of the Multifamily Mortgage
Foreclosure Act of 1981 (12 U.S.C. 3702(2)) is amended to read as
follows:

      '(2) 'multifamily mortgage' means a mortgage held by the
    Secretary pursuant to -

          '(A) section 608 or 801, or title II or X, of the
        National Housing Act;

          '(B) section 312 of the Housing Act of 1964, as it
        existed immediately before its repeal by section 289 of the
        Cranston-Gonzalez National Affordable Housing Act;

          '(C) section 202 of the Housing Act of 1959, as it
        existed immediately before its amendment by section 801 of
        the Cranston-Gonzalez National Affordable Housing Act;

          '(D) section 202 of the Housing Act of 1959, as amended
        by section 801 of the Cranston-Gonzalez National Affordable
        Housing Act; and

          '(E) section 811 of the Cranston-Gonzalez National
        Affordable Housing Act.'.

  (c) Prerequisites to Foreclosure. -  The last sentence of section
366 of the Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C.
3705) is amended by striking 'status' and all that follows through
'rents' and inserting the following: 'status, relief under an
assignment of rents, or transfer to a nonprofit entity pursuant to
section 202 of the Housing Act of 1959 (as amended by section 801
of the Cranston-Gonzalez National Affordable Housing Act) or
section 811 of the Cranston-Gonzalez National Affordable Housing
Act'.

  (d) Notice. - Section 367(b)(1) of the Multifamily Mortgage
Foreclosure Act of 1981 (12 U.S.C. 3706(b)(1)) is amended to read
as follows:

  '(b)(1) Except as provided in paragraph (2)(A), the Secretary may
require, as a condition and term of sale, that the purchaser at a
foreclosure sale under this part agree to continue to operate the
security property in accordance with the terms of the program under
which the mortgage insurance or assistance was provided, or any
applicable regulatory or other agreement in effect with respect to
such property immediately prior to the time of foreclosure sale.'.

SEC. 518. MORTGAGEE REVIEW BOARD.

  Section 202(c)(3)(C) of the National Housing Act (12 U.S.C.
1708(c)(3)(C)) is amended -

      (1) by inserting 'temporarily' after 'order';

      (2) by inserting '(i)' after 'Administration if ';

      (3) by inserting '(ii)' after 'violations and'; and

      (4) by striking the period after '6 months' and inserting the
    following: ', and for not longer than 1 year. The Board may
    extend the suspension for an additional 6 months if it
    determines the extension is in the public interest. If the
    Board and the mortgagee agree, these time limits may be
    extended.'.

SEC. 519. DEFINITION OF MORTGAGEE.

  Section 202(c) of the National Housing Act (12 U.S.C. 1708(c)) is
amended -

      (1) by striking paragraph (6)(D); and

      (2) by redesignating paragraph (7) as paragraph (8), and
    inserting the following after paragraph (6):

      '(7) Definition of 'mortgagee'. -  For purposes of this
subsection, the term 'mortgagee' means -

          '(A) a mortgagee approved under this Act;

          '(B) a lender or a loan correspondent approved under
        title I of this Act;

          '(C) a branch office or subsidiary of the mortgagee,
        lender, or loan correspondent; or

          '(D) a director, officer, employee, agent, or other
        person participating in the conduct of the affairs of the
        mortgagee, lender, or loan correspondent.'.

SEC. 520. EXEMPTION FROM SECTION 137(b) OF THE TRUTH IN LENDING
ACT.

  Section 255(j) of the National Housing Act (12 U.S.C.
1715z-20(j)) is amended by adding at the end the following:
'Section 137(b) of the Truth in Lending Act (15 U.S.C. 1647(b)) and
any implementing regulations issued by the Board of Governors of
the Federal Reserve System shall not apply to a mortgage insured
under this section.'.

          SUBTITLE B - SECONDARY MORTGAGE MARKET PROGRAMS

SEC. 531. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-BACKED
SECURITIES.

  Section 306(g)(2) of the Federal National Mortgage Association
Charter Act (12 U.S.C. 1721(g)(2)) is amended to read as follows:

  '(2) Notwithstanding any other provision of law and subject only
to the absence of qualified requests for guarantees, to the
authority provided in this subsection, and to the extent of or in
such amounts as any funding limitation approved in appropriation
Acts, the Association shall enter into commitments to issue
guarantees under this subsection in an aggregate amount of
$88,000,000,000 during fiscal year 1993 and $91,696,000,000 during
fiscal year 1994. There is authorized to be appropriated such sums
as may be necessary to cover the costs (as such term is defined in
section 502 of the Congressional Budget Act of 1974) of guarantees
issued under this Act by the Association.'.

SEC. 532. AUTHORITY FOR GNMA TO MAKE HARDSHIP INTEREST PAYMENTS.

  Section 306(g)(1) of the Federal National Mortgage Association
Charter Act (12 U.S.C. 1721(g)(1)) is amended by inserting after
the period at the end of the third sentence the following new
sentence: 'In any case in which (I) Federal law requires the
reduction of the interest rate on any mortgage backing a security
guaranteed under this subsection, (II) the mortgagor under the
mortgage is a person in the military service, and (III) the issuer
of such security fails to receive from the mortgagor the full
amount of interest payment due, the Association may make payments
of interest on the security in amounts not exceeding the difference
between the amount payable under the interest rate on the mortgage
and the amount of interest actually paid by the mortgagor.'.

   SUBTITLE C - IMPROVEMENT OF FINANCING FOR MULTIFAMILY HOUSING

SEC. 541. SHORT TITLE.

  This subtitle may be cited as the 'Multifamily Housing Finance
Improvement Act'.

SEC. 542. MULTIFAMILY MORTGAGE CREDIT DEMONSTRATIONS.

  (a) In General. -  The Secretary of Housing and Urban Development
(hereinafter referred to as the 'Secretary') shall carry out
programs through the Federal Housing Administration to demonstrate
the effectiveness of providing new forms of Federal credit
enhancement for multifamily loans.  In carrying out demonstration
programs, the Secretary shall include an evaluation of the
effectiveness of entering into partnerships or other contractual
arrangements including reinsurance and risk-sharing agreements with
State or local housing finance agencies, the Federal Housing
Finance Board, the Federal National Mortgage Association, the
Federal Home Loan Mortgage Corporation, qualified financial
institutions, and other State or local mortgage insurance companies
or bank lending consortia.

  (b) Risk-Sharing Pilot Program. -

      (1) In general  . - The Secretary shall carry out a pilot
program through the Federal Housing Administration to provide for
risk sharing related to mortgages on multifamily housing.

      (2) Authority for reinsurance agreements  . - The Secretary
may enter into reinsurance agreements (as such term is defined in
section 544) with the Federal National Mortgage Association, the
Federal Home Loan Mortgage Corporation, qualified financial
institutions, qualified housing finance agencies, and the Federal
Housing Finance Board. The agreements may provide for risk-sharing
and other forms of credit enhancement with respect to mortgage
lending on multifamily housing, including reinsurance with respect
to pools of loans on multifamily housing properties, that the
Secretary determines to be appropriate to carry out the purposes of
this subsection. The agreements shall be in a form and have such
terms and conditions as the Secretary determines to be appropriate
to carry out the purposes of this subsection.

      (3) Development of alternatives  . - The Secretary shall
develop and assess a variety of risk-sharing alternatives,
including arrangements under which the Secretary assumes an
appropriate share of the risk related to long-term mortgage loans
on newly constructed or acquired multifamily rental housing,
mortgage refinancings, bridge financing for construction, and other
forms of multifamily housing mortgage lending that the Secretary
deems appropriate to carry out the purposes of this subsection.
Such alternatives shall be designed -

          (A) to ensure that other parties bear a share of the
        risk, in percentage amount and in position of exposure,
        that is sufficient to create strong, market-oriented
        incentives for other participating parties to maintain
        sound underwriting and loan management practices;

          (B) to develop credit mechanisms, including sound
        underwriting criteria, processing methods, and credit
        enhancements, through which resources of the Federal
        Housing Administration can assist in increasing multifamily
        housing lending as needed to meet the expected need in the
        United States;

          (C) to provide a more adequate supply of mortgage credit
        for sound multifamily rental housing projects in
        underserved urban and rural markets;

          (D) to encourage major financial institutions to expand
        their participation in mortgage lending for sound
        multifamily housing, through means such as mitigating
        uncertainties regarding actions of the Federal Government
        (including the possible failure to renew short-term subsidy
        contracts);

          (E) to increase the efficiency, and lower the costs to
        the Federal Government, of processing and servicing
        multifamily housing mortgage loans insured by the Federal
        Housing Administration; and

          (F) to improve the quality and expertise of Federal
        Housing Administration staff and other resources, as
        required for sound management of reinsurance and other
        market-oriented forms of credit enhancement.

      (4) Eligibility standards  . - The Secretary shall establish
and enforce standards for financial institutions and entities to be
eligible to enter into reinsurance agreements under this
subsection, as the Secretary determines to be appropriate.

      (5) Funding  . - Using any authority provided in
appropriation Acts to insure loans under the National Housing Act,
the Secretary may enter into commitments under this subsection for
risk sharing with respect to mortgages on not more than 15,000
units over fiscal years 1993 and 1994. The demonstration authorized
under this subsection shall not be expanded until the reports
required under subsection (d) are submitted to Congress.

      (6) Fees  . - The Secretary shall establish and collect
premiums and fees under this subsection as the Secretary determines
appropriate to (A) achieve the purpose of this subsection, and (B)
compensate the Federal Housing Administration for the risks assumed
and related administrative costs.

      (7) Non-federal participation  . - The Secretary shall carry
out this subsection, to the maximum extent practicable, with the
participation of well-established residential mortgage originators,
financial institutions that invest in multifamily housing
mortgages, multifamily housing sponsors, and such other private
sector experts in multifamily housing finance as the Secretary
determines to be appropriate.

      (8) Timing  . - The Secretary shall take any administrative
actions necessary to initiate the pilot program under this
subsection not later than the expiration of the 8-month period
beginning on the date of the enactment of this Act.

  (c) Housing Finance Agency Pilot Program. -

      (1) In general. -  The Secretary shall carry out a specific
pilot program in conjunction with qualified housing finance
agencies to test the effectiveness of Federal credit enhancement
for loans for affordable multifamily housing through a system of
risk-sharing agreements with such agencies.

      (2) Pilot program requirements. -

          (A) In general. -  In carrying out the pilot program
authorized under this subsection, the Secretary shall enter into
risk-sharing agreements with qualified housing finance agencies.

          (B) Mortgage insurance. - Agreements under subparagraph
        (A) shall provide for full mortgage insurance through the
        Federal Housing Administration of the loans for affordable
        multifamily housing originated by or through qualified
        housing finance agencies and for reimbursement to the
        Secretary by such agencies for either all or a portion of
        the losses incurred on the loans insured.

          (C) Risk apportionment. -  Agreements entered into under
this subsection between the Secretary and a qualified housing
finance agency shall specify the percentage of loss that each of
the parties to the agreement will assume in the event of default of
the insured multifamily mortgage. Such agreements shall specify
that the qualified housing finance agency and the Secretary shall
share equally the full amount of any loss on the insured mortgage.

          (D) Reimbursement capacity. -  Agreements entered into
under this subsection between the Secretary and a qualified housing
finance agency shall provide evidence of the capacity of such
agency to fulfill any reimbursement obligations made pursuant to
this subsection. Evidence of such capacity may include -

              (i) a pledge of the full faith and credit of a
            qualified State or local agency to fulfill any
            obligations entered into by the qualified housing
            finance agency;

              (ii) reserves pledged or otherwise restricted by the
            qualified housing finance agency in an amount equal to
            an agreed upon percentage of the loss assumed by the
            housing finance agency under subparagraph (C);

              (iii) funds pledged through a State or local
            guarantee fund; or

              (iv) any other form of evidence mutually agreed upon
            by the Secretary and the qualified housing finance
            agency.

          (E) Underwriting standards. -  The Secretary shall allow
any qualified housing finance agency to use its own underwriting
standards and loan terms and conditions for purposes of
underwriting loans to be insured under this subsection without
further review by the Secretary, except that the Secretary may
impose additional underwriting criteria and loan terms and
conditions for contractual agreements where the Secretary retains
more than 50 percent of the risk of loss.

      (3) Mortgage insurance premiums. -  The Secretary shall
establish a schedule of insurance premium payments for mortgages
insured under this subsection based on the percentage of loss the
Secretary may assume. Such schedule shall reflect lower or nominal
premiums for qualified housing finance agencies that assume a
greater share of the risk apportioned according to paragraph
(2)(C).

      (4) Limitation on insurance authority. -  Using any authority
provided by appropriations Acts to insure mortgages under the
National Housing Act, the Secretary may enter into commitments
under this subsection with respect to mortgages on not to exceed
30,000 units over fiscal years 1993, 1994, and 1995. The
demonstration authorized under this subsection shall not be
expanded until the reports required under subsection (d) are
submitted to the Congress.

      (5) Identity of interest. -  Notwithstanding any other
provision of law, the Secretary shall not apply identity of
interest provisions to agreements entered into with qualified State
housing finance agencies under this subsection.

      (6) Prohibition on ginnie mae securitization. - The
    Government National Mortgage Association shall not securitize
    any multifamily loans insured under this subsection.

      (7) Qualification as affordable housing. -  Multifamily
housing securing loans insured under this subsection shall qualify
as affordable only if the housing is occupied by very low-income
families and bears rents not greater than the gross rent for
rent-restricted residential units as determined under section
42(g)(2) of the Internal Revenue Code of 1986.

      (8) Regulations. -  Not later than 90 days after the date of
enactment of this Act, the Secretary shall issue such regulations
as may be necessary to carry out this subsection.

  (d) Independent Studies and Reports  . -

      (1) Federal national mortgage association  . - The Federal
National Mortgage Association, in consultation with representatives
of its seller-servicers and State housing finance agencies, shall
carry out an independent assessment of alternative methods for
achieving the purposes of this section and shall submit a report
containing any findings and recommendations, including any
recommendations for legislative or administrative action,
simultaneously to the Secretary and the Congress not later than 12
months after the date of the enactment of this Act.

      (2) Federal home loan mortgage corporation  . - The Federal
Home Loan Mortgage Corporation, in consultation with
representatives of its seller-servicers and State housing finance
agencies, shall carry out an independent assessment of alternative
methods for achieving the purposes of this section and shall submit
a report containing any findings and recommendations, including any
recommendations for legislative or administrative action,
simultaneously to the Secretary and the Congress not later than 12
months after the date of the enactment of this Act.

      (3) Secretary  . - The Secretary shall submit to the
Congress, and publish, reports under this paragraph assessing the
activities carried out under each of the pilot programs.  The
Secretary shall submit and publish a preliminary report under this
paragraph not later than 9 months after the date of the
implementation of each of the pilot programs, and a final report
not later than 24 months after the date of implementation on which
the pilot program is initiated, which shall include any
recommendations by the Secretary for legislative changes to achieve
the purposes of this section.

      (4) Comptroller general  . - The Comptroller General of the
United States shall carry out an evaluation of each of the pilot
programs under this section and shall submit to the Congress, not
later than 30 months after the date of implementation for each of
the pilot programs, a report regarding the evaluation, together
with any recommendations for legislative changes to achieve the
purposes of this section.  The Comptroller General shall also
submit to the Congress a report containing a preliminary assessment
of the pilot program not later than 18 months after the date of
enactment of this Act.

      (5) Federal housing finance board  . - The Federal Housing
Finance Board shall monitor and assess the activities carried out
under the pilot programs under this section.  The Federal Housing
Finance Board shall submit a preliminary report containing any
findings regarding such activities not later than 9 months after
the date of the enactment of this Act, and a final report
containing such findings not later than 24 months after the date on
which the pilot program is initiated, which shall include any
recommendations by the Board for legislative changes to achieve the
purposes of this section.

SEC. 543. NATIONAL INTERAGENCY TASK FORCE ON MULTIFAMILY HOUSING.

  (a) Purpose. - The purpose of this section is to establish a
National Interagency Task Force on Multifamily Housing to develop
recommendations for establishing a national database on multifamily
housing loans.

  (b) Establishment of Task Force. - There is established a Task
Force known as the National Interagency Task Force on Multifamily
Housing (hereafter in this section referred to as the 'Task
Force').

  (c) Membership of Task Force. -

      (1) Federal officials. - The Task Force shall be composed of
    -

          (A) the Secretary of Housing and Urban Development;

          (B) the Chairperson of the Federal Housing Finance Board;

          (C) the Comptroller of the Currency;

          (D) the Chairman of the Board of Governors of the Federal
        Reserve System;

          (E) the Director of the Office of Thrift Supervision;

          (F) the Chairperson of the Federal Deposit Insurance
        Corporation;

          (G) the Chairperson of the Federal National Mortgage
        Association; and

          (H) the Chairperson of the Federal Home Loan Mortgage
        Corporation,

    or their designees, and the persons appointed under paragraphs
    (2) and (3).

      (2) Appointments by the secretary. - The Secretary shall
    appoint as members of the Task Force -

          (A) 1 individual who is a representative of a State
        housing finance agency;

          (B) 1 individual who is a representative of a local
        housing finance agency;

          (C) 1 individual who is a representative of the building
        industry with experience in multifamily housing; and

          (D) 1 individual who is a representative of the life
        insurance industry with experience in multifamily loan
        performance data.

      (3) Appointments by the chairperson of the fhfb. - The
    Chairman of the Federal Housing Finance Board shall appoint as
    members of the Task Force -

          (A) 1 individual who is a representative from the
        financial services industry with experience in multifamily
        housing underwriting;

          (B) 1 individual who is a representative from the
        nonprofit housing development sector with experience in
        subsidized multifamily housing development; and

          (C) 1 individual who is a representative from a
        nationally recognized rating agency.

  (d) Administration. -

      (1) Chairpersons. - The Task Force shall be chaired jointly
    by the Secretary and the Chairman of the Federal Housing
    Finance Board.

      (2) Meetings. - The Task Force shall meet no less than 4
    times, at the call of the Chairpersons of the Task Force.

      (3) Quorum. - A majority of the members of the Task Force
    shall constitute a quorum for the transaction of business.

      (4) Voting. - Each member of the Task Force shall be entitled
    to 1 vote, which shall be equal to the vote of every other
    member of the Task Force.

      (5) Vacancies. - Any vacancy on the Task Force shall not
    affect its powers, but shall be filled in the manner in which
    the original appointment was made.

      (6) Prohibition on additional pay. - Members of the Task
    Force shall serve without compensation, but shall be reimbursed
    for travel, subsistence, and other necessary expenses incurred
    in the performance of their duties as members of the Task
    Force.

  (e) Functions of the Task Force. -

      (1) In general. -  The Task Force shall conduct a multifamily
housing financial data project in order to improve the availability
and efficiency of financing for multifamily rental housing.  The
project shall -

          (A) analyze available data regarding the performance of
        multifamily housing mortgage loans in all regions of the
        country;

          (B) prepare a comprehensive national database on the
        operation and financing of multifamily housing that will
        provide reliable information appropriate to meet the
        projected needs of lenders, investors, sponsors, property
        managers, and public officials;

          (C) identify important factors that affect the long-term
        financial and operational soundness of multifamily housing
        properties, including factors relating to project credit
        risk, project underwriting, interest rate risk, real estate
        market conditions, public subsidies, tax policies, borrower
        characteristics, program management standards, and
        government policies;

          (D) develop common definitions, standards, and procedures
        that will improve multifamily housing underwriting and
        accelerate the development of a strong, competitive, and
        efficient secondary market for multifamily housing loans;
        and

          (E) make available appropriate information to various
        organizations in forms that will assist in improving
        multifamily housing loan underwriting and servicing.

      (2) Final report. - Not later than 1 year following the
    enactment of this Act, the Task Force shall submit to the
    Congress a final report which shall contain the information,
    evaluations, and recommendations specified in paragraph (1).

  (f) Authority of Task Force. -

      (1) Rules and regulations. - The Task Force may adopt such
    rules and regulations as may be necessary to establish its
    procedures and to govern the manner of its operations,
    organization and personnel.

      (2) Access to data. - The members of the Task Force
    representing the Comptroller of the Currency, the Office of
    Thrift Supervision, the Board of Governors of the Federal
    Reserve System, the Federal Deposit Insurance Corporation, the
    Secretary of Housing and Urban Development, the Federal Housing
    Finance Board, the Federal National Mortgage Association, and
    the Federal Home Loan Mortgage Corporation shall make available
    to the Task Force a representative sample of multifamily
    housing mortgage loans in order for the Task Force to make its
    findings and recommendations, except that -

          (A) all information obtained shall be used only for the
        purposes authorized in this section;

          (B) the Task Force shall maintain the confidentiality of
        all such information obtained in the manner established for
        the material by the submitting entity, and such data shall
        not be subject to release under section 552 of title 5,
        United States Code;

          (C) only aggregate data shall be publicly released by the
        Task Force unless it receives the explicit permission of
        the mortgage originator or government-sponsored enterprise
        from which the information is obtained; and

          (D) any officer or employee of the Secretary, the Office
        of Thrift Supervision, the Board of Governors of the
        Federal Reserve, the Office of the Comptroller of the
        Currency, the Federal Deposit Insurance Corporation, or the
        Federal Housing Finance Board shall be subject to the
        penalties under section 1906 of title 18, United States
        Code, if -

              (i) by virtue of employment or official position, the
            officer or employee has possession of or access to any
            book, record, or information made available under this
            subsection and established as confidential under
            subparagraph (C); and

              (ii) the officer or employee discloses the material
            in any manner other than to an officer or employee of
            the same Federal agency employing the officer or
            employee, or other than pursuant to the exemptions
            under section 1906.

      (3) Sample data. - In order to ensure a representative sample
    of multifamily housing data, the Department of Housing and
    Urban Development, the Office of Thrift Supervision, the Board
    of Governors of the Federal Reserve System, the Office of the
    Comptroller of the Currency, and the Federal Deposit Insurance
    Corporation are authorized to request loan data from a
    representative sample of mortgage originators or the
    government-sponsored enterprises regulated by these agencies,
    and mortgages originated by housing finance agencies and life
    insurance companies, except that -

          (A) all information obtained shall be used only for the
        purposes authorized in this section;

          (B) the Task Force shall maintain the confidentiality of
        all such information obtained in the manner established for
        the material by the submitting entity, and such data shall
        not be subject to release under section 552 of title 5,
        United States Code;

          (C) only aggregate data shall be publicly released by the
        Task Force unless it receives the explicit permission of
        the mortgage originator or government-sponsored enterprise
        from which the information is obtained; and

          (D) any officer or employee of the Secretary, the Office
        of Thrift Supervision, the Board of Governors of the
        Federal Reserve, the Office of the Comptroller of the
        Currency, the Federal Deposit Insurance Corporation, or the
        Federal Housing Finance Board shall be subject to the
        penalties under section 1906 of title 18, United States
        Code, if -

              (i) by virtue of employment or official position, the
            officer or employee has possession of or access to any
            book, record, or information made available under this
            subsection and established as confidential under
            subparagraph (C); and

              (ii) the officer or employee discloses the material
            in any manner other than to an officer or employee of
            the same Federal agency employing the officer or
            employee, or other than pursuant to the exemptions
            under section 1906.

      (4) Agency resources. - The Task Force may, with the consent
    of any Federal agency or department represented on the Task
    Force, utilize the information, services, staff and facilities
    of such agency or department on a reimbursable basis, to assist
    the Task Force in carrying out its duties under this section.

      (5) Mails. - The Task Force may use the United States mails
    in the same manner and under the same conditions as other
    Federal agencies.

      (6) Contracting. - The Task Force may, to such extent and in
    such amounts as are provided in appropriations Acts, enter into
    contracts with private firms, institutions, and individuals for
    the purpose of discharging its duties under this section.

      (7) Staff. - The Task Force may appoint and fix the
    compensation of such personnel as it deems advisable, in
    accordance with the provisions of title 5, United States Code,
    governing appointments to the competitive service, and the
    provisions of chapter 51 and subchapter III of chapter 53 of
    such title, relating to classification of General Schedule pay
    rates.

  (g) Independent Evaluation. - The Comptroller General of the
United States shall be authorized to conduct an independent
analysis of the findings and recommendations submitted by the Task
Force to the Congress under this section.

  (h) Authorization of Appropriations. - There are authorized to be
appropriated to carry out this section not to exceed $6,000,000 for
fiscal year 1993 and $6,252,000 for fiscal year 1994. Funds
appropriated under this subsection shall remain available until
expended.

SEC. 544. DEFINITIONS.

  For purposes of this subtitle:

      (1) The term 'multifamily housing' means a property
    consisting of more than 4 dwelling units.

      (2) The term 'qualified housing finance agency' means any
    State or local housing finance agency that -

          (A) carries the designation of 'top tier' or its
        equivalent, as evaluated by Standard and Poors or any other
        nationally recognized rating agency;

          (B) receives a rating of 'A' for its general obligation
        bonds from a nationally recognized rating agency; or

          (C) otherwise demonstrates its capacity as a sound and
        experienced agency based on, but not limited to, its
        experience in financing multifamily housing, fund balances,
        administrative capabilities, investment policy, internal
        controls and financial management, portfolio quality, and
        State or local support.

      (3) The term 'reinsurance agreement' means a contractual
    obligation under which the Secretary, in exchange for
    appropriate compensation, agrees to assume a specified portion
    of the risk of loss that a lender or other party has previously
    assumed with respect to a mortgage on a multifamily housing
    property.

      (4) The term 'Secretary' means the Secretary of Housing and
    Urban Development.