HCDA -- TITLE I AND TITLE II

                    TITLE I - HOUSING ASSISTANCE

                  SUBTITLE A - GENERAL PROVISIONS

SEC. 101. LOW-INCOME HOUSING AUTHORIZATION.

  (a) Aggregate Budget Authority. - Section 5(c)(6) of the United
States Housing Act of 1937 (42 U.S.C. 1437c(c)(6)) is amended by
adding at the end the following new sentence: 'The aggregate amount
of budget authority that may be obligated for assistance referred
to in paragraph (7) is increased (to the extent approved in
appropriation Acts) by $14,710,990,520 on October 1, 1992, and by
$15,328,852,122 on October 1993.'.

  (b) Utilization of Budget Authority. - Section 5(c)(7) of the
United States Housing Act of 1937 (42 U.S.C. 1437c(c)(7)) is
amended by striking the paragraph designation and all that follows
through the end of subparagraph (B) and inserting the following:

  '(7)(A) Using the additional budget authority provided under
paragraph (6) and the balances of budget authority that become
available during fiscal year 1993, the Secretary shall, to the
extent approved in appropriation Acts, reserve authority to enter
into obligations aggregating -

      '(i) for public housing grants under subsection (a)(2), not
    more than $830,900,800, of which amount not more than
    $257,320,000 shall be available for Indian housing;

      '(ii) for assistance under section 8, not more than
    $1,977,662,720, of which $20,000,000 shall be available for
    15-year contracts for project-based assistance to be used for a
    multicultural tenant empowerment and homeownership project
    located in the District of Columbia, except that assistance
    provided for such project shall not be considered for purposes
    of the percentage limitations under section 8(i)(2); except
    that not more than 49 percent of any amounts appropriated under
    this clause may be used for vouchers under section 8(o);

      '(iii) for comprehensive improvement assistance grants under
    section 14(k), not more than $3,100,000,000;

      '(iv) for assistance under section 8 for property
    disposition, not more than $93,032,000;

      '(v) for assistance under section 8 for loan management, not
    more than $202,000,000;

      '(vi) for extensions of contracts expiring under section 8,
    not more than $6,746,135,000, which shall be for 5-year
    contracts for assistance under section 8 and for loan
    management assistance under such section;

      '(vii) for amendments to contracts under section 8, not more
    than $1,350,000,000;

      '(viii) for public housing lease adjustments and amendments,
    not more than $83,055,000;

      '(ix) for conversions from leased housing contracts under
    section 23 of this Act (as in effect immediately before the
    enactment of the Housing and Community Development Act of 1974)
    to assistance under section 8, not more than $12,767,000; and

      '(x) for grants under section 24 for revitalization of
    severely distressed public housing, not more than $300,000,000.

  '(B) Using the additional budget authority provided under
paragraph (6) and the balances of budget authority that become
available during fiscal year 1994, the Secretary shall, to the
extent approved in appropriation Acts, reserve authority to enter
into obligations aggregating -

      '(i) for public housing grants under subsection (a)(2), not
    more than $865,798,634, of which amount not more than
    $268,127,440 shall be available for Indian housing;

      '(ii) for assistance under section 8, not more than
    $2,060,724,554, of which $20,000,000 shall be available for
    15-year contracts for project-based assistance to be used for a
    multicultural tenant empowerment and homeownership project
    located in the District of Columbia, except that assistance
    provided for such project shall not be considered for purposes
    of the percentage limitations under section 8(i)(2); except
    that not more than 49 percent of any amounts appropriated under
    this clause may be used for vouchers under section 8(o);

      '(iii) for comprehensive improvement assistance grants under
    section 14(k), not more than $3,230,200,000;

      '(iv) for assistance under section 8 for property
    disposition, not more than $96,939,344;

      '(v) for assistance under section 8 for loan management, not
    more than $210,484,000;

      '(vi) for extensions of contracts expiring under section 8,
    not more than $7,029,472,670, which shall be for 5-year
    contracts for assistance under section 8 and for loan
    management assistance under such section;

      '(vii) for amendments to contracts under section 8, not more
    than $1,406,700,000;

      '(viii) for public housing lease adjustments and amendments,
    not more than $86,543,310;

      '(ix) for conversions from leased housing contracts under
    section 23 of this Act (as in effect immediately before the
    enactment of the Housing and Community Development Act of 1974)
    to assistance under section 8, not more than $13,303,214; and

      '(x) for grants under section 24 for revitalization of
    severely distressed public housing, not more than
    $312,600,000.'.

SEC. 102. EXTENSION OF CEILING RENTS.

  (a) Removal of 5-Year Limit. - Section 3(a)(2)(A) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)(A)) is amended by
striking 'for not more than a 5-year period'.

  (b) Extension of Previous Ceiling Rents. - Section 3(a)(2)(B) of
the United States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)(B)) is
amended -

      (1) by striking the first sentence; and

      (2) in the last sentence, by striking 'for the 5-year period
    beginning on such date of enactment' and inserting 'without
    time limitation'.

SEC. 103. DEFINITIONS OF INCOME AND ADJUSTED INCOME AND
APPLICABILITY TO INDIAN HOUSING PROGRAMS.

  (a) In General  . -

      (1) Income  . - Section 3(b)(4) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)(4)) is amended by inserting after
'family' the following: 'and any amounts which would be eligible
for exclusion under section 1613(a)(7) of the Social Security Act
(42 U.S.C. 1382b(a)(7))'.

      (2) Adjusted income  . - Section 3(b)(5) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended -

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

          '(D) child care expenses to the extent necessary to
        enable another member of the family to be employed or to
        further his or her education;';

          (B) by striking 'and' at the end of subparagraph (E);

          (C) by striking the period at the end of subparagraph (F)
        and inserting '; and'; and

          (D) by inserting after subparagraph (F) the following new
        subparagraph:

          '(G) excessive travel expenses, not to exceed $25 per
        family per week, for employment- or education-related
        travel, except that this subparagraph shall apply only to
        families assisted by Indian housing authorities.'.

      (3) Budget compliance  . - To the extent that the amendments
made by paragraphs (1) and (2) result in additional costs under
this title, such amendments shall be effective only to the extent
that amounts to cover such additional costs are provided in advance
in appropriation Acts.

  (b) Applicability of Definitions to Indian Housing  . -

      (1) In general. - In accordance with section 201(b)(2) of the
    United States Housing Act of 1937 (42 U.S.C. 1437aa(b)(2)), the
    provisions of sections 572, 573, and 574 of the
    Cranston-Gonzalez National Affordable Housing Act shall apply
    to public housing developed or operated pursuant to a contract
    between the Secretary of Housing and Urban Development and an
    Indian Housing Authority.

      (2) Effective date. - Paragraph (1) shall take effect as if
    such provision were enacted upon the date of the enactment of
    the Cranston-Gonzalez National Affordable Housing Act.

SEC. 104. PUBLIC AND SECTION 8 HOUSING TENANT PREFERENCE RULES.

  Not later than the expiration of the 180-day period beginning on
the date of the enactment of this Act, the Secretary of Housing and
Urban Development shall issue regulations implementing the
amendments made by sections 501 and 545 of the Cranston-Gonzalez
National Affordable Housing 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) and shall take effect upon issuance.

SEC. 105. INCOME ELIGIBILITY FOR ASSISTED HOUSING.

  (a) Exemption from Waiting List Requirements  . - Section 16(c)
of the United States Housing Act of 1937 (42 U.S.C. 1437n(c)) is
amended -

      (1) in the first sentence, by striking the second comma and
    inserting 'and';

      (2) in the first sentence, by striking ', and shall' and
    inserting '. In developing such admission procedures, the
    Secretary shall'; and

      (3) by inserting before the period at the end of the
    penultimate sentence the following: '; except that such
    prohibition shall not apply with respect to families selected
    for occupancy in public housing under the system of preferences
    established by the agency pursuant to section 6(c)(4)(A)(ii)'.

  (b) Exemption from Eligibility Restrictions  . - Section 16(d)(2)
of the United States Housing Act of 1937 (42 U.S.C. 1437n(d)(2)) is
amended by inserting before the period ', to scattered site public
housing dwelling units sold or intended to be sold to public
housing tenants under section 5(h) of this title.'.

SEC. 106. FAMILY SELF-SUFFICIENCY PROGRAM.

  (a) Reservation of Operating Subsidies. - The last sentence of
section 23(h)(2) of the United States Housing Act of 1937 (42
U.S.C. 1437u(h)(2)) is amended to read as follows: 'Of any amounts
appropriated under section 9(c) for fiscal year 1993, $25,000,000
is authorized to be used for costs under this paragraph, and of any
amounts appropriated under such section for fiscal year 1994,
$25,900,000 is authorized to be used for costs under this
paragraph.'.

  (b) Exception to Required Establishment of Program. - Section
23(b)(2) of the United States Housing Act of 1937 (42 U.S.C.
1437u(b)(2)) is amended by striking subparagraphs (A) through (D)
and inserting the following:

          '(A) lack of supportive services accessible to eligible
        families, which shall include insufficient availability of
        resources for programs under the Job Training Partnerships
        Act or the Job Opportunities and Basic Skills Training
        Program under part F of title IV of the Social Security
        Act;

          '(B) lack of funding for reasonable administrative costs;

          '(C) lack of cooperation by other units of State or local
        government; or

          '(D) any other circumstances that the Secretary may
        consider appropriate.

    In allocating assistance available for reservation under this
    Act, the Secretary may not refuse to provide assistance or
    decrease the amount of assistance that would otherwise be
    provided to any public housing agency because the agency has
    provided a certification under this paragraph or because,
    pursuant to a certification, the agency has failed to carry out
    a self-sufficiency program.'.

  (c) Nonparticipation  . - Section 23(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437u(b)) is amended by adding at
the end the following new paragraph:

      '(4) Nonparticipation  . - Assistance under the certificate
or voucher programs under section 8 for a family that elects not to
participate in a local program shall not be delayed by reason of
such election.'.

  (d) Contract of Participation. - Section 23(c)(1) of the United
States Housing Act of 1937 (42 U.S.C. 1437u(c)(1)) is amended -

      (1) in the second sentence, by inserting after 'program' the
    following: ', shall establish specific interim and final goals
    by which compliance with and performance of the contract may be
    measured,'; and

      (2) by striking the last sentence and inserting the following
    new sentences: 'The contract shall provide that the public
    housing agency may terminate or withhold assistance under
    section 8 and services under paragraph (2) of this subsection
    if the public housing agency determines, through an
    administrative grievance procedure in accordance with the
    requirements of section 6(k), that the family has failed to
    comply with the requirements of the contract without good cause
    (which may include a loss or reduction in access to supportive
    services, or a change in circumstances that makes the family or
    individual unsuitable for participation).'.

  (e) Supportive Services. - The first sentence of section 23(c)(2)
of the United States Housing Act of 1937 (42 U.S.C. 1437u(c)(2)) is
amended by striking 'to each participating family' the second place
it appears.

  (f) Escrow Savings Accounts. -  Section 23(d)(2) of the United
States Housing Act of 1937 (42 U.S.C. 1437u(d)(2)) is amended in
the last sentence by striking 'only after' and all that follows
through the end of the sentence and inserting the following: 'after
the family ceases to receive income assistance under Federal or
State welfare programs, upon successful performance of the
obligations of the family under the contract of participation
entered into by the family under subsection (c), as determined
according to the specific goals and terms included in the contract,
and under other circumstances in which the Secretary determines an
exception for good cause is warranted.  A public housing agency
establishing such escrow accounts may make certain amounts in the
accounts available to the participating families before full
performance of the contract obligations based on compliance with,
and completion of, specific interim goals included in the contract;
except that any such amounts shall be used by the participating
families for purposes consistent with the contracts of
participation, as determined by the public housing agency.'.

  (g) Incentives for Participation  . - Section 23(d) of the United
States Housing Act of 1937 (42 U.S.C. 1437u(d)) is amended -

      (1) by striking the subsection designation and heading and
    inserting the following:

  '(d) Incentives for Participation  . - '; and

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

      '(3) Plan  . - Each public housing agency carrying out a
local program under this section shall establish a plan to offer
incentives to families to encourage families to participate in the
program.  The plan shall require the establishment of escrow
savings accounts under paragraph (2) and may include any other
incentives designed by the public housing agency.'.

  (h) Action Plan. - Section 23(g)(3) of the United States Housing
Act of 1937 (42 U.S.C. 1437u(g)(3)) is amended -

      (1) in subparagraph (F), by striking 'and' at the end;

      (2) in subparagraph (G), by striking the period at the end
    and inserting '; and';

      (3) by redesignating subparagraphs (D) through (G) (as so
    amended) as subparagraphs (E) through (H), respectively;

      (4) by inserting after subparagraph (C) the following new
    subparagraph:

          '(D) a description of the incentives pursuant to
        subsection (d) offered by the public housing agency to
        families to encourage participation in the program;'; and

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

          '(I) assurances satisfactory to the Secretary that
        nonparticipating families will retain their rights to
        public housing or section 8 assistance notwithstanding the
        provisions of this section.'.

  (i) Definitions. - Section 23(n) of the United States Housing Act
of 1937 (42 U.S.C. 1437u(n)) is amended -

      (1) by redesignating paragraphs (3) and (4) as paragraphs (4)
    and (5), respectively;

      (2) by inserting after paragraph (2) the following new
    paragraph:

      '(3) The term 'eligible family' means a family whose head of
    household is not elderly, disabled, pregnant, a primary
    caregiver for children under the age of 3, or for whom the
    family self-sufficiency program would otherwise be unsuitable.
    Notwithstanding the preceding sentence, a public housing agency
    may enroll such families if they choose to participate in the
    program.'; and

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

      '(6) The term 'vacant unit' means a dwelling unit that has
    been vacant for not less than 9 consecutive months.'.

  (j) Indian Housing. - Section 23(o)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437u(o)(2)) is amended to read as
follows:

      '(2) Applicability to indian public housing authorities. -
    Notwithstanding any other provision of law, the provisions of
    this section shall be optional for Indian housing
    authorities.'.

               SUBTITLE B - PUBLIC AND INDIAN HOUSING

SEC. 111. MAJOR RECONSTRUCTION OF OBSOLETE PROJECTS.

  (a) In General. - Section 5(j)(2) of the United States Housing
Act of 1937 (42 U.S.C. 1437c(j)(2)) is amended to read as follows:

  '(2)(A) Notwithstanding any other provision of law, the Secretary
may reserve not more than 20 percent of any amounts appropriated
for development of public housing in each fiscal year for the
substantial redesign, reconstruction, or redevelopment of existing
obsolete public housing projects or buildings and for the costs of
improving the management and operation of projects undergoing
redesign, reconstruction, or redevelopment under this paragraph (to
the extent that such improvement is necessary to maintain the
physical improvements resulting from such redesign, reconstruction,
or redevelopment).

  '(B) For purposes of this paragraph, the term 'obsolete public
housing project or building' means a public housing project or
building (i) having design or marketability problems resulting in
vacancy in more than 25 percent of the units, or (ii)(I) for which
the costs for redesign, reconstruction, or redevelopment (including
any costs for lead-based paint abatement activities) exceed 70
percent of the total development cost limits for new construction
of similar units in the area, and (II) which has an occupancy
density or a building height that is significantly in excess of
that which prevails in the neighborhood in which the project is
located, a bedroom configuration that could be altered to better
serve the needs of families seeking occupancy to dwellings of the
public housing agency, significant security problems in and around
the project, or significant physical deterioration or inefficient
energy and utility systems.

  '(C) The Secretary shall allocate amounts reserved under this
section to public housing agencies on the basis of a competition
among public housing agencies applying for such amounts.  The
competition shall be based on -

      '(i) the management capability of the public housing agency
    to carry out the redesign, reconstruction, or redevelopment;

      '(ii) the expected term of the useful life of the project or
    building after redesign, reconstruction or redevelopment; and

      '(iii) the likelihood of achieving full occupancy within the
    projects or buildings of the agency that are to be assisted
    under this paragraph.

  '(D) The Secretary shall establish limitations on the total costs
of any project or building receiving amounts under this paragraph
for redesign, reconstruction, and redevelopment.  The cost
limitations shall not be related to the total development cost
system for new development or to the cost limits for modernization
and shall recognize the higher direct costs of such work.

  '(E) Assistance may not be provided under this paragraph for any
project or building assisted under section 14.

  '(F)(i) For each fiscal year for which amounts are reserved or
appropriated for the purposes of this paragraph, the Secretary
shall establish performance goals to evaluate the effectiveness of
the use of such amounts.  The goals shall -

      '(I) be designed to maximize the effectiveness of the
    expenditures in a quantifiable manner; and

      '(II) describe the number of units to be redesigned,
    redeveloped, and reconstructed with such amounts and
    improvements in the management of projects so assisted to be
    accomplished with such amounts.

  '(ii) Not later than 60 days after the end of each such fiscal
year, the Secretary shall submit a report to the Congress, which
shall describe the performance goals established for the fiscal
year, the activities carried out with such amounts, and a statement
of whether the performance goals were met.  If the performance
goals were not met, the report shall contain -

      '(I) an explanation of why the goals were not met and a
    description of any managerial deficiencies or legal problems
    that contributed to not meeting such goals;

      '(II) plans and a schedule for achieving the level of
    performance under such performance goals;

      '(III) recommendations for legislative or regulatory changes
    necessary to achieve the performance goals or improve
    performance; and

      '(IV) a statement of whether the performance goals
    established for the fiscal year were impractical or infeasible,
    and, if so, the factors that contributed and resulted in
    establishing such impractical or infeasible goals and
    recommendations of actions to meet such goals, which may
    include changing the goals or altering or eliminating the
    program under this paragraph for major reconstruction of
    projects.'.

  (b) Modernization and Disposition Requirements. -

      (1) Modernization. - Section 14(c) of the United States
    Housing Act of 1937 (42 U.S.C. 1437l(c)) is amended -

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

              (i) by inserting 'buildings of' after 'for'; and

              (ii) by striking 'which';

          (B) in each of paragraphs (1), (2), (3), and (4), by
        inserting 'which projects' after the paragraph designation;

          (C) in paragraph (3), by striking 'and' at the end;

          (D) by redesignating paragraph (4) as paragraph (5); and

          (E) by inserting after paragraph (3) the following new
        paragraph:

      '(4) which buildings are not assisted under section 5(j)(2);
    and'.

      (2) Demolition and disposition. - Section 18(a) of the United
    States Housing Act of 1937 (42 U.S.C. 1437q(a)) is amended -

          (A) in paragraph (1), by striking 'or' at the end;

          (B) in paragraph (2), by striking the period at the end
        and inserting '; or'; and

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

      '(3) in the case of an application proposing demolition or
    disposition of any portion of a public housing project,
    assisted at any time under section 5(j)(2) -

          '(A) such assistance has not been provided for the
        portion of the project to be demolished or disposed within
        the 10-year period ending upon submission of the
        application; or

          '(B) the property's retention is not in the best interest
        of the tenants or the public housing agency because of
        extraordinary changes in the area surrounding the project
        or other extraordinary circumstances of the project.'.

  (c) Regulations. - The Secretary shall issue regulations
necessary to carry out the amendments made by this section as
provided under section 191 of this Act.

SEC. 112. PUBLIC HOUSING TENANT PREFERENCES.

  Section 6(c)(4)(A)(i) of the United States Housing Act of 1937
(42 U.S.C. 1437d(c)(4)(A)(i)) is amended by striking '70 percent'
and inserting '50 percent'.

SEC. 113. REFORM OF PUBLIC HOUSING MANAGEMENT.

  (a) Independent Management Assessment. -  Section 6(j)(2) of the
United States Housing Act of 1937 (42 U.S.C. 1437d(j)(2)) is
amended -

      (1) by redesignating subparagraph (B) as subparagraph (C);

      (2) by inserting after subparagraph (A) the following new
    subparagraph:

  '(B)(i) Upon designating a public housing agency as troubled
pursuant to subparagraph (A) and determining that an assessment
under this subparagraph will not duplicate any review conducted
under section 14(p), the Secretary shall provide for an on-site,
independent assessment of the management of the agency.

  '(ii) To the extent the Secretary deems appropriate (taking into
account an agency's performance under the indicators specified
under paragraph (1)), the assessment team shall also consider
issues relating to the agency's resident population and physical
inventory, including the extent to which (I) the agency's
comprehensive plan prepared pursuant to section 14 adequately and
appropriately addresses the rehabilitation needs of the agency's
inventory, (II) residents of the agency are involved in and
informed of significant management decisions, and (III) any
projects in the agency's inventory are severely distressed and
eligible for assistance pursuant to section 24.

  '(iii) An independent assessment under this subparagraph shall be
carried out by a team of knowledgeable individuals selected by the
Secretary (referred to in this section as the 'assessment team')
with expertise in public housing and real estate management.  In
conducting an assessment, the assessment team shall consult with
the residents and with public and private entities in the
jurisdiction in which the public housing is located.  The
assessment team shall provide to the Secretary and the public
housing agency a written report, which shall contain, at a minimum,
recommendations for such management improvements as are necessary
to eliminate or substantially remedy existing deficiencies.'; and

      (3) in subparagraph (C), as so redesignated by paragraph (1)
    -

          (A) by striking 'agency setting forth' and inserting the
        following: 'agency, after reviewing the report submitted
        pursuant to subparagraph (B) and consulting with the
        agency's assessment team.  Such agreement shall set forth';
        and

          (B) by inserting before the second sentence the following
        new flush sentence:

'To the extent the Secretary deems appropriate (taking into account
an agency's performance under the indicators specified under
paragraph (1)), such agreement shall also set forth a plan for
enhancing resident involvement in the management of the public
housing agency.'.

  (b) Additional Statutory Remedies. -  Section 6(j)(3)(A) of the
United States Housing Act of 1937 (42 U.S.C. 1437d(j)(3)(A)) is
amended -

      (1) in clause (i), by inserting after 'agents' the first
    place it appears the following: '(which may be selected by
    existing tenants through administrative procedures established
    by the Secretary)';

      (2) at the end of clause (ii), by striking 'and';

      (3) by redesignating clause (iii) as clause (iv);

      (4) by inserting after clause (ii) the following new clause:

      '(iii) solicit competitive proposals from other public
    housing agencies and private entities with experience in
    construction management in the eventuality that such agencies
    or firms may be needed to oversee implementation of assistance
    made available under section 14 for the housing; and'; and

      (5) by adding at the end the following new flush sentence:

'Residents of a public housing agency designated as troubled
pursuant to paragraph (2)(A) may petition the Secretary in writing
to take 1 or more of the actions referred to in this subparagraph.
The Secretary shall respond to such petitions in a timely manner
with a written description of the actions, if any, the Secretary
plans to take and, where applicable, the reasons why such actions
differ from the course proposed by the residents.'.

  (c) Resources. - Section 6(j)(3) of the United States Housing Act
of 1937 (42 U.S.C. 1437d(j)(3)) is amended -

      (1) by redesignating subparagraphs (B) and (C) as
    subparagraphs (C) and (D), respectively; and

      (2) by inserting after subparagraph (A) the following new
    subparagraph:

  '(B) The Secretary may make available to receivers and other
entities selected or appointed pursuant to this paragraph such
assistance as is necessary to remedy the substantial deterioration
of living conditions in individual public housing developments or
other related emergencies that endanger the health, safety and
welfare of the residents.'.

  (d) Annual Reports. -  Section 6(j)(5)(E) of the United States
Housing Act of 1937 (42 U.S.C. 1437d(j)(4)(E)), as so redesignated
by subsection (d)(1), is amended by inserting before the semicolon
the following: ', including an accounting of the authorized funds
that have been expended to support such actions'.

  (e) Applicability. -

      (1) Assessment of resident management corporations. -
Section 6(j)(1) of the United States Housing Act of 1937 (42 U.S.C.
1437d(j)(1)) is amended -

          (A) in the first sentence, by inserting 'and resident
        management corporations' before the period;

          (B) in the third sentence, by inserting 'and resident
        management corporations' after 'agencies'; and

          (C) in the fourth sentence, by striking 'indicators.' and
        inserting 'indicators for public housing agencies, to the
        extent practicable:'.

      (2) Procedures. - Section 6(j)(2) of the United States
    Housing Act of 1937, as amended by subsection (a) of this
    section, is further amended by adding at the end the following
    new subparagraph:

          '(D) The Secretary shall apply the provisions of this
        paragraph to resident management corporations as well as
        public housing agencies.'.

SEC. 114. PUBLIC HOUSING OPERATING SUBSIDIES.

  (a) Authorization of Appropriations. - Section 9(c) of the United
States Housing Act of 1937 (42 U.S.C. 1437g(c)) is amended to read
as follows:

  '(c)(1) There are authorized to be appropriated for purposes of
providing annual contributions under this section $2,282,436,000
for fiscal year 1993 and $2,378,298,312 for fiscal year 1994.

  '(2) There are also authorized to be appropriated to provide
annual contributions under this section, in addition to amounts
under paragraph (1), such sums as may be necessary for each of
fiscal years 1993 and 1994, to provide each public housing agency
with the difference between (A) the amount provided to the agency
from amounts appropriated pursuant to paragraph (1), and (B) all
funds for which the agency is eligible under the performance
funding system without adjustments for estimated or unrealized
savings.

  '(3) In addition to amounts under paragraphs (1) and (2), there
are authorized to be appropriated for annual contributions under
this section to provide for the costs of the adjustments to income
and adjusted income under the amendments made by sections 573(b)
and (c) of the Cranston-Gonzalez National Affordable Housing Act
such sums as may be necessary for fiscal years 1993 and 1994.'.

  (b) Adjustment of Performance Funding System. - Section
9(a)(3)(A) of the United States Housing Act of 1937 (42 U.S.C.
1437g(a)(3)(A)) is amended by inserting after the period at the end
the following new sentence: 'Notwithstanding sections 583(a) and
585(a) of title 5, United States Code (as added by section 3(a) of
the Negotiated Rulemaking Act of 1990), any proposed regulation
providing for amendment, alteration, adjustment, or other change to
the performance funding system relating to vacant public housing
units shall be issued pursuant to a negotiated rulemaking procedure
under subchapter IV of chapter 5 of such title (as added by section
3(a) of the Negotiated Rulemaking Act of 1990), and the Secretary
shall establish a negotiated rulemaking committee for development
of any such proposed regulations.'.

  (c) Energy Savings  . - Section 9(a)(3)(B)(i) of the United
States Housing Act of 1937 is amended by inserting before the
semicolon at the end the following: ', and in subsequent years, if
the energy savings are cost-effective, the Secretary may continue
the sharing arrangement with the public housing agency for a period
not to exceed 6 years'.

SEC. 115. PUBLIC HOUSING VACANCY REDUCTION.

  (a) Funding. - Section 14(p)(5) of the United States Housing Act
of 1937 (42 U.S.C. 1437l(p)(5)) is amended to read as follows:

  '(5)(A) Of any amounts available under this section in each of
fiscal years 1993 and 1994 (after amounts are reserved pursuant to
subsection (k)(1)), an amount equal to 4 percent of such remaining
funds shall be available in each such fiscal year for the purposes
under subparagraph (B).

  '(B) Of such amounts available under subparagraph (A) in each
such fiscal year -

      '(i) 20 percent shall be available only for carrying out
    activities under section 6(j); and

      '(ii) 80 percent shall be available for carrying out this
    subsection.'.

  (b) Scope of Program  . - Section 14(p)(1) of the United States
Housing Act of 1937 (42 U.S.C. 1437l(p)(1)) is amended -

      (1) by striking 'or that' and inserting ', that'; and

      (2) by inserting after '6(j),' the following: 'or for which a
    receiver has been appointed pursuant to section 6(j)(3),'.

  (c) Vacancy Reduction Assistance  . - Section 14(p)(4) of the
United States Housing Act of 1937 (42 U.S.C. 1437l(p)(4)) is
amended -

      (1) in subparagraph (B), by inserting before the semicolon
    the following: ', except that the Secretary may provide
    assistance to a public housing agency designated as a troubled
    agency for the purposes under this subparagraph only if the
    Secretary determines that the agency is making substantial
    progress in remedying management deficiencies, if any, or that
    the agency has provided reasonable assurances that such
    progress will be made'; and

      (2) in subparagraph (C), by inserting before the semicolon
    the following: ', except that the Secretary may provide
    assistance to a public housing agency designated as a troubled
    agency for the purposes under this subparagraph only if the
    Secretary determines that the agency is making substantial
    progress in remedying management deficiencies, if any, or that
    the agency has provided reasonable assurances that such
    progress will be made'.

  (d) Availability of Assistance. - Section 14(p)(4) of the United
States Housing Act of 1937 (42 U.S.C. 1437l(p)(4)) is amended by
striking the first comma and all that follows through the second
comma and inserting ', subject to the availability of amounts under
paragraph (6),'.

  (e) Use of Amounts for Assessment Teams. - Section 14(p)(3) of
the United States Housing Act of 1937 (42 U.S.C. 1437l(p)(3)) is
amended by adding at the end the following new subparagraph:

  '(D) The Secretary may use amounts made available under paragraph
(6) for any travel and administrative expenses of assessment teams
under this paragraph.'.

  (f) Assessment Team. - The second sentence of section 14(p)(3)(A)
of the United States Housing Act of 1937 (42 U.S.C. 1437l(p)(3)(A))
is amended -

      (1) by striking 'and' after 'Development' and inserting a
    comma; and

      (2) by striking 'who' and inserting 'and officials of the
    public housing agency, all of whom'.

  (g) Reservation of Annual Contributions for Activities Under
Plan. - Section 14(p) of the United States Housing Act of 1937 (42
U.S.C. 1437l(p)) is amended -

      (1) by redesignating paragraphs (3), (4), and (5) (as amended
    by the preceding provisions of this section) as paragraphs (4),
    (5), and (6), respectively; and

      (2) by inserting after paragraph (2) the following new
    paragraph:

  '(3)(A) Upon the expiration of the 24-month period beginning upon
the receipt of assistance under paragraph (5) by a public housing
agency, the Secretary shall, after reviewing the progress made in
complying with the plan, reserve from the annual contribution
attributable to each unit vacant for the 24-month period an amount
determined by the Secretary but not exceeding 80 percent of such
contribution.  The Secretary may not reserve any amounts under this
subparagraph for any vacant dwelling unit that is vacant because of
modernization, reconstruction, or lead-based paint reduction
activities.

  '(B) The Secretary shall deposit any amounts reserved under
subparagraph (A) in a separate account established on behalf of the
public housing agency, and such amounts shall be available to the
agency only for the purpose of carrying out activities in
compliance with the vacancy reduction plan of the agency.

  '(C) If, after the expiration of the 24-month period beginning
upon the reservation under subparagraph (A) of amounts for a public
housing agency, the Secretary determines that the agency has not
made significant progress to comply with the provisions of the
vacancy reduction plan of the agency, the amount remaining in the
account for the agency established under subparagraph (B) shall be
recaptured by the Secretary.'.

  (h) Technical Corrections. - Section 14(p)(2) of the United
States Housing Act of 1937 (42 U.S.C. 1437l(p)(2)) is amended -

      (1) in clause (D), by striking 'modernization,
    reconstruction' and inserting 'comprehensive modernization,
    major reconstruction'; and

      (2) in clause (E), by striking 'the modernization' and
    inserting 'the comprehensive modernization'.

SEC. 116. PUBLIC HOUSING DEMOLITION AND DISPOSITION.

  (a) Coordination With Tenants. - Section 18(b)(1) of the United
States Housing Act of 1937 (42 U.S.C. 1437p(b)(1)) is amended by
inserting 'of the project or portion of the project covered by the
application' after 'tenant cooperative'.

  (b) Replacement Plan  . - Section 18(b)(3) of the United States
Housing Act of 1937 (42 U.S.C. 1437p(b)(3)) is amended -

      (1) in subparagraph (A) -

          (A) in clause (ii), by inserting before the semicolon at
        the end the following: 'to the extent available; or if such
        assistance is not available, in the case of an application
        proposing demolition or disposition of 200 or more units,
        the use of available project-based assistance under section
        8 having a term of not less than 5 years';

          (B) in clause (iii), by inserting before the semicolon at
        the end the following: 'to the extent available; or if such
        assistance is not available, in the case of an application
        proposing demolition or disposition of 200 or more units,
        the use of available project-based assistance under other
        Federal programs having a term of not less than 5 years';
        and

          (C) in clause (v), by inserting before the semicolon the
        following: 'to the extent available; or if such assistance
        is not available, in the case of an application proposing
        demolition or disposition of 200 or more units, the use of
        tenant-based assistance under section 8 (excluding vouchers
        under section 8(o)) having a term of not less than 5
        years';

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

      (3) by redesignating subparagraphs (B) through (G) as
    subparagraphs (C) through (H), respectively;

      (4) by inserting after subparagraph (A) the following new
    subparagraph:

          '(B) in the case of an application proposing demolition
        or disposition of 200 or more units, shall provide that
        (notwithstanding the limitation under section 8(d)(2)(A) on
        the amount of project-based assistance provided by an
        agency) -

              '(i) not less than 50 percent of such additional
            dwelling units shall be provided through the
            acquisition or development of additional public housing
            dwelling units or through project-based assistance; and

              '(ii) not more than 50 percent of such additional
            dwelling units shall be provided through tenant-based
            assistance under section 8 (excluding vouchers under
            section 8(o)) having a term of not less than 5 years;';
            and

      (5) by adding at the end the following new flush matter:

    'except that, in any 5-year period, a public housing agency may
    demolish not more than the lesser of 5 dwelling units or 5
    percent of the total dwelling units owned and operated by the
    public housing agency, without providing an additional dwelling
    unit for each such public housing dwelling unit to be
    demolished, but only if the space occupied by the demolished
    unit is used for meeting the service or other needs of public
    housing residents.'.

  (c) Set-Asides for Replacement Housing  . - Section 18 of the
United States Housing Act of 1937 (42 U.S.C. 1437p) is amended -

      (1) by redesignating subsection (e) as subsection (f); and

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

  '(e)(1) In each of fiscal years 1993 and 1994, the Secretary may
reserve from any budget authority appropriated for such year for
assistance under section 8 that is available for families not
currently receiving such assistance not more than 10 percent of
such budget authority for providing replacement housing under
subsection (b)(3)(A) for units demolished or disposed of pursuant
to this section.

  '(2) In each of fiscal years 1993 and 1994, the Secretary may
reserve from any budget authority appropriated for such year for
development of public housing under section 5(a)(2) not more than
the lesser of 30 percent of such budget authorization or
$150,000,000, for providing replacement housing under subsection
(b)(3)(A) for units demolished or disposed of pursuant to this
section.'.

  (d) Yolo County Housing Authority  . - The Secretary of Housing
and Urban Development shall approve the application for disposition
by the Yolo County Housing Authority (CA30-PO-003 and
CA30-PO44-099), provided that the application states that the
tenant councils, resident management corporation, and tenant
cooperative, if any, shall be given appropriate opportunities to
purchase the new replacement units, which shall be available and
ready for occupancy before the disposition of the existing subject
units.  The new units shall be considered public housing for the
purposes of the United States Housing Act of 1937 for which the
Secretary shall provide annual contributions for operation using
any amounts made available under section 9(c).

SEC. 117. PUBLIC HOUSING RESIDENT MANAGEMENT.

  Section 20(f)(3) of the United States Housing Act of 1937 (42
U.S.C. 1437r(f)(3)) is amended to read as follows:

      '(3) Authorization of appropriations. - There are authorized
    to be appropriated to carry out this subsection $4,750,000 for
    fiscal year 1993 and $4,949,500 for fiscal year 1994.'.

SEC. 118. PUBLIC HOUSING HOMEOWNERSHIP.

  (a) Homeownership Assistance. - Section 21(a)(2)(C) of the United
States Housing Act of 1937 (42 U.S.C. 1437s(a)(2)(C)) is amended -

      (1) in the first sentence, by striking 'the effective date of
    the regulations implementing title III of this Act' and
    inserting 'February 4, 1991'; and

      (2) in the second sentence -

          (A) by striking 'effective'; and

          (B) by striking 'such Act' and inserting 'the
        Cranston-Gonzalez National Affordable Housing Act'.

  (b) Conditions of Purchase. - Section 21(a)(3)(C) of the United
States Housing Act of 1937 (42 U.S.C. 1437s(a)(3)(C)) is amended -

      (1) in the first sentence, by striking 'the effective date of
    the regulations implementing title III of this Act' and
    inserting 'February 4, 1991'; and

      (2) in the second sentence -

          (A) by striking 'effective'; and

          (B) by striking 'such title' and inserting 'the
        Cranston-Gonzalez National Affordable Housing Act'.

SEC. 119. PUBLIC HOUSING FAMILY INVESTMENT CENTERS.

  Section 22(k) of the United States Housing Act of 1937 (42 U.S.C.
1437t(k)) is amended to read as follows:

  '(k) Authorization of Appropriations. - There are authorized to
be appropriated to carry out this section $25,000,000 for fiscal
year 1993 and $26,050,000 for fiscal year 1994.'.

SEC. 120. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.

  Title I of the United States Housing Act of 1937 (42 U.S.C. 1437
et seq.) is amended by adding at the end the following new section:

'SEC. 24. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.

  '(a) Program Authority. -  The Secretary may make -

      '(1) planning grants under subsection (c) to enable
    applicants to develop revitalization programs for severely
    distressed public housing in accordance with this section; and

      '(2) implementation grants under subsection (d) to carry out
    revitalization programs for severely distressed public housing
    in accordance with this section.

  '(b) Designation of Eligible Projects. -

      '(1) Identification. - Not later than 90 days after the date
    of enactment of the Housing and Community Development Act of
    1992, public housing agencies shall identify, in such form and
    manner as the Secretary may prescribe, any public housing
    projects that they consider to be severely distressed public
    housing for purposes of receiving assistance under this
    section.

      '(2) Review by secretary. - The Secretary shall review the
    projects identified pursuant to paragraph (1) to ascertain
    whether the projects are severely distressed housing (as such
    item is defined in subsection (h)). Not later than 180 days
    after the date of enactment of this section, the Secretary
    shall publish a list of those projects that the Secretary
    determines are severely distressed public housing.

      '(3) Appeal of secretary's determination. - The Secretary
    shall establish procedures for public housing agencies to
    appeal the Secretary's determination that a project identified
    by a public housing agency is not severely distressed.

  '(c) Planning Grants. -

      '(1) In general. -  The Secretary may make planning grants
under this subsection to applicants for the purpose of developing
revitalization programs for severely distressed public housing
under this section.

      '(2) Amount. - The amount of a planning grant under this
    subsection may not exceed $200,000 per project, except that the
    Secretary may for good cause approve a grant in a higher
    amount.

      '(3) Eligible activities. - A planning grant may be used for
    activities to develop revitalization programs for severely
    distressed public housing, including -

          '(A) studies of the different options for revitalization,
        including the feasibility, costs and neighborhood impact of
        such options;

          '(B) providing technical or organizational support to
        ensure resident involvement in all phases of the planning
        and implementation processes;

          '(C) improvements to stabilize the development, including
        security investments;

          '(D) conducting workshops to ascertain the attitudes and
        concerns of the neighboring community;

          '(E) preliminary architectural and engineering work;

          '(F) planning for economic development, job training and
        self-sufficiency activities that promote the economic
        self-sufficiency of residents under the revitalization
        program;

          '(G) designing a suitable replacement housing plan, in
        situations where partial or total demolition is considered;

          '(H) planning for necessary management improvements; and

          '(I) preparation of an application for an implementation
        grant under this section.

      '(4) Applications. - An application for a planning grant
    shall be submitted in such form and in accordance with such
    procedures as the Secretary shall establish. The Secretary
    shall require that an application contain at a minimum -

          '(A) a request for a planning grant, specifying the
        activities proposed, the schedule for completing the
        activities, the personnel necessary to complete the
        activities and the amount of the grant requested;

          '(B) a description of the applicant and a statement of
        its qualifications;

          '(C) identification and description of the project
        involved, and a description of the composition of the
        tenants, including family size and income;

          '(D) a certification by the public official responsible
        for submitting the comprehensive housing affordability
        strategy under section 105 of the Cranston-Gonzalez
        National Affordable Housing Act that the proposed
        activities are consistent with the approved housing
        strategy of the State or unit of general local government
        within which the project is located; and

          '(E) a certification that the applicant will comply with
        the requirements of the Fair Housing Act, title VI of the
        Civil Rights Act of 1964, section 504 of the Rehabilitation
        Act of 1973, and the Age Discrimination Act of 1975, and
        will affirmatively further fair housing.

      '(5) Selection criteria. - The Secretary shall, by
    regulation, establish selection criteria for a national
    competition for assistance under this subsection, which shall
    include -

          '(A) the qualities or potential capabilities of the
        applicant;

          '(B) the extent of resident interest and involvement in
        the development of a revitalization program for the
        project;

          '(C) the extent of involvement of local public and
        private entities in the development of a revitalization
        program for the project and in the provision of supportive
        services to project residents;

          '(D) the potential of the applicant for developing a
        successful and affordable revitalization program and the
        suitability of the project for such a program;

          '(E) national geographic diversity among housing for
        which applicants are selected to receive assistance;

          '(F) the extent of the need for and potential impact of
        the revitalization program; and

          '(G) such other factors that the Secretary determines are
        appropriate for purposes of carrying out the program
        established by this section in an effective and efficient
        manner.

      '(6) Notification. - The Secretary shall notify each
    applicant, not later than 6 months after the date of the
    submission of the application, whether the application is
    approved or disapproved.

  '(d) Implementation Grants. -

      '(1) In general. -  The Secretary may make implementation
grants under this subsection to applicants for the purpose of
carrying out revitalization programs for severely distressed public
housing under this section.

      '(2) Eligible activities. - Implementation grants may be used
    for activities to carry out revitalization programs for
    severely distressed public housing, including -

          '(A) architectural and engineering work;

          '(B) the redesign, reconstruction, or redevelopment of
        the severely distressed public housing development,
        including the site on which the development is located;

          '(C) covering the administrative costs of the applicant,
        which may not exceed such portion of the assistance
        provided under this subsection as the Secretary may
        prescribe;

          '(D) any necessary temporary relocation of tenants during
        the activity specified under subparagraph (B);

          '(E) payment of legal fees;

          '(F) economic development activities that promote the
        economic self-sufficiency of residents under the
        revitalization program;

          '(G) necessary management improvements;

          '(H) transitional security activities; and

          '(I) any necessary support services, except that not more
        than 15 percent of any grant under this subsection may be
        used for such purpose.

      '(3) Application. - An application for a implementation grant
    shall be submitted by an applicant in such form and in
    accordance with such procedures as the Secretary shall
    establish. The Secretary shall require that an application
    contain at a minimum -

          '(A) a request for an implementation grant, specifying
        the amount of the grant requested and its proposed uses;

          '(B) a description of the applicant and a statement of
        its qualifications;

          '(C) identification and description of the project
        involved, and a description of the composition of the
        tenants, including family size and income;

          '(D) a certification by the public official responsible
        for submitting the comprehensive housing affordability
        strategy under section 105 of the Cranston-Gonzalez
        National Affordable Housing Act that the proposed
        activities are consistent with the approved housing
        strategy of the State or unit of general local government
        within which the project is located; and

          '(E) a certification that the applicant will comply with
        the requirements of the Fair Housing Act, title VI of the
        Civil Rights Act of 1964, section 504 of the Rehabilitation
        Act of 1973, and the Age Discrimination Act of 1975, and
        will affirmatively further fair housing.

      '(4) Selection criteria. - The Secretary shall, by
    regulation, establish selection criteria for a national
    competition for assistance under this subsection, which shall
    include -

          '(A) the qualities or potential capabilities of the
        applicant;

          '(B) the extent of resident involvement in the
        development of a revitalization program for the project;

          '(C) the extent of involvement of local public and
        private entities in the development of a revitalization
        program for the project and in the provision of supportive
        services to project residents;

          '(D) the potential of the applicant for developing a
        successful and affordable revitalization program and the
        suitability of the project for such a program;

          '(E) national geographic diversity among housing for
        which applicants are selected to receive assistance;

          '(F) the extent of the need for and potential impact of
        the revitalization program; and

          '(G) such other factors that the Secretary determines are
        appropriate for purposes of carrying out the program
        established by this subtitle in an effective and efficient
        manner.

      '(5) Notification. - The Secretary shall notify each
    applicant, not later than 6 months after the date of the
    submission of the application, whether the application is
    approved or disapproved.

  '(e) Exceptions to General Program Requirements. -

      '(1) Long-term viability. - The Secretary may waive or revise
    rules established under this title governing rents, income
    eligibility, and other areas of public housing management, to
    permit a public housing agency to undertake measures that
    enhance the long-term viability of a severely distressed public
    housing project revitalized under this section.

      '(2) Selection of tenants. - For projects revitalized under
    this section, a public housing agency may select tenants
    pursuant to a local system of preferences, in lieu of selecting
    tenants pursuant to the preferences specified under section
    6(c)(4)(A)(i). Such local system shall be established in
    writing and shall respond to local housing needs and priorities
    as determined by the public housing agency. The public housing
    agency shall hold 1 or more public hearings to obtain the views
    of low-income tenants and other interested parties on the
    housing needs and priorities of the agency's jurisdiction.

  '(f) Other Program Requirements. -

      '(1) Cost limitations. - Subject to the provisions of this
    section, the Secretary -

          '(A) shall establish cost limitations on eligible
        activities under this section sufficient to provide for
        effective revitalization programs; and

          '(B) may establish other cost limitations on eligible
        activities under this section.

      '(2) Economic development. - Not more than an aggregate of
    $250,000 from amounts made available under subsections (c) and
    (d) may be used for economic development activities under
    subsections (c) and (d) for any project, except that the
    Secretary may for good cause waive the applicability of this
    paragraph for a project.

  '(g) Administration. -  For the purpose of carrying out the
revitalization of severely distressed public housing in accordance
with this section, the Secretary shall establish within the
Department of Housing and Urban Development an Office of Severely
Distressed Public Housing Revitalization.

  '(h) Definitions. -  For the purposes of this section:

      '(1) Applicant. - The term 'applicant' means -

          '(A) any public housing agency that is not designated as
        troubled pursuant to section 6(j)(2);

          '(B) any public housing agency or private housing
        management agent selected, or receiver appointed pursuant,
        to section 6(j)(3);

          '(C) any public housing agency that is designated as
        troubled pursuant to section 6(j)(2), if such agency acts
        in concert with a private nonprofit organization, another
        public housing agency that is not designated as a troubled
        agency, resident management corporation or other entity
        approved by the Secretary; and

          '(D) any public housing agency that is designated as
        troubled pursuant to section 6(j)(2) that -

              '(i) is so designated principally for reasons that
            will not affect the capacity of the agency to carry out
            a revitalization program;

              '(ii) is making substantial progress toward
            eliminating the deficiencies of the agency; or

              '(iii) is otherwise determined by the Secretary to be
            capable of carrying out a revitalization program.

      '(2) Private nonprofit corporation. - The term 'private
    nonprofit organization' means any private nonprofit
    organization (including a State or locally chartered nonprofit
    organization) that -

          '(A) is incorporated under State or local law;

          '(B) has no part of its net earnings inuring to the
        benefit of any member, founder, contributor, or individual;

          '(C) complies with standards of financial accountability
        acceptable to the Secretary; and

          '(D) has among its purposes significant activities
        related to the provision of decent housing that is
        affordable to very low-income families.

      '(3) Public housing agency. - The term 'public housing
    agency' has the meaning given the term in section 3(b), except
    that it does not include any Indian housing authority.

      '(4) Resident management corporation. - The term 'resident
    management corporation' means a resident management corporation
    established in accordance with the requirements of the
    Secretary under section 20.

      '(5) Severely distressed public housing. - The term 'severely
    distressed public housing' means a public housing project -

          '(A) that -

              '(i) requires major redesign, reconstruction or
            redevelopment, or partial or total demolition, to
            correct serious deficiencies in the original design
            (including appropriately high population density),
            deferred maintenance, physical deterioration or
            obsolescence of major systems and other deficiencies in
            the physical plant of the project;

              '(ii) is occupied predominantly by families with
            children who are in a severe state of distress,
            characterized by such factors as high rates of
            unemployment, teenage pregnancy, single-parent
            households, long-term dependency on public assistance
            and minimal educational achievement;

              '(iii) is in a location for recurrent vandalism and
            criminal activity (including drug-related criminal
            activity); and

              '(iv) cannot remedy the elements of distress
            specified in clauses (i) through (iii) through
            assistance under other programs, such as the programs
            under section 9 or 14, or through other administrative
            means; or

          '(B) that -

              '(i) is owned by a public housing agency designated
            as troubled pursuant to section 6(j)(2);

              '(ii) has a vacancy rate, as determined by the
            Secretary, of 50 percent or more, unless the project or
            building is vacant because it is awaiting
            rehabilitation under a modernization program under
            section 14 that -

                  '(I) has been approved and funded; and

                  '(II) as determined by the Secretary, is on
                schedule and is expected to result in full
                occupancy of the project or building upon
                completion of the program; and

              '(iii) in the case of individual buildings, the
            building is, in the Secretary's determination,
            sufficiently separable from the remainder of the
            project to make use of the building feasible for
            purposes of this subtitle.

  '(i) Annual Report. -  The Secretary shall submit to the Congress
an annual report setting forth -

      '(1) the number, type, and cost of public housing units
    revitalized pursuant to this section;

      '(2) the status of projects identified as severely distressed
    public housing pursuant to subsection (b);

      '(3) the amount and type of financial assistance provided
    under and in conjunction with this section; and

      '(4) the recommendations of the Secretary for statutory and
    regulatory improvements to the program established by this
    section.'.

SEC. 121. CHOICE IN PUBLIC HOUSING MANAGEMENT.

  (a) Purpose  . - The purpose of this section is to encourage
choice in management of distressed public housing projects by
residents and increased resident management of public housing
projects, as a means of improving living conditions in public
housing projects, by providing for resident councils and resident
management corporations to transfer the management of distressed
projects to alternative managers.

  (b) Amendment to 1937 Act  . - Title I of the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding
after section 24 (as added by section 120 of this Act) the
following new section:

'SEC. 25. CHOICE IN PUBLIC HOUSING MANAGEMENT.

  '(a) Short Title. - This section may be cited as the 'Choice in
Public Housing Management Act of 1992'.

  '(b) Funding. -

      '(1) Rehabilitation and redevelopment grants. - From amounts
    reserved under section 14(k)(2) for each of fiscal years 1993
    and 1994, the Secretary may reserve not more than $50,000,000
    in each such fiscal year for activities under this section
    (which may include funding operating reserves for eligible
    housing transferred under this section).  The Secretary may
    make grants to managers and ownership entities to rehabilitate
    eligible housing in accordance with this section, as
    appropriate.

      '(2) Technical assistance. - The Secretary may use up to 5
    percent of the total amount reserved under paragraph (1) for
    any fiscal year to provide, by contract, technical assistance
    to residents of public housing and resident councils to help
    such residents and councils make informed choices about options
    for alternative management under this section.

  '(c) Program Authority. -

      '(1) Transfer of management. -

          '(A) In general  . - The Secretary may approve not more
than 25 applications submitted for fiscal years 1993 and 1994 by
resident councils for the transfer of the management of distressed
public housing projects, or one or more buildings within projects,
that are owned or operated by troubled public housing agencies,
from public housing agencies to alternative managers.

          '(B) Required votes  . - An application for such transfer
may be submitted and approved only if a majority of the members of
the board of the resident council has voted in favor of the
proposed transfer of management responsibilities, and a majority of
the residents has also voted in favor of the transfer in an
election supervised by a disinterested third party.

          '(C) Assistance of management specialist  . - Any
resident council seeking to transfer management of distressed
public housing under this section shall, in cooperation with the
public housing agency for such housing, select a qualified public
housing management specialist to assist in identifying and
acquiring a capable manager for the housing.

      '(2) Rehabilitation and capital improvements. - The Secretary
    may make rehabilitation grants and provide capital improvement
    funding under subsection (e) in connection with the transfer of
    eligible housing to a manager under this section.

  '(d) Operating Subsidies. -

      '(1) Authority to provide. - The Secretary may make operating
    subsidies under section 9 available to managers under this
    section.

      '(2) Amount of subsidy. - The Secretary shall establish the
    amount of the operating subsidies made available to a manager
    based on the share for the housing under section 9 as
    determined by the Secretary.

      '(3) Effect on pha grant. - Operating subsidies for any
    public housing agency transferring management under this
    section shall be reduced in accordance with the requirements of
    section 9.

  '(e) Rehabilitation Grants and Capital Improvement Funding. -

      '(1) Rehabilitation grants. - An application under subsection
    (f) may request approval of amounts set aside under subsection
    (b) for the rehabilitation of eligible housing.  The manager
    and the Secretary shall enter into a contract governing the use
    of any such assistance provided.

      '(2) Annual capital improvement funding. -

          '(A) Authority to provide. - The Secretary may make
        funding for capital improvements available annually from
        amounts under section 14 to managers of eligible housing.
        In accordance with the contract entered into pursuant to
        subsection (h), each manager receiving such funding shall
        establish a capital improvements reserve account and
        deposit in the account each year an amount not less than
        the annual amount of comprehensive grant funds it
        receives.  Amounts in the reserve account may be used only
        for capital improvements and replacements.

          '(B) Amount of subsidy. - The Secretary shall establish
        the amount made available to a manager under paragraph (1)
        for capital improvements based on the share for the housing
        under the comprehensive grant formula and, to the extent
        practicable, the public housing agency's comprehensive
        grant plan, in accordance with section 14, as determined by
        the Secretary.

          '(C) Limitation in the case of recent rehabilitation. -
        Where eligible housing has received rehabilitation funding
        under paragraph (1) or has otherwise been comprehensively
        modernized within 3 years before the effective date of the
        contract between the Secretary and the manager for
        management of the eligible housing, only the accrual
        portion of the comprehensive grant formula amount shall be
        available for payment to the manager.

          '(D) Effect on pha grant. - The formula amount of a
        comprehensive grant for a public housing agency
        transferring the housing under this section shall be
        reduced in accordance with the requirements of section 14.

      '(3) Relationship to section 14. - The provisions of section
    14 shall apply with respect to rehabilitation grants under
    paragraph (1) or capital improvement funding under paragraph
    (2); except that the Secretary may waive the applicability of
    any of the provisions of such section where such provisions are
    not appropriate to the assistance under this subsection.

  '(f) Application. -

      '(1) Form and procedures. -

          '(A) In general. - To be eligible for approval for
        transfer of management from a public housing agency to a
        manager and for a grant under subsection (e), a resident
        council shall submit an application to the Secretary in
        such form and in accordance with such procedures as the
        Secretary shall establish.

          '(B) PHA comment on application. - A resident council
        submitting an application shall provide the public housing
        agency that owns or operates the housing involved a
        reasonable opportunity to comment on the application, as
        the Secretary shall prescribe.

          '(C) PHA proposal  . - The public housing agency may
present to the resident council a proposal for the continued
management of the housing by the agency, and the resident council
shall give reasonable consideration to any such proposal.

      '(2) Minimum requirements. - The Secretary shall require that
    an application contain -

          '(A) a description of the resident council and
        documentation of its authority;

          '(B) documentation of the votes required under subsection
        (c)(1)(B);

          '(C) a description of the proposed manager selected by
        the applicant (in accordance with procedures established or
        approved by the Secretary) and documentation of its
        capacity to manage the eligible housing;

          '(D) a plan for carrying out the manager's
        responsibilities for managing the eligible housing;

          '(E) documentation that the project (or building or
        buildings) for which management transfer is proposed is
        eligible housing;

          '(F) documentation that each of the requirements under
        paragraph (1)(B) have been fulfilled;

          '(G)(i) if the application includes a request for a
        rehabilitation grant under subsection (e) (which shall be
        included in any application involving eligible housing that
        is 50 percent or more vacant), the basis for the estimate
        of the amount requested, including -

              '(I) the estimate of the eligible housing's need
            under the public housing agency's comprehensive plan
            (under section 14(e)(1)); and

              '(II) an explanation, where appropriate, if an amount
            higher than the amount planned by the agency is being
            requested; or

          '(ii) if the application does not include a request for a
        rehabilitation grant under subsection (e), a demonstration
        that needs for capital improvements and replacement for the
        housing can reasonably be expected to be funded from
        funding for capital improvements under subsection (e);

          '(H) if the manager proposes to administer a program to
        enable residents to achieve economic independence and
        self-sufficiency, a description of the program and evidence
        of commitment of resources to the program;

          '(I) an analysis showing that the planned rehabilitation
        will result in the long-term viability of the housing at a
        reasonable cost;

          '(J) a certification that the manager will comply with
        the requirements of the Fair Housing Act, title VI of the
        Civil Rights Act of 1964, section 504 of the Rehabilitation
        Act of 1973, and the Age Discrimination Act of 1975, and
        will affirmatively further fair housing; and

          '(K) such other information that the Secretary considers
        appropriate.

  '(g) Review and Approval by the Secretary. -

      '(1) Applications not requesting rehabilitation assistance. -
    In the case of applications for the transfer of management of
    public housing that do not include a request for rehabilitation
    assistance under subsection (e), the Secretary may approve an
    application that meets the requirements of subsection (f)(2)
    and this section.

      '(2) Applications requesting rehabilitation grants. - In the
    case of applications that include a request for rehabilitation
    assistance under subsection (e), the Secretary shall select
    applicants for approval based on a national competition.  The
    Secretary shall, by regulation, establish selection criteria
    for the competition which provide for separate rating of
    applicants under this paragraph and of applicants under this
    section, and for selections from a single list of all
    applicants.  The criteria shall include -

          '(A) the quality of the plan for rehabilitating the
        eligible housing;

          '(B) the extent of the capacity or potential capacity of
        the proposed manager to manage the housing and to carry out
        the rehabilitation program;

          '(C) the extent to which a program is proposed to enable
        residents to achieve economic independence and
        self-sufficiency;

          '(D) the extent to which the planned rehabilitation will
        result in the long-term viability of the housing at a
        reasonable cost; and

          '(E) such other criteria as the Secretary may require.

  '(h) Contract Between Secretary and Manager. -

      '(1) Terms. - After the Secretary approves an application,
    the Secretary shall enter into a contract with the manager for
    transfer of management of the eligible housing.  In addition to
    other contract provisions required under this section, the
    contract shall -

          '(A) give the manager the right to receive operating
        subsidies under subsection (d) and capital improvement
        funding under subsection (e);

          '(B) require the manager to carry out all management
        responsibilities for the eligible housing, as provided in
        or required by the contract;

          '(C) require the manager to carry out, for the eligible
        housing, all management responsibilities applicable to
        public housing agencies owning or operating public housing
        projects, including (i) maintaining the units in decent,
        safe, and sanitary condition in accordance with any
        standards for public housing established or adopted by the
        Secretary, (ii) determining eligibility of applicants for
        occupancy of units subject to the requirements of this Act,
        (iii) terminating tenancy in accordance with the procedures
        applicable to the section 8 new construction program, and
        (iv) determining the amount of rent paid for units in
        accordance with this Act; and

          '(D) permit, but not require, the manager to select
        applicants from the public housing waiting list maintained
        by the public housing agency.

      '(2) Extension, expiration, and termination. -

          '(A) In general  . - The Secretary shall provide for a
resident council that has entered into a contract under this
subsection to -

              '(i) approve the renewal of the contract between the
            Secretary and the manager; or

              '(ii) disapprove renewal and submit an application to
            the Secretary, in accordance with subsection (f),
            proposing another manager, which may be the public
            housing agency.

          '(B) Default  . - If the Secretary determines that a
manager is in default of its responsibilities under the contract,
the Secretary may require the resident council to submit another
application proposing a different manager, which may be the public
housing agency.

  '(i) Other Program Requirements. -

      '(1) Cost limitations. - The Secretary may establish cost
    limitations on activities under this section.  The amount of
    rehabilitation funds under subsection (e)(1) that may be
    approved may not exceed the per unit cost limit applicable to
    the comprehensive grant program under section 14.

      '(2) Demolition and disposition not permitted. - A manager
    may not demolish or dispose of eligible housing under this
    section.

      '(3) Capability of resident management corporations. - To be
    eligible to become a manager under this section, a resident
    management corporation -

          '(A) shall demonstrate to the Secretary its ability to
        manage public housing effectively and efficiently, as
        determined by the Secretary, which shall include evidence
        of its most recent financial audit; or

          '(B) shall arrange for operation of the housing by a
        qualified management entity.

      '(4) Limitations on pha liability. - A public housing agency
    shall not be liable for any act or failure to act by the
    manager or resident council.

      '(5) Bonding and insurance. - Before assuming any management
    responsibility for eligible housing, a manager shall obtain
    fidelity bonding and insurance, or equivalent protection, in
    accordance with regulations and requirements established by the
    Secretary. Such bonding and insurance, or its equivalent, shall
    be adequate to protect the Secretary and the public housing
    agency against loss, theft, embezzlement, or fraudulent acts on
    the part of the manager or its employees.

      '(6) Restriction on displacement before transfer. - A public
    housing agency may not involuntarily displace, as determined by
    the Secretary, any resident of eligible housing during the
    period beginning on the date that an application under
    subsection (f) is submitted by a resident council, and ending
    upon transfer of management of the housing or, if the
    application is disapproved, the date of the disapproval.

  '(j) Performance Review and Compliance. -

      '(1) Monitoring  . - The Secretary shall monitor the
performance of managers under this section and shall assess their
management performance using the performance indicators established
under section 6(j)(1).

      '(2) Records, reports, and audits of managers. -

          '(A) Keeping of records. - Each manager and resident
        council under this subtitle shall keep such records as may
        be reasonably necessary to disclose the amount and the
        disposition by the manager of the proceeds of assistance
        received under this section and to ensure compliance with
        the requirements of this section.

          '(B) Access to documents. -

              '(i) Secretary. - The Secretary shall have access for
            the purpose of audit and examination to any books,
            documents, papers, and records of a manager, resident
            council, and public housing agency that are pertinent
            to assistance received under, and to the requirements
            of, this section.

              '(ii) GAO. - The Comptroller General of the United
            States, and any duly authorized representatives of the
            Comptroller General, shall have access for the purpose
            of audit and examination to any books, documents,
            papers, and records of a manager and resident council
            that are pertinent to assistance received under, and to
            the requirements of, this section.

          '(C) Reporting requirements. - Each manager shall submit
        to the Secretary such reports as the Secretary determines
        appropriate to carry out the Secretary's responsibilities
        under this section, including an annual financial audit.

          '(D) Annual report. -  The Secretary shall submit an
annual report to the Congress evaluating management transfers under
this section compared to other methods of dealing with severely
distressed public housing.

  '(k) Nondiscrimination. - No person in the United States shall,
on the grounds of race, color, national origin, religion, or sex,
be excluded from participation in, be denied the benefits of, or be
subjected to discrimination under, any program or activity funded
in whole or in part with funds made available under this section.
Any prohibition against discrimination on the basis of age under
the Age Discrimination Act of 1975 or with respect to an otherwise
qualified handicapped individual as provided in section 504 of the
Rehabilitation Act of 1973 shall also apply to any such program or
activity.

  '(l) Relationship to Other Programs. -

      '(1) Homeownership. - After a transfer of management in
    accordance with this section, the eligible housing shall remain
    eligible for assistance under title III and for sale under
    section 5(h). Participation in a homeownership program shall be
    consistent with a contract between the Secretary and a manager.

      '(2) Self-sufficiency. - Where an application under
    subsection (f) proposes a program to enable residents to
    achieve economic independence and self-sufficiency, consistent
    with the objectives of the program under section 23, and
    demonstrates that the manager has the capacity to carry out a
    self-sufficiency program, the Secretary may approve such a
    program.  Where such a program is approved, the Secretary shall
    authorize the manager to adopt policies consistent with section
    23(d) (relating to maximum rents and escrow savings accounts)
    and section 23(e) (relating to effect of increases in family
    income).

  '(m) Definitions. - For purposes of this section:

      '(1) The term 'eligible housing' means a public housing
    project, or one or more buildings within a project, that -

          '(A) is owned or operated by a troubled public housing
        agency; and

          '(B) has been identified as severely distressed under
        section 24 of this Act.

    In the case of an individual building, the building shall, in
    the determination of the Secretary, be sufficiently separable
    from the remainder of the project to make use of the building
    feasible for purposes of this section.

      '(2) The term 'manager' means one of the following entities
    that has entered into a contract with the Secretary for the
    management of eligible housing under this section:

          '(A) A public or private nonprofit organization
        (including, as determined by the Secretary, such an
        organization sponsored by the public housing agency).

          '(B) A for-profit entity, if it has (i) demonstrated
        experience in providing low-income housing, and (ii) is
        participating in joint venture with an organization
        described in paragraph (3).

          '(C) A State or local government, including an agency or
        instrumentality thereof.

          '(D) A public housing agency (other than the public
        housing agency that owns the project).

    The term does not include a resident council.

      '(3) The term 'private nonprofit organization' means any
    private nonprofit organization (including a State or locally
    chartered nonprofit organization) that -

          '(A) is incorporated under State or local law;

          '(B) has no part of its net earnings inuring to the
        benefit of any member, founder, contributor, or individual;

          '(C) complies with standards of financial accountability
        acceptable to the Secretary; and

          '(D) has among its purposes significant activities
        related to the provision of decent housing that is
        affordable to low-income families.

    The term includes resident management corporations.

      '(4) The term 'public housing agency' has the meaning given
    such term in section 3(b), except that it does not include
    Indian housing authorities.

      '(5) The term 'public nonprofit organization' means any
    public nonprofit entity, except the public housing agency that
    owns the eligible housing.

      '(6) The term 'resident council' means any nonprofit
    organization or association that -

          '(A) is representative of the residents of the eligible
        housing;

          '(B) adopts written procedures providing for the election
        of officers on a regular basis; and

          '(C) has a democratically elected governing board,
        elected by the residents of the eligible housing.

      '(7) The term 'resident management corporation' means a
    resident management corporation established in accordance with
    the requirements of the Secretary under section 20.

      '(8) The term 'troubled public housing agency' means a public
    housing agency with 250 or more units that -

          '(A) has been designated as a troubled public housing
        agency for the current Federal fiscal year, and for the 2
        preceding Federal fiscal years -

              '(i) under section 6(j)(2)(A)(i); or

              '(ii) before the implementation of such authority,
            under any other procedure for designating troubled
            public housing agencies that was used by the Secretary
            and is determined by the Secretary to be appropriate
            for purposes of this section; and

          '(B) has not met targets for improved performance under
        section 6(j)(2)(C).'.

SEC. 122. ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES.

  (a) Exemption From New Construction Limitation  . - Section
201(c) of the United States Housing Act of 1937 (42 U.S.C.
1437aa(c)) is amended by inserting before the period at the end the
following: 'or section 6(h) of the United States Housing Act of
1937 (relating to a limitation on contracts involving new
construction)'.

  (b) Modernization  . - Section 202(b)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437bb(b)(2)) is amended by striking
'single' in the second sentence.

  (c) Payments to Municipalities  . - Section 203(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437cc(b)) is amended by
adding at the end the following new sentence: 'Notwithstanding any
other provision of this Act, the Secretary shall make annual
payments from funds appropriated under section 9(c) to
municipalities providing such roads, facilities, and systems in a
amount equal to -

      '(1) 10 percent of the applicable shelter rent, minus the
    utility allowance; or

      '(2) $150,

whichever is greater, for each rental housing unit covered by this
subsection.'.

SEC. 123. PUBLIC HOUSING EARLY CHILDHOOD DEVELOPMENT SERVICES.

  Section 222(g) of the Housing and Urban-Rural Recovery Act of
1983 (12 U.S.C. 1701z-6 note) is amended to read as follows:

  '(g) Authorization of Appropriations. - To the extent provided in
appropriation Acts, of any amounts appropriated for fiscal year
1993 under section 103 of the Housing and Community Development Act
of 1974, $5,000,000 shall be available to carry out this section.
To the extent approved in appropriation Acts, of any amounts
appropriated for fiscal year 1994 under section 5(c) of the United
States Housing Act of 1937 for grants for the development of public
housing, $5,210,000 shall be available to carry out this section.
Any such amounts shall remain available until expended.'.

SEC. 124. INDIAN HOUSING CHILDHOOD DEVELOPMENT SERVICES.

  (a) Funding. - Section 518(a) of the Cranston-Gonzalez National
Affordable Housing Act (12 U.S.C. 1701z-6 note) is amended by
striking the subsection designation and all that follows through
the end of the first sentence and inserting the following:

  '(a) Funding. - To the extent provided in appropriation Acts, of
any amounts appropriated under section 5(c) of the United States
Housing Act of 1937 for fiscal year 1993 for public housing grants
for Indian housing, $5,200,000 may be used to carry out the
demonstration program under this section.  To the extent provided
in appropriation Acts, of any amounts appropriated under section
5(c) of the United States Housing Act of 1937 for fiscal year 1994
for public housing grants for Indian housing, $5,418,400 may be
used to carry out the demonstration program under this section.'.

  (b) Eligible Recipients. - The second sentence of section 518(a)
of the Cranston-Gonzalez National Affordable Housing Act (12 U.S.C.
1701z-6 note) is amended -

      (1) by inserting ', Indian housing authorities, and Indian
    tribes' after 'nonprofit organizations'; and

      (2) by inserting ', housing authorities, and tribes' after

    'such organizations'.

SEC. 125. PUBLIC HOUSING ONE-STOP PERINATAL SERVICES DEMONSTRATION.

  Section 521(g) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 1437t note) is amended to read as follows:

  '(g) Authorization of Appropriations. - There are authorized to
be appropriated for carrying out the demonstration program under
this section $200,000 for fiscal year 1993 and $208,400 for fiscal
year 1994.'.

SEC. 126. PUBLIC HOUSING YOUTH SPORTS PROGRAMS.

  (a) Funding From Public and Assisted Housing Drug Elimination
Funds. - Section 5130 of the Anti-Drug Abuse Act of 1988 (42 U.S.C.
11909) is amended by adding at the end the following new
subsection:

  '(c) Set-Aside for Youth Sports Programs. - Of any amount made
available in any fiscal year to carry out this chapter, 5 percent
of such amount shall be available for public housing youth sports
program grants under section 520 of the Cranston-Gonzalez National
Affordable Housing Act for such fiscal year.'.

  (b) Eligibility of Institutions of Higher Learning  . -

      (1) In general  . - Section 520(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 11903a(b)) is amended -

          (A) in paragraph (6), by striking 'and' at the end;

          (B) in paragraph (7), by striking the period at the end
        and inserting '; and'; and

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

      '(8) institutions of higher learning that have never
    participated in a youth sports program assisted under this
    section.'.

      (2) Transportation costs as eligible expense  . - Section
520(d) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 11903a(d)) is amended by adding at the end the following new
paragraph:

      '(4) In the case only of an eligible entity described in
    subsection (b)(8), any transportation costs in connection with
    the program.'.

  (c) Demonstration Program  . - Of any amounts made available in
fiscal year 1993 for carrying out section 520 of the
Cranston-Gonzalez National Affordable Housing Act, the Secretary of
Housing and Urban Development shall provide not more than $500,000
for the program known as the 'Success Through Academic and
Recreational Support' program, administered by the City of Fort
Myers, Florida, to demonstrate the effectiveness of programs that
use trained counselors to run sports and academic activities for
at-risk children, including children of low-income families
residing in public housing.  The grantee shall comply with all
applicable program requirements under subsections (c), (d), (e),
and (h) of such section.  The Secretary shall evaluate the
advantages of the program assisted under this subsection and
determine how the program may provide a model for other cities
conducting, or interested in conducting, similar activities.

SEC. 127. NATIONAL COMMISSION ON DISTRESSED PUBLIC HOUSING.

  (a) Termination  . - Section 507 of the Department of Housing and
Urban Development Reform Act of 1989 (12 U.S.C. 1715z-1a note) is
amended by striking 'upon the expiration of 18 months following the
appointment of all the members under section 503(a)' and inserting
'at the end of September 30, 1992'.

  (b) Audit  . - Not later than December 30, 1992, the Comptroller
General of the United States shall conduct an audit of the
financial transactions of the National Commission on Distressed
Public Housing to determine the use of any amounts received by the
Commission from the Federal Government before October 1, 1992, and
shall submit a report to the Congress regarding the results of the
audit.  The Comptroller General and any duly authorized
representatives of the Comptroller General shall have access to,
and the right to examine and copy, all records and other recorded
information in any form, and to examine any property, within the
possession and control of the Commission that the Comptroller
General considers relevant to the audit.

SEC. 128. NATIONAL COMMISSION ON AMERICAN INDIAN, ALASKA NATIVE,
AND NATIVE HAWAIIAN HOUSING.

  (a) Authorization of Appropriations. - The first sentence of
section 605 of the Department of Housing and Urban Development
Reform Act of 1989 (42 U.S.C. 1437aa note) is amended to read as
follows: 'There is authorized to be appropriated to carry out this
title $500,000 for fiscal year 1993.'.

  (b) Extension of Termination Date. - Section 602(g) of the
Department of Housing and Urban Development Reform Act of 1989 (12
U.S.C. 1437aa note) is amended by striking 'upon the expiration of
18 months after all members of the Commission are appointed under
paragraph (1)' and inserting 'on October 1, 1993'.

SEC. 129. RENTAL ASSISTANCE FRAUD RECOVERIES.

  (a) In General. -  Section 326(d) of the Housing and Community
Development Amendments of 1981 (42 U.S.C. 1437f note) is amended to
read as follows:

  '(d) Rental Assistance Fraud Recoveries  . -

      '(1) Authority to retain recovered amounts  . - The Secretary
of Housing and Urban Development shall permit public housing
agencies administering the housing assistance payments program
under section 8 of the United States Housing Act of 1937 to retain,
out of amounts obtained by the agencies from tenants that are due
as a result of fraud and abuse, an amount (determined in accordance
with regulations issued by the Secretary) equal to the greater of -

          '(A) 50 percent of the amount actually collected, or

          '(B) the actual, reasonable, and necessary expenses
        related to the collection, including costs of
        investigation, legal fees, and collection agency fees.

      '(2) Use  . - Amounts retained by an agency shall be made
available for use in support of the affected program or project, in
accordance with regulations issued by the Secretary. Where the
Secretary is the principal party initiating or sustaining an action
to recover amounts from families or owners, the provisions of this
section shall not apply.

      '(3) Recovery  . - Amounts may be recovered under this
paragraph -

          '(A) by an agency through a lawsuit (including settlement
        of the lawsuit) brought by the agency or through
        court-ordered restitution pursuant to a criminal proceeding
        resulting from an agency's investigation where the agency
        seeks prosecution of a family or where an agency seeks
        prosecution of an owner; or

          '(B) through administrative repayment agreements with a
        family or owner entered into as a result of an
        administrative grievance procedure conducted by an
        impartial decisionmaker in accordance with section 6(k) of
        the United States Housing Act of 1937.'.

  (b) Effective Date. -  Subsection (a) shall apply with respect to
actions by public housing agencies initiated on or after the date
of the enactment of this Act.

SEC. 130. PROJECT-BASED ACCOUNTING.

  Section 502(c)(2) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 1437d note) is amended by inserting before
the period the following: 'for public housing agencies with 500 or
more units and not later than January 1, 1994 for public housing
agencies with less than 500 units.

SEC. 131. SALE OF CERTAIN SCATTERED-SITE HOUSING.

  The Secretary of Housing and Urban Development shall authorize
the Delaware State Housing Authority in the State of Delaware to
sell scattered-site public housing of the Authority under the
provisions of section 5(h) of the United States Housing Act of
1937. Any proceeds from the disposition of such housing shall be
used to purchase replacement scattered-site dwellings, which shall
be considered public housing for the purposes of such Act and for
which the Secretary shall provide annual contributions for
operation, using amounts made available under section 9(c) of such
Act.

SEC. 132. HOMEOWNERSHIP DEMONSTRATION PROGRAM IN OMAHA, NEBRASKA.

  (a) Establishment. -  The Secretary shall carry out a program to
facilitate self-sufficiency and homeownership of single-family
homes administered by the Housing Authority of the city of Omaha,
in the State of Nebraska (in this section referred to as the
'Housing Authority'), to demonstrate the effectiveness of promoting
homeownership and providing support services.

  (b) Participating Public Housing Units  . - For purposes of the
demonstration program, the Secretary shall authorize the Housing
Authority to designate single-family housing units for eventual
homeownership.  Over the term of the demonstration, the
demonstration program may be applied to not more than 20 percent of
the total number of public housing units administered by the
Housing Authority. In conducting the demonstration, the Housing
Authority shall affirmatively further fair housing objectives.

  (c) Nondisplacement. -  No person who is a tenant of public
housing may be involuntarily relocated or displaced as a result of
the demonstration program.

  (d) Economic Self-Sufficiency. -

      (1) Establishment of participation criteria. -  The Housing
Authority shall establish criteria for the participation of
families in the demonstration program.  Such criteria shall be
based on factors that may reasonably be expected to predict a
family's ability to succeed in the homeownership program
established by this section.

      (2) Contents of participation criteria. -  The criteria
referred to in paragraph (1) shall include evidence of interest by
the family in homeownership, the employment status and history of
employment of family members, and maintenance by the family of the
family's previous dwelling.

  (e) Provision of Supportive Services. -  The Housing Authority
shall ensure the availability of supportive services to each family
participating in the demonstration program through its own
resources and through coordination with Federal, State, and local
agencies and private entities.  Supportive services available under
the demonstration program may include counseling, remedial
education, education for completion of high school, job training
and preparation, financial counseling emphasizing planning for
homeownership, and any other appropriate services.

  (f) Reports to Congress. -

      (1) Biennial report. -  Upon the expiration of the 2-year
period beginning on the date of enactment of this Act, and each
2-year period thereafter, the Secretary of Housing and Urban
Development shall submit to the Congress a report evaluating the
effectiveness of the demonstration program established under this
section.

      (2) Final report. -  Not later than 60 days after termination
of the demonstration program pursuant to subsection (h), the
Secretary shall submit to the Congress a final report evaluating
the effectiveness of the demonstration program.

  (g) Regulations  . - Not later than the expiration of the 90-day
period beginning on the date of the enactment of this Act, the
Secretary shall issue interim regulations to carry out this
section, which shall take effect upon issuance.  The Secretary
shall issue final regulations to carry out this subtitle 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.

  (h) Termination. - The demonstration program established under
this section shall terminate 10 years after the date of the
enactment of this Act.

                 SUBTITLE C - SECTION 8 ASSISTANCE

SEC. 141. ELIGIBILITY OF LOW-INCOME FAMILIES TO RECEIVE RENTAL
ASSISTANCE.

  (a) Certificates  . - The first sentence of section 8(c)(4) of
the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(4)) is
amended by inserting before the first comma the following: 'or by a
family that qualifies to receive assistance under subsection (b)
pursuant to section 223 or 226 of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990'.

  (b) Vouchers  . - Section 8(o)(3)(A) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(3)(A)) is amended -

      (1) by striking 'or' at the end of clause (iii); and

      (2) by inserting before the period the following: ', or (v) a
    family that qualifies to receive a voucher under section 223 or
    226 of the Low-Income Housing Preservation and Resident
    Homeownership Act of 1990'.

SEC. 142. CONTRACT ADJUSTMENTS FOR EXPIRATION OF PROPERTY TAX
EXEMPTION.

  Section 8(c)(2)(B) of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)(2)(B)) is amended by inserting after the first
sentence the following new sentence: 'The Secretary shall make
additional adjustments in the maximum monthly rent for units under
contract (subject to the availability of appropriations for
contract amendments) to the extent the Secretary determines such
adjustments are necessary to reflect increases in the actual and
necessary expenses of owning and maintaining the units that have
resulted from the expiration of a real property tax exemption.'.

SEC. 143. TERMINATION OF CONTRACTS.

  The last sentence of section 8(c)(9) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(c)(9)) is amended by inserting before
the period at the end the following: ', and such term shall include
termination of the contract for business reasons'.

SEC. 144. PREFERENCES FOR VETERANS WITH DISABILITIES THAT PREVENT
USE OF HOME.

  (a) Certificates  . - Section 8(d)(1)(A)(ii) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(A)(ii)) is amended -

      (1) by striking '(V)' and inserting '(VI)'; and

      (2) by inserting after 'adoption is not available;' the
    following: '(V) assisting veterans who are eligible and have
    applied for assistance, will use the assistance for a dwelling
    unit designed for the handicapped, and, upon discharge or
    eligibility for discharge from a hospital or nursing home, have
    physical disability which, because of the configuration of
    their homes, prevents them from access to or use of their
    homes;'.

  (b) Vouchers  . - The third sentence of section 8(o)(3)(B) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(3)(B)) is
amended -

      (1) by striking '(v)' and inserting '(vi)'; and

      (2) by inserting after 'adoption is not available;' the
    following: '(v) assisting veterans who are eligible and have
    applied for assistance, will use the assistance for a dwelling
    unit designed for the handicapped, and, upon discharge or
    eligibility for discharge from a hospital or nursing home, have
    physical disability which, because of the configuration of
    their homes, prevents them from access to or use of their
    homes;'.

SEC. 145. TERMINATION OF TENANCY FOR CRIMINAL ACTIVITY.

  Section 8(d)(1)(B)(iii) of the United States Housing Act of 1937
(42 U.S.C. 1437f(d)(1)(B)(iii)) is amended -

      (1) by inserting ', any criminal activity that threatens the
    health, safety, or right to peaceful enjoyment of their
    residences by persons residing in the immediate vicinity of the
    premises,' before 'or any drug-related'; and

      (2) by striking 'public housing tenant' and inserting 'tenant
    of any unit'.

SEC. 146. DEFINITIONS OF 'PROJECT-BASED ASSISTANCE' AND
'TENANT-BASED ASSISTANCE'.

  Section 8(f) of the United States Housing Act of 1937 (42 U.S.C.
1437f(f)) 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 'project-based assistance' means rental
    assistance under subsection (b) that is attached to the
    structure pursuant to subsection (d)(2); and

      '(7) the term 'tenant-based assistance' means rental
    assistance under subsection (b) or (o) that is not
    project-based assistance.'.

SEC. 147. PORTABILITY.

  Section 8(r)(1) of the United States Housing Act of 1937 (42
U.S.C. 1437f(r)) is amended by inserting before the period at the
end the following: '; except that any family not living within the
jurisdiction of a public housing agency at the time that such
family applies for assistance from such agency shall, during the
12-month period beginning upon the receipt of any tenant-based
rental assistance made available on behalf of the family, use such
assistance to rent an eligible dwelling unit located within the
jurisdiction served by such public housing agency'.

SEC. 148. FAMILY UNIFICATION ASSISTANCE.

  Section 8(x)(1) of the United States Housing Act of 1937 (12
U.S.C. 1437f(x)(1)) is amended to read as follows:

      '(1) Increase in budget authority. -  The budget authority
available under section 5(c) for assistance under section 8(b) is
authorized to be increased by $100,000,000 on or after October 1,
1992, and by $104,200,000 on or after October 1, 1993.'.

SEC. 149. IMPLEMENTATION OF AMENDMENTS TO PROJECT-BASED CERTIFICATE
PROGRAM.

  The Secretary of Housing and Urban Development shall issue any
final regulations necessary to carry out the amendments made by
section 547 of the Cranston-Gonzalez National Affordable Housing
Act 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) and shall take effect upon the expiration of the 30-day
period beginning upon issuance.

SEC. 150. EFFECTIVENESS OF SECTION 8 ASSISTANCE FOR PHA-OWNED
UNITS.

  The amendments made by section 548 of the Cranston-Gonzalez
National Affordable Housing Act shall be effective notwithstanding
the absence of any regulations issued by the Secretary of Housing
and Urban Development.

SEC. 151. IMPLEMENTATION OF INCOME ELIGIBILITY PROVISIONS FOR
SECTION 8 NEW CONSTRUCTION UNITS.

  The Secretary of Housing and Urban Development shall issue any
final regulations necessary to carry out the provisions of section
555 of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 1437f note) 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) and shall take effect upon the expiration
of the 30-day period beginning upon issuance.

SEC. 152. MOVING TO OPPORTUNITY FOR FAIR HOUSING.

  (a) Authority. - Using any amounts available under subsection
(e), the Secretary of Housing and Urban Development shall carry out
a demonstration program to provide tenant-based assistance under
section 8 of the United States Housing Act of 1937 to assist very
low-income families with children who reside in public housing or
housing receiving project-based assistance under section 8 of the
United States Housing Act of 1937 to move out of areas with high
concentrations of persons living in poverty to areas with low
concentrations of such persons.  The demonstration program carried
out under this section shall compare and contrast the costs
associated with implementing such a program (including the costs of
counseling, supportive services, housing assistance payments and
other relevant program elements) with the costs associated with the
routine implementation of the section 8 tenant-based rental
assistance programs.  The Secretary shall enter into annual
contributions contracts with public housing agencies to administer
housing assistance payments contracts under the demonstration.

  (b) Eligible Cities. -

      (1) In general. - The Secretary shall carry out the
    demonstration only in cities with populations exceeding 350,000
    that are located in consolidated metropolitan statistical areas
    (as designated by the Director of the Office of Management and
    Budget) having populations exceeding 1,500,000.

      (2) 1993. - Notwithstanding paragraph (1), in fiscal year
    1993, only the 5 cities selected for the demonstration under
    the item relating to 'Housing Programs - annual contributions
    for assisted housing (including rescission of funds)' of title
    II of the Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 1992
    (105 Stat. 745), and the City of Los Angeles, California, shall
    be eligible for the demonstration under this section.

  (c) Services. - The Secretary shall enter into contracts with
nonprofit organizations to provide counseling and services in
connection with the demonstration.

  (d) Reports. -

      (1) Biennial  . - Not later than the expiration of the 2-year
period beginning on the date of the enactment of this Act (and
biennially thereafter), the Secretary shall submit interim reports
to the Congress evaluating the effectiveness of the demonstration
program under this section.  The interim reports shall include a
statement of the number of persons served, the level of counseling
and the types of services provided, the cost of providing such
counseling and services, updates on the employment record of
families assisted under the program, and any other information the
Secretary considers appropriate in evaluating the demonstration.

      (2) Final  . - Not later than September 30, 2004, the
Secretary shall submit a final report to the Congress describing
the long-term housing, employment, and educational achievements of
the families assisted under the demonstration program.  Such report
shall also contain an assessment of such achievements for a
comparable population of section 8 recipients who have not received
assistance under the demonstration program.

  (e) Funding. - The budget authority available under section 5(c)
of the United States Housing Act of 1937 for tenant-based
assistance under section 8 of such Act is authorized to be
increased by $50,000,000, on or after October 1, 1992, and by
$52,100,000, on or after October 1, 1993, to carry out the
demonstration under this section.  Any amounts made available under
this paragraph shall be used in connection with the demonstration
under this section.

  (f) Implementation. - The Secretary may, by notice published in
the Federal Register, establish any requirements necessary to carry
out the demonstration under this section and the amendment made by
this section.  The Secretary shall publish such notice not later
than the expiration of the 90-day period beginning on the date of
the enactment of this Act and shall submit a copy of such notice to
the Congress not less than 15 days before publication.

SEC. 153. DIRECTIVE TO FURTHER FAIR HOUSING OBJECTIVES UNDER
CERTIFICATE AND VOUCHER PROGRAMS.

  Not later than 2 years after the date of the enactment of this
Act, the Secretary of Housing and Urban Development, in
consultation with individuals representing fair housing
organizations, low-income tenants, public housing agencies, and
other interested parties, shall -

      (1) review and comment upon the study prepared by the
    Comptroller General of the United States pursuant to section
    558(3) of the Cranston-Gonzalez National Affordable Housing
    Act;

      (2) evaluate the implementation and effects of existing
    demonstration and judicially mandated programs that help
    minority families receiving section 8 certificates and vouchers
    move out of areas with high concentrations of minority persons
    living in poverty to areas with low concentrations, including
    how such programs differ from the routine implementation of the
    section 8 certificate and voucher programs;

      (3) independently assess factors (including the adequacy of
    section 8 fair market rentals, the level of counseling provided
    by public housing agencies, the existence of racial and ethnic
    discrimination by landlords) that may impede the geographic
    dispersion of families receiving section 8 certificates and
    vouchers;

      (4) identify and implement any administrative revisions that
    would enhance geographic dispersion and tenant choice and
    incorporate the positive elements of various demonstration and
    judicially mandated mobility programs; and

      (5) submit to the Congress a report describing its findings
    under paragraphs (1), (2), and (3), the actions taken under
    paragraph (4), and any recommendations for additional
    demonstration, research, or legislative action.

SEC. 154. HOUSING ASSISTANCE IN JEFFERSON COUNTY, TEXAS.

  Section 213(e) of the Housing and Community Development Act of
1974 (42 U.S.C. 1439(e)) is amended by striking 'the Park Central
New Community Project or in adjacent areas that are recognized by
the unit of general local government in which such Project is
located as being included within the Park Central New Town in Town
Project.' and inserting 'Jefferson County, Texas.'.

SEC. 155. COMPLIANCE OF CERTAIN ACTIVITIES WITH LIMITATIONS ON
PROJECT-BASED ASSISTANCE.

  Rehabilitation activities undertaken by the Committee for Dignity
and Fairness for the Homeless Housing Development, Inc. in
connection with 46 dwelling units that were renovated for permanent
housing for the homeless and that are located in Philadelphia,
Pennsylvania, are hereby deemed to have been conducted pursuant to
an agreement with the Secretary of Housing and Urban Development
under clause (ii) of the third sentence of section 8(d)(2)(A) of
the United States Housing Act of 1937 (42 U.S.C. 1437f(d)(2)(A)).

                    SUBTITLE D - OTHER PROGRAMS

SEC. 161. PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION.

  (a) Authorization of Appropriations. - The first sentence of
section 5130(a) of the Anti-Drug Abuse Act of 1988 (42 U.S.C.
11909(a)) is amended to read as follows: 'There are authorized to
be appropriated to carry out this chapter $175,000,000 for fiscal
year 1993 and $182,350,000 for fiscal year 1994.'.

  (b) Fiscal Year 1993 Set-Asides  . - Section 5130(b) of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11909(b)) is amended -

      (1) by striking 'Set-Aside for Assisted Housing' and
    inserting 'Set-Asides'; and

      (2) by inserting after the period at the end the following
    new sentence: 'Notwithstanding any other provision of law, of
    any amounts appropriated for drug elimination grants under this
    chapter for fiscal years 1993 and 1994, not more than 6.25
    percent shall be available for grants for federally assisted
    low-income housing and 5.0 percent shall be available for
    public housing youth sports program grants under section 520 of
    the Cranston-Gonzalez National Affordable Housing Act.'.

  (c) Drug-Related Activity in Other PHA-Owned Housing. - Section
5124 of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11903) is
amended -

      (1) by inserting '(a) Public and Assisted Housing. - ' before
    'Grants'; and

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

  '(b) Other PHA-Owned Housing. - Notwithstanding any other
provision of this chapter, grants under this chapter may be used to
eliminate drug-related crime in housing owned by public housing
agencies that is not public housing assisted under the United
States Housing Act of 1937 and is not otherwise federally assisted,
for the activities described in paragraphs (1) through (7) of
subsection (a), but only if -

      '(1) the housing is located in a high intensity drug
    trafficking area designated pursuant to section 1005 of this
    Act; and

      '(2) the public housing agency owning the housing
    demonstrates, to the satisfaction of the Secretary, that
    drug-related activity at the housing has a detrimental effect
    on or about the real property comprising any public or other
    federally assisted low-income housing.'.

  (d) Eligibility of Public Housing Resident Management
Corporations  . - Chapter 2 of subtitle C of title 5 of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.) is amended -

      (1) in section 5123, by inserting after '(including Indian
    Housing Authorities)' the following: ', public housing resident
    management corporations that are principally managing, as
    determined by the Secretary, public housing projects owned by
    public housing agencies,';

      (2) in paragraph (7) of section 5124(a) (as so designated by
    subsection (c) of this section), by inserting after '(7)' the
    following: 'where a public housing agency receives a grant,';
    and

      (3) in the first sentence of section 5125(a), by inserting
    after 'public housing agency' the following: ', a public
    housing resident management corporation,'.

  (e) Publication of Regulations. - Not later than 30 days after
the date of the enactment of this Act, the Secretary shall publish
such final regulations as may be necessary to implement section
5130(b) of the Public and Assisted Housing Drug Elimination Act of
1990 (42 U.S.C. 11909(a)).

SEC. 162. HOUSING COUNSELING.

  (a) Counseling Services. -  The first sentence of section
106(a)(3) of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x(a)(3)) is amended by striking 'except that' and all
that follows through the period and inserting 'except that for such
purposes there are authorized to be appropriated $6,025,000 for
fiscal year 1993 and $6,278,050 for fiscal year 1994. Of the
amounts appropriated for each of fiscal years 1993 and 1994, up to
$500,000 shall be available for use for counseling and other
activities in connection with the demonstration program under
section 152 of the Housing and Community Development Act of 1992.'.

  (b) Emergency Homeownership Counseling. -

      (1) Authorization of appropriations  . - The first sentence
of section 106(c)(8) of the Housing and Urban Development Act of
1968 (12 U.S.C. 1701x(c)(8)) is amended to read as follows: 'There
are authorized to be appropriated to carry out this section
$7,000,000 for fiscal year 1993 and $7,294,000 for fiscal year
1994, of which amounts $1,000,000 shall be available in each such
fiscal year to carry out paragraph (5)(D).'.

      (2) Extension of program. - Section 106(c)(9) of the Housing
    and Urban Development Act of 1968 (12 U.S.C. 1701x(c)(9)) is
    amended by striking 'September 30, 1992' and inserting
    'September 30, 1994'.

      (3) Availability. - Section 106(c)(3)(A) of the Housing and
    Urban Development Act of 1968 (12 U.S.C. 1701x(c)(3)(A)) is
    amended -

          (A) in clause (i), by striking 'and' at the end; and

          (B) by adding at the end the following new clause:

              '(iii) have a high incidence of mortgages involving
            principal obligations (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 properties that are insured
            pursuant to section 203 of the National Housing Act;
            and'.

      (4) Eligibility. - Section 106(c)(4) of the Housing and Urban
    Development Act of 1968 (12 U.S.C. 1701x(c)(4)) is amended by
    adding at the end the following new flush sentence:

    'An applicant for a mortgage shall be eligible for
    homeownership counseling under this subsection if the applicant
    is a first-time homebuyer who meets the requirements of section
    303(b)(1) of the Cranston-Gonzalez National Affordable Housing
    Act and the mortgage 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 and is to be insured
    pursuant to section 203 of the National Housing Act.'.

      (5) Notification of availability. - Section 106(c)(5)(A) of
    the Housing and Urban Development Act of 1968 (12 U.S.C.
    1701x(c)(5)(A)) is amended by striking subparagraph (A) and
    inserting the following new subparagraph:

          '(A) Notification of availability of homeownership
        counseling. -

              '(i) Requirement. - Except as provided in
            subparagraph (C), the creditor of a loan (or proposed
            creditor) shall provide notice under clause (ii) to (I)
            any eligible homeowner who fails to pay any amount by
            the date the amount is due under a home loan, and (II)
            any applicant for a mortgage described in paragraph
            (4).

              '(ii) Content. - Notification under this subparagraph
            shall -

                  '(I) notify the homeowner or mortgage applicant
                of the availability of any homeownership counseling
                offered by the creditor (or proposed creditor);

                  '(II) if provided to an eligible mortgage
                applicant, state that completion of a counseling
                program is required for insurance pursuant to
                section 203 of the National Housing Act; and

                  '(III) notify the homeowner or mortgage applicant
                of the availability of homeownership counseling
                provided by nonprofit organizations approved by the
                Secretary and experienced in the provision of
                homeownership counseling, or provide the toll-free
                telephone number described in subparagraph
                (D)(i).'.

      (6) Annual update of list of counseling organizations for
    toll-free number. - The matter preceding subclause (I) in
    section 106(c)(5)(D)(i) of the Housing and Urban Development
    Act of 1968 (12 U.S.C. 1701x(c)(5)(D)(i)) is amended by
    inserting ', which shall be updated annually,' after
    'organizations'.

  (c) Prepurchase and Foreclosure-Prevention Counseling
Demonstration. - Section 106(d)(12) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x(d)(12)) is amended to read
as follows:

      '(12) Authorization of appropriations. - There are authorized
    to be appropriated to carry out this subsection $365,000 for
    fiscal year 1993 and $380,330 for fiscal year 1994.'.

  (d) Eligibility for Counseling Assistance Under Housing and Urban
Development Act of 1968 and Certification and Training Program. -
Section 106 of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x) is amended by adding at the end the following new
subsections:

  '(e) Certification. -

      '(1) Requirement for assistance. - An organization may not
    receive assistance for counseling activities under subsection
    (a)(1)(iii), (a)(2), (c), or (d), unless the organization
    provides such counseling, to the extent practicable, by
    individuals who have been certified by the Secretary under this
    subsection as competent to provide such counseling.

      '(2) Standards and examination. - The Secretary shall, by
    regulation, establish standards and procedures for testing and
    certifying counselors.  Such standards and procedures shall
    require for certification that the individual shall
    demonstrate, by written examination (as provided under
    subsection (f)(4)), competence to provide counseling in each of
    the following areas:

          '(A) Financial management.

          '(B) Property maintenance.

          '(C) Responsibilities of homeownership and tenancy.

          '(D) Fair housing laws and requirements.

          '(E) Housing affordability.

          '(F) Avoidance of, and responses to, rental and mortgage
        delinquency and avoidance of eviction and mortgage default.

      '(3) Encouragement. - The Secretary shall encourage
    organizations engaged in providing homeownership and rental
    counseling that do not receive assistance under this section to
    employ individuals to provide such counseling who are certified
    under this subsection or meet the certification standards
    established under this subsection.

  '(f) Homeownership and Rental Counselor Training and
Certification Programs. -

      '(1) Establishment. - To the extent amounts are provided in
    appropriations Acts under paragraph (7), the Secretary shall
    contract with an appropriate entity (which may be a nonprofit
    organization) to carry out a program under this subsection to
    train individuals to provide homeownership and rental
    counseling and to administer the examination under subsection
    (e)(2) and certify individuals under such subsection.

      '(2) Eligibility and selection. -

          '(A) Eligibility. - To be eligible to provide the
        training and certification program under this subsection,
        an entity shall have demonstrated experience in training
        homeownership and rental counselors.

          '(B) Selection. - The Secretary shall provide for
        entities meeting the requirements of subparagraph (A) to
        submit applications to provide the training and
        certification program under this subsection.  The Secretary
        shall select an application based on the ability of the
        entity to -

              '(i) establish the program as soon as possible on a
            national basis, but not later than the date under
            paragraph (6);

              '(ii) minimize the costs involved in establishing the
            program; and

              '(iii) effectively and efficiently carry out the
            program.

      '(3) Training. - The Secretary shall require that training of
    counselors under the program under this subsection be designed
    and coordinated to prepare individuals for successful
    completion of the examination for certification under
    subsection (e)(2). The Secretary, in consultation with the
    entity selected under paragraph (2)(B), shall establish the
    curriculum and standards for training counselors under the
    program.

      '(4) Certification. - The entity selected under paragraph
    (2)(B) shall administer the examination under subsection (e)(2)
    and, on behalf of the Secretary, certify individuals
    successfully completing the examination.  The Secretary, in
    consultation with such entity, shall establish the content and
    format of the examination.

      '(5) Fees. - Subject to the approval of the Secretary, the
    entity selected under paragraph (2)(B) may establish and impose
    reasonable fees for participation in the training provided
    under the program and for examination and certification under
    subsection (e)(2), in an amount sufficient to cover any costs
    of such activities not covered with amounts provided under
    paragraph (7).

      '(6) Timing. - The entity selected under paragraph (2)(B) to
    carry out the training and certification program shall
    establish the program as soon as possible after such selection,
    and shall make training and certification available under the
    program on a national basis not later than the expiration of
    the 1-year period beginning upon such selection.

      '(7) Authorization of appropriations. - There are authorized
    to be appropriated to carry out this subsection $2,000,000 for
    fiscal year 1993 and $2,084,000 for 1994.'.

  (e) Regulations  . - The Secretary of Housing and Urban
Development shall issue any regulations necessary to carry out the
amendments made by subsection (d), not later than the expiration of
the 6-month period beginning on the date of the enactment of this
Act.

SEC. 163. USE OF FUNDS RECAPTURED FROM REFINANCING STATE AND LOCAL
FINANCE PROJECTS.

  In General. - Section 1012 of the Stewart B. McKinney Homeless
Assistance Amendments Act of 1988 (42 U.S.C. 1437f note) is amended
to read as follows:

'SEC. 1012. USE OF FUNDS RECAPTURED FROM REFINANCING STATE AND
LOCAL FINANCE PROJECTS.

  '(a) Definition of Qualified Project. - For purposes of this
section, the term 'qualified project' means any State financed
project or local government or local housing agency financed
project, that -

      '(1) was -

          '(A) provided a financial adjustment factor under section
        8 of the United States Housing Act of 1937; or

          '(B) constructed or substantially rehabilitated pursuant
        to assistance provided under a contract under section
        8(b)(2) of the United States Housing Act of 1937 (as in
        effect on September 30, 1983) entered into during any of
        calendar years 1979 through 1984; and

      '(2) is being refinanced.

  '(b) Availability of Funds. - The Secretary shall make available
to the State housing finance agency in the State in which a
qualified project is located, or the local government or local
housing agency initiating the refinancing of the qualified project,
as applicable, an amount equal to 50 percent of the amounts
recaptured from the project (as determined by the Secretary on a
project-by-project basis).  Notwithstanding any other provision of
law, such amounts shall be used only for providing decent, safe,
and sanitary housing affordable for very low-income families and
persons.

  '(c) Applicability and Budget Compliance. -

      '(1) Retroactivity. - This section shall apply to
    refinancings of projects for which settlement occurred or
    occurs before, on, or after the date of the enactment of the
    Housing and Community Development Act of 1992, subject to the
    provisions of paragraph (2).

      '(2) Budget compliance. - This section shall apply only to
    the extent or in such amounts as are provided in appropriation
    Acts.'.

SEC. 164. HOPE FOR YOUTH.

  Title IV of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 1437aaa note et seq.) is amended by adding at the end
the following new subtitle:

              'SUBTITLE D - HOPE FOR YOUTH: YOUTHBUILD

'SEC. 451. STATEMENT OF PURPOSE.

  'It is the purpose of this subtitle -

      '(1) to expand the supply of permanent affordable housing for
    homeless individuals and members of low- and very low-income
    families by utilizing the energies and talents of economically
    disadvantaged young adults;

      '(2) to provide economically disadvantaged young adults with
    opportunities for meaningful work and service to their
    communities in helping to meet the housing needs of homeless
    individuals and members of low- and very low-income families;

      '(3) to enable economically disadvantaged young adults to
    obtain the education and employment skills necessary to achieve
    economic self-sufficiency; and

      '(4) to foster the development of leadership skills and
    commitment to community development among young adults in
    low-income communities.

'SEC. 452. PROGRAM AUTHORITY.

  'The Secretary may make -

      '(1) planning grants to enable applicants to develop
    Youthbuild programs; and

      '(2) implementation grants to enable applicants to carry out
    Youthbuild programs.

'SEC. 453. PLANNING GRANTS.

  '(a) Grants. - The Secretary is authorized to make planning
grants to applicants for the purpose of developing Youthbuild
programs under this subtitle.  The amount of a planning grant under
this section may not exceed $150,000, except that the Secretary may
for good cause approve a grant in a higher amount.

  '(b) Eligible Activities. - Planning grants may be used for
activities to develop Youthbuild programs including -

      '(1) studies of the feasibility of a Youthbuild program;

      '(2) establishment of consortia between youth training and
    education programs and housing owners or developers, including
    any organizations specified in section 457(2), which will
    participate in the Youthbuild program;

      '(3) identification and selection of a site for the
    Youthbuild program;

      '(4) preliminary architectural and engineering work for the
    Youthbuild program;

      '(5) identification and training of staff for the Youthbuild
    program;

      '(6) planning for education, job training, and other services
    that will be provided as part of the Youthbuild program;

      '(7) other planning, training, or technical assistance
    necessary in advance of commencing the Youthbuild program; and

      '(8) preparation of an application for an implementation
    grant under this subtitle.

  '(c) Application. -

      '(1) Form and procedures. - An application for a planning
    grant shall be submitted by an applicant in such form and in
    accordance with such procedures as the Secretary shall
    establish.

      '(2) Minimum requirements. - The Secretary shall require that
    an application contain at a minimum -

          '(A) a request for a planning grant, specifying the
        activities proposed to be carried out, the schedule for
        completing the activities, the personnel necessary to
        complete the activities, and the amount of the grant
        requested;

          '(B) a description of the applicant and a statement of
        its qualifications, including a description of the
        applicant's past experience with housing rehabilitation or
        construction and with youth and youth education and
        employment training programs, and its relationship with
        local unions and apprenticeship programs, and other
        community groups;

          '(C) identification and description of potential sites
        for the program and the construction or rehabilitation
        activities that would be undertaken at such sites;
        potential methods for identifying and recruiting youth
        participants; potential educational and job training
        activities, work opportunities and other services for
        participants; and potential coordination with other
        Federal, State, and local housing and youth education and
        employment training activities including activities
        conducted by Indian tribes;

          '(D) a certification by the public official responsible
        for submitting the comprehensive housing affordability
        strategy under section 105 of the Cranston-Gonzalez
        National Affordable Housing Act that the proposed
        activities are consistent with the approved housing
        strategy of the State or unit of general local government
        within which the project is located; and

          '(E) a certification that the applicant will comply with
        the requirements of the Fair Housing Act, title VI of the
        Civil Rights Act of 1964, section 504 of the Rehabilitation
        Act of 1973, and the Age Discrimination Act of 1975, and
        will affirmatively further fair housing.

  '(d) Selection Criteria. - The Secretary shall, by regulation,
establish selection criteria for a national competition for
assistance under this section, which shall include -

      '(1) the qualifications or potential capabilities of the
    applicant;

      '(2) the potential of the applicant for developing a
    successful and affordable Youthbuild program;

      '(3) the need for the prospective program, as determined by
    the degree of economic distress -

          '(A) of the community from which participants would be
        recruited (such as poverty, youth unemployment, and number
        of individuals who have dropped out of high school); and

          '(B) of the community in which the housing proposed to be
        constructed or rehabilitated would be located (such as
        incidence of homelessness, shortage of affordable housing,
        and poverty); and

      '(4) such other factors that the Secretary shall require that
    (in the determination of the Secretary) are appropriate for
    purposes of carrying out the program established by this
    subtitle in an effective and efficient manner.

'SEC. 454. IMPLEMENTATION GRANTS.

  '(a) Grants. - The Secretary is authorized to make implementation
grants to applicants for the purpose of carrying out Youthbuild
programs approved under this subtitle.

  '(b) Eligible Activities. - Implementation grants may be used to
carry out Youthbuild programs, including the following activities:

      '(1) Architectural and engineering work.

      '(2) Acquisition, rehabilitation, acquisition and
    rehabilitation, or construction of housing and related
    facilities to be used for the purposes of providing
    homeownership under subtitle B and subtitle C of this title,
    residential housing for homeless individuals, and low- and very
    low-income families, or transitional housing for persons who
    are homeless, have disabilities, are ill, are
    deinstitutionalized, or have other special needs.

      '(3) Administrative costs of the applicant, which may not
    exceed 15 percent of the amount of assistance provided under
    this section, or such higher percentage as the Secretary
    determines is necessary to support capacity development by a
    private nonprofit organization.

      '(4) Education and job training services and activities
    including -

          '(A) work experience and skills training, coordinated, to
        the maximum extent feasible, with preapprenticeship and
        apprenticeship programs, in the construction and
        rehabilitation activities described in subsection (b)(2);

          '(B) services and activities designed to meet the
        educational needs of participants, including -

              '(i) basic skills instruction and remedial education;

              '(ii) bilingual education for individuals with
            limited-English proficiency;

              '(iii) secondary education services and activities
            designed to lead to the attainment of a high school
            diploma or its equivalent; and

              '(iv) counseling and assistance in attaining
            post-secondary education and required financial aid;

          '(C) counseling services and related activities;

          '(D) activities designed to develop employment and
        leadership skills, including support for youth councils;
        and

          '(E) support services and need-based stipends necessary
        to enable individuals to participate in the program and,
        for a period not to exceed 12 months after completion of
        training, to assist participants through support services
        in retaining employment.

      '(5) Wage stipends and benefits provided to participants.

      '(6) Funding of operating expenses and replacement reserves
    of the property covered by the Youthbuild program.

      '(7) Legal fees.

      '(8) Defraying costs for the ongoing training and technical
    assistance needs of the recipient that are related to
    developing and carrying out the Youthbuild program.

  '(c) Application. -

      '(1) Form and procedure. - An application for an
    implementation grant shall be submitted by an applicant in such
    form and in accordance with such procedures as the Secretary
    shall establish.

      '(2) Minimum requirements. - The Secretary shall require that
    an application contain at a minimum -

          '(A) a request for an implementation grant, specifying
        the amount of the grant requested and its proposed uses;

          '(B) a description of the applicant and a statement of
        its qualifications, including a description of the
        applicant's past experience with housing rehabilitation or
        construction and with youth and youth education and
        employment training programs, and its relationship with
        local unions and apprenticeship programs, and other
        community groups;

          '(C) a description of the proposed site for the program;

          '(D) a description of the educational and job training
        activities, work opportunities, and other services that
        will be provided to participants;

          '(E) a description of the proposed construction or
        rehabilitation activities to be undertaken and the
        anticipated schedule for carrying out such activities;

          '(F) a description of the manner in which eligible youths
        will be recruited and selected, including a description of
        arrangements which will be made with community-based
        organizations, State and local educational agencies,
        including agencies of Indian tribes, public assistance
        agencies, the courts of jurisdiction for status and youth
        offenders, shelters for homeless individuals and other
        agencies that serve homeless youth, foster care agencies,
        and other appropriate public and private agencies;

          '(G) a description of the special outreach efforts that
        will be undertaken to recruit eligible young women
        (including young women with dependent children);

          '(H) a description of how the proposed program will be
        coordinated with other Federal, State, and local activities
        and activities conducted by Indian tribes, including
        vocational, adult and bilingual education programs, job
        training provided with funds available under the Job
        Training Partnership Act and the Family Support Act of
        1988, and housing and community development programs,
        including programs that receive assistance under section
        106 of the Housing and Community Development Act of 1974;

          '(I) assurances that there will be a sufficient number of
        adequately trained supervisory personnel in the program who
        have attained the level of journeyman or its equivalent;

          '(J) a description of the applicant's relationship with
        local building trade unions regarding their involvement in
        training, and the relationship of the Youthbuild program
        with established apprenticeship programs;

          '(K) a description of activities that will be undertaken
        to develop the leadership skills of participants;

          '(L) a detailed budget and a description of the system of
        fiscal controls and auditing and accountability procedures
        that will be used to ensure fiscal soundness;

          '(M) a description of the commitments for any additional
        resources to be made available to the program from the
        applicant, from recipients of other Federal, State or local
        housing and community development assistance who will
        sponsor any part of the construction, rehabilitation,
        operation and maintenance, or other housing and community
        development activities undertaken as part of the program,
        or from other Federal, State or local activities and
        activities conducted by Indian tribes, including, but not
        limited to, vocational, adult and bilingual education
        programs, and job training provided with funds available
        under the Job Training Partnership Act and the Family
        Support Act of 1988;

          '(N) identification and description of the financing
        proposed for any -

              '(i) rehabilitation;

              '(ii) acquisition of the property; or

              '(iii) construction;

          '(O) identification and description of the entity that
        will operate and manage the property;

          '(P) a certification by the public official responsible
        for submitting the comprehensive housing affordability
        strategy under section 105 of the Cranston-Gonzalez
        National Affordable Housing Act that the proposed
        activities are consistent with the approved housing
        strategy of the State or unit of general local government
        within which the project is located; and

          '(Q) a certification that the applicant will comply with
        the requirements of the Fair Housing Act, title VI of the
        Civil Rights Act of 1964, section 504 of the Rehabilitation
        Act of 1973, and the Age Discrimination Act of 1975, and
        will affirmatively further fair housing.

  '(d) Selection Criteria. - The Secretary shall establish
selection criteria for assistance under this section, which shall
include -

      '(1) the qualifications or potential capabilities of the
    applicant;

      '(2) the feasibility of the Youthbuild program;

      '(3) the potential for developing a successful Youthbuild
    program;

      '(4) the need for the prospective project, as determined by
    the degree of economic distress of the community from which
    participants would be recruited (such as poverty, youth
    unemployment, number of individuals who have dropped out of
    high school) and of the community in which the housing proposed
    to be constructed or rehabilitated would be located (such as
    incidence of homelessness, shortage of affordable housing,
    poverty);

      '(5) the apparent commitment of the applicant to leadership
    development, education, and training of participants;

      '(6) the inclusion of previously homeless tenants in the
    housing provided;

      '(7) the commitment of other resources to the program by the
    applicant and by recipients of other Federal, State or local
    housing and community development assistance who will sponsor
    any part of the construction, rehabilitation, operation and
    maintenance, or other housing and community development
    activities undertaken as part of the program, or by other
    Federal, State or local activities and activities conducted by
    Indian tribes, including, but not limited to, vocational, adult
    and bilingual education programs, and job training provided
    with funds available under the Job Training Partnership Act and
    the Family Support Act of 1988; and

      '(8) such other factors as the Secretary determines to be
    appropriate for purposes of carrying out the program
    established by this subtitle in an effective and efficient
    manner.

  '(e) Priority for Applicants Who Obtain Housing Money From Other
Sources. - The Secretary shall give priority in the award of grants
under this section to applicants to the extent that they propose to
finance activities described in paragraphs (1), (2), and (6) of
subsection (b) from funds provided from Federal, State, local, or
private sources other than assistance under this subtitle.

  '(f) Approval. - The Secretary shall notify each applicant, not
later than 4 months after the date of the submission of the
application, whether the application is approved or not approved.

  '(g) Combined Planning and Implementation Grant Application
Procedure. -  The Secretary shall develop a procedure under which
an applicant may apply at the same time and in a single application
for a planning grant and an implementation grant, with receipt of
the implementation grant conditioned on successful completion of
the activities funded by the planning grant.

'SEC. 455. YOUTHBUILD PROGRAM REQUIREMENTS.

  '(a) Residential Rental Housing. - Each residential rental
housing project receiving assistance under this subtitle shall meet
the following requirements:

      '(1) Occupancy by low- and very low-income families. - In the
    project -

          '(A) at least 90 percent of the units shall be occupied,
        or available for occupancy, by individuals and families
        with incomes less than 60 percent of the area median
        income, adjusted for family size; and

          '(B) the remaining units shall be occupied, or available
        for occupancy, by low-income families.

      '(2) Tenant protections. -

          '(A) Lease. - The lease between a tenant and an owner of
        residential rental housing assisted under this subtitle
        shall be for not less than 1 year, unless otherwise
        mutually agreed to by the tenant and the owner, and shall
        contain such terms and conditions as the Secretary shall
        determine to be appropriate.

          '(B) Termination of tenancy. - An owner shall not
        terminate the tenancy or refuse to renew the lease of a
        tenant of residential rental housing assisted under this
        title except for serious or repeated violation of the terms
        and conditions of the lease, for violation of applicable
        Federal, State, or local law, or for other good cause.  Any
        termination or refusal to renew must be preceded by not
        less than 30 days by the owner's service upon the tenant of
        a written notice specifying the grounds for the action.

          '(C) Maintenance and replacement. - The owner of
        residential rental housing assisted under this subtitle
        shall maintain the premises in compliance with all
        applicable housing quality standards and local code
        requirements.

          '(D) Tenant selection. - The owner of residential rental
        housing assisted under this subtitle shall adopt written
        tenant selection policies and criteria that -

              '(i) are consistent with the purpose of providing
            housing for very low-income and low-income families and
            individuals;

              '(ii) are reasonably related to program eligibility
            and the applicant's ability to perform the obligations
            of the lease;

              '(iii) give reasonable consideration to the housing
            needs of families that would qualify for a preference
            under section 6(c)(4)(A) of the United States Housing
            Act of 1937; and

              '(iv) provide for (I) the selection of tenants from a
            written waiting list in the chronological order of
            their application, to the extent practicable, and (II)
            for the prompt notification in writing of any rejected
            applicant of the grounds for any rejection.

      '(3) Limitation on rental payments. - Tenants in each project
    shall not be required to pay rent in excess of the amount
    provided under section 3(a) of the United States Housing Act of
    1937.

      '(4) Tenant participation plan. - For each project owned by a
    nonprofit organization, the organization shall provide a plan
    for and follow a program of tenant participation in management
    decisions.

      '(5) Prohibition against discrimination. - A unit in a
    project assisted under this subtitle may not be refused for
    leasing to a family holding tenant-based assistance under
    section 8 of the United States Housing Act of 1937 because of
    the status of the prospective tenant as a holder of such
    assistance.

  '(b) Transitional Housing. - Each transitional housing project
receiving assistance under this subtitle shall adhere to the
requirements regarding service delivery, housing standards, and
rent limitations applicable to comparable housing receiving
assistance under title IV of the Stewart B. McKinney Homeless
Assistance Act.

  '(c) Limitations on Profits for Rental and Transitional Housing.
-

      '(1) Monthly rental limitation. - The aggregate monthly
    rental for each eligible project may not exceed the operating
    costs of the project (including debt service, management,
    adequate reserves, and other operating costs) plus a 6 percent
    return on any equity investment of the project owner.

      '(2) Profit limitations on partners. - A nonprofit
    organization that receives assistance under this subtitle for a
    project shall agree to use any profit received from the
    operation, sale, or other disposition of the project for the
    purpose of providing housing for low- and moderate-income
    families.  Profit-motivated partners in a nonprofit partnership
    may receive -

          '(A) not more than a 6 percent return on their equity
        investment from project operations; and

          '(B) upon disposition of the project, not more than an
        amount equal to their initial equity investment plus a
        return on that investment equal to the increase in the
        Consumer Price Index for the geographic location of the
        project since the time of the initial investment of such
        partner in the project.

  '(d) Homeownership. - Each homeownership project that receives
assistance under this subtitle shall comply with the requirements
of subtitle B or subtitle C of this title.

  '(e) Restrictions on Conveyance. - The ownership interest in a
project that receives assistance under this subtitle may not be
conveyed unless the instrument of conveyance requires a subsequent
owner to comply with the same restrictions imposed upon the
original owner.

  '(f) Conversion of Transitional Housing. - The Secretary may
waive the requirements of subsection (b) to permit the conversion
of a transitional housing project to a permanent housing project
only if such housing would meet the requirements for residential
rental housing specified in this section.

  '(g) Period of Restrictions. - A project that receives assistance
under this subtitle shall comply with the requirements of this
section for the remaining useful life of the property.

'SEC. 456. ADDITIONAL PROGRAM REQUIREMENTS.

  '(a) Eligible Participants. -

      '(1) In general. - Except as provided in paragraph (2), an
    individual may participate in a Youthbuild program receiving
    assistance under this subtitle only if such individual is -

          '(A) 16 to 24 years of age, inclusive;

          '(B) a very low-income individual or a member of a very
        low-income family; and

          '(C) an individual who has dropped out of high school.

      '(2) Exception for individuals not meeting income or
    educational need requirements. - Not more than 25 percent of
    the participants in such program may be individuals who do not
    meet the requirements of either paragraphs (1)(B) or (C), but
    who have educational needs despite attainment of a high school
    diploma or its equivalent.

      '(3) Participation limitation. - Any eligible individual
    selected for full-time participation in a Youthbuild program
    may be offered full-time participation for a period of not less
    than 6 months and not more than 24 months.

  '(b) Minimum Time Devoted to Educational Services and Activities.
-  A Youthbuild program receiving assistance under this subtitle
shall be structured so that 50 percent of the time spent by
participants in the program is devoted to educational services and
activities, such as those specified in subparagraphs (B) through
(F) of section 454(b)(4).

  '(c) Authority Restriction. - No provision of this subtitle may
be construed to authorize any agency, officer, or employee of the
United States to exercise any direction, supervision, or control
over the curriculum, program of instruction, administration, or
personnel of any educational institution, school, or school system,
or over the selection of library resources, textbooks, or other
printed or published instructional materials by any educational
institution or school system.

  '(d) State and Local Standards. - All educational programs and
activities supported with funds provided under this subtitle shall
be consistent with applicable State and local educational
standards.  Standards and procedures with respect to the awarding
of academic credit and certifying educational attainment in such
programs shall be consistent with applicable State and local
educational standards.

  '(e) Wages, Labor Standards, and Nondiscrimination. - To the
extent consistent with the provisions of this subtitle, sections
142, 143 and 167 of the Job Training Partnership Act, relating to
wages and benefits, labor standards, and nondiscrimination, shall
apply to the programs conducted under this subtitle as if such
programs were conducted under the Job Training Partnership Act.
This section may not be construed to prevent a recipient of a grant
under this subtitle from using funds from non-Federal sources to
increase wages and benefits under such programs, if appropriate.

'SEC. 457. DEFINITIONS.

  'For purposes of this subtitle:

      '(1) Adjusted income. - The term 'adjusted income' has the
    meaning given the term in section 3(b) of the United States
    Housing Act of 1937.

      '(2) Applicant. - The term 'applicant' means a public or
    private nonprofit agency, including -

          '(A) a community-based organization;

          '(B) an administrative entity designated under section
        103(b)(1)(B) of the Job Training Partnership Act;

          '(C) a community action agency;

          '(D) a State and local housing development agency;

          '(E) a community development corporation;

          '(F) a State and local youth service and conservation
        corps; and

          '(G) any other entity eligible to provide education and
        employment training under other Federal employment training
        programs.

      '(3) Community-based organization. - The term
    'community-based organization' means a private nonprofit
    organization that -

          '(A) maintains, through significant representation on the
        organization's governing board or otherwise, accountability
        to low-income community residents and, to the extent
        practicable, low-income beneficiaries of programs receiving
        assistance under this subtitle; and

          '(B) has a history of serving the local community or
        communities where a program receiving assistance under this
        subtitle is located.

      '(4) Homeless individual. - The term 'homeless individual'
    has the meaning given the term in section 103 of the Stewart B.
    McKinney Homeless Assistance Act.

      '(5) Housing development agency. - The term 'housing
    development agency' means any agency of a State or local
    government, or any private nonprofit organization that is
    engaged in providing housing for homeless or low-income
    families.

      '(6) Income. - The term 'income' has the meaning given the
    term in section 3(b) of the United States Housing Act of 1937.

      '(7) Indian tribe. -  The term 'Indian tribe' has the same
meaning given such term in section 102(a)(17) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302(a)(17)).

      '(8) Individual who has dropped out of high school. - The
    term 'individual who has dropped out of high school' means an
    individual who is neither attending any school nor subject to a
    compulsory attendance law and who has not received a secondary
    school diploma or a certificate of equivalency for such
    diploma.

      '(9) Institution of higher education. - The term 'institution
    of higher education' has the meaning given the term in section
    1201(a) of the Higher Education Act of 1965.

      '(10) Limited-english proficiency. - The term
    'limited-English proficiency' has the meaning given the term in
    section 7003 of the Bilingual Education Act.

      '(11) Low-income family. - The term 'low-income family' has
    the meaning given the term in section 3(b) of the United States
    Housing Act of 1937.

      '(12) Offender. - The term 'offender' means any adult or
    juvenile with a record of arrest or conviction for a criminal
    offense.

      '(13) Qualified nonprofit agency. - The term 'qualified
    public or private nonprofit agency' means any nonprofit agency
    that has significant prior experience in the operation of
    projects similar to the Youthbuild program authorized under
    this subtitle and that has the capacity to provide effective
    technical assistance.

      '(14) Related facilities. -  The term 'related facilities'
includes cafeterias or dining halls, community rooms or buildings,
appropriate recreation facilities, and other essential service
facilities.

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

      '(16) State. - The term 'State' means any of the several
    States, the District of Columbia, the Commonwealth of Puerto
    Rico, the Commonwealth of the Northern Mariana Islands, the
    Virgin Islands, Guam, American Samoa, the Trust Territories of
    the Pacific Islands, or any other territory or possession of

    the United States.

      '(17) Transitional housing. - The term 'transitional housing'
    means a project that has as its purpose facilitating the
    movement of homeless individuals and families to independent
    living within a reasonable amount of time.  Transitional
    housing includes housing primarily designed to serve
    deinstitutionalized homeless individuals and other homeless
    individuals with mental or physical disabilities and homeless
    families with children.

      '(18) Very low-income family. - The term 'very low-income
    family' has the meaning given the term in section 3(b) of the
    United States Housing Act of 1937.

      '(19) Youthbuild program. - The term 'Youthbuild program'
    means any program that receives assistance under this subtitle
    and provides disadvantaged youth with opportunities for
    employment, education, leadership development, and training in
    the construction or rehabilitation of housing for homeless
    individuals and members of low- and very low-income families.

'SEC. 458. MANAGEMENT AND TECHNICAL ASSISTANCE.

  '(a) Secretary Assistance. - The Secretary may enter into
contracts with a qualified public or private nonprofit agency to
provide assistance to the Secretary in the management, supervision,
and coordination of Youthbuild programs receiving assistance under
this subtitle.

  '(b) Sponsor Assistance. - The Secretary shall enter into
contracts with a qualified public or private nonprofit agency to
provide appropriate training, information, and technical assistance
to sponsors of programs assisted under this subtitle.

  '(c) Application Preparation. - Technical assistance may also be
provided in the development of program proposals and the
preparation of applications for assistance under this subtitle to
eligible entities which intend or desire to submit such
applications.  Community-based organizations shall be given first
priority in the provision of such assistance.

  '(d) Reservation of Funds. - In each fiscal year, the Secretary
shall reserve 5 percent of the amounts available for activities
under this subtitle pursuant to section 402 to carry out
subsections (b) and (c) of this section.

'SEC. 459. CONTRACTS.

  'Each Youthbuild program shall carry out the services and
activities under this subtitle directly or through arrangements or
under contracts with administrative entities designated under
section 103(b)(1)(B) of the Job Training Partnership Act, with
State and local educational agencies, institutions of higher
education, State and local housing development agencies, or with
other public agencies, including agencies of Indian tribes, and
private organizations.

'SEC. 460. REGULATIONS.

  'The Secretary shall issue any regulations necessary to carry out
this subtitle.'.

SEC. 165. EXTENSION FOR COMMENCEMENT OF CERTAIN CONSTRUCTION.

  Notwithstanding section 17(d)(4)(G) of the United States Housing
Act of 1937, the Secretary of Housing and Urban Development shall
extend the deadline for commencement of construction until
September 30, 1993, for the application for assistance under such
section 17 for HDG project number IL004HG702, and upon commencement
of construction shall execute the grant agreement for such project
as currently approved or amended.

                SUBTITLE E - HOMEOWNERSHIP PROGRAMS

SEC. 181. HOPE PROGRAMS.

  (a) Authorization of Appropriations and Technical Assistance. -

      (1) In general  . - Title IV of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12871 et seq.) is
amended by inserting after section 401 the following new section:

'SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

  '(a) Fiscal Year 1993. - There are authorized to be appropriated
for grants under this title $855,000,000 for fiscal year 1993, of
which -

      '(1) $285,000,000 shall be available for activities
    authorized under title III of the United States Housing Act of
    1937, of which up to $4,500,000 of any amounts appropriated may
    be made available for technical assistance to potential
    applicants, applicants and recipients of assistance under this
    title;

      '(2) $285,000,000 shall be available for activities
    authorized under subtitle B, of which up to $3,250,000 of any
    amounts appropriated may be made available for technical
    assistance to potential applicants, applicants and recipients
    of assistance under this subtitle; and

      '(3) $285,000,000 shall be available for activities under
    subtitle C, of which up to $2,250,000 of any amounts
    appropriated may be made available for technical assistance to
    potential applicants, applicants and recipients of assistance
    under this subtitle.

Of the amounts appropriated pursuant to this subsection, up to
$40,000,000, but not less than 5 percent, shall be available for
activities authorized under subtitle D. Any amount appropriated
pursuant to this subsection shall remain available until expended.

  '(b) Fiscal Year 1994. - There are authorized to be appropriated
for grants under this title $883,641,000 for fiscal year 1994, of
which -

      '(1) $294,547,000 shall be available for activities
    authorized under title III of the United States Housing Act of
    1937, up to $4,500,000 of which may be made available for
    technical assistance to potential applicants, applicants and
    recipients of assistance under this title;

      '(2) $294,547,000 shall be available for activities
    authorized under subtitle B, up to $3,250,000 of which may be
    made available for technical assistance to potential
    applicants, applicants and recipients of assistance under this
    subtitle; and

      '(3) $294,547,000 shall be available for activities under
    subtitle C, up to $2,250,000 of which may be made available for
    technical assistance to potential applicants, applicants and
    recipients of assistance under this subtitle.

Of the amounts appropriated pursuant to this subsection, up to
$41,680,000, but not less than 5 percent, shall be available for
activities authorized under subtitle D. Any amount appropriated
pursuant to this subsection shall remain available until expended.

  '(c) Technical Assistance. -  Technical assistance made available
under title III of the United States Housing Act of 1937 or
subtitle B or subtitle C of this title may include, but shall not
be limited to, training, clearinghouse services, the collection,
processing and dissemination of program information useful for
local and national program management, and provision of seed money.
Such technical assistance may be made available directly, or
indirectly under contracts and grants, as appropriate.  In any
fiscal year, no single applicant, potential applicant, or recipient
under title III of the United States Housing Act of 1937, or
subtitle B or subtitle C of this title may receive technical
assistance in an amount exceeding 20 percent of the total amount
made available for technical assistance under such title or
subtitle for the fiscal year.'.

      (2) Conforming amendments. -

          (A) Hope i. -  Section 301 of the United States Housing
Act of 1937 (42 U.S.C. 1437aaa(c)) is amended by striking
subsection (c).

          (B) Hope ii and hope iii. -  Title IV of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12871
et seq.) is amended -

              (i) by striking subsection (c) of section 421; and

              (ii) in section 441 -

                  (I) by striking '(a) In General. -  '; and

                  (II) by striking subsection (b).

      (3) GAO audit of technical assistance contracts  . - The
Comptroller General of the United States shall conduct an audit of
all of the technical assistance contracts awarded for fiscal years
1993 and 1994 pursuant to section 402 of the Cranston-Gonzalez
National Affordable Housing Act. The Comptroller General shall
submit a report to the Congress describing the results of such
audit not later than September 30, 1994.

  (b) HOPE I Matching Funding. - Section 303(c) of the United
States Housing Act of 1937 (42 U.S.C. 1437aaa-2(c)(1)) is amended -

      (1) in paragraph (1), by inserting after 'expenses' the
    following: 'and replacement housing'; and

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

      '(3) Reduction of requirement. -  The Secretary shall reduce
the matching requirement for homeownership programs carried out
under this section in accordance with the formula established under
section 220(d) of the Cranston-Gonzalez National Affordable Housing
Act.'.

  (c) Grant Selection Criteria for HOPE I. - Section 303(e)(8) of
the United States Housing Act of 1937 (42 U.S.C. 1437aaa-2(e)(8))
is amended -

      (1) by striking 'of the type assisted under this title'; and

      (2) by striking 'appreciably'.

  (d) Eligibility of Mutual Housing Associations for HOPE II Grants
. - Section 426(1) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12876(1)) is amended by adding at the end
the following new subparagraph:

          '(G) A mutual housing association.'.

  (e) Eligible Property Under HOPE II. - Section 426(3)(D) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12876(3)(D)) is amended by inserting before the period at the end
the following 'or an agency or instrumentality thereof'.

  (f) Preference for Acquisition of Vacant Units Under HOPE III. -
Section 444 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12894) is amended by adding at the end the following
new subsection:

  '(f) Preference for Acquisition of Vacant Units. - Each
homeownership program under this subtitle shall provide that, in
making vacant units in eligible properties available for
acquisition by eligible families, preference shall be given to
eligible families who reside in public or Indian housing.'.

  (g) Transfer of Scattered Site Public and Indian Housing To HOPE
Programs  . -

      (1) Hope i  . -

          (A) In general  . - Sections 303(b)(2) and 304(d) of the
United States Housing Act of 1937 (42 U.S.C. 1437aaa-2(b)(2) and 42
U.S.C. 1437aaa-3(d)) are each amended by striking '(not including
scattered site single family housing of a public housing agency)'.

          (B) Operating subsidies  . - Section 303(b)(9) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
1437aaa-2(b)(9)) is amended by inserting before the period at the
end the following: ', and except that implementation grants may not
be used under this paragraph to fund operating expenses for
scattered site public housing acquired under a homeownership
program'.

      (2) Hope iii  . - Section 446(4) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12896(4)) is amended by
striking '(including scattered site single family properties, and'
and inserting '(excluding public or Indian housing under the United
States Housing Act of 1937 and including'.

  (h) Eligibility of Other Federal Property for HOPE Programs. -
Sections 426(3)(D) and 446(4) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12876(3)(D) and 42 U.S.C.
12896(4)) are each amended by inserting after 'Corporation,' the
following: 'the Federal Deposit Insurance Corporation, the
Secretary of Defense, the Secretary of Transportation, the General
Services Administration, any other Federal agency,'.

SEC. 182. NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION.

  (a) Extension of Trust. - Section 310 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12859) is amended by
striking 'on September 30, 1993' and inserting 'September 30,
1994'.

  (b) Authorization of Appropriations. - Section 308 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12857)
is amended to read as follows:

'SEC. 308. AUTHORIZATION OF APPROPRIATIONS.

  'There are authorized to be appropriated for assistance payments
under this subtitle $520,665,600 for fiscal year 1993 and
$542,533,555 for fiscal year 1994, of which such sums as may be
necessary shall be available in each such fiscal year for use under
section 303(e). Any amount appropriated under this section shall be
deposited in the Fund and shall remain available until expended,
subject to the provisions of section 311.'.

  (c) Use of Trust Amounts in Connection With Mortgage Revenue
Bonds. -

      (1) In general. - Section 303 of the Cranston-Gonzalez
    National Affordable Housing Act (42 U.S.C. 12852) is amended by
    adding at the end the following new subsection:

  '(e) Assistance in Connection With Housing Financed With Mortgage
Revenue Bonds. -

      '(1) Authority. - The Trust shall provide assistance for
    first-time homebuyers in the form of interest rate buydowns and
    downpayment assistance under this subsection.  Such assistance
    shall be available only with respect to mortgages for the
    purchase of residences (A) financed with the proceeds of a
    qualified mortgage bond (as such term is defined in section 143
    of the Internal Revenue Code of 1986), or (B) for which a
    credit is allowable under section 25 of such Code.

      '(2) Eligibility  . - To be eligible for assistance under
this subsection, homebuyers and mortgages shall also meet the
requirements under subsection (b) of this section, except that -

          '(A) the certification under subsection (b)(3) shall not
        be required for assistance under this subsection;

          '(B) the provisions of subsection (b)(2) shall not apply
        to assistance under this section; and

          '(C) the aggregate income of the homebuyer and the
        members of the family of the homebuyer residing with the
        homebuyer, for the 12-month period preceding the date of
        the application of the homebuyer for assistance under this
        subsection, shall not exceed 80 percent of the median
        income for a family of 4 persons (as adjusted for family
        size) in the applicable metropolitan statistical area.

      '(3) Limitation of assistance. - Notwithstanding subsection
    (a), assistance payments for first-time homebuyers under this
    subsection shall be provided in the following manners:

          '(A) Interest rate buydowns. - Assistance payments to
        decrease the rate of interest payable on the mortgages by
        the homebuyers, in an amount not exceeding -

              '(i) in the first year of the mortgage, 2.0 percent
            of the total principal obligation of the mortgage;

              '(ii) in the second year of the mortgage, 1.5 percent
            of the total principal obligation of the mortgage;

              '(iii) in the third year of the mortgage, 1.0 percent
            of the total principal obligation of the mortgage; and

              '(iv) in the fourth year of the mortgage, 0.5 percent
            of the total principal obligation of the mortgage.

          '(B) Downpayment assistance. - Assistance payments to
        provide amounts for downpayments on mortgages by the
        homebuyers, in an amount not exceeding 2.5 percent of the
        principal obligation of the mortgage.

      '(3) Availability. - The Trust may make assistance payments
    under subparagraphs (A) and (B) of paragraph (3) with respect
    to a single mortgage of a homebuyer.'.

      (2) Conforming amendment. - Section 303(a) of the
    Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
    12852(a)) is amended by adding at the end the following new
    paragraph:

      '(3) Assistance in connection with mortgage revenue bonds
    financing. - Interest rate buydowns and downpayment assistance
    in the manner provided in subsection (e).'.

  (d) Eligibility of Manufactured Home Owners. - Section 303(b)(1)
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12852(b)(1)) is amended -

      (1) in subparagraph (B), by striking 'or' at the end;

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

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

          '(D) meets the requirements of subparagraph (A), (B), or
        (C), except for owning, as a principal residence, a
        dwelling unit whose structure is -

              '(i) not permanently affixed to a permanent
            foundation in accordance with local or other applicable
            regulations; or

              '(ii) not in compliance with State, local, or model
            building codes, or other applicable codes, and cannot
            be brought into compliance with such codes for less
            than the cost of constructing a permanent structure.'.

  (e) Second Mortgage Assistance  . - Section 303(a) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12852(a)) is amended by adding after paragraph (3) (as added by
subsection (c)(3) of this section) the following new paragraphs:

      '(4) Second mortgage assistance. - Assistance payments to
    provide loans (secured by second mortgages) with deferred
    payment of interest and principal; and

      '(5) Capitalization of revolving loan funds. - Grants to
    public organizations or agencies to establish revolving loan
    funds to provide homeownership assistance to eligible
    first-time homebuyers consistent with the requirements of this
    subtitle.  Such grants shall be matched by an equal amount of
    local investment in such revolving loan funds.  Any proceeds or
    repayments from loans made under this paragraph shall be
    returned to the revolving loan fund established under this
    paragraph to be used for purposes related to this section.'.

SEC. 183. NEHEMIAH HOUSING OPPORTUNITY GRANTS.

  (a) Homeowner Incentive. - Section 604 of the Housing and
Community Development Act of 1987 (12 U.S.C. 1715l note) is amended
-

      (1) in subsection (b)(4), by inserting before the period the
    following: ', subject to the provisions of subsection (c)'; and

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

  '(c) Homeowner Incentive. - The nonprofit organization may
provide that, upon the sale or transfer of a property purchased
with a loan made under this section, any proceeds remaining after
repaying the first mortgage shall be distributed in the following
order:

      '(1) Downpayment. - The amount of the downpayment made by the
    seller or transferor upon the purchase of the property shall be
    paid to the seller or transferor.

      '(2) Loan and profit. - Any amounts remaining after
    distribution under paragraph (1) shall be shared equally
    between the Secretary and the seller or transferor, but only to
    the extent that the Secretary recovers an amount equal to the
    amount of the loan made under this section.  If such remaining
    amounts are insufficient for the Secretary to recover the full
    amount of the loan made under this section, the second mortgage
    held by the Secretary under subsection (b)(1) shall be
    cancelled.

      '(3) Profit. - Any amounts remaining after distribution under
    paragraphs (1) and (2) shall be paid to the seller or
    transferor.'.

  (b) Conforming Amendments. - Section 606(e)(5) of the Housing and
Community Development Act of 1987 (12 U.S.C. 1715l note) is amended
-

      (1) by inserting 'subject to the provisions of section
    604(c),' after the comma; and

      (2) by striking '(in which case' and all that follows through
    'repaid)'.

  (c) Applicability. - The amendments made by this section shall
apply to any loan made under section 604 of the Housing and
Community Development Act of 1987 after July 1, 1990.

SEC. 184. LOAN GUARANTEES FOR INDIAN HOUSING.

  (a) Authority. - To provide access to sources of private
financing to Indian families and Indian housing authorities who
otherwise could not acquire housing financing because of the unique
legal status of Indian trust land, the Secretary may guarantee not
to exceed 100 percent of the unpaid principal and interest due on
any loan eligible under subsection (b) made to an Indian family or
Indian housing authority.

  (b) Eligible Loans. - Loans guaranteed pursuant to this section
shall meet the following requirements:

      (1) Eligible borrowers. - The loans shall be made only to
    borrowers who are Indian families or Indian housing
    authorities.

      (2) Eligible housing. - The loan shall be used to construct,
    acquire, or rehabilitate 1- to 4-family dwellings that are
    standard housing and are located on trust land or land located
    in an Indian or Alaska Native area.

      (3) Security. - The loan may be secured by any collateral
    authorized under existing Federal law or applicable State or
    tribal law.

      (4) Lenders. - The loan shall be made only by a lender
    approved by and meeting qualifications established by the
    Secretary, except that loans otherwise insured or guaranteed by
    an agency of the Federal Government or made by an organization
    of Indians from amounts borrowed from the United States shall
    not be eligible for guarantee under this section.  The
    following lenders are deemed to be approved under this
    paragraph:

          (A) Any mortgagee approved by the Secretary of Housing
        and Urban Development for participation in the single
        family mortgage insurance program under title II of the
        National Housing Act.

          (B) Any lender whose housing loans under chapter 37 of
        title 38, United States Code are automatically guaranteed
        pursuant to section 1802(d) of such title.

          (C) Any lender approved by the Secretary of Agriculture
        to make guaranteed loans for single family housing under
        the Housing Act of 1949.

          (D) Any other lender that is supervised, approved,
        regulated, or insured by any agency of the Federal
        Government.

      (5) Terms. - The loan shall -

          (A) be made for a term not exceeding 30 years;

          (B) bear interest (exclusive of the guarantee fee under
        section 404 and service charges, if any) at a rate agreed
        upon by the borrower and the lender and determined by the
        Secretary to be reasonable, which may not exceed the rate
        generally charged in the area (as determined by the
        Secretary) for home mortgage loans not guaranteed or
        insured by any agency or instrumentality of the Federal
        Government;

          (C) involve a principal obligation not exceeding -

              (i) 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 loan is accepted for guarantee, and (II)
            95 percent of such value in excess of $25,000; and

              (ii) the amount approved by the Secretary under this
            section; and

          (D) involve a payment on account of the property (i) in
        cash or its equivalent, or (ii) through the value of any
        improvements to the property made through the skilled or
        unskilled labor of the borrower, as the Secretary shall
        provide.

  (c) Certificate of Guarantee. -

      (1) Approval process. - Before the Secretary approves any
    loan for guarantee under this section, the lender shall submit
    the application for the loan to the Secretary for examination.
    If the Secretary approves the loan for guarantee, the Secretary
    shall issue a certificate under this paragraph as evidence of
    the guarantee.

      (2) Standard for approval. - The Secretary may approve a loan
    for guarantee under this section and issue a certificate under
    this paragraph only if the Secretary determines there is a
    reasonable prospect of repayment of the loan.

      (3) Effect. - A certificate of guarantee issued under this
    paragraph by the Secretary shall be conclusive evidence of the
    eligibility of the loan for guarantee under the provisions of
    this section and the amount of such guarantee.  Such evidence
    shall be incontestable in the hands of the bearer and the full
    faith and credit of the United States is pledged to the payment
    of all amounts agreed to be paid by the Secretary as security
    for such obligations.

      (4) Fraud and misrepresentation. - This subsection may not be
    construed to preclude the Secretary from establishing defenses
    against the original lender based on fraud or material
    misrepresentation or to bar the Secretary from establishing by
    regulations in effect on the date of issuance or disbursement,
    whichever is earlier, partial defenses to the amount payable on
    the guarantee.

  (d) Guarantee Fee. - The Secretary shall fix and collect a
guarantee fee for the guarantee of loans under this section, which
may not exceed the amount equal to 1 percent of the principal
obligation of the loan.  The fee shall be paid by the lender at
time of issuance of the guarantee and shall be adequate, in the
determination of the Secretary, to cover expenses and probable
losses.  The Secretary shall deposit any fees collected under this
subsection in the Indian Housing Loan Guarantee Fund established
under subsection (i).

  (e) Liability Under Guarantee. - The liability under a guarantee
provided under this section shall decrease or increase on a pro
rata basis according to any decrease or increase in the amount of
the unpaid obligation under the provisions of the loan agreement.

  (f) Transfer and Assumption. - Notwithstanding any other
provision of law, any loan guaranteed under this section, including
the security given for the loan, may be sold or assigned by the
lender to any financial institution subject to examination and
supervision by an agency of the Federal Government or of any State
or the District of Columbia.

  (g) Disqualification of Lenders and Civil Money Penalties. -

      (1) In general. - If the Secretary determines that any lender
    or holder of a guarantee certificate under subsection (c) has
    failed to maintain adequate accounting records, to adequately
    service loans guaranteed under this section, to exercise proper
    credit or underwriting judgment, or has engaged in practices
    otherwise detrimental to the interest of a borrower or the
    United States, the Secretary may -

          (A) refuse, either temporarily or permanently, to
        guarantee any further loans made by such lender or holder;

          (B) bar such lender or holder from acquiring additional
        loans guaranteed under this section; and

          (C) require that such lender or holder assume not less
        than 10 percent of any loss on further loans made or held
        by the lender or holder that are guaranteed under this
        section.

      (2) Civil money penalties for intentional violations. - If
    the Secretary determines that any lender or holder of a
    guarantee certificate under subsection (c) has intentionally
    failed to maintain adequate accounting records, to adequately
    service loans guaranteed under this section, or to exercise
    proper credit or underwriting judgment, the Secretary may
    impose a civil money penalty on such lender or holder in the
    manner and amount provided under section 536 of the National
    Housing Act with respect to mortgagees and lenders under such
    Act.

      (3) Payment on loans made in good faith. - Notwithstanding
    paragraphs (1) and (2), the Secretary may not refuse to pay
    pursuant to a valid guarantee on loans of a lender or holder
    barred under this subsection if the loans were previously made
    in good faith.

  (h) Payment Under Guarantee. -

      (1) Lender options. -

          (A) In general. - In the event of default by the borrower
        on a loan guaranteed under this section, the holder of the
        guarantee certificate shall provide written notice of the
        default to the Secretary. Upon providing such notice, the
        holder of the guarantee certificate shall be entitled to
        payment under the guarantee (subject to the provisions of
        this section) and may proceed to obtain payment in one of
        the following manners:

              (i) Foreclosure. - The holder of the certificate may
            initiate foreclosure proceedings in a court of
            competent jurisdiction (after providing written notice
            of such action to the Secretary) and upon a final order
            by the court authorizing foreclosure and submission to
            the Secretary of a claim for payment under the
            guarantee, the Secretary shall pay to the holder of the
            certificate the pro rata portion of the amount
            guaranteed (as determined pursuant to subsection (e))
            plus reasonable fees and expenses as approved by the
            Secretary. The Secretary shall be subrogated to the
            rights of the holder of the guarantee and the lender
            holder shall assign the obligation and security to the
            Secretary.

              (ii) No foreclosure. - Without seeking a judicial
            foreclosure (or in any case in which a foreclosure
            proceeding initiated under clause (i) continues for a
            period in excess of 1 year), the holder of the
            guarantee may submit to the Secretary a claim for
            payment under the guarantee and the Secretary shall
            only pay to such holder for a loss on any single loan
            an amount equal to 90 percent of the pro rata portion
            of the amount guaranteed (as determined under
            subsection (e)). The Secretary shall be subrogated to
            the rights of the holder of the guarantee and the
            holder shall assign the obligation and security to the
            Secretary.

          (B) Requirements. - Before any payment under a guarantee
        is made under subparagraph (A), the holder of the guarantee
        shall exhaust all reasonable possibilities of collection.
        Upon payment, in whole or in part, to the holder, the note
        or judgment evidencing the debt shall be assigned to the
        United States and the holder shall have no further claim
        against the borrower or the United States. The Secretary
        shall then take such action to collect as the Secretary
        determines appropriate.

      (2) Assignment by secretary. - Notwithstanding paragraph (1),
    upon receiving notice of default on a loan guaranteed under
    this section from the holder of the guarantee, the Secretary
    may accept assignment of the loan if the Secretary determines
    that the assignment is in the best interests of the United
    States. Upon assignment the Secretary shall pay to the holder
    of the guarantee the pro rata portion of the amount guaranteed
    (as determined under subsection (e)). The Secretary shall be
    subrogated to the rights of the holder of the guarantee and the
    holder shall assign the obligation and security to the
    Secretary.

      (3) Limitations on liquidation. - In the event of a default
    by the borrower on a loan guaranteed under this section
    involving a security interest in tribal allotted or trust land,
    the Secretary shall only pursue liquidation after offering to
    transfer the account to an eligible tribal member, the tribe,
    or the Indian housing authority serving the tribe or tribes.
    If the Secretary subsequently proceeds to liquidate the
    account, the Secretary shall not sell, transfer, or otherwise
    dispose of or alienate the property except to one of the
    entities described in the preceding sentence.

  (i) Indian Housing Loan Guarantee Fund. -

      (1) Establishment. - There is established in the Treasury of
    the United States the Indian Housing Loan Guarantee Fund for
    the purpose of providing loan guarantees under this section.

      (2) Credits. - The Guarantee Fund shall be credited with -

          (A) any amounts, claims, notes, mortgages, contracts, and
        property acquired by the Secretary under this section, and
        any collections and proceeds therefrom;

          (B) any amounts appropriated under paragraph (7);

          (C) any guarantee fees collected under subsection (d);
        and

          (D) any interest or earnings on amounts invested under
        paragraph (4).

      (3) Use. - Amounts in the Guarantee Fund shall be available,
    to the extent provided in appropriation Acts, for -

          (A) fulfilling any obligations of the Secretary with
        respect to loans guaranteed under this section, including
        the costs (as such term is defined in section 502 of the
        Congressional Budget Act of 1974) of such loans;

          (B) paying taxes, insurance, prior liens, expenses
        necessary to make fiscal adjustment in connection with the
        application and transmittal of collections, and other
        expenses and advances to protect the Secretary for loans
        which are guaranteed under this section or held by the
        Secretary;

          (C) acquiring such security property at foreclosure sales
        or otherwise;

          (D) paying administrative expenses in connection with
        this section; and

          (E) reasonable and necessary costs of rehabilitation and
        repair to properties that the Secretary holds or owns
        pursuant to this section.

      (4) Investment. - Any amounts in the Guarantee Fund
    determined by the Secretary to be in excess of amounts
    currently required to carry out this section may be invested in
    obligations of the United States.

      (5) Limitation on commitments to guarantee loans and
    mortgages. -

          (A) Requirement of appropriations. - The authority of the
        Secretary to enter into commitments to guarantee loans
        under this section shall be effective for any fiscal year
        only to the extent or in such amounts as are or have been
        provided in appropriations Acts for such fiscal year.

          (B) Limitations on costs of guarantees. - The authority
        of the Secretary to enter into commitments to guarantee
        loans under this section shall be effective for any fiscal
        year only to the extent that amounts in the Guarantee Fund
        are or have been made available in appropriation Acts to
        cover the costs (as such term is defined in section 502 of
        the Congressional Budget Act of 1974) of such loan
        guarantees for such fiscal year.

          (C) Limitation on outstanding aggregate principal amount.
        - Subject to the limitations in subparagraphs (A) and (B),
        the Secretary may enter into commitments to guarantee loans
        under this section in each of fiscal years 1993 and 1994
        with an aggregate outstanding principal amount not
        exceeding such amount as may be provided in appropriation
        Acts for each such year.

      (6) Liabilities. - All liabilities and obligations of the
    assets credited to the Guarantee Fund under paragraph (2)(A)
    shall be liabilities and obligations of the Guarantee Fund.

      (7) Authorization of appropriations. - There are authorized
    to be appropriated to the Guarantee Fund to carry out this
    section such sums as may be necessary for fiscal year 1993 and
    $50,000,000 for fiscal year 1994.

  (j) Requirements for Standard Housing. - The Secretary shall, by
regulation, establish housing safety and quality standards for use
under this section.  Such standards shall provide sufficient
flexibility to permit the use of various designs and materials in
housing acquired with loans guaranteed under this section.  The
standards shall require each dwelling unit in any housing so
acquired to -

      (1) be decent, safe, sanitary, and modest in size and design;

      (2) conform with applicable general construction standards
    for the region;

      (3) contain a heating system that -

          (A) has the capacity to maintain a minimum temperature in
        the dwelling of 65 degrees Fahrenheit during the coldest
        weather in the area;

          (B) is safe to operate and maintain;

          (C) delivers a uniform distribution of heat; and

          (D) conforms to any applicable tribal heating code or, if
        there is no applicable tribal code, an appropriate county,
        State, or National code;

      (4) contain a plumbing system that -

          (A) uses a properly installed system of piping;

          (B) includes a kitchen sink and a partitional bathroom
        with lavatory, toilet, and bath or shower; and

          (C) uses water supply, plumbing, and sewage disposal
        systems that conform to any applicable tribal code or, if
        there is no applicable tribal code, the minimum standards
        established by the applicable county or State;

      (5) contain an electrical system using wiring and equipment
    properly installed to safely supply electrical energy for
    adequate lighting and for operation of appliances that conforms
    to any applicable tribal code or, if there is no applicable
    tribal code, an appropriate county, State, or National code;

      (6) be not less than -

          (A)(i) 570 square feet in size, if designed for a family
        of not more than 4 persons;

          (ii) 850 square feet in size, if designed for a family of
        not less than 5 and not more than 7 persons; and

          (iii) 1020 square feet in size, if designed for a family
        of not less than 8 persons, or

          (B) the size provided under the applicable locally
        adopted standards for size of dwelling units;

    except that the Secretary, upon the request of a tribe or
    Indian housing authority, may waive the size requirements under
    this paragraph; and

      (7) conform with the energy performance requirements for new
    construction established by the Secretary under section 526(a)
    of the National Housing Act.

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

      (1) The term 'family' means 1 or more persons maintaining a
    household, as the Secretary shall by regulation provide.

      (2) The term 'Guarantee Fund' means the Indian Housing Loan
    Guarantee Fund established under subsection (i).

      (3) The term 'Indian' means person recognized as being Indian
    or Alaska Native by an Indian tribe, the Federal Government, or
    any State.

      (4) The term 'Indian area' means the area within which an
    Indian housing authority is authorized to provide housing.

      (5) The term 'Indian housing authority' means any entity that
    -

          (A) is authorized to engage in or assist in the
        development or operation of low-income housing for Indians;
        and

          (B) is established -

              (i) by exercise of the power of self-government of an
            Indian tribe independent of State law; or

              (ii) by operation of State law providing specifically
            for housing authorities for Indians, including regional
            housing authorities in the State of Alaska.

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

      (7) The term 'standard housing' means a dwelling unit or
    housing that complies with the requirements established under
    subsection (j).

      (8) The term 'tribe' means any tribe, band, pueblo, group,
    community, or nation of Indians or Alaska Natives.

      (9) The term 'trust land' means land title to which is held
    by the United States for the benefit of an Indian or Indian
    tribe or title to which is held by an Indian tribe subject to a
    restriction against alienation imposed by the United States.

SEC. 185. ASSISTANCE UNDER SECTION 8 FOR HOMEOWNERSHIP.

  (a) Authority. - Section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f), is amended by adding at the end the
following new subsection:

  '(y) Homeownership Option  . -

      '(1) Use of assistance for homeownership  . - A family
receiving tenant-based assistance under this section may receive
assistance for occupancy of a dwelling owned by one or more members
of the family if the family -

          '(A) is a first-time homeowner;

          '(B)(i) participates in the family self-sufficiency
        program under section 23 of the public housing agency
        providing the assistance; or

          '(ii) demonstrates that the family has income from
        employment or other sources (other than public assistance),
        as determined in accordance with requirements of the
        Secretary, that is not less than twice the payment standard
        established by the public housing agency (or such other
        amount as may be established by the Secretary);

          '(C) except as provided by the Secretary, demonstrates at
        the time the family initially receives tenant-based
        assistance under this subsection that one or more adult
        members of the family have achieved employment for the
        period as the Secretary shall require;

          '(D) participates in a homeownership and housing
        counseling program provided by the agency; and

          '(E) meets any other initial or continuing requirements
        established by the public housing agency in accordance with
        requirements established by the Secretary.

      '(2) Monthly assistance payment  . -

          '(A) In general. - Notwithstanding any other provisions
        of this section governing determination of the amount of
        assistance payments under this section on behalf of a
        family, the monthly assistance payment for any family
        assisted under this subsection shall be the amount by which
        the fair market rental for the area established under
        subsection (c)(1) exceeds 30 percent of the family's
        monthly adjusted income; except that the monthly assistance
        payment shall not exceed the amount by which the monthly
        homeownership expenses, as determined in accordance with
        requirements established by the Secretary, exceeds 10
        percent of the family's monthly income.

          '(B) Exclusion of equity from income. - For purposes of
        determining the monthly assistance payment for a family,
        the Secretary shall not include in family income an amount
        imputed from the equity of the family in a dwelling
        occupied by the family with assistance under this
        subsection.

      '(3) Recapture of certain amounts  . - Upon sale of the
dwelling by the family, the Secretary shall recapture from any net
proceeds the amount of additional assistance (as determined in
accordance with requirements established by the Secretary) paid to
or on behalf of the eligible family as a result of paragraph
(2)(B).

      '(4) Downpayment requirement  . - Each public housing agency
providing assistance under this subsection shall ensure that each
family assisted shall provide from its own resources not less than
80 percent of any downpayment in connection with a loan made for
the purchase of a dwelling.  Such resources may include amounts
from any escrow account for the family established under section
23(d). Not more than 20 percent of the downpayment may be provided
from other sources, such as from nonprofit entities and programs of
States and units of general local government.

      '(5) Ineligibility under other programs  . - A family may not
receive assistance under this subsection during any period when
assistance is being provided for the family under other Federal
homeownership assistance programs, as determined by the Secretary,
including assistance under the HOME Investment Partnerships Act,
the Homeownership and Opportunity Through HOPE Act, title II of the
Housing and Community Development Act of 1987, and section 502 of
the Housing Act of 1949.

      '(6) Inapplicability of certain provisions  . - Assistance
under this subsection shall not be subject to the requirements of
the following provisions:

          '(A) Subsection (c)(3)(B) of this section.

          '(B) Subsection (d)(1)(B)(i) of this section.

          '(C) Any other provisions of this section governing
        maximum amounts payable to owners and amounts payable by
        assisted families.

          '(D) Any other provisions of this section concerning
        contracts between public housing agencies and owners.

          '(E) Any other provisions of this Act that are
        inconsistent with the provisions of this subsection.

      '(7) Reversion to rental status  . -

          '(A) FHA-insured mortgages. - If a family receiving
        assistance under this subsection for occupancy of a
        dwelling defaults under a mortgage for the dwelling insured
        by the Secretary under the National Housing Act, the family
        may not continue to receive rental assistance under this
        section unless the family (i) transfers to the Secretary
        marketable title to the dwelling, (ii) moves from the
        dwelling within the period established or approved by the
        Secretary, and (iii) agrees that any amounts the family is
        required to pay to reimburse the escrow account under
        section 23(d)(3) may be deducted by the public housing
        agency from the assistance payment otherwise payable on
        behalf of the family.

          '(B) Other mortgages. - If a family receiving assistance
        under this subsection defaults under a mortgage not insured
        under the National Housing Act, the family may not continue
        to receive rental assistance under this section unless it
        complies with requirements established by the Secretary.

          '(C) All mortgages. - A family receiving assistance under
        this subsection that defaults under a mortgage may not
        receive assistance under this subsection for occupancy of
        another dwelling owned by one or more members of the
        family.

      '(8) Definition of first-time homeowner  . - For purposes of
this subsection, the term 'first-time homeowner' means -

          '(A) a family, no member of which has had a present
        ownership interest in a principal residence during the 3
        years preceding the date on which the family initially
        receives assistance for homeownership under this
        subsection; and

          '(B) any other family, as the Secretary may prescribe.'.

  (b) Family Self-Sufficiency Program. - Section 23(d) of the
United States Housing Act of 1937 (42 U.S.C. 1437u) is amended by
adding at the end the following new paragraph:

      '(3) Use of escrow savings accounts for section 8
    homeownership. - Notwithstanding paragraph (3), a family that
    uses assistance under section 8(y) to purchase a dwelling may
    use up to 50 percent of the amount in its escrow account
    established under paragraph (3) for a downpayment on the
    dwelling.  In addition, after the family purchases the
    dwelling, the family may use any amounts remaining in the
    escrow account to cover the costs of major repair and
    replacement needs of the dwelling.  If a family defaults in
    connection with the loan to purchase a dwelling and the
    mortgage is foreclosed, the remaining amounts in the escrow
    account shall be recaptured by the Secretary.'.

  (c) Use of FHA Insurance With Section 8 Homeownership. -

      (1) In general. - Section 203 of the National Housing Act (12
    U.S.C. 1709) is amended -

          (A) in the matter preceding subparagraph (A) in
        subsection (c)(2), by inserting 'or of the General
        Insurance Fund pursuant to subsection (v)' after 'Fund';
        and

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

  '(v) Notwithstanding section 202 of this title, the insurance of
a mortgage under this section in connection with the assistance
provided under section 8(y) of the United States Housing Act of
1937 shall be the obligation of the General Insurance Fund created
pursuant to section 519 of this title.  The provisions of
subsections (a) through (h), (j), and (k) of section 204 shall
apply to such mortgages, except that (1) all references in section
204 to the Mutual Mortgage Insurance Fund or the Fund shall be
construed to refer to the General Insurance Fund, and (2) any
excess amounts described in section 204(f)(1) shall be retained by
the Secretary and credited to the General Insurance Fund.'.

      (2) General insurance fund. - Section 519(e) of the National
    Housing Act (12 U.S.C. 1735c(e)) is amended by inserting after
    '203(b)' the following: '(except as provided in section
    203(v))'.

      (3) Mortgage insurance transition premiums. - The matter
    preceding paragraph (1) in section 2103(b) of the Omnibus
    Budget Reconciliation Act of 1990 (12 U.S.C. 1709 note) is
    amended by inserting 'or of the General Insurance Fund pursuant
    to section 203(v) of the National Housing Act' after 'Fund'.

      (4) Conforming amendment  . - The third sentence of section
3(a)(1) of the United States Housing Act of 1937 (42 U.S.C.
1437a(a)(1)) is amended by inserting 'or (y) or paying rent under
section 8(c)(3)(B)' after 'section 8(o)'.

SEC. 186. ENTERPRISE ZONE HOMEOWNERSHIP OPPORTUNITY GRANTS.

  (a) Statement of Purpose. -  It is the purpose of this section -

      (1) to encourage homeownership by families in the United
    States who are not otherwise able to afford homeownership;

      (2) to encourage the redevelopment of economically depressed
    areas; and

      (3) to provide better housing opportunities in federally
    approved and equivalent State-approved enterprise zones.

  (b) Definitions. -  For purposes of this section the following
definitions shall apply:

      (1) Home. -  The term 'home' means any 1- to 4-family
dwelling.  Such term includes any dwelling unit in a condominium
project or cooperative project consisting of not more than 4
dwelling units, any town house, and any manufactured home.

      (2) Metropolitan statistical area. -  The term 'metropolitan
statistical area' means a metropolitan statistical area as
established by the Office of Management and Budget.

      (3) Nonprofit organization. -  The term 'nonprofit
organization' means a private nonprofit corporation, or other
private nonprofit legal entity, that is approved by the Secretary
as to financial responsibility.

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

      (5) State. -  The term 'State' means each of the several
States, the District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, Guam, American Samoa, the Northern Mariana
Islands, the Trust Territory of the Pacific Islands, and any other
territory or possession of the United States.

      (6) Unit of general local government. -  The term 'unit of
general local government' means any borough, city, county, parish,
town, township, village, or other general purpose political
subdivision of a State.

  (c) Assistance to Nonprofit Organizations. -

      (1) In general. -  The Secretary may provide assistance to
nonprofit organizations to carry out enterprise zone homeownership
opportunity programs to promote homeownership in federally approved
and equivalent State-approved enterprise zones in accordance with
the provisions of this section.  Such assistance shall be made in
the form of grants.

      (2) Applications. -  Applications for assistance under this
section shall be made in such form, and in accordance with such
procedures, as the Secretary may prescribe.

  (d) Eligible Uses of Assistance. -

      (1) In general. -  Any nonprofit organization receiving
assistance under this section shall use such assistance to provide
loans to families purchasing homes constructed or rehabilitated in
accordance with an enterprise zone homeownership opportunity
program approved under this section.

      (2) Specific requirements. -  Each loan made to a family
under this subsection shall -

          (A) be secured by a second mortgage held by the Secretary
        on the property involved;

          (B) be in an amount not exceeding $15,000;

          (C) bear no interest; and

          (D) be repayable to the Secretary upon the sales, lease,
        or other transfer of such property.

  (e) Program Requirements. -

      (1) In general. -  Assistance provided under this section may
be used only in connection with an enterprise zone homeownership
opportunity program of construction or rehabilitation of homes.

      (2) Family need. -  Each family purchasing a home under this
section shall -

          (A) have a family income on the date of such purchase
        that is not more than the median income for a family of 4
        persons (adjusted for family size) in the metropolitan
        statistical area in which a federally approved or
        equivalent State-approved enterprise zone is located; and

          (B) not have owned a home during the 3-year period
        preceding such purchase.

      (3) Downpayment. -  Each family purchasing a home under this
section shall make a downpayment of not less than 5 percent of the
sale price of such home.

      (4) Leasing prohibition. -  No family purchasing a home under
this section may lease such home.

  (f) Terms and Conditions of Assistance. -

      (1) Local consultation. -  No proposed enterprise zone
homeownership opportunity program may be approved by the Secretary
under this section unless the applicant involved demonstrates to
the satisfaction of the Secretary that -

          (A) it has consulted with and received the support of
        residents of the neighborhood in which such program is to
        be located; and

          (B) it has the approval of each unit of general local
        government in which such program is to be located.

      (2) Program schedule. -  Each applicant for assistance under
this section shall submit to the Secretary an estimated schedule
for completion of its proposed enterprise zone homeownership
opportunity program, which schedule shall have been agreed to by
each unit of general local government in which such program is to
be located.

      (3) Location. -  All homes constructed or rehabilitated under
such program will be located in federally approved or equivalent
State-approved enterprise zones.

      (4) Sales contracts. -  Sales contracts entered into under
such program will contain provisions requiring repayment of any
loan made under this section upon the sale or other transfer of the
home involved, unless the Secretary approves a transfer of such
home without repayment (in which case the second mortgage held by
the Secretary on such home shall remain in force until such loan is
fully repaid).

  (g) Program Selection Criteria. -

      (1) In general. -  In selecting enterprise zone homeownership
opportunity programs for assistance under this section from among
eligible programs, the Secretary shall make such selection on the
basis of the extent to which -

          (A) non-Federal public or private entities will
        contribute land necessary to make each program feasible;

          (B) non-Federal public and private financial or other
        contributions (including tax abatements, waivers of fees
        related to development, waivers of construction,
        development, or zoning requirements, and direct financial
        contributions) will reduce the cost of home constructed or
        rehabilitated under each program;

          (C) each program will produce the greatest number of
        units for the least amount of assistance provided under
        this section, taking into consideration the cost
        differences among different market areas; and

          (D) each program provides for the involvement of local
        residents in the planning, and construction or
        rehabilitation, of homes.

      (2) Exception. -  To the extent that non-Federal public
entities are prohibited by the law of any State from making any
form of contribution described in subparagraph (A) or (B) of
paragraph (1), the Secretary shall not consider such form of
contribution in evaluating such program.

  (h) Regulations. -  Not later than 180 days after the date of
enactment of this section, the Secretary shall issue final
regulations to carry out the provisions of this title.  Any such
regulations shall be issued in accordance with section 553 of title
5, United States Code, notwithstanding the provisions of subsection
(a)(2) of such section.

  (i) Funding. -  There are authorized to be appropriated to carry
out this section $30,000,000 in each of fiscal years 1993 and 1994.

                    SUBTITLE F - IMPLEMENTATION

SEC. 191. IMPLEMENTATION.

  The Secretary of Housing and Urban Development shall issue any
final regulations necessary to implement the provisions of this
title and the amendments made by this title not later than the
expiration of the 180-day period beginning on the date of the
enactment of this Act, except as expressly provided otherwise in
this title and the amendments made by this title.  Such 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).

              TITLE II - HOME INVESTMENT PARTNERSHIPS

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

  Section 205 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12724) is amended to read as follows:

'SEC. 205. AUTHORIZATION.

  'There are authorized to be appropriated to carry out this title
$2,086,000,000 for fiscal year 1993, and $2,173,612,000 for fiscal
year 1994, of which -

      '(1) not more than $14,000,000 for fiscal year 1993, and
    $14,000,000 for fiscal year 1994, shall be for community
    housing partnership activities authorized under section 233;
    and

      '(2) not more than $11,000,000 for fiscal year 1993, and
    $11,000,000 for fiscal year 1994, shall be for activities in
    support of State and local housing strategies authorized under
    subtitle C.'.

SEC. 202. HOME PROGRAM THRESHOLDS.

  (a) Participating Jurisdictions. -  Section 216 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12746)
is amended -

      (1) in paragraph (3), by striking 'A jurisdiction' and
    inserting 'Except as provided in paragraph (10), a
    jurisdiction';

      (2) in paragraph (9)(B), by inserting ', except as provided
    in paragraph (10)' after 'in any 1 year'; and

      (3) by adding at the end the following:

      '(10) Threshold reduction. -  If the amount appropriated
pursuant to section 205 for any fiscal year is less than
$1,500,000,000, then this section shall be applied during that year
-

          '(A) by substituting '$500,000' for '$750,000' both
        places it appears in paragraph (3); and

          '(B) by substituting '$500,000', '$410,000', and
        '$335,000' for '$750,000', '$625,000', and '$500,000',
        respectively, where they appear in paragraph (9).'.

  (b) Supplemental Allocation. -  Section 217(b) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12747(b)) is amended -

      (1) in paragraph (3), by inserting ', except as provided in
    paragraph (4)' before the period at the end of the second
    sentence; and

      (2) by adding at the end the following:

      '(4) Threshold reduction. -  If the amount appropriated
pursuant to section 205 for any fiscal year is less than
$1,500,000,000, then this section shall be applied during that year
by substituting '$335,000' for '$500,000' where it appears in
paragraph (3).'.

  (c) Applicability. - Notwithstanding any other provision of law,
the grant thresholds provided for in section 216, as amended by
this section, and the grant thresholds provided for in section
217(b) of the Cranston-Gonzalez National Affordable Housing Act, as
amended by this section, shall apply.

SEC. 203. ELIMINATION OF RESTRICTIONS ON NEW CONSTRUCTION.

  (a) Eligible Uses of Investment. - Section 212(a) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(a)) is amended -

      (1) in the last sentence of paragraph (2), by striking 'under
    paragraph (3) of this subsection or';

      (2) by striking paragraph (3); and

      (3) by redesignating paragraph (4) as paragraph (3).

  (b) Formula Allocation. - Section 217(b)(1) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12747(b)(1)) is amended -

      (1) by striking subparagraph (A);

      (2) in subparagraph (D), by striking 'Except as provided in
    subparagraph (A), the basic formula established under
    subparagraph (B)' and inserting 'The basic formula established
    under subparagraph (A)';

      (3) in subparagraph (E), by striking 'formulas in
    subparagraph (B)' and inserting 'formula in subparagraph (A)';

      (4) in subparagraph (F) -

          (A) in the first sentence, by striking 'subparagraph (B)'
        and inserting 'subparagraph (A)'; and

          (B) by striking the second sentence;

      (5) in subparagraph (G), by striking 'formulas in
    subparagraphs (A) and (B)' and inserting 'formula in
    subparagraph (A)'; and

      (6) by redesignating subparagraphs (B) through (G) (as
    amended by this paragraph) as subparagraphs (A) through (F),
    respectively.

  (c) Conforming Amendment. - Section 218(g) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12748(g)) is amended by striking 'Except as provided in section
217(b)(1)(A)(ii), if' and inserting 'If'.

SEC. 204. POLICIES AND PREFERENCE RULES; USE OF TENANT-BASED RENTAL
ASSISTANCE AMOUNTS FOR SECURITY DEPOSITS.

  (a) Policies and Preference Rules. - Section 212(a)(3) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(a)(3)), as so redesignated by section 203(a)(3) of this Act,
is amended by adding at the end the following:

          '(E) Security deposit assistance. - A jurisdiction using
        funds provided under this subtitle for tenant-based rental
        assistance may use such funds to provide loans or grants to
        very low- and low-income families for security deposits for
        rental of dwelling units.  Assistance under this
        subparagraph does not preclude assistance under any other
        provision of this paragraph.'.

  (b) Security Deposits. - Section 212(a)(3)(A) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(a)(4)(A)), as so redesignated by section 203(a)(3) of this
Act, is amended by striking clause (ii) and inserting the
following:

              '(ii) the tenant-based rental assistance is provided
            in accordance with written tenant selection policies
            and criteria that are consistent with the purposes of
            providing housing to very low- and low-income families
            and are reasonably related to preference rules
            established under section 6(c)(4)(A) of the Housing Act
            of 1937.'.

SEC. 205. USE OF HOME FUNDS FOR HOMELESS ASSISTANCE.

  Section 212(a)(1) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12742(a)(1)) is amended by adding at the end
the following: 'For the purpose of this subtitle, the term
'affordable housing' includes permanent housing for disabled
homeless persons, transitional housing, and single room occupancy
housing.'.

SEC. 206. PER UNIT COST LIMITS.

  Section 212(d)(1) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12742(d)(1)) is amended by inserting after
the first sentence the following: 'For multifamily housing, such
limits shall not be less than the per unit dollar amount
limitations set forth in section 221(d)(3)(ii) of the National
Housing Act, as such limitations may be adjusted in accordance
therewith, except that for purposes of this subsection the
Secretary shall, by regulation, increase the per unit dollar amount
limitations in any geographical area by an amount, not to exceed
140 percent, that equals the amount by which the costs of
multifamily housing construction in the area exceed the national
average of such costs.'.

SEC. 207. ADMINISTRATIVE COSTS AS ELIGIBLE USE OF INVESTMENT.

  (a) Housing Uses. - Section 212(a)(1) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12742(a)(1)) is amended
by inserting after 'organizations,' the following: 'to provide for
the payment of reasonable administrative and planning costs, to
provide for the payment of operating expenses of community housing
development organizations,'.

  (b) Eligible Use. - Section 212 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742) is amended -

      (1) in subsection (c)(1), by inserting 'that exceed the
    amount specified under subsection (c)' before the comma at the
    end;

      (2) by redesignating subsections (c), (d) (as amended by the
    preceding provisions of this Act), and (e) as subsections (d),
    (e), and (f), respectively; and

      (3) by inserting after subsection (b) the following:

  '(c) Administrative Costs. - In each fiscal year, each
participating jurisdiction may use not more than 10 percent of the
funds made available under this subtitle to the jurisdiction for
such year for any administrative and planning costs of the
jurisdiction in carrying out this subtitle, including the costs of
the salaries of persons engaged in administering and managing
activities assisted with funds made available under this
subtitle.'.

  (c) Recognition of Match. - Section 220 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12750) is amended -

      (1) in subsection (b)(2), by striking 'shall' and all that
    follows and inserting 'may not be recognized for purposes of
    subsection (a).'; and

      (2) in subsection (c) -

          (A) by striking paragraph (2); and

          (B) by redesignating paragraphs (3), (4), and (5) as
        paragraphs (2), (3), and (4), respectively.

  (d) Limitation on Administrative Costs. - Section 212 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742)
is amended by adding at the end the following:

  '(g) Limitation on Operating Assistance. - A participating
jurisdiction may not use more than 5 percent of its allocation
under this subtitle for the payment of operating expenses for
community housing development organizations.'.

SEC. 208. AFFORDABLE HOUSING.

  (a) Rent Calculations. - Section 215(a) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12745(a)) is amended -

      (1) in paragraph (1)(A) by striking 'smaller and larger
    families' and inserting 'number of bedrooms in the unit';

      (2) in paragraph (3), by adding at the end the following:
    'The preceding sentence shall not apply with respect to funds
    made available under this Act for units that have been
    allocated a low-income housing tax credit by a housing credit
    agency pursuant to section 42 of the Internal Revenue Code
    1986.'; and

      (3) in the second sentence of paragraph (3), by striking 'not
    less than' and inserting 'the lesser of the amount payable by
    the tenant under State or local law or'.

  (b) Exception to Termination Rule. - Section 215(a)(1)(E) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745(a)(1)(E)) is amended by inserting after 'Act' the following:
', except upon a foreclosure by a lender (or upon other transfer in
lieu of foreclosure) if such action (i) recognizes any contractual
or legal rights of public agencies, nonprofit sponsors, or others
to take actions that would avoid termination of low-income
affordability in the case of foreclosure or transfer in lieu of
foreclosure, and (ii) is not for the purpose of avoiding low income
affordability restrictions, as determined by the Secretary'.

SEC. 209. HOMEOWNERSHIP RESALE RESTRICTIONS.

  Section 215(b) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745(b)) is amended by striking paragraph
(4) and inserting the following:

      '(4) is subject to resale restrictions that are established
    by the participating jurisdiction and determined by the
    Secretary to be appropriate to -

          '(A) allow for subsequent purchase of the property only
        by persons who meet the qualifications specified under
        paragraph (2), at a price which will -

              '(i) provide the owner with a fair return on
            investment, including any improvements, and

              '(ii) ensure that the housing will remain affordable
            to a reasonable range of low-income homebuyers; or

          '(B) recapture the investment provided under this title
        in order to assist other persons in accordance with the
        requirements of this subsection, except where there are no
        net proceeds or where the net proceeds are insufficient to
        repay the full amount of the assistance; and'.

SEC. 210. MATCHING REQUIREMENTS.

  (a) Tiered Contribution. - Section 220(a) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12750(a)) is amended -

      (1) in paragraph (1) -

          (A) by striking 'and' and inserting a comma;

          (B) by inserting 'and substantial rehabilitation' after
        'rehabilitation'; and

          (C) by inserting 'and' after the semicolon;

      (2) in paragraph (2) -

          (A) by striking '33' and inserting '30'; and

          (B) by striking 'substantial rehabilitation; and' and
        inserting 'new construction.';

      (3) by striking paragraph (3); and

      (4) in the matter preceding paragraph (1), by striking
    'affordable housing assisted under this title' and inserting
    'housing that qualifies as affordable housing under this
    title'.

  (b) Form. - Section 220(c) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12750(c)) is amended -

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

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

      (3) by adding at the end the following:

      '(6) up to -

          '(A) 50 percent of proceeds from bond financing validly
        issued by a State or local government, agency or
        instrumentality thereof, or political subdivision thereof,
        and repayable with revenues derived from a multifamily
        affordable housing project financed, and

          '(B) 25 percent of proceeds from bond financing validly
        issued by a State or local government, agency or
        instrumentality thereof, or political subdivision thereof,
        and repayable with revenues derived from a single-family
        project financed,

    but not more than 25 percent of the contribution required under
    subsection (a) may be derived from these sources;

      '(7) the reasonable value of any site-preparation and
    construction materials and any donated or voluntary labor in
    connection with the site-preparation for, or construction or
    rehabilitation of, affordable housing; and

      '(8) such other contributions to affordable housing as the
    Secretary considers appropriate.'.

  (c) Reduction of Requirement. - Section 220 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12750)
is amended by striking subsection (d) and inserting:

  '(d) Reduction of Requirement. -

      '(1) In general. -  The Secretary shall reduce the matching
requirement under subsection (a) with respect to any funds drawn
from a jurisdiction's HOME Investment Trust Fund Account during a
fiscal year by -

          '(A) 50 percent for a jurisdiction that certifies that it
        is in fiscal distress; and

          '(B) 100 percent for a jurisdiction that certifies that
        it is in severe fiscal distress.

      '(2) Definitions. -  For purposes of this section -

          '(A) 'fiscal distress' means a jurisdiction other than a
        State that satisfies 1 of the distress criteria set forth
        in paragraph (3); and

          '(B) 'severe fiscal distress' means a jurisdiction other
        than a State that satisfies both of the distress criteria
        set forth in paragraph (3).

      '(3) Distress criteria. -  For purposes of a jurisdiction
other than a State certifying that it is distressed, the following
criteria shall apply:

          '(A) Poverty rate. -  The average poverty rate in the
jurisdiction for the calendar year immediately preceding the year
in which its fiscal year begins was equal to or greater than 125
percent of the average national poverty rate during such calendar
year (as determined according to information of the Bureau of the
Census).

          '(B) Per capita income. -  The average per capita income
in the jurisdiction for the calendar year immediately preceding the
year in which its fiscal year begins was less than 75 percent of
the average national per capita income during such calendar year
(as determined according to information of the Bureau of the
Census).

      '(4) States. -  In determining the degree to which a
jurisdiction that is a State is distressed, the Secretary shall
take into consideration the State's fiscal capacity and expenditure
needs as determined by a national organization which compiles the
relevant data.

      '(5) Waiver in disaster areas. - If a participating
    jurisdiction is located in an area in which a declaration of a
    disaster pursuant to the Robert T. Stafford Disaster Relief and
    Emergency Assistance Act is in effect for any part of a fiscal
    year, the Secretary may reduce the matching requirement for
    that fiscal year under subsection (a) with respect to any funds
    drawn from a jurisdiction's HOME Investment Trust Fund Account
    during that fiscal year by up to 100 percent.'.

  (d) Applicability. - The amendments made by this section shall
apply with respect to fiscal year 1993 and each fiscal year
thereafter.

SEC. 211. ASSISTANCE FOR INSULAR AREAS.

  (a) Repeal of Amendments Made by Public Law 102-230. -

      (1) Definitions. - Section 104 of the Cranston-Gonzalez
    National Affordable Housing Act (42 U.S.C. 12704) is amended to
    read as if the amendments made by section 2 of Public Law
    102-230 (105 Stat. 1720) had not been enacted.

      (2) Allocation of resources. - Section 217(a) of the
    Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
    12747(a)) is amended -

          (A) by striking the first sentence of paragraph (1) and
        inserting the following: 'After reserving amounts under
        paragraph (2) for Indian tribes and after reserving amounts
        under paragraph (3) for the insular areas, the Secretary
        shall allocate funds approved in an appropriation Act to
        carry out this title by formula as provided in subsection
        (b).';

          (B) by striking paragraph (3) (as added by Public Law
        102-229; 105 Stat. 1709);

          (C) by striking paragraph (3) (as added by Public Law
        102-230; 105 Stat. 1720); and

          (D) by adding after paragraph (2) the following:

      '(3) Insular areas. - For each fiscal year, of any amounts
    approved in appropriation Acts to carry out this title, the
    Secretary shall reserve for grants to the insular areas the
    greater of (A) $750,000, or (B) 0.2 percent of the amounts
    appropriated under such Acts. The Secretary shall provide for
    the distribution of amounts reserved under this paragraph among
    the insular areas pursuant to specific criteria for such
    distribution, which shall be contained in a regulation issued
    by the Secretary.'.

      (3) Expedited issuance of regulation. - The regulation
    referred to in the amendment made by paragraph (2)(D) shall
    take effect not later than the expiration of the 90-day period
    beginning on the date of the enactment of this Act. The
    regulation shall not be subject to the requirements of
    subsections (b) and (c) of section 553 of title 5, United
    States Code, or section 7(o) of the Department of Housing and
    Urban Development Act.

  (b) Effective Date  . - The amendments made by subsection (a)
shall apply with respect to fiscal year 1993 and thereafter.

SEC. 212. COMMUNITY HOUSING PRODUCTION SET-ASIDE.

  (a) Extension of Period. - Section 231 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12771) is amended by
striking '18 months' each place it appears in subsections (a) and
(b) and inserting '24 months'.

  (b) Allocation for Use by Nonprofit Organization. - Section
231(a) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12771(a)) is amended by inserting after the second sentence
the following: 'If during the first 24 months of its participation
under this title, a participating jurisdiction is unable to
identify a sufficient number of capable community housing
development organizations, then up to 20 percent of the funds
allocated to that jurisdiction under this section, but not to
exceed $150,000, may be made available to carry out activities that
develop the capacity of community housing development organizations
in that jurisdiction.'.

  (c) Other Requirements. -  Section 234(b) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12774(b)) is
amended -

      (1) by striking ', together with other Federal assistance,';
    and

      (2) by inserting before the period the following: 'or $50,000
    annually, whichever is greater'.

SEC. 213. HOUSING EDUCATION AND ORGANIZATIONAL SUPPORT FOR
COMMUNITY LAND TRUSTS.

  (a) Community Land Trusts  . - Section 233 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12773)
is amended -

      (1) in subsection (a)(2), by inserting ', including community
    land trusts,' after 'organizations';

      (2) in subsection (b), by adding at the end the following:

      '(6) Community land trusts. - Organizational support,
    technical assistance, education, training, and continuing
    support under this subsection may be made available to
    community land trusts (as such term is defined in subsection
    (f)) and to community groups for the establishment of community
    land trusts.'; and

      (3) by adding at the end the following:

  '(f) Definition of Community Land Trust. - For purposes of this
section, the term 'community land trust' means a community housing
development organization (except that the requirements under
subparagraphs (C) and (D) of section 104(6) shall not apply for
purposes of this subsection) -

      '(1) that is not sponsored by a for-profit organization;

      '(2) that is established to carry out the activities under
    paragraph (3);

      '(3) that -

          '(A) acquires parcels of land, held in perpetuity,
        primarily for conveyance under long-term ground leases;

          '(B) transfers ownership of any structural improvements
        located on such leased parcels to the lessees; and

          '(C) retains a preemptive option to purchase any such
        structural improvement at a price determined by formula
        that is designed to ensure that the improvement remains
        affordable to low- and moderate-income families in
        perpetuity;

      '(4) whose corporate membership that is open to any adult
    resident of a particular geographic area specified in the
    bylaws of the organization; and

      '(5) whose board of directors -

          '(A) includes a majority of members who are elected by
        the corporate membership; and

          '(B) is composed of equal numbers of (i) lessees pursuant
        to paragraph (3)(B), (ii) corporate members who are not
        lessees, and (iii) any other category of persons described
        in the bylaws of the organization.'.

  (b) Women in Homebuilding. - Section 233 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12773), as amended by
subsection (a) of this section, is further amended -

      (1) in subsection (a) -

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

          (B) in paragraph (2), by striking the period at the end
        and inserting '; and'; and

          (C) by adding at the end the following:

      '(3) to achieve the purposes under paragraphs (1) and (2) by
    helping women who reside in low- and moderate-income
    neighborhoods rehabilitate and construct housing in the
    neighborhoods.'.

      (2) in subsection (b), by adding after paragraph (6) (as
    added by subsection (a)(2) of this section) the following:

      '(7) Facilitating women in homebuilding professions. -
    Technical assistance may be made available to businesses,
    unions, and organizations involved in construction and
    rehabilitation of housing in low- and moderate-income areas to
    assist women residing in the area to obtain jobs involving such
    activities, which may include facilitating access by such women
    to, and providing, apprenticeship and other training programs
    regarding nontraditional skills, recruiting women to
    participate in such programs, providing continuing support for
    women at job sites, counseling and educating businesses
    regarding suitable work environments for women, providing
    information to such women regarding opportunities for
    establishing small housing construction and rehabilitation
    businesses, and providing materials and tools for training such
    women (in an amount not exceeding 10 percent of any assistance
    provided under this paragraph).  The Secretary shall give
    priority under this paragraph to providing technical assistance
    for organizations rehabilitating single family or multifamily
    housing owned or controlled by the Secretary pursuant to title
    II of the National Housing Act and which have women members in
    occupations in which women constitute 25 percent or less of the
    total number of workers in the occupation (in this section
    referred to as 'nontraditional occupations').';

      (3) in subsection (c)(1) -

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

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

          (C) by adding at the end the following:

          '(E) in the case of activities under subsection (b)(7),
        is a community-based organization (as such term is defined
        in section 4 of the Job Training Partnership Act) or public
        housing agency, which has demonstrated experience in
        preparing women for apprenticeship training in construction
        or administering programs for training women for
        construction or other nontraditional occupations (and such
        organizations may use assistance for activities under such
        subsection to employ women in housing construction and
        rehabilitation activities to the extent that the
        organization has the capacity to conduct such activities);
        or'; and

      (4) by adding at the end of subsection (e) the following:
    'The Secretary shall provide assistance under this section, to
    the extent applications are submitted and approved, to
    contractors in each of the geographic regions having a regional
    office of the Department of Housing and Urban Development.'.

SEC. 214. LAND BANK REDEVELOPMENT.

  (a) Priorities for Capacity Development. - Section 242 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12782)
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 '; and'; and

      (3) by adding at the end the following:

      '(6) facilitate the establishment and efficient operation of
    land bank programs, under which title to vacant and abandoned
    parcels of real estate located in or causing blighted
    neighborhoods is cleared for use consistent with the purposes
    of this title.'.

SEC. 215. RESEARCH IN PROVIDING AFFORDABLE HOUSING THROUGH
INNOVATIVE BUILDING TECHNIQUES AND TECHNOLOGY.

  The second sentence of section 244 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12784) is amended by
inserting before the period at the end the following: ', through
the use of cost-saving innovative building technology and
construction techniques'.

SEC. 216. USE OF INNOVATIVE BUILDING TECHNOLOGIES TO PROVIDE
COST-SAVING HOUSING OPPORTUNITIES.

  Subtitle D of title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12801 et seq.) is amended by
adding at the end the following:

'SEC. 260. COST-SAVING BUILDING TECHNOLOGIES AND CONSTRUCTION
            TECHNIQUES.

  '(a) In General  . - The Secretary shall make available a model
program to utilize cost-saving building technologies and
construction techniques for purposes of providing homeownership and
rental opportunities under this title.

  '(b) Selection Criteria  . - The Secretary shall establish
criteria for participating jurisdictions to select projects for
assistance under the model program which may include -

      '(1) the extent to which innovative, cost-saving building and
    construction technologies are utilized;

      '(2) the extent to which innovative, cost-saving construction
    techniques are utilized;

      '(3) the extent to which units will be made available to
    low-income families and individuals;

      '(4) the extent to which non-Federal public or private
    assistance is utilized; and

      '(5) any other factor, determined by the Secretary to be
    appropriate.

  '(c) Guidelines  . - The Secretary shall publish guidelines for
the model program under this section not later than 180 days after
the date of the enactment of the Housing and Community Development
Act of 1992.

  '(d) Report  . - The Secretary shall submit a biennial report to
the Congress on the utilization of the model program under this
section.'.

SEC. 217. DEFINITION OF COMMUNITY HOUSING DEVELOPMENT ORGANIZATION.

  (a) In General. -  Section 104(6) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704(6)) is amended by
adding at the end the following new flush material:

    'In the case of an organization serving more than one county,
    the Secretary may not require that such organization, to be
    considered a community housing development organization for
    purposes of this Act, include as members on the organization's
    governing board low-income persons residing in each county
    served.'.

  (b) Transition Rule. - For the purposes of determining compliance
with the requirements of section 104(6) of the Cranston-Gonzalez
National Affordable Housing Act, the Secretary of Housing and Urban
Development may provide an exception for organizations that meet
the definition of community housing development organization,
except for significant representation of low-income community
residents on the board, if such organization fulfills such
requirement within 6 months of receiving funds under title II of
such Act or September 30, 1993, whichever is sooner.

SEC. 218. INCLUSION OF ECHO HOUSING IN DEFINITION OF HOUSING.

  Section 104(8) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12704(8)) is amended by inserting before the
period at the end the following: 'and elder cottage housing
opportunity units that are small, free-standing, barrier-free,
energy-efficient, removable, and designed to be installed adjacent
to existing 1- to 4-family dwellings'.

SEC. 219. ELIGIBILITY OF MANUFACTURED HOME OWNERS AS FIRST-TIME
HOMEBUYERS.

  Section 104(14) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12704(14)) is amended -

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

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

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

          '(C) an individual shall not be excluded from
        consideration as a first-time homebuyer under this
        paragraph on the basis that the individual owns or owned,
        as a principal residence during such 3-year period, a
        dwelling unit whose structure is -

              '(i) not permanently affixed to a permanent
            foundation in accordance with local or other applicable
            regulations, or

              '(ii) not in compliance with State, local, or model
            building codes, or other applicable codes, and cannot
            be brought into compliance with such codes for less
            than the cost of constructing a permanent structure.'.

SEC. 220. ELIGIBILITY FOR ASSISTANCE AND CONTENTS OF STRATEGIES.

  (a) Homelessness Information. - Section 105(b)(2) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12705(b)(2)) is amended -

      (1) by inserting ', including rural homelessness,' after
    'homelessness' the first place it appears; and

      (2) by inserting 'including tabular representation of such
    information,' after 'with homelessness,'.

  (b) Antidisplacement Plan and Antipoverty Strategy. - Section
105(b) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12705(b)) is amended -

      (1) by striking paragraph (14) and inserting the following:

      '(14) include a certification that the jurisdiction has in
    effect and is following a residential antidisplacement and
    relocation assistance plan that, in any case of any such
    displacement in connection with any activity assisted with
    amounts provided under title II, requires the same actions and
    provides the same rights as required and provided under a
    residential antidisplacement and relocation assistance plan
    under section 104(d) of the Housing and Community Development
    Act of 1974 in the event of displacement in connection with a
    development project assisted under section 106 or 119 of such
    Act;'.

      (2) in paragraph (15), by striking the period at the end and
    inserting '; and' and

      (3) by adding at the end the following:

      '(16) for any housing strategy submitted for fiscal year 1994
    or any fiscal year thereafter and taking into consideration
    factors over which the jurisdiction has control, describe the
    jurisdiction's goals, programs, and policies for reducing the
    number of households with incomes below the poverty line (as
    defined by the Office of Management and Budget and revised
    annually), and, in consultation with other appropriate public
    and private agencies, state how the jurisdiction's goals,
    programs, and policies for producing and preserving affordable
    housing set forth in the housing strategy will be coordinated
    with other programs and services for which the jurisdiction is
    responsible and the extent to which they will reduce (or assist
    in reducing) the number of households with incomes below the
    poverty line; and'.

  (c) Linkage Between Housing Need and Allocation of Housing
Resources. - Section 105(b) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12705(b)) is amended -

      (1) by redesignating paragraphs (8) through (16) as
    paragraphs (9) through (17), respectively; and

      (2) by inserting after paragraph (7) the following:

      '(8) describe how the jurisdiction's plan will address the
    housing needs identified pursuant to subparagraphs (1) and (2),
    describe the reasons for allocation priorities, and identify
    any obstacles to addressing underserved needs;'.

SEC. 221. LOCATION OF ACTIVITIES.

  Section 218(a) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12748a) is amended by inserting after
'boundaries' the following: 'or within the boundaries of contiguous
jurisdictions in joint projects which serve residents from both
jurisdictions'.

SEC. 222. REGULATIONS.

  The Secretary of Housing and Urban Development shall issue any
final regulations necessary to implement the provisions of this
title and the amendments made by this title not later than the
expiration of the 180-day period beginning on the date of the
enactment of this Act, except as expressly provided otherwise in
this title and the amendments made by this title.  Such 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).

SEC. 223. RETROACTIVE APPLICATION OF HOME AMENDMENTS.

  The amendments made by this title shall apply to unexpended funds
allocated under title II of the Cranston-Gonzalez National
Affordable Housing Act in fiscal year 1992, except as otherwise
specifically provided.