Community Enterprise Revitalization Amendments Act

Summary: Community Enterprise Revitalization Amendments Act - Amends the Housing and Community Development Act of 1974 to authorize the Secretary of Housing and Urban Development to make economic development grants to enhance the security of housing loan guarantees under section 108 of such Act. 
Authorizes such grants' funding with recaptured urban development action grant (UDAG) amounts. 
Authorizes a UDAG amnesty program. 
Authorizes the Secretary to guarantee section 108-backed obligations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Enterprise Revitalization 
Amendments Act''.

SEC. 2. SECTION 108 ELIGIBLE ACTIVITIES.

    (a) In General.--Section 108(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5308(a)) is amended--
            (1) in the first sentence--
                    (A) by striking ``or'' after ``section 105(a);''; 
                and
                    (B) by inserting before the period the following: 
                ``; (5) the acquisition, construction, reconstruction, 
                or installation of public facilities (except for 
                buildings for the general conduct of government); or 
                (6) in the case of colonias, public works and site or 
                other improvements''; and
            (2) by striking the second sentence and inserting the 
        following: ``A guarantee under this section (including a 
        guarantee combined with a grant under subsection (q)) may be 
        used to assist a grantee in obtaining financing only if the 
        grantee has made efforts to obtain the financing without the 
        use of the guarantee (and, if applicable, the grant) and cannot 
        complete the financing consistent with the timely execution of 
        the proposed activities and projects without the guarantee (or, 
        if applicable, the grant).''.
    (b) Definition.--Section 102(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5302(a)) is amended by adding at the 
end the following new paragraph:
            ``(24) The term `colonia' means any identifiable community 
        that--
                    ``(A) is in the State of Arizona, California, New 
                Mexico, or Texas;
                    ``(B) is in the United States-Mexico border region;
                    ``(C) is determined to be a colonia on the basis of 
                objective criteria, including lack of potable water 
                supply, lack of adequate sewage systems, and lack of 
                decent, safe, and sanitary housing; and
                    ``(D) was in existence as a colonia before the date 
                of the enactment of the Cranston-Gonzalez National 
                Affordable Housing Act.''.

SEC. 3. ECONOMIC DEVELOPMENT GRANTS.

    (a) In General.--Section 108 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5308) is amended by adding at the 
end the following new subsection:
    ``(q) Economic Development Grants.--
            ``(1) Authorization.--The Secretary may make grants in 
        connection with notes or other obligations guaranteed under 
        this section to eligible public entities for the purpose of 
        enhancing the security of loans guaranteed under this section 
        or improving the viability of projects financed with loans 
        guaranteed under this section.
            ``(2) Eligible activities.--Assistance under this 
        subsection may be used for the purposes of and in conjunction 
        with projects and activities assisted under subsection (a).
            ``(3) Applications.--Applications for assistance under this 
        subsection shall be submitted by eligible public entities in 
        the form and in accordance with the procedures established by 
        the Secretary. Eligible public entities may apply for grants 
        only in conjunction with a request for guarantee under 
        subsection (a).
            ``(4) Selection criteria.--The Secretary shall establish 
        criteria for awarding assistance under this subsection. Such 
        criteria shall include--
                    ``(A) the extent of need for such assistance;
                    ``(B) the level of distress in the community to be 
                served and in the jurisdiction applying for assistance;
                    ``(C) the quality of the plan proposed and the 
                capacity or potential capacity of the applicant to 
                successfully carry out the plan; and
                    ``(D) such other factors as the Secretary 
                determines to be appropriate.''.
    (b) Conforming Amendment.--Title I of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5301 et seq.) is amended--
            (1) in section 101(c) in the second sentence, by inserting 
        ``or a grant'' after ``guarantee''; and
            (2) in section 104(b)(3), by inserting ``or a grant'' after 
        ``guarantee''.

SEC. 4. USE OF UDAG RECAPTURES.

    Section 119(o) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5318(o)) is amended by inserting before the period the 
following: ``, except that amounts available to the Secretary for use 
under this subsection as of October 1, 1993, and amounts released to 
the Secretary pursuant to subsection (t) may, to the extent or in such 
amounts as are or have been provided in appropriation Acts, be used to 
provide grants under section 108(q).''.

SEC. 5. UDAG AMNESTY PROGRAM.

    (a) Amendment.--Section 119 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5318) is amended by adding at the 
end the following new subsection:
    ``(t) UDAG Amnesty Program.--If a grant or a portion of a grant 
under this section remains unexpended as of the issuance of a notice 
implementing this subsection, the grantee may enter into an agreement, 
as provided under this subsection, with the Secretary to receive a 
percentage of the grant amount and relinquish all claims to the balance 
of the grant within 90 days of the issuance of notice implementing this 
subsection (or such later date as the Secretary may approve). The 
Secretary shall not recapture any funds obligated pursuant to this 
section during a period beginning on the date of enactment of the 
Housing and Community Development Act of 1993 until 90 days after the 
issuance of a notice implementing this subsection. A grantee may 
receive as a grant under this subsection--
            ``(1) 33 percent of such unexpended amounts if--
                    ``(A) the grantee agrees to expend not less than 
                one-half of the amount received for activities 
                authorized pursuant to section 108(q) and to expend 
                such funds in conjunction with a loan guarantee made 
                under section 108 at least equal to twice the amount of 
                the funds received; and
                    ``(B)(i) the remainder of the amount received is 
                used for economic development activities eligible under 
                title I of this Act; and
                    ``(ii) except when waived by the Secretary in the 
                case of a severely distressed jurisdiction, not more 
                than one-half of the costs of activities under 
                subparagraph (B) are derived from such unexpended 
                amounts; or
            ``(2) 25 percent of such unexpended amounts if--
                    ``(A) the grantee agrees to expend such funds for 
                economic development activities eligible under title I 
                of this Act; and
                    ``(B) except when waived by the Secretary in the 
                case of a severely distressed jurisdiction, not more 
                than one-half of the costs of such activities are 
                derived from such unexpended amount.''.
    (b) Implementation.--Notwithstanding section 7, not later than 10 
days after the date of enactment of this Act, the Secretary shall, by 
notice published in the Federal Register, which shall take effect upon 
publication, establish such requirements as may be necessary to 
implement the amendments made by this section.

SEC. 6. GUARANTEE OF OBLIGATIONS BACKED BY SECTION 108 LOANS.

    Section 108 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5308), as amended by section 3, is amended by adding at the 
end the following new subsection:
    ``(r) Guarantee of Obligations Backed by Section 108 Loans.--
            ``(1) Authorization.--The Secretary may, upon such terms 
        and conditions as the Secretary deems appropriate, guarantee 
        the timely payment of the principal of and interest on trust 
        certificates or other obligations that--
                    ``(A) are offered by the Secretary, or by any other 
                offeror approved for purposes of this subsection by the 
                Secretary; and
                    ``(B) are based on and backed by a trust or pool 
                composed of notes or other obligations guaranteed by 
                the Secretary under this section.
            ``(2) Full faith and credit of the united states.--
        Subsection (f) shall apply to any guarantee under this 
        subsection.
            ``(3) Subrogation.--If the Secretary pays a claim under a 
        guarantee issued under this section, the Secretary shall be 
        subrogated fully to the rights satisfied by such payment.
            ``(4) Powers of the secretary.--No Federal, State, or local 
        law shall preclude or limit the exercise by the Secretary of--
                    ``(A) the power to contract with respect to public 
                offerings and other sales of notes, trust certificates, 
                and other obligations guaranteed under this section 
                upon such terms and conditions as the Secretary deems 
                appropriate;
                    ``(B) the right to enforce by any means deemed 
                appropriate by the Secretary any such contract; and
                    ``(C) the Secretary's ownership rights, as 
                applicable, in notes, certificates, or other 
                obligations guaranteed under this section, or 
                constituting the trust or pool against which trust 
                certificates or other obligations guaranteed under this 
                section are offered.''.

SEC. 7. EFFECTIVE DATE.

    The Secretary shall, by notice published in the Federal Register, 
which shall take effect upon publication, establish such requirements 
as may be necessary to implement the amendments made by this Act. The 
notice shall invite public comments and, not later than 12 months after 
the date on which the notice is published, the Secretary shall issue 
final regulations based on the initial notice, taking into account any 
public comments received.