A bill to support certain housing proposals in the fiscal year 2003 budget for the Federal Government, including the downpayment assistance initiative under the HOME Investment Partnerships Act, and for other purposes.

Summary: American Dream Downpayment Act - Amends the Cranston-Gonzalez National Affordable Housing Act to direct the Secretary of Housing and Urban Development to make grants to participating jurisdictions for downpayment assistance to low-income, first-time home buyers.Amends the Housing Opportunity Program Extension Act of 1996 to authorize appropriations for the self-help housing homeownership program.Amends the United States Housing Act of 1937 to extend, and authorize appropriations for, the HOPE VI program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Dream Downpayment Act''.

SEC. 2. DOWNPAYMENT ASSISTANCE INITIATIVE UNDER HOME PROGRAM.

    (a) Downpayment Assistance Initiative.--Subtitle E of title II of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12821) 
is amended to read as follows:

                     ``Subtitle E--Other Assistance

``SEC. 271. DOWNPAYMENT ASSISTANCE INITIATIVE.

    ``(a) Grant Authority.--The Secretary may make grants to 
participating jurisdictions to assist low-income families to achieve 
homeownership, in accordance with this section.
    ``(b) Eligible Activities.--
            ``(1) In general.--Grants made under this section may be 
        used only for downpayment assistance toward the purchase of 
        single family housing by low-income families who are first-time 
        homebuyers.
            ``(2) Definition.--For purposes of this subtitle, the term 
        `downpayment assistance' means assistance to help a family 
        acquire a principal residence.
    ``(c) Housing Strategy.--To be eligible to receive a grant under 
this section for a fiscal year, a participating jurisdiction shall 
include in its comprehensive housing affordability strategy submitted 
under section 105 for such year, a description of the use of the grant 
amounts.
    ``(d) Formula Allocation.--
            ``(1) In general.--For each fiscal year, the Secretary 
        shall allocate any amounts made available for assistance under 
        this section for the fiscal year in accordance with a formula, 
        established by the Secretary, that considers a participating 
        jurisdiction's need for and prior commitment to assistance to 
        homebuyers.
            ``(2) Allocation amounts.--The formula referred to in 
        paragraph (1) may include minimum and maximum allocation 
        amounts.
    ``(e) Reallocation.--
            ``(1) In general.--Except as provided in paragraph (2), if 
        any amounts allocated to a participating jurisdiction under 
        this section become available for reallocation, the amounts 
        shall be reallocated to other participating jurisdictions in 
        accordance with the formula established pursuant to subsection 
        (d).
            ``(2) Exception.--If a local participating jurisdiction 
        failed to receive amounts allocated under this section and is 
        located in a State that is a participating jurisdiction, the 
        funds shall be reallocated to the State.
    ``(f) Applicability of Other Provisions.--
            ``(1) In general.--Except as otherwise provided in this 
        section, grants made under this section shall not be subject to 
        the provisions of this title.
            ``(2) Applicable provisions.--In addition to the 
        requirements of this section, grants made under this section 
        shall be subject to the provisions of title I, sections 215(b), 
        218, 219, 221, 223, 224, and 226(a) of subtitle A of this 
        title, and subtitle F of this title.
            ``(3) References.--In applying the requirements of subtitle 
        A referred to in paragraph (2)--
                    ``(A) any references to funds under subtitle A 
                shall be considered to refer to amounts made available 
                for assistance under this section; and
                    ``(B) any references to funds allocated or 
                reallocated under section 217 or 217(d) shall be 
                considered to refer to amounts allocated or reallocated 
                under subsection (d) or (e) of this section, 
                respectively.
    ``(g) Administrative Costs.--Notwithstanding section 212(c), a 
participating jurisdiction may use funds under subtitle A for 
administrative and planning costs of the jurisdiction in carrying out 
this section, and the limitation in section 212(c) shall be based on 
the total amount of funds available under subtitle A and this section.
    ``(h) Funding.--
            ``(1) Fiscal year 2002.--This section constitutes the 
        subsequent legislation authorizing the Downpayment Assistance 
        Initiative referred to in the item relating to the `HOME 
        Investment Partnerships Program' in title II of the Departments 
        of Veterans Affairs and Housing and Urban Development, and 
        Independent Agencies Appropriations Act, 2002 (Public Law 107-
        73; 115 Stat. 666).
            ``(2) Subsequent fiscal years.--There is authorized to be 
        appropriated to carry out this section $200,000,000 for each of 
        fiscal years 2003 through 2006.''.
    (b) Relocation Assistance and Downpayment Assistance.--Subtitle F 
of title II of the Cranston-Gonzalez National Affordable Housing Act is 
amended by inserting after section 290 (42 U.S.C. 12840) the following:

``SEC. 291. RELOCATION ASSISTANCE AND DOWNPAYMENT ASSISTANCE.

    ``The Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 shall not apply to downpayment assistance under 
this title.''.

SEC. 3. REAUTHORIZATION OF SHOP PROGRAM.

    Section 11(p) of the Housing Opportunity Program Extension Act of 
1996 (42 U.S.C. 12805 note) is amended by striking ``such sums as may 
be necessary for fiscal year 2001'' and inserting ``$65,000,000 for 
fiscal year 2003 and such sums as may be necessary for fiscal year 
2004''.

SEC. 4. REAUTHORIZATION OF HOPE VI PROGRAM.

    (a) Authorization of Appropriations.--Section 24(m)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 1437v(m)(1)) is amended by 
striking ``$600,000,000'' and all that follows through ``2002'' and 
inserting the following: ``$574,000,000 for fiscal year 2003''.
    (b) Sunset.--Section 24(n) of the United States Housing Act of 1937 
(42 U.S.C. 1437v(n)) is amended by striking ``September 30, 2002'' and 
inserting ``September 30, 2003''.