SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Use of Assisted Housing by Aliens 
Act of 1995''.

SEC. 2. ACTIONS IN CASES OF TERMINATION OF FINANCIAL ASSISTANCE.

    (a) In General.--Section 214(c)(1) of the Housing and Community 
Development Act of 1980 (42 U.S.C. 1436a(c)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``may, in its discretion,'' and inserting ``shall'';
            (2) in subparagraph (A), by inserting after the period at 
        the end the following new sentence: ``Financial assistance 
        continued under this subparagraph for a family may be provided 
        only on a prorated basis under which the amount of financial 
        assistance is based on the percentage of the total number of 
        members of the family that are eligible for such assistance 
        under the program for financial assistance and this section.''; 
        and
            (3) in subparagraph (B), by striking ``6-month period'' and 
        all that follows through ``affordable housing'' and inserting 
        ``single 3-month period''.
    (b) Scope of Application.--The amendment made by subsection (a)(3) 
shall apply to any deferral granted under section 214(c)(1)(B) of the 
Housing and Community Development Act of 1980 on or after the date of 
the enactment of this Act, including any renewal of any deferral 
initially granted before such date of enactment, except that a public 
housing agency or other entity referred to in such section 214(c)(1)(B) 
may not renew, after such date of enactment, any deferral which was 
granted under such section before such date and has been effective for 
at least 3 months on and after such date.

SEC. 3. VERIFICATION OF IMMIGRATION STATUS AND ELIGIBILITY FOR 
              FINANCIAL ASSISTANCE.

    Section 214(d) of the Housing and Community Development Act of 1980 
is amended--
            (1) in the matter preceding paragraph (1), by inserting 
        ``or to be'' after ``being'';
            (2) in paragraph (1)(A), by inserting at the end the 
        following new sentences: ``If the declaration states that the 
        individual is not a citizen or national of the United States, 
        the declaration shall be verified by the Immigration and 
        Naturalization Service. If the declaration states that the 
        individual is a citizen or national of the United States, the 
        Secretary may request verification of the declaration by 
        requiring presentation of documentation the Secretary considers 
        appropriate, including a social security card, certificate of 
        birth, driver's license, or other documentation.'';
            (3) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``on the date of the enactment of the Housing 
                and Community Development Act of 1987'' and inserting 
                ``or applying for financial assistance''; and
                    (B) by inserting at the end the following new 
                sentence:
        ``In the case of an individual applying for financial 
        assistance, the Secretary may not provide such assistance for 
        the benefit of the individual before such documentation is 
        presented and verified under paragraph (3) or (4).'';
            (4) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``on the date of the enactment of the Housing 
                and Community Development Act of 1987'' and inserting 
                ``or applying for financial assistance'';
                    (B) in subparagraph (A)--
                            (i) in clause (i)--
                                    (I) by inserting ``, not to exceed 
                                30 days,'' after ``reasonable 
                                opportunity''; and
                                    (II) by striking ``and'' at the 
                                end; and
                            (ii) by striking clause (ii) and inserting 
                        the following new clauses:
                            ``(ii) in the case of any individual who is 
                        already receiving assistance, may not delay, 
                        deny, reduce, or terminate the individual's 
                        eligibility for financial assistance on the 
                        basis of the individual's immigration status 
                        until such 30-day period has expired, and
                            ``(iii) in the case of any individual who 
                        is applying for financial assistance, may not 
                        deny the application for such assistance on the 
                        basis of the individual's immigration status 
                        until such 30-day period has expired; and'';
                    (C) in subparagraph (B), by striking clause (ii) 
                and inserting the following new clause:
                            ``(ii) pending such verification or appeal, 
                        the Secretary may not--
                                    ``(I) in the case of any individual 
                                who is already receiving assistance, 
                                delay, deny, reduce, or terminate the 
                                individual's eligibility for financial 
                                assistance on the basis of the 
                                individual's immigration status, and
                                    ``(II) in the case of any 
                                individual who is applying for 
                                financial assistance, deny the 
                                application for such assistance on the 
                                basis of the individual's immigration 
                                status, and'';
            (5) in paragraph (5), by striking all that follows 
        ``satisfactory immigration status'' and inserting the 
        following: ``, the Secretary shall--
                    ``(A) deny the individual's application for 
                financial assistance or terminate the individual's 
                eligibility for financial assistance, as the case may 
                be; and
                    ``(B) provide the individual with written notice of 
                the determination under this paragraph.''; and
            (6) by striking paragraph (6) and inserting the following 
        new paragraph:
            ``(6) The Secretary shall terminate the eligibility for 
        financial assistance of an individual, for a period of not less 
        than 24 months, upon determining that such individual has 
        knowingly permitted another individual who is not eligible for 
        such assistance to use the assistance (including residence in 
        the unit assisted).''.

SEC. 4. PROHIBITION OF SANCTIONS AGAINST ENTITIES MAKING FINANCIAL 
              ASSISTANCE ELIGIBILITY DETERMINATIONS.

    Section 214(e)(4) of the Housing and Community Development Act of 
1980 is amended--
            (1) in paragraph (2), by inserting ``or'' at the end;
            (2) in paragraph (3), by striking ``, or'' at the end and 
        inserting a period; and
            (3) by striking paragraph (4).

SEC. 5. SUSPENSION OF IMPLEMENTATION OF REGULATIONS.

    Notwithstanding any other provision of law, the regulations 
relating to restrictions on assistance to noncitizens, contained in the 
final rule issued by the Secretary of Housing and Urban Development in 
RIN 2501-AA63 (Docket No. R-95-1409; FR-2383-F-050), published in the 
Federal Register of March 20, 1995 (Vol. 60., No. 53; pp. 14824-14861), 
shall not apply on or after April 1, 1996, and the Secretary of Housing 
and Urban Development may not issue, implement, or enforce any 
regulation or guideline that is effective on or after such date that is 
substantially based upon such regulations unless such regulation or 
guideline is consistent with the provisions of section 214 of the 
Housing and Community Development Act of 1980, as amended by this Act.
Use of Assisted Housing by Aliens Act of 1995 - Amends the Housing and Community Development Act of 1980 with respect to certain housing assistance to aliens to:  (1) make specified assistance termination procedures mandatory; (2) prorate continued assistance on the basis of individual eligibility; and (3) reduce the assistance termination deferment to a single three-month period. 
Sets forth verification of immigration status and financial assistance eligibility requirements, including penalties for permitting an ineligible person to use such assistance. 
Suspends the implementation of certain noncitizen housing assistance regulations and prohibits implementation of any related regulations that are inconsistent with the provisions of this Act.
Use of Assisted Housing by Aliens Act of 1995