SECTION 1. DESIGNATION OF MILITARY INSTALLATIONS AND CERTAIN 
              COMMUNITIES AS ENTERPRISE ZONES AND REDEVELOPMENT AREAS.

    (a) Designation as Enterprise Zones.--Notwithstanding the 
designation process specified in section 701 of the Housing and 
Community Development Act of 1987 (42 U.S.C. 11501), each military 
installation selected for closure or substantial realignment under a 
base closure law shall be designated by the Secretary of Housing and 
Urban Development as an enterprise zone for purposes of title VII of 
such Act. An enterprise zone designated under this subsection shall 
include the local community within the administrative and political 
jurisdiction of which the military installation is located.
    (b) Designation as Redevelopment Areas.--Notwithstanding the 
designation process specified in section 401 of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3161), each military 
installation selected for closure or substantial realignment under a 
base closure law shall be designated by the Secretary of Commerce as a 
redevelopment area for purposes of such Act. A redevelopment area 
designated under this subsection shall include the local community 
within the administrative and political jurisdiction of which the 
military installation is located.
    (c) Time for Designations.--The designations of a military 
installation as an enterprise zone under subsection (a) and as a 
redevelopment area under subsection (b) shall be made not later than 60 
days after the date on which the installation is recommended for 
closure or substantial realignment in a base closure report transmitted 
to the Congress by the President pursuant to section 2903(e) of the 
Defense Base Closure and Realignment Act of 1990 (part A of title XXIX 
of Public Law 101-510; 10 U.S.C. 2687 note), and such report is not 
disapproved by the Congress in a joint resolution enacted under section 
2908 of such Act. In the case of military installations selected for 
closure or substantial realignment before the date of the enactment of 
this Act, the designations under subsections (a) and (b) shall be made 
not later than 60 days after the date of the enactment of this Act.
    (d) Treatment of Designated Installations.--Enterprise zones 
designated under subsection (a) shall be in addition to the 100 
enterprise zones authorized to be designated under section 701(a)(2)(A) 
of the Housing and Community Development Act of 1987 (42 U.S.C. 
11501(a)(2)(A)).
    (e) Course of Action.--In the case of an enterprise zone designated 
under subsection (a), the course of action required under section 
701(d) of the Housing and Community Development Act of 1987 (42 U.S.C. 
11501(d)) for the enterprise zone may be funded from proceeds of 
programs administered by the Secretary of Defense or the Secretary of 
Commerce to provide economic adjustment assistance or community 
planning assistance in connection with the closure or realignment of 
military installations.
    (f) Review of Redevelopment Area Designation.--The designation of a 
military installation as a redevelopment area under subsection (b) 
shall remain in effect for the 5-year period beginning on the date of 
the designation. After such period, the Secretary of Commerce shall 
conduct an annual review of such area under section 402 of the Public 
Works and Economic Development of 1965 (42 U.S.C. 3162) and shall 
terminate or modify such designation whenever the area does not satisfy 
the designation requirements of section 401 of such Act.
    (g) Definitions.--For purposes of this section:
            (1) The term ``base closure law'' means--
                    (A) the Defense Base Closure and Realignment Act of 
                1990 (part A of title XXIX of Public Law 101-510; 10 
                U.S.C. 2687 note); and
                    (B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (Public 
                Law 100-526; 10 U.S.C. 2687 note).
            (2) The term ``substantial realignment'' means a reduction 
        in the operation of a military installation such that 50 
        percent or more of the personnel assigned to or employed at the 
        military installation, including civilian employees of the 
        Department of Defense and members of the Armed Forces, are 
        reassigned or transferred to another military installation.

SEC. 2. PRIORITY FOR COMMERCIAL USE OF PROPERTY ON MILITARY 
              INSTALLATIONS DESIGNATED AS ENTERPRISE ZONES AND 
              REDEVELOPMENT AREAS.

    Section 501(a) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11411(a)) is amended by adding at the end the following new 
sentence: ``In the case of a military installation designated as an 
enterprise zone for purposes of title VII of the Housing and Community 
Development Act of 1987 (42 U.S.C. 11501 et seq.) and as a 
redevelopment area for purposes of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3121 et seq.), the Secretary may not 
identify buildings or other properties located on the military 
installation as suitable for use to assist the homeless until such time 
as (1) the Secretary certifies to the Congress that the buildings or 
other properties are no longer being considered for commercial uses 
consistent with the designation of the military installation as an 
enterprise zone, and (2) the Secretary of Commerce certifies to the 
Congress that the buildings or other properties are no longer being 
considered for redevelopment uses consistent with the designation of 
the military installation as a redevelopment area.''.
Requires each military installation selected for closure or substantial realignment under a base closure law to be designated as: (1) an enterprise zone for purposes of title VII of the Housing and Community Development Act of 1987; and (2) a redevelopment area for purposes of title IV of the Public Works and Economic Development Act of 1965 (making the local community of such military installation eligible for certain developmental financial and other assistance). Requires such designations to be made within 60 days after the recommendation for installation closure or realignment. 
Amends the Stewart B. McKinney Homeless Assistance Act to prohibit the Secretary of Housing and Urban Development, in the case of each military installation designated as either an enterprise zone or a redevelopment area, from identifying buildings or other properties at such installation as suitable for housing for the homeless until:  (1) such Secretary certifies to the Congress that such buildings or properties are no longer being considered for commercial uses as an enterprise zone; and (2) the Secretary of Commerce makes the same certification with respect to such use as a redevelopment area.
To designate military installations selected for closure or realignment under a base closure law, and the communities within which such military installations are located, as enterprise zones for purposes of title VII of the Housing and Community Development Act of 1987 and as redevelopment areas for purposes of the Public Works and Economic Development Act of 1965.