S. 3534

One Hundred Ninth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the third day of January, two thousand and six

An Act

To amend the Workforce Investment Act of 1998 to provide for a YouthBuild

program.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘YouthBuild Transfer Act’’.

SEC. 2. YOUTHBUILD PROGRAM.

(a) ESTABLISHMENT OF YOUTHBUILD PROGRAM IN THE DEPARTMENT OF LABOR.—Subtitle D of title I of the Workforce Investment

Act of 1998 is amended by inserting before section 174 (29 U.S.C.

2919) the following new section:

‘‘SEC. 173A. YOUTHBUILD PROGRAM.

‘‘(a) STATEMENT OF PURPOSE.—The purposes of this section

are—

‘‘(1) to enable disadvantaged youth to obtain the education

and employment skills necessary to achieve economic self-sufficiency in occupations in demand and postsecondary education

and training opportunities;

‘‘(2) to provide disadvantaged youth with opportunities for

meaningful work and service to their communities;

‘‘(3) to foster the development of employment and leadership skills and commitment to community development among

youth in low-income communities; and

‘‘(4) to expand the supply of permanent affordable housing

for homeless individuals and low-income families by utilizing

the energies and talents of disadvantaged youth.

‘‘(b) DEFINITIONS.—In this section:

‘‘(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 (42 U.S.C. 1437a(b)).

‘‘(2) APPLICANT.—The term ‘applicant’ means an eligible

entity that has submitted an application under subsection (c).

‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a

public or private nonprofit agency or organization (including

a consortium of such agencies or organizations), including—

‘‘(A) a community-based organization;

‘‘(B) a faith-based organization;

‘‘(C) an entity carrying out activities under this title,

such as a local board;

‘‘(D) a community action agency;

‘‘(E) a State or local housing development agency;
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‘‘(F) an Indian tribe or other agency primarily serving

Indians; ‘‘(G) a community development corporation;

‘‘(H) a State or local youth service or conservation

corps; and ‘‘(I) any other entity eligible to provide education or

employment training under a Federal program (other than

the program carried out under this section).

‘‘(4) HOMELESS INDIVIDUAL.—The term ‘homeless individual’

has the meaning given the term in section 103 of the McKinneyVento Homeless Assistance Act (42 U.S.C. 11302).

‘‘(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 individuals or lowincome families.

‘‘(6) INCOME.—The term ‘income’ has the meaning given

the term in section 3(b) of the United States Housing Act

of 1937 (42 U.S.C. 1437a(b)).

‘‘(7) INDIAN; INDIAN TRIBE.—The terms ‘Indian’ and ‘Indian

tribe’ have the meanings given such terms in section 4 of

the Indian Self-Determination and Education Assistance Act

(25 U.S.C. 450b).

‘‘(8) INDIVIDUAL OF LIMITED ENGLISH PROFICIENCY.—The

term ‘individual of limited English proficiency’ means an eligible

participant under this section who meets the criteria set forth

in section 203(10) of the Adult Education and Family Literacy

Act (20 U.S.C. 9202(10)). ‘‘(9) LOW-INCOME FAMILY.—The term ‘low-income family’ means a family described in section 3(b)(2) of the United States

Housing Act of 1937 (42 U.S.C. 1437a(b)(2)). ‘‘(10) QUALIFIED NATIONAL NONPROFIT AGENCY.—The term ‘qualified national nonprofit agency’ means a nonprofit agency

that— ‘‘(A) has significant national experience providing services consisting of training, information, technical assistance, and data management to YouthBuild programs or

similar projects; and ‘‘(B) has the capacity to provide those services. ‘‘(11) REGISTERED APPRENTICESHIP PROGRAM.—The term

‘registered apprenticeship program’ means an apprenticeship

program—

‘‘(A) registered under the Act of August 16, 1937 (commonly known as the ‘National Apprenticeship Act’; 50 Stat.

664, chapter 663; 20 U.S.C. 50 et seq.); and

‘‘(B) that meets such other criteria as may be established by the Secretary under this section.

‘‘(12) TRANSITIONAL HOUSING.—The term ‘transitional

housing’ means housing provided for the purpose of facilitating

the movement of homeless individuals to independent living

within a reasonable amount of time. The term includes housing

primarily designed to serve deinstitutionalized homeless

individuals and other homeless individuals who are individuals

with disabilities or members of families with children. ‘‘(13) YOUTHBUILD PROGRAM.—The term ‘YouthBuild program’ means any program that receives assistance under this

section and provides disadvantaged youth with opportunities
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for employment, education, leadership development, and

training through the rehabilitation or construction of housing

for homeless individuals and low-income families, and of public

facilities.

‘‘(c) YOUTHBUILD GRANTS.—

‘‘(1) AMOUNTS OF GRANTS.—The Secretary is authorized

to make grants to applicants for the purpose of carrying out

YouthBuild programs approved under this section.

‘‘(2) ELIGIBLE ACTIVITIES.—An entity that receives a grant

under this subsection shall use the funds made available

through the grant to carry out a YouthBuild program, which

may include the following activities:

‘‘(A) Education and workforce investment activities

including—

‘‘(i) work experience and skills training (coordinated, to the maximum extent feasible, with

preapprenticeship and registered apprenticeship programs) in the rehabilitation and construction activities

described in subparagraphs (B) and (C);

‘‘(ii) occupational skills training;

‘‘(iii) other paid and unpaid work experiences,

including internships and job shadowing;

‘‘(iv) services and activities designed to meet the

educational needs of participants, including—

‘‘(I) basic skills instruction and remedial education;

‘‘(II) language instruction educational programs for individuals with limited English proficiency;

‘‘(III) secondary education services and activities, including tutoring, study skills training, and

dropout prevention activities, designed to lead to

the attainment of a secondary school diploma, General Education Development (GED) credential, or

other State-recognized equivalent (including recognized alternative standards for individuals with

disabilities);

‘‘(IV) counseling and assistance in obtaining

postsecondary education and required financial

aid; and

‘‘(V) alternative secondary school services;

‘‘(v) counseling services and related activities, such

as comprehensive guidance and counseling on drug

and alcohol abuse and referral;

‘‘(vi) activities designed to develop employment and

leadership skills, which may include community service

and peer-centered activities encouraging responsibility

and other positive social behaviors, and activities

related to youth policy committees that participate in

decision-making related to the program;

‘‘(vii) supportive services and provision of needbased stipends necessary to enable individuals to

participate in the program and supportive services to

assist individuals, for a period not to exceed 12 months

after the completion of training, in obtaining or

retaining employment, or applying for and

transitioning to postsecondary education; and
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‘‘(viii) job search and assistance.

‘‘(B) Supervision and training for participants in the

rehabilitation or construction of housing, including residential housing for homeless individuals or low-income families, or transitional housing for homeless individuals.

‘‘(C) Supervision and training for participants in the

rehabilitation or construction of community and other

public facilities, except that not more than 10 percent of

funds appropriated to carry out this section may be used

for such supervision and training.

‘‘(D) Payment of administrative costs of the applicant,

except that not more than 15 percent of the amount of

assistance provided under this subsection to the grant

recipient may be used for such costs.

‘‘(E) Adult mentoring.

‘‘(F) Provision of wages, stipends, or benefits to participants in the program.

‘‘(G) Ongoing training and technical assistance that

are related to developing and carrying out the program.

‘‘(H) Follow-up services.

‘‘(3) APPLICATION.—

‘‘(A) FORM AND PROCEDURE.—To be qualified to receive

a grant under this subsection, an eligible entity shall

submit an application at such time, in such manner, and

containing such information as the Secretary may require.

‘‘(B) MINIMUM REQUIREMENTS.—The Secretary shall

require that the application contain, at a minimum—

‘‘(i) labor market information for the labor market

area where the proposed program will be implemented,

including both current data (as of the date of submission of the application) and projections on career

opportunities in growing industries;

‘‘(ii) a request for the grant, specifying the amount

of the grant requested and its proposed uses;

‘‘(iii) a description of the applicant and a statement

of its qualifications, including a description of the

applicant’s relationship with local boards, one-stop

operators, local unions, entities carrying out registered

apprenticeship programs, other community groups, and

employers, and the applicant’s past experience, if any,

with rehabilitation or construction of housing or public

facilities, and with youth education and employment

training programs;

‘‘(iv) a description of the proposed site for the proposed program;

‘‘(v) a description of the educational and job

training activities, work opportunities, postsecondary

education and training opportunities, and other services that will be provided to participants, and how

those activities, opportunities, and services will prepare

youth for employment in occupations in demand in

the labor market area described in clause (i);

‘‘(vi) a description of the proposed rehabilitation

or construction activities to be undertaken under the

grant and the anticipated schedule for carrying out

such activities;
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‘‘(vii) a description of the manner in which eligible

youth will be recruited and selected as participants,

including a description of arrangements that will be

made with local boards, one-stop operators, communityand faith-based organizations, State educational agencies or local educational agencies (including agencies

of Indian tribes), public assistance agencies, the courts

of jurisdiction, agencies operating shelters for homeless

individuals and other agencies that serve youth who

are homeless individuals, foster care agencies, and

other appropriate public and private agencies; ‘‘(viii) a description of the special outreach efforts

that will be undertaken to recruit eligible young women

(including young women with dependent children) as

participants; ‘‘(ix) a description of the specific role of employers

in the proposed program, such as their role in developing the proposed program and assisting in service

provision and in placement activities; ‘‘(x) a description of how the proposed program

will be coordinated with other Federal, State, and local

activities and activities conducted by Indian tribes,

such as local workforce investment activities, vocational education programs, adult and language instruction educational programs, activities conducted by

public schools, activities, conducted by community colleges, national service programs, and other job training

provided with funds available under this title;

‘‘(xi) assurances that there will be a sufficient

number of adequately trained supervisory personnel

in the proposed program;

‘‘(xii) a description of results to be achieved with

respect to common indicators of performance for youth

and lifelong learning, as identified by the Secretary;

‘‘(xiii) a description of the applicant’s relationship

with local building trade unions regarding their

involvement in training to be provided through the

proposed program, the relationship of the proposed

program to established registered apprenticeship programs and employers, and the ability of the applicant

to grant industry-recognized skill certification through

the program;

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

‘‘(xv) 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 for the proposed program;

‘‘(xvi) a description of the commitments for any

additional resources (in addition to the funds made

available through the grant) to be made available to

the proposed program from—

‘‘(I) the applicant;

‘‘(II) recipients of other Federal, State or local

housing and community development assistance

who will sponsor any part of the rehabilitation,

construction, operation and maintenance, or other
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housing and community development activities

undertaken as part of the proposed program; or

‘‘(III) entities carrying out other Federal,

State, or local activities or activities conducted

by Indian tribes, including vocational education

programs, adult and language instruction educational programs, and job training provided with

funds available under this title;

‘‘(xvii) information identifying, and a description

of, the financing proposed for any—

‘‘(I) rehabilitation of the property involved;

‘‘(II) acquisition of the property; or

‘‘(III) construction of the property;

‘‘(xviii) information identifying, and a description

of, the entity that will operate and manage the property;

‘‘(xix) information identifying, and a description

of, the data collection systems to be used;

‘‘(xx) a certification, by a public official responsible

for the housing strategy for the State or unit of general

local government within which the proposed program

is located, that the proposed program is consistent

with the housing strategy; and

‘‘(xxi) a certification that the applicant will comply

with the requirements of the Fair Housing Act (42

U.S.C. 3601 et seq.) and will affirmatively further fair

housing.

‘‘(4) SELECTION CRITERIA.—For an applicant to be eligible

to receive a grant under this subsection, the applicant and

the applicant’s proposed program shall meet such selection

criteria as the Secretary shall establish under this section,

which shall include criteria relating to—

‘‘(A) the qualifications or potential capabilities of an

applicant;

‘‘(B) an applicant’s potential for developing a successful

YouthBuild program;

‘‘(C) the need for an applicant’s proposed program,

as determined by the degree of economic distress of the

community from which participants would be recruited

(measured by indicators such as poverty, youth unemployment, and the number of individuals who have dropped

out of secondary school) and of the community in which

the housing and public facilities proposed to be rehabilitated or constructed is located (measured by indicators

such as incidence of homelessness, shortage of affordable

housing, and poverty);

‘‘(D) the commitment of an applicant to providing skills

training, leadership development, and education to participants;

‘‘(E) the focus of a proposed program on preparing

youth for occupations in demand or postsecondary education and training opportunities;

‘‘(F) the extent of an applicant’s coordination of activities to be carried out through the proposed program with

local boards, one-stop operators, and one-stop partners

participating in the operation of the one-stop delivery
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system involved, or the extent of the applicant’s good faith

efforts in achieving such coordination; ‘‘(G) the extent of the applicant’s coordination of activities with public education, criminal justice, housing and

community development, national service, or postsecondary

education or other systems that relate to the goals of the

proposed program; ‘‘(H) the extent of an applicant’s coordination of activities with employers in the local area involved; ‘‘(I) the extent to which a proposed program provides

for inclusion of tenants who were previously homeless

individuals in the rental housing provided through the

program; ‘‘(J) the commitment of additional resources (in addition to the funds made available through the grant) to

a proposed program by— ‘‘(i) an applicant;

‘‘(ii) recipients of other Federal, State, or local

housing and community development assistance who

will sponsor any part of the rehabilitation, construction, operation and maintenance, or other housing and

community development activities undertaken as part

of the proposed program; or

‘‘(iii) entities carrying out other Federal, State,

or local activities or activities conducted by Indian

tribes, including vocational education programs, adult

and language instruction educational programs, and

job training provided with funds available under this

title;

‘‘(K) the applicant’s potential to serve different regions,

including rural areas and States that have not previously

received grants for YouthBuild programs; and

‘‘(L) such other factors as the Secretary determines

to be appropriate for purposes of carrying out the proposed

program in an effective and efficient manner.

‘‘(5) APPROVAL.—To the extent practicable, the Secretary

shall notify each applicant, not later than 5 months after the

date of receipt of the application by the Secretary, whether

the application is approved or not approved.

‘‘(d) USE OF HOUSING UNITS.—Residential housing units

rehabilitated or constructed using funds made available under subsection (c) shall be available solely—

‘‘(1) for rental by, or sale to, homeless individuals or lowincome families; or

‘‘(2) for use as transitional or permanent housing, for the

purpose of assisting in the movement of homeless individuals

to independent living.

‘‘(e) ADDITIONAL PROGRAM REQUIREMENTS.— ‘‘(1) ELIGIBLE PARTICIPANTS.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph

(B), an individual may participate in a YouthBuild program

only if such individual is—

‘‘(i) not less than age 16 and not more than age

24, on the date of enrollment;

‘‘(ii) a member of a low-income family, a youth

in foster care (including youth aging out of foster care),

a youth offender, a youth who is an individual with
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a disability, a child of incarcerated parents, or a

migrant youth; and ‘‘(iii) a school dropout. ‘‘(B) 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 clause (ii) or

(iii) of subparagraph (A), but who—

‘‘(i) are basic skills deficient, despite attainment

of a secondary school diploma, General Education

Development (GED) credential, or other State-recognized equivalent (including recognized alternative

standards for individuals with disabilities); or

‘‘(ii) have been referred by a local secondary school

for participation in a YouthBuild program leading to

the attainment of a secondary school diploma.

‘‘(2) PARTICIPATION LIMITATION.—An eligible individual

selected for participation in a YouthBuild program shall be

offered full-time participation in the program for a period of

not less than 6 months and not more than 24 months.

‘‘(3) MINIMUM TIME DEVOTED TO EDUCATIONAL SERVICES

AND ACTIVITIES.—A YouthBuild program receiving assistance

under subsection (c) shall be structured so that participants

in the program are offered—

‘‘(A) education and related services and activities

designed to meet educational needs, such as those specified

in clauses (iv) through (vii) of subsection (c)(2)(A), during

at least 50 percent of the time during which the participants participate in the program; and

‘‘(B) work and skill development activities such as those

specified in clauses (i), (ii), (iii), and (viii) of subsection

(c)(2)(A), during at least 40 percent of the time during

which the participants participate in the program.

‘‘(4) AUTHORITY RESTRICTION.—No provision of this section

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 (including

a 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.

‘‘(5) STATE AND LOCAL STANDARDS.—All educational programs and activities supported with funds provided under subsection (c) shall be consistent with applicable State and local

educational standards. Standards and procedures for the programs and activities that relate to awarding academic credit

for and certifying educational attainment in such programs

and activities shall be consistent with applicable State and

local educational standards.

‘‘(f) MANAGEMENT AND TECHNICAL ASSISTANCE.—

‘‘(1) SECRETARY ASSISTANCE.—The Secretary may enter into

contracts with 1 or more entities to provide assistance to the

Secretary in the management, supervision, and coordination

of the program carried out under this section. ‘‘(2) TECHNICAL ASSISTANCE.— ‘‘(A) CONTRACTS AND GRANTS.—The Secretary shall

enter into contracts with or make grants to 1 or more
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qualified national nonprofit agencies, in order to provide

training, information, technical assistance, and data

management to recipients of grants under subsection (c). ‘‘(B) RESERVATION OF FUNDS.—Of the amounts available under subsection (h) to carry out this section for

a fiscal year, the Secretary shall reserve 5 percent to carry

out subparagraph (A).

‘‘(3) CAPACITY BUILDING GRANTS.— ‘‘(A) IN GENERAL.—In each fiscal year, the Secretary

may use not more than 3 percent of the amounts available

under subsection (h) to award grants to 1 or more qualified

national nonprofit agencies to pay for the Federal share

of the cost of capacity building activities. ‘‘(B) FEDERAL SHARE.—The Federal share of the cost

described in subparagraph (A) shall be 25 percent. The

non-Federal share shall be provided from private sources.

‘‘(g) SUBGRANTS AND CONTRACTS.—Each recipient of a grant

under subsection (c) to carry out a YouthBuild program shall provide the services and activities described in this section directly

or through subgrants, contracts, or other arrangements with local

educational agencies, postsecondary educational institutions, State

or local housing development agencies, other public agencies,

including agencies of Indian tribes, or private organizations.

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(1) IN GENERAL.—There are authorized to be appropriated

for each of fiscal years 2007 through 2012 such sums as may

be necessary to carry out this section. ‘‘(2) FISCAL YEAR.—Notwithstanding section 189(g), appropriations for any fiscal year for programs and activities carried

out under this section shall be available for obligation only

on the basis of a fiscal year.’’. (b) CLERICAL AMENDMENT.—Section 1(b) of the Workforce

Investment Act of 1998 (relating to the table of contents) is amended

by inserting before the item relating to section 174 the following:

‘‘Sec. 173A. YouthBuild program’’.

(c) EXCEPTION TO PROGRAM YEAR APPROPRIATION CYCLE

REQUIREMENT.—Section 189(g)(1)(A) of the Workforce Investment

Act of 1998 (29 U.S.C. 2939(g)(1)(A)) is amended by inserting ‘‘and

section 173A’’ after ‘‘Except as provided in subparagraph (B)’’.

(d) CONFORMING AMENDMENTS.—

(1) Section 3 of the Housing and Urban Development Act

of 1968 (12 U.S.C. 1701u) is amended in paragraphs (1)(B)(iii)

and (2)(B) of subsection (c), and paragraphs (1)(B)(iii) and (2)(B)

of subsection (d), by striking ‘‘Youthbuild’’ and all that follows

and inserting ‘‘YouthBuild programs receiving assistance under

section 173A of the Workforce Investment Act of 1998.’’.

(2) Section 507(b) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4183(b))

is amended by striking ‘‘subtitle D of title IV of the CranstonGonzalez National Affordable Housing Act,’’.

(3) Section 402 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12870) is amended by striking

the second sentence of subsections (a) and (b).

(e) REPEAL OF PROVISIONS.—Subtitle D of title IV of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899

et seq.) is repealed.
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(f) EFFECTIVE DATE.—This section and the amendments made

by this section take effect on the earlier of—

(1) the date of enactment of this Act; and

(2) September 30, 2006.

SEC. 3. TRANSFER OF FUNCTIONS AND SAVINGS PROVISIONS.

(a) DEFINITIONS.—For purposes of this section, unless otherwise

provided or indicated by the context—

(1) the term ‘‘Federal agency’’ has the meaning given to

the term ‘‘agency’’ by section 551(1) of title 5, United States

Code;

(2) the term ‘‘function’’ means any duty, obligation, power,

authority, responsibility, right, privilege, activity, or program;

and

(3) the term ‘‘office’’ includes any office, administration,

agency, institute, unit, organizational entity, or component

thereof.

(b) TRANSFER OF FUNCTIONS.—There are transferred to the

Department of Labor all functions which the Secretary of Housing

and Urban Development exercised before the effective date of this

section (including all related functions of any officer or employee

of the Department of Housing and Urban Development) relating

to subtitle D of title IV of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et seq.).

(c) DETERMINATIONS OF CERTAIN FUNCTIONS BY THE OFFICE

OF MANAGEMENT AND BUDGET.—If necessary, the Office of Management and Budget shall make any determination of the functions

that are transferred under subsection (b).

(d) PERSONNEL PROVISIONS.—

(1) APPOINTMENTS.—The Secretary of Labor may appoint

and fix the compensation of such officers and employees,

including investigators, attorneys, and administrative law

judges, as may be necessary to carry out the respective functions transferred under this section. Except as otherwise provided by law, such officers and employees shall be appointed

in accordance with the civil service laws and their compensation

fixed in accordance with title 5, United States Code.

(2) EXPERTS AND CONSULTANTS.—The Secretary of Labor

may obtain the services of experts and consultants in accordance with section 3109 of title 5, United States Code, and

compensate such experts and consultants for each day

(including traveltime) at rates not in excess of the rate of

pay for level IV of the Executive Schedule under section 5315

of such title. The Secretary of Labor may pay experts and

consultants who are serving away from their homes or regular

place of business travel expenses and per diem in lieu of subsistence at rates authorized by sections 5702 and 5703 of such

title for persons in Government service employed intermittently.

(e) DELEGATION AND ASSIGNMENT.—Except where otherwise

expressly prohibited by law or otherwise provided by this section,

the Secretary of Labor may delegate any of the functions transferred

to the Secretary of Labor by this section and any function transferred or granted to the Secretary of Labor after the effective

date of this section to such officers and employees of the Department

of Labor as the Secretary of Labor may designate, and may

authorize successive redelegations of such functions as may be
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necessary or appropriate. No delegation of functions by the Secretary of Labor under this subsection or under any other provision

of this section shall relieve the Secretary of Labor of responsibility

for the administration of such functions.

(f) REORGANIZATION.—The Secretary of Labor is authorized to

allocate or reallocate any function transferred under subsection

(b) among the officers of the Department of Labor, and to establish,

consolidate, alter, or discontinue such organizational entities in

the Department of Labor as may be necessary or appropriate.

(g) RULES.—The Secretary of Labor is authorized to prescribe,

in accordance with the provisions of chapters 5 and 6 of title

5, United States Code, such rules and regulations as the Secretary

of Labor determines necessary or appropriate to administer and

manage the functions of the Department of Labor.

(h) TRANSFER AND ALLOCATIONS OF APPROPRIATIONS.—Except

as otherwise provided in this section, the assets, liabilities, grants,

contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds used, held, arising

from, available to, or to be made available in connection with

the functions transferred by this section, subject to section 1531

of title 31, United States Code, shall be transferred to the Department of Labor. Unexpended funds transferred pursuant to this

subsection shall be used only for the purposes for which the funds

were originally authorized and appropriated.

(i) TRANSFERS.—The Director of the Office of Management and

Budget, at such time or times as the Director shall provide, is

authorized to make such determinations as may be necessary with

regard to the functions transferred by this section, and to make

such dispositions of assets, liabilities, grants, contracts, property,

records, and unexpended balances of appropriations, authorizations,

allocations, and other funds used, held, arising from, available

to, or to be made available in connection with such functions,

subject to section 1531 of title 31, United States Code, as may

be necessary to carry out the provisions of this section. The Director

of the Office of Management and Budget shall provide for the

termination of the affairs of all entities terminated by this section

and for such further measures and dispositions as may be necessary

to effectuate the purposes of this section.

(j) SAVINGS PROVISIONS.—

(1) CONTINUING EFFECT OF LEGAL DOCUMENTS.—All orders,

determinations, rules, regulations, permits, agreements, grants,

contracts, certificates, licenses, registrations, privileges, and

other administrative actions—

(A) which have been issued, made, granted, or allowed

to become effective by the President, any Federal agency

or official thereof, or by a court of competent jurisdiction,

in the performance of functions which are transferred under

this section; and

(B) which are in effect at the time this section takes

effect, or were final before the effective date of this section

and are to become effective on or after the effective date

of this section,

shall continue in effect according to their terms until modified,

terminated, superseded, set aside, or revoked in accordance

with law by the President, the Secretary of Labor or other

authorized official, a court of competent jurisdiction, or by

operation of law.
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(2) PROCEEDINGS NOT AFFECTED.—The provisions of this

section shall not affect any proceedings, including notices of

proposed rulemaking, or any application for any license, permit,

certificate, or financial assistance pending before the Department of Housing and Urban Development at the time this

section takes effect, with respect to functions transferred by

this section but such proceedings and applications shall be

continued. Orders shall be issued in such proceedings, appeals

shall be taken therefrom, and payments shall be made pursuant

to such orders, as if this section had not been enacted, and

orders issued in any such proceedings shall continue in effect

until modified, terminated, superseded, or revoked by a duly

authorized official, by a court of competent jurisdiction, or

by operation of law. Nothing in this paragraph shall be deemed

to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same

extent that such proceeding could have been discontinued or

modified if this section had not been enacted.

(3) SUITS NOT AFFECTED.—The provisions of this section

shall not affect suits commenced before the effective date of

this section, and in all such suits, proceedings shall be had,

appeals taken, and judgments rendered in the same manner

and with the same effect as if this section had not been enacted.

(4) NONABATEMENT OF ACTIONS.—No suit, action, or other

proceeding commenced by or against the Department of

Housing and Urban Development, or by or against any individual in the official capacity of such individual as an officer

of the Department of Housing and Urban Development, shall

abate by reason of the enactment of this section.

(5) ADMINISTRATIVE ACTIONS RELATING TO PROMULGATION

OF REGULATIONS.—Any administrative action relating to the

preparation or promulgation of a regulation by the Department

of Housing and Urban Development relating to a function transferred under this section may be continued by the Department

of Labor with the same effect as if this section had not been

enacted.

(k) SEPARABILITY.—If a provision of this section or its application to any person or circumstance is held invalid, neither the

remainder of this section nor the application of the provision to

other persons or circumstances shall be affected.

(l) TRANSITION.—The Secretary of Labor is authorized to

utilize—

(1) the services of such officers, employees, and other personnel of the Department of Housing and Urban Development

with respect to functions transferred to the Department of

Labor by this section; and

(2) funds appropriated to such functions for such period

of time,

as may reasonably be needed to facilitate the orderly implementation of this section.

(m) ACCOMPLISHING ORDERLY TRANSFER.—Consistent with the

requirements of this section, the Secretary of Labor and the Secretary of Housing and Urban Development shall take such actions

as the Secretaries determine are appropriate to accomplish the

orderly transfer of functions as described in subsection (b).

(n) ADMINISTRATION OF PRIOR GRANTS.—Notwithstanding any

other provision of this Act, grants awarded under subtitle D of
S. 3534—13

title IV of the Cranston-Gonzalez National Affordable Housing Act

(42 U.S.C. 12899 et seq.) with funds appropriated for fiscal year

2006 or a preceding fiscal year shall be subject to the continuing

authority of the Secretary of Housing and Urban Development

under the provisions of such subtitle, as in effect on the day before

the date of enactment of this Act, until the authority to expend

applicable funds for the grants, as specified by the Secretary of

Housing and Urban Development, has expired and the Secretary

has completed the administrative responsibilities associated with

the grants.

(o) REFERENCES.—A reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or relating to—

(1) the Secretary of Housing and Urban Development with

regard to functions transferred under subsection (b), shall be

deemed to refer to the Secretary of Labor; and

(2) the Department of Housing and Urban Development

with regard to functions transferred under subsection (b), shall

be deemed to refer to the Department of Labor.

(p) EFFECTIVE DATE.—This section takes effect on the earlier

of—

(1) the date of enactment of this Act; and

(2) September 30, 2006.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.