H. R. 2880

One Hundred Fourth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Wednesday,

the third day of January, one thousand nine hundred and ninety-six

An Act

Making appropriations for fiscal year 1996 to make a downpayment toward a

balanced budget, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the

following sums are hereby appropriated, out of any money in the

Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units of

Government for the fiscal year 1996, and for other purposes, namely:

TITLE I

SEC. 101. (a) Such amounts as may be necessary under the authority and conditions provided in the applicable appropriations

Act for the fiscal year 1995 including the authority and conditions

provided in emergency supplemental appropriations Acts for fiscal

year 1995 for continuing projects or activities, except for those

projects and activities provided for in Public Law 104–91 and Public

Law 104–92, including the costs of direct loans and loan guarantees

(not otherwise specifically provided for in this Act) which were

conducted in the fiscal year 1995 and for which appropriations,

funds, or other authority would be available in the following appropriations Act as passed each House, excluding conference reports:

The Department of the Interior and Related Agencies

Appropriations Act, 1996; and

The Departments of Labor, Health and Human Services,

and Education, and Related Agencies Appropriations Act, 1996:

Provided, That whenever the amount which would be made available or the authority which would be granted in these Acts is

greater than that which would be available or granted under current

operations, the pertinent project or activity shall be continued at

a rate for operations not exceeding the current rate. (b) Whenever the amount which would be made available or

the authority which would be granted under an Act listed in this

section as passed by the House as of the date of enactment of

this Act, is different from that which would be available or granted

under such Act as passed by the Senate as of the date of enactment

of this Act, the pertinent project or activity shall be continued

at a rate for operations not exceeding the current rate or the

rate permitted by the action of the House or the Senate, whichever

is lower, under the authority and conditions provided in the

applicable appropriations Act for the fiscal year 1995: Provided,

That where an item is not included in either version or where

an item is included in only one version of the Act as passed
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by both Houses as of the date of enactment of this Act, the pertinent

project or activity shall not be continued except as provided for

in section 111 under the appropriation, fund, or authority granted

by the applicable appropriations Act for the fiscal year 1995 and

under the authority and conditions provided in the applicable appropriations Act for the fiscal year 1995.

(c) Whenever an Act listed in this section has been passed

by only the House or only the Senate as of the date of enactment

of this Act, the pertinent project or activity shall be continued

under the appropriation, fund, or authority granted by the one

House at a rate for operations not exceeding the current rate

or the rate permitted by the action of the one House, whichever

is lower, and under the authority and conditions provided in the

applicable appropriations Act for the fiscal year 1995: Provided,

That where an item is funded in the applicable appropriations

Act for the fiscal year 1995 and not included in the version passed

by the one House as of the date of enactment of this Act, the

pertinent project or activity shall not be continued except as provided for in section 111 under the appropriation, fund, or authority

granted by the applicable appropriations Act for the fiscal year

1995 and under the authority and conditions provided in the

applicable appropriations Act for the fiscal year 1995.

SEC. 102. Appropriations made by section 101 shall be available

to the extent and in the manner which would be provided by

the pertinent appropriations Act.

SEC. 103. No appropriations or funds made available or authority granted pursuant to section 101 shall be used to initiate or

resume any project or activity for which appropriations, funds,

or other authority were not available during the fiscal year 1995.

SEC. 104. No provision which is included in an appropriations

Act enumerated in section 101 but which was not included in

the applicable appropriations Act for fiscal year 1995 and which

by its terms is applicable to more than one appropriation, fund,

or authority shall be applicable to any appropriation, fund, or

authority provided in this title of this Act.

SEC. 105. Appropriations made and authority granted pursuant

to this title of this Act shall cover all obligations or expenditures

incurred for any program, project, or activity during the period

for which funds or authority for such project or activity are available

under this Act.

SEC. 106. Unless otherwise provided for in this title of this

Act or in the applicable appropriations Act, appropriations and

funds made available and authority granted pursuant to this title

of this Act shall be available until (a) enactment into law of an

appropriation for any project or activity provided for in this title

of this Act, or (b) the enactment into law of the applicable appropriations Act without any provision for such project or activity, or

(c) March 15, 1996, whichever first occurs.

SEC. 107. This title of this Act shall be implemented so that

only the most limited funding action of that permitted in this

title of this Act shall be taken in order to provide for continuation

of projects and activities.

SEC. 108. Expenditures made pursuant to this title of this

Act shall be charged to the applicable appropriation, fund, or

authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law.
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SEC. 109. No provision in the appropriations Act for the fiscal

year 1996 referred to in section 101 of this Act that makes the

availability of any appropriation provided therein dependent upon

the enactment of additional authorizing or other legislation shall

be effective before the date set forth in section 106(c) of this Act.

SEC. 110. Appropriations and funds made available by or

authority granted pursuant to this title of this Act may be used

without regard to the time limitations for submission and approval

of apportionments set forth in section 1513 of title 31, United

States Code, but nothing herein shall be construed to waive any

other provision of law governing the apportionment of funds.

SEC. 111. Notwithstanding any other provision of this title

of this Act, except section 106, whenever an Act listed in section

101 as passed by both the House and the Senate as of the date

of enactment of this Act, does not include funding for an ongoing

project or activity for which there is a budget request, or whenever

an Act listed in section 101 has been passed by only the House

or only the Senate as of the date of enactment of this Act, and

an item funded in fiscal year 1995 is not included in the version

passed by the one House, or whenever the rate for operations

for an ongoing project or activity provided by section 101 for which

there is a budget request would result in the project or activity

being significantly reduced, the pertinent project or activity may

be continued under the authority and conditions provided in the

applicable appropriations Act for the fiscal year 1995 by increasing

the rate for operations provided by section 101 to a rate for operations not to exceed one that provides the minimal level that

would enable existing activities to continue. No new contracts or

grants shall be awarded in excess of an amount that bears the

same ratio to the rate for operations provided by this section as

the number of days covered by this title of this Act bears to

366. For the purposes of this title of this Act, the minimal level

means a rate for operations that is reduced from the current rate

by 25 percent.

SEC. 112. Notwithstanding any other provision of this title

of this Act, except section 106, whenever the rate for operations

for any continuing project or activity provided by section 101 or

section 111 for which there is a budget request would result in

a furlough of Government employees, that rate for operations may

be increased to the minimum level that would enable the furlough

to be avoided. No new contracts or grants shall be awarded in

excess of an amount that bears the same ratio to the rate for

operations provided by this section as the number of days covered

by this Act bears to 366: Provided, That the first sentence of

section 112 shall not apply except to furloughs that exceed one

workday per pay period for the affected workforce during the period

of January 26, 1996 through March 15, 1996.

SEC. 113. Notwithstanding any other provision of this title

of this Act, except sections 106 and 111, for those programs that

had high initial rates of operation or complete distribution of funding at the beginning of the fiscal year in fiscal year 1995 because

of distributions of funding to States, foreign countries, grantees,

or others, similar distributions of funds for fiscal year 1996 shall

not be made and no grants shall be awarded for such programs

funded by this title of this Act that would impinge on final funding

prerogatives.
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SEC. 114. Notwithstanding any other provision of this title

of this Act, except section 106, any distribution of funding under

the Rehabilitation Services and Disability Research account in the

Department of Education may be made up to an amount that

bears the same ratio to the rate for operation for this account

provided by this title of this Act as the number of days covered

by this title of this Act bears to 366.

SEC. 115. Notwithstanding any other provision of this Act,

except section 106, the rate for operations of the following projects

or activities shall be only the minimum necessary to accomplish

orderly termination:

Child Development Associate Scholarships in the Department of Health and Human Services;

Dependent Care Planning and Development in the Department of Health and Human Services;

Law Related Education in the Department of Education;

Dropout Prevention Demonstrations in the Department of

Education;

Aid for Institutional Development—Endowment Grants in

the Department of Education;

Aid for Institutional Development—Evaluation in the

Department of Education;

Native Hawaiian and Alaska Native Cultural Arts;

Innovative Projects in Community Service in the Department of Education;

Cooperative Education in the Department of Education;

and

Douglas Teacher Scholarships in the Department of Education.

SEC. 116. COMPENSATION AND RATIFICATION OF AUTHORITY.— (a) Any Federal employees furloughed as a result of a lapse in

appropriations, if any, after midnight November 13, 1995, until

the enactment of this Act shall be compensated at their standard

rate of compensation for the period during which there was a

lapse in appropriations.

(b) All obligations incurred in anticipation of the appropriations

made and the authority granted by this title of this Act for the

purposes of maintaining the essential level of activity to protect

life and property and bring about orderly termination of Government functions are hereby ratified and approved if otherwise in

accord with the provisions of this title of this Act.

SEC. 117. Notwithstanding any other provision of this title

of this Act, except section 106, upon enactment of this Act any

new grants or contracts for the following programs shall be made

at a level not to exceed a rate of 75 per centum of prior monthly

awards:

Department of Health and Human Services:

Health Resources and Services Administration:

Health Resources and Services:

Trauma Care

Health Care Facilities

Assistant Secretary for Health:

Office of the Assistant Secretary for

Health:

National Vaccine Program

Health Care Reform Data Analysis

National AIDS Program Office
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Health Care Financing Administration:

Program Management:

Essential Access Community

Hospitals

Administration for Children and Families:

Children and Families Services Program:

Youth Gang Substance Abuse

Advisory Board on Child Abuse and

Neglect

Child Welfare Research

Social Services Research

Homeless Service Grants

Community Schools (crime trust fund)

Administration on Aging:

Aging Services Programs:

Pension Counseling

Federal Council on Aging

White House Conference on Aging

Department of Education:

Education for the Disadvantaged:

State School Improvement

School Improvement Programs:

Safe and Drug Free Schools and

Communities: National Program

Women’s Educational Equity

Bilingual and Immigrant Education:

Bilingual Education Support Services

Higher Education:

Faculty Development Fellowships

School, College, and University

Partnerships

Related Agencies:

Corporation for National and Community

Service:

Domestic Volunteer Service Programs,

Operating Expenses:

Senior Demonstration Program

National Education Standards and

Improvement Council.

SEC. 118. Notwithstanding any other provision of law or this

Act, upon enactment of this Act the Secretary of each cabinet

level department other than State, Defense, Ambassador to the

United Nations, and Central Intelligence shall not obligate a total

amount of funds for their individual official travel expenses for

fiscal year 1996 that would be greater than 110 per centum of

the average total amount of the individual official travel expenses

of the relevant departmental secretary for the fiscal years 1990

through 1995.

SEC. 119. Notwithstanding any other provision of law or of

this title of this Act, the maximum Pell Grant for which a student

shall be eligible under the Higher Education Act of 1965, as

amended, during award year 1996–1997 shall be at least $2,440.

SEC. 120. Notwithstanding any other provision of law, the

first proviso under the heading ‘‘Education for the disadvantaged’’

in title III of H.R. 2127, as passed by the House of Representatives,

shall take effect upon enactment of this Act.

SEC. 121. 501 FIRST STREET SE., DISTRICT OF COLUMBIA.
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(a) DISPOSAL OF REAL PROPERTY.—

(1) IN GENERAL.—The Architect of the Capitol shall dispose

of by sale at fair market value all right, title, and interest

of the United States in and to the parcel of real property

described in paragraph (9), including all improvements to such

real property. Such disposal shall be made by quitclaim deed.

(2) HOUSE OFFICE BUILDING COMMISSION.—The Architect

of the Capitol shall carry out this section under the direction

of the House Office Building Commission.

(3) PROCEDURES.—Notwithstanding any other provision of

law, the disposal under paragraph (1) shall be made in accordance with such procedures as the Architect of the Capitol

determines appropriate.

(4) SENSE OF CONGRESS.—It is the sense of Congress that

the child care center of the House of Representatives should

remain in operation during the implementation of this section.

(5) TERMS AND CONDITIONS.—The deed of conveyance for

the property to be disposed of under paragraph (1) shall contain

such terms and conditions as the Architect of the Capitol determines are necessary to protect the interests of the United

States.

(6) DEPOSIT OF PROCEEDS.—All proceeds from the disposal

under paragraph (1) shall be deposited in the account established by subsection (b).

(7) ADVERTISING AND MARKETING.—The Architect of the

Capitol shall begin advertising and marketing the property

to be disposed of under paragraph (1) not later than 30 days

after the date of the enactment of this Act.

(8) LOCAL ZONING AND OCCUPANCY REQUIREMENTS.—Until

such date as the purchaser of the property to be disposed

of under paragraph (1) takes full occupancy of such property,

such property and the tenants of such property shall be deemed

to be in compliance with all applicable zoning and occupancy

requirements of the District of Columbia.

(9) PROPERTY DESCRIPTION.—The parcel of real property

referred to in paragraph (1) is the approximately 31,725 square

feet of land located at 501 First Street, SE., on square 736

S, Lot 801 (formerly part of Reservation 17) in the District

of Columbia. Such parcel is bounded by E Street, SE., to the

north, First Street, SE., to the east, New Jersey Avenue, SE.,

to the west, and Garfield Park to the south.

(b) SEPARATE ACCOUNT IN THE TREASURY.—

(1) ESTABLISHMENT.—There is established in the Treasury

of the United States a separate account which shall consist

of amounts deposited into the account by the Architect of the

Capitol under subsection (a).

(2) AVAILABILITY OF FUNDS.—Funds in the account established by paragraph (1) shall be available, in such amounts

as are specified in appropriations Acts, to the Architect of

the Capitol for—

(A) payment of expenses associated with relocating

the tenants of the property to be disposed of under subsection (a)(1);

(B) payment of expenses associated with renovating

facilities under the jurisdiction of the Architect for the

purpose of accommodating such tenants; and
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(C) reimbursement of expenses incurred for advertising

and marketing activities related to the disposal under subsection (a)(1) in a total amount of not to exceed $75,000.

Funds made available under this paragraph shall not be subject

to any fiscal year limitation.

(3) REPORTING OF TRANSACTIONS.—Receipts, obligations,

and expenditures of funds in the account established by paragraph (1) shall be reported in annual estimates submitted

to Congress by the Architect of the Capitol for the operation

and maintenance of the Capitol Buildings and Grounds.

(4) TERMINATION OF ACCOUNT.—Not later than 2 years

after the date of settlement on the property to be disposed

of under subsection (a)(1), the Architect of the Capitol shall

terminate the account established by paragraph (1) and all

amounts remaining in the account shall be deposited into the

general fund of the Treasury of the United States and credited

as miscellaneous receipts.

(c) AUTHORITY TO FURNISH STEAM AND CHILLED WATER.—

(1) IN GENERAL.—The Architect of the Capitol is authorized

to furnish steam and chilled water from the Capitol Power

Plant to the owner of the property to be disposed of under

subsection (a)(1) if the owner agrees to pay for such steam

and chilled water at market rates, as determined by the

Architect of the Capitol.

(2) AUTHORITY LIMITED TO EXISTING FACILITIES.—The

Architect of the Capitol may furnish steam and chilled water

under paragraph (1) only with respect to facilities which, on

the date of the enactment of this Act, are located on the

property to be disposed of under subsection (a)(1).

(3) PROCEEDS.—All proceeds from the sale of steam and

chilled water under paragraph (1) shall be deposited into the

general fund of the Treasury of the United States and credited

as miscellaneous receipts.

SEC. 122. Notwithstanding any other provision of this title

of this Act except section 106, such sums as necessary are hereby

appropriated for all projects and activities funded under the account

heading ‘‘Office for Civil Rights’’ under the Office of the Secretary

in the Department of Health and Human Services at a rate for

operations not to exceed an annual rate for new obligational authority of $16,153,000 for general funds together with not to exceed

an annual rate for new obligational authority of $3,314,000 to

be transferred and expended as authorized by section 201(g)(1)

of the Social Security Act from the Hospital Insurance Trust Fund

and the Supplemental Medical Insurance Trust Fund.

SEC. 123. Activities necessary to effect the following program

eliminations and transfers of selected functions are funded under

the terms and conditions and at a rate of operations, notwithstanding any other provision of this title of this Act, provided for in

the conference report and joint explanatory statement of the

Committee of Conference (House Report 104–402) on the Department of the Interior and Related Agencies Appropriations Act,

1996 (H.R. 1977), as passed by the House of Representatives on

December 13, 1995:

All projects and activities under the account heading ‘‘Public Development’’ under the Pennsylvania Avenue Development

Corporation;
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All projects and activities under the account heading

‘‘Mines and Minerals’’ under the Bureau of Mines in the Department of the Interior;

All activities related to the transfer of functions from the

Bureau of Mines under the account heading ‘‘Management of

Lands and Resources’’ under the Bureau of Land Management

in the Department of the Interior;

All activities related to the transfers of functions from

the Bureau of Mines and from the National Biological Service

under the account heading ‘‘Surveys, Investigations, and

Research’’ under the United States Geological Survey in the

Department of the Interior; and

All activities related to the transfer of functions from the

Bureau of Mines under the account heading ‘‘Fossil Energy

Research and Development’’ in the Department of Energy.

SEC. 124. Notwithstanding any other provision of this title

of this Act, the appropriations and funds made available and authority granted pursuant to the preceding section shall be available

until (a) enactment into law of an appropriation for any project

or activity provided for in that section, or (b) the enactment into

law of the applicable appropriations Act without any provision

for such project or activity, or (c) September 30, 1996, whichever

first occurs.

SEC. 125. Notwithstanding any other provision of this title

of this Act, except section 106, such amounts as may be necessary

are hereby appropriated to effect the sale of Weeks Island oil

from the Strategic Petroleum Reserve under the terms and conditions and at a rate of operations provided for in the conference

report and joint explanatory statement of the Committee of Conference (House Report 104–402) on the Department of the Interior

and Related Agencies Appropriations Act, 1996 (H.R. 1977), as

passed by the House of Representatives on December 13, 1995.

SEC. 126. Notwithstanding any other provision of this title

of this Act, such amounts as may be necessary are hereby appropriated under the authority and conditions provided in the

applicable appropriations Act for the fiscal year 1995 for continuing,

at a rate for operations provided for in the conference report and

joint explanatory statement of the Committee of Conference (House

Report 104–402) on the Department of the Interior and Related

Agencies Appropriations Act, 1996 (H.R. 1977), as passed by the

House of Representatives on December 13, 1995, for the following

projects or activities including the costs of direct loans and loan

guarantees (not otherwise specifically provided for in this Act) which

are conducted in the fiscal year 1995: all projects or activities

of the Indian Health Services, Indian Health Service Facilities,

Bureau of Indian Affairs, National Park Service, notwithstanding

any other provision of law, the United States Fish and Wildlife

Service, notwithstanding any other provision of law, and the Forest

Service, notwithstanding any other provision of law: Provided, That

appropriations and funds made available and authority granted

pursuant to this section shall be available until (a) enactment

into law of an appropriation for any project or activity provided

for in this section, or (b) the enactment into law of the applicable

appropriations Act without any provision for such project or activity,

or (c) March 15, 1996, whichever first occurs.

SEC. 127. Notwithstanding any other provision of this title

of this Act except section 106, projects and activities under the
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account heading ‘‘Salaries and expenses’’ under the National Labor

Relations Board shall be subject to the provisions of section 112

of Public law 104–56.

SEC. 128. None of the funds made available by Public Law

104–91 may be used for—

(1) the creation of a human embryo or embryos for research

purposes; or

(2) research in which a human embryo or embryos are

destroyed, discarded, or knowingly subjected to risk of injury

or death greater than that allowed for research on fetuses

in utero under 45 CFR 46.208(a)(2) and 42 U.S.C. 289g(b).

For purposes of this section, the phrase ‘‘human embryo or embryos’’

shall include any organism, not protected as a human subject under

45 CFR 46 as of the date of enactment of this Act, that is derived

by fertilization, parthenogenesis, cloning, or any other means from

one or more human gametes.

SEC. 129.TECHNICAL AMENDMENT TO PROHIBITION OF GRANTS

FOR 501(c)(4) ORGANIZATIONS ENGAGING IN LOBBYING ACTIVITIES.

(a) IN GENERAL.—Section 18 of the Lobbying Disclosure Act

of 1995 is amended by striking ‘‘award, grant, contract, loan, or

any other form’’ and inserting ‘‘award, grant, or loan’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect as if included in the Lobbying Disclosure Act

of 1995 on the date of the enactment of such Act.

SEC. 130. No funds appropriated under this or any other Act

shall be used to review or modify sourcing areas previously approved

under section 490(c)(3) of the Forest Resources Conservation and

Shortage Relief Act of 1990 (Public Law 101–382) or to enforce

or implement Federal regulations 36 CFR part 223 promulgated

on September 8, 1995. The regulations and interim rules in effect

prior to September 8, 1995 (36 CFR 223.48, 36 CFR 223.87, 36

CFR 223 Subpart D, 36 CFR 223 Subpart F, and 36 CFR 261.6)

shall remain in effect. The Secretary of Agriculture or the Secretary

of the Interior shall not adopt any policies concerning Public Law

101–382 or existing regulations that would restrain domestic

transportation or processing of timber from private lands or impose

additional accountability requirements on any timber. The Secretary

of Commerce shall extend until September 30, 1996, the order

issued under section 491(b)(2)(A) of Public Law 101–382 and shall

issue an order under section 491(b)(2)(B) of such law that will

be effective October 1, 1996.

SEC. 131. Notwithstanding any other provision of this Act,

an additional $2,000,000 is hereby appropriated for the National

Park Service, Park Service Construction for repair of flood damage

to the Chesapeake and Ohio Canal National Historical Park.

TITLE II

DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE

JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS

SEC. 201. (a) Such amounts as may be necessary under the

authority and conditions provided in the applicable appropriations

Act for the fiscal year 1995 for projects or activities, except for

those projects and activities provided for in Public Law 104–91

and Public Law 104–92, including the costs of direct loans and

loan guarantees (not otherwise specifically provided for in this
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Act) at a rate for operations provided for in the conference report

and joint explanatory statement of the Committee of Conference,

House Report 104–378, on the Departments of Commerce, Justice,

and State, the Judiciary, and Related Agencies Appropriations Act,

1996 (H.R. 2076), as passed the House of Representatives on December 6, 1995, notwithstanding section 15 of the State Department

Basic Authorities Act of 1956, section 701 of the United States

Information and Educational Exchange Act of 1948, section 313

of the Foreign Relations Authorization Act, Fiscal Years 1994 and

1995 (Public Law 103–236), and section 53 of the Arms Control

and Disarmament Act: Provided, That, notwithstanding any other

provision of this title of this Act, the rate for operations only

for program administration and the continuation of grants awarded

in fiscal year 1995 and prior years of the Advanced Technology

Program of the National Institute of Standards and Technology,

and the rate for operations for the Ounce of Prevention Council,

Drug Courts, Global Learning and Observations to Benefit the

Environment, and for the Cops on the Beat Program may be

increased up to a level of 75 per centum of the final fiscal year

1995 appropriated amount: Provided further, That, under the previous proviso, no contracts or grants shall be awarded in excess

of an amount that bears the same ratio to the rate for operations

provided by the previous proviso as the number of days covered

by this Act bears to 366: Provided further, That any costs incurred

by a Department or agency funded under this subsection resulting

from personnel actions taken in response to funding reductions

resulting from this Act shall be absorbed within the total budgetary

resources available to such Department or agency: Provided further,

That the authority to transfer funds between appropriations

accounts as may be necessary to carry out the preceding proviso

is provided in addition to authorities provided elsewhere in this

subsection: Provided further, That funds to carry out the preceding

two provisos shall not be available for obligation or expenditure

except in compliance with established reprogramming procedures:

Provided further, That, notwithstanding any other provision of this

title of this Act, the amount of funds obligated or expended by

the Legal Services Corporation shall not exceed an amount that

bears the same ratio to the rate for operations available to the

Legal Services Corporation as the number of days covered by this

Act bears to 366: Provided further, That, notwithstanding any other

provision of this title of this Act, funding provided for Violent

Offender Incarceration and Truth in Sentencing Incentive Grants,

with the exception of funds available to States for incarceration

of criminal aliens and the Cooperative Agreement Program, shall

be withheld, pending enactment of revisions to subtitle A of title

II of the Violent Crime Control and Law Enforcement Act of 1994,

so as not to impinge upon final funding prerogatives: Provided

further, That, notwithstanding any other provision of this title

of this Act, sufficient funds shall be provided to continue the Office

of Inspector General of the United States Information Agency, to

be derived from funds otherwise available to the Office of Inspector

General of the Department of State.
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DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND

URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES

APPROPRIATIONS

(b) Such amounts as may be necessary under the authority

and conditions provided in the applicable appropriations Act for

the fiscal year 1995 for continuing projects or activities, except

for those projects and activities provided for in Public Law 104–

91 and Public Law 104–92, including the costs of direct loans

and loan guarantees (not otherwise specifically provided for in

this Act) at a rate for operations provided for in the conference

report and joint explanatory statement of the Committee of Conference, House Report 104–384, on the Departments of Veterans

Affairs and Housing and Urban Development, and Independent

Agencies Appropriations Act, 1996 (H.R. 2099), as passed the House

of Representatives on December 7, 1995: Provided, That Senate

amendment 63 shall be disposed of in the manner passed by the

House on December 7, 1995, as if enacted into law: Provided further,

That, notwithstanding any other provision of this title of this Act,

the rate for operations for the Corporation for National and Community Service, the Community Development Financial Institutions

Fund, and the Office of Consumer Affairs may be increased up

to a level of 75 per centum of the fiscal year 1995 level: Provided

further, That, under the previous proviso, no new contracts or

grants shall be awarded in excess of an amount that bears the

same ratio to the rate for operations provided by the previous

proviso as the number of days covered by this Act bears to 366:

Provided further, That the penultimate proviso under the heading

‘‘General Operating Expenses’’ and sections 107 and 109 under

the heading ‘‘Administrative Provisions’’ in the Department of Veterans Affairs are effective to the extent and in the manner, notwithstanding any other provision of this Act, provided for in the conference report and joint explanatory statement of the Committee

of Conference (House Report 104–384) on the Departments of Veterans Affairs and Housing and Urban Development, and Independent

Agencies Appropriations Act, 1996 (H.R. 2099), as passed by the

House of Representatives on December 7, 1995.

SEC. 202. Unless otherwise provided for in this title of this

Act or in the applicable appropriations Act, appropriations and

funds made available and authority granted pursuant to this title

of this Act shall be available until (a) the enactment into law

of an appropriation for any project or activity provided for in this

title of this Act, or (b) the enactment into law of the applicable

appropriations Act by both Houses without any provision for such

project or activity, or (c) March 15, 1996, whichever first occurs.

SEC. 203. Appropriations made and authority granted pursuant

to this title of this Act shall cover all obligations or expenditures

incurred for any program, project, or activity during the period

for which funds or authority for such project or activity are available

under this title of this Act.

SEC. 204. Expenditures made pursuant to this title of this

Act shall be charged to the applicable appropriation, fund, or

authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law.

SEC. 205. Appropriations made by section 201 shall be available

to the extent and in the manner which would be provided by

the pertinent appropriations Act.
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SEC. 206. No provision in the appropriations Act for the fiscal

year 1996 referred to in section 201 of this Act that makes the

availability of any appropriation provided therein dependent upon

the enactment of additional authorizing or other legislation shall

be effective before the date set forth in section 202(c) of this Act.

SEC. 207. Appropriations and funds made available by or

authority granted pursuant to this title of this Act may be used

without regard to the time limitations for submission and approval

of apportionments set forth in section 1513 of title 31, United

States Code, but nothing herein shall be construed to waive any

other provision of law governing the apportionment of funds.

SEC. 208. Public Law 104–92 is amended by repealing title

II and by inserting in section 101(a) after the paragraph ending

with ‘‘under the Railroad Retirement Board;’’ the following paragraphs: ‘‘All activities, including administrative and beneficiary

travel expenses of all veterans benefit programs, necessary for

the provision of veterans benefits funded in the Department of

Veterans Affairs under the headings ‘Compensation and pensions’,

‘Readjustment benefits’, ‘Veterans insurance and indemnities’,

‘Guaranty and indemnity program account’, ‘Loan guaranty program

account’, ‘Direct loan program account’, ‘Education loan fund program account’, ‘Vocational rehabilitation loans program account’,

‘Native American veteran housing loan program account’, and

‘Administrative provisions, sec. 107’ to the extent and in the manner

and at the rate for operations, notwithstanding any other provision

of this joint resolution, provided for in the conference report and

joint explanatory statement of the Committee of Conference (House

Report 104–384) on the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (H.R. 2099), as passed by the House of Representatives on December 7, 1995;

‘‘All payments to contractors of the Veterans Health Administration of the Department of Veterans Affairs for goods and services

that directly relate to patient health and safety to the extent

and in the manner and at the rate for operations, notwithstanding

any other provision of this joint resolution, provided for in the

conference report and joint explanatory statement of the Committee

of Conference (House Report 104–384) on the Departments of Veterans Affairs and Housing and Urban Development, and Independent

Agencies Appropriations Act, 1996 (H.R. 2099), as passed by the

House of Representatives on December 7, 1995;’’.

SEC. 209. Notwithstanding any other provision of this title

of this Act, except section 202, the amount made available to

the Securities and Exchange Commission, under the heading Salaries and Expenses, shall include, in addition to direct appropriations, the amount it collects under the fee rate and offsetting

collection authority contained in Public Law 103–352, which fee

rate and offsetting collection authority shall remain in effect during

the period of this title of this Act.

SEC. 210. Notwithstanding any other provision of this title

of this Act, except section 202, funds for the Environmental Protection Agency shall be made available in the appropriation accounts

which are provided in H.R. 2099 as reported on September 13,

1995.

SEC. 211. Public Law 104–91 is amended by inserting after

the words ‘‘the protection of the Federal judiciary’’ in section 101(a),

the following: ‘‘to the extent and in the manner and’’, and by
H. R. 2880—13

inserting at the end of the paragraph containing those words,

but before the semicolon, the following: ‘‘: Provided, That, with

the exception of section 114, the General Provisions for the Department of Justice included in title I of the aforementioned conference

report are hereby enacted into law’’.

SEC. 212. Notwithstanding any other provision of law or regulation, the National Aeronautics and Space Administration shall convey, without reimbursement, to the State of Mississippi, all rights,

title and interest of the United States in the property known

as the Yellow Creek Facility and consisting of approximately 1,200

acres near the city of Iuka, Mississippi, including all improvements

thereon and also including any personal property owned by NASA

that is currently located on-site and which the State of Mississippi

requires to facilitate the transfer: Provided, That appropriated funds

shall be used to effect this conveyance: Provided further, That

$10,000,000 in appropriated funds otherwise available to the

National Aeronautics and Space Administration shall be transferred

to the State of Mississippi to be used in the transition of the

facility: Provided further, That each Federal agency with prior

contact to the site shall remain responsible for any and all environmental remediation made necessary as a result of its activities

on the site: Provided further, That in consideration of this conveyance, the National Aeronautics and Space Administration may

require such other terms and conditions as the Administrator deems

appropriate to protect the interests of the United States: Provided

further, That the conveyance of the site and the transfer of the

funds to the State of Mississippi shall occur not later than thirty

days from the date of enactment of this Act.

SEC. 213. Notwithstanding any other provision of this title

of this Act except section 202, projects and activities under the

account heading ‘‘Council on Environmental Quality and Office

of Environmental Quality’’ shall be subject to the provisions of

section 112 of Public Law 104–56.

SEC. 214. Notwithstanding any other provision of this title

of this Act except section 202, whenever the rate for operations

for any continuing project or activity provided by section 201 for

which there is a budget request would result in a furlough of

Government employees, that rate for operations may be increased

to the minimum level that would enable the furlough to be avoided.

No new contracts or grants shall be awarded in excess of an amount

that bears the same ratio to the rate for operations provided by

this section as the number of days covered by this Act bears to

366: Provided, That the first sentence of section 214 shall not

apply except to furloughs that exceed one workday per pay period

for the affected workforce during the period of January 26, 1996

through March 15, 1996.

TITLE III

FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED

PROGRAMS APPROPRIATIONS

SEC. 301. Such amounts as may be necessary for programs,

projects, or activities provided for in the Foreign Operations, Export

Financing, and Related Programs Appropriations Act, 1996 (H.R.

1868), at a rate for operations and to the extent and in the manner

provided for in the conference report and joint explanatory state-
H. R. 2880—14

ment of the Committee of Conference (House Report 104–295) as

passed by the House of Representatives on October 31, 1995, as

if enacted into law, notwithstanding any other provision of this

title of this Act: Provided, That Senate amendment numbered 115

shall be disposed of as follows, as if enacted into law:

In lieu of the matter proposed by the Senate in amendment

numbered 115, insert the following:

‘‘AUTHORIZATION OF POPULATION PLANNING

‘‘SEC. 518A. Notwithstanding section 526 of this Act, none

of the funds made available in this Act for population planning

activities or other population assistance pursuant to section 104(b)

of the Foreign Assistance Act or any other provision of law, or

funds made available in title IV of this Act as a contribution

to the United Nations Population Fund (UNFPA) may be obligated

or expended prior to July 1, 1996, unless such funding is expressly

authorized by law: Provided, That if such funds are not authorized

by law prior to July 1, 1996, funds appropriated in title II of

this Act for population planning activities or other population assistance may be made available for obligation and expenditure in

an amount not to exceed 65 percent of the total amount appropriated

or otherwise made available by Public Law 103–306 and Public

Law 104–19 for such activities for fiscal year 1995, and funds

appropriated in title IV of this Act as a contribution to the United

Nations Population Fund (UNFPA) may be made available for

obligation and expenditure in an amount not to exceed 65 percent

of the total amount appropriated or otherwise made available by

Public Law 103–306 and Public Law 104–19 for a contribution

to UNFPA for fiscal year 1995: Provided further, That, pursuant

to the previous proviso, such funds may be apportioned only on

a monthly basis, beginning July 1, 1996 and ending September

30, 1997, and such monthly apportionments may not exceed 6.67

percent of the total available for such activities: Provided further,

That notwithstanding any other provision of this Act, funds appropriated by this Act for the United Nations Population Fund

(UNFPA) shall remain available for obligation until September

30, 1997.’’.

SEC. 302. Unless otherwise provided for in this title of this

Act or in the applicable appropriations Act, appropriations and

funds made available and authority granted pursuant to this title

of this Act shall be available until (a) the enactment into law

of an appropriation for any project or activity provided for in this

title of this Act, or (b) the enactment into law of the applicable

appropriations Act by both Houses without any provision for such

project or activity, or (c) September 30, 1996, whichever first occurs.

SEC. 303. Appropriations made and authority granted pursuant

to this title of this Act shall cover all obligations or expenditures

incurred for any program, project, or activity during the period

for which funds or authority for such project or activity are available

under this title of this Act.

SEC. 304. Expenditures made pursuant to this title of this

Act shall be charged to the applicable appropriation, fund, or

authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law.
H. R. 2880—15

TITLE IV

HOUSING AND URBAN DEVELOPMENT

SEC. 401. During fiscal year 1996, the Secretary of Housing

and Urban Development may manage and dispose of multifamily

properties owned by the Secretary, including the provision for

grants from the General Insurance Fund (12 U.S.C. 1735c) for

the necessary costs of rehabilitation and other related development

costs and multifamily mortgages held by the Secretary without

regard to any other provision of law.

PUBLIC AND ASSISTED HOUSING RENTS, INCOME ADJUSTMENTS, AND

PREFERENCES

SEC. 402. (a) MINIMUM RENTS.—Notwithstanding sections 3(a)

and 8(o)(2) of the United States Housing Act of 1937, as amended,

effective for fiscal year 1996 and no later than October 30, 1995—

(1) public housing agencies shall require each family who

is assisted under the certificate or moderate rehabilitation program under section 8 of such Act to pay a minimum monthly

rent of not less than $25, and may require a minimum monthly

rent of up to $50;

(2) public housing agencies shall reduce the monthly assistance payment on behalf of each family who is assisted under

the voucher program under section 8 of such Act so that the

family pays a minimum monthly rent of not less than $25,

and may require a minimum monthly rent of up to $50; (3) with respect to housing assisted under other programs

for rental assistance under section 8 of such Act, the Secretary

shall require each family who is assisted under such program

to pay a minimum monthly rent of not less than $25 for

the unit, and may require a minimum monthly rent of up

to $50; and

(4) public housing agencies shall require each family who is assisted under the public housing program (including public

housing for Indian families) of such Act to pay a minimum

monthly rent of not less than $25, and may require a minimum

monthly rent of up to $50.

(b) ESTABLISHMENT OF CEILING RENTS.— (1) Section 3(a)(2) of the United States Housing Act of

1937 is amended to read as follows:

‘‘(2) Notwithstanding paragraph (1), a public housing

agency may— ‘‘(A) adopt ceiling rents that reflect the reasonable

market value of the housing, but that are not less than

the monthly costs—

‘‘(i) to operate the housing of the agency; and

‘‘(ii) to make a deposit to a replacement reserve

(in the sole discretion of the public housing agency);

and

‘‘(B) allow families to pay ceiling rents referred to

in subparagraph (A), unless, with respect to any family,

the ceiling rent established under this paragraph would

exceed the amount payable as rent by that family under

paragraph (1).’’.

(2) REGULATIONS.—
H. R. 2880—16

(A) IN GENERAL.—The Secretary shall, by regulation,

after notice and an opportunity for public comment, establish such requirements as may be necessary to carry out

section 3(a)(2)(A) of the United States Housing Act of 1937,

as amended by paragraph (1).

(B) TRANSITION RULE.—Prior to the issuance of final

regulations under paragraph (1), a public housing agency

may implement ceiling rents, which shall be not less than

the monthly costs to operate the housing of the agency

and—

(i) determined in accordance with section 3(a)(2)(A)

of the United States Housing Act of 1937, as that

section existed on the day before enactment of this

Act;

(ii) equal to the 95th percentile of the rent paid

for a unit of comparable size by tenants in the same

public housing project or a group of comparable projects

totaling 50 units or more; or

(iii) equal to the fair market rent for the area

in which the unit is located.

(c) DEFINITION OF ADJUSTED INCOME.—Section 3(b)(5) of the

United States Housing Act of 1937 is amended—

(1) at the end of subparagraph (F), by striking ‘‘and’’;

(2) at the end of subparagraph (G), by striking the period

and inserting ‘‘; and’’; and

(3) by inserting after subparagraph (G) the following:

‘‘(H) for public housing, any other adjustments to

earned income established by the public housing agency.

If a public housing agency adopts other adjustments to

income pursuant to subparagraph (H), the Secretary shall

not take into account any reduction of or increase in the

public housing agency’s per unit dwelling rental income

resulting from those adjustments when calculating the contributions under section 9 for the public housing agency

for the operation of the public housing.’’. (d) REPEAL OF FEDERAL PREFERENCES.— (1) PUBLIC HOUSING.—Section 6(c)(4)(A) of the United

States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A)) is

amended to read as follows:

‘‘(A) the establishment, after public notice and an

opportunity for public comment, of a written system of

preferences for admission to public housing, if any, that

is not inconsistent with the comprehensive housing affordability strategy under title I of the Cranston-Gonzalez

National Affordable Housing Act;’’.

(2) SECTION 8 EXISTING AND MODERATE REHABILITATION.—

Section 8(d)(1)(A) of the United States Housing Act of 1937

(42 U.S.C. 1437f(d)(1)(A)) is amended to read as follows:

‘‘(A) the selection of tenants shall be the function of

the owner, subject to the provisions of the annual contributions contract between the Secretary and the agency, except

that for the certificate and moderate rehabilitation programs only, for the purpose of selecting families to be

assisted, the public housing agency may establish, after

public notice and an opportunity for public comment, a

written system of preferences for selection that is not

inconsistent with the comprehensive housing affordability
H. R. 2880—17

strategy under title I of the Cranston-Gonzalez National

Affordable Housing Act;’’.

(3) SECTION 8 VOUCHER PROGRAM.—Section 8(o)(3)(B) of

the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(3)(B))

is amended to read as follows:

‘‘(B) For the purpose of selecting families to be assisted

under this subsection, the public housing agency may establish, after public notice and an opportunity for public comment, a written system of preferences for selection that

is not inconsistent with the comprehensive housing affordability strategy under title I of the Cranston-Gonzalez

National Affordable Housing Act.’’.

(4) SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL

REHABILITATION.—

(A) REPEAL.—Section 545(c) of the Cranston-Gonzalez

National Affordable Housing Act (42 U.S.C. 1437f note)

is amended to read as follows:

‘‘(c) [Reserved.]’’.

(B) PROHIBITION.—Notwithstanding any other provision of law, no Federal tenant selection preferences under

the United States Housing Act of 1937 shall apply with

respect to—

(i) housing constructed or substantially rehabilitated pursuant to assistance provided under section

8(b)(2) of the United States Housing Act of 1937 (as

such section existed on the day before October 1, 1983);

or

(ii) projects financed under section 202 of the Hous- ing Act of 1959 (as such section existed on the day

before the date of enactment of the Cranston-Gonzalez

National Affordable Housing Act). (5) RENT SUPPLEMENTS.—Section 101(k) of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s(k)) is

amended to read as follows:

‘‘(k) [Reserved.]’’.

(6) CONFORMING AMENDMENTS.— (A) UNITED STATES HOUSING ACT OF 1937.—The United

States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is

amended—

(i) in section 6(o), by striking ‘‘preference rules

specified in’’ and inserting ‘‘written system of preferences for selection established pursuant to’’;

(ii) in the second sentence of section 7(a)(2), by

striking ‘‘according to the preferences for occupancy

under’’ and inserting ‘‘in accordance with the written

system of preferences for selection established pursuant to’’;

(iii) in section 8(d)(2)(A), by striking the last sentence;

(iv) in section 8(d)(2)(H), by striking ‘‘Notwithstanding subsection (d)(1)(A)(i), an’’ and inserting ‘‘An’’;

(v) in section 16(c), in the second sentence, by

striking ‘‘the system of preferences established by the

agency pursuant to section 6(c)(4)(A)(ii)’’ and inserting

‘‘the written system of preferences for selection established by the public housing agency pursuant to section

6(c)(4)(A)’’; and
H. R. 2880—18

(vi) in section 24(e)—

(I) by striking ‘‘(e) EXCEPTIONS’’ and all that

follows through ‘‘The Secretary may’’ and inserting

the following:

‘‘(e) EXCEPTION TO GENERAL PROGRAM REQUIREMENTS.—The

Secretary may’’; and

(II) by striking paragraph (2).

(B) CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT.—Section 522(f)(6)(B) of the Cranston-Gonzalez

National Affordable Housing Act (42 U.S.C. 12704 et seq.)

is amended by striking ‘‘any preferences for such assistance

under section 8(d)(1)(A)(i)’’ and inserting ‘‘the written system of preferences for selection established pursuant to

section 8(d)(1)(A)’’.

(C) HOUSING AND COMMUNITY DEVELOPMENT ACT OF

1992.—Section 655 of the Housing and Community Development Act of 1992 (42 U.S.C. 13615) is amended by striking

‘‘the preferences’’ and all that follows up to the period

at the end and inserting ‘‘any preferences’’.

(D) REFERENCES IN OTHER LAW.—Any reference in any

Federal law other than any provision of any law amended

by paragraphs (1) through (5) of this subsection to the

preferences for assistance under section 6(c)(4)(A)(i),

8(d)(1)(A)(i), or 8(o)(3)(B) of the United States Housing

Act of 1937 (as such sections existed on the day before

the date of enactment of this Act) shall be considered

to refer to the written system of preferences for selection

established pursuant to section 6(c)(4)(A), 8(d)(1)(A), or

8(o)(3)(B), respectively, of the United States Housing Act

of 1937, as amended by this section. (e) APPLICABILITY.—In accordance with section 201(b)(2) of the

United States Housing Act of 1937, the amendments made by

subsections (a), (b), (c), (d), and (f) of this section shall also apply

to public housing developed or operated pursuant to a contract

between the Secretary of Housing and Urban Development and

an Indian housing authority. (f) This section shall be effective upon the enactment of this

Act and only for fiscal year 1996.

SECTION 8 FAIR MARKET RENTALS, ADMINISTRATIVE FEES, AND DELAY

IN REISSUANCE

SEC. 403. (a) FAIR MARKET RENTALS.—The Secretary shall establish fair market rentals for purposes of section 8(c)(1) of the

United States Housing Act of 1937, as amended, that shall be

effective for fiscal year 1996 and shall be based on the 40th percentile rent of rental distributions of standard quality rental housing

units. In establishing such fair market rentals, the Secretary shall

consider only the rents for dwelling units occupied by recent movers

and may not consider the rents for public housing dwelling units

or newly constructed rental dwelling units.

(b) ADMINISTRATIVE FEES.—Notwithstanding sections 8(q) (1)

and (4) of the United States Housing Act of 1937, for fiscal year

1996, the fee for each month for which a dwelling unit is covered

by an assistance contract under the certificate, voucher, or moderate

rehabilitation program under section 8 of such Act shall be equal

to the monthly fee payable for fiscal year 1995: Provided, That
H. R. 2880—19

this subsection shall be applicable to all amounts made available

for such fees during fiscal year 1996, as if in effect on October

1, 1995.

(c) DELAY REISSUANCE OF VOUCHERS AND CERTIFICATES.—Notwithstanding any other provision of law, a public housing agency

administering certificate or voucher assistance provided under subsection (b) or (o) of section 8 of the United States Housing Act

of 1937, as amended, shall delay for 3 months, the use of any

amounts of such assistance (or the certificate or voucher representing assistance amounts) made available by the termination during

fiscal year 1996 of such assistance on behalf of any family for

any reason, but not later than October 1, 1996; with the exception

of any certificates assigned or committed to project-based assistance

as permitted otherwise by the Act, accomplished prior to the effective date of this Act.

REPEAL OF PROVISIONS REGARDING INCOME DISREGARDS

SEC. 404. (a) MAXIMUM ANNUAL LIMITATION ON RENT

INCREASES RESULTING FROM EMPLOYMENT.—Section 957 of the

Cranston-Gonzalez National Affordable Housing Act is hereby

repealed, retroactive to November 28, 1990, and shall be of no

effect.

(b) ECONOMIC INDEPENDENCE.—Section 923 of the Housing and Community Development Act of 1992 is hereby repealed, retroactive

to October 28, 1992, and shall be of no effect.

SECTION 8 CONTRACT RENEWALS

SEC. 405. (a) For fiscal year 1996 and henceforth, the Secretary of Housing and Urban Development may use amounts available

for the renewal of assistance under section 8 of the United States

Housing Act of 1937, upon termination or expiration of a contract

for assistance under section 8 of such Act of 1937 (other than

a contract for tenant-based assistance and notwithstanding section

8(v) of such Act for loan management assistance), to provide assistance under section 8 of such Act, subject to the Section 8 Existing

Fair Market Rents, for the eligible families assisted under the

contracts at expiration or termination, which assistance shall be

in accordance with terms and conditions prescribed by the Secretary. (b) Notwithstanding subsection (a) and except for projects assisted under section 8(e)(2) of the United States Housing Act

of 1937 (as it existed immediately prior to October 1, 1991), at

the request of the owner, the Secretary shall renew for a period

of one year contracts for assistance under section 8 that expire

or terminate during fiscal year 1996 at the current rent levels. (c) Section 8(v) of the United States Housing Act of 1937 is amended to read as follows: ‘‘The Secretary may extend expiring

contracts entered into under this section for project-based loan

management assistance to the extent necessary to prevent displacement of low-income families receiving such assistance as of September 30, 1996.’’.

(d) Section 236(f) of the National Housing Act (12 U.S.C. 1715z–

1(f)) is amended:

(1) by striking the second sentence in paragraph (1) and

inserting in lieu thereof the following: ‘‘The rental charge for

each dwelling unit shall be at the basic rental charge or such
H. R. 2880—20

greater amount, not exceeding the lower of (i) the fair market

rental charge determined pursuant to this paragraph, or (ii)

the fair market rental established under section 8(c) of the

United States Housing Act of 1937 for the market area in

which the housing is located, as represents 30 per centum

of the tenant’s adjusted income.’’; and

(2) by striking paragraph (6).

EXTENSION OF HOME EQUITY CONVERSION MORTGAGE PROGRAM

SEC. 406. Section 255(g) of the National Housing Act (12 U.S.C.

1715z–20(g)) is amended—

(1) in the first sentence, by striking ‘‘September 30, 1995’’

and inserting ‘‘September 30, 1996’’; and

(2) in the second sentence, by striking ‘‘25,000’’ and inserting ‘‘30,000’’.

FHA SINGLE-FAMILY ASSIGNMENT PROGRAM REFORM

SEC. 407. (a) FORECLOSURE AVOIDANCE.—Except as provided

in subsection (e), the last sentence of section 204(a) of the National

Housing Act (12 U.S.C. 1710(a)) is amended by inserting before

the period the following: ‘‘: And provided further, That the Secretary

may pay insurance benefits to the mortgagee to recompense the

mortgagee for its actions to provide an alternative to the foreclosure

of a mortgage that is in default, which actions may include special

foreclosure, loan modification, and deeds in lieu of foreclosure, all

upon terms and conditions as the mortgagee shall determine in

the mortgagee’s sole discretion, within guidelines provided by the

Secretary, but which may not include assignment of a mortgage

to the Secretary: And provided further, That for purposes of the

preceding proviso, no action authorized by the Secretary and no

action taken, nor any failure to act, by the Secretary or the mortgagee shall be subject to judicial review.’’. (b) AUTHORITY TO ASSIST MORTGAGORS IN DEFAULT.—Except

as provided in subsection (e), section 230 of the National Housing

Act (12 U.S.C. 1715u) is amended to read as follows:

‘‘AUTHORITY TO ASSIST MORTGAGORS IN DEFAULT

‘‘SEC. 230. (a) PAYMENT OF PARTIAL CLAIM.—The Secretary

may establish a program for payment of a partial claim to a mortgagee that agrees to apply the claim amount to payment of a mortgage

on a 1- to 4-family residence that is in default. Any such payment

under such program to the mortgagee shall be made in the sole

discretion of the Secretary and on terms and conditions acceptable

to the Secretary, except that—

‘‘(1) the amount of the payment shall be in an amount

determined by the Secretary, not to exceed an amount equivalent to 12 of the monthly mortgage payments and any costs

related to the default that are approved by the Secretary;

and

‘‘(2) the mortgagor shall agree to repay the amount of

the insurance claim to the Secretary upon terms and conditions

acceptable to the Secretary.

The Secretary may pay the mortgagee, from the appropriate insurance fund, in connection with any activities that the mortgagee
H. R. 2880—21

is required to undertake concerning repayment by the mortgagor

of the amount owed to the Secretary.

‘‘(b) ASSIGNMENT.—

‘‘(1) PROGRAM AUTHORITY.—The Secretary may establish

a program for assignment to the Secretary, upon request of

the mortgagee, of a mortgage on a 1- to 4-family residence

insured under this Act.

‘‘(2) PROGRAM REQUIREMENTS.—The Secretary may accept

assignment of a mortgage under a program under this subsection only if—

‘‘(A) the mortgage was in default;

‘‘(B) the mortgagee has modified the mortgage to cure

the default and provide for mortgage payments within the

reasonable ability of the mortgagor to pay, at interest rates

not exceeding current market interest rates; and

‘‘(C) the Secretary arranges for servicing of the

assigned mortgage by a mortgagee (which may include

the assigning mortgagee) through procedures that the Secretary has determined to be in the best interests of the

appropriate insurance fund.

‘‘(3) PAYMENT OF INSURANCE BENEFITS.—Upon accepting

assignment of a mortgage under a program established under

this subsection, the Secretary may pay insurance benefits to

the mortgagee from the appropriate insurance fund, in an

amount that the Secretary determines to be appropriate, not

to exceed the amount necessary to compensate the mortgagee

for the assignment and any losses and expenses resulting from

the mortgage modification.

‘‘(c) PROHIBITION OF JUDICIAL REVIEW.—No decision by the Secretary to exercise or forego exercising any authority under this

section shall be subject to judicial review.

‘‘(d) SAVINGS PROVISION.—Any mortgage for which the mortgagor has applied to the Secretary, before the date of enactment

of the Departments of Veterans Affairs and Housing and Urban

Development, and Independent Agencies Appropriations Act, 1996,

for assignment pursuant to subsection (b) of this section as in

effect before such date of enactment shall continue to be governed

by the provisions of this section, as in effect immediately before

such date of enactment.

‘‘(e) APPLICABILITY OF OTHER LAWS.—No provision of this Act,

or any other law, shall be construed to require the Secretary to

provide an alternative to foreclosure for mortgagees with mortgages

on 1- to 4-family residences insured by the Secretary under this

Act, or to accept assignments of such mortgages.’’.

(c) APPLICABILITY OF AMENDMENTS.—Except as provided in subsection (e), the amendments made by subsections (a) and (b) shall

apply only with respect to mortgages insured under the National

Housing Act that are originated before October 1, 1995.

(d) REGULATIONS.—Not later than 60 days after the date of

enactment of this Act, the Secretary of Housing and Urban Development shall issue interim regulations to implement this section

and the amendments made by this section.

(e) EFFECTIVENESS AND APPLICABILITY.—If this Act is enacted

after the date of enactment of the Balanced Budget Act of 1995—

(1) subsections (a), (b), (c), and (d) of this section shall

not take effect; and
H. R. 2880—22

(2) section 2052(c) of the Balanced Budget Act of 1995

is amended by striking ‘‘that are originated on or after October

1, 1995’’ and inserting in lieu thereof ‘‘that are originated

before, during, and after fiscal year 1996.’’.

This Act may be cited as ‘‘The Balanced Budget Downpayment

Act, I’’.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.