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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 30 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                 H. R. 30

  To amend and extend certain laws relating to housing and community 
                  development, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

    Mr. Gonzalez (for himself, Mr. Vento, Mr. Schumer, Mr. Frank of 
Massachusetts, Mr. Kanjorski, Mr. Kennedy of Massachusetts, Mr. Mfume, 
Ms. Waters, Mr. Gutierrez, Ms. Roybal-Allard, Mr. Barrett of Wisconsin, 
Mr. Watt, Mr. Hinchey, Mr. Sanders, Mr. Rush, and Ms. Furse) introduced 
the following bill; which was referred to the Committee on Banking and 
                           Financial Services

_______________________________________________________________________

                                 A BILL

 
  To amend and extend certain laws relating to housing and community 
                  development, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Housing and 
Community Development Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Effective date.
                      TITLE I--HOUSING ASSISTANCE

                 Subtitle A--Public and Indian Housing

Sec. 101. Definition of families.
Sec. 102. Family self sufficiency program.
Sec. 103. Public housing rent reform.
Sec. 104. Sale of public housing to nonprofit intermediaries.
Sec. 105. Repeal of least-cost limitation on public housing new 
                            construction.
Sec. 106. Regulatory relief and paperwork reduction for high-performing 
                            public housing agencies.
Sec. 107. Designated housing.
Sec. 108. Eligible uses of emergency modernization funds.
Sec. 109. Use of modernization funds for replacement housing.
Sec. 110. Authority for public housing agencies to leverage amounts for 
                            replacement and modernization.
Sec. 111. Demolition and disposition of public housing.
Sec. 112. Revitalization of severely distressed public housing.
Sec. 113. Applicability of public housing amendments to Indian housing.
Sec. 114. Sale of certain scattered-site public housing.
Sec. 115. Community Patnerships Against Crime.
Sec. 116. Public housing resident opportunity.
                Subtitle B--Section 8 Rental Assistance

Sec. 121. Merger of section 8 rental assistance programs.
Sec. 122. Incentives to refinance high interest rate mortgages.
Sec. 123. Use of excess residual receipts.
Sec. 124. Renewal of section 8 contracts.
Sec. 125. Treatment of certain projects.
                   Subtitle C--Homeownership Programs

Sec. 131. National Homeownership Fund.
Sec. 132. Section 235 mortgage refinancing.
Sec. 133. Residential lead-based paint hazard reduction.
Sec. 134. Federal Deposit Insurance Corporation affordable housing 
                            program.
Sec. 135. State agencies as sureties.
                Subtitle D--Home Investment Partnerships

Sec. 141. Eligible use of investment.
Sec. 142. Qualification as affordable rental housing.
Sec. 143. Repayment of investment.
Sec. 144. Matching requirements.
Sec. 145. Labor requirements.
                Subtitle E--Supportive Housing Programs

Sec. 151. Supportive housing for the elderly.
Sec. 152. Supportive housing for persons with disabilities.
Sec. 153. Revised congregate services.
Sec. 154. Supportive housing assistance for elderly independence.
      Subtitle F--Mortgage Insurance and Secondary Mortgage Market

Sec. 161. Extension of multifamily housing mortgage auction provisions.
Sec. 162. Streamlined refinancing for HUD-held mortgages.
Sec. 163. Delegation of single family mortgage insuring authority to 
                            direct endorsement mortgages.
                    TITLE II--COMMUNITY DEVELOPMENT

Sec. 201. Eligible activities.
Sec. 202. Reallocations.
Sec. 203. Use of UDAG recaptures.
Sec. 204. Extension of certain CDBG assistance.
Sec. 205. Colonias assistance program.
Sec. 206. Youth build program.
                     TITLE III--HOMELESS ASSISTANCE

Sec. 301. Short title.
 Subtitle A--Reorganization of Certain McKinney Act Housing Provisions

Sec. 311. Flexible grant program.
Sec. 312. Regulations and transition provisions.
Sec. 313. Report on single occupancy assistance.
 Subtitle B--Other Housing Assistance Programs for the Homeless Under 
                              McKinney Act

Sec. 321. Section 8 assistance for single room occupancy dwellings.
Sec. 322. Section 8 assistance for shelter plus care single room 
                            occupancy dwellings.
Sec. 323. Rural homelessness grant program.
Sec. 324. Clerical amendment.
         Subtitle C--Miscellaneous Homeless Housing Provisions

Sec. 331. Strategy to eliminate unfit transient facilities.
                    TITLE IV--RURAL HOUSING PROGRAMS

Sec. 401. Program authorizations.
Sec. 402. Eligibility of Native Americans for rural housing programs.
Sec. 403. Escrow fund.
Sec. 404. Section 502 homeownership loans.
Sec. 405. Loan guarantees.
Sec. 406. Prepayment of rural rental housing loans.
Sec. 407. Designation of underserved areas and reservation of 
                            assistance.
Sec. 408. Administrative appeals.
Sec. 409. Section 515 rural rental housing.
Sec. 410. Optional conversion of rental assistance payments to 
                            operating subsidy for migrant farmworker 
                            projects.
Sec. 411. Definition of rural area.
Sec. 412. Priority for rural housing voucher assistance.
Sec. 413. Loan guarantees for multifamily rental housing in rural 
                            areas.
               TITLE V--AUTHORIZATIONS OF APPROPRIATIONS

Sec. 501. Low-income housing authorization.
Sec. 502. Public housing operating subsidies.
Sec. 503. Indian housing loan guarantees.
Sec. 504. New construction of projects for disabled families.
Sec. 505. Emergency modernization funds.
Sec. 506. Family investment centers.
Sec. 507. Service coordinators.
Sec. 508. Community partnerships against crime.
Sec. 509. Early childhood development program.
Sec. 510. Section 8 new construction and substantial rehabilitation 
                            contract renewals.
Sec. 511. Housing counseling.
Sec. 512. Headquarters reserve.
Sec. 513. Supportive housing for the elderly and persons with 
                            disabilities.
Sec. 514. Congregate services.
Sec. 515. Supportive housing assistance for elderly independence.
Sec. 516. Housing opportunities for persons with AIDS.
Sec. 517. National Homeownership Fund.
Sec. 518. Low-income housing preservation.
Sec. 519. Flexible subsidy program.
Sec. 520. Home investment partnerships.
Sec. 521. Community investment demonstration program.
Sec. 522. Youthbuild program.
Sec. 523. Community development block grant and section 108 loan 
                            guarantees.
Sec. 524. Economic development grants.
Sec. 525. Neighborhood Reinvestment Corporation.
Sec. 526. John Heinz neighborhood development program.
Sec. 527. Colonias assistance program.
Sec. 528. New towns demonstration program for emergency relief of Los 
                            Angeles.
Sec. 529. FHA mortgage insurance aggregate limit.
Sec. 530. GNMA mortgage-backed securities guarantee limit.
Sec. 531. Exclusion of GNMA from HUD personnel ceilings.
Sec. 532. HUD research and development.
Sec. 533. Residential lead-based paint hazard reduction.
Sec. 534. Fair housing initiatives program.
Sec. 535. National American Indian Housing Council.
Sec. 536. Housing Assistance Council.
Sec. 537. Flexible block grant assistance under Stewart B. McKinney 
                            Homeless Assistance Act.
Sec. 538. Section 8 assistance for single room occupancy dwellings.
Sec. 539. Section 8 assistance for shelter plus care single room 
                            occupancy dwellings.
Sec. 540. Rural homelessness program.
Sec. 541. Interagency Council on the Homeless.
Sec. 542. Chairperson of Interagency Council on Homeless.
Sec. 543. Extension of Interagency Council on the Homeless.
Sec. 544. Federal Emergency Management Agency food and shelter program.

SEC. 2. EFFECTIVE DATE.

    The provisions of this Act and the amendments made by this Act 
shall take effect and shall apply upon the date of the enactment of 
this Act, unless such provisions or amendments specifically provide for 
effectiveness or applicability upon another date certain.

                      TITLE I--HOUSING ASSISTANCE

                 Subtitle A--Public and Indian Housing

SEC. 101. DEFINITION OF FAMILIES.

    The first sentence of section 3(b)(3)(B) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is amended by inserting 
``or, in the case of disabled families, other household members'' after 
``spouses''.

SEC. 102. FAMILY SELF-SUFFICIENCY PROGRAM.

    (a) Scope.--Section 23(b)(3) of the United States Housing Act of 
1937 (42 U.S.C. 1437u(b)(3)) is amended to read as follows:
            ``(3) Scope.--Each public housing agency required to carry 
        out a local program under this section shall make assistance 
        under the program available in a fiscal year, subject only to 
        the availability of amounts for such assistance, to a number of 
        families who are assisted by the agency under section 8 or 
        reside in public housing of the agency that is equivalent to 
        the sum of--
                    ``(A) the increase for such year in the number of 
                families assisted under section 8 (as compared to the 
                preceding year); and
                    ``(B) the increase for such year in the number of 
                public housing dwelling units made available by the 
                agency (as compared to the preceding year).''.
    (b) Voluntary Escrow Savings Account.--Section 23(d) of the United 
States Housing Act of 1937 (42 U.S.C. 1437u(d)) is amended--
            (1) in paragraph (2)--
                    (A) in the 1st sentence, by striking ``shall'' and 
                inserting ``may'';
                    (B) in the 2d sentence, by inserting after ``area 
                median income'' the following: ``that choose to escrow 
                amounts under this paragraph'';
                    (C) in the 2d sentence, by striking ``shall'' and 
                inserting ``may''; and
                    (D) by striking the 3d and 4th sentences and 
                inserting the following new sentence: ``Amounts in the 
                escrow account may be withdrawn by the participating 
                family upon the successful performance of the 
                obligations of the family under the contract of 
                participation entered into by the family under 
                subsection (c), as determined according to the specific 
                goals and terms included in the contract, and under 
                other circumstances, as determined by the public 
                housing agency with the approval of the Secretary.''; 
                and
            (2) by striking the 2d sentence of paragraph (3) and 
        inserting the following new sentence: ``The plan may require 
        the establishment of escrow savings accounts under paragraph 
        (2), a description of the procedures for release of escrowed 
        amounts, and any other incentives designed by the public 
        housing agency.''.
    (c) Service Coordinators.--Section 23 of the United States Housing 
Act of 1937 (42 U.S.C. 1437u) is amended--
            (1) in the last sentence of subsection (b)(1), by inserting 
        ``under section 671 of the Housing and Community Development 
        Act of 1992'' after ``service coordinator''; and
            (2) in subsection (h)--
                    (A) in paragraph (2), by striking ``(including the 
                costs of employing a full-time service coordinator)''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Contract adjustments for service coordinators.--If, 
        in providing rental assistance under section 8 of the United 
        States Housing Act of 1937 for a public housing agency carrying 
        out a local program under this section in any fiscal year, the 
        Secretary increases the amount provided for the agency so that 
        the number of families assisted by the agency in the year is 
        greater than the number of families assisted in the preceding 
        year, the Secretary may increase the amount annually provided 
        for the agency to provide for the costs of employing or 
        otherwise retaining the services of one or more service 
        coordinators referred to in subsection (b)(1) of this section. 
        The Secretary may also, under any existing contract for 
        assistance under section 8, include the cost of employing such 
        service coordinators to the extent that amounts for amendments 
        to such contracts are available.''.
    (d) Repeal of Incentive Award Allocation.--Section 23 of the United 
States Housing Act of 1937 (42 U.S.C. 1437u) is amended--
            (1) by striking subsection (i); and
            (2) by redesignating subsections (j) through (o) as 
        subsections (i) through (n), respectively.
    (e) Technical Amendment.--Section 23(h)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437u(h)(2)) is amended by striking the 
last sentence.
    (f) Use of Community Action Agencies.--Section 23(b) of the United 
States Housing Act of 1937 (42 U.S.C. 1437u(b)) is amended by adding at 
the end the following new paragraph:
            ``(5) Use of community action agencies.--A pubilc housing 
        agency may enter into agreements with any local community 
        action agency receiving assistance under the Community Services 
        Block Grant Act providing for such agency to carry out the 
        local program of the public housing agency or to provide any 
        supportive services under the local program.''.

SEC. 103. PUBLIC HOUSING RENT REFORM.

    (a) Ceiling Rents.--Section 3(a)(2) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(a)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by striking ``and approved by 
                the Secretary''; and
                    (B) by striking clause (iii) and inserting the 
                following new clause:
            ``(iii) at the election of such agency, is--
                    ``(I) not less than the average monthly amount of 
                debt service and operating expenses attributable to 
                dwelling units of similar size in public housing 
                projects owned and operated by such agency;
                    ``(II) not less than the reasonable rental value of 
                the unit, as determined by the agency; or
                    ``(III) not less than the local market rent 
                determined by the agency for comparable units of 
                similar size pursuant to the procedures prescribed by 
                the Secretary for determining rent reasonableness under 
                the program for rental certificate assistance under 
                section 8(b).'';
            (2) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraphs:
    ``(B) Any ceiling rents established by a public housing agency 
pursuant to this paragraph may be adjusted by the agency.
    ``(C)(i) Any ceiling rents established pursuant to subclause (I) or 
(III) of subparagraph (A)(iii) shall take effect at the discretion of 
the public housing agency.
    ``(ii) Any ceiling rents established pursuant to subclause (II) of 
subparagraph (A)(iii) may not take effect before the issuance of 
regulations to carry out such subclause, which shall be issued by the 
Secretary not later than 180 days after the date of the enactment of 
the Housing and Community Development Act of 1994.
    ``(iii) Before the effectiveness of regulations under clause (ii), 
an agency may implement ceiling rents which shall be equal to the 95th 
percentile of the rent paid for a unit of comparable size by tenants in 
the same project or a group of comparable projects totaling 50 units or 
more.''.
    (b) Exclusions From Adjusted Income.--Section 3(b)(5) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended--
            (1) in subparagraph (C)--
                    (A) by striking ``and'' before ``(ii)''; and
                    (B) by inserting before the semicolon at the end 
                the following: ``; and (iii) to the extent documented 
                by the family, the amount paid by the family for health 
                insurance coverage and any other nonreimbursed out-of-
                pocket medical expenses for any members of the family 
                residing in the household who, at the time, are not 
                receiving or approved to receive any assistance for 
                health care from the Federal Government or any State 
                government, except that this clause shall apply only to 
                families residing in public housing'';
            (2) in subparagraph (E), by inserting before the semicolon 
        at the end the following: ``, except that in the case of a 
        family residing in public housing the amount excluded under 
        this subparagraph shall be 20 percent of the earned income of 
        the family remaining after excluding any amounts pursuant to 
        subparagraph (H)'';
            (3) in subparagraph (F), by striking ``and'' at the end;
            (4) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
            (5) by adding at the end the following new subparagraphs:
            ``(H) in the case of a family residing in public housing, 
        any earned income of any formerly dependent child who is a 
        member of the family residing in the family's dwelling unit 
        during the period beginning on the date of the first 
        redetermination of the rent for and family composition of the 
        family that occurs after the child reaches 18 years of age and 
        ending upon the date of the first such redetermination 
        occurring after he or she reaches 21 years of age.''.
    (c) Exclusion of Earned Income of Residents Who Obtain Employment 
From Rent Determinations.--
            (1) In general.--Section 3(a) of the United States Housing 
        Act of 1937 (42 U.S.C. 1437a(a)) is amended--
                    (A) in the third sentence of paragraph (1), by 
                striking ``paragraph (2)'' and inserting ``paragraphs 
                (2) and (3)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3) Exclusion of Earned Income From Rent Determination for 
Families Previously Unemployed.--Notwithstanding any other provision of 
law, a public housing agency shall provide that, for all units in 
public housing administered by the agency, the rent payable under 
subsection (b) for any such unit occupied by a family whose income 
increases as a result of employment of a member of the family who was 
previously unemployed for 1 or more years, may not--
            ``(A) be increased as a result of the increased income due 
        to such employment during the period that begins upon the 
        commencement of such employment and ends upon the second annual 
        redetermination of the rent for and family composition of the 
        family occurring thereafter;
            ``(B) during any 12-month period occurring during the 36 
        months succeeding the expiration of the period under 
        subparagraph (A) for the family, be increased due to the 
        continued employment of such family member by more than one-
        third of the difference between (i) the rent being paid by the 
        family upon expiration of such period, and (ii) the amount of 
        rent that the family would pay but for the applicability of 
        this paragraph; and
            ``(C) in any case, exceed the amount determined under 
        paragraph (1) or (2).''.
    (d) Exclusion From Income of Earnings From Job Training and Self-
Sufficiency Programs.--Section 3 of the United States Housing Act of 
1937 (42 U.S.C. 1437a) is amended--
            (1) in subsection (b)(4), by inserting before the period at 
        the end the following: ``, and except that the earnings of and 
        benefits to any resident of public housing or any unit assisted 
        under section 8 resulting from enrollment and participation in 
        a program providing employment training and supportive services 
        in accordance with the Family Support Act of 1988, section 22 
        of this Act, the Job Training Partnership Act, Subtitle D of 
        title IV of the Cranston-Gonzalez National Affordable Housing 
        Act, part F of title IV of the Social Security Act, or any 
        comparable Federal, State, or local law shall not be considered 
        as income for the purposes of determining a limitation on the 
        amount of rent paid by the resident during the period that the 
        resident enrolls and participates in such program''; and
            (2) by striking the undesignated paragraph at the end of 
        subsection (c)(3) (as added by section 515(b) of the Cranston-
        Gonzalez National Affordable Housing Act).
            (3) Section 957 of the Cranston-Gonzalez National 
        Affordable Housing Act is hereby repealed.
    (e) Applicability.--Notwithstanding the amendments made by this 
section, any resident of public housing participating in the program 
under the authority contained in the undesignated paragraph at the end 
of section 3(c)(3) of the United States Housing Act of 1937 (as added 
by section 515(b) of the Cranston-Gonzalez National Affordable Housing 
Act (Public Law 101-625; 104 Stat. 4199)), as such paragraph existed 
before the date of enactment of this Act, shall continue to be governed 
by such authority.
    (f) Performance Funding System.--Section 9(a)(3)(B) of the United 
States Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(B)) is amended--
            (1) in clause (iv), by striking ``and'' at the end;
            (2) in (v), by striking the period at the end and inserting 
        a semicolon; and
            (3) by adding at the end the following new clause:
            ``(vi) the amount of any reduced revenue resulting from the 
        exclusion of income of public housing residents pursuant to 
        section 3(b)(5)(E) shall be calculated and included in the 
        amount of the payment received under this section by the public 
        housing agency administering the public housing in which such 
        residents reside;''.
    (g) Effective Date.--The amendments under this section shall take 
effect on October 1, 1995.
    (h) Regulations.--The Secretary shall issue any final regulations 
necessary to implement the amendments made by this section, which shall 
take effect on October 1, 1995. The regulations shall be issued after 
notice and opportunity for public comment in accordance with the 
procedures under section 553 of title 5, United States Code, applicable 
to substantive rules (notwithstanding subsections (a)(2), (b)(B), and 
(d)(3) of such section).

SEC. 104. SALE OF PUBLIC HOUSING TO NON-PROFIT INTERMEDIARIES.

    The first sentence of section 5(h) of the United States Housing Act 
of 1937 (42 U.S.C. 1437c(h)) is amended by striking ``its lower income 
tenants'' and inserting: ``low-income families residing in public 
housing or to non-profit organizations for resale to low-income 
families residing in public housing''.

SEC. 105. REPEAL OF LEAST-COST LIMITATION ON PUBLIC HOUSING NEW 
              CONSTRUCTION.

    Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d) is amended by striking subsection (h).

SEC. 106. REGULATORY RELIEF AND PAPERWORK REDUCTION FOR HIGH-PERFORMING 
              PUBLIC HOUSING AGENCIES.

    (a) Waiver of Rules and Reports.--Section 6(j) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(j)) is amended by adding at the 
end the following new paragraph:
    ``(5)(A) Except as provided in subparagraph (B), the Secretary may, 
for public housing agencies designated pursuant to this subsection as 
high performing public housing agencies with respect to a fiscal year, 
waive (by regulation issued under subparagraph (C)) the applicability 
for the ensuing fiscal year of regulatory requirements otherwise 
applicable to public housing agencies to the extent appropriate, as 
determined by the Secretary, to facilitate more efficient operation of 
such agencies.
    ``(B) The Secretary may not waive the applicability of any 
provision--
            ``(i) limiting occupancy of public housing to low-income 
        families;
            ``(ii) under section 18 requiring replacement of units in 
        the case of demolition or disposition;
            ``(iii) under the Uniform Relocation Assistance and Real 
        Property Acquisition Policies Act of 1970;
            ``(iv) that prohibits, or the purpose of which is to 
        protect persons against, discrimination on the basis of race, 
        color, religion, sex, marital status, national origin, age, or 
        handicap, or that relates to fair housing or equal opportunity; 
        or
            ``(v) under chapter 75 of title 31, United States Code.
    ``(C) During fiscal year 1995, the Secretary shall publish in the 
Federal Register a proposed rule providing for the waiver of the 
regulations to be waived pursuant to this paragraph and identifying 
such regulations. The Secretary shall publish such proposed rule at a 
time determined by the Secretary to be sufficient to provide notice and 
an opportunity for public comment before issuance of a final rule under 
this paragraph. Such final rule shall be issued not later than August 
31, 1995.''.
    (b) Retention by PHA's of Savings From Efficient Management.--
Section 6(e) of the United States Housing Act of 1937 (42 U.S.C. 
1437d(e)) is amended to read as follows:
    ``(e) Treatment of Savings.--
            ``(1) In general.--Any income generated by a high-
        performing public housing agency that exceeds the income 
        estimated by the agency to be generated, according to the 
        agency's annual operating budget, shall be excluded in 
        subsequent years in calculating the amount of the operating 
        subsidy provided under section 9 to the high-performing public 
        housing agency. Such savings shall be retained by the agency 
        for other housing purposes.
            ``(2) High-performing public housing agency.--For purposes 
        of paragraph (1), the term `high-performing public housing 
        agency' means, with respect to a year, a public housing agency 
        that has been designated pursuant to subsection (j) as a high 
        performing public housing agency for the last fiscal year 
        ending before the commencement of such year.''.

SEC. 107. DESIGNATED HOUSING.

    Section 7(e)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437e(e)(1)) is amended--
            (1) in the first sentence, by striking ``and the Secretary 
        approves an application under this subsection for such 
        designation''; and
            (2) in the second sentence, by inserting before the period 
        at the end the following: ``, which shall provide that an 
        application for a project (or portion of a project) shall be 
        submitted and considered for approval in conjunction with 
        submission and approval of the allocation plan for the project 
        (or portion) under section 7(f)''.

SEC. 108. ELIGIBLE USES OF EMERGENCY MODERNIZATION FUNDS.

    Section 14(k)(1) of the United States Housing Act of 1937 (42 
U.S.C. 1437l(k)(1)) is amended--
            (1) in the first sentence, by striking ``$75,000,000'' and 
        inserting ``$50,000,000''; and
            (2) by adding at the end the following new sentence: ``The 
        Secretary shall make any amounts reserved under this paragraph 
        for any fiscal year that remain unobligated on September 1 of 
        such fiscal year available for modernization needs in 
        connection with the settlement of litigation and desegregation 
        of public housing. Of the amounts reserved each year under this 
        paragraph, the Secretary shall make available to the Inspector 
        General of the Department of Housing and Urban Development not 
        more than $5,000,000 for cost in connection with efforts to 
        combat violent crime in public housing. Using amounts made 
        available pursuant to the preceding sentence during fiscal 
        years 1995 and 1996, the Secretary shall provide amounts in 
        each such fiscal year for the continuation of the drug 
        elimination activities under Project Nos. IA05PO98003004 and 
        IA05DEP0980193.''.

SEC. 109. USE OF MODERNIZATION FUNDS FOR REPLACEMENT HOUSING.

    (a) In General.--Section 14 of the United States Housing Act of 
1937 (42 U.S.C. 1437l) is amended by adding at the end the following 
new subsection:
    ``(q) Use of Amounts for Replacement Housing.--
            ``(1) Authority.--A public housing agency may use 
        assistance under this section to provide replacement housing as 
        required by section 18 by developing or acquiring additional 
        housing under this Act, in accordance with requirements 
        applicable to the development of public housing, but only if 
        the cost of providing such housing (not including costs of 
        demolition) is more cost effective than the cost of 
        modernization of the housing proposed to be replaced.
            ``(2) Limitation on amount.--In any fiscal year, a public 
        housing agency may use not more than 50 percent of any 
        assistance provided to the agency under this section for the 
        fiscal year for providing replacement housing pursuant to this 
        section.
            ``(3) Requirements.--A public housing agency may use 
        assistance under this section as provided in subsection (a) 
        only if the replacement plan of the agency, required under 
        section 18, has been approved by the Secretary.''.
    (b) Available Replacement Housing.--Section 14(c)(1) of the United 
States Housing Act of 1937 is amended by inserting before the semicolon 
the following: ``or, only in the case of assistance used as provided 
under subsection (q), housing or units in housing owned (or leased for 
a period to be determined by the Secretary) by a partnership of a 
public housing agency and other entity in which the agency has a 
controlling interest''.

SEC. 110. AUTHORITY FOR PUBLIC HOUSING AGENCIES TO LEVERAGE AMOUNTS FOR 
              REPLACEMENT AND MODERNIZATION.

    Section 14 of the United States Housing Act of 1937 (42 U.S.C. 
1437l) is amended by adding after subsection (q), as added by the 
preceding provisions of this Act, the following new subsection:
    ``(r) Authority for Public Housing Agencies to Leverage Amounts for 
Replacement and Modernization.--
            ``(1) General authorization.--The Secretary may, upon such 
        terms and conditions as the Secretary may prescribe, authorize 
        a public housing agency (or a partnership including a public 
        housing agency) to use grants provided under subsection (b) to 
        leverage amounts which shall be used for financing housing to 
        replace existing public housing dwelling units or for 
        modernization of public housing, but only if the agency submits 
        to the Secretary a plan for such leveraging that is approved by 
        the Secretary.
            ``(2) Requirements.--The Secretary may approve a plan for 
        leveraging under paragraph (1) only if the Secretary determines 
        that--
                    ``(A) the public housing agency has an acceptable 
                rate of obligation of funds under section 14 and 
                demonstrates the ability to use such amounts 
                effectively, directly or through contract management;
                    ``(B) replacement units, if included in the plan, 
                will be subject to binding covenants or commitments 
                sufficient to ensure that they will be used for housing 
                reserved for occupancy by low- and very low-income 
                families for not less than 40 years;
                    ``(C) any modernization to be carried out under the 
                plan complies with the modernization plan submitted 
                under this section by the public housing agency and any 
                replacement of public housing dwelling units to be 
                carried out under the plan complies with the 
                requirements of section 18;
                    ``(D) the plan provides permanent financing 
                commitments from additional sources, which may include 
                banks and other conventional lenders, State housing 
                finance agencies, secondary market entities, and other 
                financial institutions, sufficient to ensure the 
                financing of replacement or modernized units in a 
                timely manner; and
                    ``(E) the plan complies with any other criteria 
                that the Secretary may establish.
            ``(3) Obligation limits.--
                    ``(A) Per pha.--The aggregate outstanding principal 
                amount leveraged under this subsection by a public 
                housing agency may not at any time exceed 5 times the 
                amount of the most recent grant for a fiscal year 
                provided under this section for comprehensive 
                modernization.
                    ``(B) For all phas.--The aggregate outstanding 
                principal amount leveraged under this subsection by all 
                public housing agencies may not, in any single fiscal 
                year, exceed $2,000,000,000.
            ``(4) Use of comprehensive modernization grants and 
        operating revenues.--Notwithstanding any other provision of 
        this title, a public housing agency for which a plan is 
        approved under this subsection may use amounts provided under 
        this section to the agency for comprehensive modernization and 
        amounts provided under section 9 to the agency for operating 
        subsidies (including program income derived therefrom) for the 
        payment of principal, interest, and fees due on any loans 
        obtained pursuant to the plan.
            ``(5) Reports.--The Secretary shall submit a report to the 
        Congress annually regarding the activities under plans for 
        leveraging approved under this subsection and the status of 
        loans, financing, and investments obtained under such plans.''.

SEC. 111. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

    Section 18 of the United States Housing Act of 1937 (42 U.S.C. 
1437p) is amended to read as follows:

             ``demolition and disposition of public housing

    ``Sec. 18. (a) Condition of Housing.--The Secretary may approve an 
application by a public housing agency to demolish or dispose of a 
public housing project or a portion of a public housing project only if 
the Secretary has determined that--
            ``(1) in the case of--
                    ``(A) an application proposing demolition of a 
                public housing project or a portion of a public housing 
                project, the project or portion of the project is 
                obsolete as to physical condition, location, or other 
                factors, and it is more cost effective to replace the 
                project or portion of the project than to rehabilitate 
                the project or portion of the project; or
                    ``(B) an application proposing the demolition of 
                only a portion of a project, the demolition will help 
                to assure the remaining useful life of the remaining 
                portion of the project;
            ``(2) in the case of an application proposing disposition 
        of real property of a public housing agency by sale or other 
        transfer--
                    ``(A)(i) the property's retention is not in the 
                best interests of the tenants or the public housing 
                agency because (I) developmental changes in the area 
                surrounding the project adversely affect the health or 
                safety of the tenants or the feasible operation of the 
                project by the public housing agency, (II) disposition 
                proceeds will contribute to the acquisition, 
                development, or rehabilitation of other properties 
                which will preserve the low-income rental housing 
                available in the community and help to meet the low-
                income rental needs of the community as described in 
                the comprehensive housing affordability strategy under 
                section 105 of the Cranston-Gonzalez National 
                Affordable Housing Act, or (III) because of other 
                factors which the Secretary determines are consistent 
                with the best interests of the tenants and public 
                housing agency and which are not inconsistent with 
                other provisions of this Act; and
                    ``(ii) for property other than dwelling units, the 
                property is excess to the needs of a project or the 
                disposition is incidental to, or does not interfere 
                with, continued operation of a project; and
                    ``(B) the net proceeds of the disposition will be 
                used for (i) the payment of development costs for the 
                replacement housing and for the retirement of 
                outstanding obligations issued to finance original 
                development or modernization of the project, which, in 
                the case of scattered-site housing of a public housing 
                agency, shall be in an amount that bears the same ratio 
                to the total of such costs and obligations as the 
                number of units disposed of bears to the total number 
                of units of the project at the time of disposition, and 
                (ii) to the extent that any proceeds remain after the 
                application of proceeds in accordance with clause (i), 
                the provision of housing assistance for low-income 
                families through such measures as modernization of low-
                income housing, or the acquisition, development, or 
                rehabilitation of other properties to operate as low-
                income housing; or
            ``(3) in the case of an application proposing demolition or 
        disposition of any portion of a public housing project, 
        assisted at any time under section 5(j)(2)--
                    ``(A) such assistance has not been provided for the 
                portion of the project to be demolished or disposed 
                within the 10-year period ending upon submission of the 
                application; or
                    ``(B) the property's retention is not in the best 
                interest of the tenants or the public housing agency 
                because of changes in the area surrounding the project 
                or other extraordinary circumstances of the project, as 
                determined by the Secretary.
    ``(b) Tenant Involvement and Replacement Housing.--The Secretary 
may approve an application or furnish assistance under this section or 
under this Act only if the following requirements are met:
            ``(1) Tenant consultation and employment.--The application 
        from the public housing agency--
                    ``(A) has been developed in consultation with 
                tenants and tenant councils, if any, who will be 
                affected by the demolition or disposition;
                    ``(B) includes a plan to employ public housing 
                tenants in demolition, construction, and rehabilitation 
                to the extent practicable, pursuant to section 3 of the 
                Housing and Urban Development Act of 1968; and
                    ``(C) contains a certification by appropriate local 
                government officials that the proposed activity is 
                consistent with the applicable comprehensive housing 
                affordability strategy under section 105 of the 
                Cranston-Gonzalez National Affordable Housing Act.
            ``(2) Relocation assistance.--All tenants to be relocated 
        as a result of the demolition or disposition will be provided 
        assistance by the public housing agency and be relocated to 
        other decent, safe, sanitary, and affordable housing, which is, 
        to the maximum extent practicable, housing of their choice, 
        including housing assisted under section 8 of this Act.
            ``(3) Replacement housing.--The public housing agency has 
        developed a plan, including a completion schedule, that 
        provides for an additional decent, safe, sanitary, and 
        affordable dwelling unit for each public housing dwelling unit 
        to be demolished or disposed under such application or provides 
        additional dwelling units sufficient to meet the needs and 
        demographic characteristics of the number of applicants on the 
        waiting list of the agency equal to the number of units to be 
        demolished or disposed of which plan--
                    ``(A) provides for the provision of such additional 
                dwelling units through--
                            ``(i) the acquisition or development of 
                        additional public housing dwelling units, which 
                        may be units in housing owned (or leased for a 
                        period to be determined by the Secretary) by a 
                        partnership of a public housing agency and 
                        other entity in which the agency has a 
                        controlling interest;
                            ``(ii) the use of 15-year project-based 
                        assistance under section 8;
                            ``(iii) in the case of an application 
                        proposing demolition or disposition of 200 or 
                        more units, the use of tenant-based assistance 
                        under section 8 having a term of not less than 
                        5 years;
                            ``(iv) units acquired or otherwise provided 
                        for homeownership (including cooperative and 
                        condominium interests) by public housing 
                        residents under section 5(h), subtitle B or C 
                        of title IV of the Cranston-Gonzalez National 
                        Affordable Housing Act, or other programs for 
                        homeownership that have program requirements 
                        substantially equivalent to the requirements 
                        established under section 605 of the Housing 
                        and Community Development Act of 1987;
                            ``(v) affordable housing homeownership 
                        units assisted under title II of the Cranston-
                        Gonzalez National Affordable Housing Act and 
                        sold to public housing residents;
                            ``(vi) rental units that are (I) assisted 
                        under title II of the Cranston-Gonzalez 
                        National Affordable Housing Act 
                        (notwithstanding section 212(d)(2) of such 
                        Act), or (II) assisted under a State or local 
                        rental assistance program that provides for 
                        rental assistance over a term of not less than 
                        15 years that is comparable in terms of 
                        eligibility and contribution to rent to 
                        assistance under section 8, except that this 
                        subclause shall only apply in cases provided 
                        under subparagraph (C);
                            ``(vii) housing assisted by a tax credit 
                        under section 42 of the Internal Revenue Code;
                            ``(viii) housing acquired from the 
                        Resolution Trust Corporation or the Federal 
                        Deposit Insurance Corporation;
                            ``(ix) housing acquired under section 203 
                        of the Housing and Community Development 
                        Amendments of 1978;
                            ``(x) other manners approved by the 
                        Secretary; or
                            ``(xi) any combination of such methods;
                    ``(B) in the case of an application proposing 
                demolition or disposition of 200 or more units, shall 
                provide that--
                            ``(i) not less than 50 percent of such 
                        additional dwelling units shall be provided 
                        through the acquisition or development of 
                        additional dwelling units or through project-
                        based assistance; and
                            ``(ii) not more than 50 percent of such 
                        additional dwelling units shall be provided 
                        through tenant-based assistance under section 8 
                        having a term of not less than 5 years;
                    ``(C) if it provides for the use of tenant-based 
                assistance provided under section 8 or otherwise, may 
                be approved--
                            ``(i) only after a finding by the Secretary 
                        that replacement with project-based assistance 
                        is not feasible, and the supply of decent, 
                        safe, and sanitary rental housing available at 
                        a rental charge not greater than the applicable 
                        fair market rent under section 8 is sufficient 
                        to meet the needs of those who would receive 
                        such assistance under the plan; and
                            ``(ii) only if such finding is based on 
                        objective information, which shall include 
                        rates of participation by landlords and tenants 
                        in the section 8 program in the community, and 
                        the number of eligible families in the 
                        community waiting for public housing or housing 
                        assistance under section 8 and the length of 
                        their wait;
                    ``(D) may provide that all or part of such 
                additional dwelling units may be located outside the 
                jurisdiction of the public housing agency (in this 
                subparagraph referred to as the `original agency') if--
                            ``(i) the location is in the same housing 
                        market area as the original agency, as 
                        determined by the Secretary; and
                            ``(ii) the plan contains an agreement 
                        between the original agency and the public 
                        housing agency in the alternate location or 
                        other public or private entity that will be 
                        responsible for providing the additional units 
                        in the alternate location that such alternate 
                        agency or entity will, with respect to the 
                        dwelling units involved--
                                    ``(I) provide the dwelling units in 
                                accordance with subparagraph (A);
                                    ``(II) complete the plan on 
                                schedule in accordance with 
                                subparagraph (F);
                                    ``(III) meet the requirements of 
                                subparagraph (G) of this paragraph and 
                                the maximum rent provisions of 
                                subparagraph (H);
                                    ``(IV) not impose a local residency 
                                preference on any resident of the 
                                jurisdiction of the original agency for 
                                purposes of admission to any such 
                                units; and
                                    ``(V) allow that preference for 
                                admission to any such additional units 
                                may be provided to residents of the 
                                severely distressed public housing 
                                dwelling units replaced under this 
                                subparagraph pursuant to section 24;
                    ``(E) includes a schedule for completing the plan 
                within a period consistent with the size of the 
                proposed demolition or disposition and replacement 
                plan, which--
                            ``(i) shall not exceed 6 years, except that 
                        the Secretary may extend the schedule to not 
                        more than 10 years if the Secretary determines, 
                        12 months prior to the expiration of the 
                        scheduled completion date, that good cause 
                        exists to extend the implementation of the 
                        replacement plan under this subsection; and
                            ``(ii) can occur in phases necessary to 
                        provide for relocation of tenants under 
                        paragraph (2);
                    ``(F) includes a method of ensuring that the same 
                number of individuals and families will be provided 
                housing;
                    ``(G) provides for the payment of the relocation 
                expenses of each tenant to be displaced and ensures 
                that the rent paid by the tenant following relocation 
                will not exceed the amount permitted under this Act;
                    ``(H) prevents the taking of any action to demolish 
                or dispose of any unit until the tenant of the unit is 
                relocated to decent, safe, sanitary, and affordable 
                housing; and
                    ``(I) permits the Secretary to intervene and take 
                any actions necessary to complete the plan if the 
                public housing agency fails, without good cause, to 
                carry out its obligations under the plan.
    ``(c) Limitation on Demolition and Exemption.--
            ``(1) Maximum percentage.--Notwithstanding any other 
        provision of this section, in any 5-year period a public 
        housing agency may demolish not more than the lesser of 5 
        dwelling units or 5 percent of the total dwelling units owned 
        and operated by the public housing agency, without providing an 
        additional dwelling unit for each such public housing dwelling 
        unit to be demolished, but only if the space occupied by the 
        demolished unit is used for meeting the service or other needs 
        of public housing residents.
            ``(2) Site and neighborhood standards exemption.--
        Notwithstanding any other provision of law, a replacement plan 
        under subsection (b)(3) may provide for demolition of public 
        housing units and replacement of such units on site or in the 
        same neighborhood if the number of replacement units provided 
        in the same neighborhood is fewer than the number of units 
        demolished and the balance of replacement units are provided 
        elsewhere in the jurisdiction or pursuant to subsection 
        (b)(3)(D).
    ``(d) Treatment of Replacement Units.--With respect to any dwelling 
units developed, acquired, or leased by a public housing agency 
pursuant to a replacement plan under subsection (b)(3)--
            ``(1) assistance may be provided under section 9 for such 
        units; and
            ``(2) such units shall be available for occupancy, operated 
        and managed in the manner required for public housing, and 
        shall be subject to the other requirements applicable to public 
        housing dwelling units.
    ``(e) Approval of Applications.--
            ``(1) In general.--The Secretary shall notify a public 
        housing agency submitting an application under this section for 
        demolition or disposition and replacement of a public housing 
        project or portion of a project of the approval or disapproval 
        of the application not later than 60 days after receiving the 
        application. If the Secretary does not notify the public 
        housing agency as required under this paragraph or paragraph 
        (2), the application shall be considered to have been approved.
            ``(2) Disapproval and resubmission.--If the Secretary 
        disapproves an application, the Secretary shall specify in the 
        notice of disapproval the reasons for the disapproval and the 
        agency may resubmit the application as amended or modified.
            ``(3) HUD Resources.--The Secretary shall, upon approving a 
        plan under subsection (b)(3) for replacement housing units and 
        units assisted under section 8, agree to commit (subject to the 
        availability of future appropriations) the funds necessary to 
        carry out the plan over the approved schedule of the plan. As 
        part of each annual budget request for the Department of 
        Housing and Urban Development, the Secretary shall submit to 
        the Congress a report--
                    ``(A) outlining the commitments the Secretary 
                entered into during the preceding year to fund plans 
                approved under subsection (b)(3);
                    ``(B) specifying, by fiscal year, the budget 
                authority required to carry out the commitments 
                specified in subparagraph (A);
                    ``(C) describing, for the preceding fiscal year, by 
                locality, project name, and number of units--
                            ``(i) the applications approved;
                            ``(ii) the applications not approved;
                            ``(iii) waiver applications approved;
                            ``(iv) waiver applications default 
                        approved; and
                            ``(v) waiver applications denied; and
                    ``(D) describing by locality, project name, and 
                program, the number of replacement units approved and 
                funded.
    ``(f) Action Before Approval of Application.--
            ``(1) Prohibited action.--A public housing agency shall not 
        take any action to demolish or dispose of a public housing 
        project or a portion of a public housing project without 
        obtaining the approval of the Secretary and satisfying the 
        conditions specified in subsections (a) and (b).
            ``(2) Allowable relocation.--A public housing agency may 
        relocate tenants of public housing into other dwelling units 
        after the submission of an application under this section for 
        demolition or disposition or prior to implementing an approved 
        plan for modernization under section 14 or 24, if units to be 
        demolished or disposed of are not decent, safe, and sanitary, 
        or if the units to be rehabilitated can not be maintained cost-
        effectively in a decent, safe, and sanitary condition.
    ``(g) Reservation of Section 8 Assistance.--In each of fiscal years 
1995 and 1996, the Secretary may reserve from any budget authority 
appropriated for such year for assistance under section 8 that is 
available for families not currently receiving such assistance not more 
than 10 percent of such budget authority for providing replacement 
housing under subsection (b)(3)(A) for units demolished or disposed of 
pursuant to this section.
    ``(h) Inapplicability to Public Housing Homeownership Program.--The 
provisions of this section shall not apply to the disposition of a 
public housing project in accordance with an approved homeownership 
program under title III of this Act.
    ``(i) Exception to Replacement Rule.--
            ``(1) Requirements for waiver.--The Secretary shall waive 
        in whole or in part the applicability of the provisions of 
        subsection (b)(3) with respect to any application under this 
        section by a public housing agency for the demolition or 
        disposition of public housing dwelling units if--
                    ``(A) the Secretary determines, based on 
                information provided by the public housing agency in 
                the application and the request under paragraph (2) and 
                taking into consideration the assessment submitted by 
                the agency under paragraph (2)(C), that--
                            ``(i) the public housing agency has made a 
                        good faith effort to implement the replacement 
                        plan as approved;
                            ``(ii) sufficient financial assistance is 
                        not, and will not be, available to the public 
                        housing agency or the community to rehabilitate 
                        or replace all or some of the units; or
                            ``(iii) changed circumstances and other 
                        affordable housing in the community have 
                        satisfied the replacement housing required 
                        under the plan; and
                    ``(B) the public housing agency requests a waiver 
                under this subsection in accordance with the 
                requirements under paragraph (2).
            ``(2) Request for waiver.--To be eligible for a waiver 
        under this subsection, a public housing agency shall submit to 
        the Secretary a request for a waiver under this subsection that 
        includes--
                    ``(A) a revised replacement housing plan that 
                describes additional decent, safe, sanitary, and 
                affordable dwelling units to be made available as 
                replacement housing;
                    ``(B) an identification of the replacement dwelling 
                units for which the waiver is requested and a 
                justification for why they cannot be produced; and
                    ``(C) an assessment of the availability of dwelling 
                units affordable to low-income families within the 
                housing market area in which the dwelling units are 
                located, during the implementation of the replacement 
                plan.
            ``(3) Submission to secretary.--A request for a waiver 
        under this subsection may be submitted no earlier than 12 
        months before the expiration of the replacement plan completion 
        schedule. The request shall be submitted to the Secretary by 
        certified mail or any other equivalent means that provides 
        notification to the public housing agency making the request of 
        the date of receipt by the Secretary.
            ``(4) Notice of disposition of request.--Except as provided 
        in paragraph (5), the Secretary shall notify a public housing 
        agency requesting a waiver under this section of the approval 
        or disapproval of the request not later than 60 days after 
        receiving the request. If the Secretary does not notify the 
        public housing agency as required under this paragraph or 
        paragraph (5), the request for a waiver shall be considered to 
        have been approved.
            ``(5) Request for additional information.--If the Secretary 
        determines that more information is needed to make the 
        determinations under paragraph (1) than has been provided by 
        the public housing agency, the Secretary shall notify the 
        agency in writing not later than 30 days after receiving the 
        request for the waiver that additional information is 
        necessary. Such notice shall describe specifically the 
        additional information required for the determinations and 
        establish a deadline for the submission of the information by 
        the agency, which shall be determined based on the difficulty 
        of obtaining the information requested. If the agency submits 
        such additional information requested before the deadline 
        established in the notice under this paragraph, the Secretary 
        shall notify the agency requesting the waiver that the request 
        is approved or disapproved not later than 30 days after the 
        submission of such additional information.
            ``(6) Statement of reasons for denying or approving 
        request.--The Secretary shall include, in each notice under 
        paragraph (4) or (5) of the denial or approval of a request for 
        a waiver under this subsection, the specific reasons for 
        denying or approving the request. The denial of any request for 
        a waiver for public housing dwelling units shall not prejudice 
        the consideration of any other subsequent request for such a 
        waiver for any of such dwelling units.''.

SEC. 112. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.

    (a) Planning Grants.--Subsection (c) of section 24 of the United 
States Housing Act of 1937 (42 U.S.C. 1437v(c)) is amended--
            (1) in paragraph (2) by striking ``$200,000'' and inserting 
        ``$300,000'';
            (2) in paragraph (3)--
                    (A) in subparagraph (G), by striking ``designing a 
                suitable replacement housing plan'' and inserting 
                ``designing suitable relocation and replacement housing 
                plans'';
                    (B) by redesignating subparagraphs (E) through (I) 
                as subparagraphs (F) through (J), respectively; and
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) planning for community service activities to 
                be carried out by residents, other members of the 
                community, and other persons willing to contribute to 
                the social, economic, or physical improvement of the 
                community;'';
            (3) in paragraph (4)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) to the extent the applicant is requesting 
                amounts for community service planning activities, a 
                description of such activities to be carried out by 
                residents, other members of the community, and other 
                persons willing to contribute to the social, economic, 
                or physical improvement of the community;''; and
            (5) in paragraph (5)--
                    (A) in subparagraph (F), by inserting before the 
                semicolon at the end the following: ``, taking into 
                consideration the condition of the public housing of 
                the public housing agency as a whole'';
                    (B) by striking subparagraph (E); and
                    (C) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (E) and (F), respectively.
    (b) Implementation Grants.--Subsection (d) of section 24 of the 
United States Housing Act of 1937 is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (I), by striking ``except 
                that'' and all that follows and inserting the 
                following: ``except that--
                            ``(i) not more than 20 percent of any grant 
                        under this subsection may be used for such 
                        purpose; and
                            ``(ii) an amount equal to 15 percent of the 
                        amount of any grant under this subsection used 
                        for such purposes shall be contributed from 
                        non-Federal sources, and may be in the form of 
                        cash, administrative costs, and the reasonable 
                        value of in-kind contributions, and may include 
                        funding under title I of the Housing and 
                        Community Development Act of 1974.'';
                    (B) by redesignating subparagraphs (E) through (I) 
                (as so amended) as subparagraphs (G) through (K), 
                respectively; and
                    (C) by inserting after subparagraph (D) the 
                following new subparagraphs:
                    ``(E) community service activities to be carried 
                out by residents, other members of the community, and 
                other persons willing to contribute to the social, 
                economic, or physical improvement of the community;
                    ``(F) replacement of public housing units;'';
            (2) in paragraph (3)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) to the extent the applicant is requesting 
                amounts for community service activities, a description 
                of the community service activities to be carried out 
                by residents, other members of the community, and other 
                persons willing to contribute to the social, economic, 
                or physical improvement of the community;''; and
            (3) in paragraph (4)--
                    (A) by striking subparagraph (D) and inserting the 
                following new subparagraph:
                    ``(D) the quality of the proposed revitalization 
                program and the suitability of the project for such a 
                program;'';
                    (B) in subparagraph (F), by inserting before the 
                semicolon at the end the following: ``, taking into 
                consideration the condition of the public housing of 
                the applicant as a whole''; and
                    (C) by striking subparagraph (E); and
                    (D) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (E) and (F), respectively.
    (c) Exceptions to General Program Requirements.--Section 24(e) of 
the United States Housing Act of 1937 is amended--
            (1) by striking the first sentence of paragraph (2) and 
        inserting the following new sentence: ``For projects 
        revitalized under this section, a public housing agency may--
                    ``(A) in lieu of selecting tenants pursuant to the 
                preferences specified under section 6(c)(4)(A)(i), 
                select tenants pursuant to a local system of 
                preferences;
                    ``(B) in making dwelling units in such projects 
                available for occupancy, disregard the order in which 
                applications were made for residency in public housing 
                dwelling units or any waiting lists established for 
                such residency to provide for substantial variation in 
                the incomes of families residing in the project, 
                subject to the provisions of this Act relating to 
                income eligibility in public housing projects (as 
                modified under subparagraph (C));
                    ``(C) notwithstanding section 16 of this Act, 
                provide for low-income families to occupy not more than 
                50 percent of the dwelling units in a project, and
                    ``(D) establish ceiling rents under section 
                3(a)(2).''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Demolition and replacement.--
                    ``(A) In general.--Notwithstanding any other 
                applicable law or regulation, a revitalization plan 
                under this section may include demolition of public 
                housing units and replacement of such units on site or 
                in the same neighborhood if the number of replacement 
                units provided in the same neighborhood is fewer than 
                the number of units demolished as a result of the 
                revitalization effort.
                    ``(B) Tenant-based assistance.--Notwithstanding the 
                limitation in subparagraph (C) of section 18(b)(3), a 
                public housing agency may replace not more than one-
                third of the units demolished or disposed of through a 
                revitalization project under this section with tenant-
                based assistance under section 8, but only if the 
                public housing agency demonstrates to the satisfaction 
                of the Secretary that the local housing market in which 
                the assistance is to be used has had a vacancy rate, 
                among units whose rent does not exceed the fair market 
                rental for the area established under section 8(e), of 
                more than 3 percent for at least 6 consecutive months.
                    ``(C) Additional methods of replacement.--A 
                revitalization plan under this section may provide for 
                replacement of public housing units in the manners 
                under subparagraph (D) of this paragraph in addition to 
                the requirements of subparagraph (B) of section 
                18(b)(3)) if the agency or corporation enters into such 
                agreements as the Secretary considers necessary to 
                ensure that the replacement units will remain 
                affordable to families eligible for residency in public 
                housing for the remaining useful life of the units, as 
                determined by the Secretary.
                    ``(D) Certificate and new unit mix.--Each such 
                dwelling unit demolished, disposed of, or otherwise 
                eliminated pursuant to paragraph (c) shall be replaced 
                with an additional dwelling unit through any 
                combination of--
                            ``(i) additional public housing dwelling 
                        units;
                            ``(ii) units or housing described in clause 
                        (iv), (v), (vii), (viii), or (ix) of section 
                        18(b)(3)(A);
                            ``(iii) rental units that are (I) assisted 
                        under title II of the Cranston-Gonzalez 
                        National Affordable Housing Act 
                        (notwithstanding section 212(d)(2) of such 
                        Act), or (II) assisted under a State or local 
                        rental assistance program that provides for 
                        rental assistance over a term of not less than 
                        5 years that is comparable in terms of 
                        eligibility and contribution to rent to 
                        assistance under section 8; but this clause 
                        shall apply to a revitalization program only if 
                        the agency demonstrates to the satisfaction of 
                        the Secretary that the local housing market in 
                        which the assistance is to be used has had a 
                        vacancy rate, among units whose rent does not 
                        exceed the fair market rental for the area 
                        established under section 8(e), of more than 3 
                        percent for at least 6 consecutive months; or
                            ``(iv) other manners approved by the 
                        Secretary.''.
    (d) Definitions.--Subsection (h) of section 24 of the United States 
Housing Act of 1937 is amended--
            (1) by striking paragraph (5) and inserting the following 
        new paragraphs:
            ``(6) Severely distressed public housing.--The term 
        `severely distressed public housing' means a public housing 
        project or building in a project that--
                    ``(A) requires major redesign, reconstruction, or 
                redevelopment, or partial or total demolition, to 
                correct serious deficiencies in the original design 
                (including inappropriately high population density), 
                deferred maintenance, physical deterioration or 
                obsolescence of major systems, and other deficiencies 
                in the physical plant of the project;
                    ``(B) is--
                            ``(i)(I) occupied predominantly by families 
                        with children which have extremely low incomes, 
                        high rates of unemployment, and extensive 
                        dependency on various forms of public 
                        assistance; and
                            ``(II) has high rates of vandalism and 
                        criminal activity (including drug-related 
                        criminal activity) in comparison to other 
                        housing in the area; or
                            ``(ii) has a vacancy rate, as determined by 
                        the Secretary, of 50 percent or more;
                    ``(C) can not be revitalized through assistance 
                under other programs, such as the programs under 
                sections 9 and 14, or through other administrative 
                means because of the inadequacy of available amounts; 
                and
                    ``(D) in the case of an individual building, the 
                building is (in the determination of the Secretary) 
                sufficiently separable from the remainder of the 
                project of which the building is part to make use of 
                the building feasible for purposes of this section.
            ``(7) Support services.--The term `support services' 
        includes all activities which will promote upward mobility, 
        self-sufficiency, and improved quality of life for the 
        residents of the public housing project involved, and shall 
        include literacy training, job training, day care, and economic 
        development activities. Support services may be provided to 
        residents of the neighborhood in which the public housing 
        project involved is located.'';
            (2) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5), respectively; and
            (3) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Community service.--The term `community service' 
        means services provided on a volunteer or limited stipend basis 
        for the social, economic, or physical improvement of the 
        community to be served, including opportunity for the upward 
        mobility of participants providing the community service, 
        through completion of education requirements, job training, or 
        alternative methods of developing skills and job readiness.''.
    (e) Repeal.--Subsections (b) and (i) of section 24 of the United 
States Housing Act of 1937 are repealed.
    (f) Applicability.--Section 24 of the United States Housing Act of 
1937 is amended by adding at the end the following new subsection:
    ``(j) Applicability.--Notwithstanding any provision of this Act, 
with respect to a public housing project that (1) has been selected for 
funding under this section 24 or through the urban revitalization 
demonstration program under the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1993 (Public Law 102-389, 106 Stat. 1579; 42 U.S.C. 1437l note) or 
the Departments of Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1994 (Public Law 103-124, 
107 Stat. 1285; 42 U.S.C. 1437l note), and (2) has an approved 
comprehensive plan under section 14 of this Act, the Secretary may 
apply any provision of this section and the regulations hereunder to 
all activities undertaken at such projects only during revitalization. 
Such activities may include demolition, modernization, reconstruction, 
site improvement, replacement housing and operation and management, 
including funding under sections 5, 9, and 14.''.
    (g) Conforming Amendment.--The first sentence of section 25(m)(1) 
of the United States Housing Act of 1937 (42 U.S.C. 1437w(m)(1)) is 
amended to read as follows: ``The term `eligible housing' means a 
public housing project, or one or more buildings within a project, that 
is owned or operated by a troubled public housing agency that has been 
troubled for not less than 3 years and that, as determined by the 
Secretary, has failed to make substantial progress toward effective 
management.''.
    (h) Applicability to Certain Project.--The amendments made by this 
section shall apply with respect to assistance provided before the date 
of the enactment of this Act under section 24 of the United States 
Housing Act of 1937 for the Desire Housing Development, located in New 
Orleans, Louisiana, but only to the extent that the Housing Authority 
of New Orleans submits to the Secretary of Housing and Urban 
Development a description of the revitalization program for such 
project describing the use of such assistance under the provisions of 
such section 24, as amended, which is approved by the Secretary.

SEC. 113. APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO INDIAN HOUSING.

    (a) Amendment.--Section 201(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437aa(b)) is amended to read as follows:
    ``(b) Applicability of Title I.--Except as otherwise provided by 
law, the provisions of title I shall apply to low-income housing 
developed or operated pursuant to a contract between the Secretary and 
an Indian housing authority.''.
    (b) Applicability of Amendment.--The amendment made by subsection 
(a) shall not affect provisions of the United States Housing Act of 
1937 that were made applicable to public housing developed or operated 
pursuant to a contract between the Secretary and an Indian housing 
authority in accordance with section 201(b)(2) of such Act, as such 
section existed before the effective date of this section.
    (c) Applicability of Housing and Community Development Act of 
1992.--The provisions of, and the amendments made by, sections 
103(a)(1), 112, 114, 116, 118, 903, and 927 of the Housing and 
Community Development Act of 1992 and sections 301, 302, 303 and 304 of 
the Multifamily Housing Property Disposition Reform Act of 1994 shall 
apply to public housing developed or operated pursuant to a contract 
between the Secretary and an Indian housing authority.

SEC. 114. SALE OF CERTAIN SCATTERED-SITE PUBLIC HOUSING.

    Section 131 of the Housing and Community Development Act of 1992 
(Public Law 102-550; 106 Stat. 3712) is amended by adding at the end 
the following new sentence: ``During the term of the annual 
contributions contract relating to the scattered-site public housing 
originally sold under this section, any proceeds from the disposition 
of replacement scattered-site dwellings purchased with (1) the proceeds 
from such original disposition, or (2) the proceeds from the 
disposition of any replacement scattered-site dwellings, shall be used 
to purchase additional replacement scattered-site dwellings, which 
shall be considered public housing for the purposes of such Act and for 
which the Secretary shall provide annual contributions for operation, 
using amounts made available under section 9(c) of such Act.''.

SEC. 115. COMMUNITY PARTNERSHIPS AGAINST CRIME.

    (a) Short Title, Purposes, and Authority to Make Grants.--Chapter 2 
of subtitle C of title V of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 
11901 et seq.) is amended by striking the chapter heading and all that 
follows through section 5123 and inserting the following:

           ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

``SEC. 5121. SHORT TITLE.

    ``This chapter may be cited as the `Community Partnerships Against 
Crime Act of 1994'.

``SEC. 5122. PURPOSES.

    ``The purposes of this chapter are to--
            ``(1) improve the quality of life for the vast majority of 
        law-abiding public housing residents by reducing the levels of 
        fear, violence, and crime in their communities;
            ``(2) substantially expand and enhance the Federal 
        Government's commitment to eliminating crime in and around 
        public housing and other federally assisted low-income housing;
            ``(3) broaden the scope of the Public and Assisted Housing 
        Drug Elimination Act of 1990 to apply to all types of crime, 
        and not simply crime that is drug-related;
            ``(4) encourage the involvement of a broad range of 
        community-based groups and residents of neighboring housing 
        that is owned or assisted by the Secretary in the development 
        and implementation of anti-crime plans;
            ``(5) reduce crime and disorder in and around public 
        housing through the expansion of community-oriented policing 
        activities and problem solving;
            ``(6) provide training, information services, and other 
        technical assistance to program participants; and
            ``(7) establish a standardized assessment system to 
        evaluate need among public housing agencies and to measure 
        progress in reaching crime reduction goals.

``SEC. 5123. AUTHORITY TO MAKE GRANTS.

    ``The Secretary of Housing and Urban Development may make grants in 
accordance with the provisions of this chapter for use in eliminating 
crime in and around public housing and other federally assisted low-
income housing projects to (1) public housing agencies, and (2) 
private, for-profit and nonprofit owners of federally assisted low-
income housing. In designing the program for grants under this chapter, 
the Secretary shall consult with the Attorney General.''.
    (b) Eligible Activities.--
            (1) In general.--Section 5124(a) of the Anti-Drug Abuse Act 
        of 1988 (42 U.S.C. 11903(a)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``and around'' after ``used in'';
                    (B) in paragraph (3), by inserting before the 
                semicolon the following: ``, including fencing, 
                lighting, locking, and surveillance systems'';
                    (C) in paragraph (4), by striking subparagraph (A) 
                and inserting the following new subparagraph:
                    ``(A) to investigate crime; and'';
                    (D) in paragraph (6)--
                            (i) by striking ``in and around public or 
                        other federally assisted low-income housing 
                        projects''; and
                            (ii) by striking ``and'' after the 
                        semicolon; and
                    (E) by striking paragraph (7) and inserting the 
                following new paragraphs:
            ``(7) providing funding to nonprofit public housing 
        resident management corporations and resident councils to 
        develop security and crime prevention programs involving site 
        residents;
            ``(8) the employment or utilization of one or more 
        individuals, including law enforcement officers, made available 
        by contract or other cooperative arrangement with State or 
        local law enforcement agencies, to engage in community- and 
        problem-oriented policing involving interaction with members of 
        the community in proactive crime control and prevention 
        activities;
            ``(9) programs and activities for or involving youth, 
        including training, education, recreation and sports, career 
        planning, and entrepreneurship and employment activities and 
        after school and cultural programs; and
            ``(10) service programs for residents that address the 
        contributing factors of crime, including programs for job 
        training, education, drug and alcohol treatment, and other 
        appropriate social services.''.
            (2) Other pha-owned housing.--Section 5124(b) of the Anti-
        Drug Abuse Act of 1988 (42 U.S.C. 11903(b)) is amended--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``drug-related crime in'' 
                        and inserting ``crime in and around''; and
                            (ii) by striking ``paragraphs (1) through 
                        (7)'' and inserting ``paragraphs (1) through 
                        (10)''; and
                    (B) in paragraph (2), by striking ``drug-related'' 
                and inserting ``criminal''.
    (c) Grant Procedures.--Section 5125 of the Anti-Drug Abuse Act of 
1988 (42 U.S.C. 11904) is amended to read as follows:

``SEC. 5125. GRANT PROCEDURES.

    ``(a) PHA's With 250 or More Units.--
            ``(1) Grants.--In each fiscal year, the Secretary shall 
        make a grant under this chapter from any amounts available 
        under section 5131(b)(1) for the fiscal year to each of the 
        following public housing agencies:
                    ``(A) New applicants.--Each public housing agency 
                that owns or operates 250 or more public housing 
                dwelling units and has--
                            ``(i) submitted an application to the 
                        Secretary for a grant for such fiscal year, 
                        which includes a 5-year crime deterrence and 
                        reduction plan under paragraph (2); and
                            ``(ii) had such application and plan 
                        approved by the Secretary.
                    ``(B) Renewals.--Each public housing agency that 
                owns or operates 250 or more public housing dwelling 
                units and for which--
                            ``(i) a grant was made under this chapter 
                        for the preceding Federal fiscal year;
                            ``(ii) the term of the 5-year crime 
                        deterrence and reduction plan applicable to 
                        such grant includes the fiscal year for which 
                        the grant under this subsection is to be made; 
                        and
                            ``(iii) the Secretary has determined, 
                        pursuant to a performance review under 
                        paragraph (4), that during the preceding fiscal 
                        year the agency has substantially fulfilled the 
                        requirements under subparagraphs (A) and (B) of 
                        paragraph (4).
            ``(2) 5-year crime deterrence and reduction plan.--Each 
        application for a grant under this subsection shall contain a 
        5-year crime deterrence and reduction plan. The plan shall 
        describe, for the public housing agency submitting the plan--
                    ``(A) the nature of the crime problem in public 
                housing owned or operated by the public housing agency;
                    ``(B) the building or buildings of the public 
                housing agency affected by the crime problem;
                    ``(C) the impact of the crime problem on residents 
                of such building or buildings; and
                    ``(D) the actions to be taken during the term of 
                the plan to reduce and deter such crime, which shall 
                include actions involving residents, law enforcement, 
                and service providers.
        The term of a plan shall be the period consisting of 5 
        consecutive fiscal years, which begins with the first fiscal 
        year for which funding under this chapter is provided to carry 
        out the plan.
            ``(3) Amount.--In any fiscal year, the amount of the grant 
        for a public housing agency receiving a grant pursuant to 
        paragraph (1) shall be the amount that bears the same ratio to 
        the total amount made available under section 5131(b)(1) as the 
        total number of public dwelling units owned or operated by such 
        agency bears to the total number of dwelling units owned or 
        operated by all public housing agencies that own or operate 250 
        or more public housing dwelling units that are approved for 
        such fiscal year.
            ``(4) Performance review.--For each fiscal year, the 
        Secretary shall conduct a performance review of the activities 
        carried out by each public housing agency receiving a grant 
        pursuant to this subsection to determine whether the agency--
                    ``(A) has carried out such activities in a timely 
                manner and in accordance with its 5-year crime 
                deterrence and reduction plan; and
                    ``(B) has a continuing capacity to carry out such 
                plan in a timely manner.
            ``(5) Submission of applications.--The Secretary shall 
        establish such deadlines and requirements for submission of 
        applications under this subsection as the Secretary determines 
        appropriate for timely and orderly allocation and disbursement 
        of amounts made available for grants under this subsection.
            ``(6) Review and determination.--The Secretary shall review 
        each application submitted under this subsection upon 
        submission and shall approve the application unless the 
        application and the 5-year crime deterrence and reduction plan 
        are inconsistent with the purposes of this chapter or any 
        requirements established by the Secretary or the information in 
        the application or plan is not substantially complete. Upon 
        approving or determining not to approve an application and plan 
        submitted under this subsection, the Secretary shall notify the 
        public housing agency submitting the application and plan of 
        such approval or disapproval.
            ``(7) Disapproval of applications.--If the Secretary 
        notifies an agency that the application and plan of the agency 
        is not approved, not later than the expiration of the 15-day 
        period beginning upon such notice of disapproval, the Secretary 
        shall also notify the agency, in writing, of the reasons for 
        the disapproval, the actions that the agency could take to 
        comply with the criteria for approval, and the deadlines for 
        such actions.
            ``(8) Failure to approve or disapprove.--If the Secretary 
        fails to notify an agency of approval or disapproval of an 
        application and plan submitted under this subsection before the 
        expiration of the 60-day period beginning upon the submission 
        of the plan or fails to provide notice under paragraph (7) 
        within the 15-day period under such paragraph to an agency 
        whose application has been disapproved, the application and 
        plan shall be considered to have been approved for purposes of 
        this section.
    ``(b) PHA's With Fewer Than 250 Units and Owners of Federally 
Assisted Low-Income Housing.--
            ``(1) Applications and plans.--To be eligible to receive a 
        grant under this chapter, a public housing agency that owns or 
        operates fewer than 250 public housing dwelling units or an 
        owner of federally assisted low-income housing shall submit an 
        application to the Secretary at such time, in such manner, and 
        accompanied by such additional information as the Secretary may 
        require. The application shall include a plan for addressing 
        the problem of crime in and around the housing for which the 
        application is submitted, describing in detail activities to be 
        conducted during the fiscal year for which the grant is 
        requested.
            ``(2) Grants for pha's with fewer than 250 units.--In each 
        fiscal year the Secretary may, to the extent amounts are 
        available under section 5131(b)(2), make grants under this 
        chapter to public housing agencies that own or operate fewer 
        than 250 public housing dwelling units and have submitted 
        applications under paragraph (1) that the Secretary has 
        approved pursuant to the criteria under paragraph (4).
            ``(3) Grants for federally assisted low-income housing.--In 
        each fiscal year the Secretary may, to the extent amounts are 
        available under section 5131(b)(3), make grants under this 
        chapter to owners of federally assisted low-income housing that 
        have submitted applications under paragraph (1) that the 
        Secretary has approved pursuant to the criteria under 
        paragraphs (4) and (5).
            ``(4) Criteria for approval of applications.--The Secretary 
        shall determine whether to approve each application under this 
        subsection on the basis of--
                    ``(A) the extent of the crime problem in and around 
                the housing for which the application is made;
                    ``(B) the quality of the plan to address the crime 
                problem in the housing for which the application is 
                made;
                    ``(C) the capability of the applicant to carry out 
                the plan; and
                    ``(D) the extent to which the tenants of the 
                housing, the local government, local community-based 
                nonprofit organizations, local tenant organizations 
                representing residents of neighboring projects that are 
                owned or assisted by the Secretary, and the local 
                community support and participate in the design and 
                implementation of the activities proposed to be funded 
                under the application.
        In each fiscal year, the Secretary may give preference to 
        applications under this subsection for housing made by 
        applicants who received a grant for such housing for the 
        preceding fiscal year under this subsection or under the 
        provisions of this chapter as in effect immediately before the 
        date of the enactment of the Housing and Community Development 
        Act of 1994.
            ``(5) Additional criteria for federally assisted low-income 
        housing.--In addition to the selection criteria under paragraph 
        (4), the Secretary may establish other criteria for evaluating 
        applications submitted by owners of federally assisted low-
        income housing, except that such additional criteria shall be 
        designed only to reflect--
                    ``(A) relevant differences between the financial 
                resources and other characteristics of public housing 
                authorities and owners of federally assisted low-income 
                housing; or
                    ``(B) relevant differences between the problem of 
                crime in public housing administered by such public 
                housing agencies and the problem of crime in federally 
                assisted low-income housing.''.
    (d) Definitions.--Section 5126 of the Anti-Drug Abuse Act of 1988 
(42 U.S.C. 11905) is amended--
            (1) by striking paragraphs (1) and (2);
            (2) in paragraph (4), by striking ``section'' before 
        ``221(d)(4)'';
            (3) by redesignating paragraphs (3) and (4) (as so amended) 
        as paragraphs (1) and (2), respectively; and
            (4) by adding at the end the following new paragraph:
            ``(3) Public housing agency.--The term `public housing 
        agency' has the meaning given the term in section 3(b) of the 
        United States Housing Act of 1937.''.
    (e) Implementation.--Section 5127 of the Anti-Drug Abuse Act of 
1988 (42 U.S.C. 11906) is amended by striking ``Cranston-Gonzalez 
National Affordable Housing Act'' and inserting ``Housing and Community 
Development Act of 1994''.
    (f) Reports.--Section 5128 of the Anti-Drug Abuse Act of 1988 (42 
U.S.C. 11907) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
    ``(a) Reports by Grantees.--The Secretary'';
            (2) by striking ``drug-related crime in'' and inserting 
        ``crime in and around'';
            (3) by striking ``described in section 5125(a)'' and 
        inserting ``for the grantee submitted under subsection (a) or 
        (b) of section 5125, as applicable''; and
            (4) by adding at the end the following new subsection:
    ``(b) Reports by Secretary.--For each fiscal year in which the 
Secretary makes grants under this chapter, the Secretary shall submit a 
report to the Congress describing the progress achieved in crime 
deterrence and reduction in the public housing and federally assisted 
low-income housing for which such grant assistance has been provided. 
The report shall include any recommendations of the Secretary for 
changes in the program of assistance under this chapter.''.
    (g) Technical Assistance and Funding.--Chapter 2 of subtitle C of 
title V of the Anti-Drug Abuse Act of 1988 is amended by striking 
section 5130 (42 U.S.C. 11909) and inserting the following new 
sections:

``SEC. 5130. TECHNICAL ASSISTANCE.

    ``(a) In General.--To the extent amounts are made available under 
section 5131(c), the Secretary may provide training, information 
services, and other technical assistance to public housing agencies and 
other entities with respect to their participation in the program under 
this chapter, which shall include activities under subsection (b) of 
this section. Such technical assistance may be provided directly by the 
Secretary or indirectly pursuant to grants, contracts, or cooperative 
agreements.
    ``(b) Use.--The Secretary may use amounts available for use under 
this section--
            ``(1) to establish and operate the clearinghouse on drug 
        abuse in public housing and the regional training program on 
        drug abuse in public housing under sections 5143 and 5144 of 
        this Act;
            ``(2) to obtain assistance in establishing and managing 
        assessment and evaluation criteria and specifications and to 
        obtain the opinions of experts in relevant fields; and
            ``(3) upon the request of a public housing agency, to 
        assist the agency in evaluating the extent of the crime problem 
        in any public housing administered by the agency and preparing 
        a 5-year crime deterrence and reduction plan under section 
        5125(a) or an application and plan under section 5125(b)(1), 
        which assistance may include providing personnel and funding to 
        identify and secure local resources to assist in deterring and 
        reducing crime.
    ``(c) Priority.--In selecting entities to receive technical 
assistance under this section, the Secretary shall give priority to 
public housing agencies that have submitted applications and plans 
under section 5125 that the Secretary has determined do not meet the 
requirements for approval for assistance under this chapter.

``SEC. 5131. ALLOCATION OF FUNDING.

    ``(a) Allocation.--Of any amounts available, or that the Secretary 
is authorized to use, to carry out this chapter in any fiscal year that 
remain after reserving amounts for use under subsection (c)--
            ``(1) 85 percent shall be available only for assistance 
        pursuant to section 5125(a) to public housing agencies that own 
        or operate 250 or more public housing dwelling units;
            ``(2) 10 percent shall be available only for assistance 
        pursuant to section 5125(b)(2) to public housing agencies that 
        own or operate fewer than 250 public housing dwelling units; 
        and
            ``(3) 5 percent shall be available only for assistance to 
        federally assisted low-income housing pursuant to section 
        5125(b)(3).
Any other provision of law enacted before or after the date of the 
enactment of the Housing and Community Development Act of 1994 that 
limits the authority of the Secretary to use amounts to carry out this 
chapter upon the apportionment of such amounts in a manner not provided 
for in this subsection shall not be effective.
    ``(b) Set-Aside for Technical Assistance.--Of any amount made 
available in fiscal years 1994 and 1995 to carry out this chapter, the 
Secretary shall use not more than $10,000,000 in each such fiscal year 
to provide technical assistance under section 5130.''.
    (h) Conforming Amendments.--The table of contents in section 5001 
of the Anti-Drug Abuse Act of 1988 (Public Law 100-690; 102 Stat. 4295) 
is amended--
            (1) by striking the item relating to the heading for 
        chapter 2 of subtitle C and inserting the following:

          ``Chapter 2--Community Partnerships Against Crime'';

            (2) by striking the item relating to section 5122 and 
        inserting the following new item:

``Sec. 5122. Purposes.'';
            (3) by striking the item relating to section 5125 and 
        inserting the following new item:

``Sec. 5125. Grant procedures.'';
        and
            (4) by striking the item relating to section 5130 and 
        inserting the following new items:

``Sec. 5130. Technical Assistance.
``Sec. 5131. Funding.''.

SEC. 116. PUBLIC HOUSING RESIDENT OPPORTUNITY.

    Section 20 of the United States Housing Act of 1937 (42 U.S.C. 
1437r) is amended--
            (1) by striking the section heading and inserting the 
        following new section heading:
            ``resident opportunity program'';
            (2) in the first 2 sentences of subsection (b), by striking 
        ``resident management program'' each place it appears and 
        inserting ``resident opportunity program''; and
            (3) in subsection (f)--
                    (A) by striking ``Resident Management Technical 
                Assistance and Training'' and inserting ``Resident 
                Opportunity Assistance'';
                    (B) in paragraph (1), by adding at the end the 
                following new sentences: ``In addition, the Secretary 
                may provide financial assistance to resident management 
                corporations or resident councils for activities 
                sponsored by resident organizations for job training, 
                economic development, security, and other self-
                sufficiency activities beyond those related to the 
                management of public housing. Any resident management 
                corporation or resident council may use such assistance 
                to enter into agreements with any local community 
                action agency receiving assistance under the Community 
                Services Block Grant Act for such agency to carry out 
                such activities.'';
                    (C) in paragraph (2), by striking ``$100,000'' and 
                inserting ``$250,000'';
                    (D) by striking paragraph (3) and inserting the 
                following new paragraph:
            ``(3) Funding.--Of any amounts made available for financial 
        assistance under section 14, the Secretary may use to carry out 
        this subsection $25,000,000 for fiscal year 1995 and 
        $25,000,000 for fiscal year 1996.'';
                    (E) by redesignating paragraphs (2) through (4) as 
                paragraphs (3) through (5), respectively; and
                    (F) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Other uses of assistance.--The Secretary may use 
        amounts available to carry out this subsection to enter into 
        contracts with--
                    ``(A) various entities for monitoring, evaluation, 
                technical assistance, and information dissemination in 
                connection with activities under this subsection; and
                    ``(B) resident organizations and public or private 
                entities (including local community action agencies 
                receiving assistance under the Community Services Block 
                Grant Act) for activities that support the economic 
                development and increased self-sufficiency of public 
                housing residents.
        Eligible activities related to economic development and self-
        sufficiency may include programs for counseling, treatment for 
        substance abuse, child care, remedial education, job training, 
        and development of resident businesses.''.

                Subtitle B--Section 8 Rental Assistance

SEC. 121. MERGER OF SECTION 8 RENTAL ASSISTANCE PROGRAMS.

    (a) In General.--Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f) is amended to read as follows:

          ``rental housing assistance for low-income families

    ``Sec. 8. (a) Authority and Purpose.--
            ``(1) In general.--For the purposes of aiding low-income 
        families in obtaining a decent place to live and promoting 
        economically mixed housing, the Secretary may provide 
        assistance payments with respect to existing housing in 
        accordance with the provisions of this section.
            ``(2) Elderly housing.--Notwithstanding any other provision 
        of this Act, assistance payments under this section may be 
        provided, in accordance with regulations prescribed by the 
        Secretary, with respect to some or all of the units in any 
        project approved pursuant to section 202 of the Housing Act of 
        1959 (as in effect before October 1, 1991).
    ``(b) Annual Contributions Contracts for Rental Assistance.--
            ``(1) In general.--The Secretary may enter into annual 
        contributions contracts under this subsection with public 
        housing agencies to provide rental housing assistance under 
        this section for low-income families. Such annual contributions 
        contracts shall bind the Secretary to make such authority, and 
        any amendments increasing such authority, available to the 
        public housing agency for a specified period.
            ``(2) Secretary acting as pha.--In areas where no public 
        housing agency has been organized or where the Secretary 
        determines that a public housing agency is unable to implement 
        the provisions of this section, the Secretary may enter into 
        such contracts and perform the other functions assigned to a 
        public housing agency by this section.
            ``(3) Treatment of assistance for supportive housing for 
        the disabled.--The Secretary may not consider the receipt by a 
        public housing agency of assistance under section 811(b)(1) of 
        the Cranston-Gonzalez National Affordable Housing Act, or the 
        amount received, in approving assistance under this section for 
        the agency or in determining the amount of such assistance to 
        be provided to the agency.
    ``(c) Assistance Contracts.--
            ``(1) In general.--Each public housing agency that receives 
        amounts under an annual contributions contract may enter into 
        assistance contracts to make rental assistance payments to 
        owners of existing dwelling units in accordance with the 
        provisions of this section.
            ``(2) PHA acting as owner.--A public housing agency may 
        contract to make rental assistance payments under this section 
        to itself (or any agency or instrumentality thereof) as the 
        owner of dwelling units, and the agency shall be subject to the 
        same program requirements as are applied to other owners. In 
        such cases, the Secretary may establish initial rents within 
        applicable limits.
            ``(3) Inapplicable provisions.--Sections 5(e) and 6 and any 
        other provisions of this Act that are inconsistent with the 
        provisions of this section shall not apply to assistance 
        contracts entered into pursuant to this section.
    ``(d) Maximum Monthly Rent.--
            ``(1) In general.--Each assistance contract entered into 
        pursuant to this section shall establish the maximum monthly 
        rent (including utilities and all maintenance and management 
        charges) that the owner is entitled to receive for each 
        dwelling unit for which rental assistance payments are to be 
        made under the contract. Except as provided in paragraph (2), 
        the maximum monthly rent shall not exceed by more than 10 
        percent the fair market rental under subsection (e) for the 
        market area in which the dwelling unit is located. If units 
        assisted under this section are exempt from local rent control 
        while they are so assisted or otherwise, the maximum monthly 
        rent for such units shall be reasonable in comparison with 
        other units in the market area that are exempt from local rent 
        control.
            ``(2) Exception.--The maximum monthly rent may exceed the 
        fair market rental--
                    ``(A) by more than 10 but not more than 20 percent, 
                but only if the Secretary determines that special 
                circumstances warrant such higher maximum rent or that 
                such higher rent is necessary to the implementation of 
                a comprehensive housing affordability strategy under 
                section 105 of the Cranston-Gonzalez National 
                Affordable Housing Act; or
                    ``(B) by such higher amount, only if requested by 
                the low-income family assisted and approved by the 
                public housing agency in accordance with subsection 
                (f)(2).
            ``(3) Annual adjustments.--Each assistance contract shall 
        provide for adjustment in the maximum monthly rents for units 
        covered by the contract not less than annually to reflect 
        changes in the fair market rentals established under subsection 
        (e) for the housing area for similar types and sizes of 
        dwelling units or, if the Secretary determines, on the basis of 
        a reasonable formula.
            ``(4) Adjustments due to expenses.--Each assistance 
        contract shall further provide for the Secretary to make 
        additional adjustments in the maximum monthly rent for units 
        assisted under the contract to the extent the Secretary 
        determines such adjustments are necessary to reflect changes in 
        the actual and necessary expenses of owning and maintaining the 
        units that have resulted from substantial general changes in 
        real property taxes, utility rates, or similar costs that are 
        not adequately compensated for by the adjustment in the maximum 
        monthly rent authorized by paragraph (3). The Secretary shall 
        make additional adjustments in the maximum monthly rent for 
        units under contract (subject to the availability of 
        appropriations for contract amendments) to the extent the 
        Secretary determines such adjustments are necessary to reflect 
        changes in the actual and necessary expenses of owning and 
        maintaining the units that have resulted from the expiration of 
        a real property tax exemption.
            ``(5) Adjustments due to criminal activity.--If the 
        Secretary determines that a project assisted under this section 
        is located in a community where criminal activity is generally 
        prevalent and the operating, maintenance, and capital repair 
        expenses for the project have been substantially increased 
        primarily as a result of the prevalence of such activity, the 
        Secretary may (at the discretion of the Secretary and subject 
        to the availability of appropriations for contract amendments 
        for this purpose), on a project-by-project basis, provide 
        adjustments to the maximum monthly rents, to a level not 
        exceeding 120 percent of the project rents, to cover the costs 
        of maintenance, security, capital repairs, and reserves 
        required for the owner to carry out a strategy acceptable to 
        the Secretary for addressing the problem of criminal activity. 
        The Secretary may waive the applicability of any rent 
        comparability standard required under this subsection to 
        implement this paragraph.
            ``(6) Adjustments due to lead-based paint reduction for 
        housing receiving project-based assistance.--The Secretary may 
        (at the discretion of the Secretary and subject to the 
        availability of appropriations for contract amendments), on a 
        project-by-project basis for projects receiving project-based 
        assistance, provide adjustments to the maximum monthly rents to 
        cover the costs of evaluating and reducing lead-based paint 
        hazards, as defined in section 1004 of the Residential Lead-
        Based Paint Hazard Reduction Act of 1992.
            ``(7) Limitations on adjustments.--
                    ``(A) General comparability rule.--Adjustments in 
                the maximum rents under paragraphs (3) through (6) 
                shall not result in material differences between the 
                rents charged for assisted units and unassisted units 
                of similar quality, type, and age in the same market 
                area, as determined by the Secretary.
                    ``(B) Comparability studies.--
                            ``(i) To carry out subparagraph (A), the 
                        Secretary shall issue regulations to provide 
                        for conducting comparability studies for 
                        projects where the Secretary has reason to 
                        believe that the application of the formula 
                        adjustments under paragraph (3) would result in 
                        such material differences. The Secretary shall 
                        conduct such studies upon the request of any 
                        owner of any project, or as the Secretary 
                        determines to be appropriate by establishing, 
                        to the extent practicable, a modified annual 
                        adjustment factor for such market area, as the 
                        Secretary shall designate, that is 
                        geographically smaller than the applicable 
                        housing area used for the establishment of the 
                        annual adjustment factor under paragraph (3). 
                        The Secretary shall establish such modified 
                        annual adjustment factor on the basis of the 
                        results of a study conducted by the Secretary 
                        of the rents charged, and any change in such 
                        rents over the previous year, for assisted 
                        units and unassisted units of similar quality, 
                        type, and age in the smaller market area. Where 
                        the Secretary determines that such modified 
                        annual adjustment factor cannot be established 
                        or that such factor when applied to a 
                        particular project would result in material 
                        differences between the rents charged for 
                        assisted units and unassisted units of similar 
                        quality, type, and age in the same market area, 
                        the Secretary may apply an alternative 
                        methodology for conducting comparability 
                        studies in order to establish rents that are 
                        not materially different from rents charged for 
                        comparable unassisted units.
                            ``(ii) If the Secretary or appropriate 
                        State agency does not complete and submit to 
                        the project owner a comparability study not 
                        later than 60 days before the anniversary date 
                        of the assistance contract under this section, 
                        the automatic annual adjustment factor shall be 
                        applied. The Secretary may not reduce the 
                        contract rents in effect on or after April 15, 
                        1987, for newly constructed, substantially 
                        rehabilitated, or moderately rehabilitated 
                        projects assisted under this section (including 
                        projects assisted under this section as in 
                        effect prior to November 30, 1983), unless the 
                        project has been refinanced in a manner that 
                        reduces the periodic payments of the owner. Any 
                        maximum monthly rent that has been reduced by 
                        the Secretary after April 14, 1987, and prior 
                        to November 7, 1988, shall be restored to the 
maximum monthly rent in effect on April 15, 1987.
                            ``(iii) For any project which has had its 
                        maximum monthly rents reduced after April 14, 
                        1987, the Secretary shall make assistance 
                        payments (from amounts reserved for the 
                        original contract) to the owner of such project 
                        in an amount equal to the difference between 
                        the maximum monthly rents in effect on April 
                        15, 1987, and the reduced maximum monthly 
                        rents, multiplied by the number of months that 
                        the reduced maximum monthly rents were in 
                        effect.
    ``(e) Fair Market Rentals.--
            ``(1) In general.--The Secretary shall establish fair 
        market rentals under this subsection periodically, but not less 
        than annually, for existing rental dwelling units suitable for 
        occupancy by low-income families assisted under this section. 
        The Secretary shall establish the fair market rental by housing 
        market area for various sizes and types of dwelling units. For 
        a market area, the fair market rental for any size and type of 
        dwelling unit shall be a dollar amount not less than the amount 
        that results in the rents charged for 45 percent of the 
        standard quality rental units of such size and type in the 
        market area being less than such dollar amount. For purposes of 
        determining the dollar amount under the preceding sentence, the 
        Secretary shall consider only rental units occupied by recent 
        movers and shall not consider public housing units, units for 
        which market rents cannot be determined, and newly constructed 
        units.
            ``(2) Effectiveness and adjustment.--The Secretary shall 
        publish proposed fair market rentals for each area in the 
        Federal Register with reasonable time for public comment, and 
        such fair market rentals shall become effective upon the date 
        of publication in final form in the Federal Register. Each fair 
        market rental in effect under this subsection shall be adjusted 
        to be effective on October 1 of each year to reflect changes, 
        based on the most recent available data trended so the rentals 
        will be current for the year to which they apply, of rents for 
        existing rental dwelling units, as the case may be, of various 
        sizes and types in the market area suitable for occupancy by 
        families assisted under this section.
            ``(3) Certain areas.--The Secretary shall establish 
        separate fair market rentals under this subsection for 
        Westchester County in the State of New York. The Secretary 
        shall also establish separate fair market rentals under this 
        paragraph for Monroe County in the Commonwealth of 
        Pennsylvania. In establishing fair market rentals for the 
        remaining portion of the market areas in which Monroe County is 
        located, the Secretary shall establish the fair market rentals 
        as if such portion included Monroe County.
            ``(4) Required review.--If at any time, for any public 
        housing agency, more than 50 percent of the families on behalf 
        of whom assistance is provided under this section by the agency 
        are paying as rent more than the amount specified under section 
        3(a) (as authorized in subsection (f)(2)), the agency shall 
        review the fair market rentals established under this 
        subsection for the market areas in the jurisdiction of the 
        public housing agency.
    ``(f) Amount of Monthly Assistance Payment and Due Process 
Rights.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        amount of the monthly assistance payment under this section 
        with respect to any dwelling unit shall be the difference 
        between the maximum monthly rent that the contract provides 
        that the owner is to receive for the unit and the rent the 
        family is required to pay under section 3(a).
            ``(2) Increased family payment.--A family on behalf of whom 
        tenant-based assistance payments are made under this section 
        may pay as rent for a dwelling unit assisted under this section 
        more than the amount specified under section 3(a), but only 
        if--
                    ``(A) the family notifies the public housing agency 
                of its interest in a unit renting for an amount that 
                exceeds the permissible maximum monthly rent 
                established for the market area under subsection (d);
                    ``(B) such agency determines that the rent for the 
                unit and the rental payments of the family are 
                reasonable, after taking into account other family 
                expenses (including child care, unreimbursed medical 
                expenses, transportation, and other appropriate family 
                expenses;
                    ``(C) such amount does not exceed 40 percent of the 
                family's monthly adjusted income; and
                    ``(D) the public housing agency has first exercised 
                any authority under paragraphs (1) and (2)(A) of 
                subsection (d) to increase the maximum monthly rent for 
                the dwelling unit.
        The amount of the monthly assistance payment under this section 
        with respect to a dwelling unit for a family paying rent as 
        provided in this paragraph shall be the difference between an 
        amount based on the fair market rent and the rent the family is 
        required to pay under section 3(a).
            ``(3) Increases in assistance payments.--The Secretary 
        shall take any action necessary, including making contracts for 
        assistance payments in amounts exceeding the amounts required 
        upon the initial renting of dwelling units, reserving annual 
        contributions authority for the purpose of amending assistance 
        contracts, or allocating a portion of new authorizations for 
        the purpose of amending assistance contracts, to ensure that 
        assistance payments are increased on a timely basis to cover 
        increases in maximum monthly rents or decreases in family 
        incomes.
            ``(4) Reviews of family incomes.--
                    ``(A) In general.--Reviews of family incomes for 
                purposes of this section shall be made annually and 
                shall be subject to the provisions of section 904(e) of 
                the Stewart B. McKinney Homeless Assistance Amendments 
                Act of 1988. For families for whom an increased rental 
                payment has been approved under paragraph (2), such 
                review shall include determining whether the rent for 
                the unit and the rental payments of the family continue 
                to be reasonable, in accordance with subparagraphs (B) 
                and (C) of paragraph (2).
                    ``(B) Procedures.--The Secretary shall establish 
                procedures that are appropriate and necessary to ensure 
                that income data provided to public housing agencies 
                and owners by families applying for or receiving 
                assistance under this section is complete and accurate.
                    ``(C) Confidentiality.--Any income information 
                received pursuant to this paragraph shall remain 
                confidential and shall be used only for the purpose of 
                verifying incomes in order to determine eligibility of 
                families for benefits (and the amount of such benefits, 
                if any) under this section.
            ``(5) Due process rights in cases of adverse action.--In 
        the case of any action proposed to be taken by a public housing 
        agency, any family receiving assistance under this section 
        adversely affected by such action shall have the right to at 
        least the basic elements of due process with regard to such 
        action, as follows:
                    ``(A) Written notice of the intended adverse action 
                and the reason for such action shall be provided to the 
                family not less than 30 days before the action is to be 
                taken, or, in a case where the health or safety of 
                other families is threatened, a reasonable period of 
                time considering the seriousness of the situation (but 
                not to exceed 30 days).
                    ``(B) The family shall have the right to request a 
                hearing within 30 days after receipt of the notice.
                    ``(C) The family shall have the right to a hearing 
                before an impartial hearing officer.
                    ``(D) The family shall have the right to be 
                represented at the hearing by an attorney or other 
                advocate.
                    ``(E) The family shall have the right to examine 
                the evidence supporting the action and all evidence 
                that the public housing agency intends to use.
                    ``(F) The family shall have the right to present 
                testimonial and documentary evidence and to cross-
                examine adverse witnesses.
                    ``(G) The hearing officer shall issue a written 
                decision, which shall be based solely upon the evidence 
                introduced at the hearing and which shall state the 
                basis of the decision.
    ``(g) Eligibility of Units for Assistance.--
            ``(1) Occupancy status.--Each assistance contract shall 
        provide that assistance payments may be made only with respect 
        to the following dwelling units:
                    ``(A) Occupied units.--A dwelling unit under lease 
                for occupancy by a family determined to be a low-income 
                family at the time it initially occupies the dwelling 
                unit or by a family that qualifies to receive 
                assistance under this section pursuant to section 223 
                or 226 of the Low-Income Housing Preservation and 
                Resident Homeownership Act of 1990.
                    ``(B) Unoccupied units.--An unoccupied dwelling 
                unit, but only if--
                            ``(i)(I) a family vacates the dwelling unit 
                        before the expiration date of the lease for 
                        occupancy, or (II) a good faith effort is being 
                        made to fill the unoccupied unit; and
                            ``(ii) the costs of such vacancy are not 
                        charged to or paid by the family vacating the 
                        dwelling unit.
                Payments for units referred to in this subparagraph may 
                be made only for a period not exceeding 60 days, except 
                that such payments may be made, in the case of a newly 
                constructed or substantially rehabilitated project, 
                after the expiration of such 60-day period in an amount 
                equal to the debt service attributable to such an 
                unoccupied dwelling unit for a period not to exceed one 
                year, if a good faith effort is being made to fill the 
                unit and the unit provides decent, safe, and sanitary 
                housing. No such payment may be made after the 
                expiration of such 60-day period if the Secretary 
                determines that the dwelling unit is in a project which 
                provides the owner with revenues exceeding the costs 
                incurred by such owner with respect to such project.
            ``(2) Owner's status.--A public housing agency shall not 
        approve the rental of a dwelling unit if the owner--
                    ``(A) is debarred, suspended, or subject to limited 
                denial of participation under part 24 of title 24, Code 
                of Federal Regulations; or
                    ``(B) has been convicted of drug trafficking.''
    ``(h) Other Provisions of Assistance Contracts.--Contracts to make 
assistance payments entered into by any public housing agency (or by 
the Secretary) with an owner of existing housing units shall meet the 
following requirements:
            ``(1) Contract term.--Each assistance contract shall have a 
        term of not less than one month nor more than 180 months. The 
        Secretary shall permit public housing agencies to enter into 
        assistance contracts having terms of less than 12 months to the 
        extent necessary to avoid disruption in assistance to eligible 
        families if the annual contributions contract for the agency 
        under subsection (b) will expire within 1 year.
            ``(2) Preferences.--Each assistance contract shall provide 
        that, in making assistance available pursuant to the contract--
                    ``(A) for not less than 70 percent of the families 
                who initially receive project-based assistance, and
                    ``(B) for not less than 90 percent of the families 
                who initially receive tenant-based assistance in any 1-
                year period,
        preference shall be given to families that (i) occupy 
        substandard housing (including families that are homeless or 
        living in a shelter for homeless families), (ii) are paying 
        more than 50 percent of family income for rent, or (iii) are 
        involuntarily displaced (including displacement because of 
        disposition of a multifamily housing project under section 203 
        of the Housing and Community Development Amendments of 1978) at 
        the time they are seeking assistance under this section.
            ``(3) Secondary preferences.--Each assistance contract 
        shall provide that, for any assistance remaining in any 1-year 
        period after assistance is made available pursuant to paragraph 
        (2), preference for such assistance shall be given to families 
        who qualify under a system of local preferences established by 
        the public housing agency in writing and after public hearing 
        to respond to local housing needs and priorities, which may 
        include--
                    ``(A) assisting very low-income families who either 
                reside in transitional housing assisted under title IV 
                of the Stewart B. McKinney Homeless Assistance Act or 
                participate in a program designed to provide public 
                assistance recipients with greater access to employment 
                and educational opportunities;
                    ``(B) assisting families in accordance with 
                subsection (q)(1)(B);
                    ``(C) assisting families identified by local public 
                agencies involved in providing for the welfare of 
                children as having a lack of adequate housing that is a 
                primary factor in the imminent placement of a child in 
                foster care, or in preventing the discharge of a child 
                from foster care and reunification with his or her 
                family;
                    ``(D) assisting youth, upon discharge from foster 
                care, in cases in which return to the family or 
                extended family or adoption is not available;
                    ``(E) assisting veterans who are eligible and have 
                applied for assistance, will use the assistance for a 
                dwelling unit designed for the handicapped, and, upon 
                discharge or eligibility for discharge from a hospital 
                or nursing home, have physical disability which, 
                because of the configuration of their homes, prevents 
                them from access to or use of their homes; and
                    ``(F) achieving other objectives of national 
                housing policy as established by law.
            ``(4) Tenant selection.--Each assistance contract shall 
        provide that the selection of tenants for such dwelling units 
        shall be the function of the owner, subject to any provisions 
        of the annual contributions contract between the Secretary and 
        the agency. The owner shall use tenant selection criteria, 
        which shall provide as follows:
                    ``(A) Prohibition of persons engaged in drug 
                activity.--The criteria shall prohibit any individual 
                or family evicted from housing assisted under this Act 
                by reason of drug-related criminal activity from having 
                a preference under any provision of this paragraph for 
                3 years unless the evicted tenant successfully 
                completes a rehabilitation program approved by the 
                agency or owner. The agency or the owner may waive the 
                application of the preceding sentence under standards 
                established by the Secretary, which shall provide for 
                such waiver for any member of a family of an individual 
                prohibited from tenancy under this subparagraph who the 
                agency or owner determines clearly did not participate 
                in and had no knowledge of such criminal activity or 
                when circumstances leading to eviction no longer exist.
                    ``(B) Other requirements for project-based 
                assistance.--With respect only to project-based 
                assistance, the criteria shall--
                            ``(i) be consistent with the purpose of 
                        improving housing opportunities for very low-
                        income families;
                            ``(ii) be reasonably related to program 
                        eligibility and an applicant's ability to 
                        perform the obligations of the assisted lease;
                            ``(iii) be established in writing; and
                            ``(iv) provide for the owner to promptly 
                        provide to any rejected applicant (I) written 
                        notice of the grounds for the rejection, and 
                        (II) an opportunity to meet with the decision 
                        maker to evaluate the validity of the reasons 
                        for rejection and rectify any erroneous 
                        decisions.
            ``(5) Lease provisions.--Each assistance contract shall 
        provide that the lease between the tenant of any unit and the 
        owner--
                    ``(A) shall be for at least one year or the term of 
                such assistance contract, whichever is shorter;
                    ``(B) shall contain other terms and conditions 
                specified by the Secretary, including provisions 
                meeting the requirements of paragraphs (6), (7), and 
                (8); and
                    ``(C) shall be in a standard form which is used in 
                the local housing market area by the owner and which 
                applies generally to tenants in the property who are 
                not assisted under this section, together with any 
                addendum necessary to include in the lease the 
                provisions required under subparagraph (B).
            ``(6) General grounds for termination of tenancy.--Each 
        assistance contract shall provide that the owner shall not 
        terminate the tenancy of the tenant of any unit except for 
        serious or repeated violation of the terms and conditions of 
        the lease, for violation of applicable Federal, State, or local 
        law, or for other good cause. The withholding of assistance 
        payments for a dwelling unit pursuant to paragraph (10) shall 
        not constitute good cause for termination of the tenancy of the 
        tenant of the unit.
            ``(7) Termination for activity.--Each assistance contract 
        shall provide that any criminal activity that threatens the 
        health, safety, or right to peaceful enjoyment of the premises 
        by other tenants, any activity that threatens the health, 
        safety, or right to peaceful enjoyment of their residences by 
        persons residing in the immediate vicinity of the premises, or 
        any drug-related criminal activity on or near such premises, 
        engaged in by a tenant of any unit, any member of the tenant's 
        household, or any guest or other person under the tenant's 
        control, shall be cause for termination of tenancy.
            ``(8) Notice of termination of tenancy.--Each assistance 
        contract shall provide that before terminating the tenancy of 
        any tenant, the owner shall provide written notice to the 
        tenant specifying the legal and factual grounds for such 
        action, which shall be provided in accordance with any 
        requirements under State or local law.
            ``(9) Maintenance and replacement.--Each assistance 
        contract shall provide that maintenance and replacement 
        (including redecoration) shall be performed in accordance with 
        the standard practice for the building concerned as established 
        by the owner and agreed to by the agency (or the Secretary). 
        With the approval of the Secretary, the public housing agency 
        administering a contract under this section with respect to 
        existing housing units may exercise all management and 
        maintenance responsibilities with respect to the units pursuant 
        to a contract between such agency and the owner of such units.
            ``(10) Housing quality standards.--
                    ``(A) Inspection.--The Secretary shall require 
                (with respect to any unit) that (A) the public housing 
                agency inspect the unit before any assistance payment 
                may be made to determine that it meets housing quality 
                standards for decent, safe, and sanitary housing 
                established by the Secretary for the purpose of this 
                section, and (B) the public housing agency make annual 
                or more frequent inspections during the contract term. 
                No assistance payment may be made for a dwelling unit 
                which fails to meet such quality standards, unless any 
                such failure is promptly corrected by the owner and the 
                correction verified by the public housing agency.
                    ``(B) Failure to correct serious noncompliance.--If 
                any serious noncompliance with such standards is not 
                corrected within a reasonable period of time after such 
                notification, the agency (or the Secretary) may 
                withhold some or all of the assistance amounts under 
                this section with respect to the unit and promptly--
                            ``(i) use such amounts to make necessary 
                        repairs or contract to have such repairs made;
                            ``(ii) release any withheld amounts to the 
                        owner after repairs are made by the owner, in 
                        an amount not exceeding the cost of the 
                        repairs; or
                            ``(iii) release any withheld amounts to the 
                        applicable State or local housing agency after 
                        repairs are made by such agency, in an amount 
                        not exceeding the cost of the repairs.
            ``(11) Standards and obligations of residency in housing 
        receiving project-based assistance.--Each assistance contract 
        for project-based assistance under subsection (i) shall provide 
        that the owner shall ensure and maintain compliance with 
        subtitle C of title VI of the Housing and Community Development 
        Act of 1992 and any regulations issued under such subtitle.
            ``(12) Service coordinators.--In determining the amount of 
        assistance provided under an assistance contract for tenant-
        based assistance under this paragraph, the Secretary may 
        increase the amount annually provided with respect to such 
        project to provide for the costs of employing or otherwise 
        retaining the services of one or more service coordinators 
        under section 671 of the Housing and Community Development Act 
        of 1992 to coordinate the provision of any services within the 
        project for residents of the project who are elderly or 
        disabled families.
            ``(13) Other.--Each assistance contract shall provide that 
        the agency and the owner shall carry out such other appropriate 
        terms and conditions as may be mutually agreed to by the agency 
        and owner.
    ``(i) Project-Based Assistance.--
            ``(1) Authority.--Pursuant to an annual contributions 
        contract entered into under subsection (b), a public housing 
        agency may enter into a assistance contract providing for 
        assistance payments under this section that are attached to a 
        structure.
            ``(2) Requirements.--Any public housing agency may approve 
        project-based assistance under this subsection with respect to 
        any or all of the assistance provided by the public housing 
        agency if--
                    ``(A) the owner agrees to rehabilitate the 
                structure other than with assistance under this Act and 
                the owner otherwise complies with the requirements of 
                this section; and
                    ``(B) in the case of any newly constructed 
                structure, the owner or prospective owner agrees to 
                construct the structure other than with assistance 
                under this Act and otherwise complies with the 
                requirements of this section.
            ``(3) Long-term affordability.--
                    ``(A) In general.--In the case of an assistance 
                contract for project-based assistance under this 
                subsection, a public housing agency shall enter into a 
                contract with an owner, contingent upon the future 
                availability of appropriations for the purpose of 
                renewing expiring contracts for assistance payments as 
                provided in appropriations Acts, to extend the term of 
                the underlying assistance contract for such period or 
                periods as the Secretary determines to be appropriate 
                to achieve long-term affordability of the housing. The 
                contract shall obligate the owner to have the 
                extensions of the assistance contract accepted by the 
                owner and the owner's successors in interest.
                    ``(B) Term of assistance for low-income housing 
                preservation.--The contract for assistance may, at the 
                option of the public housing agency, have an initial 
                term not exceeding 15 years for any assistance that is 
                attached--
                            ``(i) to projects assisted under a State 
                        program that permits the owner of the projects 
                        to prepay a State assisted or subsidized 
                        mortgage on the structure; and
                            ``(ii) for the purpose of providing 
                        incentives to owners to preserve such projects 
                        for occupancy by low- and moderate-income 
                        families (for the period that assistance under 
                        this subparagraph is available) and assisting 
                        low-income tenants to afford any increases in 
                        rent that may be required to induce the owner 
                        to maintain occupancy in the project by low- 
                        and moderate-income tenants.
                Any assistance provided to low-income tenants in the 
                manner described in this subparagraph shall not be 
                considered for purposes of the limitation under 
                subsection (h)(2) regarding the percentage of families 
                that may receive assistance under this section who do 
                not qualify for preferences under such subsection.
            ``(4) Service coordinators.--In determining the amount of 
        assistance provided under an assistance contract for project-
        based assistance under this subsection or a contract for 
        assistance for housing constructed or substantially 
        rehabilitated pursuant to assistance provided under section 
        8(b)(2) of this Act (as such section existed before October 1, 
        1983), the Secretary may increase the amount annually provided 
        with respect to such project to provide for the costs of 
        employing or otherwise retaining the services of one or more 
        service coordinators under section 671 of the Housing and 
        Community Development Act of 1992 to coordinate the provision 
        of any services within the project for residents of the project 
        who are elderly or disabled families.
    ``(j) Termination of Assistance Contracts.--
            ``(1) Termination of tenant-based assistance.--
                    ``(A) Notice by owner.--Any owner terminating any 
                assistance contract under this section for tenant-based 
                assistance shall provide written notice to the public 
                housing agency and the tenants involved of the proposed 
                termination not less than 30 days before the 
                termination of the contract. The notice shall specify 
                the date of the termination and the reasons for the 
                termination, with detail sufficient to enable the 
                agency to evaluate whether the termination is lawful.
                    ``(B) Review of notice by pha.--The public housing 
                agency shall review the notice and issue a written 
                finding of the legality of the termination and the 
                reasons for the termination. Within 5 days after 
                issuance of the findings, the owner shall provide 
                written notice to each tenant of the decision, together 
                with the written findings of the agency regarding the 
termination.
            ``(2) Termination of project-based assistance contracts.--
                    ``(A) Notice by owner.--Any owner terminating any 
                assistance contract under subsection (i) for project-
                based assistance shall provide written notice to the 
                Secretary and the tenants involved of the proposed 
                termination not less than one year before the 
                termination of the contract. The notice shall specify 
                the date of the termination and the reasons for the 
                termination, with detail sufficient to enable the 
                Secretary to evaluate whether the termination is lawful 
                and whether additional actions can be taken by the 
                Secretary to avoid the termination. The notice shall 
                include a statement that the owner and the Secretary 
                may agree to a renewal of the contract, thus avoiding 
                the termination.
                    ``(B) Review of notice by secretary.--The Secretary 
                shall review the notice, shall consider whether 
                additional actions can be taken by the Secretary to 
                avoid the termination, and shall ensure a proper 
                adjustment of the contract rents for the project in 
                compliance with the requirements of subsection (d) and 
                subparagraph (C) of this subsection. The Secretary 
                shall issue a written finding of the legality of the 
                termination and the reasons for the termination, 
                including the actions considered or taken to avoid the 
                termination. Within 30 days after issuance of the 
                findings, the owner shall provide written notice to 
                each tenant of the decision, together with the written 
                findings of the Secretary regarding the termination. 
                The Secretary and the owner shall complete the actions 
                under this paragraph not later than the expiration of 
                the 9-month period beginning upon the date that the 
                owner provides written notice of termination under 
                subparagraph (A).
            ``(3) Adjustment of contract rent.--If an owner provides 
        notice of proposed termination under paragraph (1)(A) or (2)(A) 
        and the contract rent is less than the maximum monthly rent for 
        units assisted under this section, the Secretary shall adjust 
        the contract rent based on the maximum monthly rent for units 
        assisted under this section and the value of the low-income 
        housing.
            ``(4) Notice of rent increases.--Each assistance contract 
        for assistance under this section shall require the owner to 
        notify tenants at least 90 days before the expiration of the 
        contract of any rent increase which may occur as a result of 
        the expiration of such contract.
            ``(5) Definition of termination.--For purposes of this 
        subsection, the term `termination' means the expiration of the 
        assistance contract or the refusal of the owner to renew an 
        assistance contract, which shall include the termination of 
        tenancy by an owner for business reasons.
    ``(k) Rental Assistance for Manufactured Housing.--
            ``(1) In general.--The Secretary may enter into contracts 
        to make assistance payments under this subsection to assist 
        low-income families by making rental assistance payments on 
        behalf of any such family that utilizes a manufactured home as 
        its principal place of residence. In carrying out this 
        subsection, the Secretary may--
                    ``(A) enter into annual contributions contracts 
                with public housing agencies pursuant to which such 
                agencies may enter into assistance contracts to make 
                such assistance payments to the owners of such real 
                property, if such owners agree to make good faith 
                efforts to ensure that such property complies with 
                local health and safety standards for water and sewage 
                systems; or
                    ``(B) enter into such contracts directly with the 
                owners of such real property, if such owners agree to 
                make good faith efforts to ensure that such property 
                complies with local health and safety standards for 
                water and sewage systems.
            ``(2) Use of assistance.--Rental assistance payments under 
        this subsection may be made with respect to the rental of the 
        real property on which is located a manufactured home that is 
        owned by a low-income family or with respect to the rental by 
        such a family of a manufactured home and the real property on 
        which it is located.
            ``(3) Assistance for rental of manufactured home site.--
                    ``(A) Maximum monthly rent.--A contract entered 
                into pursuant to this paragraph shall establish the 
                maximum monthly rent (including maintenance and 
                management charges) that the owner is entitled to 
                receive for the space on which a manufactured home is 
                located and with respect to which assistance payments 
                are to be made. The maximum monthly rent shall not 
                exceed an amount approved or established by the 
                Secretary.
                    ``(B) Amount of monthly assistance payment.--The 
                amount of any monthly assistance payment with respect 
                to any family that rents real property that is assisted 
                under this paragraph, and on which is located a 
                manufactured home that is owned by such family shall be 
                the difference between the rent the family is required 
                to pay under section 3(a) and the sum of--
                            ``(i) the monthly payment made by such 
                        family to amortize the cost of purchasing the 
                        manufactured home;
                            ``(ii) the monthly utility payments made by 
                        such family, subject to reasonable limitations 
                        prescribed by the Secretary; and
                            ``(iii) the maximum monthly rent permitted 
                        with respect to the real property which is 
                        rented by such family for the purpose of 
                        locating its manufactured home;
                except that in no case may such assistance exceed the 
                total amount of such maximum monthly rent.
            ``(4) Assistance for rental of manufactured home and 
        site.--
                    ``(A) Maximum monthly rent.--Contracts entered into 
                pursuant to this paragraph shall establish the maximum 
                monthly rent permitted with respect to the manufactured 
                home and the real property on which it is located and 
                with respect to which assistance payments are to be 
                made. The maximum monthly rent shall not exceed an 
                amount approved or established by the Secretary.
                    ``(B) Amount of monthly assistance payment.--The 
                amount of any monthly assistance payment with respect 
                to any family that rents a manufactured home and the 
                real property on which it is located and that is 
                assisted under this paragraph shall be the difference 
                between the rent the family is required to pay under 
                section 3(a) and the sum of--
                            ``(i) the monthly utility payments made by 
                        such family, subject to reasonable limitations 
                        prescribed by the Secretary; and
                            ``(ii) the maximum monthly rent permitted 
                        with respect to the manufactured home and real 
                        property on which it is located.
            ``(5) Adjustment of maximum monthly rents.--The provisions 
        of paragraphs (3) through (7) of subsection (d) shall apply to 
        the adjustments of maximum monthly rents under this subsection.
            ``(6) Contract term.--Each contract entered into under the 
        subsection shall be for a term of not less than one month and 
        not more than 180 months; except that in any case in which the 
        manufactured home park is substantially rehabilitated or newly 
        constructed, such term may not be less than 240 months, nor 
        more than the maximum term for a manufactured home loan 
        permitted under section 2(b) of the National Housing Act.
            ``(7) Applicability.--The Secretary may carry out this 
        subsection without regard to whether the manufactured home park 
        is existing, substantially rehabilitated, or newly constructed.
            ``(8) Limitation on substantially rehabilitated and newly 
        constructed manufactured home parks.--In the case of any 
        substantially rehabilitated or newly constructed manufactured 
        home park containing spaces with respect to which assistance is 
        made under this subsection, the principal amount of the 
        mortgage attributable to the rental spaces within the park may 
        not exceed an amount established by the Secretary which is 
        equal to or less than the limitation for manufactured home 
        parks described in section 207(c)(3) of the National Housing 
        Act, and the Secretary may increase such limitation in high 
        cost areas in the manner described in such section.
            ``(9) Other requirements.--The Secretary may prescribe 
        other terms and conditions necessary for the purpose of 
        carrying out this subsection and that are consistent with the 
        purposes of this subsection.
    ``(l) Single Room Occupancy Facilities.--
            ``(1) Authority.--In making assistance available under this 
        section and assistance under section 441 and part V of subtitle 
        F of title IV of the Stewart B. McKinney Homeless Assistance 
        Act, the Secretary may provide assistance with respect to 
        residential properties in which some or all of the dwelling 
        units do not contain bathroom or kitchen facilities, if the 
        unit of general local government in which the property is 
        located and the local public housing agency certify to the 
        Secretary that the property complies with local health and 
        safety standards.
            ``(2) Waiver of limitations on assistance for single 
        persons.--The Secretary may waive, in appropriate cases, the 
        limitation and preference in section 3(b)(3)(A) with respect to 
        the assistance made available under this subsection.
    ``(m) Housing for Elderly and Disabled Families.--
            ``(1) Shared housing.--To assist elderly families and 
        disabled families (as defined in section 3(b)) who elect to 
        live in a shared housing arrangement in which they benefit as a 
        result of sharing the facilities of a dwelling with others in a 
        manner that effectively and efficiently meets their housing 
        needs and thereby reduces their costs of housing, the Secretary 
        shall permit assistance provided under this section to be used 
        by such families in such arrangements. In carrying out this 
        subsection, the Secretary shall issue minimum habitability 
        standards for the purpose of ensuring decent, safe, and 
        sanitary housing for such families while taking into account 
        the special circumstances of shared housing.
            ``(2) Priority for nonelderly disabled families.--In 
        allocating assistance under this section, a public housing 
        agency that serves more than one unit of general local 
        government may, at the discretion of the agency, give priority 
        to disabled families that are not elderly families.
            ``(3) Authority to provide preferences for the elderly and 
        reserve units for the disabled.--Notwithstanding subsection 
        (h)(2) or (3), an owner of a covered section 8 housing project 
        (as such term is defined in section 659 of the Housing and 
        Community Development Act of 1992) may give preference for 
        occupancy of dwelling units in the project, and reserve units 
        for occupancy, in accordance with subtitle D of title VI of the 
        Housing and Community Development Act of 1992.
    ``(n) Administrative Fees.--
            ``(1) Basic fee for tenant-based rental program.--The 
        Secretary shall establish a fee for the costs incurred by a 
        public housing agency in administering the program for rental 
        assistance under this section, which shall be, together with 
        other fees authorized under this subsection, included in any 
        amounts provided to the public housing agency under the annual 
        contributions contract for the agency. The amount of the fee 
        for each month for which a dwelling unit is covered by an 
        assistance contract shall be 8.2 percent of the fair market 
        rental established under subsection (e) for a 2-bedroom 
        existing rental dwelling unit in the market area of the public 
        housing agency. The Secretary may increase the fee if necessary 
        to reflect the higher costs of administering small programs and 
        programs operating over large geographic areas.
            ``(2) Other fees.--The Secretary shall also establish 
        reasonable fees (as determined by the Secretary) for--
                    ``(A) the costs of preliminary expenses that a 
                public housing agency documents it has incurred in 
                connection with new allocations of assistance under the 
                program for rental assistance under this section, which 
                shall not exceed $275 per unit assisted;
                    ``(B) the costs incurred in assisting families who 
                experience difficulty (as determined by the Secretary) 
                in obtaining appropriate housing under the program; and
                    ``(C) extraordinary costs approved by the 
                Secretary.
            ``(3) Budget compliance.--The Secretary may establish or 
        increase a fee in accordance with this subsection only to such 
        extent or in such amounts as are provided in appropriation 
        Acts.
            ``(4) Fees for 1995 and 1996.--Notwithstanding any other 
        provision of this subsection, the basic fee for the costs 
        incurred by a public housing agency in administering the 
        program for rental assistance under this section during fiscal 
        years 1995 and 1996 shall be equal to the fee determined for 
        fiscal year 1993 under section 11(a) of the HUD Demonstration 
        Act of 1993.
    ``(o) Portability of Assistance.--
            ``(1) Authority.--Except as provided in paragraphs (3) and 
        (4), any family on behalf of whom is provided tenant-based 
        rental assistance under this section and who moves to an 
        eligible dwelling unit located within the same State, or the 
        same or a contiguous metropolitan statistical area, as the 
        metropolitan statistical area within which is located the area 
        of jurisdiction of the public housing agency approving the 
        assistance for the family, may use such assistance to rent such 
        eligible dwelling unit.
            ``(2) Administration.--The public housing agency having 
        authority with respect to the dwelling unit to which a family 
        moves under this subsection shall have the responsibility of 
        carrying out the provisions of this section with respect to the 
        family. If no public housing agency has authority with respect 
        to the dwelling unit to which a family moves under this 
        subsection, the public housing agency approving the assistance 
        shall have such responsibility.
            ``(3) Local option to ensure minimum area residency.--At 
        the discretion of a public housing agency, the agency may 
        provide that a family not living within the jurisdiction of a 
        public housing agency at the time such family applies for or 
        receives assistance from the agency may use tenant-based rental 
        assistance under this section to rent an eligible dwelling unit 
        that is not located within the area of jurisdiction of the 
        agency approving the assistance only if, before such use, the 
        family has rented and occupied an eligible dwelling unit within 
        such original jurisdiction for not less than 12 consecutive 
        months using assistance provided by such agency.
            ``(4) Prohibition of portability in cases of lease 
        violation.--A family may not use tenant-based rental assistance 
        as provided in paragraph (1) if the family has moved from a 
        dwelling unit in violation of the lease for the dwelling unit.
            ``(5) Allocations due to portability.--In determining the 
        amount of rental assistance provided under an annual 
        contributions contract for any fiscal year, the Secretary shall 
        consider any reduction in the number of resident families 
        incurred by a public housing agency in the preceding fiscal 
        year as a result of the provisions of this subsection.
            ``(6) Provision of rental assistance for portability 
        purposes.--
                    ``(A) Amount.--To the extent amounts for assistance 
                under this section that are reserved under section 
                213(d)(4) of the Housing and Community Development Act 
                of 1974 are available in a fiscal year, the Secretary 
                shall provide rental assistance under this section in 
                accordance with this paragraph.
                    ``(B) Use.--Amounts provided for use under this 
                paragraph shall be used only to provide a public 
                housing agency with additional amounts (as determined 
                under subparagraph (C)) to provide assistance for 
                families on behalf of whom assistance is provided under 
                this section by another public housing agency and who 
                move into an eligible dwelling unit located within the 
                area of jurisdiction of the agency to receive 
                assistance under this paragraph.
                    ``(C) Requirement.--Amounts provided for use under 
                this paragraph may be made available to a public 
                housing agency in a fiscal year only if, during such 
                fiscal year, the agency has provided assistance 
                pursuant to the first sentence of paragraph (2) on 
                behalf of families who have moved into eligible 
                dwelling units located within the area of jurisdiction 
                of the agency in an amount not less than the lesser of 
                (i) 5 percent of the total amount received by the 
                agency for assistance under this section for the fiscal 
                year, or (ii) the amount necessary to assist 25 percent 
                of the average annual number of families previously 
                assisted by the agency who relinquish such assistance 
                in a year (based on the preceding 3 calendar years).
    ``(p) Prohibition of Discrimination.--In selecting families for the 
provision of assistance under this section, a public housing agency may 
not exclude or penalize a family solely because the family resides in a 
public housing project.
    ``(q) Special Uses of Rental Assistance.--
            ``(1) Assistance for residents of rehabilitated projects.--
        In the case of low-income families living in rental projects 
        rehabilitated under section 17 of this Act or section 533 of 
        the Housing Act of 1949 before rehabilitation--
                    ``(A) tenant-based rental assistance under this 
                section shall be provided for families who are required 
                to move out of their dwelling units because of the 
                physical rehabilitation activities or because of 
                overcrowding;
                    ``(B) at the discretion of each public housing 
                agency, tenant-based rental assistance under this 
                section may be provided for families who would have to 
                pay more than 30 percent of their adjusted income for 
                rent after rehabilitation whether they choose to remain 
                in, or to move from, the project; and
                    ``(C) the Secretary shall allocate tenant-based 
                rental assistance provided under this section to ensure 
                that sufficient resources are available to address the 
                physical or economic displacement, or potential 
                economic displacement, of existing tenants pursuant to 
                subparagraphs (A) and (B).
            ``(2) Loan management assistance.--
                    ``(A) In general.--The Secretary may provide 
                assistance under this section through a loan management 
                program to assist financially troubled multifamily 
                residential housing projects (i) subject to mortgages 
                that are insured under the National Housing Act or 
                mortgages that have been assigned to the Secretary, 
                (ii) that were held by the Secretary and have been 
                sold, and (iii) that were assisted under section 202 of 
                the Housing Act of 1959.
                    ``(B) Eligibility.--The eligibility of a 
                multifamily residential project for loan management 
                assistance under this paragraph shall be determined 
                without regard to whether the project is subsidized or 
                unsubsidized.
                    ``(C) Extension of contract.--The Secretary shall 
                extend any expiring contract entered into under this 
                section for loan management assistance or execute a new 
                contract for project-based loan management assistance, 
                if the owner agrees to continue providing housing for 
                low-income families during the term of the contract.
            ``(3) Assistance for family unification.--
                    ``(A) In general.--The Secretary may provide 
                assistance under this section to be used only in 
                connection with tenant-based assistance under this 
                section on behalf of any family (i) who is otherwise 
                eligible for such assistance, and (ii) who the public 
                child welfare agency for the jurisdiction has certified 
                is a family for whom the lack of adequate housing is a 
                primary factor in the imminent placement of the 
                family's child or children in out-of-home care or the 
                delayed discharge of a child or children to the family 
                from out-of-home care.
                    ``(B) Allocation.--Any amounts made available under 
                this paragraph shall be allocated by the Secretary 
                through a national competition among applicants based 
                on demonstrated need for assistance under this 
                paragraph. To be considered for assistance, an 
                applicant shall submit to the Secretary a written 
                proposal containing a report from the public child 
                welfare agency serving the jurisdiction of the 
                applicant that describes how a lack of adequate housing 
                in the jurisdiction is resulting in the initial or 
                prolonged separation of children from their families, 
                and how the applicant will coordinate with the public 
                child welfare agency to identify eligible families and 
                provide the families with assistance under this 
                paragraph.
                    ``(C) Definitions.--For purposes of this paragraph:
                            ``(i) Applicant.--The term `applicant' 
                        means a public housing agency.
                            ``(ii) Public child welfare agency.--The 
                        term `public child welfare agency' means the 
                        public agency responsible under applicable 
                        State law for determining that a child is at 
                        imminent risk of placement in out-of-home care 
                        or that a child in out-of-home care under the 
                        supervision of the public agency may be 
                        returned to his or her family.
                    ``(D) Report.--The Secretary shall include in each 
                annual report of the Secretary under section 8 of the 
                Department of Housing and Urban Development Act 
                information specifying the number of families assisted 
                pursuant to this paragraph during the preceding 2-year 
                period and the number of communities in which such 
                assistance was used, describing the extent of 
                cooperation between public housing agencies and public 
                child welfare agencies in timely identifying families 
                for which such assistance is appropriate and in 
                providing such assistance, and describing any 
                impediments to providing such assistance.
    ``(r) Renewal of Expiring Contracts.--
            ``(1) 5-year plan.--Not later than 30 days after the 
        beginning of each fiscal year, the Secretary shall publish in 
        the Federal Register a plan for reducing, to the extent 
        feasible, year-to-year fluctuations in the levels of budget 
        authority that will be required over the succeeding 5-year 
        period to renew expiring assistance contracts entered into 
        under this section after the enactment of the Housing and 
        Community Development Act of 1974. To the extent necessary to 
        carry out such plan and to the extent approved in 
        appropriations Acts, the Secretary is authorized to enter into 
        annual contributions contracts with terms of less than 60 
        months.
            ``(2) New construction and substantial rehabilitation 
        projects.--Subject only to the availability of budget authority 
        to carry out this paragraph and to the absence of owners 
        agreeing to enter into new contracts, the Secretary shall enter 
        into new contracts under subtitle D of title I of the Housing 
        and Community Development Act of 1994 to provide project-based 
        assistance for qualified housing (as such term is defined in 
        section 163 of such subtitle) to owners of such housing.
    ``(s) General Provisions.--
            ``(1) Pledging assistance contracts as security.--An owner 
        may pledge, or offer as security for any loan or obligation, an 
        assistance contract entered into pursuant to this section, but 
        only if such security is in connection with a project 
        constructed or rehabilitated pursuant to authority under this 
        section and the terms of the financing or any refinancing have 
        been approved by the Secretary.
            ``(2) Housing counseling for rental choice.--Each public 
        housing agency that provides rental housing assistance under 
        this section on behalf of low-income families shall notify such 
        assisted families of the availability of any entity in the 
        jurisdiction of the agency providing rental housing counseling 
        under section 106(a)(4) of the Housing and Urban Development 
        Act of 1968.
    ``(t) Definitions.--For purposes of this section:
            ``(1) Annual contributions contract.--The term `annual 
        contributions contract' means a contract under subsection (b) 
        between the Secretary and a public housing agency to provide 
amounts for rental assistance payments under this section to the public 
housing agency.
            ``(2) Assistance contract.--The term `assistance contract' 
        means a contract under subsection (c) between a public housing 
        agency (or the Secretary) and an owner to make rental 
        assistance payments under this section to the owner.
            ``(3) Debt service.--The term `debt service' means the 
        required payments for principal and interest made with respect 
        to a mortgage secured by housing assisted under this Act.
            ``(4) Drug-related criminal activity.--The term `drug-
        related criminal activity' means the illegal manufacture, sale, 
        distribution, use, or possession with intent to manufacture, 
        sell, distribute, or use, of a controlled substance (as such 
        term is defined in section 102 of the Controlled Substances 
        Act).
            ``(5) Owner.--The term `owner' means any private person or 
        entity, including a cooperative, an agency of the Federal 
        Government, or a public housing agency, having the legal right 
        to lease or sublease dwelling units, and such term shall 
        include any principals, general partners, primary shareholders, 
        and other similar participants in any entity owning a 
        multifamily housing project (as such term is defined in 
        subsection (p)(3)), as well as the entity itself.
            ``(6) Participating jurisdiction.--The term `participating 
        jurisdiction' means a State or unit of general local government 
        designated by the Secretary to be a participating jurisdiction 
        under title II of the Cranston-Gonzalez National Affordable 
        Housing Act.
            ``(7) Project-based assistance.--The term `project-based 
        assistance' means rental assistance under this section that is 
        attached to a structure pursuant to subsection (i).
            ``(8) Rent.--The terms `rent' and `rental' include, with 
        respect to members of a cooperative, the charges under the 
        occupancy agreements between such members and the cooperative.
            ``(9) Rental assistance.--The term `rental assistance' 
        means assistance provided under this section on behalf of low-
        income families for the rental of a dwelling unit.
            ``(10) Tenant-based assistance.--The term `tenant-based 
        assistance' means rental assistance under this section that is 
        not project-based assistance.''.
    (b) Conforming Amendments.--
            (1) United states housing act of 1937.--The United States 
        Housing Act of 1937 is amended--
                    (A) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), by 
                striking ``(other than a family assisted under section 
                8(o) or (y) or paying rent under section 8(c)(3)(B))'' 
                and inserting ``(other than a family assisted under 
                section 8(t) or paying rent under section 8(f)(2))'';
                    (B) in section 5 (42 U.S.C. 1437c)--
                            (i) in subsection (c)(7)(C), by striking 
                        ``section 8(b)(1)'' each place it appears and 
                        inserting ``section 8'';
                            (ii) in subsection (j)(1)(B)(i), by 
                        striking ``section 8(o)(6)'' and inserting 
                        ``section 8''; and
                            (iii) in subsection (j)(1)(D), by striking 
                        ``subsection (b) or (o) of'';
                    (C) in section 6(p)(1)(B) (42 U.S.C. 
                1437d(p)(1)(B)), by striking ``holding certificates and 
                vouchers'' and inserting ``eligible and approved for 
                assistance'';
                    (D) in section 21(b)(3)--
                            (i) by striking ``a certificate under 
                        section 8(b)(1) or a housing voucher under 
                        section 8(o)'' and inserting ``tenant-based 
                        assistance under section 8''; and
                            (ii) by striking ``such certificate'' and 
                        inserting ``such assistance'';
                    (E) in section 23--
                            (i) in subsection (a), by striking 
                        ``assistance under the certificate and voucher 
                        programs'' and inserting ``tenant-based 
                        assistance'';
                            (ii) in subsection (b)--
                                    (I) in paragraph (1), by striking 
                                ``assistance under subsection (b) or 
                                (o) of'' and inserting ``tenant-based 
                                assistance under''; and
                                    (II) in paragraph (4), by striking 
                                ``Assistance under the certificate or 
                                voucher programs'' and inserting 
                                ``Tenant-based assistance'';
                            (iii) in subsection (c)(1), by striking 
                        ``assistance under the certificate and voucher 
                        programs of'' and inserting ``tenant-based 
                        assistance from'';
                            (iv) in subsection (d)(3) (as added by 
                        section 185(b) of the Housing and Community 
                        Development Act of 1992 (Public Law 102-550; 
                        106 Stat. 3747)), by striking ``section 8(y)'' 
                        and inserting ``section 8(t)''; and
                            (v) in subsection (h)(1)--
                                    (I) by striking ``section 8(q) for 
                                the costs incurred in administering the 
                                provision of certificate and voucher'' 
                                and inserting ``section 8(n) for the 
                                costs incurred in administering the 
                                provision of tenant-based''; and
                                    (II) by striking ``section 
                                8(q)(2)(A)(i)'' and inserting ``section 
                                8(n)(2)(A)''; and
                    (G) in section 304(g)(3) (42 U.S.C. 1437aaa-
                3(g)(3)), by striking ``section 8(b)(2) and section 
                8(o)(9)'' and inserting ``section 8''.
            (2) Allocation of assisted housing funds.--Section 213 of 
        the Housing and Community Development Act of 1974 (42 U.S.C. 
        1439) is amended--
                    (A) in subsection (d)--
                            (i) in paragraph (1)(A)(ii), by striking 
                        ``section 8(b)(1)'' each place it appears and 
                        inserting ``section 8''; and
                            (ii) in paragraph (2), by striking 
                        ``section 8(d)'' and inserting ``section 
                        8(i)'';
                    (B) in subsection (e), by striking ``section 
                8(b)(1)'' and inserting ``section 8''.
            (3) Supportive housing for elderly families.--Section 
        801(d)(1)(B) of the Cranston-Gonzalez National Affordable 
        Housing Act (12 U.S.C. 1701q note) is amended by striking 
        ``section 8(c)(1)'' and inserting ``section 8(e)''.
            (4) Elderly independence.--Section 803 of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 8012) is 
        amended--
                    (A) in subsection (a), by striking ``housing 
                certificates and vouchers'' and inserting ``assistance 
                under section 8 of the United States Housing Act of 
                1937''; and
                    (B) in subsection (b)--
                            (i) in the 1st sentence, by striking ``not 
                        more than 1,500 incremental vouchers and 
                        certificates under sections 8(b) and 8(o) of 
                        the United States Housing Act of 1937'' and 
                        inserting ``incremental assistance under 
                        section 8 of the United States Housing Act of 
                        1937 on behalf of not more than 1,500 frail 
                        elderly persons'';
                            (ii) in the 3rd sentence, by striking ``the 
                        housing certificate or voucher program of the 
                        agency'' and inserting ``the agency's program 
                        for assistance under such section 8''; and
                            (iii) in the last sentence, by striking 
                        ``sections 8(b) and 8(o)'' and inserting 
                        ``section 8''.
            (5) Revised congregate housing services.--Section 
        802(k)(6)(B) of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 8011(k)(6)(B)) is amended by striking 
        ``subsection (d)(2)'' and inserting ``subsection (i)''.
            (6) Housing for persons with aids.--Subtitle D of title 
        VIII of the Cranston-Gonzalez National Affordable Housing Act 
        is amended--
                    (A) in section 859(a)(2) (42 U.S.C. 12908(a)(2)) by 
                striking ``section 8(p)'' each place it appears and 
                inserting ``section 8(m)(1)''; and
                    (B) in section 860(a) (42 U.S.C. 12909(a)), by 
                striking ``section 8(n)'' and inserting ``section 
                8(l)''.
            (7) McKinney act.--Section 441(b) of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11401(b)) is 
        amended--
                    (A) by striking ``section 8(n)'' and inserting 
                ``section 8(l)''; and
                    (B) by adding at the end the following new 
                sentence: ``Moderate rehabilitation under this section 
                shall be carried out in the manner provided under the 
                provisions of section 8(e) of the United States Housing 
                Act of 1937, as such section was in effect (pursuant to 
                section 289(b)(2) of the Cranston-Gonzalez National 
                Affordable Housing Act) immediately before the 
                enactment of the Housing and Community Development Act 
                of 1994.''.
            (8) Flexible subsidy program.--Section 201 of the Housing 
        and Community Development Amendments of 1978 (12 U.S.C. 1715z-
        1a) is amended--
                    (A) in subsection (m)(2)(A), by striking ``section 
                8(b)(1)'' and inserting ``section 8''; and
                    (B) in subsection (o), by striking ``section 8(v)'' 
                and inserting ``section 8(q)(2)''.
            (9) Hud-owned projects.--Section 203 of the Housing and 
        Community Development Amendments of 1978 (12 U.S.C. 1701z-11) 
        is amended--
                    (A) in subsection (e)(1)(D)--
                            (i) in clause (i)(IV), by inserting before 
                        the semicolon the following: ``, as such 
                        section was in effect (pursuant to section 
                        289(b)(2) of the Cranston-Gonzalez National 
                        Affordable Housing Act) immediately before the 
                        enactment of the Housing and Community 
                        Development Act of 1994''; and
                            (ii) in clause (ii), by striking ``section 
                        8(b)'' and inserting ``section 8'';
                    (B) in subsection (g)(2), by striking ``, 
                8(d)(1)(A)(i), and 8(o)(3)(B)'' and inserting `` and 
                8(h)(2)(iii)''; and
                    (C) in subsection (h)(2), by striking ``section 
                8(c)'' and inserting ``section 8(e)''.
            (10) Housing access.--Section 204 of the Housing and 
        Community Development Amendments of 1978 (12 U.S.C. 1701z-12) 
        is amended by striking ``to a holder of a certificate of 
        eligibility under that section solely because of such 
        prospective tenant's status as a certificate holder'' and 
        inserting ``to a family that is approved for assistance under 
        such section solely because of such family's status as assisted 
        under such section''.
            (11) ELIHPA of 1987.--The references in sections 
        225(b)(3)(D), 226(a)(3), and 228(a)(4) of the Emergency Low 
        Income Housing Preservation Act of 1987 (as in effect 
        immediately before the enactment of the Cranston-Gonzalez 
        National Affordable Housing Act) to section 8(b) of the United 
        States Housing Act of 1937 shall be considered to refer to 
        section 8(e) of the United States Housing Act of 1937 (as 
        amended by the Housing and Community Development Act of 1994).
            (12) LIHPRHA of 1990.--Title II of the Housing and 
        Community Development Act of 1987 (42 U.S.C. 4101 et seq.) is 
        amended--
                    (A) in section 215(a)--
                            (i) in paragraph (1), by striking ``section 
                        8(c)'' and inserting ``section 8(e)''; and
                            (ii) in paragraph (2), by striking 
                        ``section 8(c)(1)'' and inserting ``section 
                        8(e)(1)'';
                    (B) in section 220(d)(3)(B), by striking ``section 
                8(c)'' and inserting ``section 8(e)'';
                    (C) in section 222--
                            (i) in subsection (a)(2)(D), by striking 
                        ``section 8(c)'' and inserting ``section 
                        8(e)''; and
                            (ii) in subsection (d)(2)(C)(i), by 
                        striking ``sections 8(b) and 8(o) of the United 
                        States Housing Act of 1937 (other than project-
                        based assistance attached to the housing)'' and 
                        inserting ``tenant-based assistance under 
                        section 8 of the United States Housing Act of 
                        1937'';
                    (D) in section 223(a), by striking ``the 
                certificate and voucher programs under sections 8(b) 
                and 8(o)'' and inserting ``section 8''; and
                    (E) in section 226(b)(6)(B), by striking ``sections 
                8(d)(1)(A) and 8(o)(3)'' and inserting ``section 
                8(h)(2)''.
            (13) Disaster relief.--
                    (A) Tenant-based assistance.--Section 931 of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 1437c note) is amended--
                            (i) in the section heading, by striking 
                        ``certificates and vouchers'' and inserting 
                        ``tenant-based assistance''; and
                            (ii) by striking ``assistance under the 
                        certificate and voucher programs under sections 
                        8 (b) and (o)'' and inserting ``tenant-based 
                        assistance under section 8''.
                    (B) Moderate rehabilitation assistance.--Section 
                932 of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 1437c note) is amended by 
                inserting after ``such Act'' the following: ``, as such 
                section was in effect (pursuant to section 289(b)(2) of 
                the Cranston-Gonzalez National Affordable Housing Act) 
                immediately before the enactment of the Housing and 
                Community Development Act of 1994,''.
            (14) Public housing mincs demonstration.--Section 
        522(f)(6)(B) of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 1437f note) is amended--
                    (A) by striking ``assistance under section 8(b)'' 
                and inserting ``tenant-based assistance under section 
                8''; and
                    (B) by striking ``section 8(d)(1)(A)(i)'' and 
                inserting ``section 8(h)(2)''.
            (15) Public housing new construction income eligibility.--
        Section 545(c)(2) of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 1437f note) is amended by striking 
        ``section 8(d)(1)(A)(ii)'' and inserting ``section 8(h)(3)''.
            (16) Section 8 excessive rent burden data.--Section 550(b) 
        of the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 1437f note) is amended--
                    (A) in paragraph (1), by striking ``under the 
                certificate and voucher programs established'' and 
                inserting ``with tenant-based assistance'';
                    (B) in the first sentence of paragraph (2), by 
                striking ``, for each'' and all that follows through 
                ``participating in the program'' and inserting ``the 
                percentage of families receiving tenant-based 
                assistance''; and
                    (C) in paragraph (3), by striking ``assistance 
                under the certicate or voucher program'' and inserting 
                ``tenant-based assistance under section 8 of the United 
                States Housing Act of 1937''.
            (17) Rural housing preservation grants.--Section 533(a) of 
        the Housing Act of 1949 (42 U.S.C. 1490m) is amended by 
        striking ``assistance payments as provided by section 8(o)'' 
        and inserting ``tenant-based assistance payments under section 
        8 (including assistance in accordance with section 8(f)(2)''.
            (18) Federally assisted housing occupancy standards.--
        Section 643(b)(2) of the Housing and Community Development Act 
        of 1992 (42 U.S.C. 13603(b)(2)) is amended by striking 
        ``section 8(d)(1)'' and inserting ``section 8(h)''.
            (19) Reservation of section 8 units for disabled 
        families.--Section 655 of the Housing and Community Development 
        Act of 1992 (42 U.S.C. 13615) is amended by striking ``section 
        8(d)(1)(A)(i) of the United States Housing Act of 1937 and the 
        first sentence of section 8(o)(3)(B) of such Act'' and 
        inserting ``section 8(h)(2) of the United States Housing Act of 
        1937''.
            (20) GAO report on lead exposure.--Section 1056(a) of the 
        Housing and Community Development Act of 1992 (42 U.S.C. 4855) 
        is amended by striking ``subsections (b) and (o) of''.
            (21) National housing act.--The National Housing Act is 
        amended--
                    (A) in section 203(v) (12 U.S.C. 1709(v)), as added 
                by section 185(c)(1)(B) of the Housing and Community 
                Development Act of 1992, by striking ``section 8(y)'' 
                and inserting ``section 8(t)''; and
                    (B) in section 236(f)(5)(A)(i) (12 U.S.C. 1715z-
                1(f)(5)(A)(i)), by striking ``section 8(c)'' and 
                inserting ``section 8(e)''.
    (c) Applicability.--The amendments under this section are made on 
the date of the enactment of this Act, but shall apply on and after 
October 1, 1996, only to assistance under section 8 of the United 
States Housing Act of 1937 provided pursuant to an assistance contract 
entered into or renewed on or after such date. Any such assistance 
provided pursuant to an assistance contract entered into before such 
date shall be subject to the provisions of such section 8 as in effect 
immediately before the enactment of this Act or otherwise applicable to 
such assistance.
    (d) Transition.--
            (1) Conversion.--The Secretary may provide for the 
        conversion of assistance under the certificate and voucher 
        programs, as such programs existed before the date of the 
        enactment of this Act, to the certificate program established 
        under the amendments under this section.
            (2) Continuation of assistance.--The Secretary of Housing 
        and Urban Development shall take any action necessary to ensure 
        that the provision of assistance under section 8 of the United 
        States Housing Act of 1937 to families receiving assistance 
        under such section on the date of the enactment of this Act is 
        not interrupted because of the amendments under this section.
    (e) Regulations.--The Secretary shall implement the amendments 
under this section by regulation issued after notice and opportunity 
for public comment.
    (f) Housing Conseling for Homeownership and Rental Choice.--
            (1) Rental counseling.--Section 106(a) of the Housing and 
        Urban Development Act of 1968 (12 U.S.C. 1701x(a)) is amended 
        by adding at the end the following new paragraph:
    ``(4) Rental Counseling.--The Secretary of Housing and Urban 
Development may contract with national, State, or community-based 
entities (including local community action agencies receiving 
assistance under the Community Services Block Grant Act), and consortia 
of such entities, and local public or private organizations (including 
public housing agencies) to carry out counseling activities for current 
and prospective residents of public housing and housing assisted under 
section 8 of the United States Housing Act of 1937. Contractors shall 
be selected on a competitive basis, in accordance with selection 
criteria determined by the Secretary. The contractors shall carry 
activities prescribed by the Secretary. Each entity receiving 
assistance pursuant to this paragraph shall make counseling and 
assistance under this paragraph available to low-income families who 
are current or prospective residents of public housing and housing 
assisted under section 8 of the United States Housing Act of 1937, 
including counseling and assistance regarding housing opportunities in 
the area of jurisdiction of the public housing agency involved and 
assistance in obtaining new rental residences in areas within such 
jurisdiction not having high concentrations of persons living in 
poverty.''.
            (2) Notification.--Subparagraph (C) of section 106(c)(5) of 
        the Housing and Urban Development Act of 1968 (12 U.S.C. 
        1701x(c)(5)(C)) is amended to read as follows:
                    ``(C) Notification.--Notification under 
                subparagraph (A) shall not be required with respect to 
                any loan for which the eligible homeowner pays the 
                amount overdue before the expiration of the 45-day 
                period under subparagraph (B)(ii).''.

SEC. 122. INCENTIVES TO REFINANCE HIGH INTEREST MORTGAGES FOR SECTION 8 
              PROJECTS.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:
    ``(v) Refinancing Incentive.--For a project that (1) was 
constructed, substantially rehabilitated, or moderately rehabilitated 
under this section, (2) is subject to an assistance contract under this 
section, and (3) was subject to a mortgage that has been refinanced 
under section 223(a)(7) or section 223(f) of the National Housing Act 
to lower the periodic debt service payments of the owner, the Secretary 
may pay the owner the amount of the up front costs to the owner of 
refinancing. The Secretary may make such payments only from savings in 
the amount of assistance payments, as determined by the Secretary on a 
project-by-project basis and after application of amounts in accordance 
with section 1012 of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988, that result from the refinancing during the 
first year after the refinancing.''.

SEC. 123. USE OF EXCESS RESIDUAL RECEIPTS.

    (a) In General.--The Secretary of Housing and Urban Development 
shall, in conjunction with State housing agencies, under which the 
Secretary, at the request of owners of qualified projects, make amounts 
in the account for residual receipts or excess amounts for the 
qualified projects available for use to expand the supply of affordable 
housing.
    (b) Limitation.--The Secretary may not make any amounts available 
for use under this section from the account of a qualified project for 
residual receipts or excess amounts unless the amount remaining in the 
account, together with replacement reserves for the project, is 
sufficient (in the determination of the Secretary) to maintain, manage, 
and preserve the project as affordable housing.
    (c) Qualified Projects.--For purposes of this section, the term 
``qualified project'' means a housing project--
            (1) assisted with project-based assistance under section 8 
        of the United States Housing Act of 1937; or
            (2) 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 before November 
        30, 1983.

SEC. 124. RENEWAL OF EXPIRING SECTION 8 CONTRACTS.

    (a) Requirement.--Subject only to the availability of budget 
authority to carry out this section, not later than October 1, 1995, 
the Secretary of Housing and Urban Development shall make an offer to 
the owner of each housing project assisted under an expiring contract 
to extend the term of the expiring contract for 24 months beyond the 
date of the expiration of the contract.
    (b) Terms of Extension.--Except for terms or conditions relating to 
the duration of the contract, the terms and conditions under the 
extension provided pursuant to this subsection of any expiring contract 
shall be identical to the terms and conditions under the expiring 
contract.
    (c) Definition of Expiring Contract.--For purposes of this section, 
the term ``expiring contract'' means a contract for assistance pursuant 
to section 8(b)(2) of the United States Housing Act of 1937 (as such 
section existed before October 1, 1983) having a term that expires 
before October 1, 1996.
    (d) Displacement Assistance.--The Secretary of Housing and Urban 
Development may make available to tenants residing in units covered by 
an expiring contract that is not extended pursuant to this section 
either--
            (1) tenant-based assistance under section 8 of the United 
        States Housing Act of 1937; or
            (2) a unit with respect to which project-based assistance 
        is provided under section 8 of the United States Housing Act of 
        1937.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 125. TREATMENT OF CERTAIN PROJECTS.

    (a) Conversion of Section 23 Project.--From amounts available for 
the conversion of the Tamaqua Highrise project in the Borough of 
Tamaqua, Pennsylvania, from a leased housing contract under section 23 
of the United States Housing Act of 1937 to tenant-based assistance 
under section 8 of such Act, the Secretary of Housing and Urban 
Development shall, to the extent such amounts are made available in 
appropriation Acts, enter into an obligation for the conversion of the 
project to a project-based rental assistance contract under section 8 
of such Act, notwithstanding the requirement for rehabilitation or the 
percentage limitations under section 8(d)(2) of such Act (as in effect 
before the date of the enactment of this Act) and subparagraph (A) of 
section 8(i)(2) of such Act (as amended by section 143 of this Act).
    (b) Compliance With Rehabilitation Requirement.--Rehabilitation 
activities undertaken by E.T.C. Enterprises in connection with 16 
scattered-site dwelling units that were rehabilitated to provide 
housing for low-income families and are located in Perth Amboy, New 
Jersey, and rehabilitation activities undertaken by Pennrose Properties 
in connection with 40 dwelling units for senior citizens in the 
Providence Square development located in New Brunswick, New Jersey, are 
hereby deemed to have been conducted pursuant to the approval of and an 
agreement with the Secretary of Housing and Urban Development under 
clauses (i) and (ii) of the third sentence of section 8(d)(2)(A) of the 
United States Housing Act of 1937 (as in effect before the date of the 
enactment of this Act) and subparagraph (A) of section 8(i)(2) of such 
Act (as amended by section 143 of this Act).

                   Subtitle C--Homeownership Programs

SEC. 131. NATIONAL HOMEOWNERSHIP FUND.

    Subtitle A of title III of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12701 note) is amended to read as 
follows:

               ``Subtitle A--National Homeownership Fund

``SEC. 301. SHORT TITLE.

    ``This subtitle may be cited as the `National Homeownership Fund 
Act'.

``SEC. 302. AUTHORITY.

    ``The Secretary of Housing and Urban Development may make grants 
under this subtitle to States (including State housing finance 
agencies), local housing finance agencies, and nonprofit housing 
intermediaries to provide assistance, in accordance with the provisions 
of this subtitle, for the acquisition of principal residences for 
first-time homebuyers (including homebuyers buying shares in limited 
equity cooperatives).

``SEC. 303. ELIGIBLE ASSISTANCE.

    ``A grantee may use amounts received under this subtitle only to 
provide assistance to first-time homebuyers in the following manners:
            ``(1) Downpayment assistance.--Assistance payments to 
        provide amounts for the downpayment (including closing costs 
        and other costs payable at the time of closing) on a mortgage 
        for the homebuyer.
            ``(2) Second mortgage assistance.--Assistance payments to 
        provide loans that have such terms for payment of interest and 
        principal as may be determined by the grantee.
            ``(3) Capitalization of revolving loan funds.--To establish 
        revolving loan funds (or to make grants to public organizations 
        or agencies to establish such funds) to provide homeownership 
        assistance to eligible first-time homebuyers in accordance with 
        the provisions of this subtitle. Any grantee under this 
        subtitle (and any subgrantee of such a grantee) shall provide 
        an equal amount of local investment for such revolving loan 
        fund and any proceeds or repayments from loans made under this 
        paragraph shall be returned to the revolving loan fund 
        established under this paragraph to be used for purposes 
        related to this section.
            ``(4) Interest rate buydowns.--Assistance payments so that 
        the rate of interest payable on a mortgage by the homebuyer 
        does not exceed 6 percent.

``SEC. 304. ELIGIBILITY REQUIREMENTS.

    ``(a) Homebuyer.--Assistance may be provided only to homebuyers 
meeting the following requirements:
            ``(1) First-time homebuyer.--The homebuyer is an individual 
        who--
                    ``(A)(i) (and whose spouse) has had no ownership in 
                a principal residence during the 3-year period ending 
                on the date of purchase of the property with respect to 
                which assistance payments are made under this subtitle;
                    ``(ii) is a displaced homemaker who, except for 
                owning a home with his or her spouse or residing in a 
                home owned by the spouse, meets the requirements of 
                clause (i); or
                    ``(iii) is a single parent who, except for owning a 
                home with his or her spouse or residing in a home owned 
                by the spouse while married, meets the requirements of 
                clause (i); and
                    ``(B) meets the requirements of subparagraph (A) 
                (i), (ii), or (iii), except for owning, as a principal 
                residence, a dwelling unit whose structure is not 
                permanently affixed to a permanent foundation in 
                accordance with local or other applicable regulations.
            ``(2) Maximum income of homebuyer.--The aggregate annual 
        income of the homebuyer and the members of the family of the 
        homebuyer residing with the homebuyer, for the 12-month period 
        preceding the date of the application of the homebuyer for 
        assistance under this subtitle, does not exceed 115 percent of 
        the median income for a family of 4 persons (adjusted by family 
        size) in the applicable metropolitan statistical area (or such 
        other area that the Secretary determines for areas outside of 
        metropolitan statistical areas). The Secretary shall provide 
        for certification of such income for purposes of initial 
        eligibility for assistance payments under this subtitle.
    ``(b) Mortgage.--Assistance may be provided only for mortgages 
meeting the following requirements:
            ``(1) Principal residence.--The property subject to the 
        mortgage is a single-family residence or unit in a cooperative 
        (including any manufactured home park owned by residents or 
        owned by nonprofit organizations for future ownership by 
        residents) or condominium, or a single family residence located 
        on leased land owned by a community land trust, and is the 
        principal residence of the homebuyer.
            ``(2) Maximum mortgage amount.--The principal obligation of 
        the first mortgage and any second mortgage assistance provided 
        under this subtitle does not exceed the principal amount that 
        could be insured under section 203(b) of the National Housing 
        Act with respect to a property having the same number of 
        dwelling units.
    ``(c) Minimum Downpayment.--For first-time homebuyers to receive 
downpayment assistance under section 303(a)(1), the homebuyer shall 
have paid not less than 1 percent of the cost of acquisition of the 
property (excluding any mortgage insurance premiums paid at the time 
the mortgage is insured), as such cost is estimated by the Secretary.

``SEC. 305. COUNSELING REQUIREMENTS.

    ``Each grantee under this subtitle shall ensure that each homebuyer 
receiving assistance under this subtitle from the grantee (or any 
subgrantee of such grantee) shall be provided prepurchase and 
postpurchase homeownership counseling from individuals certified by the 
Secretary under section 106(e) of the Housing and Urban Development Act 
of 1968.

``SEC. 306. ALLOCATION OF GRANT AMOUNTS.

    ``(a) In General.--The Secretary may make a grant under this 
subtitle only to a State (including a State housing finance agency), 
local housing finance agency, or nonprofit housing intermediary that 
submits to the Secretary an application under this section that is 
approved by the Secretary. Applications shall be made in such form and 
in accordance with such procedures as the Secretary shall establish.
    ``(b) Minimum Requirements.--An application under this section 
shall contain a plan that describes how the applicant will achieve the 
objectives of this subtitle. The application shall include--
            ``(1) a description of the geographic area, including the 
        revitalization area included, to be covered by the program to 
        provide assistance under this subtitle;
            ``(2) the characteristics of the households to be served by 
        the program;
            ``(3) a description and evidence of the commitment of other 
        public and private resources to be made available in the 
        revitalization area and other areas in which homebuyers receive 
        assistance under this subtitle;
            ``(4) a description of any secondary market and private 
        mortgage insurance involvement and commitment in connection 
        with assistance under this subtitle;
            ``(5) a description of how prepurchase and postpurchase 
        counseling will be provided to homebuyers assisted under this 
        subtitle;
            ``(6) a description of any restrictions on resale and 
        profits;
            ``(7) a description of existing affordable housing programs 
        and resources available to undertake rehabilitation of 
        properties when needed;
            ``(8) a description of the process for award and 
        disbursement of assistance to homebuyers; and
            ``(9) a description of the history of the applicant in 
        undertaking similar projects.
    ``(c) Selection.--The Secretary shall allocate amounts available in 
any fiscal year for assistance under this subtitle to States (including 
State housing finance agencies), local housing finance agencies, or 
nonprofit housing intermediaries for homebuyers through a national 
competition in accordance with criteria established by the Secretary. 
The criteria shall include the extent to which the applicant has 
experience in providing homeownership opportunities for low- and 
moderate-income households.
    ``(d) Targeting for Revitalization Areas.--Each grantee under this 
subtitle shall use not more than 50 percent of any amounts received 
under this subtitle for assistance under section 303(a) for homebuyers 
purchasing residences in revitalization areas using mortgages insured 
under section 203(b) of the National Housing Act.

``SEC. 307. REPORT.

    ``Not later than 18 months after the date of the issuance of final 
regulations pursuant to section 310, the Secretary shall submit to the 
Congress a report stating the amount of loans made in revitalization 
areas and in other areas, the amount of loans insured under the 
National Housing Act made in connection with assistance under this 
section and the amount of privately insured loans made in connection 
with such assistance, and an analysis of the effectiveness of such 
assistance in assisting first-time homebuyers.

``SEC. 308. DEFINITIONS.

    ``For purposes of this subtitle:
            ``(1) Assistance.--The term `assistance' means--
                    ``(A) any downpayment assistance provided under 
                section 303(1);
                    ``(B) any second mortgage loan provided under 
                section 303(2);
                    ``(C) any loan provided from a revolving fund 
                established under section 303(3); and
                    ``(D) any payment for buydown of an interest rate 
                provided under section 303(4).
            ``(2) Community land trust.--The term `community land 
        trust' has the meaning given the term in section 233 of the 
        Cranston-Gonzalez National Affordable Housing Act.
            ``(3) Displaced homemaker.--The term `displaced homemaker' 
        means an individual who--
                    ``(A) is an adult;
                    ``(B) has not worked full-time, full-year in the 
                labor force for a number of years, but has during such 
                years, worked primarily without remuneration to care 
                for the home and family; and
                    ``(C) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or upgrading 
                employment.
            ``(4) Revitalization area.--The term `revitalization area' 
        means--
                    ``(A) an empowerment zone or enterprise community 
                approved under Subchapter U of Chapter 1 of the 
                Internal Revenue Code of 1986, or an equivalent State-
                approved enterprise zone; and
                    ``(B) a neighborhood that, in the determination of 
                the Secretary, is targeted by a unit of general local 
                government for revitalization using coordinated 
                affordable housing programs and enhanced supportive 
                services.
            ``(5) Nonprofit housing intermediary.--The term `nonprofit 
        housing intermediary' means a nonprofit organization that the 
        Secretary determines has among its principal purposes 
        activities described in clauses (1) and (2) of section 802(a) 
        of the Housing and Community Development Act of 1974.
            ``(6) Single parent.--The term `single parent' means an 
        individual who--
                    ``(A) is unmarried or legally separated from a 
                spouse; and
                    ``(B)(i) has 1 or more minor children for whom the 
                individual has custody or joint custody; or
                    ``(ii) is pregnant.
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(8) State.--The term `State' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, and any other 
        territory or possession of the United States.
            ``(9) State housing finance agency.--The term `State 
        housing finance agency' has the meaning given the term in 
        section 802(b) of the Housing and Community Development Act of 
        1974.
            ``(10) Local housing finance agency.--The term `local 
        housing finance agency' means a housing finance agency of any 
        city, county, town, township, parish, village, or other general 
        purpose subdivision of a State, or of any combination of such 
        political subdivisions recognized by the Secretary, or any 
        other agency or instrumentality of such an entity that carries 
        out activities described in section 303.

``SEC. 310. REGULATIONS.

    ``Not later than 10 days after the date of the enactment of the 
Housing and Community Development Act of 1994, the Secretary shall 
issue an interim rule to implement this subtitle. The Secretary shall 
issue final regulations necessary to implement this subtitle not later 
than 90 days after issuance of such interim rule.''.

SEC. 132. SECTION 235 MORTGAGE REFINANCING.

    Section 235(r) of the National Housing Act (12 U.S.C. 1715z(r)) is 
amended--
            (1) in paragraph (2)(C), by inserting after ``refinanced'' 
        the following: ``, plus the costs incurred in connection with 
        the refinancing as described in paragraph (4)(B) to the extent 
        that the amount for those costs is not otherwise included in 
        the interest rate as permitted by subparagraph (E) or paid by 
        the Secretary as authorized by paragraph (4)(B)'';
            (2) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting after ``otherwise)'' the following: ``and the 
                mortgagee (with respect to the amount described in 
                subparagraph (A))''; and
                    (B) in subparagraph (A), by inserting after 
                ``mortgagor'' the following: ``and the mortgagee''; and
            (3) by amending paragraph (5) to read as follows:
    ``(5) The Secretary shall use amounts of budget authority 
recaptured from assistance payments contracts relating to mortgages 
that are being refinanced for assistance payments contracts with 
respect to mortgages insured under this subsection. The Secretary may 
also make such recaptured amounts available for incentives under 
paragraph (4)(A) and the costs incurred in connection with the 
refinancing under paragraph (4)(B). For purposes of subsection 
(c)(3)(A), the amount of recaptured budget authority that the Secretary 
commits for assistance payments contracts relating to mortgages insured 
under this subsection and for amounts paid under paragraph (4) shall 
not be construed as unused.''.

SEC. 133. RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION.

    (a) Eligible Housing.--Section 1011 of the Housing and Community 
Development Act of 1992 (42 U.S.C. 4852) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Authority and Eligible Housing.--
            ``(1) Authority.--The Secretary may provide grants to 
        eligible applicants to evaluate and reduce lead-based paint 
        hazards in housing that meets the requirements under paragraphs 
        (2) and (3) and is not federally assisted housing, federally 
        owned housing, or public housing, in accordance with the 
        provisions of this section.
            ``(2) Eligible housing.--Housing that meets the 
        requirements under this paragraph is the following housing:
                    ``(A) Rental housing.--In the case of rental 
                housing, housing in which at least 50 percent of the 
                dwelling units are occupied by or available to 
                households with incomes not exceeding 50 percent of the 
                median income for the area; as defined by the 
                Secretary, and the remainder of the dwelling units are 
                occupied by or available to households with incomes not 
                exceeding 80 percent of the median income for the area, 
                as defined by the Secretary.
                    ``(B) Owner-occupied housing.--In the case of 
                owner-occupied housing, a dwelling that is the 
                principal residence of a household with an income not 
                exceeding 80 percent of the median income for the area, 
                as defined by the Secretary.
            ``(3) Limitations on use of amounts.--
                    ``(A) Rental housing.--In the case of rental 
                housing for which lead hazard reduction activities are 
                conducted using grant amounts under this section--
                            ``(i) notwithstanding paragraph (2)(A), for 
                        housing with 5 or more dwelling units, not more 
                        than 20 percent of such remaining dwelling 
                        units may be occupied by households with 
                        incomes exceeding 80 percent of the median 
                        income for the area, as defined by the 
                        Secretary; and
                            ``(ii) all vacant dwelling units for which 
                        such activities have been conducted shall be 
                        made available only to households with a child 
                        or children under 6 years of age, and among 
                        such households priority shall be given to 
                        households with incomes not exceeding 50 
                        percent of the median income for the area, as 
                        defined by the Secretary.
                    ``(B) Owner-occupied housing.--In the case of 
                owner-occupied housing for which lead hazard reduction 
                activities are conducted using grant amounts under this 
                section, 90 percent of the dwelling units for which 
                such activities are conducted shall be dwelling units 
                occupied by a household with a child or children under 
                6 years of age or dwelling units in which a child of 
                such age regularly spends a substantial portion of his 
                or her time.
            ``(4) Exception to eligible housing requirements.--
        Notwithstanding paragraph (2), housing that qualifies as 
        affordable housing under section 215 of the Cranston-Gonzalez 
        National Affordable Housing Act (including housing that 
        receives assistance under section 8 of the United States 
        Housing Act of 1937) and for which activities assisted under 
        this section are to be conducted using amounts made available 
        to carry out this section for fiscal year 1993 shall be 
        considered housing that meets the requirements of paragraph (2) 
        and shall not be subject to the requirements of paragraph (3), 
        but only if the recipient of such assistance elects, before 
        commencing such activities with such assistance, to be subject 
        to the provisions of this paragraph and the Secretary approves 
        such election. Any such recipient making such an election may 
        not use such assistance to carry out activities under this 
        section with respect to housing that meets the requirements of 
        paragraphs (2) and (3).''; and
            (2) by striking ``priority housing'' each place it appears 
        and inserting ``housing that meets the requirements under 
        subsection (a)''.
    (b) HUD Research.--
            (1) Conducting of research.--Section 1052 of the Housing 
        and Community Development Act of 1992 (42 U.S.C. 4854a) is 
        amended by inserting after ``other Federal agencies,'' the 
        following: ``either directly, or indirectly under contract or 
        otherwise,''.
            (2) Funding.--Section 1053 of the Housing and Community 
        Development Act of 1992 (42 U.S.C. 4854b) is amended to read as 
        follows:

``SEC. 1054. FUNDING.

    ``Of the total amount approved in appropriation Acts under section 
1011(p), there shall be set aside to carry out this part $5,000,000 for 
fiscal year 1995 and $5,000,000 for fiscal year 1996.''.
            (3) Other activities.--Part 1 of subtitle D of title X of 
        the Housing and Community Development Act of 1992 (42 U.S.C. 
        4854 et seq.) is amended by inserting after section 1052 the 
        following new section:

``SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVITIES.

    ``The Secretary may use amounts available to carry out this part to 
undertake, either directly, or indirectly under contract or otherwise, 
pursuant to title V of the Housing and Urban Development of 1970, such 
studies, tests (including pilot tests of new or revised programs), 
evaluations, demonstrations, education of the public, and preparation 
of training materials, as are consistent with the purposes of this 
Act.''.
    (c) Definitions.--Section 1004 of the Housing and Community 
Development Act of 1992 (42 U.S.C. 4851b) is amended--
            (1) by striking paragraph (20); and
            (2) by redesignating paragraphs (21) through (27) as 
        paragraphs (20) through (26), respectively.

SEC. 134. FEDERAL DEPOSIT INSURANCE CORPORATION AFFORDABLE HOUSING 
              PROGRAM.

    (a) Reauthorization.--Section 40(b) of the Federal Deposit 
Insurance Act (12 U.S.C. 1831q(b)) is amended--
            (1) in paragraph (1), by striking ``during'' and all that 
        follows through ``paragraph (2)(A)'' and inserting ``until the 
        end of fiscal year 1997'';
            (2) in paragraph (2)(A), in the matter preceding clause 
        (i), by striking ``3-year''; and
            (3) in paragraph (2)(C), by striking ``3-year''.
    (b) Facilitation of Program.--Section 40 of the Federal Deposit 
Insurance Act is amended by adding at the end the following new 
subsection:
    ``(r) Facilitation of Program.--Notwithstanding any provision of 
this section or any other provision of law, the Corporation shall be 
considered to be in compliance with this section if (in the sole 
discretion of the Corporation) the Corporation at any time modifies, 
amends, or waives any provisions of this section to maximize the 
efficient use of amounts appropriated to carry out this section. The 
Corporation shall not be subject to suit for any failure to comply with 
the requirements of this section.''.

SEC. 135. STATE AGENCIES AS SURETIES.

    Section 9304 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) State Agencies.--A State agency, including any financing 
authority established by any State, which meets the requirements of 
paragraphs (2) and (3) of subsection (a) may be treated as a surety 
corporation for purposes of this chapter. Notwithstanding any other 
provision of law, user fees collected by the Financial Management 
Services incident to sections 9304 through 9309 of this title shall be 
credited to the appropriation of that agency and may be retained 
without fiscal year limitation to carry out the provisions of such 
sections.''.

                Subtitle D--Home Investment Partnerships

SEC. 141. ELIGIBLE USES OF INVESTMENT.

    Section 212(a)(1) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12742(a)(1)) is amended by striking ``financing 
costs'' and inserting ``costs of financing (including credit 
enhancements, loan guarantees, and debt service reserves)''.

SEC. 142. QUALIFICATION AS AFFORDABLE RENTAL HOUSING.

    Section 215(a) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12742(a)) is amended--
            (1) in paragraph (1)(A), by striking ``bears rents not 
        greater than'' and inserting ``is occupied by tenants who pay 
        as rent'';
            (2) in paragraph (3), by inserting after the period at the 
        end of the first sentence the following new sentence: ``A 
        tenant occuping a rental unit assisted with amounts provided 
        under this title shall be considered to be a very low-income 
        family until the household's income increases to more than 140 
        percent of the applicable income limitation under paragraph 
        (1)(B).''; and
            (3) by adding at the end the following new paragraph:
            ``(6) Rental subsidies.--Notwithstanding paragraph (1), 
        housing shall not be considered to fail to qualify as 
        affordable housing under this title because it includes units 
        for which--
                    ``(A) payments are made under section 8 of the 
                United States Housing Act of 1937 or any comparable 
                rental assistance program; and
                    ``(B) because of increases in the income of tenants 
                of the housing, the rent paid by the tenants under the 
                assistance program with respect to such unit exceeds 30 
                percent of the adjusted income of a family whose income 
                equals 65 percent of the median income for the area.''.

SEC. 143. REPAYMENT OF INVESTMENT.

    Section 219 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12749) is amended by adding at the end the following new 
subsection:
    ``(d) Repayment of Matching Amounts.--Amounts provided by a 
participating jurisdiction pursuant to section 220 for housing not 
assisted under this title shall be recognized for purposes of section 
220(a), notwithstanding that such amounts are not repaid to the 
jurisdiction's HOME Investment Trust Fund, if such amounts are drawn 
from an affordable housing program operated by the jurisdiction, repaid 
to the program, and available for use only for the program or for 
providing housing that qualifies as affordable housing.''.

SEC. 144. MATCHING REQUIREMENTS.

    Section 220 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12750) is amended--
            (1) in the first sentence of subsection (a), by inserting 
        ``the participating jurisdiction certifies'' before 
        ``qualifies''; and
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``or'';
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) is made with respect to housing that is 
                substantially equivalent to housing that qualifies as 
                affordable housing under section 215.''.

SEC. 145. LABOR REQUIREMENTS.

    Section 286(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12836(b)) is amended by adding at the end the following 
new sentence: ``Subsection (a) shall not apply in the case of housing 
for which a site is acquired or for which the homebuyer is assisted, 
but which is not constructed, using funds made available under this 
subtitle.''.

                Subtitle E--Supportive Housing Programs

SEC. 151. SUPPORTIVE HOUSING FOR THE ELDERLY.

    (a) Elder Cottage Housing Units.--Section 202(b) of the Housing Act 
of 1959 (12 U.S.C. 1701q(b)) is amended by inserting after the second 
sentence the following new sentence: ``Such assistance may also be used 
to finance the acquisition and installation of elder cottage housing 
units that are small, freestanding, barrier-free, energy efficient, 
removable and designed to be installed adjacent to existing 1- to 4-
family dwellings and are used as supportive housing for the elderly in 
accordance with this section.''.
    (b) Definition of ``Frail Elderly''.--Section 202(k)(3) of the 
Housing Act of 1959 (12 U.S.C. 1701q(k)(3)) is amended by striking the 
first sentence and inserting the following new sentences: ``The term 
`frail elderly' means an elderly person whose level of functional 
disability jeopardizes her or his ability to continue to live 
independently. The Secretary shall, to the extent possible, develop 
assessment measures of functional disability that are appropriate for 
purposes of this section and will provide for effective use of the 
program under this section with other programs providing supportive 
services.''.
    (c) Repeal of Demonstration.--Section 806 of the Cranston-Gonzalez 
National Affordable Housing Act (12 U.S.C. 1701q note) is hereby 
repealed.

SEC. 152. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.

    (a) PHA's as Eligible Sponsors.--Section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended--
            (1) in the first sentence of subsection (f), by inserting 
        ``and public housing agencies'' after ``private nonprofit 
        organizations''; and
            (2) in subsection (k)--
                    (A) in paragraph (5), by striking ``private 
                nonprofit organization'' and inserting ``eligible 
                sponsor''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(10) The term `eligible sponsor' means--
                    ``(A) in the case of capital advances under 
                subsection (b)(2) and project rental assistance under 
                subsections (b) (2) and (3)--
                            ``(i) a private nonprofit organization; and
                            ``(ii) a public housing agency, but only in 
                        the case of a jurisdiction for which the 
                        Secretary determines that, during the 3-year 
                        period ending upon the date of the application 
                        of the agency for assistance under subsection 
                        (b) (2) or (3)--
                                    ``(I) no private nonprofit 
                                organization has submitted an 
                                application under subsection (f) for 
                                assistance for a project located in 
                                such area; and
                                    ``(II) no private nonprofit 
                                organization has had such an 
                                application approved for a project 
                                located in such area; and
                    ``(B) in the case of tenant-based rental assistance 
                under subsection (b)(1)--
                            ``(i) a private nonprofit organization; and
                            ``(ii) a public housing agency, but only to 
                        the extent that such assistance is used for 
                        providing assistance in accordance with an 
                        allocation plan for the agency under section 
                        7(f) of the United States Housing Act of 
                        1937.''.
    (b) Rental Assistance for Existing Buildings.--Section 811 of the 
Cranston-Gonzalez National Affordable Housing Act is amended--
            (1) in subsection (d)(2), by adding at the end the 
        following new sentence: ``The Secretary may enter into 
        contracts with private, nonprofit organizations to provide 
        project rental assistance for supportive housing for persons 
        with disabilities, regardless of whether the housing is 
        developed with capital advances under this section.'';
            (2) in subsection (e)(1), by inserting ``with capital 
        advances'' after ``assisted'';
            (3) by striking the first 2 sentences of subsection (e)(2) 
        and inserting the following new sentences: ``The initial term 
        of a contract entered into under subsection (d)(2) shall be 240 
        months for housing developed with a capital advance, and shall 
        be not more than 60 months for housing not developed with a 
        capital advance. The Secretary shall, to the extent approved in 
        appropriation Acts, extend any expiring contracts for a term of 
        not less than 60 months.'';
            (4) in subsection (g)(1), by inserting ``(if applicable)'' 
        after ``develop'';
            (5) in subsections (g)(3) and (g)(5), by inserting ``design 
        or'' before ``proposed'' each place it appears;
            (6) in subsection (j), by striking paragraph (3) and 
        inserting the following new paragraph:
            ``(3) Site control.--
                    ``(A) Capital advances.--In the case of housing to 
                be assisted with capital advances under this section, 
                an applicant may obtain ownership or control of a 
                suitable site different from the site specified in the 
                initial application. If an applicant fails to obtain 
                ownership or control of the site within 1 year after 
                notification of an award for assistance, the assistance 
                shall be recaptured and reallocated.
                    ``(B) Project rental assistance.--In the case of 
                housing to be assisted only with project rental 
                assistance, the applicant shall have ownership or 
                control of a suitable site at the time of application. 
                The Secretary may approve a change in site at any time 
                from the date the application is submitted to the 
                expiration date of the rental assistance contract.'';
            (7) in subsection (j)(4), by striking ``The'' and inserting 
        the following: ``In the case of housing assisted with capital 
        advances under this section, the'';
            (8) in the second sentence of subsection (k)(1), by 
        striking ``the development of'';
            (9) in subsection (k)(5), by inserting before the period at 
        the end the following: ``, or that receives rental assistance 
        under this section to operate a project for supportive housing 
        for persons with disabilities''; and
            (10) in subsection (m)(3), by striking ``(1)'' and 
        inserting ``(2)''.
    (c) Authority To Provide Assistance.--Section 811 of the Cranston-
Gonzalez National Affordable Housing Act is amended--
            (1) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) General Authority.--The Secretary may provide assistance to 
eligible sponsors to expand the supply of supportive housing for 
persons with disabilities. Such assistance shall be provided as--
            ``(1) tenant-based rental assistance on behalf of eligible 
        persons with disabilities, in accordance with subsection 
        (d)(4);
            ``(2) capital advances in accordance with subsection 
        (d)(1), together with contracts for project rental assistance 
        in accordance with subsection (d)(2); or
            ``(3) contracts for project rental assistance in accordance 
        with subsection (d)(2).'';
            (2) in subsection (d)(1), by adding at the end the 
        following new sentences: ``Capital advances may be used to 
        finance the acquisition, acquisition and moderate 
        rehabilitation, construction, reconstruction, or moderate or 
        substantial rehabilitation of housing, including the 
        acquisition from the Resolution Trust Corporation, to be used 
        as supportive housing for persons with disabilities and may 
        include real property acquisition, site improvement, 
        conversion, demolition, relocation, and other expenses that the 
        Secretary determines are necessary to expand the supply of 
        supportive housing for persons with disabilities. Such 
        assistance may also be used to finance the acquisition and 
        installation of cottage housing units that are small, 
        freestanding, barrier-free, energy efficient, removable and 
        designed to be installed adjacent to existing 1- to 4-family 
        dwellings and are used as supportive housing for the persons 
        with disabilities in accordance with this section.'';
            (3) in subsections (d)(3), (e)(1), and (f), by inserting 
        ``or (3)'' after ``subsection (b)(2)'' each place it appears; 
        and
            (4) by striking paragraph (4) of subsection (d) and 
        inserting the following new paragraph:
            ``(4) Tenant-based rental assistance.--
                    ``(A) Administration.--Tenant-based rental 
                assistance that is provided under subsection (b)(1) 
                shall be administered under the same rules governing 
                rental assistance made available under section 8 of the 
                United States Housing Act of 1937.
                    ``(B) Public housing agencies.--A public housing 
                agency may provide tenant-based rental assistance under 
                subsection (b)(1) only if the public housing agency has 
                submitted, and had approved, an allocation plan under 
                section 7(f) of the United States Housing Act of 1937 
                and any such assistance made available to a public 
                housing agency shall be provided by the agency in 
                accordance with such allocation plan. In determining 
                the amount of assistance provided under subsection 
                (b)(1) for a public housing agency, the Secretary shall 
                consider the needs of the agency as described in the 
                allocation plan.''.
    (d) Technical Changes.--Section 811(k)(6) of the Cranston-Gonzalez 
National Affordable Housing Act is amended by striking subparagraph (A) 
and inserting the following new subparagraph:
                    ``(A) that has received tax-exempt status under 
                section 501(c) (3) or (4) of the Internal Revenue Code 
                of 1986;''.

SEC. 153. REVISED CONGREGATE SERVICES.

    (a) Meal Fees and Matching Amounts.--Section 802 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8011) is amended--
            (1) in subparagraph (A) of subsection (d)(7), by striking 
        ``The fees for meals shall be in the following amounts:'' and 
        all that follows through the end of the subparagraph; and
            (2) in subsection (i)(1)--
                    (A) in subparagraph (A)(i), by striking ``50 
                percent'' and inserting ``25 percent'';
                    (B) in subparagraph (A)(ii), by striking ``40 
                percent'' and inserting ``65 percent''; and
                    (C) in subparagraph (C), by striking ``10 percent'' 
                and inserting ``25 percent''.
    (b) Definition of ``Frail Elderly''.--Section 802(k)(8) of the 
Cranston-Gonzalez National Affordable Housing Act is amended by 
striking the first sentence and inserting the following new sentences: 
``The term `frail elderly' means an elderly person whose level of 
functional disability jeopardizes her or his ability to continue to 
live independently. The Secretary shall, to the extent possible, 
develop assessment measures of functional disability that are 
appropriate for purposes of this section and will provide for effective 
use of the program under this section with other programs providing 
supportive services.''.

SEC. 154. SUPPORTIVE HOUSING ASSISTANCE FOR ELDERLY INDEPENDENCE.

    (a) Supportive Services Contributions.--Section 803(c)(1) of the 
Cranston-Gonzalez National Affordable Housing Act is amended--
            (1) in subparagraph (A), by striking ``40 percent'' and 
        inserting ``65 percent''; and
            (2) in subparagraph (B), by striking ``50 percent'' and 
        inserting ``25 percent''.
    (b) Definition of ``Frail Elderly''.--Section 803(g)(3) of the 
Cranston-Gonzalez National Affordable Housing Act is amended by 
striking the first sentence and inserting the following new sentences: 
``The term `frail elderly person' means an elderly person whose level 
of functional disability jeopardizes her or his ability to continue to 
live independently. The Secretary shall, to the extent possible, 
develop assessment measures of functional disability that are 
appropriate for purposes of this section and will provide for effective 
use of the program under this section with other programs providing 
supportive services.''.
    (c) Amendment to Heading.--Section 803 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 8012) is amended by striking 
the section designation and heading and inserting the following:

``SEC. 803. SUPPORTIVE HOUSING ASSISTANCE FOR ELDERLY INDEPENDENCE.''.

      Subtitle F--Mortgage Insurance and Secondary Mortgage Market

SEC. 161. EXTENSION OF MULTIFAMILY HOUSING MORTGAGE AUCTION PROVISIONS.

    (a) Extension.--The first sentence of section 221(g)(4)(C)(viii) of 
the National Housing Act (12 U.S.C. 1715l(g)(4)(C)(viii)) is amended by 
striking ``September 30, 1995'' and inserting ``December 31, 2005''.
    (b) Budget Compliance.--Section 221(g)(4)(C) of the National 
Housing Act (12 U.S.C. 1715l(g)(4)(C)) is amended by adding at the end 
the following new clause:
            ``(ix) This subparagraph shall be effective for any fiscal 
        year only to such extent or in such amounts as are or have been 
        provided in appropriation Acts for such fiscal year.''.

SEC. 162. STREAMLINED REFINANCING FOR HUD-HELD MORTGAGES.

    (a) In General.--Section 223(a) of the National Housing Act (12 
U.S.C. 1715n) is amended--
            (1) in paragraph (7), by striking the colon preceding 
        ``Provided further,'' and all that follows through ``and the 
        mortgagee'';
            (2) by redesignating paragraph (8) as paragraph (9);
            (3) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) given to refinance a mortgage held by the Secretary, 
        upon such terms and conditions as the Secretary may prescribe, 
        covering property on which there is located a 1- to 4-family 
        residence, or a 1-family unit in a condominium project, which 
        mortgage was formerly insured under this Act and subsequently 
        assigned to the Secretary: Provided, That the mortgagor has not 
        previously refinanced a mortgage pursuant to this paragraph: 
        Provided further, That the mortgagor has made all payments due 
        under the note secured by the existing mortgage and all 
        payments due under the note for at least the previous 6 months, 
        or the mortgagor is under a forbearance agreement and has made 
        all payments due under the note secured by the existing 
        mortgage for at least the previous 6 months: Provided further, 
        That the principal amount of the refinancing mortgage may not 
        exceed the outstanding principal balance of the existing 
        mortgage by more than additional amounts owed by the mortgagor 
        due to the delinquency and to the receipt of assignment 
        assistance under section 230: Provided further, That the 
        monthly payment due under the refinancing mortgage may not 
        exceed the monthly payment due under the existing mortgage: 
        Provided further, That the refinancing mortgage may have a term 
        not more than 12 years in excess of the unexpired term of the 
        assigned mortgage: Provided further, That the refinancing 
        mortgage may be insured under section 203(b) or 221(d)(2) of 
        this Act, at the option of the mortgagee, or under section 
        234(c) of this Act in the case of a condominium: Provided 
        further, That a refinancing mortgage insured under section 
        221(d)(2) shall involve a principal obligation in an amount not 
        to exceed 50 percent of the applicable dollar limitation for a 
        1- to 4-family residence under section 203(b)(2): Provided 
        further, That the authority under this paragraph to refinance a 
        mortgage shall terminate 30 months after the date of enactment 
        of this Act: Provided further, That the total number of 
        mortgages refinanced under this paragraph may not exceed 
        20,000; or''; and
            (4) by adding at the end the following new flush material:
``A mortgage of the character described in paragraphs (1) through (6) 
of this subsection shall have a maturity and a principal obligation not 
in excess of the maximums prescribed under the applicable section or 
title of this Act, except that in no case may the principal obligation 
of a mortgage referred to in paragraph (5) of this subsection exceed 90 
percent of the appraised value of the mortgage property, and shall bear 
interest at such rate as may be agreed upon by the mortgagor and the 
mortgagee.''.
    (b) Implementation.--The Secretary of Housing and Urban Development 
may implement the authority to refinance a mortgage held by the 
Secretary under section 223(a)(8) of the National Housing Act, as added 
by the amendment made by subsection (a)(3) of this section, by notice 
published in the Federal Register setting forth such requirements as 
may be necessary.

SEC. 163. DELEGATION OF SINGLE FAMILY MORTGAGE INSURING AUTHORITY TO 
              DIRECT ENDORSEMENT MORTGAGEES.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.), is 
amended by adding at the end the following new section:

  ``delegation of insuring authority to direct endorsement mortgagees

    ``Sec. 256. (a) Authority.--The Secretary may delegate, to one or 
more mortgagees approved by the Secretary under the direct endorsement 
program, the authority of the Secretary under this Act to insure 
mortgages involving property upon which there is located a dwelling 
designed principally for occupancy by 1 to 4 families.
    ``(b) Considerations.--In determining whether to delegate authority 
to a mortgagee under this section, the Secretary shall consider the 
experience and performance of the mortgagee under the direct 
endorsement program, the default rate of insured mortgages originated 
by the mortgagee compared to the default rate of all insured mortgages 
in comparable markets, and such other factors as the Secretary 
determines appropriate to minimize risk of loss to the insurance funds 
under this Act.
    ``(c) Enforcement of Insurance Requirements.--
            ``(1) In general.--If the Secretary determines that a 
        mortgage insured by a mortgagee pursuant to delegation of 
        authority under this section was not originated in accordance 
        with the requirements established by the Secretary, and the 
        Secretary pays an insurance claim with respect to the mortgage 
        within a reasonable period specified by the Secretary, the 
        Secretary may require the mortgagee approved under this section 
        to indemnify the Secretary for the loss.
            ``(2) Fraud or misrepresentation.--If fraud or 
        misrepresentation was involved in connection with the 
        origination, the Secretary may require the mortgagee approved 
        under this section to indemnify the Secretary for the loss 
        regardless of when an insurance claim is paid.
    ``(d) Termination of Mortgagee's Authority.--If a mortgagee to 
which the Secretary has made a delegation under this section violates 
the requirements and procedures established by the Secretary or the 
Secretary determines that other good cause exists, the Secretary may 
cancel a delegation of authority under this section to the mortgagee by 
giving notice to the mortgagee. Such a cancellation shall be effective 
upon receipt of the notice by the mortgagee or at a later date 
specified by the Secretary. A decision by the Secretary to cancel a 
delegation shall be final and conclusive and shall not be subject to 
judicial review.
    ``(e) Requirements and Procedures.--Before approving a delegation 
under this section, the Secretary shall issue regulations establishing 
appropriate requirements and procedures, including requirements and 
procedures governing the indemnification of the Secretary by the 
mortgagee.''.

                    TITLE II--COMMUNITY DEVELOPMENT

SEC. 201. ELIGIBLE ACTIVITIES.

    Section 907(b)(2) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 5305 note) is hereby repealed.

SEC. 202. REALLOCATIONS.

    Section 106(c) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5304(c)) is amended by striking paragraph (4).

SEC. 203. USE OF UDAG RECAPTURES.

    Section 119(o) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5318(o)) is amended by striking ``October 1, 1993'' and 
inserting in lieu thereof ``April 11, 1994''.

SEC. 204. EXTENSION OF CERTAIN CDBG ASSISTANCE.

    (a) Extension.--Section 916(f) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 5306 note) is amended by striking 
``1991'' and all that follows through ``1994'' and inserting 
``beginning before the commencement of fiscal year 1998''.

SEC. 205. COLONIAS ASSISTANCE PROGRAM.

    (a) Grant Authority.--The Secretary may make grants in accordance 
with the provisions of this section to units of general local 
government, States, nonprofit organizations, or entities or 
instrumentalities established under the authority of any of such 
entities, for use in addressing the community development and housing 
needs of colonias.
    (b) Eligible Activities.--Assistance under this section may be used 
only to carry out the following activities:
            (1) Any activity eligible under section 105 of the Housing 
        and Community Development Act of 1974 or section 212(a) of the 
        HOME Investment Partnerships Act.
            (2) Refinancing the existing debt of homeowners to convert 
        existing land transactions and interests into mortgages.
            (3) Constructing new housing, including self-help, energy-
        efficient, and innovative housing design initiatives.
            (4) Developing new subdivisions for affordable housing.
            (5) Re-platting and redeveloping existing subdivisions.
            (6) Planning for and constructing infrastructure necessary 
        for the development of housing, economic development, and 
        community facilities and amenities.
            (7) Such other activities as the Secretary deems 
        appropriate to further the purposes of this section.
    (c) Model Programs.--
            (1) In general.--Of amounts allocated under subsection 
        (j)(2), the Secretary shall make grants under this subsection 
        to the entities referred to in subsection (a) for the purpose 
        of establishing model programs of assistance for addressing the 
        community development, housing, and other needs of the 
        residents of the colonias.
    (d) Selection of Grantees.--
            (1) Geographic distribution.--The Secretary shall 
        designate--
                    (A) at least one project in each State to receive a 
                grant under this subsection; and
                    (B) at least one project within a metropolitan area 
                in any State to receive a grant under this subsection.
            (2) Selection process.--The Secretary shall select grantees 
        under this subsection on a noncompetitive basis, through 
        negotiation with the grantee.
            (3) Selection criteria.--In selecting projects for grants 
        under this subsection, the Secretary shall consider--
                    (A) the extent of need in the colonia;
                    (B) the likely effectiveness of the proposed 
                approach in addressing identified needs;
                    (C) the extent to which funding for the project is 
                committed from sources other than under this section;
                    (D) the need to consider a variety of solutions to 
                a variety of needs situations; and
                    (E) such other factors as the Secretary deems 
                appropriate to carry out the objectives of this 
                section.
    (e) Competitive Grants.--
            (1) Purpose.--Grants under this subsection shall be made, 
        in accordance with paragraph (2), to the entities referred to 
        in subsection (a) for the purpose of assisting the community 
        development and housing needs of the residents of one or more 
        colonias in an area or region.
            (2) Reservation of funds.--Of amounts allocated under 
        subsection (j)(2), the Secretary shall reserve a target amount 
        for grants under this subsection for use in colonias in each 
        State. The Secretary shall determine the amount be reserved 
        based on such objective factors of need as the Secretary deems 
        appropriate, which may include rates of poverty in, and the 
        population of, colonias. The Secretary shall reallocate any 
        amounts set-aside under this paragraph for which the Secretary 
        determines there will not be sufficient approvable applications 
        in a fiscal year.
            (3) Use of funds.--Any amount not reserved or reallocated 
        under paragraph (2) may be used in colonias in any State.
            (4) Applications.--Applications for grants under this 
        subsection shall be submitted at such time and in accordance 
        with such procedures, as the Secretary shall prescribe. 
        Applications shall contain the following information, which the 
        Secretary shall consider in selecting projects for grants under 
        this subsection:
                    (A) The extent of need in the colonia.
                    (B) An estimate of the likely effectiveness of the 
                proposed approach in addressing identified needs.
                    (C) A description of the extent to which funding 
                for the project is committed from sources other than 
                under this section.
                    (D) Any other information that the Secretary deems 
                appropriate to carry out the objectives of this 
                section.
            (5) Selection of grantees.--The Secretary shall select 
        grantees for grants under this subsection on the basis of a 
        competition, following publication of a notice of funding 
        availability in the Federal Register.
    (f) Records, Reports, and Audits.--
            (1) Keeping of records.--Each grantee under this section 
        shall keep such records as may be reasonably necessary to 
        disclose the amounts and the disposition of grant amounts 
        received under this section and to ensure compliance with the 
        requirements of this section.
            (2) Grantee reports.--Each grantee under this section shall 
        submit to the Secretary a report, or series of reports, in a 
        form and at a time specified by the Secretary. Each report 
        shall--
                    (A) describe the use of funds made available to the 
                grantee under this section; and
                    (B) describe and analyze the effect of assisted 
                activities in addressing the community development and 
                housing needs of the residents of colonias.
    (g) Access to Documents by Secretary.--The Secretary shall have 
access for the purpose of audit and examination to any books, 
documents, papers, and records of a grantee that are pertinent to 
assistance received in connection with, and the requirements of, this 
section.
    (h) Access to Documents by Comptroller General.--The Comptroller 
General of the United States, or any of the duly authorized 
representatives of the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of a grantee that are pertinent to assistance received under, 
and the requirements of, this section.
    (i) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) The terms ``colonia'' and ``United States-Mexico Border 
        Region'' have the meanings given the terms in section 916(e) of 
        the Cranston-Gonzalez National Affordable Housing Act.
            (2) The term ``metropolitan area'' has the meaning given 
        the term in section 102(a) of the Housing and Community 
        Development Act of 1974.
            (3) The term ``nonprofit organization'' means--
                    (A) an organization--
                            (i) that is described in section 501(c) of 
                        the Internal Revenue Code of 1986; and
                            (ii) is exempt from taxation under section 
                        501(a) of such Code; or
                    (B) an organization--
                            (i) no part of the net earnings of which 
                        inures to the benefit of any member, founder, 
                        contributor, or individual;
                            (ii) that in the case of a private 
                        nonprofit organization, has a voluntary board;
                            (iii) that has an accounting system, or has 
                        designated a fiscal agent in accordance with 
                        requirements established by the Secretary; and
                            (iv) that practices nondiscrimination in 
                        the provision of assistance.
            (4) The term ``Secretary'' means the Secretary of Housing 
        and Urban Development.
            (5) The term ``State'' means the States of California, 
        Arizona, New Mexico, and Texas.
            (6) The term ``unit of general local government'' means--
                    (A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State; and
                    (B) any agency or instrumentality thereof that is 
                established pursuant to legislation and designated by 
                the chief executive to act on behalf of the 
                jurisdiction with regard to provisions of this section.
        The term includes a consortium of geographically contiguous 
        units of general local government, if the Secretary determines 
        that the consortium--
                    (i) has sufficient authority and administrative 
                capability to carry out the purposes of this section on 
                behalf of its member jurisdictions; and
                    (ii) meets such other requirements as the Secretary 
                may prescribe.

SEC. 206. YOUTHBUILD PROGRAM.

    (a) Eligible Activities.--Section 454(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12899c(b)) is amended--
            (1) in paragraph (2), by striking ``Acquisition'' and all 
        that follows through ``facilities'' and inserting 
        ``Acquisition, rehabilitation, or acquisition and 
        rehabilitation of housing and related facilities, or 
        construction of new housing and related facilities (including 
        community facilities designed to serve the needs of low- and 
        very low-income families),'';
            (2) by striking paragraph (6); and
            (3) by redesignating paragraphs (7) and (8) as paragraphs 
        (6) and (7), respectively.
    (b) Priority for Applicants Supplementing Grant Amounts.--Section 
454(e) of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12899c(e)) is amended to read as follows:
    ``(e) Priority for Applicants Who Obtain Program Funds From Other 
Sources.--The Secretary shall give priority in the award of grants 
under this section to applicants to the extent that they have obtained 
amounts or in-kind contributions, or commitments to provide such 
amounts or contributions, from Federal, State, local, or private 
sources other than assistance under this subtitle in an amount 
constituting not less than 10 percent of the total budget of the 
applicant for the Youthbuild program, that will be used for carrying 
out any aspect of the Youthbuild program of the applicant.''.
    (c) Residential Rental Housing Requirements.--Section 455(a) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899d(a)) 
is amended--
            (1) in the matter preceding paragraph (1), by inserting 
        after ``subtitle'' the following: ``for costs such as 
        construction, rehabilitation, and acquisition''; and
            (2) in paragraph (1), by striking subparagraph (A) and 
        inserting the following new subparagraph:
                    ``(A) at least 80 percent of the units shall be 
                occupied, or available for occupancy, by individuals 
                and families with incomes that do not exceed 50 percent 
                of the area median income, adjusted for family size; 
                and''.

                     TITLE III--HOMELESS ASSISTANCE

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Stewart B. McKinney Homeless 
Housing Assistance Amendments Act of 1994''.

 Subtitle A--Reorganization of Certain McKinney Act Housing Provisions

SEC. 311. FLEXIBLE GRANT PROGRAM.

    Title IV of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11361 et seq.) is amended--
            (1) by striking subtitles A, B, C, D, and F;
            (2) by striking the headings for subtitles E and G;
            (3) by redesignating sections 441 (as amended by the 
        preceding provisions of this Act), 491, and 592 (as added by 
        section 1414 of the Housing and Community Development Act of 
        1992) as sections 451, 453, and 454, respectively;
            (4) by striking sections 442 and 443; and
            (5) by inserting after the heading for the title the 
        following:

                  ``Subtitle A--Flexible Grant Program

                    ``CHAPTER 1--GENERAL PROVISIONS

``SEC. 401. PURPOSES.

    ``The purposes of this subtitle are to--
            ``(1) expand and reorganize the Federal commitment to 
        alleviate homelessness by providing States, Indian tribes, and 
        localities with the resources to more efficiently and 
        effectively design a comprehensive system to address the 
        shelter, service, and permanent housing needs of homeless 
        individuals and families in the United States;
            ``(2) help very low-income families avoid becoming 
        homeless;
            ``(3) meet the emergency shelter needs of homeless persons 
        and families;
            ``(4) provide transitional or specialized permanent housing 
        to facilitate the movement of homeless persons and families to 
        independent living;
            ``(5) provide supportive services to help homeless persons 
        and families lead independent and dignified lives;
            ``(6) encourage the cooperation and participation of the 
        States and units of general local government, together with 
        private nonprofit organizations, in planning and implementing 
        comprehensive homeless assistance programs;
            ``(7) reduce the costs to States, units of general local 
        government, and private nonprofit organizations in applying for 
        and using Federal housing assistance for families and persons 
        who are homeless; and
            ``(8) begin meeting the needs of most of the Nation's 
        homeless population through the existing Federal programs 
        providing basic assistance for low-income families and persons.

``SEC. 403. DEFINITIONS.

    ``For purposes of this subtitle, the following definitions shall 
apply:
            ``(1) The term `allocation unit of general local 
        government' means a metropolitan city and an urban county.
            ``(2) The term `applicant' means an eligible grantee that 
        submits an application under section 408 for a grant under this 
        subtitle.
            ``(3) The term `disability' means--
                    ``(A) a disability as defined in section 223 of the 
                Social Security Act;
                    ``(B) to be determined to have, pursuant to 
                regulations issued by the Secretary, a physical, 
                mental, or emotional impairment which (i) is expected 
                to be a long-continued and indefinite duration, (ii) 
                substantially impedes an individual's ability to live 
                independently, and (iii) of such a nature that such 
                ability could be improved by more suitable housing 
                conditions;
                    ``(C) a developmental disability as defined in 
                section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act; or
                    ``(D) the disease of acquired immunodeficiency 
                syndrome or any conditions arising from the etiologic 
                agency for acquired immunodeficiency syndrome.
        Subparagraph (D) shall not be construed to limit eligibility 
        under subparagraphs (A) through (C) or the provisions referred 
        to in subparagraphs (A) through (C).
            ``(4) The term `eligible grantee' means--
                    ``(A) an allocation unit of general local 
                government, Indian Tribe, or insular area, or a 
                consortium of such entities, that elects to administer 
                a grant under section 410(a)(1);
                    ``(B) a public agency or a private nonprofit 
                organization (or a consortium of such organizations) 
                designated by the Secretary under section 410(a)(3) to 
                administer grant amounts for an allocation unit of 
                general local government, Indian tribe, or insular 
                area;
                    ``(C) an entity eligible to receive grant amounts 
                from the Secretary under section 410(a)(4);
                    ``(D) a State that elects under section 
                410(b)(1)(A) to administer a grant;
                    ``(E) a unit of general local government selected 
                under section 410(b)(5) to receive grant amounts from 
                the Secretary; and
                    ``(F) a private nonprofit organization selected 
                under section 410(b)(4) to receive grant amounts from 
                the Secretary.
            ``(5) The term `families' has the same meaning given the 
        term under section 3(b) of the United States Housing Act of 
        1937.
            ``(6) The term `grantee' means--
                    ``(A) an allocation unit of general local 
                government, Indian tribe, or insular area, or a 
                consortium of such entities, that receives a grant 
                under this subtitle and administers the grant under 
                section 410(a)(1);
                    ``(B) an allocation unit of general local 
                government, Indian tribe, or insular area that receives 
                a grant under this subtitle and designates a public 
                agency or private nonprofit organization (or a 
                consortium of such organizations) to administer grant 
                amounts for the jurisdiction under section 410(a)(2);
                    ``(C) a public agency or a private nonprofit 
                organization (or a consortium or such organizations) 
                designated by the Secretary under section 410(a)(3) to 
                administer grant amounts for an allocation unit of 
                general local government, Indian tribe, or insular 
                area, and that receives grant amounts under this 
                subtitle;
                    ``(D) an entity that receives grant amounts from 
                the Secretary under section 410(a)(4);
                    ``(E) a State that receives grant amounts under 
                this subtitle and administers such amounts under 
                section 410(b)(1)(A);
                    ``(F) a unit of general local government that 
                receives grant amounts from the Secretary under section 
                410(b)(5); and
                    ``(G) a private nonprofit organization that 
                receives grant amounts from the Secretary under section 
                410(b)(4).
            ``(7) The term `homeless family' means a group of one or 
        more related individuals who are homeless individuals.
            ``(8) The term `Indian tribe' means any Indian tribe, band, 
        group, and nation, including Alaska Indians, Aleuts, and 
        Eskimos, and any Alaskan Native Village, of the United States, 
        which is considered an eligible recipient under the Indian 
        Self-Determination and Education Assistance Act or was 
        considered an eligible recipient under chapter 67 of title 31, 
        United States Code, before the repeal of such chapter.
            ``(9) The term `insular area' means the Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.
            ``(10) The term `low-demand services and referrals' means 
        the provision of health care, mental health, substance abuse, 
        and other supportive services and referrals for services in a 
        noncoercive manner, which may include medication management, 
        education, counseling, job training, and assistance in 
        obtaining entitlement benefits and in obtaining other 
        supportive service including mental health treatment and 
        substance abuse treatment.
            ``(11) The term `metropolitan city' has the meaning given 
        the term in section 102(a) of the Housing and Community 
        Development Act of 1974.
            ``(12) The term `operating costs' means expenses of 
        operating any housing assisted under this subtitle with respect 
        to--
                    ``(A) the administration, maintenance, repair, and 
                security of such housing;
                    ``(B) utilities, fuels, furnishings, and equipment 
                for such housing; and
                    ``(C) the conducting of the assessments of and the 
                provision of supportive services to the residents of 
                such housing.
            ``(13) The term `outpatient health services' means 
        outpatient health care, outpatient mental health services, 
        outpatient substance abuse services, case management services 
        and child immunization.
            ``(14) The term `private nonprofit organization' means an 
        organization--
                    ``(A) no part of the net earnings of which inures 
                to the benefit of any member, founder, contributor, or 
                individual;
                    ``(B) that has a voluntary board;
                    ``(C) that has an accounting system or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                    ``(D) that practices nondiscrimination in the 
                provision of assistance.
            ``(15) The term `project' means a structure or a portion of 
        a structure that is acquired or rehabilitated with assistance 
        provided under this subtitle or with respect to which the 
        Secretary provides technical assistance or annual payments for 
        operation costs.
            ``(16) The term `project sponsor' means an entity that--
                    ``(A) provides housing or assistance for homeless 
                individuals or families by carrying out eligible 
                activities under chapter 2 that are assisted under this 
                subtitle; and
                    ``(B) meets such minimum standards as the Secretary 
                considers appropriate.
            ``(17) The term `recipient' means a grantee (other than a 
        State distributing grant amounts to State recipients) and a 
        State recipient.
            ``(18) The term `Secretary' means the Secretary of Housing 
        and Urban Development.
            ``(19) The term `State' means a State of the United States 
        and the Commonwealth of Puerto Rico, or any agency or 
        instrumentality thereof that is established pursuant to 
        legislation and designated by the chief executive to act on 
        behalf of the jurisdiction with regard to provisions of this 
        subtitle.
            ``(20) The term `State recipient' means--
                    ``(A) a unit of general local government within a 
                State (other than an allocation unit of general local 
                government) that receives grant amounts from the State 
                under section 410(b)(3); and
                    ``(B) a private nonprofit organization that 
                receives grant amounts from a State under section 
                410(b)(4).
            ``(21)(A) The term `supportive services' means assistance 
        that--
                    ``(i) addresses the special needs of homeless 
                persons, such as deinstitutionalized persons, families 
                with children, persons with mental disabilities, other 
                persons with disabilities, the elderly, and veterans 
                intended to be served by a project; and
                    ``(ii) assists in accomplishing the purposes of the 
                different types of housing for the homeless eligible 
                for assistance under this subtitle.
            ``(B) Such term includes--
                    ``(i) food services, child care, substance abuse 
                treatment, assistance in obtaining permanent housing, 
                outpatient health services, employment counseling, 
                nutritional counseling, security arrangements for the 
                protection of residents of facilities to assist the 
                homeless, and such other services essential for 
                maintaining or moving toward independent living as the 
                Secretary determines to be appropriate; and
                    ``(ii) assistance to homeless persons in obtaining 
                other Federal, State, and local assistance available 
                for such individuals, including public assistance 
                benefits, mental health benefits, employment 
                counseling, and medical assistance.
            ``(C) Such term does not include the provision of major 
        medical equipment.
            ``(D) All or part of the supportive services may be 
        provided directly by the project sponsor or by arrangements 
        with other public or private service providers.
            ``(22) The term `unit of general local government' means--
                    ``(A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State;
                    ``(B) the District of Columbia; and
                    ``(C) any agency or instrumentality thereof that is 
                established pursuant to legislation and designated by 
                the chief executive to act on behalf of the 
                jurisdiction with regard to provisions of this 
                subtitle.
        The term includes a consortium of geographically contiguous 
        units of general local government if the Secretary determines 
        that the consortium--
                    ``(i) has sufficient authority and administrative 
                capability to carry out the purposes of this subtitle 
                on behalf of its member jurisdictions; and
                    ``(ii) will, according to a written certification 
                by the State (or State, if the consortium includes 
                jurisdictions in more than one State), direct its 
                activities to alleviation of problems of homeless 
                individuals or families within the State or States.
            ``(23) The term `urban county' has the meaning given the 
        term in section 102(a) of the Housing and Community Development 
        Act of 1974.
            ``(24) The term `very low-income families' has the same 
        meaning given the term under section 104 of the Cranston-
        Gonzalez National Affordable Housing Act.

``SEC. 404. PROVISION OF GRANTS.

    ``(a) Authority and Use.--The Secretary may make grants to eligible 
grantees in accordance with the provisions of this subtitle. Grants 
under this subtitle may be used only--
            ``(1) to carry out activities under chapter 2 for assisting 
        homeless individuals and families that are conducted to provide 
        comprehensive homeless assistance required under section 405; 
        and
            ``(2) for administrative expenses, to the extent provided 
        in section 436.
    ``(b) General Rule for Award of Grants.--Except as provided in 
subsection (c), the Secretary shall make grants using amounts 
appropriated under section 402 in the manner provided in this subtitle.
    ``(c) Insufficient Appropriations.--
            ``(1) Trigger.--If the amounts appropriated pursuant to 
        section 402 for any fiscal year are less than 50 percent of the 
        amount authorized to be appropriated under such section for the 
        year, the Secretary shall use such amounts to make grants under 
        the provisions of this title as in effect immediately before 
        the enactment of the Housing and Community Development Act of 
        1994.
            ``(2) Grant requirements.--The Secretary shall establish 
        requirements for grants made under this subsection, as the 
        Secretary considers appropriate, that are additional or 
        alternative to the requirements under the provisions of this 
        title as in effect immediately before the enactment of the 
        Housing and Community Development Act of 1994.
            ``(3) Grant criteria.--The criteria for awarding grants 
        under this subsection shall include--
                    ``(A) the extent to which there is a need for 
                assistance for homeless individuals and families in the 
                jurisdiction in which the grant will be used;
                    ``(B) the extent to which the activities proposed 
                to be carried out with grant amounts will further the 
                provision of comprehensive homeless assistance required 
                under section 405(b)(1);
                    ``(C) the extent to which private nonprofit 
                organizations providing assistance to homeless 
                individuals and families in the jurisdiction have been, 
                and will be, included in planning for the receipt of 
                assistance under this subtitle, the development of the 
                application under section 408, and the execution of the 
                proposed activities; and
                    ``(D) such other criteria as the Secretary 
                considers appropriate to further the purposes of this 
                subsection and this subtitle.
            ``(4) Set aside for indian tribes and insular areas.--In 
        making grants under this subsection, the Secretary may to set 
        aside such amounts as the Secretary considers appropriate for 
        grants for Indian tribes and insular areas.

``SEC. 405. COMPREHENSIVE HOMELESS ASSISTANCE.

    ``(a) Establishment and Maintenance.--Each applicant shall, based 
on information provided in the current comprehensive affordable housing 
strategy for the appropriate jurisdiction under section 105 of the 
Cranston-Gonzalez National Affordable Housing Act or such other plan as 
the Secretary may prescribe, use assistance provided under this 
subtitle in a manner that ensures that comprehensive homeless 
assistance is established and maintained within the jurisdiction of the 
applicant.
    ``(b) Requirements.--For purposes of this subtitle, comprehensive 
homeless assistance required under this section shall include--
            ``(1) providing a system of outreach and assessment for--
                    ``(A) determining whether an individual or family 
                is homeless, needs assistance to avoid being homeless, 
                or needs other assistance; and
                    ``(B) ensuring that individuals and families so 
                identified receive appropriate housing and supportive 
                services;
            ``(2) providing assistance to the extent necessary to avoid 
        eviction (or foreclosure) and termination of utility services 
        of low- and very low-income families to prevent such families 
        from becoming homeless;
            ``(3) making emergency shelters with appropriate supportive 
        services available to the extent necessary to ensure that 
        homeless individuals and families for which such housing is 
        appropriate receive adequate shelter, including during any 
        period in which an assessment referred to in paragraph (1) is 
        performed for such an individual or family;
            ``(4) making transitional housing with appropriate 
        supportive services available to the extent necessary to ensure 
        that homeless individuals and families for which such housing 
        is appropriate are prepared for increased responsibility and 
        permanent housing, or permanent supportive housing, after the 
        transition period;
            ``(5) making permanent supportive housing, available to the 
        extent necessary to meet the long-term housing needs of all 
        homeless individuals and families;
            ``(6) providing assistance to meet specific needs of 
        various subpopulations of the homeless, especially the unique 
        needs of homeless veterans; and
            ``(7) providing for coordination of assistance provided 
        under this subtitle and assistance provided under other 
        Federal, State, and local programs that may be used to assist 
        homeless individuals and families, including--
                    ``(A) assistance under the programs for public and 
                Indian housing and section 8 rental assistance under 
                the United States Housing Act of 1937 (including the 
                program for section 8 assistance for moderate 
                rehabilitation under section 451 of this Act and the 
                shelter plus care program for such assistance under 
                section 452 of this Act), the HOME Investment 
                Partnerships Act, the community development block grant 
                program under title I of the Housing and Community 
                Development Act of 1974, the program for supportive 
                housing for the elderly under section 202 of the 
                Housing Act of 1959, the program for supportive housing 
                for persons with disabilities under section 811 of the 
                Cranston-Gonzalez National Affordable Housing Act, and 
                the program for housing opportunities for persons with 
                AIDS under subtitle D of title VIII of the Cranston-
                Gonzalez National Affordable Housing Act;
                    ``(B) programs administered by the Director of the 
                Federal Emergency Management Agency;
                    ``(C) programs administered by the Secretary of 
                Labor, including programs for employment and training;
                    ``(D) programs administered by the Secretary of 
                Health and Human Services, including programs for 
                health care, mental health care, social services, 
                income support services, runaway youth, and unfit 
                transient facilities;
                    ``(E) programs administered by the Secretary of 
                Veterans Affairs (including programs for compensation 
                benefits, health care, and mental health care, and 
                other services and programs) that are specifically 
                designed to assist homeless veterans;
                    ``(F) programs administered by the Secretary of 
                Education, including programs for adult education and 
                education for homeless children and youth;
                    ``(G) programs administered by the Corporation for 
                National and Community Service, including programs for 
                national service; and
                    ``(H) such other assistance as the Secretary shall 
                prescribe upon consultation with the Interagency 
                Council on the Homeless.

``SEC. 406. MATCHING REQUIREMENTS.

    ``(a) In General.--Except as provided in subsection (c), each 
recipient shall supplement the amount of grants provided under this 
subtitle to the recipient with an amount of funds from non-Federal 
sources equal to 50 percent of the Federal grant, which shall include 
funds from project sponsors receiving assistance from the recipient.
    ``(b) Supplemental Funds.--Supplemental funds may include (1) the 
value of any donated material or building, the value of any lease on a 
building, (2) any salary paid to staff to carry out the program of a 
project sponsor, (3) the value of the time and services contributed by 
volunteers to carry out the program of project sponsor at a rate 
determined by the Secretary, and (4) the proceeds from bond financing 
validly issued by a State or unit of general local government, agency, 
or instrumentality thereof, and repayable with revenues derived from a 
project assisted under this subtitle, except that not more than 25 
percent of the contribution required may be derived from the proceeds 
of such bond financings. Any State or local government funds used 
independently from the program under this title, or designated for such 
use, to assist the homeless by carrying out activities that would be 
eligible for assistance under this subtitle shall be considered 
supplemental funds under this section.
    ``(c) States.--
            ``In the case of a State administering grant amounts under 
        section 410(b)(1)(A), in each fiscal year, the State shall 
        supplement the amount of grants provided under this subtitle 
        with an amount of funds from sources other than this subtitle 
        equal to 50 percent of the amount received under this subtitle. 
        Each grantee that is a State shall obtain any supplemental 
        amounts from State recipients receiving amounts under the 
        grant.
    ``(d) Prohibition of Substitution of Funds.--Assistance provided 
under this subtitle may not be used to replace other public funds 
previously used, or designated for use, to assist persons who are 
homeless.
    ``(e) Certification.--Each recipient shall certify, to the 
satisfaction of the Secretary, its compliance with the provisions of 
this section, which shall describe the sources and amounts of 
supplemental funds provided pursuant to this section.

``SEC. 407. RESPONSIBILITIES OF RECIPIENTS AND PROJECT SPONSORS.

    ``(a) Use of Assistance Through Private Nonprofit Organizations.--
Each recipient shall make available more than 50 percent of the grant 
amounts it receives for any fiscal year to project sponsors that are 
private nonprofit organizations to carry out eligible activities under 
chapter 2, except that the Secretary may waive the applicability of 
this requirement if the recipient demonstrates to the Secretary that 
the requirement interferes with the ability of the recipient to provide 
assistance under this subtitle because of a paucity of qualified 
private nonprofit organizations in the jurisdiction of the recipient.
    ``(b) Housing Quality.--Each recipient shall ensure that housing 
assisted with grant amounts provided under this subtitle is decent, 
safe, and sanitary and, when appropriate, complies with all applicable 
State and local housing codes, building codes, and licensing 
requirements in the jurisdiction in which the housing is located.
    ``(c) Prevention of Undue Benefit.--The Secretary may prescribe 
such terms and conditions as the Secretary considers necessary to 
prevent project sponsors from unduly benefiting from the sale or other 
disposition of projects other than a sale or other disposition 
resulting in the use of the project for the direct benefit of very low-
income families.
    ``(d) Confidentiality.--Each recipient shall develop and implement 
procedures to ensure the confidentiality of records pertaining to any 
individual provided family violence prevention or treatment services 
under any project and to ensure that the address or location or any 
family violence shelter project assisted with grant amounts under this 
subtitle will, except with written authorization of the person or 
person responsible for the operation of such shelter, not be made 
public.
    ``(e) Employment of Homeless Individuals.--To the maximum extent 
practicable, the Secretary shall ensure that recipients involve, 
through employment, volunteer services, or otherwise, homeless 
individuals and families in constructing, renovating, maintaining, and 
operating facilities assisted with grant amounts under this subtitle, 
in providing services so assisted, and in providing services for 
occupants of facilities so assisted.
    ``(f) Participation of Homeless Individuals.--The Secretary shall, 
by regulation, provide that each recipient shall require each project 
sponsor receiving assistance under this subtitle from the recipient to 
provide for the participation of not less than one homeless individual 
or formerly homeless individual on the board of directors or other 
equivalent policy making entity of the project sponsor, to the extent 
that such entity considers and makes policies and decision regarding 
any project, facility, services, or other activities assisted with 
grant amounts under this subtitle. A recipient may grant waivers to 
project sponsors unable to meet the requirement under the preceding 
sentence if the project sponsor agrees to otherwise consult with 
homeless or formerly homeless individuals in considering and making 
such policies and decisions.

``SEC. 408. APPLICATION.

    ``(a) Requirement.--Except as otherwise provided in section 404(c), 
the Secretary may make a grant under this subtitle only to an eligible 
grantee that submits an application under this section that is approved 
by the Secretary.
    ``(b) Form and Procedure.--Applications shall be submitted in such 
form and in accordance with such procedures as the Secretary shall, by 
regulation, establish.
    ``(c) Content.--An application under this section shall--
            ``(1) include a detailed description, based on information 
        provided in the current comprehensive housing affordability 
        strategy under section 105 of the Cranston-Gonzalez National 
        Affordable Housing Act for the appropriate jurisdiction or such 
        other plan as the Secretary may prescribe, of--
                    ``(A) the existing population of homeless 
                individuals and families for the jurisdiction of the 
                applicant; and
                    ``(B) the existing facilities and services designed 
                to assist such population;
            ``(2) include a detailed description of the comprehensive 
        homeless assistance under section 405 to be established and 
        maintained within the jurisdiction of the applicant;
            ``(3) provide an assessment of what is required to 
        establish and maintain the provision of comprehensive homeless 
        assistance required under section 405 for the jurisdiction of 
        the applicant;
            ``(4) set forth a multiyear strategy for establishing and 
        maintaining the provision of comprehensive homeless assistance 
        for the jurisdiction, as described pursuant to paragraph (2), 
        and include timetables, goals, and budget estimates for 
        accomplishing each element of the strategy;
            ``(5) set forth a 1-year action plan that identifies all 
        activities to be carried out with assistance under this 
        subtitle and demonstrates how such activities will further the 
        strategy set forth pursuant to paragraph (4);
            ``(6) except in the case of an application by a State that 
        elects under section 410(b)(1)(A) to administer grants under 
        this subtitle, describe the means the applicant will use to 
        distribute grant amounts to project sponsors and whether such 
        amounts will be awarded on a competitive or noncompetitive 
        basis;
            ``(7) contain certifications or other such forms of proof 
        of commitments of financial and other resources from each 
        public agency or private nonprofit organization that has a role 
        in establishing and maintaining the provision of comprehensive 
        homeless assistance for the jurisdiction of the applicant, 
        required under section 405;
            ``(8) contain assurances satisfactory to the Secretary that 
        activities carried out under chapter 2 with grant amounts under 
        this subtitle will comply with the requirements of this 
        subtitle;
            ``(9) in the case of an application by a State that elects 
        to under section 410(b)(1)(A) administer grants under this 
        subtitle, describe the method of distribution of such amounts 
        to State recipients;
            ``(10) except with respect to an application by a State 
        that elects to under section 410(b)(1)(A) to administer grants 
        under this subtitle, contain a certification from the public 
        official responsible for submitting the comprehensive housing 
        affordability strategy under section 105 of the Cranston-
        Gonzalez National Affordable Housing Act for the State or unit 
        of general local government within which a project is to be 
        located (or such other plan as the Secretary may require) that 
        the proposed project is consistent with the approved housing 
        strategy of such State or unit of general local government;
            ``(11) contain a certification that the applicant will 
        comply with the requirements of the Fair Housing Act, title VI 
        of the Civil Rights Act of 1964, section 504 of the 
        Rehabilitation Act of 1973, and the Age Discrimination Act of 
        1975, and will affirmatively further fair housing; and
            ``(12) contain a certification that the applicant will 
        comply with the requirements of this subtitle and other 
        applicable laws.
    ``(d) Relationship to CHAS and Consolidated Plan.--In establishing 
requirements for applications under this section, the Secretary shall 
provide that if an applicant includes in the application information 
also required under the comprehensive housing affordability strategy 
for the appropriate jurisdiction under section 105 of the Cranston-
Gonzalez National Affordable Housing Act or such other plan as the 
Secretary may require, the requirements under such subsection regarding 
such information shall be considered to be fulfilled by the submission 
of the application.

``SEC. 409. ALLOCATION AND DISTRIBUTION OF FUNDS.

    ``(a) Insular Areas.--In each fiscal year, from any amounts 
appropriated for such year to carry out this subtitle, the Secretary 
shall allocate amounts to insular areas in accordance with an 
allocation formula established by the Secretary.
    ``(b) States and Allocation Units of General Local Government.--
            ``(1) Formula allocation.--
                    ``(A) In general.--For each fiscal year, of the 
                amounts that remain after amounts are reserved for 
                insular areas under subsection (a), the Secretary shall 
                allocate assistance according to this paragraph.
                    ``(B) Formula.--The Secretary shall allocate 
                amounts under this paragraph using a formula 
                established by the Secretary that allocates amounts for 
                allocation units of general local government and 
                States, and for Indian tribes, in a manner that 
                provides that the percentage of the total amount 
                referred to in subparagraph (A) for any fiscal year 
                that is allocated for any State or allocation unit of 
                general local government, or for Indian tribes, is 
                equal to the percentage of the total amount available 
                for section 106 of the Housing and Community 
                Development Act of 1974 for the prior fiscal year that 
                was allocated for such State or allocation unit of 
                general local government, or for Indian tribes.
                    ``(C) Minimum amount.--If, in any fiscal year, 
                allocation under the provisions of subparagraphs (A) 
                and (B) would result in any allocation unit of general 
                local government receiving a grant of less than 0.05 
                percent of the amounts appropriated to carry out this 
                subtitle for the fiscal year, such amount shall instead 
                be reallocated to the State for use under section 
                410(b).
                    ``(D) 70 percent for units of general local 
                government.--In each fiscal year, the amount allocated 
                under this paragraph for each allocation unit of 
                general local government shall be the amount that 
                results from increasing all of the amounts determined 
                pursuant to the preceding subparagraphs for allocation 
                units of general local government on a pro rata basis 
                so that the sum of such amounts is equal to 70 percent 
                of the remainder of the amount appropriated for the 
                year to carry out this subtitle after amounts are 
                allocated for insular areas under subsection (a).
                    ``(E) 30 percent for states.--In each fiscal year, 
                the amount allocated under this paragraph for each 
                State shall be the amount that results from decreasing 
                all of the amounts determined pursuant to the preceding 
                subparagraphs for States on a pro rata basis so that 
                the sum of such amounts is equal to 30 percent of the 
                remainder of the amount appropriated for the year to 
                carry out this subtitle after amounts are allocated for 
                insular areas under subsection (a).
            ``(2) Grant amount for states and allocation units of 
        general local government.--
                    ``(A) In general.--The amount allocated for a 
                fiscal year under paragraph (1) for an allocation unit 
                of general local government or a State shall be the 
                maximum amount that the allocation unit or State may 
                receive under this subtitle for the fiscal year.
                    ``(B) Reduction.--In any fiscal year, the Secretary 
                may provide a grant under this subtitle for a State or 
                for an allocation unit of general local government in 
                an amount less than the amount allocated under 
                paragraph (1), if the Secretary determines based upon 
                review of the application of the jurisdiction under 
                section 408 or as a result of the annual performance 
                review and audit under section 413, that the 
                jurisdiction has failed to comply fully with the 
                requirements under section 408 or 411 or that such 
                action is otherwise appropriate.
            ``(3) Minimum state allocation.--Notwithstanding paragraph 
        (2), if, in allocating amounts for States under paragraph (1) 
        for any fiscal year, the amount allocated for the year for a 
        State is less than $2,000,000, the allocation for the State 
        shall instead be $2,000,000 and the increase shall be deducted 
        pro rata from the allocations of other States.
    ``(c) Reallocations.--Any amounts that a State or an allocation 
unit of general local government is eligible to receive for a fiscal 
year under subsection (b) that are not received for use in the 
jurisdiction, as provided by subsections (a) and (b) of section 410, or 
that become available as a result of actions under section 413(b), 
shall be added to amounts available for allocation under this section 
for the succeeding fiscal year.

``SEC. 410. ADMINISTRATION OF PROGRAM.

    ``(a) Grants to Allocation Units of General Local Government, 
Indian Tribes, and Insular Areas.--
            ``(1) In general.--Except as provided in paragraphs (2), 
        (3), and (4), an allocation unit of general local government, 
        Indian tribe, or insular area shall administer grant amounts 
        for any fiscal year received under section 409 by such 
        grantees.
            ``(2) Administration by designees of jurisdiction.--
                    ``(A) Authority to elect.--An allocation unit of 
                general local government, Indian tribe, or insular area 
                may elect for any fiscal year to designate a public 
                agency or a private nonprofit organization (or a 
                consortium of such organizations) to administer grant 
                amounts under section 409 for the jurisdiction.
                    ``(B) Election requirements.--The Secretary shall 
                prescribe the manner and time for making an election 
                under subparagraph (A), and shall establish criteria 
                for the approval of agencies and organizations 
                designated, which shall require such agencies and 
                organizations to demonstrate experience of the entity 
                in providing assistance to homeless individuals and 
                families in the jurisdiction.
                    ``(C) Direct provision of assistance.--The 
                Secretary may, at the request of the jurisdiction, 
                provide grant amounts directly to the agency or 
                organization designated under this paragraph.
            ``(3) Administration by designees of secretary.--If an 
        allocation unit of general local government, Indian tribe, or 
        insular area, or (if appropriate) a public agency or private 
        nonprofit organization designated by the jurisdiction under 
        paragraph (2), does not receive a grant under section 409 for 
        any fiscal year because of failure to meet the application 
        requirements of section 408, the Secretary may designate an 
        agency or organization meeting the criteria established under 
        paragraph (2)(B) to receive the grant.
            ``(4) Administration by secretary.--If for any fiscal year 
        the Secretary determines that the grant amounts allocated under 
        section 409 for an allocation unit of general local government, 
        Indian tribe, or insular area will not be used in the 
        jurisdiction as provided by the preceding provisions of this 
        subsection, the Secretary may administer such amounts for the 
        jurisdiction. The Secretary shall prescribe such procedures and 
        requirements as the Secretary considers appropriate for 
        administering grant amounts under this paragraph.
    ``(b) Grants to States.--
            ``(1) In general.--To receive an allocation under section 
        409, each State shall elect--
                    ``(A) to administer grant amounts received under 
                section 409, as provided in paragraphs (2) and (3); or
                    ``(B) to have the Secretary administer such grant 
                amounts for the State, as provided in paragraph (5).
        If a State elects to administer grant amounts under 
        subparagraph (A), the election shall be irrevocable.
            ``(2) State program.--A State administering grant amounts 
        as provided in paragraph (1)(A)--
                    ``(A) shall distribute the amounts remaining after 
                use in accordance with subparagraph (B) to State 
                recipients for use under this subtitle;
                    ``(B) may use up to 15 percent of the grant amounts 
                received under section 409 to carry out its own 
                homeless assistance program under this subtitle, except 
                that--
                            ``(i) such amounts may only be used for 
                        eligible activities under chapter 2 for which 
                        States are eligible recipients under this 
                        subtitle; and
                            ``(ii) the Secretary may increase the 
                        percentage limitation under this subparagraph 
                        in the case of any State homeless assistance 
                        program that is limited to providing assistance 
                        in areas of the State that are not allocation 
                        units of general local government; and
                    ``(C) may retain not to exceed 5.0 percent of the 
                amount to be distributed under subparagraph (A) to 
                State recipients to defray the cost of carrying out its 
                responsibilities under this subtitle.
        Unless a State demonstrates to the satisfaction of the 
        Secretary that the needs for assistance for activities under 
        this subtitle in areas of the State that are not allocation 
        units of general local government have been fulfilled, grant 
        amounts received by State may only be used to carry out 
        activities in areas of the State that do not include allocation 
        units of general local government.
            ``(3) Distribution of amounts to state recipients.--
                    ``(A) Choice of administration.--A State 
                administering grant amounts as provided in paragraph 
                (1)(A) shall, for each fiscal year, afford each such 
                recipient the options of--
                            ``(i) administering the grant amounts on 
                        its own behalf;
                            ``(ii) designating a public agency or a 
                        private nonprofit organization (as provided by 
                        subsection (a)(2)) to administer the grant 
                        amounts for the jurisdiction; or
                            ``(iii) entering into an agreement with the 
                        State, in consultation with private nonprofit 
                        organizations providing assistance to homeless 
                        individuals and families in the jurisdiction, 
                        under which the State will administer the grant 
                        amounts for the jurisdiction.
                A recipient may choose to exercise such options at such 
                time and in accordance with such criteria as the 
                Secretary may prescribe.
                    ``(B) Direct provision of assistance.--A State may, 
                at the request of the State recipient, provide grant 
                amounts directly to the agency or organization 
                designated under subparagraph (A)(ii).
                    ``(C) Distribution of amounts.--The State shall 
                distribute amounts to State recipients (or to agencies 
                or organizations designated under subparagraph (A)(ii), 
                as appropriate) on the basis of an application 
                containing such information as the State may prescribe. 
                Each application shall evidence an intent to establish 
                and maintain the provision of comprehensive homeless 
                assistance in the jurisdiction of the recipient, except 
                that the State may waive this requirement with respect 
                to one or more proposed activities, where the State 
                determines that--
                            ``(i) the activities are necessary to meet 
                        the needs of homeless individuals and families 
                        within the jurisdiction; and
                            ``(ii) comprehensive homeless assistance is 
                        not necessary, due to the nature and extent of 
                        homelessness in the jurisdiction.
                    ``(D) Preference for certain state recipients.--In 
                selecting State recipients and making awards under 
                subparagraph (C), the State shall give preference to 
                applications that demonstrate higher relative levels of 
                homeless need and fiscal distress.
            ``(4) State or hud administration of grants for individual 
        state recipients.--If in any fiscal year a State distributes 
        grant amounts to a State recipient, but the recipient fails to 
        receive the amounts pursuant to paragraph (3)(A), the Secretary 
        or the State, as the Secretary may provide, may distribute the 
        amounts to private nonprofit organizations in the jurisdiction. 
        If the Secretary distributes the amounts, the Secretary shall 
        deduct the amounts distributed from the grant provided to the 
        State for the fiscal year.
            ``(5) HUD administration of state program.--If a State 
        elects pursuant to paragraph (1)(B) to have the Secretary 
        administer grant amounts for the State received under section 
        409, the Secretary may distribute grant amounts to State 
        recipients for the State, in accordance with requirements and 
        procedures prescribed by the Secretary. The Secretary shall 
        establish criteria for selecting recipients and making awards 
        under this paragraph, which shall include giving preference to 
        applications that demonstrate higher relative levels of 
        homeless need and fiscal distress.

``SEC. 411. CITIZEN PARTICIPATION.

    ``(a) In General.--Each grantee who is not a State recipient shall 
ensure that citizens, and appropriate private nonprofit organizations 
and other interested groups and entities, participate fully in 
developing and carrying out the program for providing assistance under 
this subtitle in the jurisdiction of the recipient. The Secretary shall 
prescribe such requirements to carry out this section as the Secretary 
deems appropriate, which shall include requirements applicable to the 
homeless assistance planning boards referred to in subsection (b) and 
the citizen participation provisions of subsection (c), and the timing 
of, and sequence for, carrying out the requirements of such 
subsections.
    ``(b) Homeless Assistance Planning Boards.--
            ``(1) Establishment.--As a condition of a grantee who is 
        not a State recipient receiving assistance under this subtitle, 
        the chief executive officer of the appropriate unit government 
        in the jurisdiction of the grantee shall establish and provide 
        support for the operation of a homeless assistance planning 
        board under this subsection.
            ``(2) Functions.--Each board under this subsection shall 
        assist the recipient in--
                    ``(A) determining whether grant amounts of the 
                grantee should be administered by the grantee, a public 
                agency or private nonprofit organization, or the State 
                or the Secretary, under subsections (a) and (b) of 
                section 410;
                    (B) developing the application under section 408;
                    (C) overseeing the activities carried out with 
                assistance under this subtitle; and
                    (D) evaluating the performance of the grantee (and 
                recipients of the grantee) in carrying out such 
                activities.
            ``(3) Membership.--Each board under this subsection shall 
        consist of members appointed by the chief executive officer 
        referred to in paragraph (1) (subject to recommendations in 
        accordance with paragraph (4)), and shall include--
                    ``(A) not less than one member representing 
                homeless individuals and families;
                    ``(B) not less than one member representing 
                homeless advocates;
                    ``(C) not less than one member representing 
                individuals and entities providing assistance to 
                homeless individuals and families, including agencies 
                of units of general local government providing Federal 
                assistance;
                    ``(D) not less than one member representing the 
                business community;
                    ``(E) not less than one member representing labor;
                    ``(F) not less than one member who is a community 
                representative;
                    ``(G) not less than one member of the local board 
                established for the jurisdiction for purposes of 
                allocating amounts under the emergency food and shelter 
                program of the Federal Emergency Management Agency;
                    ``(H) not less than one member representing the 
                grantee; and
                    ``(I) in the case of a grantee that is a State--
                            ``(i) one member representing the State 
                        agency or instrumentality dealing with mental 
                        health; and
                            ``(ii) one member representing the State 
                        agency or instrumentality dealing with 
                        education.
            ``(4) Distribution of membership.--Not less than 50 percent 
        of the members of each board under this subsection (including 
        the members required under subparagraphs (A), (B), (C), and (G) 
        of paragraph (3)) shall be members of the board that represent 
        homeless individuals and families, homeless advocates, or 
        nongovernmental entities that provide assistance to homeless 
        individuals and families. They shall be individuals who were 
        recommended for membership by individuals and entities other 
        than a unit of general local government or any agency thereof.
            ``(5) Board review.--
                    ``(A) Applicants.--No eligible grantee may submit 
                an application to the Secretary under section 408, and 
                no grantee may submit to the Secretary a performance 
                report under subsection 413(a), unless the board under 
                this subsection for the jurisdiction of the grantee has 
                reviewed, and been provided an opportunity to include 
                any comments of the board in, the application or 
                report.
                    ``(B) State recipients.--No State recipient may 
                submit an application under section 410(b)(3) or a 
                performance report to a State, unless the board under 
                this subsection for the jurisdiction has reviewed, and 
                been provided an opportunity to include any comments of 
                the board in, the application or report.
            ``(6) Review by secretary.--A member or members of the 
        board under this subsection for a jurisdiction or other members 
        of the community may request the Secretary to review process 
        for constituting or operating the board to determine whether 
        the process is fair. If the Secretary finds that the process is 
        unfair and submits a written justification to the board within 
        15 days of the request for review, the Secretary may disapprove 
        the application under section 408 for the jurisdiction or 
        refuse to accept a performance report under section 413(a).
            ``(7) Conflicts of interest.--The Secretary shall prescribe 
        standards governing potential conflicts of interest under which 
        members of boards under this subsection may participate in 
        activities carried out under this subtitle.
    ``(c) Involvement of Citizens and Others.--
            ``(1) In general.--Each recipient shall--
                    ``(A) make available to its citizens, public 
                agencies, and other interested parties information 
                concerning the amount of assistance the jurisdiction 
                expects to receive and the range of activities that may 
                be undertaken with the assistance;
                    ``(B) publish the proposed application in a manner 
                that, in the determination of the Secretary, affords 
                affected citizens, public agencies, and other 
                interested parties a reasonable opportunity to examine 
                its content and to submit comments on it;
                    ``(C) hold one or more public hearings to obtain 
                the views of citizens, public agencies, and other 
                interested parties on the housing needs of the 
                jurisdiction; and
                    ``(D) provide citizens, public agencies, and other 
                interested parties with reasonable access to records 
                regarding any uses of any assistance the recipient may 
                have received under this subtitle during the preceding 
                5 years.
            ``(2) Notice and comment.--Before submitting any 
        performance report under section 413(a) or any substantial 
        amendment to an application under section 408, a recipient 
        shall provide citizens with reasonable notice of, and 
        opportunity to comment on, the performance report or 
        application.
            ``(3) Consideration of comments.--A recipient shall 
        consider any comments or views of citizens in preparing a final 
        application, amendment to an application, or performance report 
        for submission. A summary of such comments or views shall be 
        attached when an application, amendment to an application, or 
        performance report is submitted. The submitted application, 
        amendment, or report shall be made available to the public.
            ``(4) Authority of secretary.--The Secretary shall 
        establish procedures appropriate and practicable for providing 
        a fair hearing and timely resolution of citizen complaints 
related to applications or performance reports under this subtitle.
    ``(d) Requirements for Citizen Participation for State Recipients 
and Recipients of Amounts From the Secretary.--
            ``(1) State recipients.--The State may prescribe citizen 
        participation requirements comparable (to the extent 
        appropriate) to the requirements under the preceding provisions 
        of this section for cases in which a State distributes grant 
        amounts to State recipients, as provided in section 410(b)(2).
            ``(2) Recipients from secretary.--The Secretary may 
        prescribe citizen participation requirements comparable (to the 
        extent appropriate) to the requirements under the preceding 
        provisions of this section for cases in which the Secretary--
                    ``(A) administers the grant amounts of an 
                allocation unit of general local government, as 
                provided in section 410(a)(4); or
                    ``(B) distributes grant amounts to recipients, as 
                provided in paragraph (3), (4), or (5) of section 
                410(b).
            ``(3) Inapplicable laws.--The Federal Advisory Committee 
        Act and section 12 of the Department of Housing and Urban 
        Development Act shall not apply with respect to the actions of 
        the Secretary referred to in paragraph (2). The Secretary shall 
        establish appropriate standards under this paragraph to ensure 
        the integrity of the process for awarding assistance.

``SEC. 412. APPLICABILITY OF OTHER PROVISIONS.

    ``(a) Flood Elevation Requirements.--Flood protection standards 
applicable to housing acquired, rehabilitated, or assisted under this 
subtitle shall be no more restrictive than the standards applicable to 
any other program administrated by the Secretary.
    ``(b) Environmental Protection.--The provisions of, and regulations 
and procedures applicable under, section 104(g) of the Housing and 
Community Development Act of 1974 shall apply to assistance and 
projects under this subtitle.
    ``(c) GAO Audits.--Insofar as they relate to funds provided under 
this subtitle, the financial transactions of grantees and project 
sponsors may be audited by the General Accounting Office under such 
rules and regulations as may be prescribed by the Comptroller General 
of the United States. The representatives of the General Accounting 
Office shall have access to all books, accounts, records, reports, 
files and other papers, things, or property belonging to, or in use by 
such grantees, and project sponsors pertaining to the financial 
transactions and necessary to facilitate the audit.

``SEC. 413. REPORTS, REVIEWS, AND AUDITS.

    ``(a) Grantee Performance Report.--Each grantee shall submit to the 
Secretary a performance and evaluation report concerning the use of 
funds made available under this subtitle. The report shall be submitted 
at such time and contain such information as the Secretary shall 
prescribe, and shall be made available to the relevant boards referred 
to in section 411(b) and to citizens, public agencies, and other 
interested parties in the jurisdiction of the grantee in sufficient 
time to permit the board and the citizens, public agencies, and other 
interested parties to comment on the report before submission.
    ``(b) Reviews and Audits.--The Secretary shall, at least on an 
annual basis, make such reviews and audits as may be necessary or 
appropriate to determine--
            ``(1) in the case of a grantee (other than a grantee 
        referred to in paragraph (2)), whether the grantee--
                    ``(A) has carried out its activities in a timely 
                manner;
                    ``(B) has made progress toward establishing and 
                maintaining the comprehensive homeless assistance 
                system in conformity with its application under this 
                subtitle;
                    ``(C) has carried out its activities and 
                certifications in accordance with the requirements of 
                this subtitle and other applicable laws; and
                    ``(D) has a continuing capacity to carry out its 
                activities in a timely manner; and
            ``(2) in the case of States distributing grant amounts to 
        State recipients, whether the State--
                    ``(A) has distributed amounts to State recipients 
                in a timely manner and in conformance with the method 
                of distribution described in its application;
                    ``(B) has carried out its activities and 
                certifications in compliance with the requirements of 
                this subtitle and other applicable laws; and
                    ``(C) has made such reviews and audits of the State 
                recipients as may be necessary or appropriate to 
                determine whether they have satisfied the applicable 
                performance criteria contained in paragraph (1).
The Secretary may make appropriate adjustments in the amount of grants 
in accordance with the Secretary's findings under this subsection. With 
respect to assistance made available for State recipients, the 
Secretary may adjust, reduce, or withdraw such assistance, or take 
other action as appropriate in accordance with the Secretary's reviews 
and audits under this subsection, except that amounts already properly 
expended on eligible activities under this subtitle shall not be 
recaptured or deducted from future assistance to such recipients.

``SEC. 414. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

    ``(a) In General.--No person in the United States shall on the 
ground of race, color, national origin, religion, or sex be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity funded in whole or in part 
with funds made available under this subtitle. Any prohibition against 
discrimination on the basis of age under the Age Discrimination Act of 
1975 or with respect to an otherwise qualified handicapped individual, 
as provided in section 504 of the Rehabilitation Act of 1973, shall 
also apply to any such program or activity.
    ``(b) Limitations.--
            ``(1) Indian tribes.--No grant may be made under this 
        subtitle to an Indian tribe unless the applicant provides 
        satisfactory assurances that its program will be conducted and 
        administered in conformity with title II of Public Law 90-284. 
        The Secretary may waive, in connection with grants to Indian 
        tribes, the provisions of subsection (a).
            ``(2) Hawaiian home lands.--The provisions of this subtitle 
        relating to discrimination on the basis of race shall not apply 
        to the provision of assistance under this subtitle to the 
        Hawaiian Home Lands.

``SEC. 415. CONSULTATION.

    ``In carrying out the provisions of this subtitle, including the 
issuance of regulations, the Secretary shall consult with other Federal 
agencies administering programs affecting homeless individuals and 
families through the Interagency Council on the Homeless established 
under title II.

``SEC. 416. RECORDS, REPORTS, AND AUDITS.

    ``(a) Keeping of Records.--Any recipient (including a State 
distributing grant amounts to State recipients as provided in section 
410(b)(2)) shall keep such records as may be reasonably necessary--
            ``(1) to disclose the amounts and the disposition of the 
        grant amounts; and
            ``(2) to ensure compliance with the requirements of this 
        subtitle.
    ``(b) Access to Documents by Secretary.--The Secretary shall have 
access for the purpose of audit and examination to any books, 
documents, papers, and records of any recipient specified in subsection 
(a) that are pertinent to grant amounts received in connection with, 
and the requirements of, this subtitle.
    ``(c) Access to Documents by Comptroller General.--The Comptroller 
General of the United States, or any of the duly authorized 
representatives of the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of any recipient specified in subsection (a) that are pertinent 
to grant amounts received in connection with, and the requirements of, 
this subtitle.

``SEC. 417. REPORTS TO CONGRESS.

    ``The Secretary shall submit a report to the Congress annually, 
summarizing the activities carried out under this subtitle and setting 
forth the findings, conclusions, and recommendations of the Secretary 
as a result of the activities. The report shall be submitted not later 
than 4 months after the end of each fiscal year (except that, in the 
case of fiscal year 1995, the report shall be submitted not later than 
6 months after the end of the fiscal year).

                    ``CHAPTER 2--ELIGIBLE ACTIVITIES

``SEC. 431. HOMELESSNESS PREVENTION.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle for activities designed to help persons and families 
described in subsection (b) avoid becoming homeless, which shall 
include assistance for making mortgage payments, rental payments, and 
utility payments and any activities other than those found by the 
Secretary to be inconsistent with the purposes of this Act.
    ``(b) Requirements for Assistance.--Assistance may be provided 
under this section only to very low-income persons and families who 
have received eviction (or mortgage delinquency or foreclosure) notices 
or notices of termination of utility services and who--
            ``(1) are unable to make the required payments due to a 
        sudden reduction in income;
            ``(2) need such assistance to avoid the eviction or 
        termination of services; and
            ``(3) have a reasonable prospect of being able to resume 
        payments within a reasonable period of time.

``SEC. 432. EMERGENCY SHELTER.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle for--
            ``(1) the renovation, major rehabilitation, or conversion 
        of a building or buildings to be used as emergency shelters;
            ``(2) the provision of supportive services, if such 
        services do not supplant any services provided by the local 
        government during any part of the 12-month period ending on the 
        date of the commencement of the operation of the emergency 
        shelter; and
            ``(3) maintenance, operation, insurance, utilities, and 
        furnishings for emergency shelters.
    ``(b) Definition.--A project shall be considered emergency shelter 
for purposes of this section if the project is designed to provide 
overnight sleeping accommodations for homeless persons. An emergency 
shelter may include appropriate eating and cooking accommodations.
    ``(c) Program Requirements.--A recipient may use grant amounts 
under this subtitle for an emergency shelter project only if the 
project sponsor has agreed that it will--
            ``(1) in the case of assistance involving major 
        rehabilitation or conversion of a building, maintain the 
        building as a shelter for homeless individuals and families for 
        not less than a 10-year period unless, within such 10-year 
        period, the need for maintaining the building as a full-time 
        shelter ceases to exist and the building is used for the 
        remainder of such period to carry out other eligible activities 
        under this subtitle;
            ``(2) in the case of assistance involving rehabilitation 
        (other than major rehabilitation or conversion of a building), 
        maintain the building as a shelter for homeless individuals and 
        families for not less than a 3-year period; or
            ``(3) in the case of assistance involving only activities 
        described in paragraphs (2) and (3) of subsection (a), provide 
        services or shelter to homeless individuals and families at the 
        original site or structure or other sites or structures serving 
        the same general population for the period during which such 
        assistance is provided;
            ``(4) comply with the standards of habitability prescribed 
        under subsection (d) by the Secretary and (if applicable) the 
        State or unit of general local government; and
            ``(5) assist homeless persons in obtaining--
                    ``(A) appropriate supportive service, including 
                permanent housing, medical and mental health treatment, 
                counseling, supervision, and other services essential 
                for achieving independent living; and
                    ``(B) other Federal, State, local, and private 
                assistance available for homeless persons.
    ``(d) Minimum Standards of Habitability.--The Secretary shall 
prescribe such minimum standards of habitability as the Secretary 
determines to be appropriate to ensure that emergency shelters assisted 
under this section are environments that provide appropriate privacy, 
safety, and sanitary and other health-related conditions for homeless 
persons and families. Grantees may establish standards of habitability 
in addition to those prescribed by the Secretary.

``SEC. 433. SUPPORTIVE HOUSING FOR THE HOMELESS.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle to provide assistance to a project sponsor of supportive 
housing in the following manners:
            ``(1) Acquisition and rehabilitation.--Assistance may be 
        provided in the form of an advance in an amount not exceeding 
        cost of acquisition, substantial rehabilitation, or acquisition 
        and rehabilitation of an existing structure for use as 
        supportive housing. The repayment of any outstanding debt owed 
        on a loan made to purchase an existing structure shall be 
        considered to be a cost of acquisition eligible for an advance 
        under this paragraph if the structure was not used as 
        supportive housing before the receipt of assistance.
            ``(2) Moderate rehabilitation.--Assistance may be provided 
        in the form of a grant for moderate rehabilitation of an 
        existing structure for use as supportive housing. Assistance 
        under this paragraph shall not preclude assistance under 
        paragraph (1).
            ``(3) Operating costs.--Assistance may be provided in the 
        form of annual payments for operating costs of supportive 
        housing (including supportive housing that is newly constructed 
        with assistance provided from sources other than this subtitle) 
        in an amount not exceeding 75 percent of the annual operating 
        costs of such housing.
            ``(4) Technical assistance.--Technical assistance may be 
        provided in--
                    ``(A) establishing supportive housing in an 
                existing structure;
                    ``(B) operating supportive housing in existing 
                structures and in structures that are newly constructed 
                with assistance provided from sources other than this 
                subtitle; and
                    ``(C) providing supportive services to the 
                residents of supportive housing (including supportive 
                housing that is newly constructed with assistance 
                provided from sources other than this subtitle).
            ``(5) Employment assistance program.--Assistance may be 
        provided in the form of a grant for establishing and operating 
        an employment assistance program for the residents of 
        supportive housing, which shall include--
                    ``(A) employment of residents in the operation and 
                maintenance of the housing; and
                    ``(B) the payment of the transportation costs of 
                residents to places of employment.
            ``(6) Supportive services.--Assistance may be provided in 
        the form of a grant for costs of supportive services provided 
        to homeless individuals. Any project sponsor, including program 
        recipients under title IV of this Act before the date of the 
        enactment of the Housing and Community Development Act of 1994, 
        may reapply for such assistance or for the renewal of such 
        assistance to continue services funded under prior grants or to 
        provide other services.
            ``(7) Child care services.--Assistance may be provided in 
        the form of a grant to establish and operate a child care 
        services program for homeless families, which shall--
                    ``(A) include--
                            ``(i) establishing, licensing, and 
                        operating an onsite child care facility for the 
                        residents of transitional housing;
                            ``(ii) making contributions for the child 
                        care costs of residents of transitional housing 
                        to existing community child care programs and 
                        facilities; and
                            ``(iii) counseling designed to inform the 
                        residents of transitional housing of public and 
                        private child care services for which they are 
                        eligible; and
                    ``(B) provide only child care services that comply 
                with any applicable State and local laws and 
                regulations.
        A grant under this paragraph for any child care services 
        program may not exceed the amount equal to 75 percent of the 
        cost of operating the program for a period not exceeding 5 
        years.
    ``(b) Supportive Housing.--Housing for homeless individuals shall 
be considered to be supportive housing for purposes of this section 
if--
            ``(1) the housing is safe and sanitary and meets any 
        applicable State and local housing codes and licensing 
        requirements in the jurisdiction in which the housing is 
        located;
            ``(2) the housing is--
                    ``(A) transitional housing;
                    ``(B) permanent housing for homeless persons with 
                disabilities; or
                    ``(C) a particularly innovative project for, or 
                alternative methods of, meeting the immediate and long-
                term needs of homeless individuals and families (or is 
                part of such a project); and
            ``(3) supportive services are provided in connection with 
        the housing to address the special needs of homeless 
        individuals intended to be served by the housing.
    ``(c) Transitional Housing.--For purposes of this section, the term 
`transitional housing' means housing, the purpose of which is to 
facilitate the movement of homeless individuals and families to 
permanent housing within 24 months or such longer period as the 
Secretary determines necessary.
    ``(d) Permanent Housing for Homeless Persons With Disabilities.--
For purposes of this section, the term `permanent housing for homeless 
persons with disabilities' means community-based housing for homeless 
persons with disabilities that--
            ``(1) is a home designed solely for housing homeless 
        persons with disabilities or dwelling units in a multifamily 
        housing project, condominium project, or cooperative project;
            ``(2) in the case of a home, is located on a site that does 
        not contain another home used for the same purposes and that is 
        not contiguous to another site containing a home used for the 
        same purposes; and
            ``(3) provides long-term housing and supportive services 
        for not more than--
                    ``(A) 8 such persons in a single structure or 
                contiguous structures;
                    ``(B) 16 such persons, but only if not more than 20 
                percent of the units in a structure are designated for 
                such persons; or
                    ``(C) more than 16 persons if the applicant 
                demonstrates that local market conditions dictate the 
                development of a large project and such development 
                will achieve the neighborhood integration objectives of 
                the program within the context of the affected 
                community.
    ``(e) Program Requirements.--
            ``(1) Required agreements.--A recipient may use grant 
        amounts under this subtitle for a supportive housing project 
        under this section only if the project sponsor for the project 
        has agreed--
                    ``(A) to operate the proposed project as supportive 
                housing for not less than 10 years;
                    ``(B) to conduct an ongoing assessment of the 
                supportive services required by the residents of the 
                project;
                    ``(C) to provide such residential supervision as 
                the Secretary determines is necessary to facilitate the 
                adequate provision of supportive services to the 
                residents of the project; and
                    ``(D) to comply with such other terms and 
                conditions as the Secretary or recipient may establish 
                for purposes of carrying out this program in an 
                effective and efficient manner.
            ``(2) Occupant charge.--Each homeless individual or family 
        residing in a project assisted under this section that provides 
        supportive housing may be required to pay an occupancy charge 
        in an amount determined by the project sponsor, which may not 
        exceed the amount determined under section 3(a) of the United 
        States Housing Act of 1937. Occupancy charges paid may be 
        reserved, in whole or in part, to assist residents in moving to 
        permanent housing.
    ``(f) Single Room Occupancy Dwellings.--A project assisted under 
this section may provide supportive housing or supportive services in 
dwelling units that do not contain bathrooms or kitchen facilities and 
are appropriate for use as supportive housing or in projects containing 
some or all such dwelling units.

``SEC. 434. SAFE HAVENS FOR HOMELESS INDIVIDUALS.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle for--
            ``(1) the construction of a structure for use in providing 
        a safe haven or the acquisition, rehabilitation, or acquisition 
        and rehabilitation of an existing structure for use in 
        providing a safe haven;
            ``(2) the leasing of an existing structure for use in 
        providing a safe haven;
            ``(3) operating costs of a safe haven;
            ``(4) costs of administering a safe haven program, in an 
        amount not exceeding 10 percent of the amounts made available 
        for activities under paragraphs (1) through (3);
            ``(5) conducting outreach activities designed to inform 
        eligible persons about and attract them to a safe haven 
        program;
            ``(6) the provision of low-demand services and referrals 
        for residents of a safe haven; and
            ``(7) conducting other activities that further the purposes 
        of this section, including the modification of an existing 
        facility to use a portion of a facility to provide a safe 
        haven.
    ``(b) Definition.--For purposes of this section, the term `safe 
haven' means housing for homeless persons who, at the time, are 
unwilling or unable to participate in mental health treatment programs 
or to receive other supportive services. Such a facility may provide--
            ``(1) 24-hour residence for eligible persons who may reside 
        for an unspecified duration;
            ``(2) private or semiprivate accommodations;
            ``(3) common use of kitchen facilities, dining rooms, and 
        bathrooms;
            ``(4) supportive services to eligible persons who are not 
        residents on a drop-in basis; and
            ``(5) overnight occupancy limited to no more than 25 
        persons.

``SEC. 435. SHELTER PLUS CARE.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle to provide shelter plus care for homeless persons with 
disabilities (primarily persons who have severe and persistent mental 
or emotional impairments that seriously limit a person's ability to 
live independently, have chronic programs with alcohol, drugs, or both, 
or have acquired immunodeficiency syndrome and related diseases) and 
the families of such persons.
    ``(b) Definition.--For purposes of this section, the term `shelter 
plus care' means rental housing assistance, in connection with 
supportive services funded from sources other than under this section. 
Such rental housing assistance may be tenant-based, project-based, or 
sponsor-based.

``SEC. 436. ADMINISTRATIVE AND CAPACITY-BUILDING EXPENSES.

    ``(a) Availability of Grant Amounts.--A recipient may use grant 
amounts under this subtitle for the following expenses:
            ``(1) Administrative expenses.--During--
                    ``(A) the first year in which a recipient receives 
                grant amounts under this subtitle, for administrative 
                expenses in connection with planning the development 
                of, and establishing, its program under this subtitle;
                    ``(B) subsequent years, to defray the cost of 
                administering the program; and
                    ``(C) any year in which a recipient receives grant 
                amounts under this subtitle, to defray the cost of 
                establishing and operating the board referred to in 
                section 411(b).
        Not more than 5 percent of any amounts provided to a recipient 
        under this subtitle for a fiscal year may be used for 
        activities under this paragraph.
            ``(2) Capacity building for nonprofit organizations.--For 
        building the capacity of private nonprofit organizations to 
        participate in the comprehensive homeless assistance system of 
        the recipient, except that not more than 2 percent of any 
        amounts provided to a recipient under this subtitle for a 
        fiscal year may be used for activities under this paragraph.
    ``(b) Provision of Administrative Expenses for Certain Entities.--
            ``(1) Provision of amounts.--Any recipient under paragraph 
        (2) shall make available, to defray the administrative expenses 
        of the designee or the State, not more than 5 percent from 
        amounts eligible for this purpose under subsection (a)(1).
            ``(2) Recipients covered.--The recipients under this 
        paragraph shall be--
                    ``(A) any allocation unit of general local 
                government, Indian Tribe, or insular area, that 
                designates a public agency or a private nonprofit 
                organization under section 410(a)(2);
                    ``(B) any State recipient that designates a public 
                agency or a private nonprofit organization under 
                section 410(b)(3)(A)(ii); and
                    ``(C) any State recipient that enters into an 
                agreement under section 410(b)(3)(A)(iii) with a State.

``SEC. 437. INNOVATIVE HOMELESS INITIATIVES.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle for--
            ``(1) establishing innovative programs to demonstrate 
        methods of undertaking comprehensive strategies for assisting 
        homeless individuals and families (including homeless 
        individuals who have the disease of acquired immunodeficiency 
        syndrome or who are infected with HIV), through cooperative 
        efforts in partnership with other levels of government and the 
        private sector (including nonprofit organizations, foundations, 
        and communities) and through a variety of activities, including 
        the coordination of efforts and the filling of gaps in 
        available services and resources; and
            ``(2) to obtain technical assistance in establishing a 
        program for providing homeless assistance in accordance with 
        the provisions of this subtitle, except that not more than 10 
        percent of the amount provided to a recipient under this 
        subtitle for a fiscal year may be used under this paragraph.
    ``(b) Requirements.--A recipient may use grant amounts to establish 
an innovative program under subsection (a)(1) only if--
            ``(1) the existing public and private systems for 
        homelessness prevention, outreach, assessment, shelter, 
        services, transitional services, transitional housing, and 
        permanent housing available within the jurisdiction of the 
        recipient would benefit from additional resources to achieve a 
        comprehensive approach to meeting the needs of individuals and 
        families who are homeless, or who are very low-income and at 
        risk of homelessness;
            ``(2) the recipient works cooperatively with the Department 
        of Housing and Urban Development, nonprofit organizations, 
        foundations, other private entities, and the community, to the 
        extent feasible, to design and implement the program; and
            ``(3) the recipient obtains a commitment from the 
        jurisdiction to make necessary changes in policy and procedure 
        to provide sufficient flexibility and resources as necessary to 
        implement and sustain the program.

``SEC. 438. OTHER APPROVED ACTIVITIES.

    ``The Secretary, in cooperation with grantees, recipients, and 
other appropriate parties, shall develop additional activities to carry 
out the purposes of this subtitle. A recipient may use grants amounts 
under this subtitle to carry out any such activities developed and 
approved by the Secretary.

   ``Subtitle B--Other Permanent Housing Assistance Programs for the 
                              Homeless''.

SEC. 312. REGULATIONS AND TRANSITION PROVISIONS.

    (a) In General.--Not later than April 1, 1995, the Secretary of 
Housing and Urban Development (in this section referred to as the 
``Secretary'') shall publish final regulations to implement the 
amendments made by this subtitle. The final rule shall be published 
after notice and opportunity for public comment in accordance with 
section 553 of title 5, United States Code.
    (b) Transition Provisions.--
            (1) Emergency shelter grants program.--Notwithstanding any 
        other provision of law, during fiscal year 1995, the Secretary 
        shall allocate grants from amounts available for such year 
        under subtitle A of title IV of the Stewart B. McKinney 
        Homeless Assistance Act (as amended by this Act) in accordance 
        with the provisions of subtitle B of title IV of the Stewart B. 
        McKinney Homeless Assistance Act (Emergency Shelter Grants), as 
        such provisions existed immediately before the enactment of 
        this Act.
            (2) Failure to publish regulations.--
                    (A) In general.--If the Secretary fails to publish 
                final regulations as provided by subsection (a), the 
                Secretary shall distribute the amounts available for 
                fiscal year 1995 under subtitle A of title IV of the 
                Stewart B. McKinney Homeless Assistance Act (as amended 
                by this Act) (excluding amounts allocated under 
                paragraph (1)) in accordance with the following 
                provisions of title IV of the Stewart B. McKinney 
                Homeless Assistance Act, as such provisions existed 
                immediately before the enactment of this Act:
                            (i) Subtitle C (Supportive Housing).
                            (ii) Subtitle D (Safe Havens).
                            (iii) Subtitle F (Shelter Plus Care).
                    (B) Procedure.--For purposes of awarding assistance 
                under this paragraph, the Secretary may, as 
                appropriate--
                            (i) provide for use of a single 
                        application; and
                            (ii) publish a single notice of funding 
                        availability.
            (3) Minimum amounts.--The Secretary shall determine the 
        amount to be allocated for each of the programs referred to in 
        this subsection, but the amount so allocated for each such 
        program shall not be less than the amount appropriated for the 
        program for fiscal year 1994.
    (c) Technical Assistance.--Of any amounts appropriated to carry out 
section 2 of the HUD Demonstration Act of 1993 in fiscal year 1995, the 
Secretary may use not more than 10 percent for providing technical 
assistance to assist recipients under subtitle A of title IV of the 
Stewart B. McKinney Homeless Assistance Act (as amended by this 
subtitle) to establish a program for providing homeless assistance in 
accordance with the provisions of such subtitle A.

SEC. 313. REPORT ON SINGLE ROOM OCCUPANCY ASSISTANCE.

    Not later than July 1, 1995, the Secretary shall submit a report to 
the Congress evaluating the effectiveness of combining the programs for 
assistance for single room occupancy dwellings under sections 451 and 
452 of the Stewart B. McKinney Homeless Assistance Act (as so 
redesignated and amended by this Act) into the program for assistance 
under subtitle A of title IV of such Act and, if effective, describing 
how to provide such assistance under the program under such subtitle A.

 Subtitle B--Other Housing Assistance Programs for the Homeless Under 
                              McKinney Act

SEC. 321. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS.

    Section 451 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11401(a)), as so redesignated by section 311(3) of this Act, is 
amended--
            (1) in the second sentence of subsection (c), in the matter 
        preceding paragraph (1), by striking ``containing'' and 
        inserting the following: ``for the provision of assistance 
        under this section that is specifically provided for in the 
        comprehensive homeless assistance described in the application 
        under section 408 of the relevant eligible grantee and that 
        contains''; and
            (2) in subsection (j)(1), by inserting ``recipient under 
        subtitle A,'' after ``authority,''.

SEC. 322. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE SINGLE ROOM 
              OCCUPANCY DWELLINGS.

    Title IV of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11361 et seq.) is amended by inserting after section 451, as so 
redesignated by section 311(3) of this Act, the following new section:

``SEC. 452. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE SINGLE ROOM 
              OCCUPANCY DWELLINGS.

    ``(a) Purpose.--The purpose of the program under this section is to 
provide assistance for the moderate rehabilitation of single room 
occupancy housing to be made available for rental, in connection with 
supportive services funded from sources other than this section, to 
homeless persons with disabilities (primarily persons who are seriously 
mentally ill, have chronic problems with alcohol, drugs, or both, or 
have acquired immunodeficiency syndrome and related diseases) and the 
families of such persons.
    ``(b) Moderate Rehabilitation Assistance.--The Secretary may use 
amounts made available to carry out this section for moderate 
rehabilitation of single room occupancy housing described in section 
8(l) of the United States Housing Act of 1937 for occupancy by eligible 
persons in accordance with this section. Such amounts may be used in 
connection with the moderate rehabilitation of efficiency units if the 
building owner agrees to pay the additional cost of rehabilitating and 
operating the efficiency units.
    ``(c) Funding Limitations.--
            ``(1) Targeted populations.--To the maximum extent 
        practicable, the Secretary shall reserve not less than 50 
        percent of all amounts made available to carry out this section 
        for homeless individuals who are seriously mentally ill or have 
        chronic problems with alcohol, drugs, or both.
            ``(2) Geographical limitation.--Of the assistance made 
        available under this section for any fiscal year, not more than 
        10 percent may be used for programs located within any one unit 
        of general local government.
    ``(d) Supportive Services Requirements.--
            ``(1) Requirement of matching amounts.--Each recipient of 
        assistance under this section shall supplement the assistance 
        provided under this section with an equal amount of funds for 
        supportive services from sources other than this section. Each 
        recipient shall certify to the Secretary its compliance with 
        this paragraph, and shall include with the certification a 
        description of the sources and amounts of such supplemental 
        funds.
            ``(2) Determination of matching amounts.--In calculating 
        the amount of supplemental funds provided under this section, a 
        recipient may include the value of any lease on a building, any 
        salary paid to staff to carry out the program of the recipient, 
        and the value of the time and services contributed by 
        volunteers to carry out the program of the recipient at a rate 
        determined by the Secretary.
            ``(3) Recapture.--If the supportive services and funding 
        for the supportive services required by this subsection are not 
        provided by a recipient, the Secretary may recapture any 
        unexpended housing assistance provided under this section to 
        the recipient.
    ``(e) Contract Requirements.--Each contract for annual 
contributions entered into by the Secretary with a public housing 
agency to obligate budget authority made available to carry out this 
section shall--
            ``(1) commit the Secretary to make the authority available 
        to the public housing agency for an aggregate period of 10 
        years, and require that any amendments increasing the authority 
        shall be available for the remainder of such 10-year period;
            ``(2) provide the Secretary with the option to renew the 
        contract for an additional period of 10 years, subject to the 
        availability of authority;
            ``(3) provide that, notwithstanding any other provision of 
        law, first priority for occupancy of housing rehabilitated 
        under this section shall be given to homeless persons; and
            ``(4) require installation in the housing assisted of a 
        sprinkler system that protects all major spaces, hard-wired 
        smoke detectors, and any other fire safety improvements as may 
        be required by State or local law.
For purposes of this subsection, the term `major spaces' means 
hallways, large common areas, and other areas specified in local fire, 
building, or safety codes.
    ``(f) Applications.--
            ``(1) In general.--An application for rental housing 
        assistance under this section shall be submitted by an 
        applicant in such form and in accordance with such procedures 
        as the Secretary shall establish.
            ``(2) Minimum contents.--The Secretary shall require that 
        an application identify the need for the assistance in the 
        community to be served and shall contain at a minimum--
                    ``(A) a request for housing assistance under this 
                section specifying the number of units requested and 
                the amount of necessary budget authority;
                    ``(B) a description of the size and characteristics 
                of the population of eligible persons;
                    ``(C) an identification of the need for the program 
                in the community to be served;
                    ``(D) the identity of the proposed service provider 
                or providers (which may be, or include, the applicant) 
                and a statement of the qualifications of the provider 
                or providers;
                    ``(E) a description of the supportive services that 
                the applicant proposes to assure will be available for 
                eligible persons;
                    ``(F) a description of the resources that are 
                expected to be made available to provide the supportive 
                services required by subsection (d);
                    ``(G) a description of the mechanisms for 
                developing a housing and supportive services plan for 
                each person and for monitoring each person's progress 
                in meeting that plan;
                    ``(H) reasonable assurances satisfactory to the 
                Secretary that the supportive services will be provided 
                for the full term of the housing assistance under this 
                section and a certification from the applicant that it 
                will fund the supportive services itself if the planned 
                resources do not become available for any reason;
                    ``(I) a certification by the public official 
                responsible for submitting the comprehensive housing 
                affordability strategy under section 105 of the 
                Cranston-Gonzalez National Affordable Housing Act that 
                the proposed activities are consistent with the 
                approved housing strategy of the unit of general local 
                government within which housing assistance under this 
                section will be provided; and
                    ``(J) identification of the specific structures 
                that the recipient is proposing for assistance.
    ``(g) Selection Criteria.--The Secretary shall establish selection 
criteria for a national competition for assistance under this section 
which shall include--
            ``(1) the ability of the applicant to develop and operate 
        the proposed assisted housing and supportive services program, 
        taking into account the quality of any ongoing program of the 
        applicant;
            ``(2) geographic diversity among the projects to be 
        assisted;
            ``(3) the need for a program providing housing assistance 
        and supportive services for eligible persons in the area to be 
        served;
            ``(4) the quality of the proposed program for providing 
        supportive services and housing assistance;
            ``(5) the extent to which the proposed funding for the 
        supportive services is or will be available;
            ``(6) the extent to which the project would meet the needs 
        of the homeless persons proposed to be served by the program;
            ``(7) the extent to which the program integrates program 
        recipients into the community served by the program;
            ``(8) the cost-effectiveness of the proposed program; and
            ``(9) such other factors as the Secretary specifies in 
        regulations to be appropriate for purposes of carrying out the 
        program established by this section in an effective and 
        efficient manner.
    ``(h) Participation of Homeless Individuals.--The Secretary shall, 
by regulation, require each recipient of assistance under this section 
to provide for the consultation and participation of not less than one 
homeless individual or former homeless individual on the board of 
directors or other equivalent policymaking entity of the recipient, to 
the extent that such entity considers and makes policies and decisions 
regarding any housing assisted under this section or services for such 
housing. The Secretary may grant waivers to recipients unable to meet 
the requirement under the preceding sentence if the recipient agrees to 
otherwise consult with homeless or formerly homeless individuals in 
considering and making such policies and decisions.
    ``(i) Required Agreements.--The Secretary may not approve 
assistance under this section for an applicant unless the applicant 
agrees--
            ``(1) to operate the proposed program in accordance with 
        the provisions of this section;
            ``(2) to conduct an ongoing assessment of the housing 
        assistance and supportive services required by the participants 
        in the program;
            ``(3) to ensure the adequate provision of supportive 
        services to the participants in the program;
            ``(4) to comply with such other terms and conditions as the 
        Secretary may establish for purposes of carrying out the 
        program in an effective and efficient manner; and
            ``(5) to the maximum extent practicable, to involve 
        homeless individuals and families, through employment volunteer 
        services, or otherwise, in constructing or rehabilitating 
        housing assisted under this section and in providing services 
        required under this section.
    ``(j) Housing Standards and Rent Reasonableness.--
            ``(1) Standards required.--The Secretary shall require 
        that--
                    ``(A) before any assistance may be provided to or 
                on behalf of a person, each unit assisted under this 
                section shall be inspected by the applicant directly or 
                by another entity, including the local public housing 
                agency, to determine that the unit meets the housing 
                quality standards under section 8 of the United States 
                Housing Act of 1937 and that the occupancy charge for 
                the dwelling unit is reasonable; and
                    ``(B) the recipient shall make at least annual 
                inspections of each unit assisted under this section 
                during the term of the contract for such assistance.
            ``(2) Prohibition.--No assistance may be provided under 
        this section for a dwelling unit (A) for which the occupancy 
        charge is not reasonable, or (B) which fails to meet the 
        housing standards, unless the owner promptly corrects the 
        deficiency and the recipient verifies the correction.
    ``(k) Tenant Rent.--Each tenant of a dwelling unit assisted under 
this section shall pay as rent an amount determined in accordance with 
the provisions of section 3(a)(1) of the United States Housing Act of 
1937.
    ``(l) Administrative Fees.--From amounts made available to carry 
out this section, the Secretary shall make amounts available to pay the 
entity administering the housing assistance an administrative fee in an 
amount determined appropriate by the Secretary for the costs of 
administering the housing assistance.
    ``(m) Occupancy.--
            ``(1) Occupancy agreement.--The occupancy agreement between 
        a tenant and an owner of a dwelling unit assisted under this 
        section shall be for at least 1 month.
            ``(2) Vacancy payments.--If an eligible person vacates a 
        dwelling unit assisted under this section before the expiration 
        of the occupancy agreement, no assistance payment may be made 
        with respect to the unit after the month that follows the month 
        during which the unit was vacated, unless it is occupied by 
        another eligible person.
    ``(n) Termination of Assistance.--
            ``(1) Authority.--If an eligible individual who receives 
        assistance under this section violates program requirements, 
        the recipient may terminate assistance in accordance with the 
        process established pursuant to paragraph (2).
            ``(2) Procedure.--In terminating assistance under this 
        paragraph, the recipient shall provide a formal process that 
        recognizes the rights of individuals receiving such assistance 
        to due process of law.
    ``(o) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) The term `acquired immunodeficiency syndrome and 
        related diseases' has the meaning given such term in section 
        853 of the Cranston-Gonzalez National Affordable Housing Act.
            ``(2) The term `applicant' means a State, unit of general 
        local government, Indian tribe, or public housing agency.
            ``(3) The term `eligible person' means a homeless person 
        with disabilities (primarily persons who are seriously mentally 
        ill, have chronic problems with alcohol, drugs, or both, or 
        have acquired immunodeficiency syndrome and related diseases) 
        and the family of such a person.
            ``(4) The term `Indian tribe' has the meaning given such 
        term in section 102 of the Housing and Community Development 
        Act of 1974.
            ``(5) The term `nonprofit organization' has the meaning 
        given such term by section 104 of the Cranston-Gonzalez 
        National Affordable Housing Act, and includes community mental 
        health centers established as public nonprofit organizations.
            ``(6) The term `person with disabilities' has the meaning 
        given such term in section 811 of the Cranston-Gonzalez 
        National Affordable Housing Act.
            ``(7) The term `public housing agency' has the meaning 
        given such term in section 3(b) of the United States Housing 
        Act of 1937.
            ``(8) The term `recipient' means an applicant approved for 
        participation in the program to provide assistance under this 
        section.
            ``(9) The term `Secretary' means the Secretary of Housing 
        and Urban Development.
            ``(10) The term `seriously mentally ill' means having a 
        severe and persistent mental or emotional impairment that 
        seriously limits a person's ability to live independently.
            ``(11) The term `State' means each of the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Mariana Islands, the Virgin 
        Islands, Guam, American Samoa, and any other territory or 
        possession of the United States.
            ``(12) The term `supportive services' means assistance that 
        the Secretary determines (A) addresses the special needs of 
        eligible persons; and (B) provides appropriate services or 
        assists such persons in obtaining appropriate services, 
        including health care, mental health services, substance and 
        alcohol abuse services, child care services, case management 
        services, counseling, supervision, education, job training, and 
        other services essential for achieving and maintaining 
        independent living. Inpatient acute hospital care shall not 
        qualify as a supportive service.
            ``(13) The term `unit of general local government' has the 
        meaning given such term in section 102 of the Housing and 
        Community Development Act of 1974.
    ``(p) Authorization of Appropriations.--For purposes of providing 
assistance under this section, there are authorized to be appropriated 
$75,000,000 for fiscal year 1995 and $75,000,000 for fiscal year 
1996.''.

SEC. 323. RURAL HOMELESSNESS GRANT PROGRAM.

    Section 453 of the Stewart B. McKinney Homeless Assistance Act, as 
so redesignated by section 311(3) of this Act, is amended--
            (1) in subsection (a), by striking ``Secretary of Housing 
        and Urban Development'' and inserting ``Secretary of 
        Agriculture''; and
            (2) in subsection (k), by striking paragraph (3) and 
        inserting the following new paragraph:
            ``(3) The term `Secretary' means the Secretary of 
        Agriculture.''.

SEC. 324. CLERICAL AMENDMENT.

    The table of contents in section 101(b) of the Stewart B. McKinney 
Homeless Assistance Act is amended by striking the items relating to 
title IV and inserting the following new items:

                     ``TITLE IV--HOUSING ASSISTANCE

                  ``Subtitle A--Flexible Grant Program

                    ``Chapter 1--General Provisions

        ``Sec. 401. Purposes.
        ``Sec. 402. Authorization of appropriations.
        ``Sec. 403. Definitions.
        ``Sec. 404. Provision of grants.
        ``Sec. 405. Comprehensive homeless assistance.
        ``Sec. 406. Matching requirements.
        ``Sec. 407. Responsibilities of grantees and project sponsors.
        ``Sec. 408. Application.
        ``Sec. 409. Allocation and distribution of funds.
        ``Sec. 410. Administration of program.
        ``Sec. 411. Citizen participation.
        ``Sec. 412. Applicability of other provisions.
        ``Sec. 413. Reports, reviews, and audits.
        ``Sec. 414. Nondiscrimination in programs and activities.
        ``Sec. 415. Consultation.
        ``Sec. 416. Records, reports, and audits.
        ``Sec. 417. Reports to Congress.
                    ``Chapter 2--Eligible Activities

        ``Sec. 431. Homelessness prevention.
        ``Sec. 432. Emergency shelter.
        ``Sec. 433. Supportive housing for the homeless.
        ``Sec. 434. Safe havens for homeless individuals.
        ``Sec. 435. Shelter plus care.
        ``Sec. 436. Administrative and capacity-building expenses.
        ``Sec. 437. Innovative homeless initiatives.
        ``Sec. 438. Other approved activities.
   ``Subtitle B--Other Permanent Housing Assistance Programs for the 
                                Homeless

        ``Sec. 451. Section 8 assistance for single room occupancy 
                            dwellings.
        ``Sec. 452. Section 8 assistance for shelter plus care single 
                            room occupancy dwellings.
        ``Sec. 453. Rural homelessness grant program.
        ``Sec. 454. Use of FMHA inventory for transitional housing for 
                            homeless persons and for turnkey 
                            housing.''.

         Subtitle C--Miscellaneous Homeless Housing Provisions

SEC. 331. STRATEGY TO ELIMINATE UNFIT TRANSIENT FACILITIES.

    Section 825(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 11301 note) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(4) that States and units of general local government 
        shall eliminate the use of unfit transient facilities as 
        housing for homeless families with children not later than July 
        1, 1997, in the manner provided under the strategy.''.

                        TITLE IV--RURAL HOUSING

SEC. 401. PROGRAM AUTHORIZATIONS.

    (a) Insurance and Guarantee Authority.--Section 513(a) of the 
Housing Act of 1949 (42 U.S.C. 1483(a)) is amended to read as follows:
    ``(a) Insurance and Guarantee Authority.--
            ``(1) In general.--The Secretary may, to the extent 
        approved in appropriation Acts, insure and guarantee loans 
        under this title during fiscal years 1995 and 1996, in 
        aggregate amounts not to exceed $3,231,103,950 and 
        $3,360,037,069, respectively, as follows:
                    ``(A) For insured or guaranteed loans under section 
                502 on behalf of low-income borrowers receiving 
                assistance under section 521(a)(1), $1,802,500,000 for 
                fiscal year 1995 and $1,856,575,000 for fiscal year 
                1996.
                    ``(B) For guaranteed loans under section 502(h) on 
                behalf of low- and moderate-income borrowers, 
                $772,500,000 for fiscal year 1995 and $795,675,000 for 
                fiscal year 1996.
                    ``(C) For loans under section 504, $36,050,000 for 
                fiscal year 1995 and $37,131,500 for fiscal year 1996.
                    ``(D) For insured loans under section 514, 
                $18,053,950 for fiscal year 1995 and $18,595,569 for 
                fiscal year 1996.
                    ``(E) For insured loans under section 515, 
                $600,000,000 for fiscal year 1995 and $650,000,000 for 
                fiscal year 1996.
                    ``(F) For loans under section 523(b)(1)(B), 
                $1,000,000 for fiscal year 1995 and $1,030,000 for 
                fiscal year 1996.
                    ``(G) For site loans under section 524, $1,000,000 
                for fiscal year 1995 and $1,030,000 for fiscal year 
                1996.
            ``(2) Limitation on use.--Notwithstanding any other 
        provision of law, insured or guaranteed loan authority in this 
        title for any fiscal year shall not be transferred or used for 
        any purpose not specified in this title.''.
    (b) Authorization of Appropriations.--Section 513(b) of the Housing 
Act of 1949 (42 U.S.C. 1483(b)) is amended to read as follows:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996, and to remain available 
until expended, the following amounts:
            ``(1) For grants under section 502(c)(5)(C)(i), $10,000,000 
        for fiscal year 1995, and $10,000,000 for fiscal year 1996.
            ``(2) For grants under section 504, $31,000,000 for fiscal 
        year 1995 and $31,930,000 for fiscal year 1996.
            ``(3) For purposes of section 509(c), $1,000,000 for fiscal 
        year 1995 and $1,030,000 for fiscal year 1996.
            ``(4) For project preparation grants under section 
        509(f)(6), $5,688,278 for fiscal year 1995 and $5,858,926 for 
        fiscal year 1996.
            ``(5) In fiscal years 1995 and 1996, such sums as may be 
        necessary to meet payments on notes or other obligations issued 
        by the Secretary under section 511 equal to--
                    ``(A) the aggregate of the contributions made by 
                the Secretary in the form of credits on principal due 
                on loans made pursuant to section 503; and
                    ``(B) the interest due on a similar sum represented 
                by notes or other obligations issued by the Secretary.
            ``(6) For grants for service coordinators under section 
        515(y), $1,073,260 for fiscal year 1995 and $1,105,458 for 
        fiscal year 1996.
            ``(7) For financial assistance under section 516--
                    ``(A) for low-rent housing and related facilities 
                for domestic farm labor under subsections (a) through 
                (j) of such section, $15,000,000 for fiscal year 1995 
                and $18,000,000 for fiscal year 1996; and
                    ``(B) for housing for rural homeless and migrant 
                farmworkers under subsection (k) of such section, 
                $10,269,230 for fiscal year 1995 and $11,407,307 for 
                fiscal year 1996.
            ``(8) For grants under section 523(f), $14,918,314 for 
        fiscal year 1995 and $15,365,863 for fiscal year 1996.
            ``(9) For grants under section 533, $33,056,408 for fiscal 
        year 1993 and $34,048,100 for fiscal year 1994.''.
    (c) Rental Assistance Payment Contracts.--Section 513(c) of the 
Housing Act of 1949 (42 U.S.C. 1483(c)(1)) is amended by striking 
``(c)'' and all that follows through the end of paragraph (1) and 
inserting the following:
    ``(c) Rental and Operating Assistance.--(1) The Secretary, to the 
extent approved in appropriations Acts for fiscal years 1995 and 1996, 
may enter into rental assistance payment contracts under section 
521(a)(2)(A) and contracts for operating assistance under section 
521(a)(5), aggregating $454,079,620 for fiscal year 1995 and 
$467,702,009 for fiscal year 1996.''.
    (d) Supplemental Rental Assistance Payment Contracts.--Section 
513(d) of the Housing Act of 1949 (42 U.S.C. 1483(d)) is amended to 
read as follows:
    ``(d) Supplemental Rental Assistance Contracts.--The Secretary, to 
the extent approved in appropriations Acts for fiscal years 1995 and 
1996, may enter into 5-year supplemental rental assistance contracts 
under section 502(c)(5)(D) aggregating $13,070,160 for fiscal year 1995 
and $13,462,265 for fiscal year 1996.''.
    (e) Rural Housing Voucher Authority.--Section 513(e) of the Housing 
Act of 1949 (42 U.S.C. 1483(e)) is amended to read as follows:
    ``(e) Rural Housing Vouchers.--There are authorized to be 
appropriated for rural housing vouchers under section 542, $30,000,000 
for fiscal year 1995 and $40,000,000 for fiscal year 1996.''.
    (f) Rental Housing Loan Authority.--Section 515(b) of the Housing 
Act of 1949 (42 U.S.C. 1485(b)) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.

SEC. 402. ELIGIBILITY OF NATIVE AMERICANS FOR RURAL HOUSING PROGRAMS.

    Section 501(b)(6) of the Housing Act of 1949 (42 U.S.C. 1471(b)(6)) 
is amended by adding at the end the following new sentence: ``In any 
case in which assistance made available under this title may be 
provided to a State or State agency or in which a State or State agency 
is eligible to participate in a program or activity under this title, 
such assistance may also be provided to Indian tribes and tribal 
agencies and Indian tribes and tribal agencies shall be eligible to 
participate, respectively.''.

SEC. 403. ESCROW FUND.

    Section 501(e) of the Housing Act of 1949 (42 U.S.C. 1471(e)) is 
amended by striking the third and fourth sentences and inserting the 
following: ``The Secretary may establish in the Treasury of the United 
States an escrow fund for the deposit of such periodic payments. The 
Secretary may direct the Secretary of the Treasury to invest and 
reinvest amounts in the escrow fund in public debt securities with 
maturities suitable for the needs of the escrow fund and bearing 
interest at rates determined by the Secretary of the Treasury, taking 
into consideration the current average market yield on outstanding 
marketable obligations of the United States of comparable maturities. 
Any interest earned shall be credited to the escrow fund. The Secretary 
shall disburse amounts at the appropriate time or times for the 
purposes for which the amounts were escrowed in the fund. The Secretary 
shall pay a uniform rate of interest on escrowed amounts. The interest 
rate to be paid on such amounts shall be determined by the Secretary 
based on the interest earned less an amount not to exceed 1 percent to 
be used to offset expenses in carrying out the provisions of this 
title.''.

SEC. 404. SECTION 502 HOMEOWNERSHIP LOANS.

    (a) Remote Rural Areas.--Section 502(f) of the Housing Act of 1949 
(42 U.S.C. 1472(f)) is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraph (2) as paragraph (1); and
            (3) by adding at the end the following new paragraph:
            ``(2) Security.--In making a loan under this section for 
        housing located in a rural area that is a remote rural area 
        (which shall include tribal allotted or Indian trust land) 
        where the borrower resides or is employed, the Secretary shall 
        consider the actual replacement cost of the property and 
        structure for which the loan is made as adequate security for 
        the loan required under subsection (b).''.
    (b) Permanent Deferred Mortgage Program.--Section 502(g) of the 
Housing Act of 1949 (42 U.S.C. 1472(g)) is amended to read as follows:
    ``(g) Deferred Mortgage Program.--With respect to families or 
persons otherwise eligible for assistance under subsection (d) but 
having incomes below the amount determined to qualify for a loan under 
this section, the Secretary may defer mortgage payments beyond the 
amount affordable at 1 percent interest, taking into consideration 
income, taxes and insurance. Deferred amounts shall not exceed 25 
percent of the amount of the payment due at 1 percent interest and 
shall be subject to recapture.''.
    (c) Reamortization.--Section 505 of the Housing Act of 1949 (42 
U.S.C. 1475) is amended--
            (1) in the section heading, by inserting ``, 
        reamortization,'' after ``moratorium'';
            (2) in subsection (a), by inserting before the last 
        sentence the following: ``The Secretary may not foreclose such 
        a mortgage securing such a loan upon which a moratorium has 
        been granted solely because the borrower does not have the 
        ability to repay the loan. Upon the expiration of a moratorium, 
        the Secretary shall, subject to the availability of amounts for 
        assistance under this title, enter into an agreement with the 
        borrower providing to the borrower such assistance as the 
        Secretary is authorized to provide under this title and may 
        foreclose with respect to the loan only if the borrower fails 
        to make 3 monthly payments required under such agreement.'';
            (3) by redesignating subsection (b) as subsection (c); and
            (4) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Reamortization.--
            ``(1) Authority.--With respect to a loan made under section 
        502, after a moratorium under subsection (a) of this section 
        for the loan or at any other time the Secretary considers 
        appropriate, the Secretary may reamortize the outstanding 
        indebtedness, including principal and interest, under the loan 
        for a period not to exceed 38 years from the date of the making 
        of the loan, subject to the provisions of paragraph (2). The 
        authority of the Secretary under this subsection to modify 
        loans shall be effective for any fiscal year only to such 
        extent or in such amounts as are or have been provided for such 
        costs in appropriation Acts for such fiscal year.
            ``(2) Graduated repayment agreement.--In reamortizing a 
        loan pursuant to paragraph (1), the Secretary may lower the 
        interest rate to the existing lending rate for loans under 
        section 502 or establish a schedule of payments under the loan 
        that provides, after the application of interest credit, for 
        payments in an amount less than the amount of the payments 
        originally provided for under the loan agreement for a period 
        not exceeding that required to amortize the loan over its term, 
        except that such period may not exceed 3 years.''.
    (d) Eligibility of Area.--Section 502 of the Housing Act of 1949 
(42 U.S.C. 1472) is amended by adding at the end the following new 
subsection:
    ``(i) Notwithstanding section 520, the Secretary may make loans 
under this section for properties in the Pine View West Subdivision, 
located in Gibsonville, North Carolina, in the same manner as provided 
under this section for properties in rural areas.''.

SEC. 405. LOAN GUARANTEES.

    Section 502(h)(11) of the Housing Act of 1949 (42 U.S.C. 
1472(h)(11)) is amended by adding at the end the following new 
sentence: ``The Secretary may not pool or reallocate any authority to 
guarantee loans under this section that was allocated for use in any 
State before August 1 of the fiscal year in which such authority was 
allocated.''.

SEC. 406. PREPAYMENT OF RURAL RENTAL HOUSING LOANS.

    (a) Equity Takeout Loans.--
            (1) Authority and limitation.--Section 502(c)(4)(B)(iv) of 
        the Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(iv)) is 
        amended by inserting before the period at the end the 
        following: ``or under paragraphs (1) and (2) of section 514(j), 
        except that an equity loan referred to in this clause may not 
        be made available after the date of the enactment of the 
        Housing and Community Development Act of 1994 unless the 
        Secretary determines that the other incentives available under 
        this subparagraph are not adequate to provide a fair return on 
        the investment of the borrower, to prevent prepayment of the 
        loan insured under section 514 or 515, or to prevent the 
        displacement of tenants of the housing for which the loan was 
        made''.
            (2) Approval of assistance.--Subparagraph (C) of section 
        502(c)(4) of the Housing Act of 1949 is amended by striking the 
        matter preceding clause (i) and inserting the following:
    ``(C) Approval of Assistance.--The Secretary may approve assistance 
under subparagraph (B) for assisted housing only if the restrictive 
period has expired for any loan for the housing made or insured under 
section 514 or 515 pursuant to a contract entered into after December 
21, 1979, but before the date of the enactment of the Department of 
Housing and Urban Development Reform Act of 1989, and the Secretary 
determines that the combination of assistance provided--''.
            (3) Loan terms.--Section 514 of the Housing Act of 1949 (42 
        U.S.C. 1484) is amended by adding at the end the following new 
        subsection:
    ``(j) Equity Takeout Loans for Preservation of Low-Income 
Housing.--With respect to a loan insured under subsection (a), the 
Secretary may--
            ``(1) make or insure an equity loan in the form of a 
        supplemental loan for the purpose of equity takeout to the 
        owner of housing financed with a loan insured under this 
        section pursuant to a contract entered into before December 15, 
        1989, for the purpose of extending the affordability of the 
        housing for low-income families or persons and very low-income 
        families or persons for not less than 20 years, except that 
        such loan may not exceed 90 percent of the value of the equity 
        in the project as determined by the Secretary;
            ``(2) transfer and reamortize an existing loan in 
        connection with assistance provided under paragraph (1); and
            ``(3) make or insure a loan to enable a nonprofit 
        organization or public agency to make a purchase described in 
        section 502(c)(5).''.
            (4) Technical correction relating to section 515 housing.--
        Section 515(c)(1) of the Housing Act of 1949 (42 U.S.C. 
        1485(c)(1)) is amended by striking ``December 21, 1979'' and 
        inserting ``December 15, 1989''.
    (b) Phase-In of Rent Increases.--Section 502(c)(4)(B)(vi) of the 
Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(vi)) is amended by 
inserting before the period at the end the following: ``, except that 
any such increase in rents for current tenants (except for increases 
made necessary by increases in operating costs) shall (I) be phased in 
equally over a period of not less than 3 years, if such increase is 30 
percent or more, and (II) be limited to not more than 10 percent per 
year if such increase is more than 10 percent but less than 30 
percent''.
    (c) Treatment of Acceleration Upon Default.--Section 502 of the 
Housing Act of 1949 (42 U.S.C. 1472) is amended--
            (1) in subsection (b)(2), by inserting ``or any payment in 
        the case of acceleration of the amount due under such a loan 
        pursuant to any default,'' after ``515''; and
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by inserting before the 
                1st comma the following: ``, accept any payment 
                tendered in the case of acceleration of the amount due 
                pursuant to any default on'';
                    (B) in paragraph (1)(B), by inserting before the 
                1st comma the following: ``, accept any payment 
                tendered in the case of acceleration of the amount due 
                pursuant to any default on'';
                    (C) in paragraph (2)--
                            (i) by inserting after ``prepaid'' the 
                        following: ``, paid in full pursuant to 
                        acceleration of the amount due resulting from 
                        default,''; and
                            (ii) by inserting ``, payment,'' after 
                        ``prepayment'';
                    (D) in paragraph (4)(A), by inserting after 
                ``prepay,'' the following: ``accepting any payment 
                tendered in the case of acceleration of the amount due 
                pursuant to any default on,''; and
                    (E) in paragraph (5)--
                            (i) in subparagraph (A)(ii), by inserting 
                        after ``prepay,'' the following: ``accept the 
                        payment tendered in the case of acceleration of 
                        the amount due pursuant to default on,'';
                            (ii) in the 1st sentence of subparagraph 
                        (F), by inserting after ``prepay,'' the 
                        following: ``accept payment tendered in the 
                        case of acceleration of the amount due pursuant 
                        to default on,'';
                            (iii) in the 2d sentence of subparagraph 
                        (F), by inserting after ``prepay,'' the 
                        following: ``payment tendered in the case of 
                        acceleration of the amount due pursuant to 
                        default,'';
                            (iv) in the last sentence of subparagraph 
                        (F), by striking ``offers to prepay,'' and 
                        inserting the following: ``such offers to 
                        prepay, payments in the case of acceleration of 
                        the amount due pursuant to default,''; and
                            (v) in the matter in subparagraph (G) that 
                        precedes clause (i), by inserting after 
                        ``prepay,'' the following: ``any payment 
                        tendered in the case of acceleration of the 
                        amount due pursuant to default on,''.
    (d) Test for Allowable Prepayment.--Section 502(c)(5)(G)(ii) of the 
Housing Act of 1949 (42 U.S.C. 1472(c)(5)(G)(ii)) is amended to read as 
follows:
            ``(ii) the Secretary makes a written finding that--
                    ``(I) prepayment, payment in the case of 
                acceleration, or refinancing will not (a) materially 
                increase economic hardship for current tenants, and (b) 
                involuntarily displace current tenants (except for good 
                cause), where comparable and affordable housing is not 
                readily available at the time of displacement, 
                determined without regard to the availability of 
                Federal housing assistance that would address any such 
                hardship or involuntary displacement; and
                    ``(II) the supply of vacant, comparable housing is 
                sufficient to ensure that such prepayment will not 
                materially affect (a) the availability of decent, safe, 
                and sanitary housing affordable to low-income and very 
                low-income families or persons in the area that the 
                housing could reasonably be expected to serve, (b) the 
                ability of low-income and very low-income families or 
                persons to find affordable, decent, safe, and sanitary 
                housing near employment opportunities, or (c) the 
                housing opportunities of minorities in the community 
                within which the housing is located.''.

SEC. 407. DESIGNATION OF UNDERSERVED AREAS AND RESERVATION OF 
              ASSISTANCE.

    (a) Reauthorization and Set-Aside.--Section 509(f)(4) of the 
Housing Act of 1949 (42 U.S.C. 1479(f)(4)) is amended--
            (1) in subparagraph (A)--
                    (A) in the first sentence--
                            (i) by striking ``5.0 percent in fiscal 
                        years 1993 and 1994'' and inserting ``not less 
                        than 5 percent or more than 10 percent for each 
                        of fiscal years 1995 and 1996''; and
                            (ii) by striking ``514, 515, and 524'' and 
                        inserting ``and 515''; and
                    (B) in the second sentence, by striking ``sections 
                514 and 515'' and inserting ``section 515''; and
            (2) in subparagraph (B)(ii), by striking ``5 percent'' and 
        inserting ``10 percent''.
    (b) Poverty Level for Designation.--Section 509(f)(1) of the 
Housing Act of 1949 is amended--
            (1) in subparagraph (A), by striking ``20 percent'' and 
        inserting ``15 percent''; and
            (2) in subparagraph (B), by striking ``10 percent'' and 
        inserting ``5 percent''.
    (c) Poverty Level for Preference.--Section 509(f)(2) of the Housing 
Act of 1949 is amended--
            (1) in subparagraph (A), by striking ``28 percent'' and 
        inserting ``20 percent''; and
            (2) in subparagraph (B), by striking ``13 percent'' and 
        inserting ``7 percent''.
    (d) Additional Qualification as Underserved Area.--Section 
509(f)(1) of the Housing Act of 1949 is amended by inserting after 
subparagraph (B) the following new flush sentence:
        ``The Secretary may also designate a county or community as a 
        targeted underserved area if the Secretary determines that the 
        county or community has severe unmet housing needs, including 
        needs caused by severe economic and social dislocation such as 
        natural disasters, structural employment changes, or persistent 
        poverty, or has experienced long-term population and job 
        losses.''.
    (e) Geographical Diversity.--Section 509(f)(1) of the Housing Act 
of 1949 is amended by adding at the end the following: ``In designating 
targeted underserved areas under this paragraph for any fiscal year, 
the Secretary may not designate more than 10 counties and communities 
located in any single State or in the Commonwealth of Puerto Rico. If 
more than 10 counties and communities in any single State or the 
Commonwealth of Puerto Rico qualify under this paragraph for 
designation as an underserved area, the Secretary shall designate the 
counties and communities for which the sum of the percentages under 
subparagraphs (A) and (B) are the greatest.''.
    (f) 2-Year and 3-Year Designations.--Section 509(f) of the Housing 
Act of 1949 (42 U.S.C. 1479(f)) is amended--
            (1) in paragraph (1)--
                    (A) in the 1st sentence, by striking ``in each 
                fiscal year''; and
                    (B) in the 2d sentence, by striking ``year in'' and 
                inserting ``first year for'';
            (2) in paragraph (2)--
                    (A) in the first sentence, by striking ``paragraph 
                (4)'' and inserting ``paragraph (5)''; and
                    (B) by striking the last sentence;
            (3) in paragraph (3)(B), by striking ``paragraph (2)'' and 
        inserting ``paragraph (3)'';
            (4) in paragraph (4)(A), by striking ``paragraph (7)'' and 
        inserting ``paragraph (8)'';
            (5) by redesignating paragraphs (2) through (8) as 
        paragraphs (3) through (9), respectively; and
            (6) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Timing and duration of designations.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall redesignate the 
                targeted underserved areas under this subsection once 
                every 2 fiscal years and such designations shall remain 
                in effect for a period of 2 fiscal years. The first 
                such 2-year designation shall be made for fiscal years 
                1995 and 1996.
                    ``(B) Designations for indian areas.--The Secretary 
                shall ensure that, at all times, not less than 5 
                counties or communities that contain tribal allotted or 
                Indian trust land are included among the 100 counties 
                and communities designated as targeted underserved 
                areas. The Secretary shall redesignate the counties or 
                communities designated as a targeted underserved area 
                in compliance with this subparagraph once every 3 
                fiscal years and such designations shall remain in 
                effect for 3 fiscal years. The first such 3-year 
                designation shall be made for fiscal years 1995 through 
                1997. Upon designation, the Secretary shall specify any 
                targeted underserved area designated in compliance with 
                this subparagraph.''.

SEC. 408. ADMINISTRATIVE APPEALS.

    (a) Appeals.--Section 510(g) of the Housing Act of 1949 (42 U.S.C. 
1480(g)) is amended--
            (1) by inserting after ``termination and'' the following: 
        ``, in the case of any eviction not related to any drug-related 
        or criminal activity, nonpayment of rent, or activity that 
        threatens the health, safety, or right to peaceful enjoyment of 
        the premises by other residents,''; and
            (2) by inserting after ``reverse the decision'' the 
        following: ``and is mutually selected within a reasonable 
        period of time by the person adversely affected by the 
        reduction or termination of assistance and the person reducing 
        or terminating assistance''.
    (b) Attorneys.--Section 510(d)(1) of the Housing Act of 1949 is 
amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``or 515'' after ``502''; and
            (2) in subparagraph (C)(ii), by inserting ``with respect to 
        litigation under section 502,'' before ``representation''.

SEC. 409. SECTION 515 RURAL RENTAL HOUSING.

    (a) Loan Term.--Section 515(a)(2) of the Housing Act of 1949 (42 
U.S.C. 1485(a)(2)) is amended by inserting before the semicolon the 
following: ``, except that the Secretary may also make loans for a 
period of up to 30 years from the making of the loan''.
    (b) Development Cost.--Section 515(e)(4) of the Housing Act of 1949 
is amended by inserting ``franchise fees,'' after ``impact fees,''.
    (c) Limitation on Project Transfers.--Section 515 of the Housing 
Act of 1949 (42 U.S.C. 1485) is amended by inserting after subsection 
(g) the following new subsection:
    ``(h) Project Transfers.--After the date of the enactment of the 
Housing and Community Development Act of 1994, any interest in the 
ownership of a project for which a loan is made or insured under this 
section may be transferred only if the Secretary determines that such 
transfer would be in the best interests of the tenants of the housing 
for which the loan was made or insured and of the Federal 
Government.''.
    (d) Equity Loans.--Section 515(t) of the Housing Act of 1949 is 
amended--
            (1) by striking paragraphs (4) and (5); and
            (2) by redesignating paragraphs (6) through (8) as 
        paragraphs (4) through (6), respectively.
    (e) Set-Aside for Nonprofit Entities.--The first sentence of 
section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1)) is 
amended by striking ``fiscal years 1993 and 1994'' and inserting 
``fiscal years 1995 and 1996''.
    (f) Authority for Streamlined Mortgage Modifications.--Section 515 
of the Housing Act of 1949 (42 U.S.C. 1485) is amended by adding at the 
end the following new subsection:
    ``(aa) Mortgage Modifications.--
            ``(1) Purpose and authority.--In order to reduce the amount 
        of debt service payments and operating costs of borrowers under 
        loans made or insured under this section, reduce rents paid by 
        residents of housing financed with such loans, and reduce the 
        amount of rental assistance necessary for such housing, the 
        Secretary may refinance the outstanding principal obligation of 
        a loan made under this subsection in accordance with the 
        provisions applicable (at the time of such refinancing) to 
        loans made under this section that the Secretary determines are 
        appropriate for purposes of this subsection and the terms and 
        conditions of the original loan. The authority of the Secretary 
        under this subsection to modify loans shall be effective for 
        any fiscal year only to such extent or in such amounts as are 
        or have been provided for such costs in appropriation Acts for 
        such fiscal year.
            ``(2) Use of housing.--Any terms of the original loan 
        relating to use of the housing and related facilities for the 
        purposes specified in this section shall continue to apply to 
        the housing in the same manner as if the loan were not modified 
        under this subsection.
            ``(3) Treatment of modified mortgage under prepayment 
        restrictions.--Any loan modified under this subsection shall be 
        considered a loan originally made under this section, for 
        purposes of the limitations under subsection (c) on prepayment 
        and refinancing under subsection (b)(3). For purposes of 
        determining the financial status of the loan or the housing 
        securing the loan, the Secretary may consider the terms of the 
        refinancing.
            ``(4) Terms.--The Secretary shall, by regulation, establish 
        any requirements and conditions the Secretary considers 
        appropriate to provide for refinancing under this subsection, 
        including any limitations on term of the refinancing loan.
            ``(5) Expedited procedure.--The Secretary shall establish 
        an expedited procedure for providing refinancing under this 
        subsection, which--
                    ``(A) shall not require application under the same 
                procedures applicable to loans made under subsection 
                (a); and
                    ``(B) shall take into consideration any information 
                obtained by the Secretary in making and servicing the 
                loan under subsection (a) for which refinancing under 
                this subsection is requested.''.
    (g) Repeal of Prohibitions.--Section 515 of the Housing Act of 1949 
is amended by striking subsection (z).
    (h) Location of Projects.--Section 532 of the Housing Act of 1949 
(42 U.S.C. 1490l) is amended--
            (1) in subsection (a), by inserting ``other than assistance 
        under section 515'' after ``in making assistance''; and
            (2) by adding at the end the following new subsection:
    ``(c) Allocation of Section 515 Loans.--
            ``(1) Procedure.--The Secretary shall make assistance under 
        section 515 available pursuant to an objective procedure 
        established by the Secretary, under which the Secretary shall 
        identify counties and communities having the greatest need for 
        such assistance and designate such counties and communities to 
        receive such assistance. Under such procedure, the Secretary 
        shall use objective measures to determine the need for rental 
        housing assistance, which may include the incidence of poverty, 
        substandard housing, lack of mortgage credit, lack or 
        insufficient amount of affordable housing, and other factors 
        demonstrating a need for affordable housing.
            ``(2) Information.--The Secretary shall use information 
        from the decennial censuses of the United States, relevant 
        comprehensive affordable housing strategies under section 105 
        of the Cranston-Gonzalez National Affordable Housing Act, and 
        other reliable sources obtained by the Secretary which 
        demonstrate the need for affordable rental housing in rural 
        areas.
            ``(3) Designation.--A designation under paragraph (1) shall 
        not be effective for a period of more than 3 years, but may be 
        renewed by the Secretary under the procedure under paragraph 
        (1). The Secretary shall cause to be published in the Federal 
        Register a list of areas designated under paragraph (1) and a 
        reasonable timetable for submission of preapplications. The 
        Secretary shall take such other reasonable actions as the 
        Secretary considers appropriate to notify the public of such 
        designations.''.

SEC. 410. OPTIONAL CONVERSION OF RENTAL ASSISTANCE PAYMENTS TO 
              OPERATING SUBSIDY FOR MIGRANT FARMWORKER PROJECTS.

    (a) In General.--Section 521(a) of the Housing Act of 1949 (42 
U.S.C. 1490a(a)) is amended by adding at the end the following new 
paragraph:
    ``(5) Operating Assistance for Migrant Farmworker Projects.--
            ``(A) Authority.--In the case of housing (and related 
        facilities) for migrant farmworkers provided or assisted with a 
        loan under section 514 or a grant under section 516, the 
        Secretary may, at the request of the owner of the project, use 
        amounts provided for rental assistance payments under paragraph 
        (2) to provide assistance for the costs of operating the 
        project. Any project assisted under this paragraph may not 
        receive rental assistance under paragraph (2).
            ``(B) Amount.--In any fiscal year, the assistance provided 
        under this paragraph for any project shall not exceed an amount 
        equal to 90 percent of the operating costs for the project for 
        the year, as determined by the Secretary. The amount of 
        assistance to be provided for a project under this paragraph 
        shall be an amount that makes units in the project available to 
        migrant farmworkers in the area of the project at rates 
        generally not exceeding 30 percent of the monthly adjusted 
        incomes of such farmworkers, based on the prevailing incomes of 
        such farmworkers in the area.
            ``(C) Submission of information.--The owner of a project 
        assisted under this paragraph shall be required to provide to 
        the Secretary, at least annually, a budget of operating 
        expenses and estimated rental income, which the Secretary shall 
        use to determine the amount of assistance for the project.
            ``(D) Definitions.--For purposes of this paragraph, the 
        following definitions shall apply:
                    ``(i) The term `migrant farmworker' shall have the 
                same meaning given the term in section 516(k)(7).
                    ``(ii) The term `operating cost' means expenses 
                incurred in operating a project, including expenses 
                for--
                            ``(I) administration, maintenance, repair, 
                        and security of the project;
                            ``(II) utilities, fuel, furnishings, and 
                        equipment for the project; and
                            ``(III) maintaining adequate reserve funds 
                        for the project.''.
    (b) Conforming Amendments.--Title V of the Housing Act of 1949 (42 
U.S.C. 1471 et seq.) is amended--
            (1) in section 502--
                    (A) in subsection (c)(1)(A)(i), by striking ``or 
                (a)(2)'' and inserting ``, (a)(2), or (5)'';
                    (B) in subsection (c)(4)(B)(ii), by inserting 
                before the period at the end the following: ``, or 
                additional assistance or an increase in assistance 
                provided under section 521(a)(5)'';
                    (C) in subsection (c)(4)(B)(iii), by inserting 
                before the period at the end the following: ``, or 
                current tenants of projects not assisted under section 
                521(a)(5)'';
                    (D) in subsection (c)(5)(C)(iii)--
                            (i) by striking the 2d comma; and
                            (ii) by inserting ``or any assistance 
                        payments received under section 521(a)(5),'' 
                        before ``with respect''; and
                    (E) in subsection (c)(5)(D), by inserting before 
                the period at the end the following: ``or, in the case 
                of housing assisted under section 521(a)(5), does not 
                exceed the rents established for the project under such 
                section'';
            (2) in the second sentence of section 509(f)(5) (as 
        redesignated by the preceding provisions of this title), by 
        striking ``an amount of section 521 rental assistance'' and 
        inserting ``, from amounts available for assistance under 
        paragraphs (2) and (5) of section 521(a), an amount'';
            (3) in section 513(c)(2)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``or contracts for operating assistance under 
                section 521(a)(5)'' after ``521(a)(2)(A)'';
                    (B) in subparagraph (A), by inserting ``or 
                operating assistance contracts'' after ``contracts'';
                    (C) in subparagraph (B), by striking ``rental'' 
                each place it appears; and
                    (D) in subparagraph (C), by inserting ``or 
                operating assistance contracts'' after ``contracts'';
            (4) in section 521(a)(2)(B)--
                    (A) by inserting ``or paragraph (5)'' after ``this 
                paragraph''; and
                    (B) by striking ``which shall'' and all that 
                follows through the period at the end and inserting the 
                following: ``. The budget (and the income, in the case 
                of a project assisted under this paragraph) shall be 
                used to determine the amount of the assistance for each 
                project.'';
            (5) in section 521(c), by striking ``subsection (a)(2)'' 
        and inserting ``subsections (a)(2) and (a)(5)'';
            (6) in section 521(e), by inserting after ``recipient'' the 
        following: ``or any tenant in a project assisted under 
        subsection (a)(5)''; and
            (7) in section 530, by striking ``rental assistance 
        payments with respect to such project under section 
        521(a)(2)(A)'' and inserting ``assistance payments with respect 
        to such project under section 521(a)(2)(A) or 521(a)(5)''.

SEC. 411. DEFINITION OF RURAL AREA.

    The last sentence of section 520 of the Housing Act of 1949 (42 
U.S.C. 1490) is amended by striking ``city of'' and inserting ``cities 
of South Tucson, Arizona, and''.

SEC. 412. PRIORITY FOR RURAL HOUSING VOUCHER ASSISTANCE.

    Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended 
by adding at the end the following new subsection:
    ``(c) Priority.--
            ``(1) Requirement.--In providing assistance under this 
        section, the Secretary shall give preference to providing 
        assistance for rental housing that--
                    ``(A) is financed or assisted with a loan, 
                guarantee, insurance, or other assistance provided 
                under this title; and
                    ``(B)(i) has a significant number of units, as 
                determined by the Secretary, that have been vacant for 
                extended periods; or
                    ``(ii) is occupied by a significant number of 
                families, as determined by the Secretary, who pay as 
                rent for a unit in the housing an amount exceeding 30 
                percent of the family's monthly adjusted income.
            ``(2) Project-based assistance.--To provide assistance 
        according to the preference under paragraph (1), the Secretary 
        may enter into contracts with owners of housing described in 
        paragraph (1) to provide voucher assistance payments that are 
        attached to such housing on behalf of very low-income families 
        who reside in such housing.''.

SEC. 413. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN RURAL 
              AREAS.

    Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is 
amended by inserting after section 537 the following new section:

``SEC. 538. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN RURAL 
              AREAS.

    ``(a) Authority.--The Secretary may make commitments to guarantee 
eligible loans for the development costs of eligible housing and 
related facilities, and may guarantee such eligible loans, in 
accordance with this section.
    ``(b) Extent of Guarantee.--A guarantee made under this section 
shall guarantee repayment of an amount not exceeding the total of the 
amount of the unpaid principal and interest of the loan for which the 
guarantee is made. The liability of the United States under any 
guarantee under this section shall decrease or increase pro rata with 
any decrease or increase of the amount of the unpaid portion of the 
obligation.
    ``(c) Eligible Borrowers.--A loan guaranteed under this section may 
be made to a nonprofit organization, an agency or body of any State 
government or political subdivision thereof, or a private entity.
    ``(d) Eligible Housing.--A loan may be guaranteed under this 
section only if the loan is used for the development costs of housing 
and related facilities (as such terms are defined in section 515(e)) 
that--
            ``(1) consists of 5 or more adequate dwellings;
            ``(2) is available for occupancy only by low or moderate 
        income families or persons, whose incomes at the time of 
        initial occupancy do not exceed 115 percent of the median 
        income of the area, as determined by the Secretary;
            ``(3) will remain available as provided in paragraph (2), 
        according to such binding commitments as the Secretary may 
        require, for the period of the original term of the loan 
        guaranteed, unless the housing is acquired by foreclosure (or 
        instrument in lieu of foreclosure) or the Secretary waives the 
        applicability of such requirement for the loan only after 
        determining, based on objective information, that--
                    ``(A) there is no longer a need for low- and 
                moderate-income housing in the market area in which the 
                housing is located;
                    ``(B) housing opportunities for low-income 
                households and minorities will not be reduced as a 
                result of the waiver; and
                    ``(C) additional Federal assistance will not be 
                necessary as a result of the waiver; and
            ``(4) is located in a rural area.
    ``(e) Eligible Lenders.--
            ``(1) Requirement.--A loan may be guaranteed under this 
        subsection only if the loan is made by a lender that the 
        Secretary determines--
                    ``(A) meets the qualifications, and has been 
                approved by the Secretary of Housing and Urban 
                Development, to make loans for multifamily housing that 
                are to be insured under the National Housing Act;
                    ``(B) meets the qualifications, and has been 
                approved by the Federal National Mortgage Association 
                and the Federal Home Loan Mortgage Corporation, to make 
                loans for multifamily housing that are to be sold to 
                such corporations; or
                    ``(C) meets any qualifications that the Secretary 
                may, by regulation, establish for participation of 
                lenders in the loan guarantee program under this 
                section.
            ``(2) Eligibility list and annual audit.--The Secretary 
        shall establish a list of eligible lenders and shall annually 
        conduct an audit of each lender included in the list for 
        purposes of determining whether such lender continues to be an 
        eligible lender.
    ``(f) Loan Terms.--Each loan guaranteed pursuant to this subsection 
shall--
            ``(1) provide for complete amortization by periodic 
        payments to be made for a term not to exceed 40 years;
            ``(2) involve a rate of interest agreed upon by the 
        borrower and the lender that does not exceed the maximum 
        allowable rate established by the Secretary for purposes of 
        this section and is fixed over the term of the loan;
            ``(3) involve a principal obligation (including initial 
        service charges, appraisal, inspection, and other fees as the 
        Secretary may approve) not to exceed--
                    ``(A) in the case of a borrower that is a nonprofit 
                organization or an agency or body of any State or local 
                government, 97 percent of the development costs of the 
                housing and related facilities or the value of the 
                housing and facilities, whichever is less;
                    ``(B) in the case of a borrower that is a for-
                profit entity not referred to in subparagraph (A), 90 
                percent of the development costs of the housing and 
                related facilities or the value of the housing and 
                facilities, whichever is less; and
                    ``(C) in the case of any borrower, for such part of 
                the property as may be attributable to dwelling use, 
                the applicable maximum per unit dollar amount 
                limitations under section 207(c) of the National 
                Housing Act;
            ``(4) be secured by a first mortgage on the housing and 
        related facilities for which the loan is made, or otherwise, as 
        the Secretary may determine necessary to ensure repayment of 
        the obligation; and
            ``(5) for at least 20 percent of the loans made under this 
        section, the Secretary shall provide the borrower with 
        assistance in the form of credits pursuant to section 
        521(a)(1)(B) to the extent necessary to reduce the rate of 
        interest under paragraph (2) to the applicable Federal rate, as 
        such term is used in section 42(i)(2)(D) of the Internal 
        Revenue Code of 1986.
    ``(g) Guarantee Fee.--At the time of issuance of a loan guaranteed 
under this section, the Secretary may collect from the lender a fee 
equal to not more than 1 percent of the principal obligation of the 
loan.
    ``(h) Authority for Lenders To Issue Certificates of Guarantee.--
The Secretary may authorize certain eligible lenders to determine 
whether a loan meets the requirements for guarantee under this section 
and, subject to the availability of authority to enter into guarantees 
under this section, execute a firm commitment for a guarantee binding 
upon the Secretary and issue a certificate of guarantee evidencing a 
guarantee, without review and approval by the Secretary of the specific 
loan. The Secretary may establish standards for approving eligible 
lenders for a delegation of authority under this subsection.
    ``(i) Payment Under Guarantee.--
            ``(1) Notice of default.--In the event of default by the 
        borrower on a loan guaranteed under this section, the holder of 
        the guarantee certificate for the loan shall provide written 
        notice of the default to the Secretary.
            ``(2) Foreclosure.--After receiving notice under paragraph 
        (1) and providing written notice of action under this paragraph 
        to the Secretary, the holder of the guarantee certificate for 
        the loan may initiate foreclosure proceedings for the loan in a 
        court of competent jurisdiction, in accordance with regulations 
        issued by the Secretary, to obtain possession of the security 
        property. After the court issues a final order authorizing 
        foreclosure on the property, the holder of the certificate 
        shall be entitled to payment by the Secretary under the 
        guarantee (in the amount provided under subsection (b)) upon 
        (A) conveyance to the Secretary of title to the security 
        property, (B) submission to the Secretary of a claim for 
        payment under the guarantee, and (C) assignment to the 
        Secretary of all the claims of the holder of the guarantee 
        against the borrower or others arising out of the loan 
        transaction or foreclosure proceedings, except claims released 
        with the consent of the Secretary.
            ``(3) Assignment by secretary.--After receiving notice 
        under paragraph (1), the Secretary may accept assignment of the 
        loan if the Secretary determines that the assignment is in the 
        best interests of the United States. Assignment of a loan under 
        this paragraph shall include conveyance to the Secretary of 
        title to the security property, assignment to the Secretary of 
        all rights and interests arising under the loan, and assignment 
        to the Secretary of all claims against the borrower or others 
        arising out of the loan transaction. Upon assignment of a loan 
        under this paragraph, the holder of a guarantee certificate for 
        the loan shall be entitled to payment by the Secretary under 
        the guarantee (in the amount provided under subsection (b)).
            ``(4) Requirements.--Before any payment under a guarantee 
        is made under paragraph (2) or (3), the holder of the guarantee 
        certificate shall exhaust all reasonable possibilities of 
        collection on the loan guaranteed. Upon payment, in whole or in 
        part, to the holder, the note or judgment evidencing the debt 
        shall be assigned to the United States and the holder shall 
        have no further claim against the borrower or the United 
        States. The Secretary shall then take such action to collect as 
        the Secretary determines appropriate.
    ``(j) Violation of Guarantee Requirements by Lenders Issuing 
Guarantees.--
            ``(1) Indemnification.--If the Secretary determines that a 
        loan guaranteed by an eligible lender pursuant to delegation of 
        authority under subsection (h) was not originated in accordance 
        with the requirements under this section and the Secretary pays 
        a claim under the guarantee for the loan, the Secretary may 
        require the eligible lender authorized under subsection (h) to 
        issue the guarantee certificate for the loan--
                    ``(A) to indemnify the Secretary for the loss, if 
                the payment under the guarantee was made within a 
                reasonable period specified by the Secretary; or
                    ``(B) to indemnify the Secretary for the loss 
                regardless of when payment under the guarantee was 
                made, if the Secretary determines that fraud or 
                misrepresentation was involved in connection with the 
                origination of the loan.
            ``(2) Termination of authority to issue guarantees.--The 
        Secretary may cancel a delegation of authority under subsection 
        (h) to an eligible lender if the Secretary determines that the 
        lender has violated the requirements and procedures for 
        guaranteed loans under this section or for other good cause. 
        Any such cancellation shall be made by giving notice to the 
        eligible lender and shall take effect upon receipt of the 
        notice by the mortgagee or at a later date, as the Secretary 
        may provide. A decision by the Secretary to cancel a delegation 
        shall be final and conclusive and shall not be subject to 
        judicial review.
    ``(k) Refinancing.--Any loan guaranteed under this section may be 
refinanced and extended in accordance with terms and conditions that 
the Secretary shall prescribe, but in no event for an additional amount 
or term that exceeds the limitations under subsection (f).
    ``(l) Nonassumption.--The borrower under a loan that is guaranteed 
under this section and under which any portion of the principal 
obligation or interest remains outstanding may not be relieved of 
liability with respect to the loan, notwithstanding the transfer of 
property for which the loan was made.
    ``(m) Geographical Targeting.--
            ``(1) Study.--The Secretary shall provide for an 
        independent entity to conduct a study to determine the extent 
        to which borrowers in the United States will utilize loan 
        guarantees under this section, the rural areas in the United 
        States in which borrowers can best utilize and most need loans 
        guaranteed under this section, and the rural areas in the 
        United States in which housing of the type eligible for a loan 
        guarantee under this section is most needed by low- and 
        moderate-income families. The Secretary shall require the 
        independent entity conducting the study to submit a report to 
        the Secretary and to the Congress describing the results of the 
        study not later than the expiration of the 90-day period 
        beginning on the date of the enactment of the Housing and 
        Community Development Act of 1994.
            ``(2) Targeting.--In providing loan guarantees under this 
        section, the Secretary shall establish standards to target and 
        give priority to rural areas in which borrowers can best 
        utilize and most need loans guaranteed under this section, as 
        determined by the Secretary based on the results of the study 
        under paragraph (1) and any other information the Secretary 
        considers appropriate.
    ``(n) Inapplicability of Credit-Elsewhere Test.--Section 501(c) 
shall not apply to guarantees, or loans guaranteed, under this section.
    ``(o) Tenant Protections.--The Secretary shall establish standards 
for the treatment of tenants of housing developed using amounts from a 
loan guaranteed under this section, which shall incorporate, to the 
extent applicable, existing standards applicable to tenants of housing 
developed with loans made under section 515. Such standards shall 
include standards for fair housing and equal opportunity, lease and 
grievance procedures, and tenant appeals of adverse actions.
    ``(p) Housing Standards.--The standards established under section 
515(m) for housing and related facilities assisted under section 515 
shall apply to housing and related facilities the development costs of 
which are financed in whole or in part with a loan guaranteed under 
this section.
    ``(q) Limitation on Commitments To Guarantee Loans.--
            ``(1) Requirement of appropriations.--The authority of the 
        Secretary to enter into commitments to guarantee loans under 
        this section, and to guarantee loans, shall be effective for 
        any fiscal year only to the extent or in such amounts as are or 
        have been provided in appropriations Acts for such fiscal year.
            ``(2) Limitation on projects and outstanding aggregate 
        principal amount.--Subject to the limitation in paragraph (1), 
        the Secretary may enter into commitments to guarantee loans 
        under this section for not more than 25 housing projects in 
        each of fiscal years 1995 and 1996, having an aggregate 
        outstanding principal amount not exceeding $50,000,000 in each 
        of such fiscal years.
    ``(r) Report.--
            ``(1) In general.--The Secretary shall submit a report to 
        the Congress, not later than the expiration of the 2-year 
        period beginning on the date of the enactment of the Housing 
        and Community Development Act of 1994, describing the program 
        under this section for guaranteeing loans.
            ``(2) Contents.--The report shall--
                    ``(A) describe the types of borrowers providing 
                housing with loans guaranteed under this section, the 
                areas served by the housing provided and the 
                geographical distribution of the housing, the levels of 
                income of the residents of the housing, the number of 
                dwelling units provided, the extent to which borrowers 
                under such loans have obtained other financial 
                assistance for development costs of housing provided 
                with the loans, and the extent to which borrowers under 
                such loans have used low-income housing tax credits 
                provided under section 42 of the Internal Revenue Code 
                of 1986 in connection with the housing provided with 
                the loans;
                    ``(B) analyze the financial viability of the 
                housing provided with loans guaranteed under this 
                section and the need for project-based rental 
                assistance for such housing;
                    ``(C) include any recommendations of the Secretary 
                for expanding or improving the program under this 
                section for guaranteeing loans; and
                    ``(D) include any other information regarding the 
                program for guaranteeing loans under this section that 
                the Secretary considers appropriate.
    ``(s) Definitions.--For purposes of this subsection, the following 
definitions shall apply:
            ``(1) The term `development cost' has the meaning given the 
        term in section 515(e).
            ``(2) The term `eligible lender' means a lender determined 
        by the Secretary to meet the requirements of subparagraph (A), 
        (B), (C), or (D) of subsection (e)(1).
            ``(3) The terms `housing' and `related facilities' have the 
        meanings given such terms in section 515(e).
    ``(t) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996 such sums as may be 
necessary for costs (as such term is defined in section 502 of the 
Congressional Budget Act of 1974) of loan guarantees made under this 
section.
    ``(u) Termination Date.--A loan may not be guaranteed under this 
section after September 30, 1996.''.

               TITLE V--AUTHORIZATIONS OF APPROPRIATIONS

SEC. 501. LOW-INCOME HOUSING AUTHORIZATION.

    (a) Aggregate Budget Authority.--Section 5(c)(6) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(c)(6)) is amended by adding 
at the end the following new sentence: ``The aggregate amount of budget 
authority that may be obligated for assistance referred to in paragraph 
(7) is increased (to the extent approved in appropriation Acts) by the 
sum of the amounts provided in paragraph (7)(A) on October 1, 1994, and 
by the sum of the amounts provided in paragraph (7)(B) on October 1, 
1995.''.
    (b) Utilization of Budget Authority.--Section 5(c)(7) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(c)(7)) is amended by 
striking the paragraph designation and all that follows through the end 
of subparagraph (B) and inserting the following:
    ``(7)(A) Using the additional budget authority provided under 
paragraph (6) and the balances of budget authority that become 
available during fiscal year 1995, the Secretary shall, to the extent 
approved in appropriation Acts, reserve authority to enter into 
obligations aggregating--
            ``(i) for public housing grants under subsection (a)(2), 
        not more than $861,000,000, of which amount not more than 
        $263,000,000 shall be available for Indian housing;
            ``(ii) for assistance under section 8, not more than 
        $2,674,000,000, of which not more than $75,000,000 shall be 
        available for assistance under section 8 for family unification 
        under subsection (q)(3) of such section;
            ``(iii) for assistance under section 5(j)(2) for 
        substantial redesign, reconstruction, and redevelopment of 
        existing obsolete public housing projects and buildings, not 
        more than $114,000,000;
            ``(iv) for comprehensive improvement assistance grants 
        under section 14(k), not more than $3,230,000,000;
            ``(v) for assistance under section 8 for property 
        disposition, not more than $691,000,000;
            ``(vi) for assistance under section 8 for loan management, 
        not more than $150,000,000;
            ``(vii) for extensions of contracts expiring under section 
        8, $5,092,000,000 which shall be for 5-year contracts for 
        assistance under section 8 and vouchers under section 8(o) (as 
        in effect before the date of the enactment of this Act) and for 
        loan management assistance under such section;
            ``(viii) for amendments to contracts under section 8, such 
        sums as may be necessary;
            ``(ix) for public housing lease adjustments and amendments, 
        such sums as may be necessary;
            ``(x) for assistance under section 18 for replacement 
        housing for units demolished or disposed of under section 18, 
        not more than $333,450,000;
            ``(xi) for conversions from leased housing contracts under 
        section 23 of this Act (as in effect immediately before the 
        enactment of the Housing and Community Development Act of 1974) 
        to assistance under section 8, such sums as may be necessary; 
        and
            ``(xii) for grants under section 24 for revitalization of 
        severely distressed public housing, not more than $500,000,000.
    ``(B) Using the additional budget authority provided under 
paragraph (6) and the balances of budget authority that become 
available during fiscal year 1996, the Secretary shall, to the extent 
approved in appropriation Acts, reserve authority to enter into 
obligations aggregating--
            ``(i) for public housing grants under subsection (a)(2), 
        not more than $862,000,000, of which amount not more than 
        $264,000,000 shall be available for Indian housing;
            ``(ii) for assistance under section 8, not more than 
        $2,800,000,000, of which not more than $75,000,000 shall be 
        available for assistance under section 8 for family unification 
        under subsection (q)(3) of such section;
            ``(iii) for assistance under section 5(j)(2) for 
        substantial redesign, reconstruction, and redevelopment of 
        existing obsolete public housing projects and buildings, not 
        more than $120,000,000;
            ``(iv) for comprehensive improvement assistance grants 
        under section 14(k), not more than $3,241,000;
            ``(v) for assistance under section 8 for property 
        disposition, not more than $800,000,000;
            ``(vi) for assistance under section 8 for loan management, 
        not more than $155,000,000;
            ``(vii) for extensions of contracts expiring under section 
        8, $6,000,000,000 which shall be for 5-year contracts for 
        assistance under section 8 and vouchers under section 8(o) (as 
        in effect before the date of the enactment of the Housing and 
        Community Development Act of 1994) and for loan management 
        assistance under such section;
            ``(viii) for amendments to contracts under section 8, such 
        sums as may be necessary;
            ``(ix) for public housing lease adjustments and amendments, 
        such sums as may be necessary;
            ``(x) for assistance under section 18(g) for replacement 
        housing for units demolished or disposed of under section 18, 
        not more than $273,600,000;
            ``(xi) for conversions from leased housing contracts under 
        section 23 of this Act (as in effect immediately before the 
        enactment of the Housing and Community Development Act of 1974) 
        to assistance under section 8, such sums as may be necessary; 
        and
            ``(xii) for grants under section 24 for revitalization of 
        severely distressed public housing, not more than 
        $550,000,000.''.

SEC. 502. PUBLIC HOUSING OPERATING SUBSIDIES.

    (a) Authorization of Appropriations.--Section 9(c) of the United 
States Housing Act of 1937 (42 U.S.C. 1437g(c)) is amended--
            (1) in paragraph (1), by striking ``There'' and all that 
        follows and inserting the following new sentence: ``There are 
        authorized to be appropriated for purposes of providing annual 
        contributions under this section $3,146,000,000 for fiscal year 
        1995 and $3,208,000,000 for fiscal year 1996.'';
            (2) in paragraph (2), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''; and
            (3) in paragraph (3), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''.
    (b) Eligibility of Severely Distressed Public Housing.--Section 
9(a)(2) of the United States Housing Act of 1937 is amended--
            (1) by striking ``one'' and inserting ``that is (A)''; and
            (2) by inserting after ``section 8,'' the following: ``or 
        (B) assisted under section 24 or the program authorized under 
        (i) the third paragraph of the head, homeownership and 
        opportunity for people everywhere grants (hope grants), of 
        title II of the Departments of Veterans Affairs and Housing and 
        Urban Development, and Independent Agencies Appropriations Act, 
        1993, or (ii) the head, severely distressed public housing 
        projects, of title II of the Department of Veterans Affairs and 
        Housing and Urban Development, and Independent Agencies 
        Appropriations Act, 1994;''.

SEC. 503. INDIAN HOUSING LOAN GUARANTEES.

    (a) Limitation on Outstanding Aggregate Principal Amount.--Section 
184(i)(5)(C) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a(i)(5)(C)) is amended by striking ``fiscal years 1993 
and 1994'' and inserting ``fiscal years 1995 and 1996''.
    (b) Authorization of Appropriations for Guarantee Fund.--Section 
184(i)(7) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a(i)(7)) is amended to read as follows:
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Guarantee Fund to carry 
        out this section $50,000,000 for fiscal year 1995 and 
        $50,000,000 for fiscal year 1996.''.

SEC. 504. NEW CONSTRUCTION OF PROJECTS FOR DISABLED FAMILIES.

    Section 5(j)(3)(A) of the United States Housing Act of 1937 (42 
U.S.C. 1437c(j)(3)(A)) is amended by striking ``fiscal years 1993 and 
1994'' and inserting ``fiscal years 1995 and 1996''.

SEC. 505. EMERGENCY MODERNIZATION FUNDS.

    Section 14(k)(1) of the United States Housing Act of 1937 (42 
U.S.C. 1437l(k)(1)) is amended in the first sentence, by striking 
``$75,000,000'' and inserting ``$50,000,000''.

SEC. 506. FAMILY INVESTMENT CENTERS.

    Section 22(k) of the United States Housing Act of 1937 (42 U.S.C. 
1437t(k)) is amended to read as follows:
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for fiscal year 1995 
and $50,000,000 for fiscal year 1996.''.

SEC. 507. SERVICE COORDINATORS.

    (a) Public Housing.--Section 9 of the United States Housing Act of 
1937 (42 U.S.C. 1437g) is amended in subsection (a)(1)(B)(ii)--
            (1) in the 1st sentence, by striking ``Annual'' and all 
        that follows through ``such project,'' and inserting ``To the 
        extent amounts are made available pursuant to section 5(c) for 
        carrying out this clause, the Secretary may increase the annual 
        contributions provided under this section to any public housing 
        agency for any project to provide''; and
            (2) by striking the last 2 sentences.
    (b) Other Federally Assisted Multifamily Housing.--Section 676(c) 
of the Housing and Community Development Act of 1992 (42 U.S.C. 
13632(c)) is amended to read as follows:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated for grants under this section such sums as may be 
necessary for each of fiscal years 1995 and 1996.''.

SEC. 508. COMMUNITY PARTNERSHIPS AGAINST CRIME.

    There are authorized to be appropriated to carry out chapter 2 of 
subtitle C of title V of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 
11901 et seq.) $300,000,000 for fiscal year 1995 and $325,000,0000 for 
fiscal year 1996. Any amount appropriated under this section shall 
remain available until expended.

SEC. 509. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

    Section 222(g) of the Housing and Urban-Rural Recovery Act of 1983 
(12 U.S.C. 1701z-6 note) is amended by striking the first two sentences 
and inserting the following new sentence: ``There are authorized to be 
appropriated to carry out this section $35,000,000 for fiscal year 1995 
and $35,000,000 for fiscal year 1996.''.

SEC. 510. SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION 
              CONTRACT RENEWALS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this subtitle for which 
amounts are not provided under section 5(c) of the United States 
Housing Act of 1937.

SEC. 511. HOUSING COUNSELING.

    (a) Extensions of Programs.--
            (1) Emergency homeownership counseling.--Section 106(c)(9) 
        of the Housing and Urban Development Act of 1968 (12 U.S.C. 
        1701x(c)(9)) is amended by striking ``September 30, 1994'' and 
        inserting ``September 30, 1996''.
            (2) Prepurchase and foreclosure-prevention counseling 
        demonstration.--Section 106(d)(13) of the Housing and Urban 
        Development Act of 1968 (12 U.S.C. 1701x(d)(13)) is amended by 
        striking ``fiscal year 1994'' and inserting ``fiscal year 
        1996''.
    (b) Authorization of Appropriations.--Section 106 of the Housing 
and Urban Development Act of 1968 (12 U.S.C. 1701x) is amended--
            (1) in subsection (a), by striking paragraph (3);
            (2) in subsection (c)--
                    (A) by striking paragraph (8); and
                    (B) by redesignating paragraph (9) (as amended by 
                subsection (a)) as paragraph (8);
            (3) in subsection (d)--
                    (A) by striking paragraph (12); and
                    (B) by redesignating paragraph (13) (as amended by 
                subsection (a)) as paragraph (12);
            (4) in subsection (f), by striking paragraph (7); and
            (5) by adding at the end the following new subsection:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $62,000,000 for fiscal year 1995 
and $65,000,000 for fiscal year 1996, of which amounts $30,000,000 
shall be available in each such fiscal year to carry out subsection 
(c). Any amounts appropriated pursuant to this subsection shall remain 
available until expended.''.

SEC. 512. HEADQUARTERS RESERVE.

    Section 213(d)(4)(A) of the Housing and Community Development Act 
of 1974 (42 U.S.C. 1439(d)(4)(A)) is amended--
            (1) in clause (iii), by striking ``and'' at the end;
            (2) in clause (iv) by striking the period at the end and 
        inserting a semicolon; and
            (3) by inserting after clause (iv) the following new 
        clauses:
            ``(v) cash payments, in connection with the settlement of 
        civil rights litigation (excluding litigation brought by an 
        employee or former employee of the Secretary); and
            ``(vi) in the case of financial assistance under the rental 
        housing assistance program under section 8 of the United States 
Housing Act of 1937, providing assistance pursuant to section 8(q)(4) 
of such Act.''.
    (b) Availability of Public Housing and Section 8 Amounts.--Section 
5 of the United States Housing Act of 1937 (42 U.S.C. 1437c) is amended 
by adding at the end the following new subsection:
    ``(m) Use of Amounts Under Headquarters Reserve.--Any amounts 
appropriated for public housing development or assistance under section 
8, that are retained by the Secretary in accordance with section 
213(d)(4)(A) of the Housing and Community Development Act of 1974, may 
be used for any of the activities specified in clauses (i) through (v) 
of such section.''.
    (c) Use of Section 8 Assistance for Portability.--Section 213(d)(4) 
of the Housing and Community Development Act of 1974 is amended by 
adding at the end the following new subparagraph:
                    ``(C) Of any financial assistance for the rental 
                housing assistance program under section 8 of the 
                United States Housing Act of 1937 that is reserved 
                pursuant to subparagraph (A), 5 percent shall be 
                reserved for use only for the purposes of providing 
                assistance pursuant to section 8(o)(6) of such Act.

SEC. 513. SUPPORTIVE HOUSING FOR THE ELDERLY AND FOR PERSONS WITH 
              DISABILITIES.

    Section 601 of the Housing and Community Development Act of 1992 
(Public Law 102-550; 106 Stat. 3802) is amended by striking subsection 
(a) and inserting the following new subsection:
    ``(a) Aggregate Funding.--There are authorized to be appropriated 
for the purpose of providing assistance in accordance with section 202 
of the Housing Act of 1959 and section 811 of the Cranston-Gonzalez 
National Affordable Housing Act, $1,948,000,000 for fiscal year 1995 
and $1,954,000,000 for fiscal year 1996.''.

SEC. 514. CONGREGATE SERVICES.

    Section 802(n)(1) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8011(n)(1)) is amended by striking the matter 
preceding subparagraph (A) and inserting the following:
            ``(1) Authorization and use.--There are authorized to be 
        appropriated to carry out this section $25,000,000 for fiscal 
        year 1995, and $26,000,000 for fiscal year 1996, of which not 
        more than--''.

SEC. 515. SUPPORTIVE HOUSING ASSISTANCE FOR ELDERLY INDEPENDENCE.

    (a) Section 8 Assistance.--The first sentence of section 803(j) of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
8012(j)) is amended to read as follows: ``The budget authority 
available under section 5(c) of the United States Housing Act of 1937 
for assistance under section 8 of such Act is authorized to be 
increased by $25,000,000 on or after October 1, 1994, and by 
$25,000,000 on or after October 1, 1995.''.
    (b) Supportive Services Authorization.--The first sentence of 
section 803(k) of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 8012(k)) is amended to read as follows: ``There are 
authorized to be appropriated for the Secretary to carry out the 
responsibilities for supportive services under the demonstrations under 
this section $7,000,000 to become available in fiscal year 1995, and 
$7,000,000 to become available in fiscal year 1996.''.

SEC. 516. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

    (a) Authorization of Appropriations.--Section 863 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12912) is amended 
to read as follows:

``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $212,000,000 for fiscal year 1995 and $225,000,000 for fiscal 
year 1996.''.

SEC. 517. NATIONAL HOMEOWNERSHIP FUND.

    Subtitle A of title III of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12701 note) is amended by inserting 
after section 308 the following new section:

``SEC. 309. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for assistance under the 
National Homeownership Fund $115,000,000 for fiscal year 1995 and 
$215,000,000 for fiscal year 1996. Any amount appropriated under this 
section shall remain available until expended.

SEC. 518. LOW-INCOME HOUSING PRESERVATION.

    (a) Assistance and Incentives.--Section 234 of the Housing and 
Community Development Act of 1987 (12 U.S.C. 4124) is amended to read 
as follows:

``SEC. 234. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated for 
assistance and incentives authorized under this subtitle $358,000,000 
for fiscal year 1995 and $450,000,000 for fiscal year 1996.
    ``(b) Grants.--Subject to approval in appropriation Acts, not more 
than $40,000,000 of the amounts made available under subsection (a) for 
fiscal year 1995, and not more than $40,000,000 of the amounts made 
available under subsection (a) for fiscal year 1996, shall be available 
for grants under section 221(d)(2).''.
    (b) Technical Assistance and Capacity Building.--The first sentence 
of section 257 of the Housing and Community Development Act of 1987 (12 
U.S.C. 4147) is amended to read as follows: ``The Secretary shall use 
not more than $20,000,000 of the amounts made available under section 
234(a) for fiscal year 1995, and not more than $20,000,000 of the 
amounts made available under section 234(a) for fiscal year 1996, to 
carry out this subtitle.''.

SEC. 519. FLEXIBLE SUBSIDY PROGRAM.

    Section 201(j)(5) of the Housing and Community Development 
Amendments of 1978 (12 U.S.C. 1715z-1a(j)(5)) is amended to read as 
follows:
    ``(5) There are authorized to be appropriated for assistance under 
the flexible subsidy fund not to exceed $50,000,000 for fiscal year 
1995 and $55,000,000 for fiscal year 1996.''.

SEC. 520. HOME INVESTMENT PARTNERSHIPS.

    Section 205 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12724) is amended to read as follows:

``SEC. 205. AUTHORIZATION.

    ``There are authorized to be appropriated to carry out this title 
$1,700,000,000 for fiscal year 1995, and $2,000,000,000 for fiscal year 
1996, of which--
            ``(1) not more than $25,000,000 for fiscal year 1995, and 
        $25,000,000 for fiscal year 1996, shall be for community 
        housing partnership activities authorized under section 233; 
        and
            ``(2) not more than $22,000,000 for fiscal year 1995, and 
        $22,000,000 for fiscal year 1996, shall be for activities in 
        support of State and local housing strategies authorized under 
        subtitle C.''.

SEC. 521. COMMUNITY INVESTMENT DEMONSTRATION PROGRAM.

    Section 6(j) of the HUD Demonstration Act of 1993 (42 U.S.C. 1437f 
note) is amended to read as follows:
    ``(j) Authorization of Appropriations.--Of any amounts appropriated 
for incremental assistance under section 8 of the United States Housing 
Act of 1937, the Secretary may use not more than $150,000,000 in fiscal 
year 1995 and $200,000,000 in fiscal year 1996 to carry out this 
section.''.

SEC. 522. YOUTHBUILD PROGRAM.

    (a) Authorization of Appropriations.--Section 402 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12870) is amended 
by inserting after subsection (c) the following new subsection:
    ``(d) Youthbuild Program.--There are authorized to be appropriated 
for activities under subtitle D $50,000,000 for fiscal year 1995 and 
$50,000,000 for fiscal year 1996. Any amounts appropriated pursuant to 
this subsection shall remain available until expended.''.

SEC. 523. COMMUNITY DEVELOPMENT BLOCK GRANTS AND SECTION 108 LOAN 
              GUARANTEES.

    (a) Community Development Block Grants.--The second sentence of 
section 103 of the Housing and Community Development Act of 1974 (42 
U.S.C. 5303) is amended to read as follows: ``For purposes of 
assistance under section 106, there are authorized to be appropriated 
$4,400,000,000 for fiscal year 1995 and $4,500,000,000 for fiscal year 
1996.''.
    (b) Limitation on Loan Guarantees.--The fifth sentence of section 
108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 
5308(a)) is amended to read as follows: ``Notwithstanding any other 
provision of law and subject only to the absence of qualified 
applicants or proposed activities and to the authority provided in this 
section, to the extent approved or provided in appropriation Acts, the 
Secretary shall enter into commitments to guarantee notes and 
obligations under this section with an aggregate principal amount of 
$2,054,000,000 for fiscal year 1995 and $2,054,000,000 for fiscal year 
1996.''.
    (c) Special Purpose Grants.--Section 107 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307) is amended by 
striking ``Sec. 107'' and all that follows through the end of paragraph 
(1) of subsection (a) and inserting the following:
    ``Sec. 107. (a) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        for each of fiscal years 1995 and 1996, $60,000,000, for grants 
        under subsection (b). Of such amounts--
                    ``(A) $7,000,000 shall be available in each such 
                year for grants under subsection (b)(1);
                    ``(B) such sums as may be necessary shall be 
                available in each such year for grants under subsection 
                (b)(2);
                    ``(C) $7,000,000 shall be available in each such 
                year for grants under subsection (b)(3);
                    ``(D) $28,000,000 shall be available in each such 
                year for grants under subsection (b)(4);
                    ``(E) $6,000,000 shall be available in each such 
                year for grants under subsection (b)(5);
                    ``(F) $2,000,000 shall be available in each such 
                year for grants under subsection (b)(6);
                    ``(G) $8,000,000 shall be available in each such 
                year for grants under subsection (b)(7);
                    ``(H) such sums as may be necessary shall be 
                available in each such year for grants under subsection 
                (b)(8); and
                    ``(I) $3,000,000 shall be available in each such 
                year for grants under subsection (c).''.

SEC. 524. ECONOMIC DEVELOPMENT GRANTS.

    Section 108(q) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5308) is amended by adding at the end the following new 
paragraph:
            ``(5) Authorization of appropriations.--There are 
        authorized to be appropriated for grants under this subsection 
        $100,000,000 for fiscal year 1995 and $100,000,000 for fiscal 
        year 1996.''.

SEC. 525. NEIGHBORHOOD REINVESTMENT CORPORATION.

    The first sentence of section 608(a)(1) of the Neighborhood 
Reinvestment Corporation Act (42 U.S.C. 8107(a)) is amended to read as 
follows: ``There are authorized to be appropriated to the corporation 
to carry out this title $35,000,000 for fiscal year 1995 and 
$35,000,000 for fiscal year 1996.''.

SEC. 526. JOHN HEINZ NEIGHBORHOOD DEVELOPMENT PROGRAM.

    Section 123(g) of the Housing and Urban-Rural Recovery Act of 1983 
(42 U.S.C. 5318 note) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $10,000,000 for fiscal year 1995 
and $10,000,000 for fiscal year 1996.''.

SEC. 527. COLONIAS ASSISTANCE PROGRAM.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated for grants under section 205 of this Act $100,000,000 for 
each of fiscal years 1995 and 1996. Any amount appropriated to carry 
out this section shall remain available until expended.
    (b) Allocation of Funds.--Of the amounts appropriated under 
subsection (a) for any fiscal year--
            (1) 80 percent shall be available for grants to establish 
        model programs under subsection (c) of section 205; and
            (2) 20 percent shall be available for competitive grants 
        under subsection (e) of section 205.

SEC. 528. NEW TOWNS DEMONSTRATION PROGRAM FOR EMERGENCY RELIEF OF LOS 
              ANGELES.

    (a) Insurance Authority.--The first sentence of section 1104(d) of 
the Housing and Community Development Act of 1992 (42 U.S.C. 5318 note) 
is amended to read as follows: ``To the extent provided in 
appropriation Acts, the Secretary shall use any authority provided 
pursuant to section 531(b) of the National Housing Act to enter into 
commitments to insure loans and mortgages under this section in fiscal 
years 1995 and 1996 with an aggregate principal amount not exceeding 
such sums as may be necessary to carry out the demonstration under this 
title.''.
    (b) Second Mortgage Assistance.--Section 1105(e) of the Housing and 
Community Development Act of 1992 (42 U.S.C. 5318 note) is amended to 
read as follows:
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996 such sums as may be 
necessary for providing assistance under this section.''.
    (c) Community Development Assistance.--Section 1106(h) of the 
Housing and Community Development Act of 1992 (42 U.S.C. 5318 note) is 
amended to read as follows:
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996 such sums as may be 
necessary for assistance under this section.''.

SEC. 529. FHA MORTGAGE INSURANCE AGGREGATE LIMIT.

    Section 531(b) of the National Housing Act (12 U.S.C. 1735f-9(b)) 
is amended to read as follows:
    ``(b) Notwithstanding any other provision of law and subject only 
to the absence of qualified requests for insurance, to the authority 
provided in this Act, and to the limitation in subsection (a), the 
Secretary shall enter into commitments to insure mortgages under this 
Act with an aggregate principal amount of $105,000,000,000 during 
fiscal year 1995 and $91,000,000,000 during fiscal year 1996.''.

SEC. 530. GNMA MORTGAGE-BACKED SECURITIES GUARANTEE LIMIT.

    Section 306(g)(2) of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1721(g)(2)) is amended to read as follows:
    ``(2) Notwithstanding any other provision of law and subject only 
to the absence of qualified requests for guarantees, to the authority 
provided in this subsection, and to the extent of or in such amounts as 
any funding limitation approved in appropriation Acts, the Association 
shall enter into commitments to issue guarantees under this subsection 
in an aggregate amount of $130,000,000,000 during fiscal year 1995 and 
$130,000,000,000 during fiscal year 1996. There are authorized to be 
appropriated to cover the costs (as such term is defined in section 502 
of the Congressional Budget Act of 1974) of guarantees issued under 
this Act by the Association such sums as may be necessary for each of 
fiscal years 1995 and 1996.''.

SEC. 531. EXCLUSION OF GNMA FROM HUD PERSONNEL CEILINGS.

    Section 502(a) of the Housing Act of 1948 (12 U.S.C. 1701c(a)) is 
amended by adding at the end the following new sentence: 
``Notwithstanding any other provision of law, employees of the 
Government National Mortgage Association Department in the Department 
of Housing and Urban Development shall not be considered employees of 
the Department for purposes of any limitation on the number of 
employees of the Department.''.

SEC. 532. HUD RESEARCH AND DEVELOPMENT.

    The second sentence of section 501 of the Housing and Urban 
Development Act of 1970 (12 U.S.C. 1701z-1) is amended to read as 
follows: ``There are authorized to be appropriated to carry out this 
title $40,000,000 for fiscal year 1995 and $42,000,000 for fiscal year 
1996.''.

SEC. 533. RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION.

    (a) Target Housing Hazard Reduction.--
            (1) Authorization of appropriations.--Section 1011(p) of 
        the Housing and Community Development Act of 1992 (42 U.S.C. 
        4852(p)) is amended to read as follows:
    ``(p) Authorization of Appropriations.--For the purposes of 
carrying out this Act, there are authorized to be appropriated 
$100,000,000 for fiscal year 1995 and $110,000,000 for fiscal year 
1996.''.
            (2) Technical assistance and capacity building.--Section 
        1011(g) of the Housing and Community Development Act of 1992 
        (42 U.S.C. 4852(g)) is amended--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by inserting 
                        before the period at the end the following: ``, 
                        by providing technical assistance, either 
                        directly, or indirectly under contracts or 
                        otherwise''; and
                            (ii) by striking the second sentence; and
                    (B) by striking paragraph (2) and inserting the 
                following new paragraph:
            ``(2) Set-aside.--Of the total amount approved in 
        appropriation Acts under subsection (p), there shall be set 
        aside to carry out this subsection $3,000,000 for fiscal year 
        1995 and $3,000,000 for fiscal year 1996.''.
            (b) HUD Research.--Section 1053 of the Housing and 
        Community Development Act of 1992 (42 U.S.C. 4854b) is amended 
        to read as follows:

``SEC. 1054. FUNDING.

    ``Of the total amount approved in appropriation Acts under section 
1011(p), there shall be set aside to carry out this part $5,000,000 for 
fiscal year 1995 and $5,000,000 for fiscal year 1996.''.

SEC. 534. FAIR HOUSING INITIATIVES PROGRAM.

    Section 561(g) of the Housing and Community Development Act of 1987 
(42 U.S.C. 3616 note) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out the provisions of this section $26,000,000 
for fiscal year 1995 and $27,000,000 for fiscal year 1996, of which--
            ``(1) not less than $9,000,000 for fiscal year 1995 and 
        $9,000,000 for fiscal year 1996 shall be for private 
        enforcement initiatives authorized under subsection (b), 
        divided equally between activities specified under subsection 
        (b)(1) and those specified under subsection (b)(2);
            ``(2) not less than $3,000,000 for fiscal year 1995 and 
        $3,000,000 for fiscal year 1996 shall be for qualified fair 
        housing enforcement organizations authorized under subsection 
        (c)(1);
            ``(3) not less than $7,000,000 for fiscal year 1995 and 
        $7,000,000 for fiscal year 1996 shall be for the creation of 
        new fair housing enforcement organizations authorized under 
        subsection (c)(2); and
            ``(4) not less than $7,000,000 for fiscal year 1995 and 
        $7,000,000 for fiscal year 1996 shall be for education and 
        outreach programs authorized under subsection (d), to be 
        divided equally between activities specified under subsection 
        (d)(1) and those specified under subsections (d)(2) and (d)(3).
Any amount appropriated under this section shall remain available until 
expended.''.

SEC. 535. NATIONAL AMERICAN INDIAN HOUSING COUNCIL.

    There is authorized to be appropriated for assistance for the 
National American Indian Housing Council $1,000,000 for fiscal year 
1995 and $1,000,000 for fiscal year 1996, for providing training and 
technical assistance to Indian Housing Authorities.

SEC. 536. HOUSING ASSISTANCE COUNCIL.

    There is authorized to be appropriated for assistance for the 
Housing Assistance Council $5,000,000 for fiscal year 1995 and 
$5,000,000 for fiscal year 1996, for providing training, technical 
assistance, and financial assistance to develop affordable housing in 
rural areas.

SEC. 537. FLEXIBLE BLOCK GRANT ASSISTANCE UNDER STEWART B. MCKINNEY 
              HOMELESS ASSISTANCE ACT.

    Title IV of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 1111361 et seq.) is amended by inserting after section 401 the 
following new section:

``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
            ``(1) $735,000,000 for fiscal year 1995 for grants in 
        accordance with section 312(b) of the Housing and Community 
        Development Act of 1995; and
            ``(2) $925,000,000 for fiscal year 1996 for grants under 
        this subtitle.
Any amounts appropriated pursuant to this section shall remain 
available until expended.''.

SEC. 538. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS.

    Section 451(a) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11401(a)), as so redesignated by section 311(3) of this Act, 
is amended to read as follows:
    ``(a) Increase in Budget Authority.--The budget authority available 
under section 5(c) of the United States Housing Act of 1937 for 
assistance under section 8(e)(2) of such Act (as in effect immediately 
before October 1, 1991) is authorized to be increased by $200,000,000 
on or after October 1, 1994, and by $200,000,000 on or after October 1, 
1995.''.

SEC. 539. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE SINGLE ROOM 
              OCCUPANCY DWELLINGS.

    Section 452 of the Stewart B. McKinney Homeless Assistance Act, as 
amended by section 322 of this Act, is further amended by adding at the 
end the following new subsection:
    ``(p) Authorization of Appropriations.--For purposes of providing 
assistance under this section, there are authorized to be appropriated 
$75,000,000 for fiscal year 1995 and $75,000,000 for fiscal year 
1996.''.

SEC. 540. RURAL HOMELESSNESS PROGRAM.

    (a) Authorization of Appropriations.--Section 453(l)(1) of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11408(l)(1)), as 
so redesignated by section 811(3) of this Act, is amended to read as 
follows:
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $30,000,000 for fiscal year 1995 and 
        $30,000,000 for fiscal year 1996.''.

SEC. 541. INTERAGENCY COUNCIL ON THE HOMELESS.

    Section 208 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11318) is amended to read as follows:

``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$1,609,890 for fiscal year 1995 and $1,658,187 for fiscal year 1996.''.

SEC. 542. CHAIRPERSON OF INTERAGENCY COUNCIL ON THE HOMELESS.

    Section 202(b) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11312(b) is amended to read as follows:
    ``(b) Chairperson and Vice Chairperson.--
            ``(1) Chairperson.--The Council shall elect a Chairperson 
        from among its members, who shall have a term of 2 years. A 
        member of the Council by reason of any of paragraphs (1) 
        through (16) of subsection (a) who serves as Chairperson for a 
        term may not be elected to serve as Chairperson for the 
        succeeding term. The preceding sentence shall not apply to any 
        member serving as Chairperson on the date of the enactment of 
        the Housing and Community Development Act of 1994.
            ``(2) Vice chairperson.--The Vice Chairperson of the 
        Council shall have a term of 2 years and shall be--
                    ``(A) the Secretary of Housing and Urban 
                Development, if such Secretary is not elected as the 
                Chairperson of the Council; or
                    ``(B) elected by the Council from among its 
                members, if the Secretary of Housing and Urban 
                Development is elected as the Chairperson of the 
                Council.''.

SEC. 543. EXTENSION OF INTERAGENCY COUNCIL ON THE HOMELESS.

    Section 209 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11319) is amended by striking ``October 1, 1994'' and inserting 
``October 1, 1996''.

SEC. 544. FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD AND SHELTER PROGRAM.

    Section 322 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11352) is amended to read as follows:

``SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$130,000,000 for fiscal year 1995 and $130,000,000 for fiscal year 
1996.''.
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