I

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Housing and Community Development Act of 1995’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Effective date.
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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.
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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.
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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.

1 SEC. 2. EFFECTIVE DATE.

2 The provisions of this Act and the amendments made

3 by this Act shall take effect and shall apply upon the date

4 of the enactment of this Act, unless such provisions or
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1 amendments specifically provide for effectiveness or appli2 cability upon another date certain.

3 TITLE I—HOUSING ASSISTANCE

4 Subtitle A—Public and Indian Housing

5 SEC. 101. DEFINITION OF FAMILIES.

6 The first sentence of section 3(b)(3)(B) of the United

7 States Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is

8 amended by inserting ‘‘or, in the case of disabled families,

9 other household members’’ after ‘‘spouses’’.

10 SEC. 102. FAMILY SELF-SUFFICIENCY PROGRAM.

11 (a) SCOPE.—Section 23(b)(3) of the United States

12 Housing Act of 1937 (42 U.S.C. 1437u(b)(3)) is amended

13 to read as follows:

14 ‘‘(3) SCOPE.—Each public housing agency re15 quired to carry out a local program under this sec16 tion shall make assistance under the program avail17 able in a fiscal year, subject only to the availability

18 of amounts for such assistance, to a number of fami19 lies who are assisted by the agency under section 8

20 or reside in public housing of the agency that is

21 equivalent to the sum of—

22 ‘‘(A) the increase for such year in the

23 number of families assisted under section 8 (as

24 compared to the preceding year); and
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1 ‘‘(B) the increase for such year in the

2 number of public housing dwelling units made

3 available by the agency (as compared to the

4 preceding year).’’.

5 (b) VOLUNTARY ESCROW SAVINGS ACCOUNT.—Sec6 tion 23(d) of the United States Housing Act of 1937 (42

7 U.S.C. 1437u(d)) is amended—

8 (1) in paragraph (2)—

9 (A) in the 1st sentence, by striking ‘‘shall’’

10 and inserting ‘‘may’’;

11 (B) in the 2d sentence, by inserting after

12 ‘‘area median income’’ the following: ‘‘that

13 choose to escrow amounts under this para14 graph’’;

15 (C) in the 2d sentence, by striking ‘‘shall’’

16 and inserting ‘‘may’’; and

17 (D) by striking the 3d and 4th sentences

18 and inserting the following new sentence:

19 ‘‘Amounts in the escrow account may be with20 drawn by the participating family upon the suc21 cessful performance of the obligations of the

22 family under the contract of participation en23 tered into by the family under subsection (c), as

24 determined according to the specific goals and

25 terms included in the contract, and under other
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1 circumstances, as determined by the public

2 housing agency with the approval of the Sec3 retary.’’; and

4 (2) by striking the 2d sentence of paragraph

5 (3) and inserting the following new sentence: ‘‘The

6 plan may require the establishment of escrow sav7 ings accounts under paragraph (2), a description of

8 the procedures for release of escrowed amounts, and

9 any other incentives designed by the public housing

10 agency.’’.

11 (c) SERVICE COORDINATORS.—Section 23 of the

12 United States Housing Act of 1937 (42 U.S.C. 1437u)

13 is amended—

14 (1) in the last sentence of subsection (b)(1), by

15 inserting ‘‘under section 671 of the Housing and

16 Community Development Act of 1992’’ after ‘‘serv17 ice coordinator’’; and

18 (2) in subsection (h)—

19 (A) in paragraph (2), by striking ‘‘(includ20 ing the costs of employing a full-time service co21 ordinator)’’; and

22 (B) by adding at the end the following new

23 paragraph:

24 ‘‘(3) CONTRACT ADJUSTMENTS FOR SERVICE

25 COORDINATORS.—If, in providing rental assistance
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1 under section 8 of the United States Housing Act of

2 1937 for a public housing agency carrying out a

3 local program under this section in any fiscal year,

4 the Secretary increases the amount provided for the

5 agency so that the number of families assisted by

6 the agency in the year is greater than the number

7 of families assisted in the preceding year, the Sec8 retary may increase the amount annually provided

9 for the agency to provide for the costs of employing

10 or otherwise retaining the services of one or more

11 service coordinators referred to in subsection (b)(1)

12 of this section. The Secretary may also, under any

13 existing contract for assistance under section 8, in14 clude the cost of employing such service coordinators

15 to the extent that amounts for amendments to such

16 contracts are available.’’.

17 (d) REPEAL OF INCENTIVE AWARD ALLOCATION.—

18 Section 23 of the United States Housing Act of 1937 (42

19 U.S.C. 1437u) is amended—

20 (1) by striking subsection (i); and

21 (2) by redesignating subsections (j) through (o)

22 as subsections (i) through (n), respectively.

23 (e) TECHNICAL AMENDMENT.—Section 23(h)(2) of

24 the United States Housing Act of 1937 (42 U.S.C.

25 1437u(h)(2)) is amended by striking the last sentence.
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1 (f) USE OF COMMUNITY ACTION AGENCIES.—Section

2 23(b) of the United States Housing Act of 1937 (42

3 U.S.C. 1437u(b)) is amended by adding at the end the

4 following new paragraph:

5 ‘‘(5) USE OF COMMUNITY ACTION AGENCIES.—

6 A pubilc housing agency may enter into agreements

7 with any local community action agency receiving as8 sistance under the Community Services Block Grant

9 Act providing for such agency to carry out the local

10 program of the public housing agency or to provide

11 any supportive services under the local program.’’.

12 SEC. 103. PUBLIC HOUSING RENT REFORM.

13 (a) CEILING RENTS.—Section 3(a)(2) of the United

14 States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)) is

15 amended—

16 (1) in subparagraph (A)—

17 (A) in clause (i), by striking ‘‘and ap18 proved by the Secretary’’; and

19 (B) by striking clause (iii) and inserting

20 the following new clause:

21 ‘‘(iii) at the election of such agency, is—

22 ‘‘(I) not less than the average monthly

23 amount of debt service and operating expenses

24 attributable to dwelling units of similar size in
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1 public housing projects owned and operated by

2 such agency;

3 ‘‘(II) not less than the reasonable rental

4 value of the unit, as determined by the agency;

5 or

6 ‘‘(III) not less than the local market rent

7 determined by the agency for comparable units

8 of similar size pursuant to the procedures pre9 scribed by the Secretary for determining rent

10 reasonableness under the program for rental

11 certificate assistance under section 8(b).’’;

12 (2) by redesignating subparagraph (B) as sub13 paragraph (D); and

14 (3) by inserting after subparagraph (A) the fol15 lowing new subparagraphs:

16 ‘‘(B) Any ceiling rents established by a public housing

17 agency pursuant to this paragraph may be adjusted by

18 the agency.

19 ‘‘(C)(i) Any ceiling rents established pursuant to

20 subclause (I) or (III) of subparagraph (A)(iii) shall take

21 effect at the discretion of the public housing agency.

22 ‘‘(ii) Any ceiling rents established pursuant to

23 subclause (II) of subparagraph (A)(iii) may not take effect

24 before the issuance of regulations to carry out such

25 subclause, which shall be issued by the Secretary not later
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1 than 180 days after the date of the enactment of the

2 Housing and Community Development Act of 1994.

3 ‘‘(iii) Before the effectiveness of regulations under

4 clause (ii), an agency may implement ceiling rents which

5 shall be equal to the 95th percentile of the rent paid for

6 a unit of comparable size by tenants in the same project

7 or a group of comparable projects totaling 50 units or

8 more.’’.

9 (b) EXCLUSIONS FROM ADJUSTED INCOME.—Sec10 tion 3(b)(5) of the United States Housing Act of 1937

11 (42 U.S.C. 1437a(b)(5)) is amended—

12 (1) in subparagraph (C)—

13 (A) by striking ‘‘and’’ before ‘‘(ii)’’; and

14 (B) by inserting before the semicolon at

15 the end the following: ‘‘; and (iii) to the extent

16 documented by the family, the amount paid by

17 the family for health insurance coverage and

18 any other nonreimbursed out-of-pocket medical

19 expenses for any members of the family resid20 ing in the household who, at the time, are not

21 receiving or approved to receive any assistance

22 for health care from the Federal Government or

23 any State government, except that this clause

24 shall apply only to families residing in public

25 housing’’;
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1 (2) in subparagraph (E), by inserting before the

2 semicolon at the end the following: ‘‘, except that in

3 the case of a family residing in public housing the

4 amount excluded under this subparagraph shall be

5 20 percent of the earned income of the family re6 maining after excluding any amounts pursuant to

7 subparagraph (H)’’;

8 (3) in subparagraph (F), by striking ‘‘and’’ at

9 the end;

10 (4) in subparagraph (G), by striking the period

11 at the end and inserting ‘‘; and’’; and

12 (5) by adding at the end the following new sub13 paragraphs:

14 ‘‘(H) in the case of a family residing in public

15 housing, any earned income of any formerly depend16 ent child who is a member of the family residing in

17 the family’s dwelling unit during the period begin18 ning on the date of the first redetermination of the

19 rent for and family composition of the family that

20 occurs after the child reaches 18 years of age and

21 ending upon the date of the first such redetermina22 tion occurring after he or she reaches 21 years of

23 age.’’.
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1 (c) EXCLUSION OF EARNED INCOME OF RESIDENTS

2 WHO OBTAIN EMPLOYMENT FROM RENT DETERMINA3 TIONS.—

4 (1) IN GENERAL.—Section 3(a) of the United

5 States Housing Act of 1937 (42 U.S.C. 1437a(a)) is

6 amended—

7 (A) in the third sentence of paragraph (1),

8 by striking ‘‘paragraph (2)’’ and inserting

9 ‘‘paragraphs (2) and (3)’’; and

10 (B) by adding at the end the following new

11 paragraph:

12 ‘‘(3) EXCLUSION OF EARNED INCOME FROM RENT

13 DETERMINATION FOR FAMILIES PREVIOUSLY UNEM14 PLOYED.—Notwithstanding any other provision of law, a

15 public housing agency shall provide that, for all units in

16 public housing administered by the agency, the rent pay17 able under subsection (b) for any such unit occupied by

18 a family whose income increases as a result of employment

19 of a member of the family who was previously unemployed

20 for 1 or more years, may not—

21 ‘‘(A) be increased as a result of the increased

22 income due to such employment during the period

23 that begins upon the commencement of such employ24 ment and ends upon the second annual redetermina-
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1 tion of the rent for and family composition of the

2 family occurring thereafter;

3 ‘‘(B) during any 12-month period occurring

4 during the 36 months succeeding the expiration of

5 the period under subparagraph (A) for the family,

6 be increased due to the continued employment of

7 such family member by more than one-third of the

8 difference between (i) the rent being paid by the

9 family upon expiration of such period, and (ii) the

10 amount of rent that the family would pay but for

11 the applicability of this paragraph; and

12 ‘‘(C) in any case, exceed the amount determined

13 under paragraph (1) or (2).’’.

14 (d) EXCLUSION FROM INCOME OF EARNINGS FROM

15 JOB TRAINING AND SELF-SUFFICIENCY PROGRAMS.—

16 Section 3 of the United States Housing Act of 1937 (42

17 U.S.C. 1437a) is amended—

18 (1) in subsection (b)(4), by inserting before the

19 period at the end the following: ‘‘, and except that

20 the earnings of and benefits to any resident of public

21 housing or any unit assisted under section 8 result22 ing from enrollment and participation in a program

23 providing employment training and supportive serv24 ices in accordance with the Family Support Act of

25 1988, section 22 of this Act, the Job Training Part-
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1 nership Act, Subtitle D of title IV of the Cranston2 Gonzalez National Affordable Housing Act, part F

3 of title IV of the Social Security Act, or any com4 parable Federal, State, or local law shall not be con5 sidered as income for the purposes of determining a

6 limitation on the amount of rent paid by the resi7 dent during the period that the resident enrolls and

8 participates in such program’’; and

9 (2) by striking the undesignated paragraph at

10 the end of subsection (c)(3) (as added by section

11 515(b) of the Cranston-Gonzalez National Afford12 able Housing Act).

13 (3) Section 957 of the Cranston-Gonzalez Na14 tional Affordable Housing Act is hereby repealed.

15 (e) APPLICABILITY.—Notwithstanding the amend16 ments made by this section, any resident of public housing

17 participating in the program under the authority con18 tained in the undesignated paragraph at the end of section

19 3(c)(3) of the United States Housing Act of 1937 (as

20 added by section 515(b) of the Cranston-Gonzalez Na21 tional Affordable Housing Act (Public Law 101–625; 104

22 Stat. 4199)), as such paragraph existed before the date

23 of enactment of this Act, shall continue to be governed

24 by such authority.
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1 (f) PERFORMANCE FUNDING SYSTEM.—Section

2 9(a)(3)(B) of the United States Housing Act of 1937 (42

3 U.S.C. 1437g(a)(3)(B)) is amended—

4 (1) in clause (iv), by striking ‘‘and’’ at the end;

5 (2) in (v), by striking the period at the end and

6 inserting a semicolon; and

7 (3) by adding at the end the following new

8 clause:

9 ‘‘(vi) the amount of any reduced revenue result10 ing from the exclusion of income of public housing

11 residents pursuant to section 3(b)(5)(E) shall be cal12 culated and included in the amount of the payment

13 received under this section by the public housing

14 agency administering the public housing in which

15 such residents reside;’’.

16 (g) EFFECTIVE DATE.—The amendments under this

17 section shall take effect on October 1, 1995.

18 (h) REGULATIONS.—The Secretary shall issue any

19 final regulations necessary to implement the amendments

20 made by this section, which shall take effect on October

21 1, 1995. The regulations shall be issued after notice and

22 opportunity for public comment in accordance with the

23 procedures under section 553 of title 5, United States

24 Code, applicable to substantive rules (notwithstanding

25 subsections (a)(2), (b)(B), and (d)(3) of such section).
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1 SEC. 104. SALE OF PUBLIC HOUSING TO NON-PROFIT

2 INTERMEDIARIES.

3 The first sentence of section 5(h) of the United

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

5 amended by striking ‘‘its lower income tenants’’ and in6 serting: ‘‘low-income families residing in public housing or

7 to non-profit organizations for resale to low-income fami8 lies residing in public housing’’.

9 SEC. 105. REPEAL OF LEAST-COST LIMITATION ON PUBLIC

10 HOUSING NEW CONSTRUCTION.

11 Section 6 of the United States Housing Act of 1937

12 (42 U.S.C. 1437d) is amended by striking subsection (h).

13 SEC. 106. REGULATORY RELIEF AND PAPERWORK REDUC14 TION FOR HIGH-PERFORMING PUBLIC HOUS15 ING AGENCIES.

16 (a) WAIVER OF RULES AND REPORTS.—Section 6(j)

17 of the United States Housing Act of 1937 (42 U.S.C.

18 1437d(j)) is amended by adding at the end the following

19 new paragraph:

20 ‘‘(5)(A) Except as provided in subparagraph (B), the

21 Secretary may, for public housing agencies designated

22 pursuant to this subsection as high performing public

23 housing agencies with respect to a fiscal year, waive (by

24 regulation issued under subparagraph (C)) the applicabil25 ity for the ensuing fiscal year of regulatory requirements

26 otherwise applicable to public housing agencies to the ex-
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1 tent appropriate, as determined by the Secretary, to facili2 tate more efficient operation of such agencies.

3 ‘‘(B) The Secretary may not waive the applicability

4 of any provision—

5 ‘‘(i) limiting occupancy of public housing to

6 low-income families;

7 ‘‘(ii) under section 18 requiring replacement of

8 units in the case of demolition or disposition;

9 ‘‘(iii) under the Uniform Relocation Assistance

10 and Real Property Acquisition Policies Act of 1970;

11 ‘‘(iv) that prohibits, or the purpose of which is

12 to protect persons against, discrimination on the

13 basis of race, color, religion, sex, marital status, na14 tional origin, age, or handicap, or that relates to fair

15 housing or equal opportunity; or

16 ‘‘(v) under chapter 75 of title 31, United States

17 Code.

18 ‘‘(C) During fiscal year 1995, the Secretary shall

19 publish in the Federal Register a proposed rule providing

20 for the waiver of the regulations to be waived pursuant

21 to this paragraph and identifying such regulations. The

22 Secretary shall publish such proposed rule at a time deter23 mined by the Secretary to be sufficient to provide notice

24 and an opportunity for public comment before issuance of
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1 a final rule under this paragraph. Such final rule shall

2 be issued not later than August 31, 1995.’’.

3 (b) RETENTION BY PHA’S OF SAVINGS FROM EFFI4 CIENT MANAGEMENT.—Section 6(e) of the United States

5 Housing Act of 1937 (42 U.S.C. 1437d(e)) is amended

6 to read as follows:

7 ‘‘(e) TREATMENT OF SAVINGS.—

8 ‘‘(1) IN GENERAL.—Any income generated by a

9 high-performing public housing agency that exceeds

10 the income estimated by the agency to be generated,

11 according to the agency’s annual operating budget,

12 shall be excluded in subsequent years in calculating

13 the amount of the operating subsidy provided under

14 section 9 to the high-performing public housing

15 agency. Such savings shall be retained by the agency

16 for other housing purposes.

17 ‘‘(2) HIGH-PERFORMING PUBLIC HOUSING

18 AGENCY.—For purposes of paragraph (1), the term

19 ‘high-performing public housing agency’ means, with

20 respect to a year, a public housing agency that has

21 been designated pursuant to subsection (j) as a high

22 performing public housing agency for the last fiscal

23 year ending before the commencement of such

24 year.’’.
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1 SEC. 107. DESIGNATED HOUSING.

2 Section 7(e)(1) of the United States Housing Act of

3 1937 (42 U.S.C. 1437e(e)(1)) is amended—

4 (1) in the first sentence, by striking ‘‘and the

5 Secretary approves an application under this sub6 section for such designation’’; and

7 (2) in the second sentence, by inserting before

8 the period at the end the following: ‘‘, which shall

9 provide that an application for a project (or portion

10 of a project) shall be submitted and considered for

11 approval in conjunction with submission and ap12 proval of the allocation plan for the project (or por13 tion) under section 7(f)’’.

14 SEC. 108. ELIGIBLE USES OF EMERGENCY MODERNIZATION

15 FUNDS.

16 Section 14(k)(1) of the United States Housing Act

17 of 1937 (42 U.S.C. 1437l(k)(1)) is amended—

18 (1) in the first sentence, by striking

19 ‘‘$75,000,000’’ and inserting ‘‘$50,000,000’’; and

20 (2) by adding at the end the following new sen21 tence: ‘‘The Secretary shall make any amounts re22 served under this paragraph for any fiscal year that

23 remain unobligated on September 1 of such fiscal

24 year available for modernization needs in connection

25 with the settlement of litigation and desegregation of

26 public housing. Of the amounts reserved each year
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1 under this paragraph, the Secretary shall make

2 available to the Inspector General of the Department

3 of Housing and Urban Development not more than

4 $5,000,000 for cost in connection with efforts to

5 combat violent crime in public housing. Using

6 amounts made available pursuant to the preceding

7 sentence during fiscal years 1995 and 1996, the Sec8 retary shall provide amounts in each such fiscal year

9 for the continuation of the drug elimination activi10 ties under Project Nos. IA05PO98003004 and

11 IA05DEP0980193.’’.

12 SEC. 109. USE OF MODERNIZATION FUNDS FOR REPLACE13 MENT HOUSING.

14 (a) IN GENERAL.—Section 14 of the United States

15 Housing Act of 1937 (42 U.S.C. 1437l) is amended by

16 adding at the end the following new subsection:

17 ‘‘(q) USE OF AMOUNTS FOR REPLACEMENT HOUS18 ING.—

19 ‘‘(1) AUTHORITY.—A public housing agency

20 may use assistance under this section to provide re21 placement housing as required by section 18 by de22 veloping or acquiring additional housing under this

23 Act, in accordance with requirements applicable to

24 the development of public housing, but only if the

25 cost of providing such housing (not including costs
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1 of demolition) is more cost effective than the cost of

2 modernization of the housing proposed to be re3 placed.

4 ‘‘(2) LIMITATION ON AMOUNT.—In any fiscal

5 year, a public housing agency may use not more

6 than 50 percent of any assistance provided to the

7 agency under this section for the fiscal year for pro8 viding replacement housing pursuant to this section.

9 ‘‘(3) REQUIREMENTS.—A public housing agen10 cy may use assistance under this section as provided

11 in subsection (a) only if the replacement plan of the

12 agency, required under section 18, has been ap13 proved by the Secretary.’’.

14 (b) AVAILABLE REPLACEMENT HOUSING.—Section

15 14(c)(1) of the United States Housing Act of 1937 is

16 amended by inserting before the semicolon the following:

17 ‘‘or, only in the case of assistance used as provided under

18 subsection (q), housing or units in housing owned (or

19 leased for a period to be determined by the Secretary) by

20 a partnership of a public housing agency and other entity

21 in which the agency has a controlling interest’’.
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1 SEC. 110. AUTHORITY FOR PUBLIC HOUSING AGENCIES TO

2 LEVERAGE AMOUNTS FOR REPLACEMENT

3 AND MODERNIZATION.

4 Section 14 of the United States Housing Act of 1937

5 (42 U.S.C. 1437l) is amended by adding after subsection

6 (q), as added by the preceding provisions of this Act, the

7 following new subsection:

8 ‘‘(r) AUTHORITY FOR PUBLIC HOUSING AGENCIES

9 TO LEVERAGE AMOUNTS FOR REPLACEMENT AND MOD10 ERNIZATION.—

11 ‘‘(1) GENERAL AUTHORIZATION.—The Sec12 retary may, upon such terms and conditions as the

13 Secretary may prescribe, authorize a public housing

14 agency (or a partnership including a public housing

15 agency) to use grants provided under subsection (b)

16 to leverage amounts which shall be used for financ17 ing housing to replace existing public housing dwell18 ing units or for modernization of public housing, but

19 only if the agency submits to the Secretary a plan

20 for such leveraging that is approved by the Sec21 retary.

22 ‘‘(2) REQUIREMENTS.—The Secretary may ap23 prove a plan for leveraging under paragraph (1) only

24 if the Secretary determines that—

25 ‘‘(A) the public housing agency has an ac26 ceptable rate of obligation of funds under sec-
24

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1 tion 14 and demonstrates the ability to use

2 such amounts effectively, directly or through

3 contract management;

4 ‘‘(B) replacement units, if included in the

5 plan, will be subject to binding covenants or

6 commitments sufficient to ensure that they will

7 be used for housing reserved for occupancy by

8 low- and very low-income families for not less

9 than 40 years;

10 ‘‘(C) any modernization to be carried out

11 under the plan complies with the modernization

12 plan submitted under this section by the public

13 housing agency and any replacement of public

14 housing dwelling units to be carried out under

15 the plan complies with the requirements of sec16 tion 18;

17 ‘‘(D) the plan provides permanent financ18 ing commitments from additional sources,

19 which may include banks and other conven20 tional lenders, State housing finance agencies,

21 secondary market entities, and other financial

22 institutions, sufficient to ensure the financing

23 of replacement or modernized units in a timely

24 manner; and
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1 ‘‘(E) the plan complies with any other cri2 teria that the Secretary may establish.

3 ‘‘(3) OBLIGATION LIMITS.—

4 ‘‘(A) PER PHA.—The aggregate outstand5 ing principal amount leveraged under this sub6 section by a public housing agency may not at

7 any time exceed 5 times the amount of the most

8 recent grant for a fiscal year provided under

9 this section for comprehensive modernization.

10 ‘‘(B) FOR ALL PHAS.—The aggregate out11 standing principal amount leveraged under this

12 subsection by all public housing agencies may

13 not, in any single fiscal year, exceed

14 $2,000,000,000.

15 ‘‘(4) USE OF COMPREHENSIVE MODERNIZATION

16 GRANTS AND OPERATING REVENUES.—Notwith17 standing any other provision of this title, a public

18 housing agency for which a plan is approved under

19 this subsection may use amounts provided under this

20 section to the agency for comprehensive moderniza21 tion and amounts provided under section 9 to the

22 agency for operating subsidies (including program

23 income derived therefrom) for the payment of prin24 cipal, interest, and fees due on any loans obtained

25 pursuant to the plan.
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1 ‘‘(5) REPORTS.—The Secretary shall submit a

2 report to the Congress annually regarding the activi3 ties under plans for leveraging approved under this

4 subsection and the status of loans, financing, and in5 vestments obtained under such plans.’’.

6 SEC. 111. DEMOLITION AND DISPOSITION OF PUBLIC

7 HOUSING.

8 Section 18 of the United States Housing Act of 1937

9 (42 U.S.C. 1437p) is amended to read as follows:

10 ‘‘DEMOLITION AND DISPOSITION OF PUBLIC HOUSING

11 ‘‘SEC. 18. (a) CONDITION OF HOUSING.—The Sec12 retary may approve an application by a public housing

13 agency to demolish or dispose of a public housing project

14 or a portion of a public housing project only if the Sec15 retary has determined that—

16 ‘‘(1) in the case of—

17 ‘‘(A) an application proposing demolition

18 of a public housing project or a portion of a

19 public housing project, the project or portion of

20 the project is obsolete as to physical condition,

21 location, or other factors, and it is more cost ef22 fective to replace the project or portion of the

23 project than to rehabilitate the project or por24 tion of the project; or

25 ‘‘(B) an application proposing the demoli26 tion of only a portion of a project, the demoli-
27

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1 tion will help to assure the remaining useful life

2 of the remaining portion of the project;

3 ‘‘(2) in the case of an application proposing dis4 position of real property of a public housing agency

5 by sale or other transfer—

6 ‘‘(A)(i) the property’s retention is not in

7 the best interests of the tenants or the public

8 housing agency because (I) developmental

9 changes in the area surrounding the project ad10 versely affect the health or safety of the tenants

11 or the feasible operation of the project by the

12 public housing agency, (II) disposition proceeds

13 will contribute to the acquisition, development,

14 or rehabilitation of other properties which will

15 preserve the low-income rental housing available

16 in the community and help to meet the low-in17 come rental needs of the community as de18 scribed in the comprehensive housing afford19 ability strategy under section 105 of the Cran20 ston-Gonzalez National Affordable Housing Act,

21 or (III) because of other factors which the Sec22 retary determines are consistent with the best

23 interests of the tenants and public housing

24 agency and which are not inconsistent with

25 other provisions of this Act; and
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1 ‘‘(ii) for property other than dwelling

2 units, the property is excess to the needs of a

3 project or the disposition is incidental to, or

4 does not interfere with, continued operation of

5 a project; and

6 ‘‘(B) the net proceeds of the disposition

7 will be used for (i) the payment of development

8 costs for the replacement housing and for the

9 retirement of outstanding obligations issued to

10 finance original development or modernization

11 of the project, which, in the case of scattered12 site housing of a public housing agency, shall be

13 in an amount that bears the same ratio to the

14 total of such costs and obligations as the num15 ber of units disposed of bears to the total num16 ber of units of the project at the time of dis17 position, and (ii) to the extent that any pro18 ceeds remain after the application of proceeds

19 in accordance with clause (i), the provision of

20 housing assistance for low-income families

21 through such measures as modernization of low22 income housing, or the acquisition, develop23 ment, or rehabilitation of other properties to

24 operate as low-income housing; or
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1 ‘‘(3) in the case of an application proposing

2 demolition or disposition of any portion of a public

3 housing project, assisted at any time under section

4 5(j)(2)—

5 ‘‘(A) such assistance has not been provided

6 for the portion of the project to be demolished

7 or disposed within the 10-year period ending

8 upon submission of the application; or

9 ‘‘(B) the property’s retention is not in the

10 best interest of the tenants or the public hous11 ing agency because of changes in the area sur12 rounding the project or other extraordinary cir13 cumstances of the project, as determined by the

14 Secretary.

15 ‘‘(b) TENANT INVOLVEMENT AND REPLACEMENT

16 HOUSING.—The Secretary may approve an application or

17 furnish assistance under this section or under this Act

18 only if the following requirements are met:

19 ‘‘(1) TENANT CONSULTATION AND EMPLOY20 MENT.—The application from the public housing

21 agency—

22 ‘‘(A) has been developed in consultation

23 with tenants and tenant councils, if any, who

24 will be affected by the demolition or disposition;
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1 ‘‘(B) includes a plan to employ public

2 housing tenants in demolition, construction, and

3 rehabilitation to the extent practicable, pursu4 ant to section 3 of the Housing and Urban De5 velopment Act of 1968; and

6 ‘‘(C) contains a certification by appropriate

7 local government officials that the proposed ac8 tivity is consistent with the applicable com9 prehensive housing affordability strategy under

10 section 105 of the Cranston-Gonzalez National

11 Affordable Housing Act.

12 ‘‘(2) RELOCATION ASSISTANCE.—All tenants to

13 be relocated as a result of the demolition or disposi14 tion will be provided assistance by the public housing

15 agency and be relocated to other decent, safe, sani16 tary, and affordable housing, which is, to the maxi17 mum extent practicable, housing of their choice, in18 cluding housing assisted under section 8 of this Act.

19 ‘‘(3) REPLACEMENT HOUSING.—The public

20 housing agency has developed a plan, including a

21 completion schedule, that provides for an additional

22 decent, safe, sanitary, and affordable dwelling unit

23 for each public housing dwelling unit to be demol24 ished or disposed under such application or provides

25 additional dwelling units sufficient to meet the needs
31

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1 and demographic characteristics of the number of

2 applicants on the waiting list of the agency equal to

3 the number of units to be demolished or disposed of

4 which plan—

5 ‘‘(A) provides for the provision of such ad6 ditional dwelling units through—

7 ‘‘(i) the acquisition or development of

8 additional public housing dwelling units,

9 which may be units in housing owned (or

10 leased for a period to be determined by the

11 Secretary) by a partnership of a public

12 housing agency and other entity in which

13 the agency has a controlling interest;

14 ‘‘(ii) the use of 15-year project-based

15 assistance under section 8;

16 ‘‘(iii) in the case of an application

17 proposing demolition or disposition of 200

18 or more units, the use of tenant-based as19 sistance under section 8 having a term of

20 not less than 5 years;

21 ‘‘(iv) units acquired or otherwise pro22 vided for homeownership (including cooper23 ative and condominium interests) by public

24 housing residents under section 5(h), sub25 title B or C of title IV of the Cranston-
32

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1 Gonzalez National Affordable Housing Act,

2 or other programs for homeownership that

3 have program requirements substantially

4 equivalent to the requirements established

5 under section 605 of the Housing and

6 Community Development Act of 1987;

7 ‘‘(v) affordable housing homeowner8 ship units assisted under title II of the

9 Cranston-Gonzalez National Affordable

10 Housing Act and sold to public housing

11 residents;

12 ‘‘(vi) rental units that are (I) assisted

13 under title II of the Cranston-Gonzalez

14 National Affordable Housing Act (notwith15 standing section 212(d)(2) of such Act), or

16 (II) assisted under a State or local rental

17 assistance program that provides for rental

18 assistance over a term of not less than 15

19 years that is comparable in terms of eligi20 bility and contribution to rent to assistance

21 under section 8, except that this subclause

22 shall only apply in cases provided under

23 subparagraph (C);
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1 ‘‘(vii) housing assisted by a tax credit

2 under section 42 of the Internal Revenue

3 Code;

4 ‘‘(viii) housing acquired from the Res5 olution Trust Corporation or the Federal

6 Deposit Insurance Corporation;

7 ‘‘(ix) housing acquired under section

8 203 of the Housing and Community Devel9 opment Amendments of 1978;

10 ‘‘(x) other manners approved by the

11 Secretary; or

12 ‘‘(xi) any combination of such meth13 ods;

14 ‘‘(B) in the case of an application propos15 ing demolition or disposition of 200 or more

16 units, shall provide that—

17 ‘‘(i) not less than 50 percent of such

18 additional dwelling units shall be provided

19 through the acquisition or development of

20 additional dwelling units or through

21 project-based assistance; and

22 ‘‘(ii) not more than 50 percent of such

23 additional dwelling units shall be provided

24 through tenant-based assistance under sec-
34

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1 tion 8 having a term of not less than 5

2 years;

3 ‘‘(C) if it provides for the use of tenant4 based assistance provided under section 8 or

5 otherwise, may be approved—

6 ‘‘(i) only after a finding by the Sec7 retary that replacement with project-based

8 assistance is not feasible, and the supply of

9 decent, safe, and sanitary rental housing

10 available at a rental charge not greater

11 than the applicable fair market rent under

12 section 8 is sufficient to meet the needs of

13 those who would receive such assistance

14 under the plan; and

15 ‘‘(ii) only if such finding is based on

16 objective information, which shall include

17 rates of participation by landlords and ten18 ants in the section 8 program in the com19 munity, and the number of eligible families

20 in the community waiting for public hous21 ing or housing assistance under section 8

22 and the length of their wait;

23 ‘‘(D) may provide that all or part of such

24 additional dwelling units may be located outside

25 the jurisdiction of the public housing agency (in
35

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1 this subparagraph referred to as the ‘original

2 agency’) if—

3 ‘‘(i) the location is in the same hous4 ing market area as the original agency, as

5 determined by the Secretary; and

6 ‘‘(ii) the plan contains an agreement

7 between the original agency and the public

8 housing agency in the alternate location or

9 other public or private entity that will be

10 responsible for providing the additional

11 units in the alternate location that such al12 ternate agency or entity will, with respect

13 to the dwelling units involved—

14 ‘‘(I) provide the dwelling units in

15 accordance with subparagraph (A);

16 ‘‘(II) complete the plan on sched17 ule in accordance with subparagraph

18 (F);

19 ‘‘(III) meet the requirements of

20 subparagraph (G) of this paragraph

21 and the maximum rent provisions of

22 subparagraph (H);

23 ‘‘(IV) not impose a local resi24 dency preference on any resident of

25 the jurisdiction of the original agency
36

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1 for purposes of admission to any such

2 units; and

3 ‘‘(V) allow that preference for ad4 mission to any such additional units

5 may be provided to residents of the

6 severely distressed public housing

7 dwelling units replaced under this

8 subparagraph pursuant to section 24;

9 ‘‘(E) includes a schedule for completing

10 the plan within a period consistent with the size

11 of the proposed demolition or disposition and

12 replacement plan, which—

13 ‘‘(i) shall not exceed 6 years, except

14 that the Secretary may extend the schedule

15 to not more than 10 years if the Secretary

16 determines, 12 months prior to the expira17 tion of the scheduled completion date, that

18 good cause exists to extend the implemen19 tation of the replacement plan under this

20 subsection; and

21 ‘‘(ii) can occur in phases necessary to

22 provide for relocation of tenants under

23 paragraph (2);
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1 ‘‘(F) includes a method of ensuring that

2 the same number of individuals and families

3 will be provided housing;

4 ‘‘(G) provides for the payment of the relo5 cation expenses of each tenant to be displaced

6 and ensures that the rent paid by the tenant

7 following relocation will not exceed the amount

8 permitted under this Act;

9 ‘‘(H) prevents the taking of any action to

10 demolish or dispose of any unit until the tenant

11 of the unit is relocated to decent, safe, sanitary,

12 and affordable housing; and

13 ‘‘(I) permits the Secretary to intervene and

14 take any actions necessary to complete the plan

15 if the public housing agency fails, without good

16 cause, to carry out its obligations under the

17 plan.

18 ‘‘(c) LIMITATION ON DEMOLITION AND EXEMP19 TION.—

20 ‘‘(1) MAXIMUM PERCENTAGE.—Notwithstand21 ing any other provision of this section, in any 5-year

22 period a public housing agency may demolish not

23 more than the lesser of 5 dwelling units or 5 percent

24 of the total dwelling units owned and operated by

25 the public housing agency, without providing an ad-
38

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1 ditional dwelling unit for each such public housing

2 dwelling unit to be demolished, but only if the space

3 occupied by the demolished unit is used for meeting

4 the service or other needs of public housing resi5 dents.

6 ‘‘(2) SITE AND NEIGHBORHOOD STANDARDS

7 EXEMPTION.—Notwithstanding any other provision

8 of law, a replacement plan under subsection (b)(3)

9 may provide for demolition of public housing units

10 and replacement of such units on site or in the same

11 neighborhood if the number of replacement units

12 provided in the same neighborhood is fewer than the

13 number of units demolished and the balance of re14 placement units are provided elsewhere in the juris15 diction or pursuant to subsection (b)(3)(D).

16 ‘‘(d) TREATMENT OF REPLACEMENT UNITS.—With

17 respect to any dwelling units developed, acquired, or leased

18 by a public housing agency pursuant to a replacement plan

19 under subsection (b)(3)—

20 ‘‘(1) assistance may be provided under section

21 9 for such units; and

22 ‘‘(2) such units shall be available for occupancy,

23 operated and managed in the manner required for

24 public housing, and shall be subject to the other re-
39

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1 quirements applicable to public housing dwelling

2 units.

3 ‘‘(e) APPROVAL OF APPLICATIONS.—

4 ‘‘(1) IN GENERAL.—The Secretary shall notify

5 a public housing agency submitting an application

6 under this section for demolition or disposition and

7 replacement of a public housing project or portion of

8 a project of the approval or disapproval of the appli9 cation not later than 60 days after receiving the ap10 plication. If the Secretary does not notify the public

11 housing agency as required under this paragraph or

12 paragraph (2), the application shall be considered to

13 have been approved.

14 ‘‘(2) DISAPPROVAL AND RESUBMISSION.—If the

15 Secretary disapproves an application, the Secretary

16 shall specify in the notice of disapproval the reasons

17 for the disapproval and the agency may resubmit the

18 application as amended or modified.

19 ‘‘(3) HUD RESOURCES.—The Secretary shall,

20 upon approving a plan under subsection (b)(3) for

21 replacement housing units and units assisted under

22 section 8, agree to commit (subject to the availabil23 ity of future appropriations) the funds necessary to

24 carry out the plan over the approved schedule of the

25 plan. As part of each annual budget request for the
40

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1 Department of Housing and Urban Development,

2 the Secretary shall submit to the Congress a re3 port—

4 ‘‘(A) outlining the commitments the Sec5 retary entered into during the preceding year to

6 fund plans approved under subsection (b)(3);

7 ‘‘(B) specifying, by fiscal year, the budget

8 authority required to carry out the commit9 ments specified in subparagraph (A);

10 ‘‘(C) describing, for the preceding fiscal

11 year, by locality, project name, and number of

12 units—

13 ‘‘(i) the applications approved;

14 ‘‘(ii) the applications not approved;

15 ‘‘(iii) waiver applications approved;

16 ‘‘(iv) waiver applications default ap17 proved; and

18 ‘‘(v) waiver applications denied; and

19 ‘‘(D) describing by locality, project name,

20 and program, the number of replacement units

21 approved and funded.

22 ‘‘(f) ACTION BEFORE APPROVAL OF APPLICATION.—

23 ‘‘(1) PROHIBITED ACTION.—A public housing

24 agency shall not take any action to demolish or dis25 pose of a public housing project or a portion of a
41

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1 public housing project without obtaining the ap2 proval of the Secretary and satisfying the conditions

3 specified in subsections (a) and (b).

4 ‘‘(2) ALLOWABLE RELOCATION.—A public

5 housing agency may relocate tenants of public hous6 ing into other dwelling units after the submission of

7 an application under this section for demolition or

8 disposition or prior to implementing an approved

9 plan for modernization under section 14 or 24, if

10 units to be demolished or disposed of are not decent,

11 safe, and sanitary, or if the units to be rehabilitated

12 can not be maintained cost-effectively in a decent,

13 safe, and sanitary condition.

14 ‘‘(g) RESERVATION OF SECTION 8 ASSISTANCE.—In

15 each of fiscal years 1995 and 1996, the Secretary may

16 reserve from any budget authority appropriated for such

17 year for assistance under section 8 that is available for

18 families not currently receiving such assistance not more

19 than 10 percent of such budget authority for providing

20 replacement housing under subsection (b)(3)(A) for units

21 demolished or disposed of pursuant to this section.

22 ‘‘(h) INAPPLICABILITY TO PUBLIC HOUSING HOME23 OWNERSHIP PROGRAM.—The provisions of this section

24 shall not apply to the disposition of a public housing
42

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1 project in accordance with an approved homeownership

2 program under title III of this Act.

3 ‘‘(i) EXCEPTION TO REPLACEMENT RULE.—

4 ‘‘(1) REQUIREMENTS FOR WAIVER.—The Sec5 retary shall waive in whole or in part the applicabil6 ity of the provisions of subsection (b)(3) with respect

7 to any application under this section by a public

8 housing agency for the demolition or disposition of

9 public housing dwelling units if—

10 ‘‘(A) the Secretary determines, based on

11 information provided by the public housing

12 agency in the application and the request under

13 paragraph (2) and taking into consideration the

14 assessment submitted by the agency under

15 paragraph (2)(C), that—

16 ‘‘(i) the public housing agency has

17 made a good faith effort to implement the

18 replacement plan as approved;

19 ‘‘(ii) sufficient financial assistance is

20 not, and will not be, available to the public

21 housing agency or the community to reha22 bilitate or replace all or some of the units;

23 or

24 ‘‘(iii) changed circumstances and

25 other affordable housing in the community
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1 have satisfied the replacement housing re2 quired under the plan; and

3 ‘‘(B) the public housing agency requests a

4 waiver under this subsection in accordance with

5 the requirements under paragraph (2).

6 ‘‘(2) REQUEST FOR WAIVER.—To be eligible for

7 a waiver under this subsection, a public housing

8 agency shall submit to the Secretary a request for

9 a waiver under this subsection that includes—

10 ‘‘(A) a revised replacement housing plan

11 that describes additional decent, safe, sanitary,

12 and affordable dwelling units to be made avail13 able as replacement housing;

14 ‘‘(B) an identification of the replacement

15 dwelling units for which the waiver is requested

16 and a justification for why they cannot be pro17 duced; and

18 ‘‘(C) an assessment of the availability of

19 dwelling units affordable to low-income families

20 within the housing market area in which the

21 dwelling units are located, during the imple22 mentation of the replacement plan.

23 ‘‘(3) SUBMISSION TO SECRETARY.—A request

24 for a waiver under this subsection may be submitted

25 no earlier than 12 months before the expiration of
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1 the replacement plan completion schedule. The re2 quest shall be submitted to the Secretary by certified

3 mail or any other equivalent means that provides no4 tification to the public housing agency making the

5 request of the date of receipt by the Secretary.

6 ‘‘(4) NOTICE OF DISPOSITION OF REQUEST.—

7 Except as provided in paragraph (5), the Secretary

8 shall notify a public housing agency requesting a

9 waiver under this section of the approval or dis10 approval of the request not later than 60 days after

11 receiving the request. If the Secretary does not no12 tify the public housing agency as required under this

13 paragraph or paragraph (5), the request for a waiver

14 shall be considered to have been approved.

15 ‘‘(5) REQUEST FOR ADDITIONAL INFORMA16 TION.—If the Secretary determines that more infor17 mation is needed to make the determinations under

18 paragraph (1) than has been provided by the public

19 housing agency, the Secretary shall notify the agen20 cy in writing not later than 30 days after receiving

21 the request for the waiver that additional informa22 tion is necessary. Such notice shall describe specifi23 cally the additional information required for the de24 terminations and establish a deadline for the sub25 mission of the information by the agency, which
45

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1 shall be determined based on the difficulty of obtain2 ing the information requested. If the agency submits

3 such additional information requested before the

4 deadline established in the notice under this para5 graph, the Secretary shall notify the agency request6 ing the waiver that the request is approved or dis7 approved not later than 30 days after the submis8 sion of such additional information.

9 ‘‘(6) STATEMENT OF REASONS FOR DENYING

10 OR APPROVING REQUEST.—The Secretary shall in11 clude, in each notice under paragraph (4) or (5) of

12 the denial or approval of a request for a waiver

13 under this subsection, the specific reasons for deny14 ing or approving the request. The denial of any re15 quest for a waiver for public housing dwelling units

16 shall not prejudice the consideration of any other

17 subsequent request for such a waiver for any of such

18 dwelling units.’’.

19 SEC. 112. REVITALIZATION OF SEVERELY DISTRESSED PUB20 LIC HOUSING.

21 (a) PLANNING GRANTS.—Subsection (c) of section 24

22 of the United States Housing Act of 1937 (42 U.S.C.

23 1437v(c)) is amended—

24 (1) in paragraph (2) by striking ‘‘$200,000’’

25 and inserting ‘‘$300,000’’;
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1 (2) in paragraph (3)—

2 (A) in subparagraph (G), by striking ‘‘de3 signing a suitable replacement housing plan’’

4 and inserting ‘‘designing suitable relocation and

5 replacement housing plans’’;

6 (B) by redesignating subparagraphs (E)

7 through (I) as subparagraphs (F) through (J),

8 respectively; and

9 (C) by inserting after subparagraph (D)

10 the following new subparagraph:

11 ‘‘(E) planning for community service ac12 tivities to be carried out by residents, other

13 members of the community, and other persons

14 willing to contribute to the social, economic, or

15 physical improvement of the community;’’;

16 (3) in paragraph (4)—

17 (A) by redesignating subparagraphs (D)

18 and (E) as subparagraphs (E) and (F), respec19 tively; and

20 (B) by inserting after subparagraph (C)

21 the following new subparagraph:

22 ‘‘(D) to the extent the applicant is request23 ing amounts for community service planning ac24 tivities, a description of such activities to be

25 carried out by residents, other members of the
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1 community, and other persons willing to con2 tribute to the social, economic, or physical im3 provement of the community;’’; and

4 (5) in paragraph (5)—

5 (A) in subparagraph (F), by inserting be6 fore the semicolon at the end the following: ‘‘,

7 taking into consideration the condition of the

8 public housing of the public housing agency as

9 a whole’’;

10 (B) by striking subparagraph (E); and

11 (C) by redesignating subparagraphs (F)

12 and (G) as subparagraphs (E) and (F), respec13 tively.

14 (b) IMPLEMENTATION GRANTS.—Subsection (d) of

15 section 24 of the United States Housing Act of 1937 is

16 amended—

17 (1) in paragraph (2)—

18 (A) in subparagraph (I), by striking ‘‘ex19 cept that’’ and all that follows and inserting the

20 following: ‘‘except that—

21 ‘‘(i) not more than 20 percent of any

22 grant under this subsection may be used

23 for such purpose; and

24 ‘‘(ii) an amount equal to 15 percent of

25 the amount of any grant under this sub-
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1 section used for such purposes shall be

2 contributed from non-Federal sources, and

3 may be in the form of cash, administrative

4 costs, and the reasonable value of in-kind

5 contributions, and may include funding

6 under title I of the Housing and Commu7 nity Development Act of 1974.’’;

8 (B) by redesignating subparagraphs (E)

9 through (I) (as so amended) as subparagraphs

10 (G) through (K), respectively; and

11 (C) by inserting after subparagraph (D)

12 the following new subparagraphs:

13 ‘‘(E) community service activities to be

14 carried out by residents, other members of the

15 community, and other persons willing to con16 tribute to the social, economic, or physical im17 provement of the community;

18 ‘‘(F) replacement of public housing units;’’;

19 (2) in paragraph (3)—

20 (A) by redesignating subparagraphs (D)

21 and (E) as subparagraphs (E) and (F), respec22 tively; and

23 (B) by inserting after subparagraph (C)

24 the following new subparagraph:
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1 ‘‘(D) to the extent the applicant is request2 ing amounts for community service activities, a

3 description of the community service activities

4 to be carried out by residents, other members

5 of the community, and other persons willing to

6 contribute to the social, economic, or physical

7 improvement of the community;’’; and

8 (3) in paragraph (4)—

9 (A) by striking subparagraph (D) and in10 serting the following new subparagraph:

11 ‘‘(D) the quality of the proposed revitaliza12 tion program and the suitability of the project

13 for such a program;’’;

14 (B) in subparagraph (F), by inserting be15 fore the semicolon at the end the following: ‘‘,

16 taking into consideration the condition of the

17 public housing of the applicant as a whole’’;

18 and

19 (C) by striking subparagraph (E); and

20 (D) by redesignating subparagraphs (F)

21 and (G) as subparagraphs (E) and (F), respec22 tively.

23 (c) EXCEPTIONS TO GENERAL PROGRAM REQUIRE24 MENTS.—Section 24(e) of the United States Housing Act

25 of 1937 is amended—
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1 (1) by striking the first sentence of paragraph

2 (2) and inserting the following new sentence: ‘‘For

3 projects revitalized under this section, a public hous4 ing agency may—

5 ‘‘(A) in lieu of selecting tenants pursuant

6 to the preferences specified under section

7 6(c)(4)(A)(i), select tenants pursuant to a local

8 system of preferences;

9 ‘‘(B) in making dwelling units in such

10 projects available for occupancy, disregard the

11 order in which applications were made for resi12 dency in public housing dwelling units or any

13 waiting lists established for such residency to

14 provide for substantial variation in the incomes

15 of families residing in the project, subject to the

16 provisions of this Act relating to income eligi17 bility in public housing projects (as modified

18 under subparagraph (C));

19 ‘‘(C) notwithstanding section 16 of this

20 Act, provide for low-income families to occupy

21 not more than 50 percent of the dwelling units

22 in a project, and

23 ‘‘(D) establish ceiling rents under section

24 3(a)(2).’’; and
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1 (2) by adding at the end the following new

2 paragraph:

3 ‘‘(3) DEMOLITION AND REPLACEMENT.—

4 ‘‘(A) IN GENERAL.—Notwithstanding any

5 other applicable law or regulation, a revitaliza6 tion plan under this section may include demoli7 tion of public housing units and replacement of

8 such units on site or in the same neighborhood

9 if the number of replacement units provided in

10 the same neighborhood is fewer than the num11 ber of units demolished as a result of the revi12 talization effort.

13 ‘‘(B) TENANT-BASED ASSISTANCE.—Not14 withstanding the limitation in subparagraph (C)

15 of section 18(b)(3), a public housing agency

16 may replace not more than one-third of the

17 units demolished or disposed of through a revi18 talization project under this section with ten19 ant-based assistance under section 8, but only

20 if the public housing agency demonstrates to

21 the satisfaction of the Secretary that the local

22 housing market in which the assistance is to be

23 used has had a vacancy rate, among units

24 whose rent does not exceed the fair market

25 rental for the area established under section
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1 8(e), of more than 3 percent for at least 6 con2 secutive months.

3 ‘‘(C) ADDITIONAL METHODS OF REPLACE4 MENT.—A revitalization plan under this section

5 may provide for replacement of public housing

6 units in the manners under subparagraph (D)

7 of this paragraph in addition to the require8 ments of subparagraph (B) of section 18(b)(3))

9 if the agency or corporation enters into such

10 agreements as the Secretary considers nec11 essary to ensure that the replacement units will

12 remain affordable to families eligible for resi13 dency in public housing for the remaining use14 ful life of the units, as determined by the Sec15 retary.

16 ‘‘(D) CERTIFICATE AND NEW UNIT MIX.—

17 Each such dwelling unit demolished, disposed

18 of, or otherwise eliminated pursuant to para19 graph (c) shall be replaced with an additional

20 dwelling unit through any combination of—

21 ‘‘(i) additional public housing dwelling

22 units;

23 ‘‘(ii) units or housing described in

24 clause (iv), (v), (vii), (viii), or (ix) of sec25 tion 18(b)(3)(A);
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1 ‘‘(iii) rental units that are (I) assisted

2 under title II of the Cranston-Gonzalez

3 National Affordable Housing Act (notwith4 standing section 212(d)(2) of such Act), or

5 (II) assisted under a State or local rental

6 assistance program that provides for rental

7 assistance over a term of not less than 5

8 years that is comparable in terms of eligi9 bility and contribution to rent to assistance

10 under section 8; but this clause shall apply

11 to a revitalization program only if the

12 agency demonstrates to the satisfaction of

13 the Secretary that the local housing mar14 ket in which the assistance is to be used

15 has had a vacancy rate, among units whose

16 rent does not exceed the fair market rental

17 for the area established under section 8(e),

18 of more than 3 percent for at least 6 con19 secutive months; or

20 ‘‘(iv) other manners approved by the

21 Secretary.’’.

22 (d) DEFINITIONS.—Subsection (h) of section 24 of

23 the United States Housing Act of 1937 is amended—

24 (1) by striking paragraph (5) and inserting the

25 following new paragraphs:
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1 ‘‘(6) SEVERELY DISTRESSED PUBLIC HOUS2 ING.—The term ‘severely distressed public housing’

3 means a public housing project or building in a

4 project that—

5 ‘‘(A) requires major redesign, reconstruc6 tion, or redevelopment, or partial or total demo7 lition, to correct serious deficiencies in the

8 original design (including inappropriately high

9 population density), deferred maintenance,

10 physical deterioration or obsolescence of major

11 systems, and other deficiencies in the physical

12 plant of the project;

13 ‘‘(B) is—

14 ‘‘(i)(I) occupied predominantly by

15 families with children which have extremely

16 low incomes, high rates of unemployment,

17 and extensive dependency on various forms

18 of public assistance; and

19 ‘‘(II) has high rates of vandalism and

20 criminal activity (including drug-related

21 criminal activity) in comparison to other

22 housing in the area; or

23 ‘‘(ii) has a vacancy rate, as deter24 mined by the Secretary, of 50 percent or

25 more;
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1 ‘‘(C) can not be revitalized through assist2 ance under other programs, such as the pro3 grams under sections 9 and 14, or through

4 other administrative means because of the inad5 equacy of available amounts; and

6 ‘‘(D) in the case of an individual building,

7 the building is (in the determination of the Sec8 retary) sufficiently separable from the remain9 der of the project of which the building is part

10 to make use of the building feasible for pur11 poses of this section.

12 ‘‘(7) SUPPORT SERVICES.—The term ‘support

13 services’ includes all activities which will promote

14 upward mobility, self-sufficiency, and improved qual15 ity of life for the residents of the public housing

16 project involved, and shall include literacy training,

17 job training, day care, and economic development ac18 tivities. Support services may be provided to resi19 dents of the neighborhood in which the public hous20 ing project involved is located.’’;

21 (2) by redesignating paragraphs (2) through

22 (4) as paragraphs (3) through (5), respectively; and

23 (3) by inserting after paragraph (1) the follow24 ing new paragraph:
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1 ‘‘(2) COMMUNITY SERVICE.—The term ‘commu2 nity service’ means services provided on a volunteer

3 or limited stipend basis for the social, economic, or

4 physical improvement of the community to be

5 served, including opportunity for the upward mobil6 ity of participants providing the community service,

7 through completion of education requirements, job

8 training, or alternative methods of developing skills

9 and job readiness.’’.

10 (e) REPEAL.—Subsections (b) and (i) of section 24

11 of the United States Housing Act of 1937 are repealed.

12 (f) APPLICABILITY.—Section 24 of the United States

13 Housing Act of 1937 is amended by adding at the end

14 the following new subsection:

15 ‘‘(j) APPLICABILITY.—Notwithstanding any provision

16 of this Act, with respect to a public housing project that

17 (1) has been selected for funding under this section 24

18 or through the urban revitalization demonstration pro19 gram under the Departments of Veterans Affairs and

20 Housing and Urban Development, and Independent Agen21 cies Appropriations Act, 1993 (Public Law 102–389, 106

22 Stat. 1579; 42 U.S.C. 1437l note) or the Departments of

23 Veterans Affairs and Housing and Urban Development,

24 and Independent Agencies Appropriations Act, 1994

25 (Public Law 103–124, 107 Stat. 1285; 42 U.S.C. 1437l
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1 note), and (2) has an approved comprehensive plan under

2 section 14 of this Act, the Secretary may apply any provi3 sion of this section and the regulations hereunder to all

4 activities undertaken at such projects only during revital5 ization. Such activities may include demolition, moderniza6 tion, reconstruction, site improvement, replacement hous7 ing and operation and management, including funding

8 under sections 5, 9, and 14.’’.

9 (g) CONFORMING AMENDMENT.—The first sentence

10 of section 25(m)(1) of the United States Housing Act of

11 1937 (42 U.S.C. 1437w(m)(1)) is amended to read as fol12 lows: ‘‘The term ‘eligible housing’ means a public housing

13 project, or one or more buildings within a project, that

14 is owned or operated by a troubled public housing agency

15 that has been troubled for not less than 3 years and that,

16 as determined by the Secretary, has failed to make sub17 stantial progress toward effective management.’’.

18 (h) APPLICABILITY TO CERTAIN PROJECT.—The

19 amendments made by this section shall apply with respect

20 to assistance provided before the date of the enactment

21 of this Act under section 24 of the United States Housing

22 Act of 1937 for the Desire Housing Development, located

23 in New Orleans, Louisiana, but only to the extent that

24 the Housing Authority of New Orleans submits to the Sec25 retary of Housing and Urban Development a description
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1 of the revitalization program for such project describing

2 the use of such assistance under the provisions of such

3 section 24, as amended, which is approved by the Sec4 retary.

5 SEC. 113. APPLICABILITY OF PUBLIC HOUSING AMEND6 MENTS TO INDIAN HOUSING.

7 (a) AMENDMENT.—Section 201(b) of the United

8 States Housing Act of 1937 (42 U.S.C. 1437aa(b)) is

9 amended to read as follows:

10 ‘‘(b) APPLICABILITY OF TITLE I.—Except as other11 wise provided by law, the provisions of title I shall apply

12 to low-income housing developed or operated pursuant to

13 a contract between the Secretary and an Indian housing

14 authority.’’.

15 (b) APPLICABILITY OF AMENDMENT.—The amend16 ment made by subsection (a) shall not affect provisions

17 of the United States Housing Act of 1937 that were made

18 applicable to public housing developed or operated pursu19 ant to a contract between the Secretary and an Indian

20 housing authority in accordance with section 201(b)(2) of

21 such Act, as such section existed before the effective date

22 of this section.

23 (c) APPLICABILITY OF HOUSING AND COMMUNITY

24 DEVELOPMENT ACT OF 1992.—The provisions of, and the

25 amendments made by, sections 103(a)(1), 112, 114, 116,
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1 118, 903, and 927 of the Housing and Community Devel2 opment Act of 1992 and sections 301, 302, 303 and 304

3 of the Multifamily Housing Property Disposition Reform

4 Act of 1994 shall apply to public housing developed or op5 erated pursuant to a contract between the Secretary and

6 an Indian housing authority.

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

8 HOUSING.

9 Section 131 of the Housing and Community Develop10 ment Act of 1992 (Public Law 102–550; 106 Stat. 3712)

11 is amended by adding at the end the following new sen12 tence: ‘‘During the term of the annual contributions con13 tract relating to the scattered-site public housing origi14 nally sold under this section, any proceeds from the dis15 position of replacement scattered-site dwellings purchased

16 with (1) the proceeds from such original disposition, or

17 (2) the proceeds from the disposition of any replacement

18 scattered-site dwellings, shall be used to purchase addi19 tional replacement scattered-site dwellings, which shall be

20 considered public housing for the purposes of such Act and

21 for which the Secretary shall provide annual contributions

22 for operation, using amounts made available under section

23 9(c) of such Act.’’.
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1 SEC. 115. COMMUNITY PARTNERSHIPS AGAINST CRIME.

2 (a) SHORT TITLE, PURPOSES, AND AUTHORITY TO

3 MAKE GRANTS.—Chapter 2 of subtitle C of title V of the

4 Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.)

5 is amended by striking the chapter heading and all that

6 follows through section 5123 and inserting the following:

7 ‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS

8 AGAINST CRIME

9 ‘‘SEC. 5121. SHORT TITLE.

10 ‘‘This chapter may be cited as the ‘Community Part11 nerships Against Crime Act of 1994’.

12 ‘‘SEC. 5122. PURPOSES.

13 ‘‘The purposes of this chapter are to—

14 ‘‘(1) improve the quality of life for the vast ma15 jority of law-abiding public housing residents by re16 ducing the levels of fear, violence, and crime in their

17 communities;

18 ‘‘(2) substantially expand and enhance the Fed19 eral Government’s commitment to eliminating crime

20 in and around public housing and other federally as21 sisted low-income housing;

22 ‘‘(3) broaden the scope of the Public and As23 sisted Housing Drug Elimination Act of 1990 to

24 apply to all types of crime, and not simply crime

25 that is drug-related;
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1 ‘‘(4) encourage the involvement of a broad

2 range of community-based groups and residents of

3 neighboring housing that is owned or assisted by the

4 Secretary in the development and implementation of

5 anti-crime plans;

6 ‘‘(5) reduce crime and disorder in and around

7 public housing through the expansion of community8 oriented policing activities and problem solving;

9 ‘‘(6) provide training, information services, and

10 other technical assistance to program participants;

11 and

12 ‘‘(7) establish a standardized assessment sys13 tem to evaluate need among public housing agencies

14 and to measure progress in reaching crime reduction

15 goals.

16 ‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.

17 ‘‘The Secretary of Housing and Urban Development

18 may make grants in accordance with the provisions of this

19 chapter for use in eliminating crime in and around public

20 housing and other federally assisted low-income housing

21 projects to (1) public housing agencies, and (2) private,

22 for-profit and nonprofit owners of federally assisted low23 income housing. In designing the program for grants

24 under this chapter, the Secretary shall consult with the

25 Attorney General.’’.
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1 (b) ELIGIBLE ACTIVITIES.—

2 (1) IN GENERAL.—Section 5124(a) of the Anti3 Drug Abuse Act of 1988 (42 U.S.C. 11903(a)) is

4 amended—

5 (A) in the matter preceding paragraph (1),

6 by inserting ‘‘and around’’ after ‘‘used in’’;

7 (B) in paragraph (3), by inserting before

8 the semicolon the following: ‘‘, including fenc9 ing, lighting, locking, and surveillance systems’’;

10 (C) in paragraph (4), by striking subpara11 graph (A) and inserting the following new sub12 paragraph:

13 ‘‘(A) to investigate crime; and’’;

14 (D) in paragraph (6)—

15 (i) by striking ‘‘in and around public

16 or other federally assisted low-income

17 housing projects’’; and

18 (ii) by striking ‘‘and’’ after the semi19 colon; and

20 (E) by striking paragraph (7) and insert21 ing the following new paragraphs:

22 ‘‘(7) providing funding to nonprofit public hous23 ing resident management corporations and resident

24 councils to develop security and crime prevention

25 programs involving site residents;
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1 ‘‘(8) the employment or utilization of one or

2 more individuals, including law enforcement officers,

3 made available by contract or other cooperative ar4 rangement with State or local law enforcement agen5 cies, to engage in community- and problem-oriented

6 policing involving interaction with members of the

7 community in proactive crime control and prevention

8 activities;

9 ‘‘(9) programs and activities for or involving

10 youth, including training, education, recreation and

11 sports, career planning, and entrepreneurship and

12 employment activities and after school and cultural

13 programs; and

14 ‘‘(10) service programs for residents that ad15 dress the contributing factors of crime, including

16 programs for job training, education, drug and alco17 hol treatment, and other appropriate social serv18 ices.’’.

19 (2) OTHER PHA-OWNED HOUSING.—Section

20 5124(b) of the Anti-Drug Abuse Act of 1988 (42

21 U.S.C. 11903(b)) is amended—

22 (A) in the matter preceding paragraph

23 (1)—

24 (i) by striking ‘‘drug-related crime in’’

25 and inserting ‘‘crime in and around’’; and
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1 (ii) by striking ‘‘paragraphs (1)

2 through (7)’’ and inserting ‘‘paragraphs

3 (1) through (10)’’; and

4 (B) in paragraph (2), by striking ‘‘drug-re5 lated’’ and inserting ‘‘criminal’’.

6 (c) GRANT PROCEDURES.—Section 5125 of the Anti7 Drug Abuse Act of 1988 (42 U.S.C. 11904) is amended

8 to read as follows:

9 ‘‘SEC. 5125. GRANT PROCEDURES.

10 ‘‘(a) PHA’S WITH 250 OR MORE UNITS.—

11 ‘‘(1) GRANTS.—In each fiscal year, the Sec12 retary shall make a grant under this chapter from

13 any amounts available under section 5131(b)(1) for

14 the fiscal year to each of the following public hous15 ing agencies:

16 ‘‘(A) NEW APPLICANTS.—Each public

17 housing agency that owns or operates 250 or

18 more public housing dwelling units and has—

19 ‘‘(i) submitted an application to the

20 Secretary for a grant for such fiscal year,

21 which includes a 5-year crime deterrence

22 and reduction plan under paragraph (2);

23 and

24 ‘‘(ii) had such application and plan

25 approved by the Secretary.
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1 ‘‘(B) RENEWALS.—Each public housing

2 agency that owns or operates 250 or more pub3 lic housing dwelling units and for which—

4 ‘‘(i) a grant was made under this

5 chapter for the preceding Federal fiscal

6 year;

7 ‘‘(ii) the term of the 5-year crime de8 terrence and reduction plan applicable to

9 such grant includes the fiscal year for

10 which the grant under this subsection is to

11 be made; and

12 ‘‘(iii) the Secretary has determined,

13 pursuant to a performance review under

14 paragraph (4), that during the preceding

15 fiscal year the agency has substantially ful16 filled the requirements under subpara17 graphs (A) and (B) of paragraph (4).

18 ‘‘(2) 5-YEAR CRIME DETERRENCE AND REDUC19 TION PLAN.—Each application for a grant under

20 this subsection shall contain a 5-year crime deter21 rence and reduction plan. The plan shall describe,

22 for the public housing agency submitting the plan—

23 ‘‘(A) the nature of the crime problem in

24 public housing owned or operated by the public

25 housing agency;
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1 ‘‘(B) the building or buildings of the public

2 housing agency affected by the crime problem;

3 ‘‘(C) the impact of the crime problem on

4 residents of such building or buildings; and

5 ‘‘(D) the actions to be taken during the

6 term of the plan to reduce and deter such

7 crime, which shall include actions involving resi8 dents, law enforcement, and service providers.

9 The term of a plan shall be the period consisting of

10 5 consecutive fiscal years, which begins with the first

11 fiscal year for which funding under this chapter is

12 provided to carry out the plan.

13 ‘‘(3) AMOUNT.—In any fiscal year, the amount

14 of the grant for a public housing agency receiving a

15 grant pursuant to paragraph (1) shall be the

16 amount that bears the same ratio to the total

17 amount made available under section 5131(b)(1) as

18 the total number of public dwelling units owned or

19 operated by such agency bears to the total number

20 of dwelling units owned or operated by all public

21 housing agencies that own or operate 250 or more

22 public housing dwelling units that are approved for

23 such fiscal year.

24 ‘‘(4) PERFORMANCE REVIEW.—For each fiscal

25 year, the Secretary shall conduct a performance re-
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1 view of the activities carried out by each public

2 housing agency receiving a grant pursuant to this

3 subsection to determine whether the agency—

4 ‘‘(A) has carried out such activities in a

5 timely manner and in accordance with its 5-

6 year crime deterrence and reduction plan; and

7 ‘‘(B) has a continuing capacity to carry

8 out such plan in a timely manner.

9 ‘‘(5) SUBMISSION OF APPLICATIONS.—The Sec10 retary shall establish such deadlines and require11 ments for submission of applications under this sub12 section as the Secretary determines appropriate for

13 timely and orderly allocation and disbursement of

14 amounts made available for grants under this sub15 section.

16 ‘‘(6) REVIEW AND DETERMINATION.—The Sec17 retary shall review each application submitted under

18 this subsection upon submission and shall approve

19 the application unless the application and the 5-year

20 crime deterrence and reduction plan are inconsistent

21 with the purposes of this chapter or any require22 ments established by the Secretary or the informa23 tion in the application or plan is not substantially

24 complete. Upon approving or determining not to ap25 prove an application and plan submitted under this
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1 subsection, the Secretary shall notify the public

2 housing agency submitting the application and plan

3 of such approval or disapproval.

4 ‘‘(7) DISAPPROVAL OF APPLICATIONS.—If the

5 Secretary notifies an agency that the application and

6 plan of the agency is not approved, not later than

7 the expiration of the 15-day period beginning upon

8 such notice of disapproval, the Secretary shall also

9 notify the agency, in writing, of the reasons for the

10 disapproval, the actions that the agency could take

11 to comply with the criteria for approval, and the

12 deadlines for such actions.

13 ‘‘(8) FAILURE TO APPROVE OR DISAPPROVE.—

14 If the Secretary fails to notify an agency of approval

15 or disapproval of an application and plan submitted

16 under this subsection before the expiration of the

17 60-day period beginning upon the submission of the

18 plan or fails to provide notice under paragraph (7)

19 within the 15-day period under such paragraph to

20 an agency whose application has been disapproved,

21 the application and plan shall be considered to have

22 been approved for purposes of this section.

23 ‘‘(b) PHA’S WITH FEWER THAN 250 UNITS AND

24 OWNERS OF FEDERALLY ASSISTED LOW-INCOME HOUS25 ING.—
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1 ‘‘(1) APPLICATIONS AND PLANS.—To be eligible

2 to receive a grant under this chapter, a public hous3 ing agency that owns or operates fewer than 250

4 public housing dwelling units or an owner of feder5 ally assisted low-income housing shall submit an ap6 plication to the Secretary at such time, in such man7 ner, and accompanied by such additional information

8 as the Secretary may require. The application shall

9 include a plan for addressing the problem of crime

10 in and around the housing for which the application

11 is submitted, describing in detail activities to be con12 ducted during the fiscal year for which the grant is

13 requested.

14 ‘‘(2) GRANTS FOR PHA’S WITH FEWER THAN

15 250 UNITS.—In each fiscal year the Secretary may,

16 to the extent amounts are available under section

17 5131(b)(2), make grants under this chapter to pub18 lic housing agencies that own or operate fewer than

19 250 public housing dwelling units and have submit20 ted applications under paragraph (1) that the Sec21 retary has approved pursuant to the criteria under

22 paragraph (4).

23 ‘‘(3) GRANTS FOR FEDERALLY ASSISTED LOW24 INCOME HOUSING.—In each fiscal year the Secretary

25 may, to the extent amounts are available under sec-
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1 tion 5131(b)(3), make grants under this chapter to

2 owners of federally assisted low-income housing that

3 have submitted applications under paragraph (1)

4 that the Secretary has approved pursuant to the cri5 teria under paragraphs (4) and (5).

6 ‘‘(4) CRITERIA FOR APPROVAL OF APPLICA7 TIONS.—The Secretary shall determine whether to

8 approve each application under this subsection on

9 the basis of—

10 ‘‘(A) the extent of the crime problem in

11 and around the housing for which the applica12 tion is made;

13 ‘‘(B) the quality of the plan to address the

14 crime problem in the housing for which the ap15 plication is made;

16 ‘‘(C) the capability of the applicant to

17 carry out the plan; and

18 ‘‘(D) the extent to which the tenants of the

19 housing, the local government, local community20 based nonprofit organizations, local tenant or21 ganizations representing residents of neighbor22 ing projects that are owned or assisted by the

23 Secretary, and the local community support and

24 participate in the design and implementation of
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1 the activities proposed to be funded under the

2 application.

3 In each fiscal year, the Secretary may give pref4 erence to applications under this subsection for

5 housing made by applicants who received a grant for

6 such housing for the preceding fiscal year under this

7 subsection or under the provisions of this chapter as

8 in effect immediately before the date of the enact9 ment of the Housing and Community Development

10 Act of 1994.

11 ‘‘(5) ADDITIONAL CRITERIA FOR FEDERALLY

12 ASSISTED LOW-INCOME HOUSING.—In addition to

13 the selection criteria under paragraph (4), the Sec14 retary may establish other criteria for evaluating ap15 plications submitted by owners of federally assisted

16 low-income housing, except that such additional cri17 teria shall be designed only to reflect—

18 ‘‘(A) relevant differences between the fi19 nancial resources and other characteristics of

20 public housing authorities and owners of feder21 ally assisted low-income housing; or

22 ‘‘(B) relevant differences between the prob23 lem of crime in public housing administered by

24 such public housing agencies and the problem
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1 of crime in federally assisted low-income hous2 ing.’’.

3 (d) DEFINITIONS.—Section 5126 of the Anti-Drug

4 Abuse Act of 1988 (42 U.S.C. 11905) is amended—

5 (1) by striking paragraphs (1) and (2);

6 (2) in paragraph (4), by striking ‘‘section’’ be7 fore ‘‘221(d)(4)’’;

8 (3) by redesignating paragraphs (3) and (4) (as

9 so amended) as paragraphs (1) and (2), respectively;

10 and

11 (4) by adding at the end the following new

12 paragraph:

13 ‘‘(3) PUBLIC HOUSING AGENCY.—The term

14 ‘public housing agency’ has the meaning given the

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

16 Act of 1937.’’.

17 (e) IMPLEMENTATION.—Section 5127 of the Anti18 Drug Abuse Act of 1988 (42 U.S.C. 11906) is amended

19 by striking ‘‘Cranston-Gonzalez National Affordable

20 Housing Act’’ and inserting ‘‘Housing and Community

21 Development Act of 1994’’.

22 (f) REPORTS.—Section 5128 of the Anti-Drug Abuse

23 Act of 1988 (42 U.S.C. 11907) is amended—

24 (1) by striking ‘‘The Secretary’’ and inserting

25 the following:
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1 ‘‘(a) REPORTS BY GRANTEES.—The Secretary’’;

2 (2) by striking ‘‘drug-related crime in’’ and in3 serting ‘‘crime in and around’’;

4 (3) by striking ‘‘described in section 5125(a)’’

5 and inserting ‘‘for the grantee submitted under sub6 section (a) or (b) of section 5125, as applicable’’;

7 and

8 (4) by adding at the end the following new sub9 section:

10 ‘‘(b) REPORTS BY SECRETARY.—For each fiscal year

11 in which the Secretary makes grants under this chapter,

12 the Secretary shall submit a report to the Congress de13 scribing the progress achieved in crime deterrence and re14 duction in the public housing and federally assisted low15 income housing for which such grant assistance has been

16 provided. The report shall include any recommendations

17 of the Secretary for changes in the program of assistance

18 under this chapter.’’.

19 (g) TECHNICAL ASSISTANCE AND FUNDING.—Chap20 ter 2 of subtitle C of title V of the Anti-Drug Abuse Act

21 of 1988 is amended by striking section 5130 (42 U.S.C.

22 11909) and inserting the following new sections:

23 ‘‘SEC. 5130. TECHNICAL ASSISTANCE.

24 ‘‘(a) IN GENERAL.—To the extent amounts are made

25 available under section 5131(c), the Secretary may provide
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1 training, information services, and other technical assist2 ance to public housing agencies and other entities with re3 spect to their participation in the program under this

4 chapter, which shall include activities under subsection (b)

5 of this section. Such technical assistance may be provided

6 directly by the Secretary or indirectly pursuant to grants,

7 contracts, or cooperative agreements.

8 ‘‘(b) USE.—The Secretary may use amounts available

9 for use under this section—

10 ‘‘(1) to establish and operate the clearinghouse

11 on drug abuse in public housing and the regional

12 training program on drug abuse in public housing

13 under sections 5143 and 5144 of this Act;

14 ‘‘(2) to obtain assistance in establishing and

15 managing assessment and evaluation criteria and

16 specifications and to obtain the opinions of experts

17 in relevant fields; and

18 ‘‘(3) upon the request of a public housing agen19 cy, to assist the agency in evaluating the extent of

20 the crime problem in any public housing adminis21 tered by the agency and preparing a 5-year crime

22 deterrence and reduction plan under section 5125(a)

23 or an application and plan under section 5125(b)(1),

24 which assistance may include providing personnel
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1 and funding to identify and secure local resources to

2 assist in deterring and reducing crime.

3 ‘‘(c) PRIORITY.—In selecting entities to receive tech4 nical assistance under this section, the Secretary shall give

5 priority to public housing agencies that have submitted ap6 plications and plans under section 5125 that the Secretary

7 has determined do not meet the requirements for approval

8 for assistance under this chapter.

9 ‘‘SEC. 5131. ALLOCATION OF FUNDING.

10 ‘‘(a) ALLOCATION.—Of any amounts available, or

11 that the Secretary is authorized to use, to carry out this

12 chapter in any fiscal year that remain after reserving

13 amounts for use under subsection (c)—

14 ‘‘(1) 85 percent shall be available only for as15 sistance pursuant to section 5125(a) to public hous16 ing agencies that own or operate 250 or more public

17 housing dwelling units;

18 ‘‘(2) 10 percent shall be available only for as19 sistance pursuant to section 5125(b)(2) to public

20 housing agencies that own or operate fewer than 250

21 public housing dwelling units; and

22 ‘‘(3) 5 percent shall be available only for assist23 ance to federally assisted low-income housing pursu24 ant to section 5125(b)(3).
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1 Any other provision of law enacted before or after the date

2 of the enactment of the Housing and Community Develop3 ment Act of 1994 that limits the authority of the Sec4 retary to use amounts to carry out this chapter upon the

5 apportionment of such amounts in a manner not provided

6 for in this subsection shall not be effective.

7 ‘‘(b) SET-ASIDE FOR TECHNICAL ASSISTANCE.—Of

8 any amount made available in fiscal years 1994 and 1995

9 to carry out this chapter, the Secretary shall use not more

10 than $10,000,000 in each such fiscal year to provide tech11 nical assistance under section 5130.’’.

12 (h) CONFORMING AMENDMENTS.—The table of con13 tents in section 5001 of the Anti-Drug Abuse Act of 1988

14 (Public Law 100–690; 102 Stat. 4295) is amended—

15 (1) by striking the item relating to the heading

16 for chapter 2 of subtitle C and inserting the follow17 ing:

‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;

18 (2) by striking the item relating to section 5122

19 and inserting the following new item:

‘‘Sec. 5122. Purposes.’’;

20 (3) by striking the item relating to section 5125

21 and inserting the following new item:

‘‘Sec. 5125. Grant procedures.’’;

22 and
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1 (4) by striking the item relating to section 5130

2 and inserting the following new items:

‘‘Sec. 5130. Technical Assistance.

‘‘Sec. 5131. Funding.’’.

3 SEC. 116. PUBLIC HOUSING RESIDENT OPPORTUNITY.

4 Section 20 of the United States Housing Act of 1937

5 (42 U.S.C. 1437r) is amended—

6 (1) by striking the section heading and insert7 ing the following new section heading:

8 ‘‘RESIDENT OPPORTUNITY PROGRAM’’;

9 (2) in the first 2 sentences of subsection (b), by

10 striking ‘‘resident management program’’ each place

11 it appears and inserting ‘‘resident opportunity pro12 gram’’; and

13 (3) in subsection (f)—

14 (A) by striking ‘‘RESIDENT MANAGEMENT

15 TECHNICAL ASSISTANCE AND TRAINING’’ and

16 inserting ‘‘RESIDENT OPPORTUNITY ASSIST17 ANCE’’;

18 (B) in paragraph (1), by adding at the end

19 the following new sentences: ‘‘In addition, the

20 Secretary may provide financial assistance to

21 resident management corporations or resident

22 councils for activities sponsored by resident or23 ganizations for job training, economic develop24 ment, security, and other self-sufficiency activi-
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1 ties beyond those related to the management of

2 public housing. Any resident management cor3 poration or resident council may use such as4 sistance to enter into agreements with any local

5 community action agency receiving assistance

6 under the Community Services Block Grant Act

7 for such agency to carry out such activities.’’;

8 (C) in paragraph (2), by striking

9 ‘‘$100,000’’ and inserting ‘‘$250,000’’;

10 (D) by striking paragraph (3) and insert11 ing the following new paragraph:

12 ‘‘(3) FUNDING.—Of any amounts made avail13 able for financial assistance under section 14, the

14 Secretary may use to carry out this subsection

15 $25,000,000 for fiscal year 1995 and $25,000,000

16 for fiscal year 1996.’’;

17 (E) by redesignating paragraphs (2)

18 through (4) as paragraphs (3) through (5), re19 spectively; and

20 (F) by inserting after paragraph (1) the

21 following new paragraph:

22 ‘‘(2) OTHER USES OF ASSISTANCE.—The Sec23 retary may use amounts available to carry out this

24 subsection to enter into contracts with—
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1 ‘‘(A) various entities for monitoring, eval2 uation, technical assistance, and information

3 dissemination in connection with activities

4 under this subsection; and

5 ‘‘(B) resident organizations and public or

6 private entities (including local community ac7 tion agencies receiving assistance under the

8 Community Services Block Grant Act) for ac9 tivities that support the economic development

10 and increased self-sufficiency of public housing

11 residents.

12 Eligible activities related to economic development

13 and self-sufficiency may include programs for coun14 seling, treatment for substance abuse, child care, re15 medial education, job training, and development of

16 resident businesses.’’.

17 Subtitle B—Section 8 Rental Assistance

18 SEC. 121. MERGER OF SECTION 8 RENTAL ASSISTANCE

19 PROGRAMS.

20 (a) IN GENERAL.—Section 8 of the United States

21 Housing Act of 1937 (42 U.S.C. 1437f) is amended to

22 read as follows:

23 ‘‘RENTAL HOUSING ASSISTANCE FOR LOW-INCOME

24 FAMILIES

25 ‘‘SEC. 8. (a) AUTHORITY AND PURPOSE.—
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1 ‘‘(1) IN GENERAL.—For the purposes of aiding

2 low-income families in obtaining a decent place to

3 live and promoting economically mixed housing, the

4 Secretary may provide assistance payments with re5 spect to existing housing in accordance with the pro6 visions of this section.

7 ‘‘(2) ELDERLY HOUSING.—Notwithstanding any

8 other provision of this Act, assistance payments

9 under this section may be provided, in accordance

10 with regulations prescribed by the Secretary, with

11 respect to some or all of the units in any project ap12 proved pursuant to section 202 of the Housing Act

13 of 1959 (as in effect before October 1, 1991).

14 ‘‘(b) ANNUAL CONTRIBUTIONS CONTRACTS FOR

15 RENTAL ASSISTANCE.—

16 ‘‘(1) IN GENERAL.—The Secretary may enter

17 into annual contributions contracts under this sub18 section with public housing agencies to provide rent19 al housing assistance under this section for low-in20 come families. Such annual contributions contracts

21 shall bind the Secretary to make such authority, and

22 any amendments increasing such authority, available

23 to the public housing agency for a specified period.

24 ‘‘(2) SECRETARY ACTING AS PHA.—In areas

25 where no public housing agency has been organized
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1 or where the Secretary determines that a public

2 housing agency is unable to implement the provi3 sions of this section, the Secretary may enter into

4 such contracts and perform the other functions as5 signed to a public housing agency by this section.

6 ‘‘(3) TREATMENT OF ASSISTANCE FOR SUP7 PORTIVE HOUSING FOR THE DISABLED.—The Sec8 retary may not consider the receipt by a public hous9 ing agency of assistance under section 811(b)(1) of

10 the Cranston-Gonzalez National Affordable Housing

11 Act, or the amount received, in approving assistance

12 under this section for the agency or in determining

13 the amount of such assistance to be provided to the

14 agency.

15 ‘‘(c) ASSISTANCE CONTRACTS.—

16 ‘‘(1) IN GENERAL.—Each public housing agen17 cy that receives amounts under an annual contribu18 tions contract may enter into assistance contracts to

19 make rental assistance payments to owners of exist20 ing dwelling units in accordance with the provisions

21 of this section.

22 ‘‘(2) PHA ACTING AS OWNER.—A public hous23 ing agency may contract to make rental assistance

24 payments under this section to itself (or any agency

25 or instrumentality thereof) as the owner of dwelling
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1 units, and the agency shall be subject to the same

2 program requirements as are applied to other own3 ers. In such cases, the Secretary may establish ini4 tial rents within applicable limits.

5 ‘‘(3) INAPPLICABLE PROVISIONS.—Sections 5(e)

6 and 6 and any other provisions of this Act that are

7 inconsistent with the provisions of this section shall

8 not apply to assistance contracts entered into pursu9 ant to this section.

10 ‘‘(d) MAXIMUM MONTHLY RENT.—

11 ‘‘(1) IN GENERAL.—Each assistance contract

12 entered into pursuant to this section shall establish

13 the maximum monthly rent (including utilities and

14 all maintenance and management charges) that the

15 owner is entitled to receive for each dwelling unit for

16 which rental assistance payments are to be made

17 under the contract. Except as provided in paragraph

18 (2), the maximum monthly rent shall not exceed by

19 more than 10 percent the fair market rental under

20 subsection (e) for the market area in which the

21 dwelling unit is located. If units assisted under this

22 section are exempt from local rent control while they

23 are so assisted or otherwise, the maximum monthly

24 rent for such units shall be reasonable in comparison
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1 with other units in the market area that are exempt

2 from local rent control.

3 ‘‘(2) EXCEPTION.—The maximum monthly rent

4 may exceed the fair market rental—

5 ‘‘(A) by more than 10 but not more than

6 20 percent, but only if the Secretary determines

7 that special circumstances warrant such higher

8 maximum rent or that such higher rent is nec9 essary to the implementation of a comprehen10 sive housing affordability strategy under section

11 105 of the Cranston-Gonzalez National Afford12 able Housing Act; or

13 ‘‘(B) by such higher amount, only if re14 quested by the low-income family assisted and

15 approved by the public housing agency in ac16 cordance with subsection (f)(2).

17 ‘‘(3) ANNUAL ADJUSTMENTS.—Each assistance

18 contract shall provide for adjustment in the maxi19 mum monthly rents for units covered by the contract

20 not less than annually to reflect changes in the fair

21 market rentals established under subsection (e) for

22 the housing area for similar types and sizes of dwell23 ing units or, if the Secretary determines, on the

24 basis of a reasonable formula.
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1 ‘‘(4) ADJUSTMENTS DUE TO EXPENSES.—Each

2 assistance contract shall further provide for the Sec3 retary to make additional adjustments in the maxi4 mum monthly rent for units assisted under the con5 tract to the extent the Secretary determines such ad6 justments are necessary to reflect changes in the ac7 tual and necessary expenses of owning and main8 taining the units that have resulted from substantial

9 general changes in real property taxes, utility rates,

10 or similar costs that are not adequately compensated

11 for by the adjustment in the maximum monthly rent

12 authorized by paragraph (3). The Secretary shall

13 make additional adjustments in the maximum

14 monthly rent for units under contract (subject to the

15 availability of appropriations for contract amend16 ments) to the extent the Secretary determines such

17 adjustments are necessary to reflect changes in the

18 actual and necessary expenses of owning and main19 taining the units that have resulted from the expira20 tion of a real property tax exemption.

21 ‘‘(5) ADJUSTMENTS DUE TO CRIMINAL ACTIV22 ITY.—If the Secretary determines that a project as23 sisted under this section is located in a community

24 where criminal activity is generally prevalent and the

25 operating, maintenance, and capital repair expenses
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1 for the project have been substantially increased pri2 marily as a result of the prevalence of such activity,

3 the Secretary may (at the discretion of the Secretary

4 and subject to the availability of appropriations for

5 contract amendments for this purpose), on a project6 by-project basis, provide adjustments to the maxi7 mum monthly rents, to a level not exceeding 120

8 percent of the project rents, to cover the costs of

9 maintenance, security, capital repairs, and reserves

10 required for the owner to carry out a strategy ac11 ceptable to the Secretary for addressing the problem

12 of criminal activity. The Secretary may waive the

13 applicability of any rent comparability standard re14 quired under this subsection to implement this para15 graph.

16 ‘‘(6) ADJUSTMENTS DUE TO LEAD-BASED

17 PAINT REDUCTION FOR HOUSING RECEIVING

18 PROJECT-BASED ASSISTANCE.—The Secretary may

19 (at the discretion of the Secretary and subject to the

20 availability of appropriations for contract amend21 ments), on a project-by-project basis for projects re22 ceiving project-based assistance, provide adjustments

23 to the maximum monthly rents to cover the costs of

24 evaluating and reducing lead-based paint hazards, as
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1 defined in section 1004 of the Residential Lead2 Based Paint Hazard Reduction Act of 1992.

3 ‘‘(7) LIMITATIONS ON ADJUSTMENTS.—

4 ‘‘(A) GENERAL COMPARABILITY RULE.—

5 Adjustments in the maximum rents under para6 graphs (3) through (6) shall not result in mate7 rial differences between the rents charged for

8 assisted units and unassisted units of similar

9 quality, type, and age in the same market area,

10 as determined by the Secretary.

11 ‘‘(B) COMPARABILITY STUDIES.—

12 ‘‘(i) To carry out subparagraph (A),

13 the Secretary shall issue regulations to

14 provide for conducting comparability stud15 ies for projects where the Secretary has

16 reason to believe that the application of the

17 formula adjustments under paragraph (3)

18 would result in such material differences.

19 The Secretary shall conduct such studies

20 upon the request of any owner of any

21 project, or as the Secretary determines to

22 be appropriate by establishing, to the ex23 tent practicable, a modified annual adjust24 ment factor for such market area, as the

25 Secretary shall designate, that is geo-
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1 graphically smaller than the applicable

2 housing area used for the establishment of

3 the annual adjustment factor under para4 graph (3). The Secretary shall establish

5 such modified annual adjustment factor on

6 the basis of the results of a study con7 ducted by the Secretary of the rents

8 charged, and any change in such rents

9 over the previous year, for assisted units

10 and unassisted units of similar quality,

11 type, and age in the smaller market area.

12 Where the Secretary determines that such

13 modified annual adjustment factor cannot

14 be established or that such factor when ap15 plied to a particular project would result in

16 material differences between the rents

17 charged for assisted units and unassisted

18 units of similar quality, type, and age in

19 the same market area, the Secretary may

20 apply an alternative methodology for con21 ducting comparability studies in order to

22 establish rents that are not materially dif23 ferent from rents charged for comparable

24 unassisted units.
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1 ‘‘(ii) If the Secretary or appropriate

2 State agency does not complete and submit

3 to the project owner a comparability study

4 not later than 60 days before the anniver5 sary date of the assistance contract under

6 this section, the automatic annual adjust7 ment factor shall be applied. The Secretary

8 may not reduce the contract rents in effect

9 on or after April 15, 1987, for newly con10 structed, substantially rehabilitated, or

11 moderately rehabilitated projects assisted

12 under this section (including projects as13 sisted under this section as in effect prior

14 to November 30, 1983), unless the project

15 has been refinanced in a manner that re16 duces the periodic payments of the owner.

17 Any maximum monthly rent that has been

18 reduced by the Secretary after April 14,

19 1987, and prior to November 7, 1988,

20 shall be restored to the maximum monthly

21 rent in effect on April 15, 1987.

22 ‘‘(iii) For any project which has had

23 its maximum monthly rents reduced after

24 April 14, 1987, the Secretary shall make

25 assistance payments (from amounts re-
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1 served for the original contract) to the

2 owner of such project in an amount equal

3 to the difference between the maximum

4 monthly rents in effect on April 15, 1987,

5 and the reduced maximum monthly rents,

6 multiplied by the number of months that

7 the reduced maximum monthly rents were

8 in effect.

9 ‘‘(e) FAIR MARKET RENTALS.—

10 ‘‘(1) IN GENERAL.—The Secretary shall estab11 lish fair market rentals under this subsection peri12 odically, but not less than annually, for existing

13 rental dwelling units suitable for occupancy by low14 income families assisted under this section. The Sec15 retary shall establish the fair market rental by hous16 ing market area for various sizes and types of dwell17 ing units. For a market area, the fair market rental

18 for any size and type of dwelling unit shall be a dol19 lar amount not less than the amount that results in

20 the rents charged for 45 percent of the standard

21 quality rental units of such size and type in the mar22 ket area being less than such dollar amount. For

23 purposes of determining the dollar amount under the

24 preceding sentence, the Secretary shall consider only

25 rental units occupied by recent movers and shall not
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1 consider public housing units, units for which mar2 ket rents cannot be determined, and newly con3 structed units.

4 ‘‘(2) EFFECTIVENESS AND ADJUSTMENT.—The

5 Secretary shall publish proposed fair market rentals

6 for each area in the Federal Register with reason7 able time for public comment, and such fair market

8 rentals shall become effective upon the date of publi9 cation in final form in the Federal Register. Each

10 fair market rental in effect under this subsection

11 shall be adjusted to be effective on October 1 of each

12 year to reflect changes, based on the most recent

13 available data trended so the rentals will be current

14 for the year to which they apply, of rents for exist15 ing rental dwelling units, as the case may be, of var16 ious sizes and types in the market area suitable for

17 occupancy by families assisted under this section.

18 ‘‘(3) CERTAIN AREAS.—The Secretary shall es19 tablish separate fair market rentals under this sub20 section for Westchester County in the State of New

21 York. The Secretary shall also establish separate fair

22 market rentals under this paragraph for Monroe

23 County in the Commonwealth of Pennsylvania. In

24 establishing fair market rentals for the remaining

25 portion of the market areas in which Monroe County
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1 is located, the Secretary shall establish the fair mar2 ket rentals as if such portion included Monroe

3 County.

4 ‘‘(4) REQUIRED REVIEW.—If at any time, for

5 any public housing agency, more than 50 percent of

6 the families on behalf of whom assistance is provided

7 under this section by the agency are paying as rent

8 more than the amount specified under section 3(a)

9 (as authorized in subsection (f)(2)), the agency shall

10 review the fair market rentals established under this

11 subsection for the market areas in the jurisdiction of

12 the public housing agency.

13 ‘‘(f) AMOUNT OF MONTHLY ASSISTANCE PAYMENT

14 AND DUE PROCESS RIGHTS.—

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), the amount of the monthly assistance

17 payment under this section with respect to any

18 dwelling unit shall be the difference between the

19 maximum monthly rent that the contract provides

20 that the owner is to receive for the unit and the rent

21 the family is required to pay under section 3(a).

22 ‘‘(2) INCREASED FAMILY PAYMENT.—A family

23 on behalf of whom tenant-based assistance payments

24 are made under this section may pay as rent for a

25 dwelling unit assisted under this section more than
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1 the amount specified under section 3(a), but only

2 if—

3 ‘‘(A) the family notifies the public housing

4 agency of its interest in a unit renting for an

5 amount that exceeds the permissible maximum

6 monthly rent established for the market area

7 under subsection (d);

8 ‘‘(B) such agency determines that the rent

9 for the unit and the rental payments of the

10 family are reasonable, after taking into account

11 other family expenses (including child care, un12 reimbursed medical expenses, transportation,

13 and other appropriate family expenses;

14 ‘‘(C) such amount does not exceed 40 per15 cent of the family’s monthly adjusted income;

16 and

17 ‘‘(D) the public housing agency has first

18 exercised any authority under paragraphs (1)

19 and (2)(A) of subsection (d) to increase the

20 maximum monthly rent for the dwelling unit.

21 The amount of the monthly assistance payment

22 under this section with respect to a dwelling unit for

23 a family paying rent as provided in this paragraph

24 shall be the difference between an amount based on
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1 the fair market rent and the rent the family is re2 quired to pay under section 3(a).

3 ‘‘(3) INCREASES IN ASSISTANCE PAYMENTS.—

4 The Secretary shall take any action necessary, in5 cluding making contracts for assistance payments in

6 amounts exceeding the amounts required upon the

7 initial renting of dwelling units, reserving annual

8 contributions authority for the purpose of amending

9 assistance contracts, or allocating a portion of new

10 authorizations for the purpose of amending assist11 ance contracts, to ensure that assistance payments

12 are increased on a timely basis to cover increases in

13 maximum monthly rents or decreases in family in14 comes.

15 ‘‘(4) REVIEWS OF FAMILY INCOMES.—

16 ‘‘(A) IN GENERAL.—Reviews of family in17 comes for purposes of this section shall be made

18 annually and shall be subject to the provisions

19 of section 904(e) of the Stewart B. McKinney

20 Homeless Assistance Amendments Act of 1988.

21 For families for whom an increased rental pay22 ment has been approved under paragraph (2),

23 such review shall include determining whether

24 the rent for the unit and the rental payments

25 of the family continue to be reasonable, in ac-
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1 cordance with subparagraphs (B) and (C) of

2 paragraph (2).

3 ‘‘(B) PROCEDURES.—The Secretary shall

4 establish procedures that are appropriate and

5 necessary to ensure that income data provided

6 to public housing agencies and owners by fami7 lies applying for or receiving assistance under

8 this section is complete and accurate.

9 ‘‘(C) CONFIDENTIALITY.—Any income in10 formation received pursuant to this paragraph

11 shall remain confidential and shall be used only

12 for the purpose of verifying incomes in order to

13 determine eligibility of families for benefits (and

14 the amount of such benefits, if any) under this

15 section.

16 ‘‘(5) DUE PROCESS RIGHTS IN CASES OF AD17 VERSE ACTION.—In the case of any action proposed

18 to be taken by a public housing agency, any family

19 receiving assistance under this section adversely af20 fected by such action shall have the right to at least

21 the basic elements of due process with regard to

22 such action, as follows:

23 ‘‘(A) Written notice of the intended ad24 verse action and the reason for such action

25 shall be provided to the family not less than 30
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1 days before the action is to be taken, or, in a

2 case where the health or safety of other families

3 is threatened, a reasonable period of time con4 sidering the seriousness of the situation (but

5 not to exceed 30 days).

6 ‘‘(B) The family shall have the right to re7 quest a hearing within 30 days after receipt of

8 the notice.

9 ‘‘(C) The family shall have the right to a

10 hearing before an impartial hearing officer.

11 ‘‘(D) The family shall have the right to be

12 represented at the hearing by an attorney or

13 other advocate.

14 ‘‘(E) The family shall have the right to ex15 amine the evidence supporting the action and

16 all evidence that the public housing agency in17 tends to use.

18 ‘‘(F) The family shall have the right to

19 present testimonial and documentary evidence

20 and to cross-examine adverse witnesses.

21 ‘‘(G) The hearing officer shall issue a writ22 ten decision, which shall be based solely upon

23 the evidence introduced at the hearing and

24 which shall state the basis of the decision.

25 ‘‘(g) ELIGIBILITY OF UNITS FOR ASSISTANCE.—
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1 ‘‘(1) OCCUPANCY STATUS.—Each assistance

2 contract shall provide that assistance payments may

3 be made only with respect to the following dwelling

4 units:

5 ‘‘(A) OCCUPIED UNITS.—A dwelling unit

6 under lease for occupancy by a family deter7 mined to be a low-income family at the time it

8 initially occupies the dwelling unit or by a fam9 ily that qualifies to receive assistance under this

10 section pursuant to section 223 or 226 of the

11 Low-Income Housing Preservation and Resi12 dent Homeownership Act of 1990.

13 ‘‘(B) UNOCCUPIED UNITS.—An unoccupied

14 dwelling unit, but only if—

15 ‘‘(i)(I) a family vacates the dwelling

16 unit before the expiration date of the lease

17 for occupancy, or (II) a good faith effort is

18 being made to fill the unoccupied unit; and

19 ‘‘(ii) the costs of such vacancy are not

20 charged to or paid by the family vacating

21 the dwelling unit.

22 Payments for units referred to in this subpara23 graph may be made only for a period not ex24 ceeding 60 days, except that such payments

25 may be made, in the case of a newly con-
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1 structed or substantially rehabilitated project,

2 after the expiration of such 60-day period in an

3 amount equal to the debt service attributable to

4 such an unoccupied dwelling unit for a period

5 not to exceed one year, if a good faith effort is

6 being made to fill the unit and the unit provides

7 decent, safe, and sanitary housing. No such

8 payment may be made after the expiration of

9 such 60-day period if the Secretary determines

10 that the dwelling unit is in a project which pro11 vides the owner with revenues exceeding the

12 costs incurred by such owner with respect to

13 such project.

14 ‘‘(2) OWNER’S STATUS.—A public housing

15 agency shall not approve the rental of a dwelling

16 unit if the owner—

17 ‘‘(A) is debarred, suspended, or subject to

18 limited denial of participation under part 24 of

19 title 24, Code of Federal Regulations; or

20 ‘‘(B) has been convicted of drug traffick21 ing.’’

22 ‘‘(h) OTHER PROVISIONS OF ASSISTANCE CON23 TRACTS.—Contracts to make assistance payments entered

24 into by any public housing agency (or by the Secretary)
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1 with an owner of existing housing units shall meet the fol2 lowing requirements:

3 ‘‘(1) CONTRACT TERM.—Each assistance con4 tract shall have a term of not less than one month

5 nor more than 180 months. The Secretary shall per6 mit public housing agencies to enter into assistance

7 contracts having terms of less than 12 months to the

8 extent necessary to avoid disruption in assistance to

9 eligible families if the annual contributions contract

10 for the agency under subsection (b) will expire with11 in 1 year.

12 ‘‘(2) PREFERENCES.—Each assistance contract

13 shall provide that, in making assistance available

14 pursuant to the contract—

15 ‘‘(A) for not less than 70 percent of the

16 families who initially receive project-based as17 sistance, and

18 ‘‘(B) for not less than 90 percent of the

19 families who initially receive tenant-based as20 sistance in any 1-year period,

21 preference shall be given to families that (i) occupy

22 substandard housing (including families that are

23 homeless or living in a shelter for homeless families),

24 (ii) are paying more than 50 percent of family in25 come for rent, or (iii) are involuntarily displaced (in-
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1 cluding displacement because of disposition of a mul2 tifamily housing project under section 203 of the

3 Housing and Community Development Amendments

4 of 1978) at the time they are seeking assistance

5 under this section.

6 ‘‘(3) SECONDARY PREFERENCES.—Each assist7 ance contract shall provide that, for any assistance

8 remaining in any 1-year period after assistance is

9 made available pursuant to paragraph (2), pref10 erence for such assistance shall be given to families

11 who qualify under a system of local preferences es12 tablished by the public housing agency in writing

13 and after public hearing to respond to local housing

14 needs and priorities, which may include—

15 ‘‘(A) assisting very low-income families

16 who either reside in transitional housing as17 sisted under title IV of the Stewart B. McKin18 ney Homeless Assistance Act or participate in

19 a program designed to provide public assistance

20 recipients with greater access to employment

21 and educational opportunities;

22 ‘‘(B) assisting families in accordance with

23 subsection (q)(1)(B);

24 ‘‘(C) assisting families identified by local

25 public agencies involved in providing for the
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1 welfare of children as having a lack of adequate

2 housing that is a primary factor in the immi3 nent placement of a child in foster care, or in

4 preventing the discharge of a child from foster

5 care and reunification with his or her family;

6 ‘‘(D) assisting youth, upon discharge from

7 foster care, in cases in which return to the fam8 ily or extended family or adoption is not avail9 able;

10 ‘‘(E) assisting veterans who are eligible

11 and have applied for assistance, will use the as12 sistance for a dwelling unit designed for the

13 handicapped, and, upon discharge or eligibility

14 for discharge from a hospital or nursing home,

15 have physical disability which, because of the

16 configuration of their homes, prevents them

17 from access to or use of their homes; and

18 ‘‘(F) achieving other objectives of national

19 housing policy as established by law.

20 ‘‘(4) TENANT SELECTION.—Each assistance

21 contract shall provide that the selection of tenants

22 for such dwelling units shall be the function of the

23 owner, subject to any provisions of the annual con24 tributions contract between the Secretary and the
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1 agency. The owner shall use tenant selection criteria,

2 which shall provide as follows:

3 ‘‘(A) PROHIBITION OF PERSONS ENGAGED

4 IN DRUG ACTIVITY.—The criteria shall prohibit

5 any individual or family evicted from housing

6 assisted under this Act by reason of drug-relat7 ed criminal activity from having a preference

8 under any provision of this paragraph for 3

9 years unless the evicted tenant successfully

10 completes a rehabilitation program approved by

11 the agency or owner. The agency or the owner

12 may waive the application of the preceding sen13 tence under standards established by the Sec14 retary, which shall provide for such waiver for

15 any member of a family of an individual prohib16 ited from tenancy under this subparagraph who

17 the agency or owner determines clearly did not

18 participate in and had no knowledge of such

19 criminal activity or when circumstances leading

20 to eviction no longer exist.

21 ‘‘(B) OTHER REQUIREMENTS FOR

22 PROJECT-BASED ASSISTANCE.—With respect

23 only to project-based assistance, the criteria

24 shall—
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1 ‘‘(i) be consistent with the purpose of

2 improving housing opportunities for very

3 low-income families;

4 ‘‘(ii) be reasonably related to program

5 eligibility and an applicant’s ability to per6 form the obligations of the assisted lease;

7 ‘‘(iii) be established in writing; and

8 ‘‘(iv) provide for the owner to prompt9 ly provide to any rejected applicant (I)

10 written notice of the grounds for the rejec11 tion, and (II) an opportunity to meet with

12 the decision maker to evaluate the validity

13 of the reasons for rejection and rectify any

14 erroneous decisions.

15 ‘‘(5) LEASE PROVISIONS.—Each assistance con16 tract shall provide that the lease between the tenant

17 of any unit and the owner—

18 ‘‘(A) shall be for at least one year or the

19 term of such assistance contract, whichever is

20 shorter;

21 ‘‘(B) shall contain other terms and condi22 tions specified by the Secretary, including provi23 sions meeting the requirements of paragraphs

24 (6), (7), and (8); and
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1 ‘‘(C) shall be in a standard form which is

2 used in the local housing market area by the

3 owner and which applies generally to tenants in

4 the property who are not assisted under this

5 section, together with any addendum necessary

6 to include in the lease the provisions required

7 under subparagraph (B).

8 ‘‘(6) GENERAL GROUNDS FOR TERMINATION OF

9 TENANCY.—Each assistance contract shall provide

10 that the owner shall not terminate the tenancy of

11 the tenant of any unit except for serious or repeated

12 violation of the terms and conditions of the lease, for

13 violation of applicable Federal, State, or local law, or

14 for other good cause. The withholding of assistance

15 payments for a dwelling unit pursuant to paragraph

16 (10) shall not constitute good cause for termination

17 of the tenancy of the tenant of the unit.

18 ‘‘(7) TERMINATION FOR ACTIVITY.—Each as19 sistance contract shall provide that any criminal ac20 tivity that threatens the health, safety, or right to

21 peaceful enjoyment of the premises by other tenants,

22 any activity that threatens the health, safety, or

23 right to peaceful enjoyment of their residences by

24 persons residing in the immediate vicinity of the

25 premises, or any drug-related criminal activity on or
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1 near such premises, engaged in by a tenant of any

2 unit, any member of the tenant’s household, or any

3 guest or other person under the tenant’s control,

4 shall be cause for termination of tenancy.

5 ‘‘(8) NOTICE OF TERMINATION OF TENANCY.—

6 Each assistance contract shall provide that before

7 terminating the tenancy of any tenant, the owner

8 shall provide written notice to the tenant specifying

9 the legal and factual grounds for such action, which

10 shall be provided in accordance with any require11 ments under State or local law.

12 ‘‘(9) MAINTENANCE AND REPLACEMENT.—

13 Each assistance contract shall provide that mainte14 nance and replacement (including redecoration) shall

15 be performed in accordance with the standard prac16 tice for the building concerned as established by the

17 owner and agreed to by the agency (or the Sec18 retary). With the approval of the Secretary, the pub19 lic housing agency administering a contract under

20 this section with respect to existing housing units

21 may exercise all management and maintenance re22 sponsibilities with respect to the units pursuant to a

23 contract between such agency and the owner of such

24 units.

25 ‘‘(10) HOUSING QUALITY STANDARDS.—
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1 ‘‘(A) INSPECTION.—The Secretary shall

2 require (with respect to any unit) that (A) the

3 public housing agency inspect the unit before

4 any assistance payment may be made to deter5 mine that it meets housing quality standards

6 for decent, safe, and sanitary housing estab7 lished by the Secretary for the purpose of this

8 section, and (B) the public housing agency

9 make annual or more frequent inspections dur10 ing the contract term. No assistance payment

11 may be made for a dwelling unit which fails to

12 meet such quality standards, unless any such

13 failure is promptly corrected by the owner and

14 the correction verified by the public housing

15 agency.

16 ‘‘(B) FAILURE TO CORRECT SERIOUS NON17 COMPLIANCE.—If any serious noncompliance

18 with such standards is not corrected within a

19 reasonable period of time after such notifica20 tion, the agency (or the Secretary) may with21 hold some or all of the assistance amounts

22 under this section with respect to the unit and

23 promptly—
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1 ‘‘(i) use such amounts to make nec2 essary repairs or contract to have such re3 pairs made;

4 ‘‘(ii) release any withheld amounts to

5 the owner after repairs are made by the

6 owner, in an amount not exceeding the

7 cost of the repairs; or

8 ‘‘(iii) release any withheld amounts to

9 the applicable State or local housing agen10 cy after repairs are made by such agency,

11 in an amount not exceeding the cost of the

12 repairs.

13 ‘‘(11) STANDARDS AND OBLIGATIONS OF RESI14 DENCY IN HOUSING RECEIVING PROJECT-BASED AS15 SISTANCE.—Each assistance contract for project16 based assistance under subsection (i) shall provide

17 that the owner shall ensure and maintain compliance

18 with subtitle C of title VI of the Housing and Com19 munity Development Act of 1992 and any regula20 tions issued under such subtitle.

21 ‘‘(12) SERVICE COORDINATORS.—In determin22 ing the amount of assistance provided under an as23 sistance contract for tenant-based assistance under

24 this paragraph, the Secretary may increase the

25 amount annually provided with respect to such
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1 project to provide for the costs of employing or oth2 erwise retaining the services of one or more service

3 coordinators under section 671 of the Housing and

4 Community Development Act of 1992 to coordinate

5 the provision of any services within the project for

6 residents of the project who are elderly or disabled

7 families.

8 ‘‘(13) OTHER.—Each assistance contract shall

9 provide that the agency and the owner shall carry

10 out such other appropriate terms and conditions as

11 may be mutually agreed to by the agency and owner.

12 ‘‘(i) PROJECT-BASED ASSISTANCE.—

13 ‘‘(1) AUTHORITY.—Pursuant to an annual con14 tributions contract entered into under subsection

15 (b), a public housing agency may enter into a assist16 ance contract providing for assistance payments

17 under this section that are attached to a structure.

18 ‘‘(2) REQUIREMENTS.—Any public housing

19 agency may approve project-based assistance under

20 this subsection with respect to any or all of the as21 sistance provided by the public housing agency if—

22 ‘‘(A) the owner agrees to rehabilitate the

23 structure other than with assistance under this

24 Act and the owner otherwise complies with the

25 requirements of this section; and
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1 ‘‘(B) in the case of any newly constructed

2 structure, the owner or prospective owner

3 agrees to construct the structure other than

4 with assistance under this Act and otherwise

5 complies with the requirements of this section.

6 ‘‘(3) LONG-TERM AFFORDABILITY.—

7 ‘‘(A) IN GENERAL.—In the case of an as8 sistance contract for project-based assistance

9 under this subsection, a public housing agency

10 shall enter into a contract with an owner, con11 tingent upon the future availability of appro12 priations for the purpose of renewing expiring

13 contracts for assistance payments as provided

14 in appropriations Acts, to extend the term of

15 the underlying assistance contract for such pe16 riod or periods as the Secretary determines to

17 be appropriate to achieve long-term afford18 ability of the housing. The contract shall obli19 gate the owner to have the extensions of the as20 sistance contract accepted by the owner and the

21 owner’s successors in interest.

22 ‘‘(B) TERM OF ASSISTANCE FOR LOW-IN23 COME HOUSING PRESERVATION.—The contract

24 for assistance may, at the option of the public

25 housing agency, have an initial term not exceed-
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1 ing 15 years for any assistance that is at2 tached—

3 ‘‘(i) to projects assisted under a State

4 program that permits the owner of the

5 projects to prepay a State assisted or sub6 sidized mortgage on the structure; and

7 ‘‘(ii) for the purpose of providing in8 centives to owners to preserve such

9 projects for occupancy by low- and mod10 erate-income families (for the period that

11 assistance under this subparagraph is

12 available) and assisting low-income tenants

13 to afford any increases in rent that may be

14 required to induce the owner to maintain

15 occupancy in the project by low- and mod16 erate-income tenants.

17 Any assistance provided to low-income tenants

18 in the manner described in this subparagraph

19 shall not be considered for purposes of the limi20 tation under subsection (h)(2) regarding the

21 percentage of families that may receive assist22 ance under this section who do not qualify for

23 preferences under such subsection.

24 ‘‘(4) SERVICE COORDINATORS.—In determining

25 the amount of assistance provided under an assist-
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1 ance contract for project-based assistance under this

2 subsection or a contract for assistance for housing

3 constructed or substantially rehabilitated pursuant

4 to assistance provided under section 8(b)(2) of this

5 Act (as such section existed before October 1, 1983),

6 the Secretary may increase the amount annually

7 provided with respect to such project to provide for

8 the costs of employing or otherwise retaining the

9 services of one or more service coordinators under

10 section 671 of the Housing and Community Devel11 opment Act of 1992 to coordinate the provision of

12 any services within the project for residents of the

13 project who are elderly or disabled families.

14 ‘‘(j) TERMINATION OF ASSISTANCE CONTRACTS.—

15 ‘‘(1) TERMINATION OF TENANT-BASED ASSIST16 ANCE.—

17 ‘‘(A) NOTICE BY OWNER.—Any owner ter18 minating any assistance contract under this sec19 tion for tenant-based assistance shall provide

20 written notice to the public housing agency and

21 the tenants involved of the proposed termi22 nation not less than 30 days before the termi23 nation of the contract. The notice shall specify

24 the date of the termination and the reasons for

25 the termination, with detail sufficient to enable
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1 the agency to evaluate whether the termination

2 is lawful.

3 ‘‘(B) REVIEW OF NOTICE BY PHA.—The

4 public housing agency shall review the notice

5 and issue a written finding of the legality of the

6 termination and the reasons for the termi7 nation. Within 5 days after issuance of the

8 findings, the owner shall provide written notice

9 to each tenant of the decision, together with the

10 written findings of the agency regarding the

11 termination.

12 ‘‘(2) TERMINATION OF PROJECT-BASED ASSIST13 ANCE CONTRACTS.—

14 ‘‘(A) NOTICE BY OWNER.—Any owner ter15 minating any assistance contract under sub16 section (i) for project-based assistance shall

17 provide written notice to the Secretary and the

18 tenants involved of the proposed termination

19 not less than one year before the termination of

20 the contract. The notice shall specify the date

21 of the termination and the reasons for the ter22 mination, with detail sufficient to enable the

23 Secretary to evaluate whether the termination

24 is lawful and whether additional actions can be

25 taken by the Secretary to avoid the termination.
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1 The notice shall include a statement that the

2 owner and the Secretary may agree to a re3 newal of the contract, thus avoiding the termi4 nation.

5 ‘‘(B) REVIEW OF NOTICE BY SEC6 RETARY.—The Secretary shall review the no7 tice, shall consider whether additional actions

8 can be taken by the Secretary to avoid the ter9 mination, and shall ensure a proper adjustment

10 of the contract rents for the project in compli11 ance with the requirements of subsection (d)

12 and subparagraph (C) of this subsection. The

13 Secretary shall issue a written finding of the le14 gality of the termination and the reasons for

15 the termination, including the actions consid16 ered or taken to avoid the termination. Within

17 30 days after issuance of the findings, the

18 owner shall provide written notice to each ten19 ant of the decision, together with the written

20 findings of the Secretary regarding the termi21 nation. The Secretary and the owner shall com22 plete the actions under this paragraph not later

23 than the expiration of the 9-month period be24 ginning upon the date that the owner provides
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1 written notice of termination under subpara2 graph (A).

3 ‘‘(3) ADJUSTMENT OF CONTRACT RENT.—If an

4 owner provides notice of proposed termination under

5 paragraph (1)(A) or (2)(A) and the contract rent is

6 less than the maximum monthly rent for units as7 sisted under this section, the Secretary shall adjust

8 the contract rent based on the maximum monthly

9 rent for units assisted under this section and the

10 value of the low-income housing.

11 ‘‘(4) NOTICE OF RENT INCREASES.—Each as12 sistance contract for assistance under this section

13 shall require the owner to notify tenants at least 90

14 days before the expiration of the contract of any

15 rent increase which may occur as a result of the ex16 piration of such contract.

17 ‘‘(5) DEFINITION OF TERMINATION.—For pur18 poses of this subsection, the term ‘termination’

19 means the expiration of the assistance contract or

20 the refusal of the owner to renew an assistance con21 tract, which shall include the termination of tenancy

22 by an owner for business reasons.

23 ‘‘(k) RENTAL ASSISTANCE FOR MANUFACTURED

24 HOUSING.—
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1 ‘‘(1) IN GENERAL.—The Secretary may enter

2 into contracts to make assistance payments under

3 this subsection to assist low-income families by mak4 ing rental assistance payments on behalf of any such

5 family that utilizes a manufactured home as its prin6 cipal place of residence. In carrying out this sub7 section, the Secretary may—

8 ‘‘(A) enter into annual contributions con9 tracts with public housing agencies pursuant to

10 which such agencies may enter into assistance

11 contracts to make such assistance payments to

12 the owners of such real property, if such owners

13 agree to make good faith efforts to ensure that

14 such property complies with local health and

15 safety standards for water and sewage systems;

16 or

17 ‘‘(B) enter into such contracts directly

18 with the owners of such real property, if such

19 owners agree to make good faith efforts to en20 sure that such property complies with local

21 health and safety standards for water and sew22 age systems.

23 ‘‘(2) USE OF ASSISTANCE.—Rental assistance

24 payments under this subsection may be made with

25 respect to the rental of the real property on which
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1 is located a manufactured home that is owned by a

2 low-income family or with respect to the rental by

3 such a family of a manufactured home and the real

4 property on which it is located.

5 ‘‘(3) ASSISTANCE FOR RENTAL OF MANUFAC6 TURED HOME SITE.—

7 ‘‘(A) MAXIMUM MONTHLY RENT.—A con8 tract entered into pursuant to this paragraph

9 shall establish the maximum monthly rent (in10 cluding maintenance and management charges)

11 that the owner is entitled to receive for the

12 space on which a manufactured home is located

13 and with respect to which assistance payments

14 are to be made. The maximum monthly rent

15 shall not exceed an amount approved or estab16 lished by the Secretary.

17 ‘‘(B) AMOUNT OF MONTHLY ASSISTANCE

18 PAYMENT.—The amount of any monthly assist19 ance payment with respect to any family that

20 rents real property that is assisted under this

21 paragraph, and on which is located a manufac22 tured home that is owned by such family shall

23 be the difference between the rent the family is

24 required to pay under section 3(a) and the sum

25 of—
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1 ‘‘(i) the monthly payment made by

2 such family to amortize the cost of pur3 chasing the manufactured home;

4 ‘‘(ii) the monthly utility payments

5 made by such family, subject to reasonable

6 limitations prescribed by the Secretary;

7 and

8 ‘‘(iii) the maximum monthly rent per9 mitted with respect to the real property

10 which is rented by such family for the pur11 pose of locating its manufactured home;

12 except that in no case may such assistance ex13 ceed the total amount of such maximum month14 ly rent.

15 ‘‘(4) ASSISTANCE FOR RENTAL OF MANUFAC16 TURED HOME AND SITE.—

17 ‘‘(A) MAXIMUM MONTHLY RENT.—Con18 tracts entered into pursuant to this paragraph

19 shall establish the maximum monthly rent per20 mitted with respect to the manufactured home

21 and the real property on which it is located and

22 with respect to which assistance payments are

23 to be made. The maximum monthly rent shall

24 not exceed an amount approved or established

25 by the Secretary.
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1 ‘‘(B) AMOUNT OF MONTHLY ASSISTANCE

2 PAYMENT.—The amount of any monthly assist3 ance payment with respect to any family that

4 rents a manufactured home and the real prop5 erty on which it is located and that is assisted

6 under this paragraph shall be the difference be7 tween the rent the family is required to pay

8 under section 3(a) and the sum of—

9 ‘‘(i) the monthly utility payments

10 made by such family, subject to reasonable

11 limitations prescribed by the Secretary;

12 and

13 ‘‘(ii) the maximum monthly rent per14 mitted with respect to the manufactured

15 home and real property on which it is lo16 cated.

17 ‘‘(5) ADJUSTMENT OF MAXIMUM MONTHLY

18 RENTS.—The provisions of paragraphs (3) through

19 (7) of subsection (d) shall apply to the adjustments

20 of maximum monthly rents under this subsection.

21 ‘‘(6) CONTRACT TERM.—Each contract entered

22 into under the subsection shall be for a term of not

23 less than one month and not more than 180 months;

24 except that in any case in which the manufactured

25 home park is substantially rehabilitated or newly
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1 constructed, such term may not be less than 240

2 months, nor more than the maximum term for a

3 manufactured home loan permitted under section

4 2(b) of the National Housing Act.

5 ‘‘(7) APPLICABILITY.—The Secretary may carry

6 out this subsection without regard to whether the

7 manufactured home park is existing, substantially

8 rehabilitated, or newly constructed.

9 ‘‘(8) LIMITATION ON SUBSTANTIALLY REHA10 BILITATED AND NEWLY CONSTRUCTED MANUFAC11 TURED HOME PARKS.—In the case of any substan12 tially rehabilitated or newly constructed manufac13 tured home park containing spaces with respect to

14 which assistance is made under this subsection, the

15 principal amount of the mortgage attributable to the

16 rental spaces within the park may not exceed an

17 amount established by the Secretary which is equal

18 to or less than the limitation for manufactured home

19 parks described in section 207(c)(3) of the National

20 Housing Act, and the Secretary may increase such

21 limitation in high cost areas in the manner described

22 in such section.

23 ‘‘(9) OTHER REQUIREMENTS.—The Secretary

24 may prescribe other terms and conditions necessary

25 for the purpose of carrying out this subsection and
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1 that are consistent with the purposes of this sub2 section.

3 ‘‘(l) SINGLE ROOM OCCUPANCY FACILITIES.—

4 ‘‘(1) AUTHORITY.—In making assistance avail5 able under this section and assistance under section

6 441 and part V of subtitle F of title IV of the Stew7 art B. McKinney Homeless Assistance Act, the Sec8 retary may provide assistance with respect to resi9 dential properties in which some or all of the dwell10 ing units do not contain bathroom or kitchen facili11 ties, if the unit of general local government in which

12 the property is located and the local public housing

13 agency certify to the Secretary that the property

14 complies with local health and safety standards.

15 ‘‘(2) WAIVER OF LIMITATIONS ON ASSISTANCE

16 FOR SINGLE PERSONS.—The Secretary may waive,

17 in appropriate cases, the limitation and preference in

18 section 3(b)(3)(A) with respect to the assistance

19 made available under this subsection.

20 ‘‘(m) HOUSING FOR ELDERLY AND DISABLED FAMI21 LIES.—

22 ‘‘(1) SHARED HOUSING.—To assist elderly fam23 ilies and disabled families (as defined in section

24 3(b)) who elect to live in a shared housing arrange25 ment in which they benefit as a result of sharing the
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1 facilities of a dwelling with others in a manner that

2 effectively and efficiently meets their housing needs

3 and thereby reduces their costs of housing, the Sec4 retary shall permit assistance provided under this

5 section to be used by such families in such arrange6 ments. In carrying out this subsection, the Secretary

7 shall issue minimum habitability standards for the

8 purpose of ensuring decent, safe, and sanitary hous9 ing for such families while taking into account the

10 special circumstances of shared housing.

11 ‘‘(2) PRIORITY FOR NONELDERLY DISABLED

12 FAMILIES.—In allocating assistance under this sec13 tion, a public housing agency that serves more than

14 one unit of general local government may, at the dis15 cretion of the agency, give priority to disabled fami16 lies that are not elderly families.

17 ‘‘(3) AUTHORITY TO PROVIDE PREFERENCES

18 FOR THE ELDERLY AND RESERVE UNITS FOR THE

19 DISABLED.—Notwithstanding subsection (h)(2) or

20 (3), an owner of a covered section 8 housing project

21 (as such term is defined in section 659 of the Hous22 ing and Community Development Act of 1992) may

23 give preference for occupancy of dwelling units in

24 the project, and reserve units for occupancy, in ac-
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1 cordance with subtitle D of title VI of the Housing

2 and Community Development Act of 1992.

3 ‘‘(n) ADMINISTRATIVE FEES.—

4 ‘‘(1) BASIC FEE FOR TENANT-BASED RENTAL

5 PROGRAM.—The Secretary shall establish a fee for

6 the costs incurred by a public housing agency in ad7 ministering the program for rental assistance under

8 this section, which shall be, together with other fees

9 authorized under this subsection, included in any

10 amounts provided to the public housing agency

11 under the annual contributions contract for the

12 agency. The amount of the fee for each month for

13 which a dwelling unit is covered by an assistance

14 contract shall be 8.2 percent of the fair market rent15 al established under subsection (e) for a 2-bedroom

16 existing rental dwelling unit in the market area of

17 the public housing agency. The Secretary may in18 crease the fee if necessary to reflect the higher costs

19 of administering small programs and programs oper20 ating over large geographic areas.

21 ‘‘(2) OTHER FEES.—The Secretary shall also

22 establish reasonable fees (as determined by the Sec23 retary) for—

24 ‘‘(A) the costs of preliminary expenses that

25 a public housing agency documents it has in-
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1 curred in connection with new allocations of as2 sistance under the program for rental assist3 ance under this section, which shall not exceed

4 $275 per unit assisted;

5 ‘‘(B) the costs incurred in assisting fami6 lies who experience difficulty (as determined by

7 the Secretary) in obtaining appropriate housing

8 under the program; and

9 ‘‘(C) extraordinary costs approved by the

10 Secretary.

11 ‘‘(3) BUDGET COMPLIANCE.—The Secretary

12 may establish or increase a fee in accordance with

13 this subsection only to such extent or in such

14 amounts as are provided in appropriation Acts.

15 ‘‘(4) FEES FOR 1995 AND 1996.—Notwithstand16 ing any other provision of this subsection, the basic

17 fee for the costs incurred by a public housing agency

18 in administering the program for rental assistance

19 under this section during fiscal years 1995 and 1996

20 shall be equal to the fee determined for fiscal year

21 1993 under section 11(a) of the HUD Demonstra22 tion Act of 1993.

23 ‘‘(o) PORTABILITY OF ASSISTANCE.—

24 ‘‘(1) AUTHORITY.—Except as provided in para25 graphs (3) and (4), any family on behalf of whom
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1 is provided tenant-based rental assistance under this

2 section and who moves to an eligible dwelling unit

3 located within the same State, or the same or a con4 tiguous metropolitan statistical area, as the metro5 politan statistical area within which is located the

6 area of jurisdiction of the public housing agency ap7 proving the assistance for the family, may use such

8 assistance to rent such eligible dwelling unit.

9 ‘‘(2) ADMINISTRATION.—The public housing

10 agency having authority with respect to the dwelling

11 unit to which a family moves under this subsection

12 shall have the responsibility of carrying out the pro13 visions of this section with respect to the family. If

14 no public housing agency has authority with respect

15 to the dwelling unit to which a family moves under

16 this subsection, the public housing agency approving

17 the assistance shall have such responsibility.

18 ‘‘(3) LOCAL OPTION TO ENSURE MINIMUM AREA

19 RESIDENCY.—At the discretion of a public housing

20 agency, the agency may provide that a family not

21 living within the jurisdiction of a public housing

22 agency at the time such family applies for or re23 ceives assistance from the agency may use tenant24 based rental assistance under this section to rent an

25 eligible dwelling unit that is not located within the
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1 area of jurisdiction of the agency approving the as2 sistance only if, before such use, the family has

3 rented and occupied an eligible dwelling unit within

4 such original jurisdiction for not less than 12 con5 secutive months using assistance provided by such

6 agency.

7 ‘‘(4) PROHIBITION OF PORTABILITY IN CASES

8 OF LEASE VIOLATION.—A family may not use ten9 ant-based rental assistance as provided in paragraph

10 (1) if the family has moved from a dwelling unit in

11 violation of the lease for the dwelling unit.

12 ‘‘(5) ALLOCATIONS DUE TO PORTABILITY.—In

13 determining the amount of rental assistance pro14 vided under an annual contributions contract for any

15 fiscal year, the Secretary shall consider any reduc16 tion in the number of resident families incurred by

17 a public housing agency in the preceding fiscal year

18 as a result of the provisions of this subsection.

19 ‘‘(6) PROVISION OF RENTAL ASSISTANCE FOR

20 PORTABILITY PURPOSES.—

21 ‘‘(A) AMOUNT.—To the extent amounts for

22 assistance under this section that are reserved

23 under section 213(d)(4) of the Housing and

24 Community Development Act of 1974 are avail25 able in a fiscal year, the Secretary shall provide
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1 rental assistance under this section in accord2 ance with this paragraph.

3 ‘‘(B) USE.—Amounts provided for use

4 under this paragraph shall be used only to pro5 vide a public housing agency with additional

6 amounts (as determined under subparagraph

7 (C)) to provide assistance for families on behalf

8 of whom assistance is provided under this sec9 tion by another public housing agency and who

10 move into an eligible dwelling unit located with11 in the area of jurisdiction of the agency to re12 ceive assistance under this paragraph.

13 ‘‘(C) REQUIREMENT.—Amounts provided

14 for use under this paragraph may be made

15 available to a public housing agency in a fiscal

16 year only if, during such fiscal year, the agency

17 has provided assistance pursuant to the first

18 sentence of paragraph (2) on behalf of families

19 who have moved into eligible dwelling units lo20 cated within the area of jurisdiction of the

21 agency in an amount not less than the lesser of

22 (i) 5 percent of the total amount received by

23 the agency for assistance under this section for

24 the fiscal year, or (ii) the amount necessary to

25 assist 25 percent of the average annual number
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1 of families previously assisted by the agency

2 who relinquish such assistance in a year (based

3 on the preceding 3 calendar years).

4 ‘‘(p) PROHIBITION OF DISCRIMINATION.—In select5 ing families for the provision of assistance under this sec6 tion, a public housing agency may not exclude or penalize

7 a family solely because the family resides in a public hous8 ing project.

9 ‘‘(q) SPECIAL USES OF RENTAL ASSISTANCE.—

10 ‘‘(1) ASSISTANCE FOR RESIDENTS OF REHA11 BILITATED PROJECTS.—In the case of low-income

12 families living in rental projects rehabilitated under

13 section 17 of this Act or section 533 of the Housing

14 Act of 1949 before rehabilitation—

15 ‘‘(A) tenant-based rental assistance under

16 this section shall be provided for families who

17 are required to move out of their dwelling units

18 because of the physical rehabilitation activities

19 or because of overcrowding;

20 ‘‘(B) at the discretion of each public hous21 ing agency, tenant-based rental assistance

22 under this section may be provided for families

23 who would have to pay more than 30 percent of

24 their adjusted income for rent after rehabilita-
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1 tion whether they choose to remain in, or to

2 move from, the project; and

3 ‘‘(C) the Secretary shall allocate tenant4 based rental assistance provided under this sec5 tion to ensure that sufficient resources are

6 available to address the physical or economic

7 displacement, or potential economic displace8 ment, of existing tenants pursuant to subpara9 graphs (A) and (B).

10 ‘‘(2) LOAN MANAGEMENT ASSISTANCE.—

11 ‘‘(A) IN GENERAL.—The Secretary may

12 provide assistance under this section through a

13 loan management program to assist financially

14 troubled multifamily residential housing

15 projects (i) subject to mortgages that are in16 sured under the National Housing Act or mort17 gages that have been assigned to the Secretary,

18 (ii) that were held by the Secretary and have

19 been sold, and (iii) that were assisted under

20 section 202 of the Housing Act of 1959.

21 ‘‘(B) ELIGIBILITY.—The eligibility of a

22 multifamily residential project for loan manage23 ment assistance under this paragraph shall be

24 determined without regard to whether the

25 project is subsidized or unsubsidized.
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1 ‘‘(C) EXTENSION OF CONTRACT.—The

2 Secretary shall extend any expiring contract en3 tered into under this section for loan manage4 ment assistance or execute a new contract for

5 project-based loan management assistance, if

6 the owner agrees to continue providing housing

7 for low-income families during the term of the

8 contract.

9 ‘‘(3) ASSISTANCE FOR FAMILY UNIFICATION.—

10 ‘‘(A) IN GENERAL.—The Secretary may

11 provide assistance under this section to be used

12 only in connection with tenant-based assistance

13 under this section on behalf of any family (i)

14 who is otherwise eligible for such assistance,

15 and (ii) who the public child welfare agency for

16 the jurisdiction has certified is a family for

17 whom the lack of adequate housing is a primary

18 factor in the imminent placement of the fami19 ly’s child or children in out-of-home care or the

20 delayed discharge of a child or children to the

21 family from out-of-home care.

22 ‘‘(B) ALLOCATION.—Any amounts made

23 available under this paragraph shall be allo24 cated by the Secretary through a national com25 petition among applicants based on dem-
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1 onstrated need for assistance under this para2 graph. To be considered for assistance, an ap3 plicant shall submit to the Secretary a written

4 proposal containing a report from the public

5 child welfare agency serving the jurisdiction of

6 the applicant that describes how a lack of ade7 quate housing in the jurisdiction is resulting in

8 the initial or prolonged separation of children

9 from their families, and how the applicant will

10 coordinate with the public child welfare agency

11 to identify eligible families and provide the fam12 ilies with assistance under this paragraph.

13 ‘‘(C) DEFINITIONS.—For purposes of this

14 paragraph:

15 ‘‘(i) APPLICANT.—The term ‘appli16 cant’ means a public housing agency.

17 ‘‘(ii) PUBLIC CHILD WELFARE AGEN18 CY.—The term ‘public child welfare agen19 cy’ means the public agency responsible

20 under applicable State law for determining

21 that a child is at imminent risk of place22 ment in out-of-home care or that a child in

23 out-of-home care under the supervision of

24 the public agency may be returned to his

25 or her family.
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1 ‘‘(D) REPORT.—The Secretary shall in2 clude in each annual report of the Secretary

3 under section 8 of the Department of Housing

4 and Urban Development Act information speci5 fying the number of families assisted pursuant

6 to this paragraph during the preceding 2-year

7 period and the number of communities in which

8 such assistance was used, describing the extent

9 of cooperation between public housing agencies

10 and public child welfare agencies in timely iden11 tifying families for which such assistance is ap12 propriate and in providing such assistance, and

13 describing any impediments to providing such

14 assistance.

15 ‘‘(r) RENEWAL OF EXPIRING CONTRACTS.—

16 ‘‘(1) 5-YEAR PLAN.—Not later than 30 days

17 after the beginning of each fiscal year, the Secretary

18 shall publish in the Federal Register a plan for re19 ducing, to the extent feasible, year-to-year fluctua20 tions in the levels of budget authority that will be

21 required over the succeeding 5-year period to renew

22 expiring assistance contracts entered into under this

23 section after the enactment of the Housing and

24 Community Development Act of 1974. To the extent

25 necessary to carry out such plan and to the extent
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1 approved in appropriations Acts, the Secretary is au2 thorized to enter into annual contributions contracts

3 with terms of less than 60 months.

4 ‘‘(2) NEW CONSTRUCTION AND SUBSTANTIAL

5 REHABILITATION PROJECTS.—Subject only to the

6 availability of budget authority to carry out this

7 paragraph and to the absence of owners agreeing to

8 enter into new contracts, the Secretary shall enter

9 into new contracts under subtitle D of title I of the

10 Housing and Community Development Act of 1994

11 to provide project-based assistance for qualified

12 housing (as such term is defined in section 163 of

13 such subtitle) to owners of such housing.

14 ‘‘(s) GENERAL PROVISIONS.—

15 ‘‘(1) PLEDGING ASSISTANCE CONTRACTS AS SE16 CURITY.—An owner may pledge, or offer as security

17 for any loan or obligation, an assistance contract en18 tered into pursuant to this section, but only if such

19 security is in connection with a project constructed

20 or rehabilitated pursuant to authority under this

21 section and the terms of the financing or any refi22 nancing have been approved by the Secretary.

23 ‘‘(2) HOUSING COUNSELING FOR RENTAL

24 CHOICE.—Each public housing agency that provides

25 rental housing assistance under this section on be-
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1 half of low-income families shall notify such assisted

2 families of the availability of any entity in the juris3 diction of the agency providing rental housing coun4 seling under section 106(a)(4) of the Housing and

5 Urban Development Act of 1968.

6 ‘‘(t) DEFINITIONS.—For purposes of this section:

7 ‘‘(1) ANNUAL CONTRIBUTIONS CONTRACT.—

8 The term ‘annual contributions contract’ means a

9 contract under subsection (b) between the Secretary

10 and a public housing agency to provide amounts for

11 rental assistance payments under this section to the

12 public housing agency.

13 ‘‘(2) ASSISTANCE CONTRACT.—The term ‘as14 sistance contract’ means a contract under subsection

15 (c) between a public housing agency (or the Sec16 retary) and an owner to make rental assistance pay17 ments under this section to the owner.

18 ‘‘(3) DEBT SERVICE.—The term ‘debt service’

19 means the required payments for principal and in20 terest made with respect to a mortgage secured by

21 housing assisted under this Act.

22 ‘‘(4) DRUG-RELATED CRIMINAL ACTIVITY.—The

23 term ‘drug-related criminal activity’ means the ille24 gal manufacture, sale, distribution, use, or posses25 sion with intent to manufacture, sell, distribute, or
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1 use, of a controlled substance (as such term is de2 fined in section 102 of the Controlled Substances

3 Act).

4 ‘‘(5) OWNER.—The term ‘owner’ means any

5 private person or entity, including a cooperative, an

6 agency of the Federal Government, or a public hous7 ing agency, having the legal right to lease or sub8 lease dwelling units, and such term shall include any

9 principals, general partners, primary shareholders,

10 and other similar participants in any entity owning

11 a multifamily housing project (as such term is de12 fined in subsection (p)(3)), as well as the entity

13 itself.

14 ‘‘(6) PARTICIPATING JURISDICTION.—The term

15 ‘participating jurisdiction’ means a State or unit of

16 general local government designated by the Sec17 retary to be a participating jurisdiction under title

18 II of the Cranston-Gonzalez National Affordable

19 Housing Act.

20 ‘‘(7) PROJECT-BASED ASSISTANCE.—The term

21 ‘project-based assistance’ means rental assistance

22 under this section that is attached to a structure

23 pursuant to subsection (i).

24 ‘‘(8) RENT.—The terms ‘rent’ and ‘rental’ in25 clude, with respect to members of a cooperative, the
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1 charges under the occupancy agreements between

2 such members and the cooperative.

3 ‘‘(9) RENTAL ASSISTANCE.—The term ‘rental

4 assistance’ means assistance provided under this sec5 tion on behalf of low-income families for the rental

6 of a dwelling unit.

7 ‘‘(10) TENANT-BASED ASSISTANCE.—The term

8 ‘tenant-based assistance’ means rental assistance

9 under this section that is not project-based assist10 ance.’’.

11 (b) CONFORMING AMENDMENTS.—

12 (1) UNITED STATES HOUSING ACT OF 1937.—

13 The United States Housing Act of 1937 is amend14 ed—

15 (A) in section 3(a)(1) (42 U.S.C.

16 1437a(a)(1)), by striking ‘‘(other than a family

17 assisted under section 8(o) or (y) or paying rent

18 under section 8(c)(3)(B))’’ and inserting

19 ‘‘(other than a family assisted under section

20 8(t) or paying rent under section 8(f)(2))’’;

21 (B) in section 5 (42 U.S.C. 1437c)—

22 (i) in subsection (c)(7)(C), by striking

23 ‘‘section 8(b)(1)’’ each place it appears and

24 inserting ‘‘section 8’’;
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1 (ii) in subsection (j)(1)(B)(i), by strik2 ing ‘‘section 8(o)(6)’’ and inserting ‘‘sec3 tion 8’’; and

4 (iii) in subsection (j)(1)(D), by strik5 ing ‘‘subsection (b) or (o) of’’;

6 (C) in section 6(p)(1)(B) (42 U.S.C.

7 1437d(p)(1)(B)), by striking ‘‘holding certifi8 cates and vouchers’’ and inserting ‘‘eligible and

9 approved for assistance’’;

10 (D) in section 21(b)(3)—

11 (i) by striking ‘‘a certificate under

12 section 8(b)(1) or a housing voucher under

13 section 8(o)’’ and inserting ‘‘tenant-based

14 assistance under section 8’’; and

15 (ii) by striking ‘‘such certificate’’ and

16 inserting ‘‘such assistance’’;

17 (E) in section 23—

18 (i) in subsection (a), by striking ‘‘as19 sistance under the certificate and voucher

20 programs’’ and inserting ‘‘tenant-based as21 sistance’’;

22 (ii) in subsection (b)—

23 (I) in paragraph (1), by striking

24 ‘‘assistance under subsection (b) or
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1 (o) of’’ and inserting ‘‘tenant-based

2 assistance under’’; and

3 (II) in paragraph (4), by striking

4 ‘‘Assistance under the certificate or

5 voucher programs’’ and inserting

6 ‘‘Tenant-based assistance’’;

7 (iii) in subsection (c)(1), by striking

8 ‘‘assistance under the certificate and

9 voucher programs of’’ and inserting ‘‘ten10 ant-based assistance from’’;

11 (iv) in subsection (d)(3) (as added by

12 section 185(b) of the Housing and Com13 munity Development Act of 1992 (Public

14 Law 102–550; 106 Stat. 3747)), by strik15 ing ‘‘section 8(y)’’ and inserting ‘‘section

16 8(t)’’; and

17 (v) in subsection (h)(1)—

18 (I) by striking ‘‘section 8(q) for

19 the costs incurred in administering

20 the provision of certificate and vouch21 er’’ and inserting ‘‘section 8(n) for the

22 costs incurred in administering the

23 provision of tenant-based’’; and
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1 (II) by striking ‘‘section

2 8(q)(2)(A)(i)’’ and inserting ‘‘section

3 8(n)(2)(A)’’; and

4 (G) in section 304(g)(3) (42 U.S.C.

5 1437aaa–3(g)(3)), by striking ‘‘section 8(b)(2)

6 and section 8(o)(9)’’ and inserting ‘‘section 8’’.

7 (2) ALLOCATION OF ASSISTED HOUSING

8 FUNDS.—Section 213 of the Housing and Commu9 nity Development Act of 1974 (42 U.S.C. 1439) is

10 amended—

11 (A) in subsection (d)—

12 (i) in paragraph (1)(A)(ii), by striking

13 ‘‘section 8(b)(1)’’ each place it appears and

14 inserting ‘‘section 8’’; and

15 (ii) in paragraph (2), by striking ‘‘sec16 tion 8(d)’’ and inserting ‘‘section 8(i)’’;

17 (B) in subsection (e), by striking ‘‘section

18 8(b)(1)’’ and inserting ‘‘section 8’’.

19 (3) SUPPORTIVE HOUSING FOR ELDERLY FAMI20 LIES.—Section 801(d)(1)(B) of the Cranston-Gon21 zalez National Affordable Housing Act (12 U.S.C.

22 1701q note) is amended by striking ‘‘section

23 8(c)(1)’’ and inserting ‘‘section 8(e)’’.
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1 (4) ELDERLY INDEPENDENCE.—Section 803 of

2 the Cranston-Gonzalez National Affordable Housing

3 Act (42 U.S.C. 8012) is amended—

4 (A) in subsection (a), by striking ‘‘housing

5 certificates and vouchers’’ and inserting ‘‘assist6 ance under section 8 of the United States

7 Housing Act of 1937’’; and

8 (B) in subsection (b)—

9 (i) in the 1st sentence, by striking

10 ‘‘not more than 1,500 incremental vouch11 ers and certificates under sections 8(b) and

12 8(o) of the United States Housing Act of

13 1937’’ and inserting ‘‘incremental assist14 ance under section 8 of the United States

15 Housing Act of 1937 on behalf of not more

16 than 1,500 frail elderly persons’’;

17 (ii) in the 3rd sentence, by striking

18 ‘‘the housing certificate or voucher pro19 gram of the agency’’ and inserting ‘‘the

20 agency’s program for assistance under

21 such section 8’’; and

22 (iii) in the last sentence, by striking

23 ‘‘sections 8(b) and 8(o)’’ and inserting

24 ‘‘section 8’’.
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1 (5) REVISED CONGREGATE HOUSING SERV2 ICES.—Section 802(k)(6)(B) of the Cranston-Gon3 zalez National Affordable Housing Act (42 U.S.C.

4 8011(k)(6)(B)) is amended by striking ‘‘subsection

5 (d)(2)’’ and inserting ‘‘subsection (i)’’.

6 (6) HOUSING FOR PERSONS WITH AIDS.—Sub7 title D of title VIII of the Cranston-Gonzalez Na8 tional Affordable Housing Act is amended—

9 (A) in section 859(a)(2) (42 U.S.C.

10 12908(a)(2)) by striking ‘‘section 8(p)’’ each

11 place it appears and inserting ‘‘section

12 8(m)(1)’’; and

13 (B) in section 860(a) (42 U.S.C.

14 12909(a)), by striking ‘‘section 8(n)’’ and in15 serting ‘‘section 8(l)’’.

16 (7) MCKINNEY ACT.—Section 441(b) of the

17 Stewart B. McKinney Homeless Assistance Act (42

18 U.S.C. 11401(b)) is amended—

19 (A) by striking ‘‘section 8(n)’’ and insert20 ing ‘‘section 8(l)’’; and

21 (B) by adding at the end the following new

22 sentence: ‘‘Moderate rehabilitation under this

23 section shall be carried out in the manner pro24 vided under the provisions of section 8(e) of the

25 United States Housing Act of 1937, as such
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1 section was in effect (pursuant to section

2 289(b)(2) of the Cranston-Gonzalez National

3 Affordable Housing Act) immediately before the

4 enactment of the Housing and Community De5 velopment Act of 1994.’’.

6 (8) FLEXIBLE SUBSIDY PROGRAM.—Section

7 201 of the Housing and Community Development

8 Amendments of 1978 (12 U.S.C. 1715z–1a) is

9 amended—

10 (A) in subsection (m)(2)(A), by striking

11 ‘‘section 8(b)(1)’’ and inserting ‘‘section 8’’;

12 and

13 (B) in subsection (o), by striking ‘‘section

14 8(v)’’ and inserting ‘‘section 8(q)(2)’’.

15 (9) HUD-OWNED PROJECTS.—Section 203 of

16 the Housing and Community Development Amend17 ments of 1978 (12 U.S.C. 1701z–11) is amended—

18 (A) in subsection (e)(1)(D)—

19 (i) in clause (i)(IV), by inserting be20 fore the semicolon the following: ‘‘, as such

21 section was in effect (pursuant to section

22 289(b)(2) of the Cranston-Gonzalez Na23 tional Affordable Housing Act) imme24 diately before the enactment of the Hous-
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1 ing and Community Development Act of

2 1994’’; and

3 (ii) in clause (ii), by striking ‘‘section

4 8(b)’’ and inserting ‘‘section 8’’;

5 (B) in subsection (g)(2), by striking ‘‘,

6 8(d)(1)(A)(i), and 8(o)(3)(B)’’ and inserting ‘‘

7 and 8(h)(2)(iii)’’; and

8 (C) in subsection (h)(2), by striking ‘‘sec9 tion 8(c)’’ and inserting ‘‘section 8(e)’’.

10 (10) HOUSING ACCESS.—Section 204 of the

11 Housing and Community Development Amendments

12 of 1978 (12 U.S.C. 1701z–12) is amended by strik13 ing ‘‘to a holder of a certificate of eligibility under

14 that section solely because of such prospective ten15 ant’s status as a certificate holder’’ and inserting

16 ‘‘to a family that is approved for assistance under

17 such section solely because of such family’s status as

18 assisted under such section’’.

19 (11) ELIHPA OF 1987.—The references in sec20 tions 225(b)(3)(D), 226(a)(3), and 228(a)(4) of the

21 Emergency Low Income Housing Preservation Act

22 of 1987 (as in effect immediately before the enact23 ment of the Cranston-Gonzalez National Affordable

24 Housing Act) to section 8(b) of the United States

25 Housing Act of 1937 shall be considered to refer to
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1 section 8(e) of the United States Housing Act of

2 1937 (as amended by the Housing and Community

3 Development Act of 1994).

4 (12) LIHPRHA OF 1990.—Title II of the Hous5 ing and Community Development Act of 1987 (42

6 U.S.C. 4101 et seq.) is amended—

7 (A) in section 215(a)—

8 (i) in paragraph (1), by striking ‘‘sec9 tion 8(c)’’ and inserting ‘‘section 8(e)’’;

10 and

11 (ii) in paragraph (2), by striking ‘‘sec12 tion 8(c)(1)’’ and inserting ‘‘section

13 8(e)(1)’’;

14 (B) in section 220(d)(3)(B), by striking

15 ‘‘section 8(c)’’ and inserting ‘‘section 8(e)’’;

16 (C) in section 222—

17 (i) in subsection (a)(2)(D), by striking

18 ‘‘section 8(c)’’ and inserting ‘‘section

19 8(e)’’; and

20 (ii) in subsection (d)(2)(C)(i), by

21 striking ‘‘sections 8(b) and 8(o) of the

22 United States Housing Act of 1937 (other

23 than project-based assistance attached to

24 the housing)’’ and inserting ‘‘tenant-based
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1 assistance under section 8 of the United

2 States Housing Act of 1937’’;

3 (D) in section 223(a), by striking ‘‘the cer4 tificate and voucher programs under sections

5 8(b) and 8(o)’’ and inserting ‘‘section 8’’; and

6 (E) in section 226(b)(6)(B), by striking

7 ‘‘sections 8(d)(1)(A) and 8(o)(3)’’ and inserting

8 ‘‘section 8(h)(2)’’.

9 (13) DISASTER RELIEF.—

10 (A) TENANT-BASED ASSISTANCE.—Section

11 931 of the Cranston-Gonzalez National Afford12 able Housing Act (42 U.S.C. 1437c note) is

13 amended—

14 (i) in the section heading, by striking

15 ‘‘CERTIFICATES AND VOUCHERS’’ and

16 inserting ‘‘TENANT-BASED ASSIST17 ANCE’’; and

18 (ii) by striking ‘‘assistance under the

19 certificate and voucher programs under

20 sections 8 (b) and (o)’’ and inserting ‘‘ten21 ant-based assistance under section 8’’.

22 (B) MODERATE REHABILITATION ASSIST23 ANCE.—Section 932 of the Cranston-Gonzalez

24 National Affordable Housing Act (42 U.S.C.

25 1437c note) is amended by inserting after
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1 ‘‘such Act’’ the following: ‘‘, as such section was

2 in effect (pursuant to section 289(b)(2) of the

3 Cranston-Gonzalez National Affordable Hous4 ing Act) immediately before the enactment of

5 the Housing and Community Development Act

6 of 1994,’’.

7 (14) PUBLIC HOUSING MINCS DEMONSTRA8 TION.—Section 522(f)(6)(B) of the Cranston-Gon9 zalez National Affordable Housing Act (42 U.S.C.

10 1437f note) is amended—

11 (A) by striking ‘‘assistance under section

12 8(b)’’ and inserting ‘‘tenant-based assistance

13 under section 8’’; and

14 (B) by striking ‘‘section 8(d)(1)(A)(i)’’ and

15 inserting ‘‘section 8(h)(2)’’.

16 (15) PUBLIC HOUSING NEW CONSTRUCTION IN17 COME ELIGIBILITY.—Section 545(c)(2) of the Cran18 ston-Gonzalez National Affordable Housing Act (42

19 U.S.C. 1437f note) is amended by striking ‘‘section

20 8(d)(1)(A)(ii)’’ and inserting ‘‘section 8(h)(3)’’.

21 (16) SECTION 8 EXCESSIVE RENT BURDEN

22 DATA.—Section 550(b) of the Cranston-Gonzalez

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

24 note) is amended—
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1 (A) in paragraph (1), by striking ‘‘under

2 the certificate and voucher programs estab3 lished’’ and inserting ‘‘with tenant-based assist4 ance’’;

5 (B) in the first sentence of paragraph (2),

6 by striking ‘‘, for each’’ and all that follows

7 through ‘‘participating in the program’’ and in8 serting ‘‘the percentage of families receiving

9 tenant-based assistance’’; and

10 (C) in paragraph (3), by striking ‘‘assist11 ance under the certicate or voucher program’’

12 and inserting ‘‘tenant-based assistance under

13 section 8 of the United States Housing Act of

14 1937’’.

15 (17) RURAL HOUSING PRESERVATION

16 GRANTS.—Section 533(a) of the Housing Act of

17 1949 (42 U.S.C. 1490m) is amended by striking

18 ‘‘assistance payments as provided by section 8(o)’’

19 and inserting ‘‘tenant-based assistance payments

20 under section 8 (including assistance in accordance

21 with section 8(f)(2)’’.

22 (18) FEDERALLY ASSISTED HOUSING OCCU23 PANCY STANDARDS.—Section 643(b)(2) of the Hous24 ing and Community Development Act of 1992 (42
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1 U.S.C. 13603(b)(2)) is amended by striking ‘‘section

2 8(d)(1)’’ and inserting ‘‘section 8(h)’’.

3 (19) RESERVATION OF SECTION 8 UNITS FOR

4 DISABLED FAMILIES.—Section 655 of the Housing

5 and Community Development Act of 1992 (42

6 U.S.C. 13615) is amended by striking ‘‘section

7 8(d)(1)(A)(i) of the United States Housing Act of

8 1937 and the first sentence of section 8(o)(3)(B) of

9 such Act’’ and inserting ‘‘section 8(h)(2) of the

10 United States Housing Act of 1937’’.

11 (20) GAO REPORT ON LEAD EXPOSURE.—Sec12 tion 1056(a) of the Housing and Community Devel13 opment Act of 1992 (42 U.S.C. 4855) is amended

14 by striking ‘‘subsections (b) and (o) of’’.

15 (21) NATIONAL HOUSING ACT.—The National

16 Housing Act is amended—

17 (A) in section 203(v) (12 U.S.C. 1709(v)),

18 as added by section 185(c)(1)(B) of the Hous19 ing and Community Development Act of 1992,

20 by striking ‘‘section 8(y)’’ and inserting ‘‘sec21 tion 8(t)’’; and

22 (B) in section 236(f)(5)(A)(i) (12 U.S.C.

23 1715z–1(f)(5)(A)(i)), by striking ‘‘section 8(c)’’

24 and inserting ‘‘section 8(e)’’.
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1 (c) APPLICABILITY.—The amendments under this

2 section are made on the date of the enactment of this Act,

3 but shall apply on and after October 1, 1996, only to as4 sistance under section 8 of the United States Housing Act

5 of 1937 provided pursuant to an assistance contract en6 tered into or renewed on or after such date. Any such as7 sistance provided pursuant to an assistance contract en8 tered into before such date shall be subject to the provi9 sions of such section 8 as in effect immediately before the

10 enactment of this Act or otherwise applicable to such as11 sistance.

12 (d) TRANSITION.—

13 (1) CONVERSION.—The Secretary may provide

14 for the conversion of assistance under the certificate

15 and voucher programs, as such programs existed be16 fore the date of the enactment of this Act, to the

17 certificate program established under the amend18 ments under this section.

19 (2) CONTINUATION OF ASSISTANCE.—The Sec20 retary of Housing and Urban Development shall

21 take any action necessary to ensure that the provi22 sion of assistance under section 8 of the United

23 States Housing Act of 1937 to families receiving as24 sistance under such section on the date of the enact-
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1 ment of this Act is not interrupted because of the

2 amendments under this section.

3 (e) REGULATIONS.—The Secretary shall implement

4 the amendments under this section by regulation issued

5 after notice and opportunity for public comment.

6 (f) HOUSING CONSELING FOR HOMEOWNERSHIP AND

7 RENTAL CHOICE.—

8 (1) RENTAL COUNSELING.—Section 106(a) of

9 the Housing and Urban Development Act of 1968

10 (12 U.S.C. 1701x(a)) is amended by adding at the

11 end the following new paragraph:

12 ‘‘(4) RENTAL COUNSELING.—The Secretary of Hous13 ing and Urban Development may contract with national,

14 State, or community-based entities (including local com15 munity action agencies receiving assistance under the

16 Community Services Block Grant Act), and consortia of

17 such entities, and local public or private organizations (in18 cluding public housing agencies) to carry out counseling

19 activities for current and prospective residents of public

20 housing and housing assisted under section 8 of the

21 United States Housing Act of 1937. Contractors shall be

22 selected on a competitive basis, in accordance with selec23 tion criteria determined by the Secretary. The contractors

24 shall carry activities prescribed by the Secretary. Each en25 tity receiving assistance pursuant to this paragraph shall
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1 make counseling and assistance under this paragraph

2 available to low-income families who are current or pro3 spective residents of public housing and housing assisted

4 under section 8 of the United States Housing Act of 1937,

5 including counseling and assistance regarding housing op6 portunities in the area of jurisdiction of the public housing

7 agency involved and assistance in obtaining new rental

8 residences in areas within such jurisdiction not having

9 high concentrations of persons living in poverty.’’.

10 (2) NOTIFICATION.—Subparagraph (C) of sec11 tion 106(c)(5) of the Housing and Urban Develop12 ment Act of 1968 (12 U.S.C. 1701x(c)(5)(C)) is

13 amended to read as follows:

14 ‘‘(C) NOTIFICATION.—Notification under

15 subparagraph (A) shall not be required with re16 spect to any loan for which the eligible home17 owner pays the amount overdue before the expi18 ration of the 45-day period under subparagraph

19 (B)(ii).’’.

20 SEC. 122. INCENTIVES TO REFINANCE HIGH INTEREST

21 MORTGAGES FOR SECTION 8 PROJECTS.

22 Section 8 of the United States Housing Act of 1937

23 (42 U.S.C. 1437f), as amended by the preceding provi24 sions of this Act, is further amended by adding at the end

25 the following new subsection:
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1 ‘‘(v) REFINANCING INCENTIVE.—For a project that

2 (1) was constructed, substantially rehabilitated, or mod3 erately rehabilitated under this section, (2) is subject to

4 an assistance contract under this section, and (3) was sub5 ject to a mortgage that has been refinanced under section

6 223(a)(7) or section 223(f) of the National Housing Act

7 to lower the periodic debt service payments of the owner,

8 the Secretary may pay the owner the amount of the up

9 front costs to the owner of refinancing. The Secretary may

10 make such payments only from savings in the amount of

11 assistance payments, as determined by the Secretary on

12 a project-by-project basis and after application of amounts

13 in accordance with section 1012 of the Stewart B. McKin14 ney Homeless Assistance Amendments Act of 1988, that

15 result from the refinancing during the first year after the

16 refinancing.’’.

17 SEC. 123. USE OF EXCESS RESIDUAL RECEIPTS.

18 (a) IN GENERAL.—The Secretary of Housing and

19 Urban Development shall, in conjunction with State hous20 ing agencies, under which the Secretary, at the request

21 of owners of qualified projects, make amounts in the ac22 count for residual receipts or excess amounts for the quali23 fied projects available for use to expand the supply of af24 fordable housing.
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1 (b) LIMITATION.—The Secretary may not make any

2 amounts available for use under this section from the ac3 count of a qualified project for residual receipts or excess

4 amounts unless the amount remaining in the account, to5 gether with replacement reserves for the project, is suffi6 cient (in the determination of the Secretary) to maintain,

7 manage, and preserve the project as affordable housing.

8 (c) QUALIFIED PROJECTS.—For purposes of this sec9 tion, the term ‘‘qualified project’’ means a housing

10 project—

11 (1) assisted with project-based assistance under

12 section 8 of the United States Housing Act of 1937;

13 or

14 (2) constructed or substantially rehabilitated

15 pursuant to assistance provided under section

16 8(b)(2) of the United States Housing Act of 1937,

17 as such section existed before November 30, 1983.

18 SEC. 124. RENEWAL OF EXPIRING SECTION 8 CONTRACTS.

19 (a) REQUIREMENT.—Subject only to the availability

20 of budget authority to carry out this section, not later than

21 October 1, 1995, the Secretary of Housing and Urban De22 velopment shall make an offer to the owner of each hous23 ing project assisted under an expiring contract to extend

24 the term of the expiring contract for 24 months beyond

25 the date of the expiration of the contract.
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1 (b) TERMS OF EXTENSION.—Except for terms or

2 conditions relating to the duration of the contract, the

3 terms and conditions under the extension provided pursu4 ant to this subsection of any expiring contract shall be

5 identical to the terms and conditions under the expiring

6 contract.

7 (c) DEFINITION OF EXPIRING CONTRACT.—For pur8 poses of this section, the term ‘‘expiring contract’’ means

9 a contract for assistance pursuant to section 8(b)(2) of

10 the United States Housing Act of 1937 (as such section

11 existed before October 1, 1983) having a term that expires

12 before October 1, 1996.

13 (d) DISPLACEMENT ASSISTANCE.—The Secretary of

14 Housing and Urban Development may make available to

15 tenants residing in units covered by an expiring contract

16 that is not extended pursuant to this section either—

17 (1) tenant-based assistance under section 8 of

18 the United States Housing Act of 1937; or

19 (2) a unit with respect to which project-based

20 assistance is provided under section 8 of the United

21 States Housing Act of 1937.

22 (e) AUTHORIZATION OF APPROPRIATIONS.—There

23 are authorized to be appropriated such sums as may be

24 necessary to carry out this section.
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1 SEC. 125. TREATMENT OF CERTAIN PROJECTS.

2 (a) CONVERSION OF SECTION 23 PROJECT.—From

3 amounts available for the conversion of the Tamaqua

4 Highrise project in the Borough of Tamaqua, Pennsylva5 nia, from a leased housing contract under section 23 of

6 the United States Housing Act of 1937 to tenant-based

7 assistance under section 8 of such Act, the Secretary of

8 Housing and Urban Development shall, to the extent such

9 amounts are made available in appropriation Acts, enter

10 into an obligation for the conversion of the project to a

11 project-based rental assistance contract under section 8 of

12 such Act, notwithstanding the requirement for rehabilita13 tion or the percentage limitations under section 8(d)(2)

14 of such Act (as in effect before the date of the enactment

15 of this Act) and subparagraph (A) of section 8(i)(2) of

16 such Act (as amended by section 143 of this Act).

17 (b) COMPLIANCE WITH REHABILITATION REQUIRE18 MENT.—Rehabilitation activities undertaken by E.T.C.

19 Enterprises in connection with 16 scattered-site dwelling

20 units that were rehabilitated to provide housing for low21 income families and are located in Perth Amboy, New Jer22 sey, and rehabilitation activities undertaken by Pennrose

23 Properties in connection with 40 dwelling units for senior

24 citizens in the Providence Square development located in

25 New Brunswick, New Jersey, are hereby deemed to have

26 been conducted pursuant to the approval of and an agree-
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1 ment with the Secretary of Housing and Urban Develop2 ment under clauses (i) and (ii) of the third sentence of

3 section 8(d)(2)(A) of the United States Housing Act of

4 1937 (as in effect before the date of the enactment of this

5 Act) and subparagraph (A) of section 8(i)(2) of such Act

6 (as amended by section 143 of this Act).

7 Subtitle C—Homeownership Programs

8 SEC. 131. NATIONAL HOMEOWNERSHIP FUND.

9 Subtitle A of title III of the Cranston-Gonzalez Na10 tional Affordable Housing Act (42 U.S.C. 12701 note) is

11 amended to read as follows:

12 ‘‘Subtitle A—National Homeownership Fund

13 ‘‘SEC. 301. SHORT TITLE.

14 ‘‘This subtitle may be cited as the ‘National Home15 ownership Fund Act’.

16 ‘‘SEC. 302. AUTHORITY.

17 ‘‘The Secretary of Housing and Urban Development

18 may make grants under this subtitle to States (including

19 State housing finance agencies), local housing finance

20 agencies, and nonprofit housing intermediaries to provide

21 assistance, in accordance with the provisions of this sub22 title, for the acquisition of principal residences for first23 time homebuyers (including homebuyers buying shares in

24 limited equity cooperatives).
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1 ‘‘SEC. 303. ELIGIBLE ASSISTANCE.

2 ‘‘A grantee may use amounts received under this sub3 title only to provide assistance to first-time homebuyers

4 in the following manners:

5 ‘‘(1) DOWNPAYMENT ASSISTANCE.—Assistance

6 payments to provide amounts for the downpayment

7 (including closing costs and other costs payable at

8 the time of closing) on a mortgage for the home9 buyer.

10 ‘‘(2) SECOND MORTGAGE ASSISTANCE.—Assist11 ance payments to provide loans that have such terms

12 for payment of interest and principal as may be de13 termined by the grantee.

14 ‘‘(3) CAPITALIZATION OF REVOLVING LOAN

15 FUNDS.—To establish revolving loan funds (or to

16 make grants to public organizations or agencies to

17 establish such funds) to provide homeownership as18 sistance to eligible first-time homebuyers in accord19 ance with the provisions of this subtitle. Any grantee

20 under this subtitle (and any subgrantee of such a

21 grantee) shall provide an equal amount of local in22 vestment for such revolving loan fund and any pro23 ceeds or repayments from loans made under this

24 paragraph shall be returned to the revolving loan

25 fund established under this paragraph to be used for

26 purposes related to this section.
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1 ‘‘(4) INTEREST RATE BUYDOWNS.—Assistance

2 payments so that the rate of interest payable on a

3 mortgage by the homebuyer does not exceed 6 per4 cent.

5 ‘‘SEC. 304. ELIGIBILITY REQUIREMENTS.

6 ‘‘(a) HOMEBUYER.—Assistance may be provided only

7 to homebuyers meeting the following requirements:

8 ‘‘(1) FIRST-TIME HOMEBUYER.—The home9 buyer is an individual who—

10 ‘‘(A)(i) (and whose spouse) has had no

11 ownership in a principal residence during the 3-

12 year period ending on the date of purchase of

13 the property with respect to which assistance

14 payments are made under this subtitle;

15 ‘‘(ii) is a displaced homemaker who, except

16 for owning a home with his or her spouse or re17 siding in a home owned by the spouse, meets

18 the requirements of clause (i); or

19 ‘‘(iii) is a single parent who, except for

20 owning a home with his or her spouse or resid21 ing in a home owned by the spouse while mar22 ried, meets the requirements of clause (i); and

23 ‘‘(B) meets the requirements of subpara24 graph (A) (i), (ii), or (iii), except for owning, as

25 a principal residence, a dwelling unit whose
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1 structure is not permanently affixed to a per2 manent foundation in accordance with local or

3 other applicable regulations.

4 ‘‘(2) MAXIMUM INCOME OF HOMEBUYER.—The

5 aggregate annual income of the homebuyer and the

6 members of the family of the homebuyer residing

7 with the homebuyer, for the 12-month period preced8 ing the date of the application of the homebuyer for

9 assistance under this subtitle, does not exceed 115

10 percent of the median income for a family of 4 per11 sons (adjusted by family size) in the applicable met12 ropolitan statistical area (or such other area that the

13 Secretary determines for areas outside of metropoli14 tan statistical areas). The Secretary shall provide for

15 certification of such income for purposes of initial

16 eligibility for assistance payments under this sub17 title.

18 ‘‘(b) MORTGAGE.—Assistance may be provided only

19 for mortgages meeting the following requirements:

20 ‘‘(1) PRINCIPAL RESIDENCE.—The property

21 subject to the mortgage is a single-family residence

22 or unit in a cooperative (including any manufactured

23 home park owned by residents or owned by nonprofit

24 organizations for future ownership by residents) or

25 condominium, or a single family residence located on
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1 leased land owned by a community land trust, and

2 is the principal residence of the homebuyer.

3 ‘‘(2) MAXIMUM MORTGAGE AMOUNT.—The

4 principal obligation of the first mortgage and any

5 second mortgage assistance provided under this sub6 title does not exceed the principal amount that could

7 be insured under section 203(b) of the National

8 Housing Act with respect to a property having the

9 same number of dwelling units.

10 ‘‘(c) MINIMUM DOWNPAYMENT.—For first-time

11 homebuyers to receive downpayment assistance under sec12 tion 303(a)(1), the homebuyer shall have paid not less

13 than 1 percent of the cost of acquisition of the property

14 (excluding any mortgage insurance premiums paid at the

15 time the mortgage is insured), as such cost is estimated

16 by the Secretary.

17 ‘‘SEC. 305. COUNSELING REQUIREMENTS.

18 ‘‘Each grantee under this subtitle shall ensure that

19 each homebuyer receiving assistance under this subtitle

20 from the grantee (or any subgrantee of such grantee) shall

21 be provided prepurchase and postpurchase homeownership

22 counseling from individuals certified by the Secretary

23 under section 106(e) of the Housing and Urban Develop24 ment Act of 1968.
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1 ‘‘SEC. 306. ALLOCATION OF GRANT AMOUNTS.

2 ‘‘(a) IN GENERAL.—The Secretary may make a grant

3 under this subtitle only to a State (including a State hous4 ing finance agency), local housing finance agency, or non5 profit housing intermediary that submits to the Secretary

6 an application under this section that is approved by the

7 Secretary. Applications shall be made in such form and

8 in accordance with such procedures as the Secretary shall

9 establish.

10 ‘‘(b) MINIMUM REQUIREMENTS.—An application

11 under this section shall contain a plan that describes how

12 the applicant will achieve the objectives of this subtitle.

13 The application shall include—

14 ‘‘(1) a description of the geographic area, in15 cluding the revitalization area included, to be cov16 ered by the program to provide assistance under this

17 subtitle;

18 ‘‘(2) the characteristics of the households to be

19 served by the program;

20 ‘‘(3) a description and evidence of the commit21 ment of other public and private resources to be

22 made available in the revitalization area and other

23 areas in which homebuyers receive assistance under

24 this subtitle;

25 ‘‘(4) a description of any secondary market and

26 private mortgage insurance involvement and commit-
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1 ment in connection with assistance under this sub2 title;

3 ‘‘(5) a description of how prepurchase and

4 postpurchase counseling will be provided to home5 buyers assisted under this subtitle;

6 ‘‘(6) a description of any restrictions on resale

7 and profits;

8 ‘‘(7) a description of existing affordable housing

9 programs and resources available to undertake reha10 bilitation of properties when needed;

11 ‘‘(8) a description of the process for award and

12 disbursement of assistance to homebuyers; and

13 ‘‘(9) a description of the history of the appli14 cant in undertaking similar projects.

15 ‘‘(c) SELECTION.—The Secretary shall allocate

16 amounts available in any fiscal year for assistance under

17 this subtitle to States (including State housing finance

18 agencies), local housing finance agencies, or nonprofit

19 housing intermediaries for homebuyers through a national

20 competition in accordance with criteria established by the

21 Secretary. The criteria shall include the extent to which

22 the applicant has experience in providing homeownership

23 opportunities for low- and moderate-income households.

24 ‘‘(d) TARGETING FOR REVITALIZATION AREAS.—

25 Each grantee under this subtitle shall use not more than
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1 50 percent of any amounts received under this subtitle for

2 assistance under section 303(a) for homebuyers purchas3 ing residences in revitalization areas using mortgages in4 sured under section 203(b) of the National Housing Act.

5 ‘‘SEC. 307. REPORT.

6 ‘‘Not later than 18 months after the date of the issu7 ance of final regulations pursuant to section 310, the Sec8 retary shall submit to the Congress a report stating the

9 amount of loans made in revitalization areas and in other

10 areas, the amount of loans insured under the National

11 Housing Act made in connection with assistance under

12 this section and the amount of privately insured loans

13 made in connection with such assistance, and an analysis

14 of the effectiveness of such assistance in assisting first15 time homebuyers.

16 ‘‘SEC. 308. DEFINITIONS.

17 ‘‘For purposes of this subtitle:

18 ‘‘(1) ASSISTANCE.—The term ‘assistance’

19 means—

20 ‘‘(A) any downpayment assistance provided

21 under section 303(1);

22 ‘‘(B) any second mortgage loan provided

23 under section 303(2);

24 ‘‘(C) any loan provided from a revolving

25 fund established under section 303(3); and
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1 ‘‘(D) any payment for buydown of an in2 terest rate provided under section 303(4).

3 ‘‘(2) COMMUNITY LAND TRUST.—The term

4 ‘community land trust’ has the meaning given the

5 term in section 233 of the Cranston-Gonzalez Na6 tional Affordable Housing Act.

7 ‘‘(3) DISPLACED HOMEMAKER.—The term ‘dis8 placed homemaker’ means an individual who—

9 ‘‘(A) is an adult;

10 ‘‘(B) has not worked full-time, full-year in

11 the labor force for a number of years, but has

12 during such years, worked primarily without re13 muneration to care for the home and family;

14 and

15 ‘‘(C) is unemployed or underemployed and

16 is experiencing difficulty in obtaining or up17 grading employment.

18 ‘‘(4) REVITALIZATION AREA.—The term ‘revi19 talization area’ means—

20 ‘‘(A) an empowerment zone or enterprise

21 community approved under Subchapter U of

22 Chapter 1 of the Internal Revenue Code of

23 1986, or an equivalent State-approved enter24 prise zone; and
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1 ‘‘(B) a neighborhood that, in the deter2 mination of the Secretary, is targeted by a unit

3 of general local government for revitalization

4 using coordinated affordable housing programs

5 and enhanced supportive services.

6 ‘‘(5) NONPROFIT HOUSING INTERMEDIARY.—

7 The term ‘nonprofit housing intermediary’ means a

8 nonprofit organization that the Secretary determines

9 has among its principal purposes activities described

10 in clauses (1) and (2) of section 802(a) of the Hous11 ing and Community Development Act of 1974.

12 ‘‘(6) SINGLE PARENT.—The term ‘single par13 ent’ means an individual who—

14 ‘‘(A) is unmarried or legally separated

15 from a spouse; and

16 ‘‘(B)(i) has 1 or more minor children for

17 whom the individual has custody or joint cus18 tody; or

19 ‘‘(ii) is pregnant.

20 ‘‘(7) SECRETARY.—The term ‘Secretary’ means

21 the Secretary of Housing and Urban Development.

22 ‘‘(8) STATE.—The term ‘State’ means the

23 States of the United States, the District of Colum24 bia, the Commonwealth of Puerto Rico, the Com25 monwealth of the Northern Mariana Islands, Guam,
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1 the Virgin Islands, American Samoa, and any other

2 territory or possession of the United States.

3 ‘‘(9) STATE HOUSING FINANCE AGENCY.—The

4 term ‘State housing finance agency’ has the meaning

5 given the term in section 802(b) of the Housing and

6 Community Development Act of 1974.

7 ‘‘(10) LOCAL HOUSING FINANCE AGENCY.—The

8 term ‘local housing finance agency’ means a housing

9 finance agency of any city, county, town, township,

10 parish, village, or other general purpose subdivision

11 of a State, or of any combination of such political

12 subdivisions recognized by the Secretary, or any

13 other agency or instrumentality of such an entity

14 that carries out activities described in section 303.

15 ‘‘SEC. 310. REGULATIONS.

16 ‘‘Not later than 10 days after the date of the enact17 ment of the Housing and Community Development Act

18 of 1994, the Secretary shall issue an interim rule to imple19 ment this subtitle. The Secretary shall issue final regula20 tions necessary to implement this subtitle not later than

21 90 days after issuance of such interim rule.’’.

22 SEC. 132. SECTION 235 MORTGAGE REFINANCING.

23 Section 235(r) of the National Housing Act (12

24 U.S.C. 1715z(r)) is amended—
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1 (1) in paragraph (2)(C), by inserting after ‘‘re2 financed’’ the following: ‘‘, plus the costs incurred in

3 connection with the refinancing as described in para4 graph (4)(B) to the extent that the amount for those

5 costs is not otherwise included in the interest rate

6 as permitted by subparagraph (E) or paid by the

7 Secretary as authorized by paragraph (4)(B)’’;

8 (2) in paragraph (4)—

9 (A) in the matter preceding subparagraph

10 (A), by inserting after ‘‘otherwise)’’ the follow11 ing: ‘‘and the mortgagee (with respect to the

12 amount described in subparagraph (A))’’; and

13 (B) in subparagraph (A), by inserting after

14 ‘‘mortgagor’’ the following: ‘‘and the mortga15 gee’’; and

16 (3) by amending paragraph (5) to read as fol17 lows:

18 ‘‘(5) The Secretary shall use amounts of budget au19 thority recaptured from assistance payments contracts re20 lating to mortgages that are being refinanced for assist21 ance payments contracts with respect to mortgages in22 sured under this subsection. The Secretary may also make

23 such recaptured amounts available for incentives under

24 paragraph (4)(A) and the costs incurred in connection

25 with the refinancing under paragraph (4)(B). For pur-
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1 poses of subsection (c)(3)(A), the amount of recaptured

2 budget authority that the Secretary commits for assist3 ance payments contracts relating to mortgages insured

4 under this subsection and for amounts paid under para5 graph (4) shall not be construed as unused.’’.

6 SEC. 133. RESIDENTIAL LEAD-BASED PAINT HAZARD RE7 DUCTION.

8 (a) ELIGIBLE HOUSING.—Section 1011 of the Hous9 ing and Community Development Act of 1992 (42 U.S.C.

10 4852) is amended—

11 (1) by striking subsection (a) and inserting the

12 following new subsection:

13 ‘‘(a) AUTHORITY AND ELIGIBLE HOUSING.—

14 ‘‘(1) AUTHORITY.—The Secretary may provide

15 grants to eligible applicants to evaluate and reduce

16 lead-based paint hazards in housing that meets the

17 requirements under paragraphs (2) and (3) and is

18 not federally assisted housing, federally owned hous19 ing, or public housing, in accordance with the provi20 sions of this section.

21 ‘‘(2) ELIGIBLE HOUSING.—Housing that meets

22 the requirements under this paragraph is the follow23 ing housing:

24 ‘‘(A) RENTAL HOUSING.—In the case of

25 rental housing, housing in which at least 50
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1 percent of the dwelling units are occupied by or

2 available to households with incomes not ex3 ceeding 50 percent of the median income for

4 the area; as defined by the Secretary, and the

5 remainder of the dwelling units are occupied by

6 or available to households with incomes not ex7 ceeding 80 percent of the median income for

8 the area, as defined by the Secretary.

9 ‘‘(B) OWNER-OCCUPIED HOUSING.—In the

10 case of owner-occupied housing, a dwelling that

11 is the principal residence of a household with an

12 income not exceeding 80 percent of the median

13 income for the area, as defined by the Sec14 retary.

15 ‘‘(3) LIMITATIONS ON USE OF AMOUNTS.—

16 ‘‘(A) RENTAL HOUSING.—In the case of

17 rental housing for which lead hazard reduction

18 activities are conducted using grant amounts

19 under this section—

20 ‘‘(i) notwithstanding paragraph

21 (2)(A), for housing with 5 or more dwell22 ing units, not more than 20 percent of

23 such remaining dwelling units may be oc24 cupied by households with incomes exceed-
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1 ing 80 percent of the median income for

2 the area, as defined by the Secretary; and

3 ‘‘(ii) all vacant dwelling units for

4 which such activities have been conducted

5 shall be made available only to households

6 with a child or children under 6 years of

7 age, and among such households priority

8 shall be given to households with incomes

9 not exceeding 50 percent of the median in10 come for the area, as defined by the Sec11 retary.

12 ‘‘(B) OWNER-OCCUPIED HOUSING.—In the

13 case of owner-occupied housing for which lead

14 hazard reduction activities are conducted using

15 grant amounts under this section, 90 percent of

16 the dwelling units for which such activities are

17 conducted shall be dwelling units occupied by a

18 household with a child or children under 6

19 years of age or dwelling units in which a child

20 of such age regularly spends a substantial por21 tion of his or her time.

22 ‘‘(4) EXCEPTION TO ELIGIBLE HOUSING RE23 QUIREMENTS.—Notwithstanding paragraph (2),

24 housing that qualifies as affordable housing under

25 section 215 of the Cranston-Gonzalez National Af-
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1 fordable Housing Act (including housing that re2 ceives assistance under section 8 of the United

3 States Housing Act of 1937) and for which activities

4 assisted under this section are to be conducted using

5 amounts made available to carry out this section for

6 fiscal year 1993 shall be considered housing that

7 meets the requirements of paragraph (2) and shall

8 not be subject to the requirements of paragraph (3),

9 but only if the recipient of such assistance elects, be10 fore commencing such activities with such assist11 ance, to be subject to the provisions of this para12 graph and the Secretary approves such election. Any

13 such recipient making such an election may not use

14 such assistance to carry out activities under this sec15 tion with respect to housing that meets the require16 ments of paragraphs (2) and (3).’’; and

17 (2) by striking ‘‘priority housing’’ each place it

18 appears and inserting ‘‘housing that meets the re19 quirements under subsection (a)’’.

20 (b) HUD RESEARCH.—

21 (1) CONDUCTING OF RESEARCH.—Section 1052

22 of the Housing and Community Development Act of

23 1992 (42 U.S.C. 4854a) is amended by inserting

24 after ‘‘other Federal agencies,’’ the following: ‘‘either

25 directly, or indirectly under contract or otherwise,’’.
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1 (2) FUNDING.—Section 1053 of the Housing

2 and Community Development Act of 1992 (42

3 U.S.C. 4854b) is amended to read as follows:

4 ‘‘SEC. 1054. FUNDING.

5 ‘‘Of the total amount approved in appropriation Acts

6 under section 1011(p), there shall be set aside to carry

7 out this part $5,000,000 for fiscal year 1995 and

8 $5,000,000 for fiscal year 1996.’’.

9 (3) OTHER ACTIVITIES.—Part 1 of subtitle D

10 of title X of the Housing and Community Develop11 ment Act of 1992 (42 U.S.C. 4854 et seq.) is

12 amended by inserting after section 1052 the follow13 ing new section:

14 ‘‘SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVI15 TIES.

16 ‘‘The Secretary may use amounts available to carry

17 out this part to undertake, either directly, or indirectly

18 under contract or otherwise, pursuant to title V of the

19 Housing and Urban Development of 1970, such studies,

20 tests (including pilot tests of new or revised programs),

21 evaluations, demonstrations, education of the public, and

22 preparation of training materials, as are consistent with

23 the purposes of this Act.’’.
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1 (c) DEFINITIONS.—Section 1004 of the Housing and

2 Community Development Act of 1992 (42 U.S.C. 4851b)

3 is amended—

4 (1) by striking paragraph (20); and

5 (2) by redesignating paragraphs (21) through

6 (27) as paragraphs (20) through (26), respectively.

7 SEC. 134. FEDERAL DEPOSIT INSURANCE CORPORATION

8 AFFORDABLE HOUSING PROGRAM.

9 (a) REAUTHORIZATION.—Section 40(b) of the Fed10 eral Deposit Insurance Act (12 U.S.C. 1831q(b)) is

11 amended—

12 (1) in paragraph (1), by striking ‘‘during’’ and

13 all that follows through ‘‘paragraph (2)(A)’’ and in14 serting ‘‘until the end of fiscal year 1997’’;

15 (2) in paragraph (2)(A), in the matter preced16 ing clause (i), by striking ‘‘3-year’’; and

17 (3) in paragraph (2)(C), by striking ‘‘3-year’’.

18 (b) FACILITATION OF PROGRAM.—Section 40 of the

19 Federal Deposit Insurance Act is amended by adding at

20 the end the following new subsection:

21 ‘‘(r) FACILITATION OF PROGRAM.—Notwithstanding

22 any provision of this section or any other provision of law,

23 the Corporation shall be considered to be in compliance

24 with this section if (in the sole discretion of the Corpora25 tion) the Corporation at any time modifies, amends, or
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1 waives any provisions of this section to maximize the effi2 cient use of amounts appropriated to carry out this sec3 tion. The Corporation shall not be subject to suit for any

4 failure to comply with the requirements of this section.’’.

5 SEC. 135. STATE AGENCIES AS SURETIES.

6 Section 9304 of title 31, United States Code, is

7 amended by adding at the end the following new sub8 section:

9 ‘‘(c) STATE AGENCIES.—A State agency, including

10 any financing authority established by any State, which

11 meets the requirements of paragraphs (2) and (3) of sub12 section (a) may be treated as a surety corporation for pur13 poses of this chapter. Notwithstanding any other provision

14 of law, user fees collected by the Financial Management

15 Services incident to sections 9304 through 9309 of this

16 title shall be credited to the appropriation of that agency

17 and may be retained without fiscal year limitation to carry

18 out the provisions of such sections.’’.

19 Subtitle D—Home Investment Partnerships

20 SEC. 141. ELIGIBLE USES OF INVESTMENT.

21 Section 212(a)(1) of the Cranston-Gonzalez National

22 Affordable Housing Act (42 U.S.C. 12742(a)(1)) is

23 amended by striking ‘‘financing costs’’ and inserting

24 ‘‘costs of financing (including credit enhancements, loan

25 guarantees, and debt service reserves)’’.
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1 SEC. 142. QUALIFICATION AS AFFORDABLE RENTAL HOUS2 ING.

3 Section 215(a) of the Cranston-Gonzalez National

4 Affordable Housing Act (42 U.S.C. 12742(a)) is amend5 ed—

6 (1) in paragraph (1)(A), by striking ‘‘bears

7 rents not greater than’’ and inserting ‘‘is occupied

8 by tenants who pay as rent’’;

9 (2) in paragraph (3), by inserting after the pe10 riod at the end of the first sentence the following

11 new sentence: ‘‘A tenant occuping a rental unit as12 sisted with amounts provided under this title shall

13 be considered to be a very low-income family until

14 the household’s income increases to more than 140

15 percent of the applicable income limitation under

16 paragraph (1)(B).’’; and

17 (3) by adding at the end the following new

18 paragraph:

19 ‘‘(6) RENTAL SUBSIDIES.—Notwithstanding

20 paragraph (1), housing shall not be considered to

21 fail to qualify as affordable housing under this title

22 because it includes units for which—

23 ‘‘(A) payments are made under section 8

24 of the United States Housing Act of 1937 or

25 any comparable rental assistance program; and
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1 ‘‘(B) because of increases in the income of

2 tenants of the housing, the rent paid by the

3 tenants under the assistance program with re4 spect to such unit exceeds 30 percent of the ad5 justed income of a family whose income equals

6 65 percent of the median income for the area.’’.

7 SEC. 143. REPAYMENT OF INVESTMENT.

8 Section 219 of the Cranston-Gonzalez National Af9 fordable Housing Act (42 U.S.C. 12749) is amended by

10 adding at the end the following new subsection:

11 ‘‘(d) REPAYMENT OF MATCHING AMOUNTS.—

12 Amounts provided by a participating jurisdiction pursuant

13 to section 220 for housing not assisted under this title

14 shall be recognized for purposes of section 220(a), not15 withstanding that such amounts are not repaid to the ju16 risdiction’s HOME Investment Trust Fund, if such

17 amounts are drawn from an affordable housing program

18 operated by the jurisdiction, repaid to the program, and

19 available for use only for the program or for providing

20 housing that qualifies as affordable housing.’’.

21 SEC. 144. MATCHING REQUIREMENTS.

22 Section 220 of the Cranston-Gonzalez National Af23 fordable Housing Act (42 U.S.C. 12750) is amended—
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1 (1) in the first sentence of subsection (a), by in2 serting ‘‘the participating jurisdiction certifies’’ be3 fore ‘‘qualifies’’; and

4 (2) in subsection (b)(1)—

5 (A) in subparagraph (A), by striking ‘‘or’’;

6 (B) in subparagraph (B), by striking the

7 period at the end and inserting ‘‘; or’’; and

8 (C) by adding at the end the following new

9 subparagraph:

10 ‘‘(C) is made with respect to housing that

11 is substantially equivalent to housing that quali12 fies as affordable housing under section 215.’’.

13 SEC. 145. LABOR REQUIREMENTS.

14 Section 286(b) of the Cranston-Gonzalez National

15 Affordable Housing Act (42 U.S.C. 12836(b)) is amended

16 by adding at the end the following new sentence: ‘‘Sub17 section (a) shall not apply in the case of housing for which

18 a site is acquired or for which the homebuyer is assisted,

19 but which is not constructed, using funds made available

20 under this subtitle.’’.

21 Subtitle E—Supportive Housing Programs

22 SEC. 151. SUPPORTIVE HOUSING FOR THE ELDERLY.

23 (a) ELDER COTTAGE HOUSING UNITS.—Section

24 202(b) of the Housing Act of 1959 (12 U.S.C. 1701q(b))

25 is amended by inserting after the second sentence the fol-
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1 lowing new sentence: ‘‘Such assistance may also be used

2 to finance the acquisition and installation of elder cottage

3 housing units that are small, freestanding, barrier-free,

4 energy efficient, removable and designed to be installed

5 adjacent to existing 1- to 4-family dwellings and are used

6 as supportive housing for the elderly in accordance with

7 this section.’’.

8 (b) DEFINITION OF ‘‘FRAIL ELDERLY’’.—Section

9 202(k)(3) of the Housing Act of 1959 (12 U.S.C.

10 1701q(k)(3)) is amended by striking the first sentence and

11 inserting the following new sentences: ‘‘The term ‘frail el12 derly’ means an elderly person whose level of functional

13 disability jeopardizes her or his ability to continue to live

14 independently. The Secretary shall, to the extent possible,

15 develop assessment measures of functional disability that

16 are appropriate for purposes of this section and will pro17 vide for effective use of the program under this section

18 with other programs providing supportive services.’’.

19 (c) REPEAL OF DEMONSTRATION.—Section 806 of

20 the Cranston-Gonzalez National Affordable Housing Act

21 (12 U.S.C. 1701q note) is hereby repealed.
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1 SEC. 152. SUPPORTIVE HOUSING FOR PERSONS WITH DIS2 ABILITIES.

3 (a) PHA’S AS ELIGIBLE SPONSORS.—Section 811 of

4 the Cranston-Gonzalez National Affordable Housing Act

5 (42 U.S.C. 8013) is amended—

6 (1) in the first sentence of subsection (f), by in7 serting ‘‘and public housing agencies’’ after ‘‘private

8 nonprofit organizations’’; and

9 (2) in subsection (k)—

10 (A) in paragraph (5), by striking ‘‘private

11 nonprofit organization’’ and inserting ‘‘eligible

12 sponsor’’; and

13 (B) by adding at the end the following new

14 paragraph:

15 ‘‘(10) The term ‘eligible sponsor’ means—

16 ‘‘(A) in the case of capital advances under

17 subsection (b)(2) and project rental assistance

18 under subsections (b) (2) and (3)—

19 ‘‘(i) a private nonprofit organization;

20 and

21 ‘‘(ii) a public housing agency, but only

22 in the case of a jurisdiction for which the

23 Secretary determines that, during the 3-

24 year period ending upon the date of the

25 application of the agency for assistance

26 under subsection (b) (2) or (3)—
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1 ‘‘(I) no private nonprofit organi2 zation has submitted an application

3 under subsection (f) for assistance for

4 a project located in such area; and

5 ‘‘(II) no private nonprofit organi6 zation has had such an application ap7 proved for a project located in such

8 area; and

9 ‘‘(B) in the case of tenant-based rental as10 sistance under subsection (b)(1)—

11 ‘‘(i) a private nonprofit organization;

12 and

13 ‘‘(ii) a public housing agency, but only

14 to the extent that such assistance is used

15 for providing assistance in accordance with

16 an allocation plan for the agency under

17 section 7(f) of the United States Housing

18 Act of 1937.’’.

19 (b) RENTAL ASSISTANCE FOR EXISTING BUILD20 INGS.—Section 811 of the Cranston-Gonzalez National

21 Affordable Housing Act is amended—

22 (1) in subsection (d)(2), by adding at the end

23 the following new sentence: ‘‘The Secretary may

24 enter into contracts with private, nonprofit organiza25 tions to provide project rental assistance for sup-
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1 portive housing for persons with disabilities, regard2 less of whether the housing is developed with capital

3 advances under this section.’’;

4 (2) in subsection (e)(1), by inserting ‘‘with cap5 ital advances’’ after ‘‘assisted’’;

6 (3) by striking the first 2 sentences of sub7 section (e)(2) and inserting the following new sen8 tences: ‘‘The initial term of a contract entered into

9 under subsection (d)(2) shall be 240 months for

10 housing developed with a capital advance, and shall

11 be not more than 60 months for housing not devel12 oped with a capital advance. The Secretary shall, to

13 the extent approved in appropriation Acts, extend

14 any expiring contracts for a term of not less than 60

15 months.’’;

16 (4) in subsection (g)(1), by inserting ‘‘(if appli17 cable)’’ after ‘‘develop’’;

18 (5) in subsections (g)(3) and (g)(5), by insert19 ing ‘‘design or’’ before ‘‘proposed’’ each place it ap20 pears;

21 (6) in subsection (j), by striking paragraph (3)

22 and inserting the following new paragraph:

23 ‘‘(3) SITE CONTROL.—

24 ‘‘(A) CAPITAL ADVANCES.—In the case of

25 housing to be assisted with capital advances
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1 under this section, an applicant may obtain

2 ownership or control of a suitable site different

3 from the site specified in the initial application.

4 If an applicant fails to obtain ownership or con5 trol of the site within 1 year after notification

6 of an award for assistance, the assistance shall

7 be recaptured and reallocated.

8 ‘‘(B) PROJECT RENTAL ASSISTANCE.—In

9 the case of housing to be assisted only with

10 project rental assistance, the applicant shall

11 have ownership or control of a suitable site at

12 the time of application. The Secretary may ap13 prove a change in site at any time from the

14 date the application is submitted to the expira15 tion date of the rental assistance contract.’’;

16 (7) in subsection (j)(4), by striking ‘‘The’’ and

17 inserting the following: ‘‘In the case of housing as18 sisted with capital advances under this section, the’’;

19 (8) in the second sentence of subsection (k)(1),

20 by striking ‘‘the development of’’;

21 (9) in subsection (k)(5), by inserting before the

22 period at the end the following: ‘‘, or that receives

23 rental assistance under this section to operate a

24 project for supportive housing for persons with dis25 abilities’’; and
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1 (10) in subsection (m)(3), by striking ‘‘(1)’’ and

2 inserting ‘‘(2)’’.

3 (c) AUTHORITY TO PROVIDE ASSISTANCE.—Section

4 811 of the Cranston-Gonzalez National Affordable Hous5 ing Act is amended—

6 (1) by striking subsection (b) and inserting the

7 following new subsection:

8 ‘‘(b) GENERAL AUTHORITY.—The Secretary may

9 provide assistance to eligible sponsors to expand the sup10 ply of supportive housing for persons with disabilities.

11 Such assistance shall be provided as—

12 ‘‘(1) tenant-based rental assistance on behalf of

13 eligible persons with disabilities, in accordance with

14 subsection (d)(4);

15 ‘‘(2) capital advances in accordance with sub16 section (d)(1), together with contracts for project

17 rental assistance in accordance with subsection

18 (d)(2); or

19 ‘‘(3) contracts for project rental assistance in

20 accordance with subsection (d)(2).’’;

21 (2) in subsection (d)(1), by adding at the end

22 the following new sentences: ‘‘Capital advances may

23 be used to finance the acquisition, acquisition and

24 moderate rehabilitation, construction, reconstruction,

25 or moderate or substantial rehabilitation of housing,
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1 including the acquisition from the Resolution Trust

2 Corporation, to be used as supportive housing for

3 persons with disabilities and may include real prop4 erty acquisition, site improvement, conversion, demo5 lition, relocation, and other expenses that the Sec6 retary determines are necessary to expand the sup7 ply of supportive housing for persons with disabil8 ities. Such assistance may also be used to finance

9 the acquisition and installation of cottage housing

10 units that are small, freestanding, barrier-free, en11 ergy efficient, removable and designed to be installed

12 adjacent to existing 1- to 4-family dwellings and are

13 used as supportive housing for the persons with dis14 abilities in accordance with this section.’’;

15 (3) in subsections (d)(3), (e)(1), and (f), by in16 serting ‘‘or (3)’’ after ‘‘subsection (b)(2)’’ each place

17 it appears; and

18 (4) by striking paragraph (4) of subsection (d)

19 and inserting the following new paragraph:

20 ‘‘(4) TENANT-BASED RENTAL ASSISTANCE.—

21 ‘‘(A) ADMINISTRATION.—Tenant-based

22 rental assistance that is provided under sub23 section (b)(1) shall be administered under the

24 same rules governing rental assistance made
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1 available under section 8 of the United States

2 Housing Act of 1937.

3 ‘‘(B) PUBLIC HOUSING AGENCIES.—A pub4 lic housing agency may provide tenant-based

5 rental assistance under subsection (b)(1) only if

6 the public housing agency has submitted, and

7 had approved, an allocation plan under section

8 7(f) of the United States Housing Act of 1937

9 and any such assistance made available to a

10 public housing agency shall be provided by the

11 agency in accordance with such allocation plan.

12 In determining the amount of assistance pro13 vided under subsection (b)(1) for a public hous14 ing agency, the Secretary shall consider the

15 needs of the agency as described in the alloca16 tion plan.’’.

17 (d) TECHNICAL CHANGES.—Section 811(k)(6) of the

18 Cranston-Gonzalez National Affordable Housing Act is

19 amended by striking subparagraph (A) and inserting the

20 following new subparagraph:

21 ‘‘(A) that has received tax-exempt status

22 under section 501(c) (3) or (4) of the Internal

23 Revenue Code of 1986;’’.
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1 SEC. 153. REVISED CONGREGATE SERVICES.

2 (a) MEAL FEES AND MATCHING AMOUNTS.—Section

3 802 of the Cranston-Gonzalez National Affordable Hous4 ing Act (42 U.S.C. 8011) is amended—

5 (1) in subparagraph (A) of subsection (d)(7),

6 by striking ‘‘The fees for meals shall be in the fol7 lowing amounts:’’ and all that follows through the

8 end of the subparagraph; and

9 (2) in subsection (i)(1)—

10 (A) in subparagraph (A)(i), by striking

11 ‘‘50 percent’’ and inserting ‘‘25 percent’’;

12 (B) in subparagraph (A)(ii), by striking

13 ‘‘40 percent’’ and inserting ‘‘65 percent’’; and

14 (C) in subparagraph (C), by striking ‘‘10

15 percent’’ and inserting ‘‘25 percent’’.

16 (b) DEFINITION OF ‘‘FRAIL ELDERLY’’.—Section

17 802(k)(8) of the Cranston-Gonzalez National Affordable

18 Housing Act is amended by striking the first sentence and

19 inserting the following new sentences: ‘‘The term ‘frail el20 derly’ means an elderly person whose level of functional

21 disability jeopardizes her or his ability to continue to live

22 independently. The Secretary shall, to the extent possible,

23 develop assessment measures of functional disability that

24 are appropriate for purposes of this section and will pro25 vide for effective use of the program under this section

26 with other programs providing supportive services.’’.
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1 SEC. 154. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER2 LY INDEPENDENCE.

3 (a) SUPPORTIVE SERVICES CONTRIBUTIONS.—Sec4 tion 803(c)(1) of the Cranston-Gonzalez National Afford5 able Housing Act is amended—

6 (1) in subparagraph (A), by striking ‘‘40 per7 cent’’ and inserting ‘‘65 percent’’; and

8 (2) in subparagraph (B), by striking ‘‘50 per9 cent’’ and inserting ‘‘25 percent’’.

10 (b) DEFINITION OF ‘‘FRAIL ELDERLY’’.—Section

11 803(g)(3) of the Cranston-Gonzalez National Affordable

12 Housing Act is amended by striking the first sentence and

13 inserting the following new sentences: ‘‘The term ‘frail el14 derly person’ means an elderly person whose level of func15 tional disability jeopardizes her or his ability to continue

16 to live independently. The Secretary shall, to the extent

17 possible, develop assessment measures of functional dis18 ability that are appropriate for purposes of this section

19 and will provide for effective use of the program under

20 this section with other programs providing supportive

21 services.’’.

22 (c) AMENDMENT TO HEADING.—Section 803 of the

23 Cranston-Gonzalez National Affordable Housing Act (42

24 U.S.C. 8012) is amended by striking the section designa25 tion and heading and inserting the following:
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1 ‘‘SEC. 803. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER2 LY INDEPENDENCE.’’.

3 Subtitle F—Mortgage Insurance and

4 Secondary Mortgage Market

5 SEC. 161. EXTENSION OF MULTIFAMILY HOUSING MORT6 GAGE AUCTION PROVISIONS.

7 (a) EXTENSION.—The first sentence of section

8 221(g)(4)(C)(viii) of the National Housing Act (12 U.S.C.

9 1715l(g)(4)(C)(viii)) is amended by striking ‘‘September

10 30, 1995’’ and inserting ‘‘December 31, 2005’’.

11 (b) BUDGET COMPLIANCE.—Section 221(g)(4)(C) of

12 the National Housing Act (12 U.S.C. 1715l(g)(4)(C)) is

13 amended by adding at the end the following new clause:

14 ‘‘(ix) This subparagraph shall be effective for

15 any fiscal year only to such extent or in such

16 amounts as are or have been provided in appropria17 tion Acts for such fiscal year.’’.

18 SEC. 162. STREAMLINED REFINANCING FOR HUD-HELD

19 MORTGAGES.

20 (a) IN GENERAL.—Section 223(a) of the National

21 Housing Act (12 U.S.C. 1715n) is amended—

22 (1) in paragraph (7), by striking the colon pre23 ceding ‘‘Provided further,’’ and all that follows

24 through ‘‘and the mortgagee’’;

25 (2) by redesignating paragraph (8) as para26 graph (9);
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1 (3) by inserting after paragraph (7) the follow2 ing new paragraph:

3 ‘‘(8) given to refinance a mortgage held by the

4 Secretary, upon such terms and conditions as the

5 Secretary may prescribe, covering property on which

6 there is located a 1- to 4-family residence, or a 1-

7 family unit in a condominium project, which mort8 gage was formerly insured under this Act and subse9 quently assigned to the Secretary: Provided, That

10 the mortgagor has not previously refinanced a mort11 gage pursuant to this paragraph: Provided further,

12 That the mortgagor has made all payments due

13 under the note secured by the existing mortgage and

14 all payments due under the note for at least the pre15 vious 6 months, or the mortgagor is under a forbear16 ance agreement and has made all payments due

17 under the note secured by the existing mortgage for

18 at least the previous 6 months: Provided further,

19 That the principal amount of the refinancing mort20 gage may not exceed the outstanding principal bal21 ance of the existing mortgage by more than addi22 tional amounts owed by the mortgagor due to the

23 delinquency and to the receipt of assignment assist24 ance under section 230: Provided further, That the

25 monthly payment due under the refinancing mort-
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1 gage may not exceed the monthly payment due

2 under the existing mortgage: Provided further, That

3 the refinancing mortgage may have a term not more

4 than 12 years in excess of the unexpired term of the

5 assigned mortgage: Provided further, That the refi6 nancing mortgage may be insured under section

7 203(b) or 221(d)(2) of this Act, at the option of the

8 mortgagee, or under section 234(c) of this Act in the

9 case of a condominium: Provided further, That a re10 financing mortgage insured under section 221(d)(2)

11 shall involve a principal obligation in an amount not

12 to exceed 50 percent of the applicable dollar limita13 tion for a 1- to 4-family residence under section

14 203(b)(2): Provided further, That the authority

15 under this paragraph to refinance a mortgage shall

16 terminate 30 months after the date of enactment of

17 this Act: Provided further, That the total number of

18 mortgages refinanced under this paragraph may not

19 exceed 20,000; or’’; and

20 (4) by adding at the end the following new

21 flush material:

22 ‘‘A mortgage of the character described in paragraphs (1)

23 through (6) of this subsection shall have a maturity and

24 a principal obligation not in excess of the maximums pre25 scribed under the applicable section or title of this Act,
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1 except that in no case may the principal obligation of a

2 mortgage referred to in paragraph (5) of this subsection

3 exceed 90 percent of the appraised value of the mortgage

4 property, and shall bear interest at such rate as may be

5 agreed upon by the mortgagor and the mortgagee.’’.

6 (b) IMPLEMENTATION.—The Secretary of Housing

7 and Urban Development may implement the authority to

8 refinance a mortgage held by the Secretary under section

9 223(a)(8) of the National Housing Act, as added by the

10 amendment made by subsection (a)(3) of this section, by

11 notice published in the Federal Register setting forth such

12 requirements as may be necessary.

13 SEC. 163. DELEGATION OF SINGLE FAMILY MORTGAGE IN14 SURING AUTHORITY TO DIRECT ENDORSE15 MENT MORTGAGEES.

16 Title II of the National Housing Act (12 U.S.C. 1707

17 et seq.), is amended by adding at the end the following

18 new section:

19 ‘‘DELEGATION OF INSURING AUTHORITY TO DIRECT

20 ENDORSEMENT MORTGAGEES

21 ‘‘SEC. 256. (a) AUTHORITY.—The Secretary may del22 egate, to one or more mortgagees approved by the Sec23 retary under the direct endorsement program, the author24 ity of the Secretary under this Act to insure mortgages

25 involving property upon which there is located a dwelling

26 designed principally for occupancy by 1 to 4 families.
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1 ‘‘(b) CONSIDERATIONS.—In determining whether to

2 delegate authority to a mortgagee under this section, the

3 Secretary shall consider the experience and performance

4 of the mortgagee under the direct endorsement program,

5 the default rate of insured mortgages originated by the

6 mortgagee compared to the default rate of all insured

7 mortgages in comparable markets, and such other factors

8 as the Secretary determines appropriate to minimize risk

9 of loss to the insurance funds under this Act.

10 ‘‘(c) ENFORCEMENT OF INSURANCE REQUIRE11 MENTS.—

12 ‘‘(1) IN GENERAL.—If the Secretary determines

13 that a mortgage insured by a mortgagee pursuant to

14 delegation of authority under this section was not

15 originated in accordance with the requirements es16 tablished by the Secretary, and the Secretary pays

17 an insurance claim with respect to the mortgage

18 within a reasonable period specified by the Sec19 retary, the Secretary may require the mortgagee ap20 proved under this section to indemnify the Secretary

21 for the loss.

22 ‘‘(2) FRAUD OR MISREPRESENTATION.—If

23 fraud or misrepresentation was involved in connec24 tion with the origination, the Secretary may require

25 the mortgagee approved under this section to indem-
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1 nify the Secretary for the loss regardless of when an

2 insurance claim is paid.

3 ‘‘(d) TERMINATION OF MORTGAGEE’S AUTHORITY.—

4 If a mortgagee to which the Secretary has made a delega5 tion under this section violates the requirements and pro6 cedures established by the Secretary or the Secretary de7 termines that other good cause exists, the Secretary may

8 cancel a delegation of authority under this section to the

9 mortgagee by giving notice to the mortgagee. Such a can10 cellation shall be effective upon receipt of the notice by

11 the mortgagee or at a later date specified by the Secretary.

12 A decision by the Secretary to cancel a delegation shall

13 be final and conclusive and shall not be subject to judicial

14 review.

15 ‘‘(e) REQUIREMENTS AND PROCEDURES.—Before ap16 proving a delegation under this section, the Secretary shall

17 issue regulations establishing appropriate requirements

18 and procedures, including requirements and procedures

19 governing the indemnification of the Secretary by the

20 mortgagee.’’.

21 TITLE II—COMMUNITY DEVELOPMENT

22 SEC. 201. ELIGIBLE ACTIVITIES.

23 Section 907(b)(2) of the Cranston-Gonzalez National

24 Affordable Housing Act (42 U.S.C. 5305 note) is hereby

25 repealed.
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1 SEC. 202. REALLOCATIONS.

2 Section 106(c) of the Housing and Community Devel3 opment Act of 1974 (42 U.S.C. 5304(c)) is amended by

4 striking paragraph (4).

5 SEC. 203. USE OF UDAG RECAPTURES.

6 Section 119(o) of the Housing and Community De7 velopment Act of 1974 (42 U.S.C. 5318(o)) is amended

8 by striking ‘‘October 1, 1993’’ and inserting in lieu thereof

9 ‘‘April 11, 1994’’.

10 SEC. 204. EXTENSION OF CERTAIN CDBG ASSISTANCE.

11 (a) EXTENSION.—Section 916(f) of the Cranston12 Gonzalez National Affordable Housing Act (42 U.S.C.

13 5306 note) is amended by striking ‘‘1991’’ and all that

14 follows through ‘‘1994’’ and inserting ‘‘beginning before

15 the commencement of fiscal year 1998’’.

16 SEC. 205. COLONIAS ASSISTANCE PROGRAM.

17 (a) GRANT AUTHORITY.—The Secretary may make

18 grants in accordance with the provisions of this section

19 to units of general local government, States, nonprofit or20 ganizations, or entities or instrumentalities established

21 under the authority of any of such entities, for use in ad22 dressing the community development and housing needs

23 of colonias.

24 (b) ELIGIBLE ACTIVITIES.—Assistance under this

25 section may be used only to carry out the following activi26 ties:
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1 (1) Any activity eligible under section 105 of

2 the Housing and Community Development Act of

3 1974 or section 212(a) of the HOME Investment

4 Partnerships Act.

5 (2) Refinancing the existing debt of home6 owners to convert existing land transactions and in7 terests into mortgages.

8 (3) Constructing new housing, including self9 help, energy-efficient, and innovative housing design

10 initiatives.

11 (4) Developing new subdivisions for affordable

12 housing.

13 (5) Re-platting and redeveloping existing sub14 divisions.

15 (6) Planning for and constructing infrastruc16 ture necessary for the development of housing, eco17 nomic development, and community facilities and

18 amenities.

19 (7) Such other activities as the Secretary deems

20 appropriate to further the purposes of this section.

21 (c) MODEL PROGRAMS.—

22 (1) IN GENERAL.—Of amounts allocated under

23 subsection (j)(2), the Secretary shall make grants

24 under this subsection to the entities referred to in

25 subsection (a) for the purpose of establishing model
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1 programs of assistance for addressing the commu2 nity development, housing, and other needs of the

3 residents of the colonias.

4 (d) SELECTION OF GRANTEES.—

5 (1) GEOGRAPHIC DISTRIBUTION.—The Sec6 retary shall designate—

7 (A) at least one project in each State to re8 ceive a grant under this subsection; and

9 (B) at least one project within a metropoli10 tan area in any State to receive a grant under

11 this subsection.

12 (2) SELECTION PROCESS.—The Secretary shall

13 select grantees under this subsection on a non14 competitive basis, through negotiation with the

15 grantee.

16 (3) SELECTION CRITERIA.—In selecting

17 projects for grants under this subsection, the Sec18 retary shall consider—

19 (A) the extent of need in the colonia;

20 (B) the likely effectiveness of the proposed

21 approach in addressing identified needs;

22 (C) the extent to which funding for the

23 project is committed from sources other than

24 under this section;
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1 (D) the need to consider a variety of solu2 tions to a variety of needs situations; and

3 (E) such other factors as the Secretary

4 deems appropriate to carry out the objectives of

5 this section.

6 (e) COMPETITIVE GRANTS.—

7 (1) PURPOSE.—Grants under this subsection

8 shall be made, in accordance with paragraph (2), to

9 the entities referred to in subsection (a) for the pur10 pose of assisting the community development and

11 housing needs of the residents of one or more

12 colonias in an area or region.

13 (2) RESERVATION OF FUNDS.—Of amounts al14 located under subsection (j)(2), the Secretary shall

15 reserve a target amount for grants under this sub16 section for use in colonias in each State. The Sec17 retary shall determine the amount be reserved based

18 on such objective factors of need as the Secretary

19 deems appropriate, which may include rates of pov20 erty in, and the population of, colonias. The Sec21 retary shall reallocate any amounts set-aside under

22 this paragraph for which the Secretary determines

23 there will not be sufficient approvable applications in

24 a fiscal year.
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1 (3) USE OF FUNDS.—Any amount not reserved

2 or reallocated under paragraph (2) may be used in

3 colonias in any State.

4 (4) APPLICATIONS.—Applications for grants

5 under this subsection shall be submitted at such

6 time and in accordance with such procedures, as the

7 Secretary shall prescribe. Applications shall contain

8 the following information, which the Secretary shall

9 consider in selecting projects for grants under this

10 subsection:

11 (A) The extent of need in the colonia.

12 (B) An estimate of the likely effectiveness

13 of the proposed approach in addressing identi14 fied needs.

15 (C) A description of the extent to which

16 funding for the project is committed from

17 sources other than under this section.

18 (D) Any other information that the Sec19 retary deems appropriate to carry out the objec20 tives of this section.

21 (5) SELECTION OF GRANTEES.—The Secretary

22 shall select grantees for grants under this subsection

23 on the basis of a competition, following publication

24 of a notice of funding availability in the Federal

25 Register.
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1 (f) RECORDS, REPORTS, AND AUDITS.—

2 (1) KEEPING OF RECORDS.—Each grantee

3 under this section shall keep such records as may be

4 reasonably necessary to disclose the amounts and

5 the disposition of grant amounts received under this

6 section and to ensure compliance with the require7 ments of this section.

8 (2) GRANTEE REPORTS.—Each grantee under

9 this section shall submit to the Secretary a report,

10 or series of reports, in a form and at a time speci11 fied by the Secretary. Each report shall—

12 (A) describe the use of funds made avail13 able to the grantee under this section; and

14 (B) describe and analyze the effect of as15 sisted activities in addressing the community

16 development and housing needs of the residents

17 of colonias.

18 (g) ACCESS TO DOCUMENTS BY SECRETARY.—The

19 Secretary shall have access for the purpose of audit and

20 examination to any books, documents, papers, and records

21 of a grantee that are pertinent to assistance received in

22 connection with, and the requirements of, this section.

23 (h) ACCESS TO DOCUMENTS BY COMPTROLLER GEN24 ERAL.—The Comptroller General of the United States, or

25 any of the duly authorized representatives of the Comp-
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1 troller General, shall have access for the purpose of audit

2 and examination to any books, documents, papers, and

3 records of a grantee that are pertinent to assistance re4 ceived under, and the requirements of, this section.

5 (i) DEFINITIONS.—For purposes of this section, the

6 following definitions shall apply:

7 (1) The terms ‘‘colonia’’ and ‘‘United States8 Mexico Border Region’’ have the meanings given the

9 terms in section 916(e) of the Cranston-Gonzalez

10 National Affordable Housing Act.

11 (2) The term ‘‘metropolitan area’’ has the

12 meaning given the term in section 102(a) of the

13 Housing and Community Development Act of 1974.

14 (3) The term ‘‘nonprofit organization’’ means—

15 (A) an organization—

16 (i) that is described in section 501(c)

17 of the Internal Revenue Code of 1986; and

18 (ii) is exempt from taxation under

19 section 501(a) of such Code; or

20 (B) an organization—

21 (i) no part of the net earnings of

22 which inures to the benefit of any member,

23 founder, contributor, or individual;

24 (ii) that in the case of a private non25 profit organization, has a voluntary board;
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1 (iii) that has an accounting system, or

2 has designated a fiscal agent in accordance

3 with requirements established by the Sec4 retary; and

5 (iv) that practices nondiscrimination

6 in the provision of assistance.

7 (4) The term ‘‘Secretary’’ means the Secretary

8 of Housing and Urban Development.

9 (5) The term ‘‘State’’ means the States of Cali10 fornia, Arizona, New Mexico, and Texas.

11 (6) The term ‘‘unit of general local govern12 ment’’ means—

13 (A) a city, town, township, county, parish,

14 village, or other general purpose political sub15 division of a State; and

16 (B) any agency or instrumentality thereof

17 that is established pursuant to legislation and

18 designated by the chief executive to act on be19 half of the jurisdiction with regard to provisions

20 of this section.

21 The term includes a consortium of geographically

22 contiguous units of general local government, if the

23 Secretary determines that the consortium—

24 (i) has sufficient authority and administra25 tive capability to carry out the purposes of this
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1 section on behalf of its member jurisdictions;

2 and

3 (ii) meets such other requirements as the

4 Secretary may prescribe.

5 SEC. 206. YOUTHBUILD PROGRAM.

6 (a) ELIGIBLE ACTIVITIES.—Section 454(b) of the

7 Cranston-Gonzalez National Affordable Housing Act (42

8 U.S.C. 12899c(b)) is amended—

9 (1) in paragraph (2), by striking ‘‘Acquisition’’

10 and all that follows through ‘‘facilities’’ and insert11 ing ‘‘Acquisition, rehabilitation, or acquisition and

12 rehabilitation of housing and related facilities, or

13 construction of new housing and related facilities

14 (including community facilities designed to serve the

15 needs of low- and very low-income families),’’;

16 (2) by striking paragraph (6); and

17 (3) by redesignating paragraphs (7) and (8) as

18 paragraphs (6) and (7), respectively.

19 (b) PRIORITY FOR APPLICANTS SUPPLEMENTING

20 GRANT AMOUNTS.—Section 454(e) of the Cranston-Gon21 zalez National Affordable Housing Act (42 U.S.C.

22 12899c(e)) is amended to read as follows:

23 ‘‘(e) PRIORITY FOR APPLICANTS WHO OBTAIN PRO24 GRAM FUNDS FROM OTHER SOURCES.—The Secretary

25 shall give priority in the award of grants under this section
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1 to applicants to the extent that they have obtained

2 amounts or in-kind contributions, or commitments to pro3 vide such amounts or contributions, from Federal, State,

4 local, or private sources other than assistance under this

5 subtitle in an amount constituting not less than 10 percent

6 of the total budget of the applicant for the Youthbuild pro7 gram, that will be used for carrying out any aspect of the

8 Youthbuild program of the applicant.’’.

9 (c) RESIDENTIAL RENTAL HOUSING REQUIRE10 MENTS.—Section 455(a) of the Cranston-Gonzalez Na11 tional Affordable Housing Act (42 U.S.C. 12899d(a)) is

12 amended—

13 (1) in the matter preceding paragraph (1), by

14 inserting after ‘‘subtitle’’ the following: ‘‘for costs

15 such as construction, rehabilitation, and acquisi16 tion’’; and

17 (2) in paragraph (1), by striking subparagraph

18 (A) and inserting the following new subparagraph:

19 ‘‘(A) at least 80 percent of the units shall

20 be occupied, or available for occupancy, by indi21 viduals and families with incomes that do not

22 exceed 50 percent of the area median income,

23 adjusted for family size; and’’.
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1 TITLE III—HOMELESS ASSISTANCE

2 SEC. 301. SHORT TITLE.

3 This title may be cited as the ‘‘Stewart B. McKinney

4 Homeless Housing Assistance Amendments Act of 1994’’.

5 Subtitle A—Reorganization of Certain

6 McKinney Act Housing Provisions

7 SEC. 311. FLEXIBLE GRANT PROGRAM.

8 Title IV of the Stewart B. McKinney Homeless As9 sistance Act (42 U.S.C. 11361 et seq.) is amended—

10 (1) by striking subtitles A, B, C, D, and F;

11 (2) by striking the headings for subtitles E and

12 G;

13 (3) by redesignating sections 441 (as amended

14 by the preceding provisions of this Act), 491, and

15 592 (as added by section 1414 of the Housing and

16 Community Development Act of 1992) as sections

17 451, 453, and 454, respectively;

18 (4) by striking sections 442 and 443; and

19 (5) by inserting after the heading for the title

20 the following:

21 ‘‘Subtitle A—Flexible Grant Program

22 ‘‘CHAPTER 1—GENERAL PROVISIONS

23 ‘‘SEC. 401. PURPOSES.

24 ‘‘The purposes of this subtitle are to—
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1 ‘‘(1) expand and reorganize the Federal com2 mitment to alleviate homelessness by providing

3 States, Indian tribes, and localities with the re4 sources to more efficiently and effectively design a

5 comprehensive system to address the shelter, service,

6 and permanent housing needs of homeless individ7 uals and families in the United States;

8 ‘‘(2) help very low-income families avoid becom9 ing homeless;

10 ‘‘(3) meet the emergency shelter needs of home11 less persons and families;

12 ‘‘(4) provide transitional or specialized perma13 nent housing to facilitate the movement of homeless

14 persons and families to independent living;

15 ‘‘(5) provide supportive services to help home16 less persons and families lead independent and dig17 nified lives;

18 ‘‘(6) encourage the cooperation and participa19 tion of the States and units of general local govern20 ment, together with private nonprofit organizations,

21 in planning and implementing comprehensive home22 less assistance programs;

23 ‘‘(7) reduce the costs to States, units of general

24 local government, and private nonprofit organiza25 tions in applying for and using Federal housing as-
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1 sistance for families and persons who are homeless;

2 and

3 ‘‘(8) begin meeting the needs of most of the

4 Nation’s homeless population through the existing

5 Federal programs providing basic assistance for low6 income families and persons.

7 ‘‘SEC. 403. DEFINITIONS.

8 ‘‘For purposes of this subtitle, the following defini9 tions shall apply:

10 ‘‘(1) The term ‘allocation unit of general local

11 government’ means a metropolitan city and an

12 urban county.

13 ‘‘(2) The term ‘applicant’ means an eligible

14 grantee that submits an application under section

15 408 for a grant under this subtitle.

16 ‘‘(3) The term ‘disability’ means—

17 ‘‘(A) a disability as defined in section 223

18 of the Social Security Act;

19 ‘‘(B) to be determined to have, pursuant to

20 regulations issued by the Secretary, a physical,

21 mental, or emotional impairment which (i) is

22 expected to be a long-continued and indefinite

23 duration, (ii) substantially impedes an individ24 ual’s ability to live independently, and (iii) of
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1 such a nature that such ability could be im2 proved by more suitable housing conditions;

3 ‘‘(C) a developmental disability as defined

4 in section 102 of the Developmental Disabilities

5 Assistance and Bill of Rights Act; or

6 ‘‘(D) the disease of acquired

7 immunodeficiency syndrome or any conditions

8 arising from the etiologic agency for acquired

9 immunodeficiency syndrome.

10 Subparagraph (D) shall not be construed to limit eli11 gibility under subparagraphs (A) through (C) or the

12 provisions referred to in subparagraphs (A) through

13 (C).

14 ‘‘(4) The term ‘eligible grantee’ means—

15 ‘‘(A) an allocation unit of general local

16 government, Indian Tribe, or insular area, or a

17 consortium of such entities, that elects to ad18 minister a grant under section 410(a)(1);

19 ‘‘(B) a public agency or a private nonprofit

20 organization (or a consortium of such organiza21 tions) designated by the Secretary under section

22 410(a)(3) to administer grant amounts for an

23 allocation unit of general local government, In24 dian tribe, or insular area;
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1 ‘‘(C) an entity eligible to receive grant

2 amounts from the Secretary under section

3 410(a)(4);

4 ‘‘(D) a State that elects under section

5 410(b)(1)(A) to administer a grant;

6 ‘‘(E) a unit of general local government se7 lected under section 410(b)(5) to receive grant

8 amounts from the Secretary; and

9 ‘‘(F) a private nonprofit organization se10 lected under section 410(b)(4) to receive grant

11 amounts from the Secretary.

12 ‘‘(5) The term ‘families’ has the same meaning

13 given the term under section 3(b) of the United

14 States Housing Act of 1937.

15 ‘‘(6) The term ‘grantee’ means—

16 ‘‘(A) an allocation unit of general local

17 government, Indian tribe, or insular area, or a

18 consortium of such entities, that receives a

19 grant under this subtitle and administers the

20 grant under section 410(a)(1);

21 ‘‘(B) an allocation unit of general local

22 government, Indian tribe, or insular area that

23 receives a grant under this subtitle and des24 ignates a public agency or private nonprofit or25 ganization (or a consortium of such organiza-
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1 tions) to administer grant amounts for the ju2 risdiction under section 410(a)(2);

3 ‘‘(C) a public agency or a private nonprofit

4 organization (or a consortium or such organiza5 tions) designated by the Secretary under section

6 410(a)(3) to administer grant amounts for an

7 allocation unit of general local government, In8 dian tribe, or insular area, and that receives

9 grant amounts under this subtitle;

10 ‘‘(D) an entity that receives grant amounts

11 from the Secretary under section 410(a)(4);

12 ‘‘(E) a State that receives grant amounts

13 under this subtitle and administers such

14 amounts under section 410(b)(1)(A);

15 ‘‘(F) a unit of general local government

16 that receives grant amounts from the Secretary

17 under section 410(b)(5); and

18 ‘‘(G) a private nonprofit organization that

19 receives grant amounts from the Secretary

20 under section 410(b)(4).

21 ‘‘(7) The term ‘homeless family’ means a group

22 of one or more related individuals who are homeless

23 individuals.

24 ‘‘(8) The term ‘Indian tribe’ means any Indian

25 tribe, band, group, and nation, including Alaska In-
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1 dians, Aleuts, and Eskimos, and any Alaskan Native

2 Village, of the United States, which is considered an

3 eligible recipient under the Indian Self-Determina4 tion and Education Assistance Act or was considered

5 an eligible recipient under chapter 67 of title 31,

6 United States Code, before the repeal of such

7 chapter.

8 ‘‘(9) The term ‘insular area’ means the Virgin

9 Islands, Guam, American Samoa, and the Common10 wealth of the Northern Mariana Islands.

11 ‘‘(10) The term ‘low-demand services and refer12 rals’ means the provision of health care, mental

13 health, substance abuse, and other supportive serv14 ices and referrals for services in a noncoercive man15 ner, which may include medication management,

16 education, counseling, job training, and assistance in

17 obtaining entitlement benefits and in obtaining other

18 supportive service including mental health treatment

19 and substance abuse treatment.

20 ‘‘(11) The term ‘metropolitan city’ has the

21 meaning given the term in section 102(a) of the

22 Housing and Community Development Act of 1974.

23 ‘‘(12) The term ‘operating costs’ means ex24 penses of operating any housing assisted under this

25 subtitle with respect to—
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1 ‘‘(A) the administration, maintenance, re2 pair, and security of such housing;

3 ‘‘(B) utilities, fuels, furnishings, and equip4 ment for such housing; and

5 ‘‘(C) the conducting of the assessments of

6 and the provision of supportive services to the

7 residents of such housing.

8 ‘‘(13) The term ‘outpatient health services’

9 means outpatient health care, outpatient mental

10 health services, outpatient substance abuse services,

11 case management services and child immunization.

12 ‘‘(14) The term ‘private nonprofit organization’

13 means an organization—

14 ‘‘(A) no part of the net earnings of which

15 inures to the benefit of any member, founder,

16 contributor, or individual;

17 ‘‘(B) that has a voluntary board;

18 ‘‘(C) that has an accounting system or has

19 designated a fiscal agent in accordance with re20 quirements established by the Secretary; and

21 ‘‘(D) that practices nondiscrimination in

22 the provision of assistance.

23 ‘‘(15) The term ‘project’ means a structure or

24 a portion of a structure that is acquired or rehabili25 tated with assistance provided under this subtitle or
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1 with respect to which the Secretary provides tech2 nical assistance or annual payments for operation

3 costs.

4 ‘‘(16) The term ‘project sponsor’ means an en5 tity that—

6 ‘‘(A) provides housing or assistance for

7 homeless individuals or families by carrying out

8 eligible activities under chapter 2 that are as9 sisted under this subtitle; and

10 ‘‘(B) meets such minimum standards as

11 the Secretary considers appropriate.

12 ‘‘(17) The term ‘recipient’ means a grantee

13 (other than a State distributing grant amounts to

14 State recipients) and a State recipient.

15 ‘‘(18) The term ‘Secretary’ means the Secretary

16 of Housing and Urban Development.

17 ‘‘(19) The term ‘State’ means a State of the

18 United States and the Commonwealth of Puerto

19 Rico, or any agency or instrumentality thereof that

20 is established pursuant to legislation and designated

21 by the chief executive to act on behalf of the juris22 diction with regard to provisions of this subtitle.

23 ‘‘(20) The term ‘State recipient’ means—

24 ‘‘(A) a unit of general local government

25 within a State (other than an allocation unit of
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1 general local government) that receives grant

2 amounts from the State under section

3 410(b)(3); and

4 ‘‘(B) a private nonprofit organization that

5 receives grant amounts from a State under sec6 tion 410(b)(4).

7 ‘‘(21)(A) The term ‘supportive services’ means

8 assistance that—

9 ‘‘(i) addresses the special needs of home10 less persons, such as deinstitutionalized per11 sons, families with children, persons with men12 tal disabilities, other persons with disabilities,

13 the elderly, and veterans intended to be served

14 by a project; and

15 ‘‘(ii) assists in accomplishing the purposes

16 of the different types of housing for the home17 less eligible for assistance under this subtitle.

18 ‘‘(B) Such term includes—

19 ‘‘(i) food services, child care, substance

20 abuse treatment, assistance in obtaining perma21 nent housing, outpatient health services, em22 ployment counseling, nutritional counseling, se23 curity arrangements for the protection of resi24 dents of facilities to assist the homeless, and

25 such other services essential for maintaining or
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1 moving toward independent living as the Sec2 retary determines to be appropriate; and

3 ‘‘(ii) assistance to homeless persons in ob4 taining other Federal, State, and local assist5 ance available for such individuals, including

6 public assistance benefits, mental health bene7 fits, employment counseling, and medical assist8 ance.

9 ‘‘(C) Such term does not include the provision

10 of major medical equipment.

11 ‘‘(D) All or part of the supportive services may

12 be provided directly by the project sponsor or by

13 arrangements with other public or private service

14 providers.

15 ‘‘(22) The term ‘unit of general local govern16 ment’ means—

17 ‘‘(A) a city, town, township, county, parish,

18 village, or other general purpose political sub19 division of a State;

20 ‘‘(B) the District of Columbia; and

21 ‘‘(C) any agency or instrumentality thereof

22 that is established pursuant to legislation and

23 designated by the chief executive to act on be24 half of the jurisdiction with regard to provisions

25 of this subtitle.
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1 The term includes a consortium of geographically

2 contiguous units of general local government if the

3 Secretary determines that the consortium—

4 ‘‘(i) has sufficient authority and adminis5 trative capability to carry out the purposes of

6 this subtitle on behalf of its member jurisdic7 tions; and

8 ‘‘(ii) will, according to a written certifi9 cation by the State (or State, if the consortium

10 includes jurisdictions in more than one State),

11 direct its activities to alleviation of problems of

12 homeless individuals or families within the

13 State or States.

14 ‘‘(23) The term ‘urban county’ has the meaning

15 given the term in section 102(a) of the Housing and

16 Community Development Act of 1974.

17 ‘‘(24) The term ‘very low-income families’ has

18 the same meaning given the term under section 104

19 of the Cranston-Gonzalez National Affordable Hous20 ing Act.

21 ‘‘SEC. 404. PROVISION OF GRANTS.

22 ‘‘(a) AUTHORITY AND USE.—The Secretary may

23 make grants to eligible grantees in accordance with the

24 provisions of this subtitle. Grants under this subtitle may

25 be used only—
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1 ‘‘(1) to carry out activities under chapter 2 for

2 assisting homeless individuals and families that are

3 conducted to provide comprehensive homeless assist4 ance required under section 405; and

5 ‘‘(2) for administrative expenses, to the extent

6 provided in section 436.

7 ‘‘(b) GENERAL RULE FOR AWARD OF GRANTS.—Ex8 cept as provided in subsection (c), the Secretary shall

9 make grants using amounts appropriated under section

10 402 in the manner provided in this subtitle.

11 ‘‘(c) INSUFFICIENT APPROPRIATIONS.—

12 ‘‘(1) TRIGGER.—If the amounts appropriated

13 pursuant to section 402 for any fiscal year are less

14 than 50 percent of the amount authorized to be ap15 propriated under such section for the year, the Sec16 retary shall use such amounts to make grants under

17 the provisions of this title as in effect immediately

18 before the enactment of the Housing and Commu19 nity Development Act of 1994.

20 ‘‘(2) GRANT REQUIREMENTS.—The Secretary

21 shall establish requirements for grants made under

22 this subsection, as the Secretary considers appro23 priate, that are additional or alternative to the re24 quirements under the provisions of this title as in ef-
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1 fect immediately before the enactment of the Hous2 ing and Community Development Act of 1994.

3 ‘‘(3) GRANT CRITERIA.—The criteria for award4 ing grants under this subsection shall include—

5 ‘‘(A) the extent to which there is a need

6 for assistance for homeless individuals and fam7 ilies in the jurisdiction in which the grant will

8 be used;

9 ‘‘(B) the extent to which the activities pro10 posed to be carried out with grant amounts will

11 further the provision of comprehensive homeless

12 assistance required under section 405(b)(1);

13 ‘‘(C) the extent to which private nonprofit

14 organizations providing assistance to homeless

15 individuals and families in the jurisdiction have

16 been, and will be, included in planning for the

17 receipt of assistance under this subtitle, the de18 velopment of the application under section 408,

19 and the execution of the proposed activities;

20 and

21 ‘‘(D) such other criteria as the Secretary

22 considers appropriate to further the purposes of

23 this subsection and this subtitle.

24 ‘‘(4) SET ASIDE FOR INDIAN TRIBES AND INSU25 LAR AREAS.—In making grants under this sub-
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1 section, the Secretary may to set aside such amounts

2 as the Secretary considers appropriate for grants for

3 Indian tribes and insular areas.

4 ‘‘SEC. 405. COMPREHENSIVE HOMELESS ASSISTANCE.

5 ‘‘(a) ESTABLISHMENT AND MAINTENANCE.—Each

6 applicant shall, based on information provided in the cur7 rent comprehensive affordable housing strategy for the ap8 propriate jurisdiction under section 105 of the Cranston9 Gonzalez National Affordable Housing Act or such other

10 plan as the Secretary may prescribe, use assistance pro11 vided under this subtitle in a manner that ensures that

12 comprehensive homeless assistance is established and

13 maintained within the jurisdiction of the applicant.

14 ‘‘(b) REQUIREMENTS.—For purposes of this subtitle,

15 comprehensive homeless assistance required under this

16 section shall include—

17 ‘‘(1) providing a system of outreach and assess18 ment for—

19 ‘‘(A) determining whether an individual or

20 family is homeless, needs assistance to avoid

21 being homeless, or needs other assistance; and

22 ‘‘(B) ensuring that individuals and families

23 so identified receive appropriate housing and

24 supportive services;
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1 ‘‘(2) providing assistance to the extent nec2 essary to avoid eviction (or foreclosure) and termi3 nation of utility services of low- and very low-income

4 families to prevent such families from becoming

5 homeless;

6 ‘‘(3) making emergency shelters with appro7 priate supportive services available to the extent nec8 essary to ensure that homeless individuals and fami9 lies for which such housing is appropriate receive

10 adequate shelter, including during any period in

11 which an assessment referred to in paragraph (1) is

12 performed for such an individual or family;

13 ‘‘(4) making transitional housing with appro14 priate supportive services available to the extent nec15 essary to ensure that homeless individuals and fami16 lies for which such housing is appropriate are pre17 pared for increased responsibility and permanent

18 housing, or permanent supportive housing, after the

19 transition period;

20 ‘‘(5) making permanent supportive housing,

21 available to the extent necessary to meet the long22 term housing needs of all homeless individuals and

23 families;
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1 ‘‘(6) providing assistance to meet specific needs

2 of various subpopulations of the homeless, especially

3 the unique needs of homeless veterans; and

4 ‘‘(7) providing for coordination of assistance

5 provided under this subtitle and assistance provided

6 under other Federal, State, and local programs that

7 may be used to assist homeless individuals and fami8 lies, including—

9 ‘‘(A) assistance under the programs for

10 public and Indian housing and section 8 rental

11 assistance under the United States Housing Act

12 of 1937 (including the program for section 8

13 assistance for moderate rehabilitation under

14 section 451 of this Act and the shelter plus care

15 program for such assistance under section 452

16 of this Act), the HOME Investment Partner17 ships Act, the community development block

18 grant program under title I of the Housing and

19 Community Development Act of 1974, the pro20 gram for supportive housing for the elderly

21 under section 202 of the Housing Act of 1959,

22 the program for supportive housing for persons

23 with disabilities under section 811 of the Cran24 ston-Gonzalez National Affordable Housing Act,

25 and the program for housing opportunities for
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1 persons with AIDS under subtitle D of title

2 VIII of the Cranston-Gonzalez National Afford3 able Housing Act;

4 ‘‘(B) programs administered by the Direc5 tor of the Federal Emergency Management

6 Agency;

7 ‘‘(C) programs administered by the Sec8 retary of Labor, including programs for employ9 ment and training;

10 ‘‘(D) programs administered by the Sec11 retary of Health and Human Services, including

12 programs for health care, mental health care,

13 social services, income support services, run14 away youth, and unfit transient facilities;

15 ‘‘(E) programs administered by the Sec16 retary of Veterans Affairs (including programs

17 for compensation benefits, health care, and

18 mental health care, and other services and pro19 grams) that are specifically designed to assist

20 homeless veterans;

21 ‘‘(F) programs administered by the Sec22 retary of Education, including programs for

23 adult education and education for homeless

24 children and youth;
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1 ‘‘(G) programs administered by the Cor2 poration for National and Community Service,

3 including programs for national service; and

4 ‘‘(H) such other assistance as the Sec5 retary shall prescribe upon consultation with

6 the Interagency Council on the Homeless.

7 ‘‘SEC. 406. MATCHING REQUIREMENTS.

8 ‘‘(a) IN GENERAL.—Except as provided in subsection

9 (c), each recipient shall supplement the amount of grants

10 provided under this subtitle to the recipient with an

11 amount of funds from non-Federal sources equal to 50

12 percent of the Federal grant, which shall include funds

13 from project sponsors receiving assistance from the

14 recipient.

15 ‘‘(b) SUPPLEMENTAL FUNDS.—Supplemental funds

16 may include (1) the value of any donated material or

17 building, the value of any lease on a building, (2) any sal18 ary paid to staff to carry out the program of a project

19 sponsor, (3) the value of the time and services contributed

20 by volunteers to carry out the program of project sponsor

21 at a rate determined by the Secretary, and (4) the pro22 ceeds from bond financing validly issued by a State or unit

23 of general local government, agency, or instrumentality

24 thereof, and repayable with revenues derived from a

25 project assisted under this subtitle, except that not more
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1 than 25 percent of the contribution required may be de2 rived from the proceeds of such bond financings. Any

3 State or local government funds used independently from

4 the program under this title, or designated for such use,

5 to assist the homeless by carrying out activities that would

6 be eligible for assistance under this subtitle shall be con7 sidered supplemental funds under this section.

8 ‘‘(c) STATES.—

9 ‘‘In the case of a State administering grant

10 amounts under section 410(b)(1)(A), in each fiscal

11 year, the State shall supplement the amount of

12 grants provided under this subtitle with an amount

13 of funds from sources other than this subtitle equal

14 to 50 percent of the amount received under this sub15 title. Each grantee that is a State shall obtain any

16 supplemental amounts from State recipients receiv17 ing amounts under the grant.

18 ‘‘(d) PROHIBITION OF SUBSTITUTION OF FUNDS.—

19 Assistance provided under this subtitle may not be used

20 to replace other public funds previously used, or des21 ignated for use, to assist persons who are homeless.

22 ‘‘(e) CERTIFICATION.—Each recipient shall certify, to

23 the satisfaction of the Secretary, its compliance with the

24 provisions of this section, which shall describe the sources
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1 and amounts of supplemental funds provided pursuant to

2 this section.

3 ‘‘SEC. 407. RESPONSIBILITIES OF RECIPIENTS AND

4 PROJECT SPONSORS.

5 ‘‘(a) USE OF ASSISTANCE THROUGH PRIVATE NON6 PROFIT ORGANIZATIONS.—Each recipient shall make

7 available more than 50 percent of the grant amounts it

8 receives for any fiscal year to project sponsors that are

9 private nonprofit organizations to carry out eligible activi10 ties under chapter 2, except that the Secretary may waive

11 the applicability of this requirement if the recipient dem12 onstrates to the Secretary that the requirement interferes

13 with the ability of the recipient to provide assistance under

14 this subtitle because of a paucity of qualified private non15 profit organizations in the jurisdiction of the recipient.

16 ‘‘(b) HOUSING QUALITY.—Each recipient shall en17 sure that housing assisted with grant amounts provided

18 under this subtitle is decent, safe, and sanitary and, when

19 appropriate, complies with all applicable State and local

20 housing codes, building codes, and licensing requirements

21 in the jurisdiction in which the housing is located.

22 ‘‘(c) PREVENTION OF UNDUE BENEFIT.—The Sec23 retary may prescribe such terms and conditions as the

24 Secretary considers necessary to prevent project sponsors

25 from unduly benefiting from the sale or other disposition
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1 of projects other than a sale or other disposition resulting

2 in the use of the project for the direct benefit of very low3 income families.

4 ‘‘(d) CONFIDENTIALITY.—Each recipient shall de5 velop and implement procedures to ensure the confiden6 tiality of records pertaining to any individual provided

7 family violence prevention or treatment services under any

8 project and to ensure that the address or location or any

9 family violence shelter project assisted with grant amounts

10 under this subtitle will, except with written authorization

11 of the person or person responsible for the operation of

12 such shelter, not be made public.

13 ‘‘(e) EMPLOYMENT OF HOMELESS INDIVIDUALS.—

14 To the maximum extent practicable, the Secretary shall

15 ensure that recipients involve, through employment, volun16 teer services, or otherwise, homeless individuals and fami17 lies in constructing, renovating, maintaining, and operat18 ing facilities assisted with grant amounts under this sub19 title, in providing services so assisted, and in providing

20 services for occupants of facilities so assisted.

21 ‘‘(f) PARTICIPATION OF HOMELESS INDIVIDUALS.—

22 The Secretary shall, by regulation, provide that each recip23 ient shall require each project sponsor receiving assistance

24 under this subtitle from the recipient to provide for the

25 participation of not less than one homeless individual or
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1 formerly homeless individual on the board of directors or

2 other equivalent policy making entity of the project spon3 sor, to the extent that such entity considers and makes

4 policies and decision regarding any project, facility, serv5 ices, or other activities assisted with grant amounts under

6 this subtitle. A recipient may grant waivers to project

7 sponsors unable to meet the requirement under the pre8 ceding sentence if the project sponsor agrees to otherwise

9 consult with homeless or formerly homeless individuals in

10 considering and making such policies and decisions.

11 ‘‘SEC. 408. APPLICATION.

12 ‘‘(a) REQUIREMENT.—Except as otherwise provided

13 in section 404(c), the Secretary may make a grant under

14 this subtitle only to an eligible grantee that submits an

15 application under this section that is approved by the

16 Secretary.

17 ‘‘(b) FORM AND PROCEDURE.—Applications shall be

18 submitted in such form and in accordance with such proce19 dures as the Secretary shall, by regulation, establish.

20 ‘‘(c) CONTENT.—An application under this section

21 shall—

22 ‘‘(1) include a detailed description, based on in23 formation provided in the current comprehensive

24 housing affordability strategy under section 105 of

25 the Cranston-Gonzalez National Affordable Housing
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1 Act for the appropriate jurisdiction or such other

2 plan as the Secretary may prescribe, of—

3 ‘‘(A) the existing population of homeless

4 individuals and families for the jurisdiction of

5 the applicant; and

6 ‘‘(B) the existing facilities and services de7 signed to assist such population;

8 ‘‘(2) include a detailed description of the com9 prehensive homeless assistance under section 405 to

10 be established and maintained within the jurisdiction

11 of the applicant;

12 ‘‘(3) provide an assessment of what is required

13 to establish and maintain the provision of com14 prehensive homeless assistance required under sec15 tion 405 for the jurisdiction of the applicant;

16 ‘‘(4) set forth a multiyear strategy for estab17 lishing and maintaining the provision of comprehen18 sive homeless assistance for the jurisdiction, as de19 scribed pursuant to paragraph (2), and include time20 tables, goals, and budget estimates for accomplishing

21 each element of the strategy;

22 ‘‘(5) set forth a 1-year action plan that identi23 fies all activities to be carried out with assistance

24 under this subtitle and demonstrates how such ac-
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1 tivities will further the strategy set forth pursuant to

2 paragraph (4);

3 ‘‘(6) except in the case of an application by a

4 State that elects under section 410(b)(1)(A) to ad5 minister grants under this subtitle, describe the

6 means the applicant will use to distribute grant

7 amounts to project sponsors and whether such

8 amounts will be awarded on a competitive or non9 competitive basis;

10 ‘‘(7) contain certifications or other such forms

11 of proof of commitments of financial and other re12 sources from each public agency or private nonprofit

13 organization that has a role in establishing and

14 maintaining the provision of comprehensive homeless

15 assistance for the jurisdiction of the applicant, re16 quired under section 405;

17 ‘‘(8) contain assurances satisfactory to the Sec18 retary that activities carried out under chapter 2

19 with grant amounts under this subtitle will comply

20 with the requirements of this subtitle;

21 ‘‘(9) in the case of an application by a State

22 that elects to under section 410(b)(1)(A) administer

23 grants under this subtitle, describe the method of

24 distribution of such amounts to State recipients;
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1 ‘‘(10) except with respect to an application by

2 a State that elects to under section 410(b)(1)(A) to

3 administer grants under this subtitle, contain a cer4 tification from the public official responsible for sub5 mitting the comprehensive housing affordability

6 strategy under section 105 of the Cranston-Gonzalez

7 National Affordable Housing Act for the State or

8 unit of general local government within which a

9 project is to be located (or such other plan as the

10 Secretary may require) that the proposed project is

11 consistent with the approved housing strategy of

12 such State or unit of general local government;

13 ‘‘(11) contain a certification that the applicant

14 will comply with the requirements of the Fair Hous15 ing Act, title VI of the Civil Rights Act of 1964, sec16 tion 504 of the Rehabilitation Act of 1973, and the

17 Age Discrimination Act of 1975, and will affirma18 tively further fair housing; and

19 ‘‘(12) contain a certification that the applicant

20 will comply with the requirements of this subtitle

21 and other applicable laws.

22 ‘‘(d) RELATIONSHIP TO CHAS AND CONSOLIDATED

23 PLAN.—In establishing requirements for applications

24 under this section, the Secretary shall provide that if an

25 applicant includes in the application information also re-
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1 quired under the comprehensive housing affordability

2 strategy for the appropriate jurisdiction under section 105

3 of the Cranston-Gonzalez National Affordable Housing

4 Act or such other plan as the Secretary may require, the

5 requirements under such subsection regarding such infor6 mation shall be considered to be fulfilled by the submission

7 of the application.

8 ‘‘SEC. 409. ALLOCATION AND DISTRIBUTION OF FUNDS.

9 ‘‘(a) INSULAR AREAS.—In each fiscal year, from any

10 amounts appropriated for such year to carry out this sub11 title, the Secretary shall allocate amounts to insular areas

12 in accordance with an allocation formula established by

13 the Secretary.

14 ‘‘(b) STATES AND ALLOCATION UNITS OF GENERAL

15 LOCAL GOVERNMENT.—

16 ‘‘(1) FORMULA ALLOCATION.—

17 ‘‘(A) IN GENERAL.—For each fiscal year,

18 of the amounts that remain after amounts are

19 reserved for insular areas under subsection (a),

20 the Secretary shall allocate assistance according

21 to this paragraph.

22 ‘‘(B) FORMULA.—The Secretary shall allo23 cate amounts under this paragraph using a for24 mula established by the Secretary that allocates

25 amounts for allocation units of general local
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1 government and States, and for Indian tribes,

2 in a manner that provides that the percentage

3 of the total amount referred to in subparagraph

4 (A) for any fiscal year that is allocated for any

5 State or allocation unit of general local govern6 ment, or for Indian tribes, is equal to the per7 centage of the total amount available for section

8 106 of the Housing and Community Develop9 ment Act of 1974 for the prior fiscal year that

10 was allocated for such State or allocation unit

11 of general local government, or for Indian

12 tribes.

13 ‘‘(C) MINIMUM AMOUNT.—If, in any fiscal

14 year, allocation under the provisions of subpara15 graphs (A) and (B) would result in any alloca16 tion unit of general local government receiving

17 a grant of less than 0.05 percent of the

18 amounts appropriated to carry out this subtitle

19 for the fiscal year, such amount shall instead be

20 reallocated to the State for use under section

21 410(b).

22 ‘‘(D) 70 PERCENT FOR UNITS OF GENERAL

23 LOCAL GOVERNMENT.—In each fiscal year, the

24 amount allocated under this paragraph for each

25 allocation unit of general local government shall
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1 be the amount that results from increasing all

2 of the amounts determined pursuant to the pre3 ceding subparagraphs for allocation units of

4 general local government on a pro rata basis so

5 that the sum of such amounts is equal to 70

6 percent of the remainder of the amount appro7 priated for the year to carry out this subtitle

8 after amounts are allocated for insular areas

9 under subsection (a).

10 ‘‘(E) 30 PERCENT FOR STATES.—In each

11 fiscal year, the amount allocated under this

12 paragraph for each State shall be the amount

13 that results from decreasing all of the amounts

14 determined pursuant to the preceding subpara15 graphs for States on a pro rata basis so that

16 the sum of such amounts is equal to 30 percent

17 of the remainder of the amount appropriated

18 for the year to carry out this subtitle after

19 amounts are allocated for insular areas under

20 subsection (a).

21 ‘‘(2) GRANT AMOUNT FOR STATES AND ALLO22 CATION UNITS OF GENERAL LOCAL GOVERNMENT.—

23 ‘‘(A) IN GENERAL.—The amount allocated

24 for a fiscal year under paragraph (1) for an al25 location unit of general local government or a
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1 State shall be the maximum amount that the

2 allocation unit or State may receive under this

3 subtitle for the fiscal year.

4 ‘‘(B) REDUCTION.—In any fiscal year, the

5 Secretary may provide a grant under this sub6 title for a State or for an allocation unit of gen7 eral local government in an amount less than

8 the amount allocated under paragraph (1), if

9 the Secretary determines based upon review of

10 the application of the jurisdiction under section

11 408 or as a result of the annual performance

12 review and audit under section 413, that the ju13 risdiction has failed to comply fully with the re14 quirements under section 408 or 411 or that

15 such action is otherwise appropriate.

16 ‘‘(3) MINIMUM STATE ALLOCATION.—Notwith17 standing paragraph (2), if, in allocating amounts for

18 States under paragraph (1) for any fiscal year, the

19 amount allocated for the year for a State is less

20 than $2,000,000, the allocation for the State shall

21 instead be $2,000,000 and the increase shall be de22 ducted pro rata from the allocations of other States.

23 ‘‘(c) REALLOCATIONS.—Any amounts that a State or

24 an allocation unit of general local government is eligible

25 to receive for a fiscal year under subsection (b) that are
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1 not received for use in the jurisdiction, as provided by sub2 sections (a) and (b) of section 410, or that become avail3 able as a result of actions under section 413(b), shall be

4 added to amounts available for allocation under this sec5 tion for the succeeding fiscal year.

6 ‘‘SEC. 410. ADMINISTRATION OF PROGRAM.

7 ‘‘(a) GRANTS TO ALLOCATION UNITS OF GENERAL

8 LOCAL GOVERNMENT, INDIAN TRIBES, AND INSULAR

9 AREAS.—

10 ‘‘(1) IN GENERAL.—Except as provided in para11 graphs (2), (3), and (4), an allocation unit of gen12 eral local government, Indian tribe, or insular area

13 shall administer grant amounts for any fiscal year

14 received under section 409 by such grantees.

15 ‘‘(2) ADMINISTRATION BY DESIGNEES OF JU16 RISDICTION.—

17 ‘‘(A) AUTHORITY TO ELECT.—An alloca18 tion unit of general local government, Indian

19 tribe, or insular area may elect for any fiscal

20 year to designate a public agency or a private

21 nonprofit organization (or a consortium of such

22 organizations) to administer grant amounts

23 under section 409 for the jurisdiction.

24 ‘‘(B) ELECTION REQUIREMENTS.—The

25 Secretary shall prescribe the manner and time
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1 for making an election under subparagraph (A),

2 and shall establish criteria for the approval of

3 agencies and organizations designated, which

4 shall require such agencies and organizations to

5 demonstrate experience of the entity in provid6 ing assistance to homeless individuals and fami7 lies in the jurisdiction.

8 ‘‘(C) DIRECT PROVISION OF ASSIST9 ANCE.—The Secretary may, at the request of

10 the jurisdiction, provide grant amounts directly

11 to the agency or organization designated under

12 this paragraph.

13 ‘‘(3) ADMINISTRATION BY DESIGNEES OF SEC14 RETARY.—If an allocation unit of general local gov15 ernment, Indian tribe, or insular area, or (if appro16 priate) a public agency or private nonprofit organi17 zation designated by the jurisdiction under para18 graph (2), does not receive a grant under section

19 409 for any fiscal year because of failure to meet the

20 application requirements of section 408, the Sec21 retary may designate an agency or organization

22 meeting the criteria established under paragraph

23 (2)(B) to receive the grant.

24 ‘‘(4) ADMINISTRATION BY SECRETARY.—If for

25 any fiscal year the Secretary determines that the
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1 grant amounts allocated under section 409 for an al2 location unit of general local government, Indian

3 tribe, or insular area will not be used in the jurisdic4 tion as provided by the preceding provisions of this

5 subsection, the Secretary may administer such

6 amounts for the jurisdiction. The Secretary shall

7 prescribe such procedures and requirements as the

8 Secretary considers appropriate for administering

9 grant amounts under this paragraph.

10 ‘‘(b) GRANTS TO STATES.—

11 ‘‘(1) IN GENERAL.—To receive an allocation

12 under section 409, each State shall elect—

13 ‘‘(A) to administer grant amounts received

14 under section 409, as provided in paragraphs

15 (2) and (3); or

16 ‘‘(B) to have the Secretary administer such

17 grant amounts for the State, as provided in

18 paragraph (5).

19 If a State elects to administer grant amounts under

20 subparagraph (A), the election shall be irrevocable.

21 ‘‘(2) STATE PROGRAM.—A State administering

22 grant amounts as provided in paragraph (1)(A)—

23 ‘‘(A) shall distribute the amounts remain24 ing after use in accordance with subparagraph
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1 (B) to State recipients for use under this sub2 title;

3 ‘‘(B) may use up to 15 percent of the

4 grant amounts received under section 409 to

5 carry out its own homeless assistance program

6 under this subtitle, except that—

7 ‘‘(i) such amounts may only be used

8 for eligible activities under chapter 2 for

9 which States are eligible recipients under

10 this subtitle; and

11 ‘‘(ii) the Secretary may increase the

12 percentage limitation under this subpara13 graph in the case of any State homeless

14 assistance program that is limited to pro15 viding assistance in areas of the State that

16 are not allocation units of general local

17 government; and

18 ‘‘(C) may retain not to exceed 5.0 percent

19 of the amount to be distributed under subpara20 graph (A) to State recipients to defray the cost

21 of carrying out its responsibilities under this

22 subtitle.

23 Unless a State demonstrates to the satisfaction of

24 the Secretary that the needs for assistance for ac25 tivities under this subtitle in areas of the State that
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1 are not allocation units of general local government

2 have been fulfilled, grant amounts received by State

3 may only be used to carry out activities in areas of

4 the State that do not include allocation units of gen5 eral local government.

6 ‘‘(3) DISTRIBUTION OF AMOUNTS TO STATE RE7 CIPIENTS.—

8 ‘‘(A) CHOICE OF ADMINISTRATION.—A

9 State administering grant amounts as provided

10 in paragraph (1)(A) shall, for each fiscal year,

11 afford each such recipient the options of—

12 ‘‘(i) administering the grant amounts

13 on its own behalf;

14 ‘‘(ii) designating a public agency or a

15 private nonprofit organization (as provided

16 by subsection (a)(2)) to administer the

17 grant amounts for the jurisdiction; or

18 ‘‘(iii) entering into an agreement with

19 the State, in consultation with private non20 profit organizations providing assistance to

21 homeless individuals and families in the ju22 risdiction, under which the State will ad23 minister the grant amounts for the juris24 diction.
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1 A recipient may choose to exercise such options

2 at such time and in accordance with such cri3 teria as the Secretary may prescribe.

4 ‘‘(B) DIRECT PROVISION OF ASSIST5 ANCE.—A State may, at the request of the

6 State recipient, provide grant amounts directly

7 to the agency or organization designated under

8 subparagraph (A)(ii).

9 ‘‘(C) DISTRIBUTION OF AMOUNTS.—The

10 State shall distribute amounts to State recipi11 ents (or to agencies or organizations designated

12 under subparagraph (A)(ii), as appropriate) on

13 the basis of an application containing such in14 formation as the State may prescribe. Each ap15 plication shall evidence an intent to establish

16 and maintain the provision of comprehensive

17 homeless assistance in the jurisdiction of the re18 cipient, except that the State may waive this re19 quirement with respect to one or more proposed

20 activities, where the State determines that—

21 ‘‘(i) the activities are necessary to

22 meet the needs of homeless individuals and

23 families within the jurisdiction; and

24 ‘‘(ii) comprehensive homeless assist25 ance is not necessary, due to the nature
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1 and extent of homelessness in the jurisdic2 tion.

3 ‘‘(D) PREFERENCE FOR CERTAIN STATE

4 RECIPIENTS.—In selecting State recipients and

5 making awards under subparagraph (C), the

6 State shall give preference to applications that

7 demonstrate higher relative levels of homeless

8 need and fiscal distress.

9 ‘‘(4) STATE OR HUD ADMINISTRATION OF

10 GRANTS FOR INDIVIDUAL STATE RECIPIENTS.—If in

11 any fiscal year a State distributes grant amounts to

12 a State recipient, but the recipient fails to receive

13 the amounts pursuant to paragraph (3)(A), the Sec14 retary or the State, as the Secretary may provide,

15 may distribute the amounts to private nonprofit or16 ganizations in the jurisdiction. If the Secretary dis17 tributes the amounts, the Secretary shall deduct the

18 amounts distributed from the grant provided to the

19 State for the fiscal year.

20 ‘‘(5) HUD ADMINISTRATION OF STATE PRO21 GRAM.—If a State elects pursuant to paragraph

22 (1)(B) to have the Secretary administer grant

23 amounts for the State received under section 409,

24 the Secretary may distribute grant amounts to State

25 recipients for the State, in accordance with require-
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1 ments and procedures prescribed by the Secretary.

2 The Secretary shall establish criteria for selecting

3 recipients and making awards under this paragraph,

4 which shall include giving preference to applications

5 that demonstrate higher relative levels of homeless

6 need and fiscal distress.

7 ‘‘SEC. 411. CITIZEN PARTICIPATION.

8 ‘‘(a) IN GENERAL.—Each grantee who is not a State

9 recipient shall ensure that citizens, and appropriate pri10 vate nonprofit organizations and other interested groups

11 and entities, participate fully in developing and carrying

12 out the program for providing assistance under this sub13 title in the jurisdiction of the recipient. The Secretary

14 shall prescribe such requirements to carry out this section

15 as the Secretary deems appropriate, which shall include

16 requirements applicable to the homeless assistance plan17 ning boards referred to in subsection (b) and the citizen

18 participation provisions of subsection (c), and the timing

19 of, and sequence for, carrying out the requirements of

20 such subsections.

21 ‘‘(b) HOMELESS ASSISTANCE PLANNING BOARDS.—

22 ‘‘(1) ESTABLISHMENT.—As a condition of a

23 grantee who is not a State recipient receiving assist24 ance under this subtitle, the chief executive officer of

25 the appropriate unit government in the jurisdiction
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1 of the grantee shall establish and provide support

2 for the operation of a homeless assistance planning

3 board under this subsection.

4 ‘‘(2) FUNCTIONS.—Each board under this sub5 section shall assist the recipient in—

6 ‘‘(A) determining whether grant amounts

7 of the grantee should be administered by the

8 grantee, a public agency or private nonprofit or9 ganization, or the State or the Secretary, under

10 subsections (a) and (b) of section 410;

11 (B) developing the application under sec12 tion 408;

13 (C) overseeing the activities carried out

14 with assistance under this subtitle; and

15 (D) evaluating the performance of the

16 grantee (and recipients of the grantee) in carry17 ing out such activities.

18 ‘‘(3) MEMBERSHIP.—Each board under this

19 subsection shall consist of members appointed by the

20 chief executive officer referred to in paragraph (1)

21 (subject to recommendations in accordance with

22 paragraph (4)), and shall include—

23 ‘‘(A) not less than one member represent24 ing homeless individuals and families;
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1 ‘‘(B) not less than one member represent2 ing homeless advocates;

3 ‘‘(C) not less than one member represent4 ing individuals and entities providing assistance

5 to homeless individuals and families, including

6 agencies of units of general local government

7 providing Federal assistance;

8 ‘‘(D) not less than one member represent9 ing the business community;

10 ‘‘(E) not less than one member represent11 ing labor;

12 ‘‘(F) not less than one member who is a

13 community representative;

14 ‘‘(G) not less than one member of the local

15 board established for the jurisdiction for pur16 poses of allocating amounts under the emer17 gency food and shelter program of the Federal

18 Emergency Management Agency;

19 ‘‘(H) not less than one member represent20 ing the grantee; and

21 ‘‘(I) in the case of a grantee that is a

22 State—

23 ‘‘(i) one member representing the

24 State agency or instrumentality dealing

25 with mental health; and
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1 ‘‘(ii) one member representing the

2 State agency or instrumentality dealing

3 with education.

4 ‘‘(4) DISTRIBUTION OF MEMBERSHIP.—Not less

5 than 50 percent of the members of each board under

6 this subsection (including the members required

7 under subparagraphs (A), (B), (C), and (G) of para8 graph (3)) shall be members of the board that rep9 resent homeless individuals and families, homeless

10 advocates, or nongovernmental entities that provide

11 assistance to homeless individuals and families. They

12 shall be individuals who were recommended for

13 membership by individuals and entities other than a

14 unit of general local government or any agency

15 thereof.

16 ‘‘(5) BOARD REVIEW.—

17 ‘‘(A) APPLICANTS.—No eligible grantee

18 may submit an application to the Secretary

19 under section 408, and no grantee may submit

20 to the Secretary a performance report under

21 subsection 413(a), unless the board under this

22 subsection for the jurisdiction of the grantee

23 has reviewed, and been provided an opportunity

24 to include any comments of the board in, the

25 application or report.
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1 ‘‘(B) STATE RECIPIENTS.—No State recip2 ient may submit an application under section

3 410(b)(3) or a performance report to a State,

4 unless the board under this subsection for the

5 jurisdiction has reviewed, and been provided an

6 opportunity to include any comments of the

7 board in, the application or report.

8 ‘‘(6) REVIEW BY SECRETARY.—A member or

9 members of the board under this subsection for a ju10 risdiction or other members of the community may

11 request the Secretary to review process for constitut12 ing or operating the board to determine whether the

13 process is fair. If the Secretary finds that the proc14 ess is unfair and submits a written justification to

15 the board within 15 days of the request for review,

16 the Secretary may disapprove the application under

17 section 408 for the jurisdiction or refuse to accept

18 a performance report under section 413(a).

19 ‘‘(7) CONFLICTS OF INTEREST.—The Secretary

20 shall prescribe standards governing potential con21 flicts of interest under which members of boards

22 under this subsection may participate in activities

23 carried out under this subtitle.

24 ‘‘(c) INVOLVEMENT OF CITIZENS AND OTHERS.—

25 ‘‘(1) IN GENERAL.—Each recipient shall—
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1 ‘‘(A) make available to its citizens, public

2 agencies, and other interested parties informa3 tion concerning the amount of assistance the ju4 risdiction expects to receive and the range of

5 activities that may be undertaken with the as6 sistance;

7 ‘‘(B) publish the proposed application in a

8 manner that, in the determination of the Sec9 retary, affords affected citizens, public agencies,

10 and other interested parties a reasonable oppor11 tunity to examine its content and to submit

12 comments on it;

13 ‘‘(C) hold one or more public hearings to

14 obtain the views of citizens, public agencies, and

15 other interested parties on the housing needs of

16 the jurisdiction; and

17 ‘‘(D) provide citizens, public agencies, and

18 other interested parties with reasonable access

19 to records regarding any uses of any assistance

20 the recipient may have received under this sub21 title during the preceding 5 years.

22 ‘‘(2) NOTICE AND COMMENT.—Before submit23 ting any performance report under section 413(a) or

24 any substantial amendment to an application under

25 section 408, a recipient shall provide citizens with
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1 reasonable notice of, and opportunity to comment

2 on, the performance report or application.

3 ‘‘(3) CONSIDERATION OF COMMENTS.—A recipi4 ent shall consider any comments or views of citizens

5 in preparing a final application, amendment to an

6 application, or performance report for submission. A

7 summary of such comments or views shall be at8 tached when an application, amendment to an appli9 cation, or performance report is submitted. The sub10 mitted application, amendment, or report shall be

11 made available to the public.

12 ‘‘(4) AUTHORITY OF SECRETARY.—The Sec13 retary shall establish procedures appropriate and

14 practicable for providing a fair hearing and timely

15 resolution of citizen complaints related to applica16 tions or performance reports under this subtitle.

17 ‘‘(d) REQUIREMENTS FOR CITIZEN PARTICIPATION

18 FOR STATE RECIPIENTS AND RECIPIENTS OF AMOUNTS

19 FROM THE SECRETARY.—

20 ‘‘(1) STATE RECIPIENTS.—The State may pre21 scribe citizen participation requirements comparable

22 (to the extent appropriate) to the requirements

23 under the preceding provisions of this section for

24 cases in which a State distributes grant amounts to

25 State recipients, as provided in section 410(b)(2).
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1 ‘‘(2) RECIPIENTS FROM SECRETARY.—The Sec2 retary may prescribe citizen participation require3 ments comparable (to the extent appropriate) to the

4 requirements under the preceding provisions of this

5 section for cases in which the Secretary—

6 ‘‘(A) administers the grant amounts of an

7 allocation unit of general local government, as

8 provided in section 410(a)(4); or

9 ‘‘(B) distributes grant amounts to recipi10 ents, as provided in paragraph (3), (4), or (5)

11 of section 410(b).

12 ‘‘(3) INAPPLICABLE LAWS.—The Federal Advi13 sory Committee Act and section 12 of the Depart14 ment of Housing and Urban Development Act shall

15 not apply with respect to the actions of the Sec16 retary referred to in paragraph (2). The Secretary

17 shall establish appropriate standards under this

18 paragraph to ensure the integrity of the process for

19 awarding assistance.

20 ‘‘SEC. 412. APPLICABILITY OF OTHER PROVISIONS.

21 ‘‘(a) FLOOD ELEVATION REQUIREMENTS.—Flood

22 protection standards applicable to housing acquired, reha23 bilitated, or assisted under this subtitle shall be no more

24 restrictive than the standards applicable to any other pro25 gram administrated by the Secretary.
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1 ‘‘(b) ENVIRONMENTAL PROTECTION.—The provi2 sions of, and regulations and procedures applicable under,

3 section 104(g) of the Housing and Community Develop4 ment Act of 1974 shall apply to assistance and projects

5 under this subtitle.

6 ‘‘(c) GAO AUDITS.—Insofar as they relate to funds

7 provided under this subtitle, the financial transactions of

8 grantees and project sponsors may be audited by the Gen9 eral Accounting Office under such rules and regulations

10 as may be prescribed by the Comptroller General of the

11 United States. The representatives of the General Ac12 counting Office shall have access to all books, accounts,

13 records, reports, files and other papers, things, or property

14 belonging to, or in use by such grantees, and project spon15 sors pertaining to the financial transactions and necessary

16 to facilitate the audit.

17 ‘‘SEC. 413. REPORTS, REVIEWS, AND AUDITS.

18 ‘‘(a) GRANTEE PERFORMANCE REPORT.—Each

19 grantee shall submit to the Secretary a performance and

20 evaluation report concerning the use of funds made avail21 able under this subtitle. The report shall be submitted at

22 such time and contain such information as the Secretary

23 shall prescribe, and shall be made available to the relevant

24 boards referred to in section 411(b) and to citizens, public

25 agencies, and other interested parties in the jurisdiction
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1 of the grantee in sufficient time to permit the board and

2 the citizens, public agencies, and other interested parties

3 to comment on the report before submission.

4 ‘‘(b) REVIEWS AND AUDITS.—The Secretary shall, at

5 least on an annual basis, make such reviews and audits

6 as may be necessary or appropriate to determine—

7 ‘‘(1) in the case of a grantee (other than a

8 grantee referred to in paragraph (2)), whether the

9 grantee—

10 ‘‘(A) has carried out its activities in a

11 timely manner;

12 ‘‘(B) has made progress toward establish13 ing and maintaining the comprehensive home14 less assistance system in conformity with its ap15 plication under this subtitle;

16 ‘‘(C) has carried out its activities and cer17 tifications in accordance with the requirements

18 of this subtitle and other applicable laws; and

19 ‘‘(D) has a continuing capacity to carry

20 out its activities in a timely manner; and

21 ‘‘(2) in the case of States distributing grant

22 amounts to State recipients, whether the State—

23 ‘‘(A) has distributed amounts to State re24 cipients in a timely manner and in conformance
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1 with the method of distribution described in its

2 application;

3 ‘‘(B) has carried out its activities and cer4 tifications in compliance with the requirements

5 of this subtitle and other applicable laws; and

6 ‘‘(C) has made such reviews and audits of

7 the State recipients as may be necessary or ap8 propriate to determine whether they have satis9 fied the applicable performance criteria con10 tained in paragraph (1).

11 The Secretary may make appropriate adjustments in the

12 amount of grants in accordance with the Secretary’s find13 ings under this subsection. With respect to assistance

14 made available for State recipients, the Secretary may ad15 just, reduce, or withdraw such assistance, or take other

16 action as appropriate in accordance with the Secretary’s

17 reviews and audits under this subsection, except that

18 amounts already properly expended on eligible activities

19 under this subtitle shall not be recaptured or deducted

20 from future assistance to such recipients.

21 ‘‘SEC. 414. NONDISCRIMINATION IN PROGRAMS AND AC22 TIVITIES.

23 ‘‘(a) IN GENERAL.—No person in the United States

24 shall on the ground of race, color, national origin, religion,

25 or sex be excluded from participation in, be denied the
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1 benefits of, or be subjected to discrimination under any

2 program or activity funded in whole or in part with funds

3 made available under this subtitle. Any prohibition against

4 discrimination on the basis of age under the Age Discrimi5 nation Act of 1975 or with respect to an otherwise quali6 fied handicapped individual, as provided in section 504 of

7 the Rehabilitation Act of 1973, shall also apply to any

8 such program or activity.

9 ‘‘(b) LIMITATIONS.—

10 ‘‘(1) INDIAN TRIBES.—No grant may be made

11 under this subtitle to an Indian tribe unless the ap12 plicant provides satisfactory assurances that its pro13 gram will be conducted and administered in con14 formity with title II of Public Law 90–284. The Sec15 retary may waive, in connection with grants to In16 dian tribes, the provisions of subsection (a).

17 ‘‘(2) HAWAIIAN HOME LANDS.—The provisions

18 of this subtitle relating to discrimination on the

19 basis of race shall not apply to the provision of as20 sistance under this subtitle to the Hawaiian Home

21 Lands.

22 ‘‘SEC. 415. CONSULTATION.

23 ‘‘In carrying out the provisions of this subtitle, in24 cluding the issuance of regulations, the Secretary shall

25 consult with other Federal agencies administering pro-
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1 grams affecting homeless individuals and families through

2 the Interagency Council on the Homeless established

3 under title II.

4 ‘‘SEC. 416. RECORDS, REPORTS, AND AUDITS.

5 ‘‘(a) KEEPING OF RECORDS.—Any recipient (includ6 ing a State distributing grant amounts to State recipients

7 as provided in section 410(b)(2)) shall keep such records

8 as may be reasonably necessary—

9 ‘‘(1) to disclose the amounts and the disposition

10 of the grant amounts; and

11 ‘‘(2) to ensure compliance with the require12 ments of this subtitle.

13 ‘‘(b) ACCESS TO DOCUMENTS BY SECRETARY.—The

14 Secretary shall have access for the purpose of audit and

15 examination to any books, documents, papers, and records

16 of any recipient specified in subsection (a) that are perti17 nent to grant amounts received in connection with, and

18 the requirements of, this subtitle.

19 ‘‘(c) ACCESS TO DOCUMENTS BY COMPTROLLER

20 GENERAL.—The Comptroller General of the United

21 States, or any of the duly authorized representatives of

22 the Comptroller General, shall have access for the purpose

23 of audit and examination to any books, documents, papers,

24 and records of any recipient specified in subsection (a)
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1 that are pertinent to grant amounts received in connection

2 with, and the requirements of, this subtitle.

3 ‘‘SEC. 417. REPORTS TO CONGRESS.

4 ‘‘The Secretary shall submit a report to the Congress

5 annually, summarizing the activities carried out under this

6 subtitle and setting forth the findings, conclusions, and

7 recommendations of the Secretary as a result of the activi8 ties. The report shall be submitted not later than 4

9 months after the end of each fiscal year (except that, in

10 the case of fiscal year 1995, the report shall be submitted

11 not later than 6 months after the end of the fiscal year).

12 ‘‘CHAPTER 2—ELIGIBLE ACTIVITIES

13 ‘‘SEC. 431. HOMELESSNESS PREVENTION.

14 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

15 grant amounts under this subtitle for activities designed

16 to help persons and families described in subsection (b)

17 avoid becoming homeless, which shall include assistance

18 for making mortgage payments, rental payments, and util19 ity payments and any activities other than those found by

20 the Secretary to be inconsistent with the purposes of this

21 Act.

22 ‘‘(b) REQUIREMENTS FOR ASSISTANCE.—Assistance

23 may be provided under this section only to very low-income

24 persons and families who have received eviction (or mort-
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1 gage delinquency or foreclosure) notices or notices of ter2 mination of utility services and who—

3 ‘‘(1) are unable to make the required payments

4 due to a sudden reduction in income;

5 ‘‘(2) need such assistance to avoid the eviction

6 or termination of services; and

7 ‘‘(3) have a reasonable prospect of being able to

8 resume payments within a reasonable period of time.

9 ‘‘SEC. 432. EMERGENCY SHELTER.

10 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

11 grant amounts under this subtitle for—

12 ‘‘(1) the renovation, major rehabilitation, or

13 conversion of a building or buildings to be used as

14 emergency shelters;

15 ‘‘(2) the provision of supportive services, if such

16 services do not supplant any services provided by the

17 local government during any part of the 12-month

18 period ending on the date of the commencement of

19 the operation of the emergency shelter; and

20 ‘‘(3) maintenance, operation, insurance, utili21 ties, and furnishings for emergency shelters.

22 ‘‘(b) DEFINITION.—A project shall be considered

23 emergency shelter for purposes of this section if the

24 project is designed to provide overnight sleeping accom25 modations for homeless persons. An emergency shelter
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1 may include appropriate eating and cooking accommoda2 tions.

3 ‘‘(c) PROGRAM REQUIREMENTS.—A recipient may

4 use grant amounts under this subtitle for an emergency

5 shelter project only if the project sponsor has agreed that

6 it will—

7 ‘‘(1) in the case of assistance involving major

8 rehabilitation or conversion of a building, maintain

9 the building as a shelter for homeless individuals

10 and families for not less than a 10-year period un11 less, within such 10-year period, the need for main12 taining the building as a full-time shelter ceases to

13 exist and the building is used for the remainder of

14 such period to carry out other eligible activities

15 under this subtitle;

16 ‘‘(2) in the case of assistance involving rehabili17 tation (other than major rehabilitation or conversion

18 of a building), maintain the building as a shelter for

19 homeless individuals and families for not less than

20 a 3-year period; or

21 ‘‘(3) in the case of assistance involving only ac22 tivities described in paragraphs (2) and (3) of sub23 section (a), provide services or shelter to homeless

24 individuals and families at the original site or struc25 ture or other sites or structures serving the same
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1 general population for the period during which such

2 assistance is provided;

3 ‘‘(4) comply with the standards of habitability

4 prescribed under subsection (d) by the Secretary and

5 (if applicable) the State or unit of general local gov6 ernment; and

7 ‘‘(5) assist homeless persons in obtaining—

8 ‘‘(A) appropriate supportive service, includ9 ing permanent housing, medical and mental

10 health treatment, counseling, supervision, and

11 other services essential for achieving independ12 ent living; and

13 ‘‘(B) other Federal, State, local, and pri14 vate assistance available for homeless persons.

15 ‘‘(d) MINIMUM STANDARDS OF HABITABILITY.—The

16 Secretary shall prescribe such minimum standards of hab17 itability as the Secretary determines to be appropriate to

18 ensure that emergency shelters assisted under this section

19 are environments that provide appropriate privacy, safety,

20 and sanitary and other health-related conditions for home21 less persons and families. Grantees may establish stand22 ards of habitability in addition to those prescribed by the

23 Secretary.
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1 ‘‘SEC. 433. SUPPORTIVE HOUSING FOR THE HOMELESS.

2 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

3 grant amounts under this subtitle to provide assistance to

4 a project sponsor of supportive housing in the following

5 manners:

6 ‘‘(1) ACQUISITION AND REHABILITATION.—As7 sistance may be provided in the form of an advance

8 in an amount not exceeding cost of acquisition, sub9 stantial rehabilitation, or acquisition and rehabilita10 tion of an existing structure for use as supportive

11 housing. The repayment of any outstanding debt

12 owed on a loan made to purchase an existing struc13 ture shall be considered to be a cost of acquisition

14 eligible for an advance under this paragraph if the

15 structure was not used as supportive housing before

16 the receipt of assistance.

17 ‘‘(2) MODERATE REHABILITATION.—Assistance

18 may be provided in the form of a grant for moderate

19 rehabilitation of an existing structure for use as sup20 portive housing. Assistance under this paragraph

21 shall not preclude assistance under paragraph (1).

22 ‘‘(3) OPERATING COSTS.—Assistance may be

23 provided in the form of annual payments for operat24 ing costs of supportive housing (including supportive

25 housing that is newly constructed with assistance

26 provided from sources other than this subtitle) in an
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1 amount not exceeding 75 percent of the annual oper2 ating costs of such housing.

3 ‘‘(4) TECHNICAL ASSISTANCE.—Technical as4 sistance may be provided in—

5 ‘‘(A) establishing supportive housing in an

6 existing structure;

7 ‘‘(B) operating supportive housing in exist8 ing structures and in structures that are newly

9 constructed with assistance provided from

10 sources other than this subtitle; and

11 ‘‘(C) providing supportive services to the

12 residents of supportive housing (including sup13 portive housing that is newly constructed with

14 assistance provided from sources other than

15 this subtitle).

16 ‘‘(5) EMPLOYMENT ASSISTANCE PROGRAM.—

17 Assistance may be provided in the form of a grant

18 for establishing and operating an employment assist19 ance program for the residents of supportive hous20 ing, which shall include—

21 ‘‘(A) employment of residents in the oper22 ation and maintenance of the housing; and

23 ‘‘(B) the payment of the transportation

24 costs of residents to places of employment.
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1 ‘‘(6) SUPPORTIVE SERVICES.—Assistance may

2 be provided in the form of a grant for costs of sup3 portive services provided to homeless individuals.

4 Any project sponsor, including program recipients

5 under title IV of this Act before the date of the en6 actment of the Housing and Community Develop7 ment Act of 1994, may reapply for such assistance

8 or for the renewal of such assistance to continue

9 services funded under prior grants or to provide

10 other services.

11 ‘‘(7) CHILD CARE SERVICES.—Assistance may

12 be provided in the form of a grant to establish and

13 operate a child care services program for homeless

14 families, which shall—

15 ‘‘(A) include—

16 ‘‘(i) establishing, licensing, and oper17 ating an onsite child care facility for the

18 residents of transitional housing;

19 ‘‘(ii) making contributions for the

20 child care costs of residents of transitional

21 housing to existing community child care

22 programs and facilities; and

23 ‘‘(iii) counseling designed to inform

24 the residents of transitional housing of
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1 public and private child care services for

2 which they are eligible; and

3 ‘‘(B) provide only child care services that

4 comply with any applicable State and local laws

5 and regulations.

6 A grant under this paragraph for any child care

7 services program may not exceed the amount equal

8 to 75 percent of the cost of operating the program

9 for a period not exceeding 5 years.

10 ‘‘(b) SUPPORTIVE HOUSING.—Housing for homeless

11 individuals shall be considered to be supportive housing

12 for purposes of this section if—

13 ‘‘(1) the housing is safe and sanitary and meets

14 any applicable State and local housing codes and li15 censing requirements in the jurisdiction in which the

16 housing is located;

17 ‘‘(2) the housing is—

18 ‘‘(A) transitional housing;

19 ‘‘(B) permanent housing for homeless per20 sons with disabilities; or

21 ‘‘(C) a particularly innovative project for,

22 or alternative methods of, meeting the imme23 diate and long-term needs of homeless individ24 uals and families (or is part of such a project);

25 and
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1 ‘‘(3) supportive services are provided in connec2 tion with the housing to address the special needs of

3 homeless individuals intended to be served by the

4 housing.

5 ‘‘(c) TRANSITIONAL HOUSING.—For purposes of this

6 section, the term ‘transitional housing’ means housing, the

7 purpose of which is to facilitate the movement of homeless

8 individuals and families to permanent housing within 24

9 months or such longer period as the Secretary determines

10 necessary.

11 ‘‘(d) PERMANENT HOUSING FOR HOMELESS PER12 SONS WITH DISABILITIES.—For purposes of this section,

13 the term ‘permanent housing for homeless persons with

14 disabilities’ means community-based housing for homeless

15 persons with disabilities that—

16 ‘‘(1) is a home designed solely for housing

17 homeless persons with disabilities or dwelling units

18 in a multifamily housing project, condominium

19 project, or cooperative project;

20 ‘‘(2) in the case of a home, is located on a site

21 that does not contain another home used for the

22 same purposes and that is not contiguous to another

23 site containing a home used for the same purposes;

24 and
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1 ‘‘(3) provides long-term housing and supportive

2 services for not more than—

3 ‘‘(A) 8 such persons in a single structure

4 or contiguous structures;

5 ‘‘(B) 16 such persons, but only if not more

6 than 20 percent of the units in a structure are

7 designated for such persons; or

8 ‘‘(C) more than 16 persons if the applicant

9 demonstrates that local market conditions dic10 tate the development of a large project and

11 such development will achieve the neighborhood

12 integration objectives of the program within the

13 context of the affected community.

14 ‘‘(e) PROGRAM REQUIREMENTS.—

15 ‘‘(1) REQUIRED AGREEMENTS.—A recipient

16 may use grant amounts under this subtitle for a

17 supportive housing project under this section only if

18 the project sponsor for the project has agreed—

19 ‘‘(A) to operate the proposed project as

20 supportive housing for not less than 10 years;

21 ‘‘(B) to conduct an ongoing assessment of

22 the supportive services required by the residents

23 of the project;

24 ‘‘(C) to provide such residential supervision

25 as the Secretary determines is necessary to fa-
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1 cilitate the adequate provision of supportive

2 services to the residents of the project; and

3 ‘‘(D) to comply with such other terms and

4 conditions as the Secretary or recipient may es5 tablish for purposes of carrying out this pro6 gram in an effective and efficient manner.

7 ‘‘(2) OCCUPANT CHARGE.—Each homeless indi8 vidual or family residing in a project assisted under

9 this section that provides supportive housing may be

10 required to pay an occupancy charge in an amount

11 determined by the project sponsor, which may not

12 exceed the amount determined under section 3(a) of

13 the United States Housing Act of 1937. Occupancy

14 charges paid may be reserved, in whole or in part,

15 to assist residents in moving to permanent housing.

16 ‘‘(f) SINGLE ROOM OCCUPANCY DWELLINGS.—A

17 project assisted under this section may provide supportive

18 housing or supportive services in dwelling units that do

19 not contain bathrooms or kitchen facilities and are appro20 priate for use as supportive housing or in projects contain21 ing some or all such dwelling units.

22 ‘‘SEC. 434. SAFE HAVENS FOR HOMELESS INDIVIDUALS.

23 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

24 grant amounts under this subtitle for—
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1 ‘‘(1) the construction of a structure for use in

2 providing a safe haven or the acquisition, rehabilita3 tion, or acquisition and rehabilitation of an existing

4 structure for use in providing a safe haven;

5 ‘‘(2) the leasing of an existing structure for use

6 in providing a safe haven;

7 ‘‘(3) operating costs of a safe haven;

8 ‘‘(4) costs of administering a safe haven pro9 gram, in an amount not exceeding 10 percent of the

10 amounts made available for activities under para11 graphs (1) through (3);

12 ‘‘(5) conducting outreach activities designed to

13 inform eligible persons about and attract them to a

14 safe haven program;

15 ‘‘(6) the provision of low-demand services and

16 referrals for residents of a safe haven; and

17 ‘‘(7) conducting other activities that further the

18 purposes of this section, including the modification

19 of an existing facility to use a portion of a facility

20 to provide a safe haven.

21 ‘‘(b) DEFINITION.—For purposes of this section, the

22 term ‘safe haven’ means housing for homeless persons

23 who, at the time, are unwilling or unable to participate

24 in mental health treatment programs or to receive other

25 supportive services. Such a facility may provide—
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1 ‘‘(1) 24-hour residence for eligible persons who

2 may reside for an unspecified duration;

3 ‘‘(2) private or semiprivate accommodations;

4 ‘‘(3) common use of kitchen facilities, dining

5 rooms, and bathrooms;

6 ‘‘(4) supportive services to eligible persons who

7 are not residents on a drop-in basis; and

8 ‘‘(5) overnight occupancy limited to no more

9 than 25 persons.

10 ‘‘SEC. 435. SHELTER PLUS CARE.

11 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

12 grant amounts under this subtitle to provide shelter plus

13 care for homeless persons with disabilities (primarily per14 sons who have severe and persistent mental or emotional

15 impairments that seriously limit a person’s ability to live

16 independently, have chronic programs with alcohol, drugs,

17 or both, or have acquired immunodeficiency syndrome and

18 related diseases) and the families of such persons.

19 ‘‘(b) DEFINITION.—For purposes of this section, the

20 term ‘shelter plus care’ means rental housing assistance,

21 in connection with supportive services funded from sources

22 other than under this section. Such rental housing assist23 ance may be tenant-based, project-based, or sponsor24 based.
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1 ‘‘SEC. 436. ADMINISTRATIVE AND CAPACITY-BUILDING EX2 PENSES.

3 ‘‘(a) AVAILABILITY OF GRANT AMOUNTS.—A recipi4 ent may use grant amounts under this subtitle for the fol5 lowing expenses:

6 ‘‘(1) ADMINISTRATIVE EXPENSES.—During—

7 ‘‘(A) the first year in which a recipient re8 ceives grant amounts under this subtitle, for

9 administrative expenses in connection with

10 planning the development of, and establishing,

11 its program under this subtitle;

12 ‘‘(B) subsequent years, to defray the cost

13 of administering the program; and

14 ‘‘(C) any year in which a recipient receives

15 grant amounts under this subtitle, to defray the

16 cost of establishing and operating the board re17 ferred to in section 411(b).

18 Not more than 5 percent of any amounts provided

19 to a recipient under this subtitle for a fiscal year

20 may be used for activities under this paragraph.

21 ‘‘(2) CAPACITY BUILDING FOR NONPROFIT OR22 GANIZATIONS.—For building the capacity of private

23 nonprofit organizations to participate in the com24 prehensive homeless assistance system of the recipi25 ent, except that not more than 2 percent of any

26 amounts provided to a recipient under this subtitle
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1 for a fiscal year may be used for activities under this

2 paragraph.

3 ‘‘(b) PROVISION OF ADMINISTRATIVE EXPENSES FOR

4 CERTAIN ENTITIES.—

5 ‘‘(1) PROVISION OF AMOUNTS.—Any recipient

6 under paragraph (2) shall make available, to defray

7 the administrative expenses of the designee or the

8 State, not more than 5 percent from amounts eligi9 ble for this purpose under subsection (a)(1).

10 ‘‘(2) RECIPIENTS COVERED.—The recipients

11 under this paragraph shall be—

12 ‘‘(A) any allocation unit of general local

13 government, Indian Tribe, or insular area, that

14 designates a public agency or a private non15 profit organization under section 410(a)(2);

16 ‘‘(B) any State recipient that designates a

17 public agency or a private nonprofit organiza18 tion under section 410(b)(3)(A)(ii); and

19 ‘‘(C) any State recipient that enters into

20 an agreement under section 410(b)(3)(A)(iii)

21 with a State.

22 ‘‘SEC. 437. INNOVATIVE HOMELESS INITIATIVES.

23 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

24 grant amounts under this subtitle for—
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1 ‘‘(1) establishing innovative programs to dem2 onstrate methods of undertaking comprehensive

3 strategies for assisting homeless individuals and

4 families (including homeless individuals who have

5 the disease of acquired immunodeficiency syndrome

6 or who are infected with HIV), through cooperative

7 efforts in partnership with other levels of govern8 ment and the private sector (including nonprofit or9 ganizations, foundations, and communities) and

10 through a variety of activities, including the coordi11 nation of efforts and the filling of gaps in available

12 services and resources; and

13 ‘‘(2) to obtain technical assistance in establish14 ing a program for providing homeless assistance in

15 accordance with the provisions of this subtitle, ex16 cept that not more than 10 percent of the amount

17 provided to a recipient under this subtitle for a fiscal

18 year may be used under this paragraph.

19 ‘‘(b) REQUIREMENTS.—A recipient may use grant

20 amounts to establish an innovative program under sub21 section (a)(1) only if—

22 ‘‘(1) the existing public and private systems for

23 homelessness prevention, outreach, assessment, shel24 ter, services, transitional services, transitional hous25 ing, and permanent housing available within the ju-
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1 risdiction of the recipient would benefit from addi2 tional resources to achieve a comprehensive ap3 proach to meeting the needs of individuals and fami4 lies who are homeless, or who are very low-income

5 and at risk of homelessness;

6 ‘‘(2) the recipient works cooperatively with the

7 Department of Housing and Urban Development,

8 nonprofit organizations, foundations, other private

9 entities, and the community, to the extent feasible,

10 to design and implement the program; and

11 ‘‘(3) the recipient obtains a commitment from

12 the jurisdiction to make necessary changes in policy

13 and procedure to provide sufficient flexibility and re14 sources as necessary to implement and sustain the

15 program.

16 ‘‘SEC. 438. OTHER APPROVED ACTIVITIES.

17 ‘‘The Secretary, in cooperation with grantees, recipi18 ents, and other appropriate parties, shall develop addi19 tional activities to carry out the purposes of this subtitle.

20 A recipient may use grants amounts under this subtitle

21 to carry out any such activities developed and approved

22 by the Secretary.
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1 ‘‘Subtitle B—Other Permanent Housing

2 Assistance Programs for the Homeless’’.

3 SEC. 312. REGULATIONS AND TRANSITION PROVISIONS.

4 (a) IN GENERAL.—Not later than April 1, 1995, the

5 Secretary of Housing and Urban Development (in this sec6 tion referred to as the ‘‘Secretary’’) shall publish final reg7 ulations to implement the amendments made by this sub8 title. The final rule shall be published after notice and op9 portunity for public comment in accordance with section

10 553 of title 5, United States Code.

11 (b) TRANSITION PROVISIONS.—

12 (1) EMERGENCY SHELTER GRANTS PROGRAM.—

13 Notwithstanding any other provision of law, during

14 fiscal year 1995, the Secretary shall allocate grants

15 from amounts available for such year under subtitle

16 A of title IV of the Stewart B. McKinney Homeless

17 Assistance Act (as amended by this Act) in accord18 ance with the provisions of subtitle B of title IV of

19 the Stewart B. McKinney Homeless Assistance Act

20 (Emergency Shelter Grants), as such provisions ex21 isted immediately before the enactment of this Act.

22 (2) FAILURE TO PUBLISH REGULATIONS.—

23 (A) IN GENERAL.—If the Secretary fails to

24 publish final regulations as provided by sub25 section (a), the Secretary shall distribute the
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1 amounts available for fiscal year 1995 under

2 subtitle A of title IV of the Stewart B. McKin3 ney Homeless Assistance Act (as amended by

4 this Act) (excluding amounts allocated under

5 paragraph (1)) in accordance with the following

6 provisions of title IV of the Stewart B. McKin7 ney Homeless Assistance Act, as such provi8 sions existed immediately before the enactment

9 of this Act:

10 (i) Subtitle C (Supportive Housing).

11 (ii) Subtitle D (Safe Havens).

12 (iii) Subtitle F (Shelter Plus Care).

13 (B) PROCEDURE.—For purposes of award14 ing assistance under this paragraph, the Sec15 retary may, as appropriate—

16 (i) provide for use of a single applica17 tion; and

18 (ii) publish a single notice of funding

19 availability.

20 (3) MINIMUM AMOUNTS.—The Secretary shall

21 determine the amount to be allocated for each of the

22 programs referred to in this subsection, but the

23 amount so allocated for each such program shall not

24 be less than the amount appropriated for the pro25 gram for fiscal year 1994.
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1 (c) TECHNICAL ASSISTANCE.—Of any amounts ap2 propriated to carry out section 2 of the HUD Demonstra3 tion Act of 1993 in fiscal year 1995, the Secretary may

4 use not more than 10 percent for providing technical as5 sistance to assist recipients under subtitle A of title IV

6 of the Stewart B. McKinney Homeless Assistance Act (as

7 amended by this subtitle) to establish a program for pro8 viding homeless assistance in accordance with the provi9 sions of such subtitle A.

10 SEC. 313. REPORT ON SINGLE ROOM OCCUPANCY ASSIST11 ANCE.

12 Not later than July 1, 1995, the Secretary shall sub13 mit a report to the Congress evaluating the effectiveness

14 of combining the programs for assistance for single room

15 occupancy dwellings under sections 451 and 452 of the

16 Stewart B. McKinney Homeless Assistance Act (as so re17 designated and amended by this Act) into the program

18 for assistance under subtitle A of title IV of such Act and,

19 if effective, describing how to provide such assistance

20 under the program under such subtitle A.
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1 Subtitle B—Other Housing Assistance Pro2 grams for the Homeless Under McKinney

3 Act

4 SEC. 321. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCU5 PANCY DWELLINGS.

6 Section 451 of the Stewart B. McKinney Homeless

7 Assistance Act (42 U.S.C. 11401(a)), as so redesignated

8 by section 311(3) of this Act, is amended—

9 (1) in the second sentence of subsection (c), in

10 the matter preceding paragraph (1), by striking

11 ‘‘containing’’ and inserting the following: ‘‘for the

12 provision of assistance under this section that is spe13 cifically provided for in the comprehensive homeless

14 assistance described in the application under section

15 408 of the relevant eligible grantee and that con16 tains’’; and

17 (2) in subsection (j)(1), by inserting ‘‘recipient

18 under subtitle A,’’ after ‘‘authority,’’.

19 SEC. 322. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE

20 SINGLE ROOM OCCUPANCY DWELLINGS.

21 Title IV of the Stewart B. McKinney Homeless As22 sistance Act (42 U.S.C. 11361 et seq.) is amended by in23 serting after section 451, as so redesignated by section

24 311(3) of this Act, the following new section:
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1 ‘‘SEC. 452. SECTION 8 ASSISTANCE FOR SHELTER PLUS

2 CARE SINGLE ROOM OCCUPANCY DWELL3 INGS.

4 ‘‘(a) PURPOSE.—The purpose of the program under

5 this section is to provide assistance for the moderate reha6 bilitation of single room occupancy housing to be made

7 available for rental, in connection with supportive services

8 funded from sources other than this section, to homeless

9 persons with disabilities (primarily persons who are seri10 ously mentally ill, have chronic problems with alcohol,

11 drugs, or both, or have acquired immunodeficiency syn12 drome and related diseases) and the families of such

13 persons.

14 ‘‘(b) MODERATE REHABILITATION ASSISTANCE.—

15 The Secretary may use amounts made available to carry

16 out this section for moderate rehabilitation of single room

17 occupancy housing described in section 8(l) of the United

18 States Housing Act of 1937 for occupancy by eligible per19 sons in accordance with this section. Such amounts may

20 be used in connection with the moderate rehabilitation of

21 efficiency units if the building owner agrees to pay the

22 additional cost of rehabilitating and operating the effi23 ciency units.

24 ‘‘(c) FUNDING LIMITATIONS.—

25 ‘‘(1) TARGETED POPULATIONS.—To the maxi26 mum extent practicable, the Secretary shall reserve
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1 not less than 50 percent of all amounts made avail2 able to carry out this section for homeless individ3 uals who are seriously mentally ill or have chronic

4 problems with alcohol, drugs, or both.

5 ‘‘(2) GEOGRAPHICAL LIMITATION.—Of the as6 sistance made available under this section for any

7 fiscal year, not more than 10 percent may be used

8 for programs located within any one unit of general

9 local government.

10 ‘‘(d) SUPPORTIVE SERVICES REQUIREMENTS.—

11 ‘‘(1) REQUIREMENT OF MATCHING AMOUNTS.—

12 Each recipient of assistance under this section shall

13 supplement the assistance provided under this sec14 tion with an equal amount of funds for supportive

15 services from sources other than this section. Each

16 recipient shall certify to the Secretary its compliance

17 with this paragraph, and shall include with the cer18 tification a description of the sources and amounts

19 of such supplemental funds.

20 ‘‘(2) DETERMINATION OF MATCHING

21 AMOUNTS.—In calculating the amount of supple22 mental funds provided under this section, a recipient

23 may include the value of any lease on a building, any

24 salary paid to staff to carry out the program of the

25 recipient, and the value of the time and services con-
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1 tributed by volunteers to carry out the program of

2 the recipient at a rate determined by the Secretary.

3 ‘‘(3) RECAPTURE.—If the supportive services

4 and funding for the supportive services required by

5 this subsection are not provided by a recipient, the

6 Secretary may recapture any unexpended housing

7 assistance provided under this section to the recipi8 ent.

9 ‘‘(e) CONTRACT REQUIREMENTS.—Each contract for

10 annual contributions entered into by the Secretary with

11 a public housing agency to obligate budget authority made

12 available to carry out this section shall—

13 ‘‘(1) commit the Secretary to make the author14 ity available to the public housing agency for an ag15 gregate period of 10 years, and require that any

16 amendments increasing the authority shall be avail17 able for the remainder of such 10-year period;

18 ‘‘(2) provide the Secretary with the option to

19 renew the contract for an additional period of 10

20 years, subject to the availability of authority;

21 ‘‘(3) provide that, notwithstanding any other

22 provision of law, first priority for occupancy of hous23 ing rehabilitated under this section shall be given to

24 homeless persons; and
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1 ‘‘(4) require installation in the housing assisted

2 of a sprinkler system that protects all major spaces,

3 hard-wired smoke detectors, and any other fire safe4 ty improvements as may be required by State or

5 local law.

6 For purposes of this subsection, the term ‘major spaces’

7 means hallways, large common areas, and other areas

8 specified in local fire, building, or safety codes.

9 ‘‘(f) APPLICATIONS.—

10 ‘‘(1) IN GENERAL.—An application for rental

11 housing assistance under this section shall be sub12 mitted by an applicant in such form and in accord13 ance with such procedures as the Secretary shall es14 tablish.

15 ‘‘(2) MINIMUM CONTENTS.—The Secretary

16 shall require that an application identify the need

17 for the assistance in the community to be served and

18 shall contain at a minimum—

19 ‘‘(A) a request for housing assistance

20 under this section specifying the number of

21 units requested and the amount of necessary

22 budget authority;

23 ‘‘(B) a description of the size and charac24 teristics of the population of eligible persons;
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1 ‘‘(C) an identification of the need for the

2 program in the community to be served;

3 ‘‘(D) the identity of the proposed service

4 provider or providers (which may be, or include,

5 the applicant) and a statement of the qualifica6 tions of the provider or providers;

7 ‘‘(E) a description of the supportive serv8 ices that the applicant proposes to assure will

9 be available for eligible persons;

10 ‘‘(F) a description of the resources that

11 are expected to be made available to provide the

12 supportive services required by subsection (d);

13 ‘‘(G) a description of the mechanisms for

14 developing a housing and supportive services

15 plan for each person and for monitoring each

16 person’s progress in meeting that plan;

17 ‘‘(H) reasonable assurances satisfactory to

18 the Secretary that the supportive services will

19 be provided for the full term of the housing as20 sistance under this section and a certification

21 from the applicant that it will fund the support22 ive services itself if the planned resources do

23 not become available for any reason;

24 ‘‘(I) a certification by the public official re25 sponsible for submitting the comprehensive
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1 housing affordability strategy under section 105

2 of the Cranston-Gonzalez National Affordable

3 Housing Act that the proposed activities are

4 consistent with the approved housing strategy

5 of the unit of general local government within

6 which housing assistance under this section will

7 be provided; and

8 ‘‘(J) identification of the specific struc9 tures that the recipient is proposing for assist10 ance.

11 ‘‘(g) SELECTION CRITERIA.—The Secretary shall es12 tablish selection criteria for a national competition for as13 sistance under this section which shall include—

14 ‘‘(1) the ability of the applicant to develop and

15 operate the proposed assisted housing and support16 ive services program, taking into account the quality

17 of any ongoing program of the applicant;

18 ‘‘(2) geographic diversity among the projects to

19 be assisted;

20 ‘‘(3) the need for a program providing housing

21 assistance and supportive services for eligible per22 sons in the area to be served;

23 ‘‘(4) the quality of the proposed program for

24 providing supportive services and housing assistance;
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1 ‘‘(5) the extent to which the proposed funding

2 for the supportive services is or will be available;

3 ‘‘(6) the extent to which the project would meet

4 the needs of the homeless persons proposed to be

5 served by the program;

6 ‘‘(7) the extent to which the program integrates

7 program recipients into the community served by the

8 program;

9 ‘‘(8) the cost-effectiveness of the proposed pro10 gram; and

11 ‘‘(9) such other factors as the Secretary speci12 fies in regulations to be appropriate for purposes of

13 carrying out the program established by this section

14 in an effective and efficient manner.

15 ‘‘(h) PARTICIPATION OF HOMELESS INDIVIDUALS.—

16 The Secretary shall, by regulation, require each recipient

17 of assistance under this section to provide for the consulta18 tion and participation of not less than one homeless indi19 vidual or former homeless individual on the board of direc20 tors or other equivalent policymaking entity of the recipi21 ent, to the extent that such entity considers and makes

22 policies and decisions regarding any housing assisted

23 under this section or services for such housing. The Sec24 retary may grant waivers to recipients unable to meet the

25 requirement under the preceding sentence if the recipient
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1 agrees to otherwise consult with homeless or formerly

2 homeless individuals in considering and making such poli3 cies and decisions.

4 ‘‘(i) REQUIRED AGREEMENTS.—The Secretary may

5 not approve assistance under this section for an applicant

6 unless the applicant agrees—

7 ‘‘(1) to operate the proposed program in ac8 cordance with the provisions of this section;

9 ‘‘(2) to conduct an ongoing assessment of the

10 housing assistance and supportive services required

11 by the participants in the program;

12 ‘‘(3) to ensure the adequate provision of sup13 portive services to the participants in the program;

14 ‘‘(4) to comply with such other terms and con15 ditions as the Secretary may establish for purposes

16 of carrying out the program in an effective and effi17 cient manner; and

18 ‘‘(5) to the maximum extent practicable, to in19 volve homeless individuals and families, through em20 ployment volunteer services, or otherwise, in con21 structing or rehabilitating housing assisted under

22 this section and in providing services required under

23 this section.

24 ‘‘(j) HOUSING STANDARDS AND RENT REASONABLE25 NESS.—
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1 ‘‘(1) STANDARDS REQUIRED.—The Secretary

2 shall require that—

3 ‘‘(A) before any assistance may be pro4 vided to or on behalf of a person, each unit as5 sisted under this section shall be inspected by

6 the applicant directly or by another entity, in7 cluding the local public housing agency, to de8 termine that the unit meets the housing quality

9 standards under section 8 of the United States

10 Housing Act of 1937 and that the occupancy

11 charge for the dwelling unit is reasonable; and

12 ‘‘(B) the recipient shall make at least an13 nual inspections of each unit assisted under this

14 section during the term of the contract for such

15 assistance.

16 ‘‘(2) PROHIBITION.—No assistance may be pro17 vided under this section for a dwelling unit (A) for

18 which the occupancy charge is not reasonable, or (B)

19 which fails to meet the housing standards, unless the

20 owner promptly corrects the deficiency and the re21 cipient verifies the correction.

22 ‘‘(k) TENANT RENT.—Each tenant of a dwelling unit

23 assisted under this section shall pay as rent an amount

24 determined in accordance with the provisions of section

25 3(a)(1) of the United States Housing Act of 1937.
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1 ‘‘(l) ADMINISTRATIVE FEES.—From amounts made

2 available to carry out this section, the Secretary shall

3 make amounts available to pay the entity administering

4 the housing assistance an administrative fee in an amount

5 determined appropriate by the Secretary for the costs of

6 administering the housing assistance.

7 ‘‘(m) OCCUPANCY.—

8 ‘‘(1) OCCUPANCY AGREEMENT.—The occupancy

9 agreement between a tenant and an owner of a

10 dwelling unit assisted under this section shall be for

11 at least 1 month.

12 ‘‘(2) VACANCY PAYMENTS.—If an eligible per13 son vacates a dwelling unit assisted under this sec14 tion before the expiration of the occupancy agree15 ment, no assistance payment may be made with re16 spect to the unit after the month that follows the

17 month during which the unit was vacated, unless it

18 is occupied by another eligible person.

19 ‘‘(n) TERMINATION OF ASSISTANCE.—

20 ‘‘(1) AUTHORITY.—If an eligible individual who

21 receives assistance under this section violates pro22 gram requirements, the recipient may terminate as23 sistance in accordance with the process established

24 pursuant to paragraph (2).
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1 ‘‘(2) PROCEDURE.—In terminating assistance

2 under this paragraph, the recipient shall provide a

3 formal process that recognizes the rights of individ4 uals receiving such assistance to due process of law.

5 ‘‘(o) DEFINITIONS.—For purposes of this section, the

6 following definitions shall apply:

7 ‘‘(1) The term ‘acquired immunodeficiency syn8 drome and related diseases’ has the meaning given

9 such term in section 853 of the Cranston-Gonzalez

10 National Affordable Housing Act.

11 ‘‘(2) The term ‘applicant’ means a State, unit

12 of general local government, Indian tribe, or public

13 housing agency.

14 ‘‘(3) The term ‘eligible person’ means a home15 less person with disabilities (primarily persons who

16 are seriously mentally ill, have chronic problems with

17 alcohol, drugs, or both, or have acquired

18 immunodeficiency syndrome and related diseases)

19 and the family of such a person.

20 ‘‘(4) The term ‘Indian tribe’ has the meaning

21 given such term in section 102 of the Housing and

22 Community Development Act of 1974.

23 ‘‘(5) The term ‘nonprofit organization’ has the

24 meaning given such term by section 104 of the

25 Cranston-Gonzalez National Affordable Housing
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1 Act, and includes community mental health centers

2 established as public nonprofit organizations.

3 ‘‘(6) The term ‘person with disabilities’ has the

4 meaning given such term in section 811 of the Cran5 ston-Gonzalez National Affordable Housing Act.

6 ‘‘(7) The term ‘public housing agency’ has the

7 meaning given such term in section 3(b) of the Unit8 ed States Housing Act of 1937.

9 ‘‘(8) The term ‘recipient’ means an applicant

10 approved for participation in the program to provide

11 assistance under this section.

12 ‘‘(9) The term ‘Secretary’ means the Secretary

13 of Housing and Urban Development.

14 ‘‘(10) The term ‘seriously mentally ill’ means

15 having a severe and persistent mental or emotional

16 impairment that seriously limits a person’s ability to

17 live independently.

18 ‘‘(11) The term ‘State’ means each of the sev19 eral States, the District of Columbia, the Common20 wealth of Puerto Rico, the Commonwealth of the

21 Northern Mariana Islands, the Virgin Islands,

22 Guam, American Samoa, and any other territory or

23 possession of the United States.

24 ‘‘(12) The term ‘supportive services’ means as25 sistance that the Secretary determines (A) addresses
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1 the special needs of eligible persons; and (B) pro2 vides appropriate services or assists such persons in

3 obtaining appropriate services, including health care,

4 mental health services, substance and alcohol abuse

5 services, child care services, case management serv6 ices, counseling, supervision, education, job training,

7 and other services essential for achieving and main8 taining independent living. Inpatient acute hospital

9 care shall not qualify as a supportive service.

10 ‘‘(13) The term ‘unit of general local govern11 ment’ has the meaning given such term in section

12 102 of the Housing and Community Development

13 Act of 1974.

14 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—For

15 purposes of providing assistance under this section, there

16 are authorized to be appropriated $75,000,000 for fiscal

17 year 1995 and $75,000,000 for fiscal year 1996.’’.

18 SEC. 323. RURAL HOMELESSNESS GRANT PROGRAM.

19 Section 453 of the Stewart B. McKinney Homeless

20 Assistance Act, as so redesignated by section 311(3) of

21 this Act, is amended—

22 (1) in subsection (a), by striking ‘‘Secretary of

23 Housing and Urban Development’’ and inserting

24 ‘‘Secretary of Agriculture’’; and
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1 (2) in subsection (k), by striking paragraph (3)

2 and inserting the following new paragraph:

3 ‘‘(3) The term ‘Secretary’ means the Secretary

4 of Agriculture.’’.

5 SEC. 324. CLERICAL AMENDMENT.

6 The table of contents in section 101(b) of the Stewart

7 B. McKinney Homeless Assistance Act is amended by

8 striking the items relating to title IV and inserting the

9 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
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‘‘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.’’.

1 Subtitle C—Miscellaneous Homeless Housing

2 Provisions

3 SEC. 331. STRATEGY TO ELIMINATE UNFIT TRANSIENT FA4 CILITIES.

5 Section 825(b) of the Cranston-Gonzalez National

6 Affordable Housing Act (42 U.S.C. 11301 note) is

7 amended—

8 (1) in paragraph (2), by striking ‘‘and’’ at the

9 end;

10 (2) in paragraph (3), by striking the period at

11 the end and inserting ‘‘; and’’; and

12 (3) by adding at the end the following new

13 paragraph:

14 ‘‘(4) that States and units of general local gov15 ernment shall eliminate the use of unfit transient fa16 cilities as housing for homeless families with children

17 not later than July 1, 1997, in the manner provided

18 under the strategy.’’.
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1 TITLE IV—RURAL HOUSING

2 SEC. 401. PROGRAM AUTHORIZATIONS.

3 (a) INSURANCE AND GUARANTEE AUTHORITY.—Sec4 tion 513(a) of the Housing Act of 1949 (42 U.S.C.

5 1483(a)) is amended to read as follows:

6 ‘‘(a) INSURANCE AND GUARANTEE AUTHORITY.—

7 ‘‘(1) IN GENERAL.—The Secretary may, to the

8 extent approved in appropriation Acts, insure and

9 guarantee loans under this title during fiscal years

10 1995 and 1996, in aggregate amounts not to exceed

11 $3,231,103,950 and $3,360,037,069, respectively, as

12 follows:

13 ‘‘(A) For insured or guaranteed loans

14 under section 502 on behalf of low-income bor15 rowers receiving assistance under section

16 521(a)(1), $1,802,500,000 for fiscal year 1995

17 and $1,856,575,000 for fiscal year 1996.

18 ‘‘(B) For guaranteed loans under section

19 502(h) on behalf of low- and moderate-income

20 borrowers, $772,500,000 for fiscal year 1995

21 and $795,675,000 for fiscal year 1996.

22 ‘‘(C) For loans under section 504,

23 $36,050,000 for fiscal year 1995 and

24 $37,131,500 for fiscal year 1996.
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1 ‘‘(D) For insured loans under section 514,

2 $18,053,950 for fiscal year 1995 and

3 $18,595,569 for fiscal year 1996.

4 ‘‘(E) For insured loans under section 515,

5 $600,000,000 for fiscal year 1995 and

6 $650,000,000 for fiscal year 1996.

7 ‘‘(F) For loans under section

8 523(b)(1)(B), $1,000,000 for fiscal year 1995

9 and $1,030,000 for fiscal year 1996.

10 ‘‘(G) For site loans under section 524,

11 $1,000,000 for fiscal year 1995 and $1,030,000

12 for fiscal year 1996.

13 ‘‘(2) LIMITATION ON USE.—Notwithstanding

14 any other provision of law, insured or guaranteed

15 loan authority in this title for any fiscal year shall

16 not be transferred or used for any purpose not speci17 fied in this title.’’.

18 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

19 513(b) of the Housing Act of 1949 (42 U.S.C. 1483(b))

20 is amended to read as follows:

21 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There

22 are authorized to be appropriated for fiscal years 1995

23 and 1996, and to remain available until expended, the fol24 lowing amounts:
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1 ‘‘(1) For grants under section 502(c)(5)(C)(i),

2 $10,000,000 for fiscal year 1995, and $10,000,000

3 for fiscal year 1996.

4 ‘‘(2) For grants under section 504,

5 $31,000,000 for fiscal year 1995 and $31,930,000

6 for fiscal year 1996.

7 ‘‘(3) For purposes of section 509(c),

8 $1,000,000 for fiscal year 1995 and $1,030,000 for

9 fiscal year 1996.

10 ‘‘(4) For project preparation grants under sec11 tion 509(f)(6), $5,688,278 for fiscal year 1995 and

12 $5,858,926 for fiscal year 1996.

13 ‘‘(5) In fiscal years 1995 and 1996, such sums

14 as may be necessary to meet payments on notes or

15 other obligations issued by the Secretary under sec16 tion 511 equal to—

17 ‘‘(A) the aggregate of the contributions

18 made by the Secretary in the form of credits on

19 principal due on loans made pursuant to section

20 503; and

21 ‘‘(B) the interest due on a similar sum

22 represented by notes or other obligations issued

23 by the Secretary.
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1 ‘‘(6) For grants for service coordinators under

2 section 515(y), $1,073,260 for fiscal year 1995 and

3 $1,105,458 for fiscal year 1996.

4 ‘‘(7) For financial assistance under section

5 516—

6 ‘‘(A) for low-rent housing and related fa7 cilities for domestic farm labor under sub8 sections (a) through (j) of such section,

9 $15,000,000 for fiscal year 1995 and

10 $18,000,000 for fiscal year 1996; and

11 ‘‘(B) for housing for rural homeless and

12 migrant farmworkers under subsection (k) of

13 such section, $10,269,230 for fiscal year 1995

14 and $11,407,307 for fiscal year 1996.

15 ‘‘(8) For grants under section 523(f),

16 $14,918,314 for fiscal year 1995 and $15,365,863

17 for fiscal year 1996.

18 ‘‘(9) For grants under section 533,

19 $33,056,408 for fiscal year 1993 and $34,048,100

20 for fiscal year 1994.’’.

21 (c) RENTAL ASSISTANCE PAYMENT CONTRACTS.—

22 Section 513(c) of the Housing Act of 1949 (42 U.S.C.

23 1483(c)(1)) is amended by striking ‘‘(c)’’ and all that fol24 lows through the end of paragraph (1) and inserting the

25 following:
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1 ‘‘(c) RENTAL AND OPERATING ASSISTANCE.—(1)

2 The Secretary, to the extent approved in appropriations

3 Acts for fiscal years 1995 and 1996, may enter into rental

4 assistance payment contracts under section 521(a)(2)(A)

5 and contracts for operating assistance under section

6 521(a)(5), aggregating $454,079,620 for fiscal year 1995

7 and $467,702,009 for fiscal year 1996.’’.

8 (d) SUPPLEMENTAL RENTAL ASSISTANCE PAYMENT

9 CONTRACTS.—Section 513(d) of the Housing Act of 1949

10 (42 U.S.C. 1483(d)) is amended to read as follows:

11 ‘‘(d) SUPPLEMENTAL RENTAL ASSISTANCE CON12 TRACTS.—The Secretary, to the extent approved in appro13 priations Acts for fiscal years 1995 and 1996, may enter

14 into 5-year supplemental rental assistance contracts under

15 section 502(c)(5)(D) aggregating $13,070,160 for fiscal

16 year 1995 and $13,462,265 for fiscal year 1996.’’.

17 (e) RURAL HOUSING VOUCHER AUTHORITY.—Sec18 tion 513(e) of the Housing Act of 1949 (42 U.S.C.

19 1483(e)) is amended to read as follows:

20 ‘‘(e) RURAL HOUSING VOUCHERS.—There are au21 thorized to be appropriated for rural housing vouchers

22 under section 542, $30,000,000 for fiscal year 1995 and

23 $40,000,000 for fiscal year 1996.’’.
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1 (f) RENTAL HOUSING LOAN AUTHORITY.—Section

2 515(b) of the Housing Act of 1949 (42 U.S.C. 1485(b))

3 is amended—

4 (1) by striking paragraph (4); and

5 (2) by redesignating paragraphs (5) and (6) as

6 paragraphs (4) and (5), respectively.

7 SEC. 402. ELIGIBILITY OF NATIVE AMERICANS FOR RURAL

8 HOUSING PROGRAMS.

9 Section 501(b)(6) of the Housing Act of 1949 (42

10 U.S.C. 1471(b)(6)) is amended by adding at the end the

11 following new sentence: ‘‘In any case in which assistance

12 made available under this title may be provided to a State

13 or State agency or in which a State or State agency is

14 eligible to participate in a program or activity under this

15 title, such assistance may also be provided to Indian tribes

16 and tribal agencies and Indian tribes and tribal agencies

17 shall be eligible to participate, respectively.’’.

18 SEC. 403. ESCROW FUND.

19 Section 501(e) of the Housing Act of 1949 (42

20 U.S.C. 1471(e)) is amended by striking the third and

21 fourth sentences and inserting the following: ‘‘The Sec22 retary may establish in the Treasury of the United States

23 an escrow fund for the deposit of such periodic payments.

24 The Secretary may direct the Secretary of the Treasury

25 to invest and reinvest amounts in the escrow fund in pub-
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1 lic debt securities with maturities suitable for the needs

2 of the escrow fund and bearing interest at rates deter3 mined by the Secretary of the Treasury, taking into con4 sideration the current average market yield on outstand5 ing marketable obligations of the United States of com6 parable maturities. Any interest earned shall be credited

7 to the escrow fund. The Secretary shall disburse amounts

8 at the appropriate time or times for the purposes for which

9 the amounts were escrowed in the fund. The Secretary

10 shall pay a uniform rate of interest on escrowed amounts.

11 The interest rate to be paid on such amounts shall be de12 termined by the Secretary based on the interest earned

13 less an amount not to exceed 1 percent to be used to offset

14 expenses in carrying out the provisions of this title.’’.

15 SEC. 404. SECTION 502 HOMEOWNERSHIP LOANS.

16 (a) REMOTE RURAL AREAS.—Section 502(f) of the

17 Housing Act of 1949 (42 U.S.C. 1472(f)) is amended—

18 (1) by striking paragraph (1);

19 (2) by redesignating paragraph (2) as para20 graph (1); and

21 (3) by adding at the end the following new

22 paragraph:

23 ‘‘(2) SECURITY.—In making a loan under this

24 section for housing located in a rural area that is a

25 remote rural area (which shall include tribal allotted
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1 or Indian trust land) where the borrower resides or

2 is employed, the Secretary shall consider the actual

3 replacement cost of the property and structure for

4 which the loan is made as adequate security for the

5 loan required under subsection (b).’’.

6 (b) PERMANENT DEFERRED MORTGAGE PRO7 GRAM.—Section 502(g) of the Housing Act of 1949 (42

8 U.S.C. 1472(g)) is amended to read as follows:

9 ‘‘(g) DEFERRED MORTGAGE PROGRAM.—With re10 spect to families or persons otherwise eligible for assist11 ance under subsection (d) but having incomes below the

12 amount determined to qualify for a loan under this sec13 tion, the Secretary may defer mortgage payments beyond

14 the amount affordable at 1 percent interest, taking into

15 consideration income, taxes and insurance. Deferred

16 amounts shall not exceed 25 percent of the amount of the

17 payment due at 1 percent interest and shall be subject

18 to recapture.’’.

19 (c) REAMORTIZATION.—Section 505 of the Housing

20 Act of 1949 (42 U.S.C. 1475) is amended—

21 (1) in the section heading, by inserting ‘‘,

22 REAMORTIZATION,’’ after ‘‘MORATORIUM’’;

23 (2) in subsection (a), by inserting before the

24 last sentence the following: ‘‘The Secretary may not

25 foreclose such a mortgage securing such a loan upon
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1 which a moratorium has been granted solely because

2 the borrower does not have the ability to repay the

3 loan. Upon the expiration of a moratorium, the Sec4 retary shall, subject to the availability of amounts

5 for assistance under this title, enter into an agree6 ment with the borrower providing to the borrower

7 such assistance as the Secretary is authorized to

8 provide under this title and may foreclose with re9 spect to the loan only if the borrower fails to make

10 3 monthly payments required under such agree11 ment.’’;

12 (3) by redesignating subsection (b) as sub13 section (c); and

14 (4) by inserting after subsection (a) the follow15 ing new subsection:

16 ‘‘(b) REAMORTIZATION.—

17 ‘‘(1) AUTHORITY.—With respect to a loan made

18 under section 502, after a moratorium under sub19 section (a) of this section for the loan or at any

20 other time the Secretary considers appropriate, the

21 Secretary may reamortize the outstanding indebted22 ness, including principal and interest, under the loan

23 for a period not to exceed 38 years from the date

24 of the making of the loan, subject to the provisions

25 of paragraph (2). The authority of the Secretary
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1 under this subsection to modify loans shall be effec2 tive for any fiscal year only to such extent or in such

3 amounts as are or have been provided for such costs

4 in appropriation Acts for such fiscal year.

5 ‘‘(2) GRADUATED REPAYMENT AGREEMENT.—

6 In reamortizing a loan pursuant to paragraph (1),

7 the Secretary may lower the interest rate to the ex8 isting lending rate for loans under section 502 or es9 tablish a schedule of payments under the loan that

10 provides, after the application of interest credit, for

11 payments in an amount less than the amount of the

12 payments originally provided for under the loan

13 agreement for a period not exceeding that required

14 to amortize the loan over its term, except that such

15 period may not exceed 3 years.’’.

16 (d) ELIGIBILITY OF AREA.—Section 502 of the

17 Housing Act of 1949 (42 U.S.C. 1472) is amended by

18 adding at the end the following new subsection:

19 ‘‘(i) Notwithstanding section 520, the Secretary may

20 make loans under this section for properties in the Pine

21 View West Subdivision, located in Gibsonville, North Caro22 lina, in the same manner as provided under this section

23 for properties in rural areas.’’.
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1 SEC. 405. LOAN GUARANTEES.

2 Section 502(h)(11) of the Housing Act of 1949 (42

3 U.S.C. 1472(h)(11)) is amended by adding at the end the

4 following new sentence: ‘‘The Secretary may not pool or

5 reallocate any authority to guarantee loans under this sec6 tion that was allocated for use in any State before August

7 1 of the fiscal year in which such authority was allo8 cated.’’.

9 SEC. 406. PREPAYMENT OF RURAL RENTAL HOUSING

10 LOANS.

11 (a) EQUITY TAKEOUT LOANS.—

12 (1) AUTHORITY AND LIMITATION.—Section

13 502(c)(4)(B)(iv) of the Housing Act of 1949 (42

14 U.S.C. 1472(c)(4)(B)(iv)) is amended by inserting

15 before the period at the end the following: ‘‘or under

16 paragraphs (1) and (2) of section 514(j), except that

17 an equity loan referred to in this clause may not be

18 made available after the date of the enactment of

19 the Housing and Community Development Act of

20 1994 unless the Secretary determines that the other

21 incentives available under this subparagraph are not

22 adequate to provide a fair return on the investment

23 of the borrower, to prevent prepayment of the loan

24 insured under section 514 or 515, or to prevent the

25 displacement of tenants of the housing for which the

26 loan was made’’.
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1 (2) APPROVAL OF ASSISTANCE.—Subparagraph

2 (C) of section 502(c)(4) of the Housing Act of 1949

3 is amended by striking the matter preceding clause

4 (i) and inserting the following:

5 ‘‘(C) APPROVAL OF ASSISTANCE.—The Secretary

6 may approve assistance under subparagraph (B) for as7 sisted housing only if the restrictive period has expired for

8 any loan for the housing made or insured under section

9 514 or 515 pursuant to a contract entered into after De10 cember 21, 1979, but before the date of the enactment

11 of the Department of Housing and Urban Development

12 Reform Act of 1989, and the Secretary determines that

13 the combination of assistance provided—’’.

14 (3) LOAN TERMS.—Section 514 of the Housing

15 Act of 1949 (42 U.S.C. 1484) is amended by adding

16 at the end the following new subsection:

17 ‘‘(j) EQUITY TAKEOUT LOANS FOR PRESERVATION

18 OF LOW-INCOME HOUSING.—With respect to a loan in19 sured under subsection (a), the Secretary may—

20 ‘‘(1) make or insure an equity loan in the form

21 of a supplemental loan for the purpose of equity

22 takeout to the owner of housing financed with a loan

23 insured under this section pursuant to a contract en24 tered into before December 15, 1989, for the pur25 pose of extending the affordability of the housing for
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1 low-income families or persons and very low-income

2 families or persons for not less than 20 years, except

3 that such loan may not exceed 90 percent of the

4 value of the equity in the project as determined by

5 the Secretary;

6 ‘‘(2) transfer and reamortize an existing loan in

7 connection with assistance provided under paragraph

8 (1); and

9 ‘‘(3) make or insure a loan to enable a non10 profit organization or public agency to make a pur11 chase described in section 502(c)(5).’’.

12 (4) TECHNICAL CORRECTION RELATING TO

13 SECTION 515 HOUSING.—Section 515(c)(1) of the

14 Housing Act of 1949 (42 U.S.C. 1485(c)(1)) is

15 amended by striking ‘‘December 21, 1979’’ and in16 serting ‘‘December 15, 1989’’.

17 (b) PHASE-IN OF RENT INCREASES.—Section

18 502(c)(4)(B)(vi) of the Housing Act of 1949 (42 U.S.C.

19 1472(c)(4)(B)(vi)) is amended by inserting before the pe20 riod at the end the following: ‘‘, except that any such in21 crease in rents for current tenants (except for increases

22 made necessary by increases in operating costs) shall (I)

23 be phased in equally over a period of not less than 3 years,

24 if such increase is 30 percent or more, and (II) be limited
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1 to not more than 10 percent per year if such increase is

2 more than 10 percent but less than 30 percent’’.

3 (c) TREATMENT OF ACCELERATION UPON DE4 FAULT.—Section 502 of the Housing Act of 1949 (42

5 U.S.C. 1472) is amended—

6 (1) in subsection (b)(2), by inserting ‘‘or any

7 payment in the case of acceleration of the amount

8 due under such a loan pursuant to any default,’’

9 after ‘‘515’’; and

10 (2) in subsection (c)—

11 (A) in paragraph (1)(A), by inserting be12 fore the 1st comma the following: ‘‘, accept any

13 payment tendered in the case of acceleration of

14 the amount due pursuant to any default on’’;

15 (B) in paragraph (1)(B), by inserting be16 fore the 1st comma the following: ‘‘, accept any

17 payment tendered in the case of acceleration of

18 the amount due pursuant to any default on’’;

19 (C) in paragraph (2)—

20 (i) by inserting after ‘‘prepaid’’ the

21 following: ‘‘, paid in full pursuant to accel22 eration of the amount due resulting from

23 default,’’; and

24 (ii) by inserting ‘‘, payment,’’ after

25 ‘‘prepayment’’;
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1 (D) in paragraph (4)(A), by inserting after

2 ‘‘prepay,’’ the following: ‘‘accepting any pay3 ment tendered in the case of acceleration of the

4 amount due pursuant to any default on,’’; and

5 (E) in paragraph (5)—

6 (i) in subparagraph (A)(ii), by insert7 ing after ‘‘prepay,’’ the following: ‘‘accept

8 the payment tendered in the case of accel9 eration of the amount due pursuant to de10 fault on,’’;

11 (ii) in the 1st sentence of subpara12 graph (F), by inserting after ‘‘prepay,’’ the

13 following: ‘‘accept payment tendered in the

14 case of acceleration of the amount due pur15 suant to default on,’’;

16 (iii) in the 2d sentence of subpara17 graph (F), by inserting after ‘‘prepay,’’ the

18 following: ‘‘payment tendered in the case

19 of acceleration of the amount due pursuant

20 to default,’’;

21 (iv) in the last sentence of subpara22 graph (F), by striking ‘‘offers to prepay,’’

23 and inserting the following: ‘‘such offers to

24 prepay, payments in the case of accelera-
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1 tion of the amount due pursuant to de2 fault,’’; and

3 (v) in the matter in subparagraph (G)

4 that precedes clause (i), by inserting after

5 ‘‘prepay,’’ the following: ‘‘any payment ten6 dered in the case of acceleration of the

7 amount due pursuant to default on,’’.

8 (d) TEST FOR ALLOWABLE PREPAYMENT.—Section

9 502(c)(5)(G)(ii) of the Housing Act of 1949 (42 U.S.C.

10 1472(c)(5)(G)(ii)) is amended to read as follows:

11 ‘‘(ii) the Secretary makes a written finding

12 that—

13 ‘‘(I) prepayment, payment in the case of

14 acceleration, or refinancing will not (a) materi15 ally increase economic hardship for current ten16 ants, and (b) involuntarily displace current ten17 ants (except for good cause), where comparable

18 and affordable housing is not readily available

19 at the time of displacement, determined without

20 regard to the availability of Federal housing as21 sistance that would address any such hardship

22 or involuntary displacement; and

23 ‘‘(II) the supply of vacant, comparable

24 housing is sufficient to ensure that such pre25 payment will not materially affect (a) the avail-
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1 ability of decent, safe, and sanitary housing af2 fordable to low-income and very low-income

3 families or persons in the area that the housing

4 could reasonably be expected to serve, (b) the

5 ability of low-income and very low-income fami6 lies or persons to find affordable, decent, safe,

7 and sanitary housing near employment opportu8 nities, or (c) the housing opportunities of mi9 norities in the community within which the

10 housing is located.’’.

11 SEC. 407. DESIGNATION OF UNDERSERVED AREAS AND

12 RESERVATION OF ASSISTANCE.

13 (a) REAUTHORIZATION AND SET-ASIDE.—Section

14 509(f)(4) of the Housing Act of 1949 (42 U.S.C.

15 1479(f)(4)) is amended—

16 (1) in subparagraph (A)—

17 (A) in the first sentence—

18 (i) by striking ‘‘5.0 percent in fiscal

19 years 1993 and 1994’’ and inserting ‘‘not

20 less than 5 percent or more than 10 per21 cent for each of fiscal years 1995 and

22 1996’’; and

23 (ii) by striking ‘‘514, 515, and 524’’

24 and inserting ‘‘and 515’’; and
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1 (B) in the second sentence, by striking

2 ‘‘sections 514 and 515’’ and inserting ‘‘section

3 515’’; and

4 (2) in subparagraph (B)(ii), by striking ‘‘5 per5 cent’’ and inserting ‘‘10 percent’’.

6 (b) POVERTY LEVEL FOR DESIGNATION.—Section

7 509(f)(1) of the Housing Act of 1949 is amended—

8 (1) in subparagraph (A), by striking ‘‘20 per9 cent’’ and inserting ‘‘15 percent’’; and

10 (2) in subparagraph (B), by striking ‘‘10 per11 cent’’ and inserting ‘‘5 percent’’.

12 (c) POVERTY LEVEL FOR PREFERENCE.—Section

13 509(f)(2) of the Housing Act of 1949 is amended—

14 (1) in subparagraph (A), by striking ‘‘28 per15 cent’’ and inserting ‘‘20 percent’’; and

16 (2) in subparagraph (B), by striking ‘‘13 per17 cent’’ and inserting ‘‘7 percent’’.

18 (d) ADDITIONAL QUALIFICATION AS UNDERSERVED

19 AREA.—Section 509(f)(1) of the Housing Act of 1949 is

20 amended by inserting after subparagraph (B) the follow21 ing new flush sentence:

22 ‘‘The Secretary may also designate a county or com23 munity as a targeted underserved area if the Sec24 retary determines that the county or community has

25 severe unmet housing needs, including needs caused
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1 by severe economic and social dislocation such as

2 natural disasters, structural employment changes, or

3 persistent poverty, or has experienced long-term pop4 ulation and job losses.’’.

5 (e) GEOGRAPHICAL DIVERSITY.—Section 509(f)(1)

6 of the Housing Act of 1949 is amended by adding at the

7 end the following: ‘‘In designating targeted underserved

8 areas under this paragraph for any fiscal year, the Sec9 retary may not designate more than 10 counties and com10 munities located in any single State or in the Common11 wealth of Puerto Rico. If more than 10 counties and com12 munities in any single State or the Commonwealth of

13 Puerto Rico qualify under this paragraph for designation

14 as an underserved area, the Secretary shall designate the

15 counties and communities for which the sum of the per16 centages under subparagraphs (A) and (B) are the

17 greatest.’’.

18 (f) 2-YEAR AND 3-YEAR DESIGNATIONS.—Section

19 509(f) of the Housing Act of 1949 (42 U.S.C. 1479(f))

20 is amended—

21 (1) in paragraph (1)—

22 (A) in the 1st sentence, by striking ‘‘in

23 each fiscal year’’; and

24 (B) in the 2d sentence, by striking ‘‘year

25 in’’ and inserting ‘‘first year for’’;
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1 (2) in paragraph (2)—

2 (A) in the first sentence, by striking

3 ‘‘paragraph (4)’’ and inserting ‘‘paragraph

4 (5)’’; and

5 (B) by striking the last sentence;

6 (3) in paragraph (3)(B), by striking ‘‘para7 graph (2)’’ and inserting ‘‘paragraph (3)’’;

8 (4) in paragraph (4)(A), by striking ‘‘paragraph

9 (7)’’ and inserting ‘‘paragraph (8)’’;

10 (5) by redesignating paragraphs (2) through

11 (8) as paragraphs (3) through (9), respectively; and

12 (6) by inserting after paragraph (1) the follow13 ing new paragraph:

14 ‘‘(2) TIMING AND DURATION OF DESIGNA15 TIONS.—

16 ‘‘(A) IN GENERAL.—Except as provided in

17 subparagraph (B), the Secretary shall redesig18 nate the targeted underserved areas under this

19 subsection once every 2 fiscal years and such

20 designations shall remain in effect for a period

21 of 2 fiscal years. The first such 2-year designa22 tion shall be made for fiscal years 1995 and

23 1996.

24 ‘‘(B) DESIGNATIONS FOR INDIAN AREAS.—

25 The Secretary shall ensure that, at all times,
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1 not less than 5 counties or communities that

2 contain tribal allotted or Indian trust land are

3 included among the 100 counties and commu4 nities designated as targeted underserved areas.

5 The Secretary shall redesignate the counties or

6 communities designated as a targeted under7 served area in compliance with this subpara8 graph once every 3 fiscal years and such des9 ignations shall remain in effect for 3 fiscal

10 years. The first such 3-year designation shall be

11 made for fiscal years 1995 through 1997. Upon

12 designation, the Secretary shall specify any tar13 geted underserved area designated in compli14 ance with this subparagraph.’’.

15 SEC. 408. ADMINISTRATIVE APPEALS.

16 (a) APPEALS.—Section 510(g) of the Housing Act of

17 1949 (42 U.S.C. 1480(g)) is amended—

18 (1) by inserting after ‘‘termination and’’ the

19 following: ‘‘, in the case of any eviction not related

20 to any drug-related or criminal activity, nonpayment

21 of rent, or activity that threatens the health, safety,

22 or right to peaceful enjoyment of the premises by

23 other residents,’’; and

24 (2) by inserting after ‘‘reverse the decision’’ the

25 following: ‘‘and is mutually selected within a reason-
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1 able period of time by the person adversely affected

2 by the reduction or termination of assistance and

3 the person reducing or terminating assistance’’.

4 (b) ATTORNEYS.—Section 510(d)(1) of the Housing

5 Act of 1949 is amended—

6 (1) in the matter preceding subparagraph (A),

7 by inserting ‘‘or 515’’ after ‘‘502’’; and

8 (2) in subparagraph (C)(ii), by inserting ‘‘with

9 respect to litigation under section 502,’’ before ‘‘rep10 resentation’’.

11 SEC. 409. SECTION 515 RURAL RENTAL HOUSING.

12 (a) LOAN TERM.—Section 515(a)(2) of the Housing

13 Act of 1949 (42 U.S.C. 1485(a)(2)) is amended by insert14 ing before the semicolon the following: ‘‘, except that the

15 Secretary may also make loans for a period of up to 30

16 years from the making of the loan’’.

17 (b) DEVELOPMENT COST.—Section 515(e)(4) of the

18 Housing Act of 1949 is amended by inserting ‘‘franchise

19 fees,’’ after ‘‘impact fees,’’.

20 (c) LIMITATION ON PROJECT TRANSFERS.—Section

21 515 of the Housing Act of 1949 (42 U.S.C. 1485) is

22 amended by inserting after subsection (g) the following

23 new subsection:

24 ‘‘(h) PROJECT TRANSFERS.—After the date of the

25 enactment of the Housing and Community Development
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1 Act of 1994, any interest in the ownership of a project

2 for which a loan is made or insured under this section

3 may be transferred only if the Secretary determines that

4 such transfer would be in the best interests of the tenants

5 of the housing for which the loan was made or insured

6 and of the Federal Government.’’.

7 (d) EQUITY LOANS.—Section 515(t) of the Housing

8 Act of 1949 is amended—

9 (1) by striking paragraphs (4) and (5); and

10 (2) by redesignating paragraphs (6) through

11 (8) as paragraphs (4) through (6), respectively.

12 (e) SET-ASIDE FOR NONPROFIT ENTITIES.—The

13 first sentence of section 515(w)(1) of the Housing Act of

14 1949 (42 U.S.C. 1485(w)(1)) is amended by striking ‘‘fis15 cal years 1993 and 1994’’ and inserting ‘‘fiscal years 1995

16 and 1996’’.

17 (f) AUTHORITY FOR STREAMLINED MORTGAGE

18 MODIFICATIONS.—Section 515 of the Housing Act of

19 1949 (42 U.S.C. 1485) is amended by adding at the end

20 the following new subsection:

21 ‘‘(aa) MORTGAGE MODIFICATIONS.—

22 ‘‘(1) PURPOSE AND AUTHORITY.—In order to

23 reduce the amount of debt service payments and op24 erating costs of borrowers under loans made or in25 sured under this section, reduce rents paid by resi-
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1 dents of housing financed with such loans, and re2 duce the amount of rental assistance necessary for

3 such housing, the Secretary may refinance the out4 standing principal obligation of a loan made under

5 this subsection in accordance with the provisions ap6 plicable (at the time of such refinancing) to loans

7 made under this section that the Secretary deter8 mines are appropriate for purposes of this sub9 section and the terms and conditions of the original

10 loan. The authority of the Secretary under this sub11 section to modify loans shall be effective for any fis12 cal year only to such extent or in such amounts as

13 are or have been provided for such costs in appro14 priation Acts for such fiscal year.

15 ‘‘(2) USE OF HOUSING.—Any terms of the

16 original loan relating to use of the housing and re17 lated facilities for the purposes specified in this sec18 tion shall continue to apply to the housing in the

19 same manner as if the loan were not modified under

20 this subsection.

21 ‘‘(3) TREATMENT OF MODIFIED MORTGAGE

22 UNDER PREPAYMENT RESTRICTIONS.—Any loan

23 modified under this subsection shall be considered a

24 loan originally made under this section, for purposes

25 of the limitations under subsection (c) on prepay-
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1 ment and refinancing under subsection (b)(3). For

2 purposes of determining the financial status of the

3 loan or the housing securing the loan, the Secretary

4 may consider the terms of the refinancing.

5 ‘‘(4) TERMS.—The Secretary shall, by regula6 tion, establish any requirements and conditions the

7 Secretary considers appropriate to provide for refi8 nancing under this subsection, including any limita9 tions on term of the refinancing loan.

10 ‘‘(5) EXPEDITED PROCEDURE.—The Secretary

11 shall establish an expedited procedure for providing

12 refinancing under this subsection, which—

13 ‘‘(A) shall not require application under

14 the same procedures applicable to loans made

15 under subsection (a); and

16 ‘‘(B) shall take into consideration any in17 formation obtained by the Secretary in making

18 and servicing the loan under subsection (a) for

19 which refinancing under this subsection is re20 quested.’’.

21 (g) REPEAL OF PROHIBITIONS.—Section 515 of the

22 Housing Act of 1949 is amended by striking subsection

23 (z).

24 (h) LOCATION OF PROJECTS.—Section 532 of the

25 Housing Act of 1949 (42 U.S.C. 1490l) is amended—
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1 (1) in subsection (a), by inserting ‘‘other than

2 assistance under section 515’’ after ‘‘in making as3 sistance’’; and

4 (2) by adding at the end the following new sub5 section:

6 ‘‘(c) ALLOCATION OF SECTION 515 LOANS.—

7 ‘‘(1) PROCEDURE.—The Secretary shall make

8 assistance under section 515 available pursuant to

9 an objective procedure established by the Secretary,

10 under which the Secretary shall identify counties

11 and communities having the greatest need for such

12 assistance and designate such counties and commu13 nities to receive such assistance. Under such proce14 dure, the Secretary shall use objective measures to

15 determine the need for rental housing assistance,

16 which may include the incidence of poverty, sub17 standard housing, lack of mortgage credit, lack or

18 insufficient amount of affordable housing, and other

19 factors demonstrating a need for affordable housing.

20 ‘‘(2) INFORMATION.—The Secretary shall use

21 information from the decennial censuses of the Unit22 ed States, relevant comprehensive affordable housing

23 strategies under section 105 of the Cranston-Gon24 zalez National Affordable Housing Act, and other

25 reliable sources obtained by the Secretary which
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1 demonstrate the need for affordable rental housing

2 in rural areas.

3 ‘‘(3) DESIGNATION.—A designation under para4 graph (1) shall not be effective for a period of more

5 than 3 years, but may be renewed by the Secretary

6 under the procedure under paragraph (1). The Sec7 retary shall cause to be published in the Federal

8 Register a list of areas designated under paragraph

9 (1) and a reasonable timetable for submission of

10 preapplications. The Secretary shall take such other

11 reasonable actions as the Secretary considers appro12 priate to notify the public of such designations.’’.

13 SEC. 410. OPTIONAL CONVERSION OF RENTAL ASSISTANCE

14 PAYMENTS TO OPERATING SUBSIDY FOR MI15 GRANT FARMWORKER PROJECTS.

16 (a) IN GENERAL.—Section 521(a) of the Housing

17 Act of 1949 (42 U.S.C. 1490a(a)) is amended by adding

18 at the end the following new paragraph:

19 ‘‘(5) OPERATING ASSISTANCE FOR MIGRANT FARM20 WORKER PROJECTS.—

21 ‘‘(A) AUTHORITY.—In the case of housing (and

22 related facilities) for migrant farmworkers provided

23 or assisted with a loan under section 514 or a grant

24 under section 516, the Secretary may, at the request

25 of the owner of the project, use amounts provided
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1 for rental assistance payments under paragraph (2)

2 to provide assistance for the costs of operating the

3 project. Any project assisted under this paragraph

4 may not receive rental assistance under paragraph

5 (2).

6 ‘‘(B) AMOUNT.—In any fiscal year, the assist7 ance provided under this paragraph for any project

8 shall not exceed an amount equal to 90 percent of

9 the operating costs for the project for the year, as

10 determined by the Secretary. The amount of assist11 ance to be provided for a project under this para12 graph shall be an amount that makes units in the

13 project available to migrant farmworkers in the area

14 of the project at rates generally not exceeding 30

15 percent of the monthly adjusted incomes of such

16 farmworkers, based on the prevailing incomes of

17 such farmworkers in the area.

18 ‘‘(C) SUBMISSION OF INFORMATION.—The

19 owner of a project assisted under this paragraph

20 shall be required to provide to the Secretary, at least

21 annually, a budget of operating expenses and esti22 mated rental income, which the Secretary shall use

23 to determine the amount of assistance for the

24 project.
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1 ‘‘(D) DEFINITIONS.—For purposes of this

2 paragraph, the following definitions shall apply:

3 ‘‘(i) The term ‘migrant farmworker’ shall

4 have the same meaning given the term in sec5 tion 516(k)(7).

6 ‘‘(ii) The term ‘operating cost’ means ex7 penses incurred in operating a project, includ8 ing expenses for—

9 ‘‘(I) administration, maintenance, re10 pair, and security of the project;

11 ‘‘(II) utilities, fuel, furnishings, and

12 equipment for the project; and

13 ‘‘(III) maintaining adequate reserve

14 funds for the project.’’.

15 (b) CONFORMING AMENDMENTS.—Title V of the

16 Housing Act of 1949 (42 U.S.C. 1471 et seq.) is amend17 ed—

18 (1) in section 502—

19 (A) in subsection (c)(1)(A)(i), by striking

20 ‘‘or (a)(2)’’ and inserting ‘‘, (a)(2), or (5)’’;

21 (B) in subsection (c)(4)(B)(ii), by inserting

22 before the period at the end the following: ‘‘, or

23 additional assistance or an increase in assist24 ance provided under section 521(a)(5)’’;
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1 (C) in subsection (c)(4)(B)(iii), by insert2 ing before the period at the end the following:

3 ‘‘, or current tenants of projects not assisted

4 under section 521(a)(5)’’;

5 (D) in subsection (c)(5)(C)(iii)—

6 (i) by striking the 2d comma; and

7 (ii) by inserting ‘‘or any assistance

8 payments received under section

9 521(a)(5),’’ before ‘‘with respect’’; and

10 (E) in subsection (c)(5)(D), by inserting

11 before the period at the end the following: ‘‘or,

12 in the case of housing assisted under section

13 521(a)(5), does not exceed the rents established

14 for the project under such section’’;

15 (2) in the second sentence of section 509(f)(5)

16 (as redesignated by the preceding provisions of this

17 title), by striking ‘‘an amount of section 521 rental

18 assistance’’ and inserting ‘‘, from amounts available

19 for assistance under paragraphs (2) and (5) of sec20 tion 521(a), an amount’’;

21 (3) in section 513(c)(2)—

22 (A) in the matter preceding subparagraph

23 (A), by inserting ‘‘or contracts for operating as24 sistance under section 521(a)(5)’’ after

25 ‘‘521(a)(2)(A)’’;
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1 (B) in subparagraph (A), by inserting ‘‘or

2 operating assistance contracts’’ after ‘‘con3 tracts’’;

4 (C) in subparagraph (B), by striking

5 ‘‘rental’’ each place it appears; and

6 (D) in subparagraph (C), by inserting ‘‘or

7 operating assistance contracts’’ after ‘‘con8 tracts’’;

9 (4) in section 521(a)(2)(B)—

10 (A) by inserting ‘‘or paragraph (5)’’ after

11 ‘‘this paragraph’’; and

12 (B) by striking ‘‘which shall’’ and all that

13 follows through the period at the end and in14 serting the following: ‘‘. The budget (and the

15 income, in the case of a project assisted under

16 this paragraph) shall be used to determine the

17 amount of the assistance for each project.’’;

18 (5) in section 521(c), by striking ‘‘subsection

19 (a)(2)’’ and inserting ‘‘subsections (a)(2) and

20 (a)(5)’’;

21 (6) in section 521(e), by inserting after ‘‘recipi22 ent’’ the following: ‘‘or any tenant in a project as23 sisted under subsection (a)(5)’’; and

24 (7) in section 530, by striking ‘‘rental assist25 ance payments with respect to such project under
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1 section 521(a)(2)(A)’’ and inserting ‘‘assistance pay2 ments with respect to such project under section

3 521(a)(2)(A) or 521(a)(5)’’.

4 SEC. 411. DEFINITION OF RURAL AREA.

5 The last sentence of section 520 of the Housing Act

6 of 1949 (42 U.S.C. 1490) is amended by striking ‘‘city

7 of’’ and inserting ‘‘cities of South Tucson, Arizona, and’’.

8 SEC. 412. PRIORITY FOR RURAL HOUSING VOUCHER AS9 SISTANCE.

10 Section 542 of the Housing Act of 1949 (42 U.S.C.

11 1490r) is amended by adding at the end the following new

12 subsection:

13 ‘‘(c) PRIORITY.—

14 ‘‘(1) REQUIREMENT.—In providing assistance

15 under this section, the Secretary shall give pref16 erence to providing assistance for rental housing

17 that—

18 ‘‘(A) is financed or assisted with a loan,

19 guarantee, insurance, or other assistance pro20 vided under this title; and

21 ‘‘(B)(i) has a significant number of units,

22 as determined by the Secretary, that have been

23 vacant for extended periods; or

24 ‘‘(ii) is occupied by a significant number of

25 families, as determined by the Secretary, who
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1 pay as rent for a unit in the housing an amount

2 exceeding 30 percent of the family’s monthly

3 adjusted income.

4 ‘‘(2) PROJECT-BASED ASSISTANCE.—To provide

5 assistance according to the preference under para6 graph (1), the Secretary may enter into contracts

7 with owners of housing described in paragraph (1)

8 to provide voucher assistance payments that are at9 tached to such housing on behalf of very low-income

10 families who reside in such housing.’’.

11 SEC. 413. LOAN GUARANTEES FOR MULTIFAMILY RENTAL

12 HOUSING IN RURAL AREAS.

13 Title V of the Housing Act of 1949 (42 U.S.C. 1471

14 et seq.) is amended by inserting after section 537 the fol15 lowing new section:

16 ‘‘SEC. 538. LOAN GUARANTEES FOR MULTIFAMILY RENTAL

17 HOUSING IN RURAL AREAS.

18 ‘‘(a) AUTHORITY.—The Secretary may make commit19 ments to guarantee eligible loans for the development costs

20 of eligible housing and related facilities, and may guaran21 tee such eligible loans, in accordance with this section.

22 ‘‘(b) EXTENT OF GUARANTEE.—A guarantee made

23 under this section shall guarantee repayment of an

24 amount not exceeding the total of the amount of the un25 paid principal and interest of the loan for which the guar-
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1 antee is made. The liability of the United States under

2 any guarantee under this section shall decrease or increase

3 pro rata with any decrease or increase of the amount of

4 the unpaid portion of the obligation.

5 ‘‘(c) ELIGIBLE BORROWERS.—A loan guaranteed

6 under this section may be made to a nonprofit organiza7 tion, an agency or body of any State government or politi8 cal subdivision thereof, or a private entity.

9 ‘‘(d) ELIGIBLE HOUSING.—A loan may be guaran10 teed under this section only if the loan is used for the

11 development costs of housing and related facilities (as

12 such terms are defined in section 515(e)) that—

13 ‘‘(1) consists of 5 or more adequate dwellings;

14 ‘‘(2) is available for occupancy only by low or

15 moderate income families or persons, whose incomes

16 at the time of initial occupancy do not exceed 115

17 percent of the median income of the area, as deter18 mined by the Secretary;

19 ‘‘(3) will remain available as provided in para20 graph (2), according to such binding commitments

21 as the Secretary may require, for the period of the

22 original term of the loan guaranteed, unless the

23 housing is acquired by foreclosure (or instrument in

24 lieu of foreclosure) or the Secretary waives the appli-
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1 cability of such requirement for the loan only after

2 determining, based on objective information, that—

3 ‘‘(A) there is no longer a need for low- and

4 moderate-income housing in the market area in

5 which the housing is located;

6 ‘‘(B) housing opportunities for low-income

7 households and minorities will not be reduced

8 as a result of the waiver; and

9 ‘‘(C) additional Federal assistance will not

10 be necessary as a result of the waiver; and

11 ‘‘(4) is located in a rural area.

12 ‘‘(e) ELIGIBLE LENDERS.—

13 ‘‘(1) REQUIREMENT.—A loan may be guaran14 teed under this subsection only if the loan is made

15 by a lender that the Secretary determines—

16 ‘‘(A) meets the qualifications, and has been

17 approved by the Secretary of Housing and

18 Urban Development, to make loans for multi19 family housing that are to be insured under the

20 National Housing Act;

21 ‘‘(B) meets the qualifications, and has

22 been approved by the Federal National Mort23 gage Association and the Federal Home Loan

24 Mortgage Corporation, to make loans for multi-
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1 family housing that are to be sold to such cor2 porations; or

3 ‘‘(C) meets any qualifications that the Sec4 retary may, by regulation, establish for partici5 pation of lenders in the loan guarantee program

6 under this section.

7 ‘‘(2) ELIGIBILITY LIST AND ANNUAL AUDIT.—

8 The Secretary shall establish a list of eligible lenders

9 and shall annually conduct an audit of each lender

10 included in the list for purposes of determining

11 whether such lender continues to be an eligible

12 lender.

13 ‘‘(f) LOAN TERMS.—Each loan guaranteed pursuant

14 to this subsection shall—

15 ‘‘(1) provide for complete amortization by peri16 odic payments to be made for a term not to exceed

17 40 years;

18 ‘‘(2) involve a rate of interest agreed upon by

19 the borrower and the lender that does not exceed the

20 maximum allowable rate established by the Secretary

21 for purposes of this section and is fixed over the

22 term of the loan;

23 ‘‘(3) involve a principal obligation (including

24 initial service charges, appraisal, inspection, and
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1 other fees as the Secretary may approve) not to

2 exceed—

3 ‘‘(A) in the case of a borrower that is a

4 nonprofit organization or an agency or body of

5 any State or local government, 97 percent of

6 the development costs of the housing and relat7 ed facilities or the value of the housing and fa8 cilities, whichever is less;

9 ‘‘(B) in the case of a borrower that is a

10 for-profit entity not referred to in subparagraph

11 (A), 90 percent of the development costs of the

12 housing and related facilities or the value of the

13 housing and facilities, whichever is less; and

14 ‘‘(C) in the case of any borrower, for such

15 part of the property as may be attributable to

16 dwelling use, the applicable maximum per unit

17 dollar amount limitations under section 207(c)

18 of the National Housing Act;

19 ‘‘(4) be secured by a first mortgage on the

20 housing and related facilities for which the loan is

21 made, or otherwise, as the Secretary may determine

22 necessary to ensure repayment of the obligation; and

23 ‘‘(5) for at least 20 percent of the loans made

24 under this section, the Secretary shall provide the

25 borrower with assistance in the form of credits pur-
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1 suant to section 521(a)(1)(B) to the extent nec2 essary to reduce the rate of interest under para3 graph (2) to the applicable Federal rate, as such

4 term is used in section 42(i)(2)(D) of the Internal

5 Revenue Code of 1986.

6 ‘‘(g) GUARANTEE FEE.—At the time of issuance of

7 a loan guaranteed under this section, the Secretary may

8 collect from the lender a fee equal to not more than 1

9 percent of the principal obligation of the loan.

10 ‘‘(h) AUTHORITY FOR LENDERS TO ISSUE CERTIFI11 CATES OF GUARANTEE.—The Secretary may authorize

12 certain eligible lenders to determine whether a loan meets

13 the requirements for guarantee under this section and,

14 subject to the availability of authority to enter into guar15 antees under this section, execute a firm commitment for

16 a guarantee binding upon the Secretary and issue a certifi17 cate of guarantee evidencing a guarantee, without review

18 and approval by the Secretary of the specific loan. The

19 Secretary may establish standards for approving eligible

20 lenders for a delegation of authority under this subsection.

21 ‘‘(i) PAYMENT UNDER GUARANTEE.—

22 ‘‘(1) NOTICE OF DEFAULT.—In the event of de23 fault by the borrower on a loan guaranteed under

24 this section, the holder of the guarantee certificate
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1 for the loan shall provide written notice of the de2 fault to the Secretary.

3 ‘‘(2) FORECLOSURE.—After receiving notice

4 under paragraph (1) and providing written notice of

5 action under this paragraph to the Secretary, the

6 holder of the guarantee certificate for the loan may

7 initiate foreclosure proceedings for the loan in a

8 court of competent jurisdiction, in accordance with

9 regulations issued by the Secretary, to obtain posses10 sion of the security property. After the court issues

11 a final order authorizing foreclosure on the property,

12 the holder of the certificate shall be entitled to pay13 ment by the Secretary under the guarantee (in the

14 amount provided under subsection (b)) upon (A)

15 conveyance to the Secretary of title to the security

16 property, (B) submission to the Secretary of a claim

17 for payment under the guarantee, and (C) assign18 ment to the Secretary of all the claims of the holder

19 of the guarantee against the borrower or others aris20 ing out of the loan transaction or foreclosure pro21 ceedings, except claims released with the consent of

22 the Secretary.

23 ‘‘(3) ASSIGNMENT BY SECRETARY.—After re24 ceiving notice under paragraph (1), the Secretary

25 may accept assignment of the loan if the Secretary
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1 determines that the assignment is in the best inter2 ests of the United States. Assignment of a loan

3 under this paragraph shall include conveyance to the

4 Secretary of title to the security property, assign5 ment to the Secretary of all rights and interests

6 arising under the loan, and assignment to the Sec7 retary of all claims against the borrower or others

8 arising out of the loan transaction. Upon assignment

9 of a loan under this paragraph, the holder of a guar10 antee certificate for the loan shall be entitled to pay11 ment by the Secretary under the guarantee (in the

12 amount provided under subsection (b)).

13 ‘‘(4) REQUIREMENTS.—Before any payment

14 under a guarantee is made under paragraph (2) or

15 (3), the holder of the guarantee certificate shall ex16 haust all reasonable possibilities of collection on the

17 loan guaranteed. Upon payment, in whole or in part,

18 to the holder, the note or judgment evidencing the

19 debt shall be assigned to the United States and the

20 holder shall have no further claim against the bor21 rower or the United States. The Secretary shall then

22 take such action to collect as the Secretary deter23 mines appropriate.

24 ‘‘(j) VIOLATION OF GUARANTEE REQUIREMENTS BY

25 LENDERS ISSUING GUARANTEES.—
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1 ‘‘(1) INDEMNIFICATION.—If the Secretary de2 termines that a loan guaranteed by an eligible lender

3 pursuant to delegation of authority under subsection

4 (h) was not originated in accordance with the re5 quirements under this section and the Secretary

6 pays a claim under the guarantee for the loan, the

7 Secretary may require the eligible lender authorized

8 under subsection (h) to issue the guarantee certifi9 cate for the loan—

10 ‘‘(A) to indemnify the Secretary for the

11 loss, if the payment under the guarantee was

12 made within a reasonable period specified by

13 the Secretary; or

14 ‘‘(B) to indemnify the Secretary for the

15 loss regardless of when payment under the

16 guarantee was made, if the Secretary deter17 mines that fraud or misrepresentation was in18 volved in connection with the origination of the

19 loan.

20 ‘‘(2) TERMINATION OF AUTHORITY TO ISSUE

21 GUARANTEES.—The Secretary may cancel a delega22 tion of authority under subsection (h) to an eligible

23 lender if the Secretary determines that the lender

24 has violated the requirements and procedures for

25 guaranteed loans under this section or for other
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1 good cause. Any such cancellation shall be made by

2 giving notice to the eligible lender and shall take ef3 fect upon receipt of the notice by the mortgagee or

4 at a later date, as the Secretary may provide. A de5 cision by the Secretary to cancel a delegation shall

6 be final and conclusive and shall not be subject to

7 judicial review.

8 ‘‘(k) REFINANCING.—Any loan guaranteed under this

9 section may be refinanced and extended in accordance

10 with terms and conditions that the Secretary shall pre11 scribe, but in no event for an additional amount or term

12 that exceeds the limitations under subsection (f).

13 ‘‘(l) NONASSUMPTION.—The borrower under a loan

14 that is guaranteed under this section and under which any

15 portion of the principal obligation or interest remains out16 standing may not be relieved of liability with respect to

17 the loan, notwithstanding the transfer of property for

18 which the loan was made.

19 ‘‘(m) GEOGRAPHICAL TARGETING.—

20 ‘‘(1) STUDY.—The Secretary shall provide for

21 an independent entity to conduct a study to deter22 mine the extent to which borrowers in the United

23 States will utilize loan guarantees under this section,

24 the rural areas in the United States in which bor25 rowers can best utilize and most need loans guaran-
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1 teed under this section, and the rural areas in the

2 United States in which housing of the type eligible

3 for a loan guarantee under this section is most need4 ed by low- and moderate-income families. The Sec5 retary shall require the independent entity conduct6 ing the study to submit a report to the Secretary

7 and to the Congress describing the results of the

8 study not later than the expiration of the 90-day pe9 riod beginning on the date of the enactment of the

10 Housing and Community Development Act of 1994.

11 ‘‘(2) TARGETING.—In providing loan guaran12 tees under this section, the Secretary shall establish

13 standards to target and give priority to rural areas

14 in which borrowers can best utilize and most need

15 loans guaranteed under this section, as determined

16 by the Secretary based on the results of the study

17 under paragraph (1) and any other information the

18 Secretary considers appropriate.

19 ‘‘(n) INAPPLICABILITY OF CREDIT-ELSEWHERE

20 TEST.—Section 501(c) shall not apply to guarantees, or

21 loans guaranteed, under this section.

22 ‘‘(o) TENANT PROTECTIONS.—The Secretary shall

23 establish standards for the treatment of tenants of hous24 ing developed using amounts from a loan guaranteed

25 under this section, which shall incorporate, to the extent
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1 applicable, existing standards applicable to tenants of

2 housing developed with loans made under section 515.

3 Such standards shall include standards for fair housing

4 and equal opportunity, lease and grievance procedures,

5 and tenant appeals of adverse actions.

6 ‘‘(p) HOUSING STANDARDS.—The standards estab7 lished under section 515(m) for housing and related facili8 ties assisted under section 515 shall apply to housing and

9 related facilities the development costs of which are fi10 nanced in whole or in part with a loan guaranteed under

11 this section.

12 ‘‘(q) LIMITATION ON COMMITMENTS TO GUARANTEE

13 LOANS.—

14 ‘‘(1) REQUIREMENT OF APPROPRIATIONS.—The

15 authority of the Secretary to enter into commit16 ments to guarantee loans under this section, and to

17 guarantee loans, shall be effective for any fiscal year

18 only to the extent or in such amounts as are or have

19 been provided in appropriations Acts for such fiscal

20 year.

21 ‘‘(2) LIMITATION ON PROJECTS AND OUT22 STANDING AGGREGATE PRINCIPAL AMOUNT.—Sub23 ject to the limitation in paragraph (1), the Secretary

24 may enter into commitments to guarantee loans

25 under this section for not more than 25 housing
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1 projects in each of fiscal years 1995 and 1996, hav2 ing an aggregate outstanding principal amount not

3 exceeding $50,000,000 in each of such fiscal years.

4 ‘‘(r) REPORT.—

5 ‘‘(1) IN GENERAL.—The Secretary shall submit

6 a report to the Congress, not later than the expira7 tion of the 2-year period beginning on the date of

8 the enactment of the Housing and Community De9 velopment Act of 1994, describing the program

10 under this section for guaranteeing loans.

11 ‘‘(2) CONTENTS.—The report shall—

12 ‘‘(A) describe the types of borrowers pro13 viding housing with loans guaranteed under this

14 section, the areas served by the housing pro15 vided and the geographical distribution of the

16 housing, the levels of income of the residents of

17 the housing, the number of dwelling units pro18 vided, the extent to which borrowers under such

19 loans have obtained other financial assistance

20 for development costs of housing provided with

21 the loans, and the extent to which borrowers

22 under such loans have used low-income housing

23 tax credits provided under section 42 of the In24 ternal Revenue Code of 1986 in connection with

25 the housing provided with the loans;
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1 ‘‘(B) analyze the financial viability of the

2 housing provided with loans guaranteed under

3 this section and the need for project-based rent4 al assistance for such housing;

5 ‘‘(C) include any recommendations of the

6 Secretary for expanding or improving the pro7 gram under this section for guaranteeing loans;

8 and

9 ‘‘(D) include any other information regard10 ing the program for guaranteeing loans under

11 this section that the Secretary considers appro12 priate.

13 ‘‘(s) DEFINITIONS.—For purposes of this subsection,

14 the following definitions shall apply:

15 ‘‘(1) The term ‘development cost’ has the mean16 ing given the term in section 515(e).

17 ‘‘(2) The term ‘eligible lender’ means a lender

18 determined by the Secretary to meet the require19 ments of subparagraph (A), (B), (C), or (D) of sub20 section (e)(1).

21 ‘‘(3) The terms ‘housing’ and ‘related facilities’

22 have the meanings given such terms in section

23 515(e).

24 ‘‘(t) AUTHORIZATION OF APPROPRIATIONS.—There

25 are authorized to be appropriated for fiscal years 1995
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1 and 1996 such sums as may be necessary for costs (as

2 such term is defined in section 502 of the Congressional

3 Budget Act of 1974) of loan guarantees made under this

4 section.

5 ‘‘(u) TERMINATION DATE.—A loan may not be guar6 anteed under this section after September 30, 1996.’’.

7 TITLE V—AUTHORIZATIONS OF

8 APPROPRIATIONS

9 SEC. 501. LOW-INCOME HOUSING AUTHORIZATION.

10 (a) AGGREGATE BUDGET AUTHORITY.—Section

11 5(c)(6) of the United States Housing Act of 1937 (42

12 U.S.C. 1437c(c)(6)) is amended by adding at the end the

13 following new sentence: ‘‘The aggregate amount of budget

14 authority that may be obligated for assistance referred to

15 in paragraph (7) is increased (to the extent approved in

16 appropriation Acts) by the sum of the amounts provided

17 in paragraph (7)(A) on October 1, 1994, and by the sum

18 of the amounts provided in paragraph (7)(B) on October

19 1, 1995.’’.

20 (b) UTILIZATION OF BUDGET AUTHORITY.—Section

21 5(c)(7) of the United States Housing Act of 1937 (42

22 U.S.C. 1437c(c)(7)) is amended by striking the paragraph

23 designation and all that follows through the end of sub24 paragraph (B) and inserting the following:
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1 ‘‘(7)(A) Using the additional budget authority pro2 vided under paragraph (6) and the balances of budget au3 thority that become available during fiscal year 1995, the

4 Secretary shall, to the extent approved in appropriation

5 Acts, reserve authority to enter into obligations aggregat6 ing—

7 ‘‘(i) for public housing grants under subsection

8 (a)(2), not more than $861,000,000, of which

9 amount not more than $263,000,000 shall be avail10 able for Indian housing;

11 ‘‘(ii) for assistance under section 8, not more

12 than $2,674,000,000, of which not more than

13 $75,000,000 shall be available for assistance under

14 section 8 for family unification under subsection

15 (q)(3) of such section;

16 ‘‘(iii) for assistance under section 5(j)(2) for

17 substantial redesign, reconstruction, and redevelop18 ment of existing obsolete public housing projects and

19 buildings, not more than $114,000,000;

20 ‘‘(iv) for comprehensive improvement assistance

21 grants under section 14(k), not more than

22 $3,230,000,000;

23 ‘‘(v) for assistance under section 8 for property

24 disposition, not more than $691,000,000;
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1 ‘‘(vi) for assistance under section 8 for loan

2 management, not more than $150,000,000;

3 ‘‘(vii) for extensions of contracts expiring under

4 section 8, $5,092,000,000 which shall be for 5-year

5 contracts for assistance under section 8 and vouch6 ers under section 8(o) (as in effect before the date

7 of the enactment of this Act) and for loan manage8 ment assistance under such section;

9 ‘‘(viii) for amendments to contracts under sec10 tion 8, such sums as may be necessary;

11 ‘‘(ix) for public housing lease adjustments and

12 amendments, such sums as may be necessary;

13 ‘‘(x) for assistance under section 18 for replace14 ment housing for units demolished or disposed of

15 under section 18, not more than $333,450,000;

16 ‘‘(xi) for conversions from leased housing con17 tracts under section 23 of this Act (as in effect im18 mediately before the enactment of the Housing and

19 Community Development Act of 1974) to assistance

20 under section 8, such sums as may be necessary;

21 and

22 ‘‘(xii) for grants under section 24 for revitaliza23 tion of severely distressed public housing, not more

24 than $500,000,000.
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1 ‘‘(B) Using the additional budget authority provided

2 under paragraph (6) and the balances of budget authority

3 that become available during fiscal year 1996, the Sec4 retary shall, to the extent approved in appropriation Acts,

5 reserve authority to enter into obligations aggregating—

6 ‘‘(i) for public housing grants under subsection

7 (a)(2), not more than $862,000,000, of which

8 amount not more than $264,000,000 shall be avail9 able for Indian housing;

10 ‘‘(ii) for assistance under section 8, not more

11 than $2,800,000,000, of which not more than

12 $75,000,000 shall be available for assistance under

13 section 8 for family unification under subsection

14 (q)(3) of such section;

15 ‘‘(iii) for assistance under section 5(j)(2) for

16 substantial redesign, reconstruction, and redevelop17 ment of existing obsolete public housing projects and

18 buildings, not more than $120,000,000;

19 ‘‘(iv) for comprehensive improvement assistance

20 grants under section 14(k), not more than

21 $3,241,000;

22 ‘‘(v) for assistance under section 8 for property

23 disposition, not more than $800,000,000;

24 ‘‘(vi) for assistance under section 8 for loan

25 management, not more than $155,000,000;
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1 ‘‘(vii) for extensions of contracts expiring under

2 section 8, $6,000,000,000 which shall be for 5-year

3 contracts for assistance under section 8 and vouch4 ers under section 8(o) (as in effect before the date

5 of the enactment of the Housing and Community

6 Development Act of 1994) and for loan management

7 assistance under such section;

8 ‘‘(viii) for amendments to contracts under sec9 tion 8, such sums as may be necessary;

10 ‘‘(ix) for public housing lease adjustments and

11 amendments, such sums as may be necessary;

12 ‘‘(x) for assistance under section 18(g) for re13 placement housing for units demolished or disposed

14 of under section 18, not more than $273,600,000;

15 ‘‘(xi) for conversions from leased housing con16 tracts under section 23 of this Act (as in effect im17 mediately before the enactment of the Housing and

18 Community Development Act of 1974) to assistance

19 under section 8, such sums as may be necessary;

20 and

21 ‘‘(xii) for grants under section 24 for revitaliza22 tion of severely distressed public housing, not more

23 than $550,000,000.’’.
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1 SEC. 502. PUBLIC HOUSING OPERATING SUBSIDIES.

2 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

3 9(c) of the United States Housing Act of 1937 (42 U.S.C.

4 1437g(c)) is amended—

5 (1) in paragraph (1), by striking ‘‘There’’ and

6 all that follows and inserting the following new sen7 tence: ‘‘There are authorized to be appropriated for

8 purposes of providing annual contributions under

9 this section $3,146,000,000 for fiscal year 1995 and

10 $3,208,000,000 for fiscal year 1996.’’;

11 (2) in paragraph (2), by striking ‘‘1993 and

12 1994’’ and inserting ‘‘1995 and 1996’’; and

13 (3) in paragraph (3), by striking ‘‘1993 and

14 1994’’ and inserting ‘‘1995 and 1996’’.

15 (b) ELIGIBILITY OF SEVERELY DISTRESSED PUBLIC

16 HOUSING.—Section 9(a)(2) of the United States Housing

17 Act of 1937 is amended—

18 (1) by striking ‘‘one’’ and inserting ‘‘that is

19 (A)’’; and

20 (2) by inserting after ‘‘section 8,’’ the following:

21 ‘‘or (B) assisted under section 24 or the program

22 authorized under (i) the third paragraph of the

23 head, HOMEOWNERSHIP AND OPPORTUNITY FOR

24 PEOPLE EVERYWHERE GRANTS (HOPE GRANTS), of

25 title II of the Departments of Veterans Affairs and

26 Housing and Urban Development, and Independent
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1 Agencies Appropriations Act, 1993, or (ii) the head,

2 SEVERELY DISTRESSED PUBLIC HOUSING PROJECTS,

3 of title II of the Department of Veterans Affairs and

4 Housing and Urban Development, and Independent

5 Agencies Appropriations Act, 1994;’’.

6 SEC. 503. INDIAN HOUSING LOAN GUARANTEES.

7 (a) LIMITATION ON OUTSTANDING AGGREGATE

8 PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the Hous9 ing and Community Development Act of 1992 (12 U.S.C.

10 1515z–13a(i)(5)(C)) is amended by striking ‘‘fiscal years

11 1993 and 1994’’ and inserting ‘‘fiscal years 1995 and

12 1996’’.

13 (b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR14 ANTEE FUND.—Section 184(i)(7) of the Housing and

15 Community Development Act of 1992 (12 U.S.C. 1515z–

16 13a(i)(7)) is amended to read as follows:

17 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

18 There are authorized to be appropriated to the

19 Guarantee Fund to carry out this section

20 $50,000,000 for fiscal year 1995 and $50,000,000

21 for fiscal year 1996.’’.

22 SEC. 504. NEW CONSTRUCTION OF PROJECTS FOR DIS23 ABLED FAMILIES.

24 Section 5(j)(3)(A) of the United States Housing Act

25 of 1937 (42 U.S.C. 1437c(j)(3)(A)) is amended by strik-
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1 ing ‘‘fiscal years 1993 and 1994’’ and inserting ‘‘fiscal

2 years 1995 and 1996’’.

3 SEC. 505. EMERGENCY MODERNIZATION FUNDS.

4 Section 14(k)(1) of the United States Housing Act

5 of 1937 (42 U.S.C. 1437l(k)(1)) is amended in the first

6 sentence, by striking ‘‘$75,000,000’’ and inserting

7 ‘‘$50,000,000’’.

8 SEC. 506. FAMILY INVESTMENT CENTERS.

9 Section 22(k) of the United States Housing Act of

10 1937 (42 U.S.C. 1437t(k)) is amended to read as follows:

11 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There

12 are authorized to be appropriated to carry out this section

13 $50,000,000 for fiscal year 1995 and $50,000,000 for fis14 cal year 1996.’’.

15 SEC. 507. SERVICE COORDINATORS.

16 (a) PUBLIC HOUSING.—Section 9 of the United

17 States Housing Act of 1937 (42 U.S.C. 1437g) is amend18 ed in subsection (a)(1)(B)(ii)—

19 (1) in the 1st sentence, by striking ‘‘Annual’’

20 and all that follows through ‘‘such project,’’ and in21 serting ‘‘To the extent amounts are made available

22 pursuant to section 5(c) for carrying out this clause,

23 the Secretary may increase the annual contributions

24 provided under this section to any public housing

25 agency for any project to provide’’; and
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1 (2) by striking the last 2 sentences.

2 (b) OTHER FEDERALLY ASSISTED MULTIFAMILY

3 HOUSING.—Section 676(c) of the Housing and Commu4 nity Development Act of 1992 (42 U.S.C. 13632(c)) is

5 amended to read as follows:

6 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There

7 are authorized to be appropriated for grants under this

8 section such sums as may be necessary for each of fiscal

9 years 1995 and 1996.’’.

10 SEC. 508. COMMUNITY PARTNERSHIPS AGAINST CRIME.

11 There are authorized to be appropriated to carry out

12 chapter 2 of subtitle C of title V of the Anti-Drug Abuse

13 Act of 1988 (42 U.S.C. 11901 et seq.) $300,000,000 for

14 fiscal year 1995 and $325,000,0000 for fiscal year 1996.

15 Any amount appropriated under this section shall remain

16 available until expended.

17 SEC. 509. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

18 Section 222(g) of the Housing and Urban-Rural Re19 covery Act of 1983 (12 U.S.C. 1701z–6 note) is amended

20 by striking the first two sentences and inserting the follow21 ing new sentence: ‘‘There are authorized to be appro22 priated to carry out this section $35,000,000 for fiscal

23 year 1995 and $35,000,000 for fiscal year 1996.’’.
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1 SEC. 510. SECTION 8 NEW CONSTRUCTION AND SUBSTAN2 TIAL REHABILITATION CONTRACT RENEW3 ALS.

4 There are authorized to be appropriated such sums

5 as may be necessary to carry out the provisions of this

6 subtitle for which amounts are not provided under section

7 5(c) of the United States Housing Act of 1937.

8 SEC. 511. HOUSING COUNSELING.

9 (a) EXTENSIONS OF PROGRAMS.—

10 (1) EMERGENCY HOMEOWNERSHIP COUNSEL11 ING.—Section 106(c)(9) of the Housing and Urban

12 Development Act of 1968 (12 U.S.C. 1701x(c)(9)) is

13 amended by striking ‘‘September 30, 1994’’ and in14 serting ‘‘September 30, 1996’’.

15 (2) PREPURCHASE AND FORECLOSURE-PREVEN16 TION COUNSELING DEMONSTRATION.—Section

17 106(d)(13) of the Housing and Urban Development

18 Act of 1968 (12 U.S.C. 1701x(d)(13)) is amended

19 by striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal

20 year 1996’’.

21 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

22 106 of the Housing and Urban Development Act of 1968

23 (12 U.S.C. 1701x) is amended—

24 (1) in subsection (a), by striking paragraph (3);

25 (2) in subsection (c)—

26 (A) by striking paragraph (8); and
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1 (B) by redesignating paragraph (9) (as

2 amended by subsection (a)) as paragraph (8);

3 (3) in subsection (d)—

4 (A) by striking paragraph (12); and

5 (B) by redesignating paragraph (13) (as

6 amended by subsection (a)) as paragraph (12);

7 (4) in subsection (f), by striking paragraph (7);

8 and

9 (5) by adding at the end the following new sub10 section:

11 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

12 are authorized to be appropriated to carry out this section

13 $62,000,000 for fiscal year 1995 and $65,000,000 for fis14 cal year 1996, of which amounts $30,000,000 shall be

15 available in each such fiscal year to carry out subsection

16 (c). Any amounts appropriated pursuant to this subsection

17 shall remain available until expended.’’.

18 SEC. 512. HEADQUARTERS RESERVE.

19 Section 213(d)(4)(A) of the Housing and Community

20 Development Act of 1974 (42 U.S.C. 1439(d)(4)(A)) is

21 amended—

22 (1) in clause (iii), by striking ‘‘and’’ at the end;

23 (2) in clause (iv) by striking the period at the

24 end and inserting a semicolon; and
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1 (3) by inserting after clause (iv) the following

2 new clauses:

3 ‘‘(v) cash payments, in connection with the set4 tlement of civil rights litigation (excluding litigation

5 brought by an employee or former employee of the

6 Secretary); and

7 ‘‘(vi) in the case of financial assistance under

8 the rental housing assistance program under section

9 8 of the United States Housing Act of 1937, provid10 ing assistance pursuant to section 8(q)(4) of such

11 Act.’’.

12 (b) AVAILABILITY OF PUBLIC HOUSING AND SEC13 TION 8 AMOUNTS.—Section 5 of the United States Hous14 ing Act of 1937 (42 U.S.C. 1437c) is amended by adding

15 at the end the following new subsection:

16 ‘‘(m) USE OF AMOUNTS UNDER HEADQUARTERS RE17 SERVE.—Any amounts appropriated for public housing de18 velopment or assistance under section 8, that are retained

19 by the Secretary in accordance with section 213(d)(4)(A)

20 of the Housing and Community Development Act of 1974,

21 may be used for any of the activities specified in clauses

22 (i) through (v) of such section.’’.

23 (c) USE OF SECTION 8 ASSISTANCE FOR PORT24 ABILITY.—Section 213(d)(4) of the Housing and Commu-
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1 nity Development Act of 1974 is amended by adding at

2 the end the following new subparagraph:

3 ‘‘(C) Of any financial assistance for the

4 rental housing assistance program under sec5 tion 8 of the United States Housing Act of

6 1937 that is reserved pursuant to subparagraph

7 (A), 5 percent shall be reserved for use only for

8 the purposes of providing assistance pursuant

9 to section 8(o)(6) of such Act.

10 SEC. 513. SUPPORTIVE HOUSING FOR THE ELDERLY AND

11 FOR PERSONS WITH DISABILITIES.

12 Section 601 of the Housing and Community Develop13 ment Act of 1992 (Public Law 102–550; 106 Stat. 3802)

14 is amended by striking subsection (a) and inserting the

15 following new subsection:

16 ‘‘(a) AGGREGATE FUNDING.—There are authorized

17 to be appropriated for the purpose of providing assistance

18 in accordance with section 202 of the Housing Act of 1959

19 and section 811 of the Cranston-Gonzalez National Af20 fordable Housing Act, $1,948,000,000 for fiscal year 1995

21 and $1,954,000,000 for fiscal year 1996.’’.

22 SEC. 514. CONGREGATE SERVICES.

23 Section 802(n)(1) of the Cranston-Gonzalez National

24 Affordable Housing Act (42 U.S.C. 8011(n)(1)) is amend-
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1 ed by striking the matter preceding subparagraph (A) and

2 inserting the following:

3 ‘‘(1) AUTHORIZATION AND USE.—There are au4 thorized to be appropriated to carry out this section

5 $25,000,000 for fiscal year 1995, and $26,000,000

6 for fiscal year 1996, of which not more than—’’.

7 SEC. 515. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER8 LY INDEPENDENCE.

9 (a) SECTION 8 ASSISTANCE.—The first sentence of

10 section 803(j) of the Cranston-Gonzalez National Afford11 able Housing Act (42 U.S.C. 8012(j)) is amended to read

12 as follows: ‘‘The budget authority available under section

13 5(c) of the United States Housing Act of 1937 for assist14 ance under section 8 of such Act is authorized to be in15 creased by $25,000,000 on or after October 1, 1994, and

16 by $25,000,000 on or after October 1, 1995.’’.

17 (b) SUPPORTIVE SERVICES AUTHORIZATION.—The

18 first sentence of section 803(k) of the Cranston-Gonzalez

19 National Affordable Housing Act (42 U.S.C. 8012(k)) is

20 amended to read as follows: ‘‘There are authorized to be

21 appropriated for the Secretary to carry out the responsibil22 ities for supportive services under the demonstrations

23 under this section $7,000,000 to become available in fiscal

24 year 1995, and $7,000,000 to become available in fiscal

25 year 1996.’’.
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1 SEC. 516. HOUSING OPPORTUNITIES FOR PERSONS WITH

2 AIDS.

3 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

4 863 of the Cranston-Gonzalez National Affordable Hous5 ing Act (42 U.S.C. 12912) is amended to read as follows:

6 ‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

7 ‘‘There are authorized to be appropriated to carry out

8 this subtitle $212,000,000 for fiscal year 1995 and

9 $225,000,000 for fiscal year 1996.’’.

10 SEC. 517. NATIONAL HOMEOWNERSHIP FUND.

11 Subtitle A of title III of the Cranston-Gonzalez Na12 tional Affordable Housing Act (42 U.S.C. 12701 note) is

13 amended by inserting after section 308 the following new

14 section:

15 ‘‘SEC. 309. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘There are authorized to be appropriated for assist17 ance under the National Homeownership Fund

18 $115,000,000 for fiscal year 1995 and $215,000,000 for

19 fiscal year 1996. Any amount appropriated under this sec20 tion shall remain available until expended.

21 SEC. 518. LOW-INCOME HOUSING PRESERVATION.

22 (a) ASSISTANCE AND INCENTIVES.—Section 234 of

23 the Housing and Community Development Act of 1987

24 (12 U.S.C. 4124) is amended to read as follows:
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1 ‘‘SEC. 234. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘(a) IN GENERAL.—There are authorized to be ap3 propriated for assistance and incentives authorized under

4 this subtitle $358,000,000 for fiscal year 1995 and

5 $450,000,000 for fiscal year 1996.

6 ‘‘(b) GRANTS.—Subject to approval in appropriation

7 Acts, not more than $40,000,000 of the amounts made

8 available under subsection (a) for fiscal year 1995, and

9 not more than $40,000,000 of the amounts made available

10 under subsection (a) for fiscal year 1996, shall be available

11 for grants under section 221(d)(2).’’.

12 (b) TECHNICAL ASSISTANCE AND CAPACITY BUILD13 ING.—The first sentence of section 257 of the Housing

14 and Community Development Act of 1987 (12 U.S.C.

15 4147) is amended to read as follows: ‘‘The Secretary shall

16 use not more than $20,000,000 of the amounts made

17 available under section 234(a) for fiscal year 1995, and

18 not more than $20,000,000 of the amounts made available

19 under section 234(a) for fiscal year 1996, to carry out

20 this subtitle.’’.

21 SEC. 519. FLEXIBLE SUBSIDY PROGRAM.

22 Section 201(j)(5) of the Housing and Community De23 velopment Amendments of 1978 (12 U.S.C. 1715z–

24 1a(j)(5)) is amended to read as follows:

25 ‘‘(5) There are authorized to be appropriated for as26 sistance under the flexible subsidy fund not to exceed
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1 $50,000,000 for fiscal year 1995 and $55,000,000 for fis2 cal year 1996.’’.

3 SEC. 520. HOME INVESTMENT PARTNERSHIPS.

4 Section 205 of the Cranston-Gonzalez National Af5 fordable Housing Act (42 U.S.C. 12724) is amended to

6 read as follows:

7 ‘‘SEC. 205. AUTHORIZATION.

8 ‘‘There are authorized to be appropriated to carry out

9 this title $1,700,000,000 for fiscal year 1995, and

10 $2,000,000,000 for fiscal year 1996, of which—

11 ‘‘(1) not more than $25,000,000 for fiscal year

12 1995, and $25,000,000 for fiscal year 1996, shall be

13 for community housing partnership activities author14 ized under section 233; and

15 ‘‘(2) not more than $22,000,000 for fiscal year

16 1995, and $22,000,000 for fiscal year 1996, shall be

17 for activities in support of State and local housing

18 strategies authorized under subtitle C.’’.

19 SEC. 521. COMMUNITY INVESTMENT DEMONSTRATION PRO20 GRAM.

21 Section 6(j) of the HUD Demonstration Act of 1993

22 (42 U.S.C. 1437f note) is amended to read as follows:

23 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—Of any

24 amounts appropriated for incremental assistance under

25 section 8 of the United States Housing Act of 1937, the
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1 Secretary may use not more than $150,000,000 in fiscal

2 year 1995 and $200,000,000 in fiscal year 1996 to carry

3 out this section.’’.

4 SEC. 522. YOUTHBUILD PROGRAM.

5 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

6 402 of the Cranston-Gonzalez National Affordable Hous7 ing Act (42 U.S.C. 12870) is amended by inserting after

8 subsection (c) the following new subsection:

9 ‘‘(d) YOUTHBUILD PROGRAM.—There are authorized

10 to be appropriated for activities under subtitle D

11 $50,000,000 for fiscal year 1995 and $50,000,000 for fis12 cal year 1996. Any amounts appropriated pursuant to this

13 subsection shall remain available until expended.’’.

14 SEC. 523. COMMUNITY DEVELOPMENT BLOCK GRANTS AND

15 SECTION 108 LOAN GUARANTEES.

16 (a) COMMUNITY DEVELOPMENT BLOCK GRANTS.—

17 The second sentence of section 103 of the Housing and

18 Community Development Act of 1974 (42 U.S.C. 5303)

19 is amended to read as follows: ‘‘For purposes of assistance

20 under section 106, there are authorized to be appropriated

21 $4,400,000,000 for fiscal year 1995 and $4,500,000,000

22 for fiscal year 1996.’’.

23 (b) LIMITATION ON LOAN GUARANTEES.—The fifth

24 sentence of section 108(a) of the Housing and Community

25 Development Act of 1974 (42 U.S.C. 5308(a)) is amended
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1 to read as follows: ‘‘Notwithstanding any other provision

2 of law and subject only to the absence of qualified appli3 cants or proposed activities and to the authority provided

4 in this section, to the extent approved or provided in ap5 propriation Acts, the Secretary shall enter into commit6 ments to guarantee notes and obligations under this

7 section with an aggregate principal amount of

8 $2,054,000,000 for fiscal year 1995 and $2,054,000,000

9 for fiscal year 1996.’’.

10 (c) SPECIAL PURPOSE GRANTS.—Section 107 of the

11 Housing and Community Development Act of 1974 (42

12 U.S.C. 5307) is amended by striking ‘‘SEC. 107’’ and all

13 that follows through the end of paragraph (1) of sub14 section (a) and inserting the following:

15 ‘‘SEC. 107. (a) AUTHORIZATION OF APPROPRIA16 TIONS.—

17 ‘‘(1) IN GENERAL.—There are authorized to be

18 appropriated for each of fiscal years 1995 and 1996,

19 $60,000,000, for grants under subsection (b). Of

20 such amounts—

21 ‘‘(A) $7,000,000 shall be available in each

22 such year for grants under subsection (b)(1);

23 ‘‘(B) such sums as may be necessary shall

24 be available in each such year for grants under

25 subsection (b)(2);
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1 ‘‘(C) $7,000,000 shall be available in each

2 such year for grants under subsection (b)(3);

3 ‘‘(D) $28,000,000 shall be available in

4 each such year for grants under subsection

5 (b)(4);

6 ‘‘(E) $6,000,000 shall be available in each

7 such year for grants under subsection (b)(5);

8 ‘‘(F) $2,000,000 shall be available in each

9 such year for grants under subsection (b)(6);

10 ‘‘(G) $8,000,000 shall be available in each

11 such year for grants under subsection (b)(7);

12 ‘‘(H) such sums as may be necessary shall

13 be available in each such year for grants under

14 subsection (b)(8); and

15 ‘‘(I) $3,000,000 shall be available in each

16 such year for grants under subsection (c).’’.

17 SEC. 524. ECONOMIC DEVELOPMENT GRANTS.

18 Section 108(q) of the Housing and Community De19 velopment Act of 1974 (42 U.S.C. 5308) is amended by

20 adding at the end the following new paragraph:

21 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—

22 There are authorized to be appropriated for grants

23 under this subsection $100,000,000 for fiscal year

24 1995 and $100,000,000 for fiscal year 1996.’’.
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1 SEC. 525. NEIGHBORHOOD REINVESTMENT CORPORATION.

2 The first sentence of section 608(a)(1) of the Neigh3 borhood Reinvestment Corporation Act (42 U.S.C.

4 8107(a)) is amended to read as follows: ‘‘There are au5 thorized to be appropriated to the corporation to carry out

6 this title $35,000,000 for fiscal year 1995 and

7 $35,000,000 for fiscal year 1996.’’.

8 SEC. 526. JOHN HEINZ NEIGHBORHOOD DEVELOPMENT

9 PROGRAM.

10 Section 123(g) of the Housing and Urban-Rural Re11 covery Act of 1983 (42 U.S.C. 5318 note) is amended to

12 read as follows:

13 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

14 are authorized to be appropriated to carry out this section

15 $10,000,000 for fiscal year 1995 and $10,000,000 for fis16 cal year 1996.’’.

17 SEC. 527. COLONIAS ASSISTANCE PROGRAM.

18 (a) AUTHORIZATION OF APPROPRIATIONS.—There

19 are authorized to be appropriated for grants under section

20 205 of this Act $100,000,000 for each of fiscal years 1995

21 and 1996. Any amount appropriated to carry out this sec22 tion shall remain available until expended.

23 (b) ALLOCATION OF FUNDS.—Of the amounts appro24 priated under subsection (a) for any fiscal year—
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1 (1) 80 percent shall be available for grants to

2 establish model programs under subsection (c) of

3 section 205; and

4 (2) 20 percent shall be available for competitive

5 grants under subsection (e) of section 205.

6 SEC. 528. NEW TOWNS DEMONSTRATION PROGRAM FOR

7 EMERGENCY RELIEF OF LOS ANGELES.

8 (a) INSURANCE AUTHORITY.—The first sentence of

9 section 1104(d) of the Housing and Community Develop10 ment Act of 1992 (42 U.S.C. 5318 note) is amended to

11 read as follows: ‘‘To the extent provided in appropriation

12 Acts, the Secretary shall use any authority provided pur13 suant to section 531(b) of the National Housing Act to

14 enter into commitments to insure loans and mortgages

15 under this section in fiscal years 1995 and 1996 with an

16 aggregate principal amount not exceeding such sums as

17 may be necessary to carry out the demonstration under

18 this title.’’.

19 (b) SECOND MORTGAGE ASSISTANCE.—Section

20 1105(e) of the Housing and Community Development Act

21 of 1992 (42 U.S.C. 5318 note) is amended to read as

22 follows:

23 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There

24 are authorized to be appropriated for fiscal years 1995
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1 and 1996 such sums as may be necessary for providing

2 assistance under this section.’’.

3 (c) COMMUNITY DEVELOPMENT ASSISTANCE.—Sec4 tion 1106(h) of the Housing and Community Development

5 Act of 1992 (42 U.S.C. 5318 note) is amended to read

6 as follows:

7 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

8 are authorized to be appropriated for fiscal years 1995

9 and 1996 such sums as may be necessary for assistance

10 under this section.’’.

11 SEC. 529. FHA MORTGAGE INSURANCE AGGREGATE LIMIT.

12 Section 531(b) of the National Housing Act (12

13 U.S.C. 1735f–9(b)) is amended to read as follows:

14 ‘‘(b) Notwithstanding any other provision of law and

15 subject only to the absence of qualified requests for insur16 ance, to the authority provided in this Act, and to the limi17 tation in subsection (a), the Secretary shall enter into

18 commitments to insure mortgages under this Act with an

19 aggregate principal amount of $105,000,000,000 during

20 fiscal year 1995 and $91,000,000,000 during fiscal year

21 1996.’’.
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1 SEC. 530. GNMA MORTGAGE-BACKED SECURITIES GUARAN2 TEE LIMIT.

3 Section 306(g)(2) of the Federal National Mortgage

4 Association Charter Act (12 U.S.C. 1721(g)(2)) is amend5 ed to read as follows:

6 ‘‘(2) Notwithstanding any other provision of law and

7 subject only to the absence of qualified requests for guar8 antees, to the authority provided in this subsection, and

9 to the extent of or in such amounts as any funding limita10 tion approved in appropriation Acts, the Association shall

11 enter into commitments to issue guarantees under this

12 subsection in an aggregate amount of $130,000,000,000

13 during fiscal year 1995 and $130,000,000,000 during fis14 cal year 1996. There are authorized to be appropriated

15 to cover the costs (as such term is defined in section 502

16 of the Congressional Budget Act of 1974) of guarantees

17 issued under this Act by the Association such sums as may

18 be necessary for each of fiscal years 1995 and 1996.’’.

19 SEC. 531. EXCLUSION OF GNMA FROM HUD PERSONNEL

20 CEILINGS.

21 Section 502(a) of the Housing Act of 1948 (12

22 U.S.C. 1701c(a)) is amended by adding at the end the

23 following new sentence: ‘‘Notwithstanding any other provi24 sion of law, employees of the Government National Mort25 gage Association Department in the Department of Hous26 ing and Urban Development shall not be considered em-
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1 ployees of the Department for purposes of any limitation

2 on the number of employees of the Department.’’.

3 SEC. 532. HUD RESEARCH AND DEVELOPMENT.

4 The second sentence of section 501 of the Housing

5 and Urban Development Act of 1970 (12 U.S.C. 1701z–

6 1) is amended to read as follows: ‘‘There are authorized

7 to be appropriated to carry out this title $40,000,000 for

8 fiscal year 1995 and $42,000,000 for fiscal year 1996.’’.

9 SEC. 533. RESIDENTIAL LEAD-BASED PAINT HAZARD RE10 DUCTION.

11 (a) TARGET HOUSING HAZARD REDUCTION.—

12 (1) AUTHORIZATION OF APPROPRIATIONS.—

13 Section 1011(p) of the Housing and Community De14 velopment Act of 1992 (42 U.S.C. 4852(p)) is

15 amended to read as follows:

16 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—For the

17 purposes of carrying out this Act, there are authorized to

18 be appropriated $100,000,000 for fiscal year 1995 and

19 $110,000,000 for fiscal year 1996.’’.

20 (2) TECHNICAL ASSISTANCE AND CAPACITY

21 BUILDING.—Section 1011(g) of the Housing and

22 Community Development Act of 1992 (42 U.S.C.

23 4852(g)) is amended—

24 (A) in paragraph (1)—
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1 (i) in the first sentence, by inserting

2 before the period at the end the following:

3 ‘‘, by providing technical assistance, either

4 directly, or indirectly under contracts or

5 otherwise’’; and

6 (ii) by striking the second sentence;

7 and

8 (B) by striking paragraph (2) and insert9 ing the following new paragraph:

10 ‘‘(2) SET-ASIDE.—Of the total amount ap11 proved in appropriation Acts under subsection (p),

12 there shall be set aside to carry out this subsection

13 $3,000,000 for fiscal year 1995 and $3,000,000 for

14 fiscal year 1996.’’.

15 (b) HUD RESEARCH.—Section 1053 of the

16 Housing and Community Development Act of 1992

17 (42 U.S.C. 4854b) is amended to read as follows:

18 ‘‘SEC. 1054. FUNDING.

19 ‘‘Of the total amount approved in appropriation Acts

20 under section 1011(p), there shall be set aside to carry

21 out this part $5,000,000 for fiscal year 1995 and

22 $5,000,000 for fiscal year 1996.’’.
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1 SEC. 534. FAIR HOUSING INITIATIVES PROGRAM.

2 Section 561(g) of the Housing and Community De3 velopment Act of 1987 (42 U.S.C. 3616 note) is amended

4 to read as follows:

5 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

6 are authorized to be appropriated to carry out the provi7 sions of this section $26,000,000 for fiscal year 1995 and

8 $27,000,000 for fiscal year 1996, of which—

9 ‘‘(1) not less than $9,000,000 for fiscal year

10 1995 and $9,000,000 for fiscal year 1996 shall be

11 for private enforcement initiatives authorized under

12 subsection (b), divided equally between activities

13 specified under subsection (b)(1) and those specified

14 under subsection (b)(2);

15 ‘‘(2) not less than $3,000,000 for fiscal year

16 1995 and $3,000,000 for fiscal year 1996 shall be

17 for qualified fair housing enforcement organizations

18 authorized under subsection (c)(1);

19 ‘‘(3) not less than $7,000,000 for fiscal year

20 1995 and $7,000,000 for fiscal year 1996 shall be

21 for the creation of new fair housing enforcement or22 ganizations authorized under subsection (c)(2); and

23 ‘‘(4) not less than $7,000,000 for fiscal year

24 1995 and $7,000,000 for fiscal year 1996 shall be

25 for education and outreach programs authorized

26 under subsection (d), to be divided equally between
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1 activities specified under subsection (d)(1) and those

2 specified under subsections (d)(2) and (d)(3).

3 Any amount appropriated under this section shall remain

4 available until expended.’’.

5 SEC. 535. NATIONAL AMERICAN INDIAN HOUSING COUNCIL.

6 There is authorized to be appropriated for assistance

7 for the National American Indian Housing Council

8 $1,000,000 for fiscal year 1995 and $1,000,000 for fiscal

9 year 1996, for providing training and technical assistance

10 to Indian Housing Authorities.

11 SEC. 536. HOUSING ASSISTANCE COUNCIL.

12 There is authorized to be appropriated for assistance

13 for the Housing Assistance Council $5,000,000 for fiscal

14 year 1995 and $5,000,000 for fiscal year 1996, for provid15 ing training, technical assistance, and financial assistance

16 to develop affordable housing in rural areas.

17 SEC. 537. FLEXIBLE BLOCK GRANT ASSISTANCE UNDER

18 STEWART B. MCKINNEY HOMELESS ASSIST19 ANCE ACT.

20 Title IV of the Stewart B. McKinney Homeless As21 sistance Act (42 U.S.C. 1111361 et seq.) is amended by

22 inserting after section 401 the following new section:

23 ‘‘SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

24 ‘‘There are authorized to be appropriated—
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1 ‘‘(1) $735,000,000 for fiscal year 1995 for

2 grants in accordance with section 312(b) of the

3 Housing and Community Development Act of 1995;

4 and

5 ‘‘(2) $925,000,000 for fiscal year 1996 for

6 grants under this subtitle.

7 Any amounts appropriated pursuant to this section shall

8 remain available until expended.’’.

9 SEC. 538. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCU10 PANCY DWELLINGS.

11 Section 451(a) of the Stewart B. McKinney Homeless

12 Assistance Act (42 U.S.C. 11401(a)), as so redesignated

13 by section 311(3) of this Act, is amended to read as

14 follows:

15 ‘‘(a) INCREASE IN BUDGET AUTHORITY.—The budg16 et authority available under section 5(c) of the United

17 States Housing Act of 1937 for assistance under section

18 8(e)(2) of such Act (as in effect immediately before Octo19 ber 1, 1991) is authorized to be increased by

20 $200,000,000 on or after October 1, 1994, and by

21 $200,000,000 on or after October 1, 1995.’’.

22 SEC. 539. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE

23 SINGLE ROOM OCCUPANCY DWELLINGS.

24 Section 452 of the Stewart B. McKinney Homeless

25 Assistance Act, as amended by section 322 of this Act,
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1 is further amended by adding at the end the following new

2 subsection:

3 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—For

4 purposes of providing assistance under this section, there

5 are authorized to be appropriated $75,000,000 for fiscal

6 year 1995 and $75,000,000 for fiscal year 1996.’’.

7 SEC. 540. RURAL HOMELESSNESS PROGRAM.

8 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

9 453(l)(1) of the Stewart B. McKinney Homeless Assist10 ance Act (42 U.S.C. 11408(l)(1)), as so redesignated by

11 section 811(3) of this Act, is amended to read as follows:

12 ‘‘(1) IN GENERAL.—There are authorized to be

13 appropriated to carry out this section $30,000,000

14 for fiscal year 1995 and $30,000,000 for fiscal year

15 1996.’’.

16 SEC. 541. INTERAGENCY COUNCIL ON THE HOMELESS.

17 Section 208 of the Stewart B. McKinney Homeless

18 Assistance Act (42 U.S.C. 11318) is amended to read as

19 follows:

20 ‘‘SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

21 ‘‘There are authorized to be appropriated to carry out

22 this title $1,609,890 for fiscal year 1995 and $1,658,187

23 for fiscal year 1996.’’.
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1 SEC. 542. CHAIRPERSON OF INTERAGENCY COUNCIL ON

2 THE HOMELESS.

3 Section 202(b) of the Stewart B. McKinney Homeless

4 Assistance Act (42 U.S.C. 11312(b) is amended to read

5 as follows:

6 ‘‘(b) CHAIRPERSON AND VICE CHAIRPERSON.—

7 ‘‘(1) CHAIRPERSON.—The Council shall elect a

8 Chairperson from among its members, who shall

9 have a term of 2 years. A member of the Council by

10 reason of any of paragraphs (1) through (16) of

11 subsection (a) who serves as Chairperson for a term

12 may not be elected to serve as Chairperson for the

13 succeeding term. The preceding sentence shall not

14 apply to any member serving as Chairperson on the

15 date of the enactment of the Housing and Commu16 nity Development Act of 1994.

17 ‘‘(2) VICE CHAIRPERSON.—The Vice Chair18 person of the Council shall have a term of 2 years

19 and shall be—

20 ‘‘(A) the Secretary of Housing and Urban

21 Development, if such Secretary is not elected as

22 the Chairperson of the Council; or

23 ‘‘(B) elected by the Council from among its

24 members, if the Secretary of Housing and

25 Urban Development is elected as the Chair26 person of the Council.’’.
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1 SEC. 543. EXTENSION OF INTERAGENCY COUNCIL ON THE

2 HOMELESS.

3 Section 209 of the Stewart B. McKinney Homeless

4 Assistance Act (42 U.S.C. 11319) is amended by striking

5 ‘‘October 1, 1994’’ and inserting ‘‘October 1, 1996’’.

6 SEC. 544. FEDERAL EMERGENCY MANAGEMENT AGENCY

7 FOOD AND SHELTER PROGRAM.

8 Section 322 of the Stewart B. McKinney Homeless

9 Assistance Act (42 U.S.C. 11352) is amended to read as

10 follows:

11 ‘‘SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

12 ‘‘There are authorized to be appropriated to carry out

13 this title $130,000,000 for fiscal year 1995 and

14 $130,000,000 for fiscal year 1996.’’.

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