I

103D CONGRESS

2D SESSION H. R. 4310

To reduce homelessness, reform public housing, expand and preserve affordable housing and homeownership, ensure fair housing for all, empower

communities, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 28, 1994

Mr. GONZALEZ (by request) introduced the following bill; which was referred

to the Committee on Banking, Finance and Urban Affairs

A BILL

To reduce homelessness, reform public housing, expand and

preserve affordable housing and homeownership, ensure

fair housing for all, empower communities, 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 SHORT TITLE AND TABLE OF CONTENTS

4 SECTION 1. (a) SHORT TITLE.—This Act may be

5 cited as the ‘‘Housing Choice and Community Investment

6 Act of 1994’’.

7 (b) TABLE OF CONTENTS.—

TITLE I—ASSISTANCE FOR THE HOMELESS
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Subtitle A—Reorganization of the Stewart B. McKinney Homeless Assistance

Act

Sec. 101. Short title.

Sec. 102. Findings and purposes.

Sec. 103. Definitions.

Sec. 104. Authorizations.

Sec. 105. Application.

Sec. 106. Eligible activities.

Sec. 107. Allocation and distribution of funds.

Sec. 108. Administration of program.

Sec. 109. Citizen participation.

Sec. 110. Reports, reviews, and audits.

Sec. 111. Nondiscrimination in programs and activities.

Sec. 112. Consultation.

Sec. 113. Records, reports, and audits.

Sec. 114. Reports to Congress.

Sec. 115. Innovative Homeless Program.

Subtitle B—Emergency Food and Shelter

Sec. 121. Transfer of the Emergency Food and Shelter Program from FEMA

to HUD.

TITLE II—PUBLIC AND INDIAN HOUSING; CROSS-CUTTING

AUTHORIZATIONS

Subtitle A—Enhance Flexibility for Public Housing Agencies

Sec. 201. Direct loans for modernization and replacement housing.

Sec. 202. Use of modernization funds for replacement housing.

Sec. 203. Facilitate use of public-private partnerships in modernizing public

housing.

Sec. 204. Modification of the Early Childhood Development Program.

Sec. 205. Entrepreneurial PHAs and RMCs.

Sec. 206. Disallowance of earned income for residents who obtain employment.

Sec. 207. Ceiling rents based on reasonable rental value.

Sec. 208. Authorization to sell public housing to nonprofit organizations.

Subtitle B—Severely Distressed Public Housing Program

Sec. 211. Revitalization of severely distressed public housing.

Sec. 212. Modernization program reserve funds.

Sec. 213. Eligibility of severely distressed public housing for public housing operating subsidies.

Sec. 214. Applicability of section 24 and URD statute and rules.

Subtitle C—Anti-Crime Initiatives

Sec. 221. Community partnerships against crime.

Sec. 222. Authority for assisted housing owners and public housing agencies to

ban guns.

Sec. 223. Make criminal records available for screening and evictions.

Subtitle D—Authorizations and Extensions

Sec. 231. Low-income housing.

Sec. 232. Public housing operating subsidies.
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Sec. 233. Family self-sufficiency program.

Sec. 234. Public housing family investment centers.

Sec. 235. Revised Congregate Services Program.

Sec. 236. Indian Housing Loan Guarantee Program.

Subtitle E—Applicability

Sec. 241. Applicability of public housing amendments to Indian housing.

TITLE III—HOMEOWNERSHIP; FHA MORTGAGE INSURANCE

AUTHORIZATION

Subtitle A—Expand Single Family Homeownership Opportunities

Sec. 301. Single family mortgage insurance in revitalization areas.

Sec. 302. Maximum dollar amount for FHA single family mortgages.

Sec. 303. Streamlined refinancing for HUD-held mortgages.

Sec. 304. Innovative affordable housing demonstrations.

Sec. 305. Single Family Risk-Sharing Mortgage Insurance Program.

Sec. 306. Homeownership counseling and outreach.

Subtitle B—National Homeownership Fund Demonstration

Sec. 311. Amendments to NAHA.

Subtitle C—Authorizations

Sec. 321. Flexible Subsidy Program.

Sec. 322 Service coordinators in multifamily housing.

Sec. 323. Limitation on GNMA guarantees for mortgage-backed securities.

Sec. 324. Limitation on FHA insuring authority.

TITLE IV—ECONOMIC OPPORTUNITY; EXPANSION OF

AFFORDABLE HOUSING

Subtitle A—Economic Opportunity

Sec. 401. Economic opportunities for residents in HUD-assisted programs.

Sec. 402. Resident Management/Tenant Opportunity Program

Subtitle B—Section 8 Initiatives

Sec. 411. Choice in residency.

Sec. 412. Merger of the Certificate and Voucher Programs.

Sec. 413. Section 8 certificate and voucher fees.

Subtitle C—Miscellaneous

Sec. 421. Section 811 rental assistance for persons with disabilities.

Sec. 422. Funding for supportive housing for the elderly and for persons with

disabilities.

Sec. 423. Youthbuild.

Sec. 424. HOPE authorization of appropriations.

Sec. 425. Authorization of appropriations for housing opportunities for Persons

with AIDS Program.

TITLE V—PRESERVATION AND PRODUCTION

Sec. 501. Miscellaneous amendments to LIHPRHA.
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Sec. 502. Low-income housing preservation authorization of appropriations.

Sec. 503. FHA fund support of section 8 assistance for property disposition.

Sec. 504. HOME Program loan guarantees.

Sec. 505. HOME authorization of appropriations.

Sec. 506. Extension of the section 221(g)(4) auction provisions.

Sec. 507. Extension of the multifamily mortgage credit demonstrations.

TITLE VI—EXPAND FAIR HOUSING

Sec. 601. Metropolitan areawide strategy demonstration.

Sec. 602. Expand use of amounts in section 213(d)(4) headquarters reserve in

connection with settlement of civil rights litigation.

Sec. 603. Making CDBG expenditures on fair housing activities eligible activities in their own right.

Sec. 604. Fair Housing Initiatives Program authorization of appropriations.

Sec. 605. Civil money penalties for violations of the HOME Mortgage Disclosure Act by nonsupervised mortgagees.

TITLE VII—COMMUNITY DEVELOPMENT AND EMPOWERMENT

Subtitle A—Neighborhood Leveraged Investments for Tomorrow (LIFT)

Program

Sec. 701. Authorization.

Sec. 702. Eligible neighborhoods.

Sec. 703. Eligible activities.

Sec. 704. Grants for neighborhood revitalization projects.

Sec. 705. Competitive grants for neighborhood revitalization projects.

Sec. 706. Records, reports, and audits.

Sec. 707. Training and information activities.

Sec. 708. Definitions.

Subtitle B—Community Viability Fund

Sec. 711. Program authorization.

Sec. 712. Savings provision.

Subtitle C—Colonias Assistance Program

Sec. 721. Authorization.

Sec. 722. Eligible activities.

Sec. 723. Model programs.

Sec. 724. Competitive grants.

Sec. 725. Records, reports, and audits.

Sec. 726. Definitions.

Sec. 727. Extension of Colonia Program under section 916 of the CranstonGonzalez National Affordable Housing Act.

TITLE D—ZONE ECONOMIC DEVELOPMENT INITIATIVE

Sec. 731. Authorization.

Sec. 732. Purpose.

Sec. 733. Eligible activities.

Sec. 734. Allocation of funds.

Sec. 735. Use in conjunction with loan guarantees.

Sec. 736. Records, reports, and audits.

Sec. 737. Funding authorization.
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Subtitle E—Authorizations of Appropriations

Sec. 741. Capacity building for community development and affordable housing.

Sec. 742. Community development block grants.

Sec. 743. Economic development initiative.

TITLE VIII—MANAGEMENT REFORM

Subtitle A—Improve the Allocation and Use of Assistance

Sec. 801. Limit section 8 contract rent adjustments for rents above section 8

existing housing FMRs.

Sec. 802. Provide incentives to refinance high interest mortgages for section 8

projects.

Sec. 803. LMSA reforms.

Sec. 804. Reduce AAF for units where family has not moved since previous

year.

Sec. 805. Preference for working families.

Sec. 806. Use of technical assistance funds by or for HUD staff.

Subtitle B—Office of Public and Indian Housing

Sec. 811. Oversight, technical assistance, emergency action resources, and resident survey for public housing programs.

Sec. 812. Recapture of development amounts.

Subtitle C—Office of Housing

Sec. 821. Section 235 refinancing.

Sec. 822. Elimination of new activity in low-use FHA multifamily development

programs.

Sec. 823. Indemnification for project managers.

Subtitle D—Office of Community Planning and Development

Sec. 831. Management information systems.

Sec. 832. Use of UDAG recaptures.

Subtitle E—Nonjudicial Foreclosure of Defaulted Single Family Mortgages

Sec. 841. Short title.

Sec. 842. Findings and purpose.

Sec. 843. Definitions.

Sec. 844. Applicability.

Sec. 845. Designation of foreclosure commissioner.

Sec. 846. Prerequisites to foreclosure.

Sec. 847. Notice of foreclosure sale.

Sec. 848. Commencement of foreclosure.

Sec. 849. Service of notice of foreclosure sale.

Sec. 850. Presale reinstatement.

Sec. 851. Conduct of sale; adjournment.

Sec. 852. Foreclosure costs.

Sec. 853. Disposition of sale proceeds.

Sec. 854. Transfer of title and possession.

Sec. 855. Record of foreclosure and sale.

Sec. 856. Effect of sale.

Sec. 857. Computation of time.

Sec. 858. Separability.
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Sec. 859. Deficiency judgment.

TITLE IX—MISCELLANEOUS AMENDMENTS

Sec. 901. OFHEO assessment collection dates.

Sec. 902. Lead-based paint technical assistance amendments.

Sec. 903. Lead-based paint target housing hazard reduction program.

Sec. 904. HUD research and development.

1 TITLE I—ASSISTANCE FOR THE HOMELESS

2 Subtitle A—Reorganization of the Stewart B. McKinney

3 Homeless Assistance Act

4 SHORT TITLE

5 SEC. 101. This subtitle may be cited as the ‘‘Stewart

6 B. McKinney Homeless Housing Assistance Reorganiza7 tion Act of 1994’’.

8 FINDINGS AND PURPOSES

9 SEC. 102. (a) FINDINGS.—The Congress finds that—

10 (1) more Americans are homeless than at any

11 time since the Great Depression;

12 (2) homeless populations differ in different

13 parts of the country and require different types of

14 systems of varying sophistication to meet the needs

15 of those populations;

16 (3) the best approach for addressing this situa17 tion is to focus Federal homeless housing assistance

18 on a ‘‘continuum of care’’—a seamless process which

19 moves the homeless from the street into a system

20 which provides outreach and assessment, emergency

21 shelter, transitional housing, and permanent hous22 ing;
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1 (4) the Stewart B. McKinney Homeless Assist2 ance Act created emergency programs to solve spe3 cific homeless problems as they were identified, and

4 has evolved into an ad hoc approach of separate pro5 grams with separate means of distributing assist6 ance, separate rules, and separate reporting require7 ments, which tax the resources of the Department of

8 Housing and Urban Development, local govern9 ments, and not-for-profit homeless providers;

10 (5) the competitive process for distributing as11 sistance under these programs—

12 (A) restricts the flexibility of communities

13 to fashion homeless systems that meet the

14 needs of homeless persons in their areas;

15 (B) does not ensure that Federal resources

16 are targeted where the need is;

17 (C) results in unpredictable funding

18 streams which hinder communities’ ability to

19 plan, develop, and implement comprehensive

20 ‘‘continuum of care’’ systems to assist homeless

21 individuals and families; and

22 (D) impedes the integration and coordina23 tion of the resources—Federal, private, not-for24 profit, and local government—available within a

25 community; and
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1 (6) the current array of programs does not en2 sure that a community will have the tools to create

3 a ‘‘continuum of care’’ to address its homeless

4 needs.

5 (b) PURPOSES.—The purposes of this subtitle are

6 to—

7 (1) reorganize the McKinney Act homeless

8 housing assistance authorities, to assist States and

9 localities to use them more efficiently and effectively

10 through a comprehensive system involving a ‘‘contin11 uum of care’’ approach designed to meet the shelter,

12 service, and permanent housing needs of the Na13 tion’s homeless individuals and families;

14 (2) simplify and make more flexible the provi15 sion of Federal homeless assistance;

16 (3) encourage the cooperation and participation

17 of the States and units of general local government,

18 along with private non-profit organizations, in plan19 ning and implementing comprehensive homeless as20 sistance programs that are designed to meet the

21 array of service and shelter needs of the homeless

22 population toward the ultimate goal of assisting indi23 viduals and families to move to permanent housing

24 and self-sufficiency with supportive services, if nec25 essary, as quickly as possible;
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1 (4) maximize a community’s ability to imple2 ment a ‘‘continuum of care,’’ by working with local

3 groups and not-for-profit providers;

4 (5) assure private non-profit organizations and

5 community groups that HUD will administer the

6 grant if States or units of general local government

7 are reluctant to participate in the program estab8 lished by this subtitle;

9 (6) make more efficient and equitable the man10 ner in which the Department of Housing and Urban

11 Development distributes Federal homeless assist12 ance, and to reduce the burden on the Department’s

13 staff in managing numerous competitions for grants

14 so that its limited staff can focus on providing tech15 nical support, analysis, and evaluation to better en16 able States, units of general local government, and

17 non-profit providers to use Federal homeless assist18 ance;

19 (7) reduce the costs to States, units of general

20 local government, and private non-profit organiza21 tions in applying for and using the assistance; and

22 (8) begin the process of moving toward the goal

23 of meeting the needs of most of the Nation’s home24 less population through the mainstream programs as

25 the Federal resources supporting these programs be-
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1 come available, in accordance with the Nation’s Plan

2 to End Homelessness.

3 DEFINITIONS

4 SEC. 103. As used in this subtitle:

5 (1) The term ‘‘Act’’ means the Stewart B.

6 McKinney Homeless Assistance Act.

7 (2) The term ‘‘applicant’’ means a grantee sub8 mitting an application under section 105.

9 (3) The term ‘‘allocation unit of general local

10 government’’ means a metropolitan city and an

11 urban county.

12 (4) The term ‘‘grantee’’ means—

13 (A) an allocation unit of general local gov14 ernment, Indian tribe, or Insular Area that ad15 ministers a grant under section 108(a)(1);

16 (B) an allocation unit of general local gov17 ernment, Indian tribe, or Insular Area that des18 ignates a public agency or a private non-profit

19 organization (or a consortium of such organiza20 tions) to administer grant amounts instead of

21 the jurisdiction under section 108(a)(2);

22 (C) a public agency or a private non-profit

23 organization (or a consortium of such organiza24 tions) designated by the Secretary under section

25 108(a)(3) to administer grant amounts instead
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1 of an allocation unit of general local govern2 ment, Indian tribe, or Insular Area;

3 (D) an entity receiving grant amounts

4 from the Secretary under section 108(a)(4);

5 (E) a State administering a grant under

6 section 108(b)(1)(A);

7 (F) a unit of general local government re8 ceiving a grant from the Secretary under sec9 tion 108(b)(5); and

10 (G) a private nonprofit organization receiv11 ing a grant from the Secretary under section

12 108(b)(4).

13 (5) The term ‘‘homeless individual’’ has the

14 meaning given such term in section 103 of the Act.

15 (6) The term ‘‘homeless family’’ means a group

16 of one or more related individuals who are homeless

17 individuals.

18 (7) The term ‘‘Indian tribe’’ means any Indian

19 tribe, band, group, and nation, including Alaska In20 dians, Aleuts, and Eskimos, and any Alaskan Native

21 Village, of the United States, which is considered an

22 eligible recipient under the Indian Self-Determina23 tion and Education Assistance Act (Public Law 93–

24 638) or was considered an eligible recipient under
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1 chapter 67 of title 31, United States Code, before

2 the repeal of such chapter.

3 (8) The term ‘‘Insular Area’’ means the Virgin

4 Islands, Guam, American Samoa, and the Northern

5 Mariana Islands.

6 (9) The term ‘‘metropolitan city’’ has the mean7 ing given the term in section 102(a)(4) of the Hous8 ing and Community Development Act of 1974.

9 (10) The term ‘‘private non-profit organization’’

10 means an organization—

11 (A) no part of the net earnings of which

12 inures to the benefit of any member, founder,

13 contributor, or individual;

14 (B) that has a voluntary board;

15 (C) that has an accounting system, or has

16 designated a fiscal agent in accordance with re17 quirements established by the Secretary; and

18 (D) that practices nondiscrimination in the

19 provision of assistance.

20 (11) The term ‘‘recipient’’ means a grantee

21 (other than a State distributing grant amounts to

22 State recipients) and a State recipient.

23 (12) The term ‘‘Secretary’’ means the Secretary

24 of Housing and Urban Development.
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1 (13) The term ‘‘State’’ means each of the sev2 eral States and the Commonwealth of Puerto Rico.

3 (14) The term ‘‘State recipient’’ means—

4 (A) a unit of general local government

5 within the State (other than an allocation unit

6 of general local government) that receives grant

7 amounts from the State under section

8 108(b)(3); and

9 (B) a private non-profit organization re10 ceiving grant amounts from the State under

11 section 108(b)(4).

12 (15) The term ‘‘unit of general local govern13 ment’’ means—

14 (A) a city, town, township, county, parish,

15 village, or other general purpose political sub16 division of a State;

17 (B) the District of Columbia; and

18 (C) any agency or instrumentality thereof

19 that is established pursuant to legislation and

20 designated by the chief executive to act on be21 half of the jurisdiction with regard to provisions

22 of this subtitle.

23 The term includes a consortium of geographically

24 contiguous units of general local government if the

25 Secretary determines that the consortium—
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1 (i) has sufficient authority and administra2 tive capability to carry out the purposes of this

3 subtitle on behalf of its member jurisdictions;

4 and

5 (ii) will, according to a written certification

6 by the State (or States, if the consortium in7 cludes jurisdictions in more than one State), di8 rect its activities to alleviation of problems of

9 homeless individuals or families within the

10 State or States.

11 (16) The term ‘‘urban county’’ has the meaning

12 given the term in section 102(a)(6) of the Housing

13 and Community Development Act of 1974.

14 AUTHORIZATIONS

15 SEC. 104. (a) IN GENERAL.—The Secretary is au16 thorized to make grants, in accordance with the provisions

17 of this subtitle, to grantees to carry out activities to assist

18 homeless individuals and families in support of com19 prehensive homeless assistance systems.

20 (b) FUNDING AMOUNTS.—For purposes of this sub21 title, there are authorized to appropriated $1,020,000,000

22 for fiscal year 1995, and such sums as may be necessary

23 for each of fiscal years 1996 and 1997. Any amounts ap24 propriated shall remain available until expended.

25 (c) AWARDING OF GRANTS.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the Secretary shall distribute amounts ap3 propriated under subsection (b) to grantees under

4 this subtitle.

5 (2) INSUFFICIENT APPROPRIATIONS.—

6 (A) If the amounts appropriated under

7 subsection (b) for any fiscal year are less than

8 50 percent of the amount authorized to be ap9 propriated under that subsection for that year,

10 the Secretary shall distribute the amounts ap11 propriated to States, units of general local gov12 ernment, Indian tribes, Insular Areas, and pri13 vate non-profit organizations on the basis of a

14 competition.

15 (B) Grants under this paragraph shall be

16 subject to the provisions of this subtitle, except

17 such provisions as the Secretary determines are

18 inconsistent with the purposes of this para19 graph. The Secretary shall establish such addi20 tional or alternative requirements for grants

21 under this paragraph as the Secretary deems

22 appropriate, which shall include requirements

23 for applying for, and criteria for awarding, such

24 grants.
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1 (C) The criteria for awarding grants re2 ferred to in subparagraph (B) shall include—

3 (i) the extent to which there is a need

4 for assistance for homeless individuals and

5 families in the jurisdiction;

6 (ii) the extent to which the proposed

7 activities further the establishment and

8 maintenance of the comprehensive home9 less assistance system referred to in sec10 tion 105(b)(1)(C);

11 (iii) the extent to which private non12 profit organizations providing assistance to

13 homeless individuals and families in the ju14 risdiction have been and will be, included

15 in planning for the receipt of assistance

16 under this subtitle, the development of the

17 application under section 105, and the exe18 cution of the proposed activities;

19 (iv) the extent to which homeless indi20 viduals and families will proceed with ap21 propriate expedition through the com22 prehensive homeless assistance system and

23 into permanent housing; and

24 (v) such other criteria as the Sec25 retary deems appropriate to further the
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1 purposes of this paragraph and this sub2 title.

3 (D) The Secretary is authorized to set

4 aside such amounts as the Secretary deems ap5 propriate for grants under this paragraph for

6 Indian tribes and Insular Areas.

7 APPLICATION

8 SEC. 105. (a) IN GENERAL.—Each applicant shall

9 submit an application in such form and in accordance with

10 such procedures as the Secretary shall establish.

11 (b) MINIMUM REQUIREMENTS.—An application

12 under this section shall at a minimum—

13 (1) on the basis of information provided in the

14 current comprehensive affordable housing strategy

15 for the appropriate jurisdiction under section 105 of

16 the Cranston-Gonzalez National Affordable Housing

17 Act, or such other plan as the Secretary may pre18 scribe, set forth for the jurisdiction—

19 (A) a detailed description of the current

20 population of homeless individuals and families;

21 (B) the current facilities and services de22 signed to assist that population; and

23 (C) the comprehensive homeless assistance

24 system to be established and maintained within

25 the jurisdiction (a ‘‘continuum of care’’), which

26 shall include at a minimum—
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1 (i) a system of outreach and assess2 ment for—

3 (I) determining whether an indi4 vidual or family is homeless, needs as5 sistance to avoid becoming homeless,

6 or needs other assistance; and

7 (II) ensuring that individuals and

8 families that are so identified receive

9 appropriate housing and supportive

10 services (which may include services

11 with respect to health, mental health,

12 substance abuse, family support, edu13 cation, and child care, and services di14 rected toward obtaining appropriate

15 income support, including employment

16 training);

17 (ii) the availability of emergency shel18 ters with appropriate supportive services to

19 ensure that homeless individuals and fami20 lies for which such housing is appropriate

21 receive adequate shelter, including during

22 the period in which the assessment re23 ferred to in clause (i) is being performed;

24 (iii) the availability of transitional

25 housing with appropriate supportive serv-
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1 ices to ensure that homeless individuals

2 and families for which such housing is ap3 propriate are prepared for increased re4 sponsibility and permanent housing, or

5 permanent supportive housing, after the

6 transition period;

7 (iv) the availability of permanent

8 housing, or permanent supportive housing,

9 adequate to meet the long-term housing

10 needs of all homeless individuals and fami11 lies; and

12 (v) linkages between assistance pro13 vided under this subtitle and assistance

14 provided under other Federal, State, and

15 local programs that may be used to assist

16 homeless individuals and families, such

17 as—

18 (I) assistance under the Public

19 and Indian Housing and section 8

20 programs under the United States

21 Housing Act of 1937, the Home In22 vestment Partnerships Act, and the

23 community development block grant

24 program under title I of the Housing
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1 and Community Development Act of

2 1974;

3 (II) programs administered by

4 the Secretary of Labor;

5 (III) health, social service, and

6 income support services;

7 (IV) programs designed to assist

8 homeless veterans;

9 (V) adult education, employment

10 training, and education for homeless

11 children and youth; and

12 (VI) national service;

13 (2) provide an assessment of what is required

14 to establish and maintain the comprehensive system

15 referred to in paragraph (1)(C);

16 (3) set forth a multi-year strategy for establish17 ing and maintaining the system, including appro18 priate timetables, milestones, and budget estimates

19 for accomplishing each element of the strategy;

20 (4) set forth a 1-year action plan, identifying all

21 activities to be carried out with assistance under this

22 subtitle and demonstrating how these activities will

23 further the strategy referred to in paragraph (3);

24 (5) describe the means the applicant (other

25 than a State distributing grant amounts to State re-
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1 cipients under section 108(b)(2)) will use to distrib2 ute grant amounts to subgrantees, including whether

3 such amounts will be awarded on a competitive or

4 non-competitive basis;

5 (6) demonstrate that the local board referred to

6 in section 109(b) has signed the application;

7 (7) contain certifications or other such forms of

8 proof of commitments of financial and other re9 sources from each public agency or private non-prof10 it organization that has a role in establishing and

11 maintaining the comprehensive homeless assistance

12 system;

13 (8) contain assurances satisfactory to the Sec14 retary that activities carried out under section 106

15 will meet the requirements of the Act, as provided

16 in section 106(b);

17 (9) in the case of States distributing grant

18 amounts to State recipients, describe the method of

19 distribution;

20 (10) except for grant amounts that States will

21 distribute to State recipients, contain a certification

22 from the public official responsible for submitting

23 the comprehensive housing affordability strategy

24 under section 105 of the Cranston-Gonzalez Na25 tional Affordable Housing Act for the State or unit
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1 of general local government within which the project

2 is located that the proposed project is consistent

3 with the approved housing strategy of such State or

4 unit of general local government;

5 (11) contain a certification that the applicant

6 will comply with the requirements of the Fair Hous7 ing Act, title VI of the Civil Rights Act of 1964, sec8 tion 504 of the Rehabilitation Act of 1973, and the

9 Age Discrimination Act of 1975, and will affirma10 tively further fair housing; and

11 (12) contain a certification that the applicant

12 will comply with the requirements of this subtitle

13 and other applicable laws.

14 ELIGIBLE ACTIVITIES

15 SEC. 106. (a) IN GENERAL.—Recipients may only

16 carry out the following activities with grant amounts

17 under this subtitle:

18 (1) Activities eligible for assistance under the

19 following provisions of the Act—

20 (A) emergency shelters under subtitle B of

21 title IV;

22 (B) transitional housing under subtitle C

23 of title IV;

24 (C) safe havens under subtitle D of title

25 IV;
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1 (D) single room occupancy dwellings under

2 section 441;

3 (E) shelter plus care under subtitle F of

4 title IV; and

5 (F) rural homeless housing assistance

6 under subtitle G of title IV;

7 (2) Permanent housing meeting such require8 ments as the Secretary shall prescribe.

9 (3)(A) For the first year in which a recipient

10 receives grant amounts under this subtitle, adminis11 trative expenses in connection with planning the de12 velopment of, and establishing, its program under

13 this subtitle;

14 (B) in subsequent years, defraying the cost of

15 administering the program; and

16 (C) in all years, defraying the cost of constitut17 ing and operating the local board referred to in sec18 tion 109(b); except that not more than 5 percent of

19 any amounts provided to a recipient under this sub20 title for a fiscal year may be used for activities

21 under this paragraph.

22 (4) Building the capacity of private non-profit

23 organizations to participate in the comprehensive

24 homeless assistance system of the recipient, except

25 that not more than 2 percent of any amounts pro-
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1 vided to a recipient under this subtitle for a fiscal

2 year may be used for activities under this para3 graph.

4 (b) PROGRAM REQUIREMENTS.—Activities assisted

5 under this subtitle shall comply with all applicable require6 ments of the Act, except those that the Secretary deter7 mines are inconsistent with the provisions or purposes of

8 this subtitle.

9 (c) MATCHING FUNDING.—

10 (1) IN GENERAL.—Each recipient shall ensure

11 that contributions totaling not less than 25 percent

12 of the grant amounts made available to the recipient

13 for any fiscal year under this subtitle shall be pro14 vided from non-Federal sources, as defined by the

15 Secretary, to carry out the homeless assistance pro16 gram of the recipient. Each recipient shall certify to

17 the Secretary that it has complied with this section,

18 and shall include with the certification a description

19 of the sources and amounts of the matching funds.

20 (2) WAIVERS.—A recipient may request that

21 the Secretary reduce or waive the matching require22 ment of paragraph (1). The request shall be in a

23 form and manner prescribed by the Secretary, and

24 shall demonstrate that the recipient lacks the fi25 nances and other resources to meet the requirement.
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1 The Secretary may grant the request, if the Sec2 retary determines that imposition of the match—

3 (A) would create a significant hardship for

4 the recipient; and

5 (B) would thwart the overall purpose of

6 the homeless assistance program of the recipi7 ent.

8 (3) CALCULATION OF AMOUNTS.—In calculat9 ing the amount of matching funds required under

10 paragraph (1), a recipient may include—

11 (A) any funds derived from a non-Federal

12 source;

13 (B) the value of any lease on a building;

14 (C) any salary paid to staff to carry out

15 the program of the recipient;

16 (D) the value of the time and services con17 tributed by volunteers, at a rate determined by

18 the Secretary; and

19 (E) the proceeds from bond financing val20 idly issued by a State or local government,

21 agency, or instrumentality thereof, or political

22 subdivision thereof, and repayable with revenues

23 derived from a project assisted under this sub24 title, but not more than 25 percent of the con-
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1 tribution required under paragraph (1) may be

2 derived from this source.

3 (d) LIMITATION ON USE OF FUNDS.—No assistance

4 received under this subtitle (or any State or local govern5 ment funds used to supplement such assistance) may be

6 used to replace other funds previously used, or designated

7 for use, by the State, unit of general local government,

8 Indian tribe, or Insular Area to assist homeless individuals

9 and families.

10 (e) NON-PROFIT HOMELESS PROVIDERS.—Each re11 cipient shall make available at least 51 percent of the

12 grant amounts it receives for any fiscal year to private

13 non-profit organizations that provide assistance to home14 less individuals and families to carry out activities under

15 this subtitle. Such organizations shall meet such minimum

16 standards as the Secretary deems appropriate.

17 (f) ADMINISTRATIVE EXPENSES FOR CERTAIN ENTI18 TIES.—An allocation unit of general local government, In19 dian tribe, or Insular Area, or a State recipient, that des20 ignates a public agency or a private non-profit organiza21 tion (as provided by sections 108(a)(2) and

22 (b)(3)(A)(i)(II), respectively), or a State recipient that en23 ters into an agreement with a State (as provided by sec24 tion 108(b)(3)(A)(i)(III)), shall make available, to defray

25 the administrative expenses of the designee or the State,
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1 such sums as the Secretary deems appropriate from

2 amounts eligible for this purpose under subsection (a)(2).

3 ALLOCATION AND DISTRIBUTION OF FUNDS

4 SEC. 107. (a) INSULAR AREAS.—For each fiscal year,

5 the Secretary shall allocate assistance under this subtitle

6 to Insular Areas in accordance with an allocation formula

7 established by the Secretary.

8 (b) STATES AND ALLOCATION UNITS OF GENERAL

9 LOCAL GOVERNMENT.—

10 (1) FORMULA ALLOCATION.—

11 (A) For each fiscal year, of the amounts

12 that remain after amounts are reserved for In13 sular Areas under subsection (a), the Secretary

14 shall allocate assistance according to the for15 mula described in subparagraph (B) or such

16 other formula as may hereafter be enacted into

17 law.

18 (B)(i) The Secretary shall allocate

19 amounts for allocation units of general local

20 government and States, and for Indian tribes,

21 in a manner that ensures that the percentage of

22 the total amount available under this subtitle

23 for any fiscal year that is allocated for any

24 State or allocation unit of general local govern25 ment, or for Indian tribes, is equal to the per26 centage of the total amount available for section
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1 106 of the Housing and Community Develop2 ment Act of 1974 for such prior fiscal year that

3 is allocated for such State or allocation unit of

4 general local government, or for Indian tribes.

5 (ii) If under the allocation provisions appli6 cable under this subtitle, any allocation unit of

7 general local government would receive a grant

8 of less than 0.05 percent of the amounts appro9 priated to carry out this subtitle for any fiscal

10 year, such amount shall instead be reallocated

11 to the State for use under section 108(b), ex12 cept that any city that is located in the State

13 that does not have counties as local govern14 ments; that has a population greater than

15 40,000, but less than 50,000, as used in deter16 mining the fiscal year 1987 community develop17 ment block grant program allocation; and that

18 was allocated in excess of $1,000,000 in com19 munity development block grant funds in fiscal

20 year 1987 shall receive directly the amount lo21 cated to such city under subsection (a).

22 (iii)(I) All amounts allocated pursuant to

23 the preceding clauses for units for general local

24 government shall be increased on a pro rata

25 basis until the aggregate of such amounts
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1 equals 75 percent of the amounts appropriated

2 under this subtitle for each year.

3 (II) All amounts allocated pursuant to the

4 preceding clauses for States shall be decreased

5 on a pro rata basis until the aggregate of such

6 amounts equals 25 percent of the amounts ap7 propriated under this subtitle for each year.

8 (2) DETERMINATION OF GRANT AMOUNT FOR

9 STATES AND ALLOCATION UNITS OF GENERAL

10 LOCAL GOVERNMENT.—The formula amount deter11 mined for an allocation unit of general local govern12 ment or a State, under paragraph (1) shall be the

13 maximum amount that the jurisdiction is eligible to

14 receive. The Secretary may provide a grant for a

15 State or for an allocation unit of general local gov16 ernment for an amount less than the formula

17 amount, if the Secretary determines that such action

18 is appropriate based upon review of the application

19 under section 105 or as a result of the annual per20 formance review and audit under section 110.

21 (c) REALLOCATIONS.—Any amounts that a State or

22 an allocation unit of general local government is eligible

23 to receive under subsection (b) that are not received for

24 use in the jurisdiction, as provided by sections 108 (a)

25 and (b), or that become available as a result of actions
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1 under section 110(b), shall be added to amounts available

2 for allocation under section 107 for the succeeding fiscal

3 year.

4 ADMINISTRATION OF PROGRAM

5 SEC. 108. (a) ALLOCATION UNITS OF GENERAL

6 LOCAL GOVERNMENT, INDIAN TRIBES, AND INSULAR

7 AREAS.—

8 (1) IN GENERAL.—Except as provided in para9 graphs (2), (3), and (4), an allocation unit of gen10 eral local government, Indian tribe, or Insular Area

11 shall administer grant amounts received under sec12 tion 107 for any fiscal year.

13 (2) AGENCIES AND ORGANIZATIONS DES14 IGNATED BY JURISDICTION.—

15 (A) An allocation unit of general local gov16 ernment, Indian tribe, or Insular Area may

17 elect for any fiscal year to designate a public

18 agency or a private non-profit organization (or

19 a consortium of such organizations) to admin20 ister grant amounts under section 107 instead

21 of the jurisdiction.

22 (B) The Secretary shall prescribe the man23 ner and time for making an election under sub24 paragraph (A), and shall establish criteria for

25 the approval of agencies and organizations,

26 which shall include demonstrated experience of
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1 the entity in providing assistance to homeless

2 individuals and families in the jurisdiction.

3 (C) The allocation unit of general local

4 government, Indian tribe, or Insular Area shall

5 remain both the grantee and the recipient for

6 purposes of this subtitle. The Secretary may, at

7 the request of the jurisdiction, provide grant

8 amounts directly to the agency or organization

9 designated under this paragraph.

10 (3) AGENCIES AND ORGANIZATIONS DES11 IGNATED BY HUD.—If an allocation unit of general

12 local government, Indian tribe, or Insular Area, or

13 (if appropriate) a public agency or private non-profit

14 organization designated by the jurisdiction under

15 paragraph (2), does not receive a grant under sec16 tion 107 for any fiscal year because of failure to

17 meet the application requirements of section 105,

18 the Secretary is authorized to designate an agency

19 or organization meeting the approval criteria re20 ferred to in paragraph (2). Any agency or organiza21 tion so designated shall be both the grantee and re22 cipient for purposes of this subtitle.

23 (4) ADMINISTRATION OF GRANT BY HUD.—If

24 for any fiscal year the Secretary determines that

25 amounts allocated for an allocation unit of general
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1 local government, Indian tribe, or Insular Area will

2 not be used in the jurisdiction, as provided by the

3 preceding provisions of this subsection, the Secretary

4 is authorized to administer such amounts instead of

5 the jurisdiction. The Secretary shall prescribe such

6 procedures and requirements as the Secretary deems

7 appropriate for administering grant amounts under

8 this paragraph.

9 (b) STATES.—

10 (1) IN GENERAL.—States shall elect—

11 (A) to administer grant amounts received

12 under section 107, as provided by paragraphs

13 (2) and (3); or

14 (B) to have the Secretary administer these

15 amounts instead of the State, as provided by

16 paragraph (5).

17 If a State elects to administer grant amounts under

18 subparagraph (A), the election shall be permanent

19 and final.

20 (2) STATE PROGRAM.—Of amounts referred to

21 in paragraph (1)(A), the State—

22 (A) may use up to 15 percent to carry out

23 its own homeless assistance program under this

24 subtitle, except that these amounts may only be

25 used for eligible activities under section
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1 106(a)(1) for which States are eligible recipi2 ents under the Act; and

3 (B) shall distribute the remaining amounts

4 to State recipients for use under this subtitle.

5 Grants to States may only be used to carry out ac6 tivities in areas of the State outside allocation units

7 of general local government.

8 (3) DISTRIBUTION OF AMOUNTS TO STATE RE9 CIPIENTS.—

10 (A)(i) A State distributing amounts to

11 State recipients under paragraph (1)(A) shall,

12 for each fiscal year, afford each such recipient

13 the options of—

14 (I) administering the grant amounts

15 on its own behalf;

16 (II) designating a public agency or a

17 private non-profit organization (as pro18 vided by subsection (a)(2)) to administer

19 the grant amounts instead of the jurisdic20 tion; or

21 (III) entering into an agreement with

22 the State, in consultation with private non23 profit organizations providing assistance to

24 homeless individuals and families in the ju25 risdiction, under which the State will ad-
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1 minister the grant amounts instead of the

2 jurisdiction.

3 These options shall be exercised at such time

4 and in accordance with such criteria as the Sec5 retary may prescribe.

6 (ii) A State recipient designating an agen7 cy or organization as provided by clause (i)(II),

8 or entering into an agreement with the State

9 under clause (i)(III), shall remain the recipient

10 for purposes of this subtitle. The State may, at

11 the request of the State recipient, provide grant

12 amounts directly to the agency or organization

13 designated under clause (i)(II).

14 (B) The State shall distribute amounts to

15 State recipients (or to agencies or organizations

16 designated under subparagraph (A)(i)(II), as

17 appropriate) on the basis of an application con18 taining such information as the Secretary may

19 prescribe. Each application shall evidence an in20 tent to establish a comprehensive homeless as21 sistance system, except that the State may

22 waive this requirement with respect to one or

23 more proposed activities, where the State deter24 mines that—
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1 (i) the activities are necessary to meet

2 the needs of homeless individuals and fam3 ilies within the jurisdiction; and

4 (ii) a comprehensive homeless assist5 ance system is not necessary, due to the

6 nature and extent of homelessness in the

7 jurisdiction.

8 (C) In selecting State recipients and mak9 ing awards under subparagraph (B), the State

10 shall give preference to applications (in accord11 ance with criteria prescribed by the Secretary)

12 that demonstrate higher relative levels of home13 less need and fiscal distress.

14 (D) Each State distributing grant amounts

15 to State recipients under paragraph (2)(B) may

16 retain not to exceed 5 percent of the amount to

17 be used for this purpose to defray the cost of

18 carrying out its responsibilities under this sub19 title.

20 (4) STATE OR HUD ADMINISTRATION OF

21 GRANTS FOR INDIVIDUAL STATE RECIPIENTS.—If in

22 any fiscal year a State distributes grant amounts to

23 a State recipient, but the recipient fails to receive

24 the amounts pursuant to paragraph (3)(A)(i), the

25 Secretary or the State, as the Secretary may pro-
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1 vide, may distribute the amounts to private non2 profit organizations in the jurisdiction. If the Sec3 retary distributes the amounts, the Secretary shall

4 deduct the amounts distributed from the grant pro5 vided to the State for that fiscal year.

6 (5) HUD ADMINISTRATION OF STATE PRO7 GRAM.—If a State elects to have the Secretary ad8 minister its grant amounts under section 107, as

9 provided by paragraph (1), the Secretary is author10 ized to distribute grant amounts to State recipients

11 instead of the State, in accordance with require12 ments and procedures prescribed by the Secretary.

13 The Secretary shall establish criteria for selecting

14 recipients and making awards under this paragraph,

15 which shall include giving preference to applications

16 that demonstrate higher relative levels of homeless

17 need and fiscal distress.

18 CITIZEN PARTICIPATION

19 SEC. 109. (a) IN GENERAL.—Each recipient shall en20 sure that citizens, and appropriate private non-profit orga21 nizations and other interested groups and entities, partici22 pate fully in the development and carrying out of the pro23 gram authorized under this subtitle. The Secretary shall

24 prescribe such requirements to carry out this section as

25 the Secretary deems appropriate, which shall include re26 quirements applicable to the local boards referred to in
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1 subsection (b) and the citizen participation provisions of

2 subsection (c), and the timing of, and sequence for, carry3 ing out the requirements of those subsections.

4 (b) LOCAL BOARDS.—

5 (1) ESTABLISHMENT AND FUNCTION.—Each

6 recipient shall establish and support a local board,

7 which shall assist the recipient in—

8 (A) determining whether the grant should

9 be administered by the recipient, a public agen10 cy or private non-profit organization, or the

11 State or the Secretary, as appropriate, under

12 sections 108 (a) and (b);

13 (B) developing the application under sec14 tion 105;

15 (C) overseeing the activities carried out

16 with assistance under this subtitle; and

17 (D) evaluating the performance of the re18 cipient in carrying out these activities.

19 (2) COMPOSITION OF BOARD.—The local board

20 shall consist of—

21 (A) at least one member representing each

22 of the following groups—

23 (i) homeless individuals and families;

24 (ii) homeless advocates;
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1 (iii) individuals and entities providing

2 assistance to homeless individuals and

3 families;

4 (iv) the business community; and

5 (v) neighborhood advocates;

6 (B) in the case of a recipient that is a

7 State, one member representing the State agen8 cy or instrumentality dealing with mental

9 health;

10 (C) not more than one member represent11 ing the recipient; and

12 (D) such other individuals and entities as

13 the Secretary shall prescribe.

14 (3) DISTRIBUTION OF MEMBERSHIP.—At least

15 51 percent of the membership of the board shall

16 have been nominated by individuals and entities

17 other than a governmental jurisdiction.

18 (4) BOARD SIGN-OFF.—

19 (A) No applicant may submit an applica20 tion to the Secretary under section 105, and no

21 grantee may submit to the Secretary a perform22 ance report under subsection 110(a), unless the

23 board signs the document.

24 (B) No State recipient may submit an ap25 plication under section 108(b)(3) or a perform-
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1 ance report to a State, unless the board signs

2 the document.

3 (5) REVIEW BY SECRETARY.—If the board or

4 other members of the community believe that the

5 process for constituting or operating the board is

6 unfair, they may ask the Secretary to review the

7 matter. The Secretary shall attempt to resolve the

8 problem and where the Secretary finds that the

9 process is unfair, the Secretary may disapprove an

10 application under section 105 or refuse to accept a

11 performance report under section 110(a).

12 (6) CONFLICTS OF INTEREST.—The Secretary

13 shall prescribe standards governing potential con14 flicts of interest under which members of local

15 boards may participate in activities carried out

16 under this subtitle.

17 (c) INVOLVEMENT OF CITIZENS AND OTHERS.—

18 (1) IN GENERAL.—Each recipient shall—

19 (A) make available to its citizens, public

20 agencies, and other interested parties informa21 tion concerning the amount of assistance the ju22 risdiction expects to receive and the range of

23 activities that may be undertaken with the as24 sistance;
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1 (B) publish the proposed application in a

2 manner that, in the determination of the Sec3 retary, affords affected citizens, public agencies,

4 and other interested parties a reasonable oppor5 tunity to examine its content and to submit

6 comments on it;

7 (C) hold one or more public hearings to ob8 tain the views of citizens, public agencies, and

9 other interested parties on the housing needs of

10 the jurisdiction; and

11 (D) provide citizens, public agencies, and

12 other interested parties with reasonable access

13 to records regarding any uses of any assistance

14 the recipient may have received during the pre15 ceding 5 years.

16 (2) NOTICE AND COMMENT.—Before submitting

17 any performance report under section 110(a) or sub18 stantial amendment to an application under section

19 105, a recipient shall provide citizens with reason20 able notice of, and opportunity to comment on, such

21 performance report or application before its submis22 sion.

23 (3) CONSIDERATION OF COMMENTS.—A recipi24 ent shall consider any comments or views of citizens

25 in preparing a final application, amendment to an
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1 application or performance report for submission. A

2 summary of such comments or views shall be at3 tached when an application, amendment to an appli4 cation, or performance report is submitted. The sub5 mitted application, amendment, or report shall be

6 made available to the public.

7 (4) AUTHORITY OF SECRETARY.—The Sec8 retary shall establish procedures appropriate and

9 practicable for providing a fair hearing and timely

10 resolution of citizen complaints related to applica11 tions or performance reports under this subtitle.

12 (d) REQUIREMENTS FOR THE SECRETARY AND

13 STATES DISTRIBUTING AMOUNTS TO STATE RECIPI14 ENTS.—

15 (1) IN GENERAL.—The Secretary may prescribe

16 citizen participation requirements comparable (to the

17 extent appropriate) to those contained in the preced18 ing provisions of this section where—

19 (A) a State is distributing grant amounts

20 to State recipients, as provided by sections

21 108(b)(2);

22 (B) the Secretary is administering the

23 grant amounts of an allocation unit of general

24 local government, as provided by section

25 108(a)(4); and
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1 (C) the Secretary is distributing grant

2 amounts, to recipients, as provided by section

3 18(b)(3), (4), or (5).

4 (2) LAWS INAPPLICABLE.—The following provi5 sions of law shall not apply with respect to the ac6 tions of the Secretary referred to in paragraph (1)—

7 (A) the Federal Advisory Committee Act;

8 and

9 (B) section 103 of the Department of

10 Housing and Urban Development Reform Act

11 of 1989.

12 The Secretary shall establish appropriate standards

13 under this paragraph to ensure the integrity of the

14 process for awarding assistance.

15 REPORTS, REVIEWS, AND AUDITS

16 SEC. 110. (a) GRANTEE PREFERENCE REPORT.—

17 Each grantee shall submit to the Secretary a performance

18 and evaluation report concerning the use of funds made

19 available under this subtitle. The report shall be submitted

20 at such time and contain such information as the Sec21 retary shall prescribe, and shall be made available to the

22 local boards referred to in section 109(b) and to citizens,

23 public agencies, and other interested parties in the juris24 diction of the grantee in sufficient time to permit the

25 board and the citizens, public agencies, and other inter26 ested parties to comment on the report before its submis-
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1 sion. Each grantee performance report shall be signed by

2 the local board.

3 (b) REVIEWS AND AUDITS.—The Secretary shall, at

4 least on an annual basis, make such reviews and audits

5 as may be necessary or appropriate to determine—

6 (1) in the case of a grantee (other than a

7 grantee referred to in paragraph (2)), whether the

8 grantee—

9 (A) has carried out its activities in a timely

10 manner;

11 (B) has made progress toward establishing

12 and maintaining the comprehensive homeless

13 assistance system (‘‘continum of care’’) in con14 formity with its application under this subtitle;

15 (C) has carried out its activities and cer16 tifications in accordance with the requirements

17 of this subtitle and other applicable laws; and

18 (D) has a continuing capacity to carry out

19 its activities in a timely manner; and

20 (2) in the case of States distributing grant

21 amounts to State recipients, whether the State—

22 (A) has distributed amounts to State re23 cipients in a timely manner and in conformance

24 with the method of distribution described in its

25 application;
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1 (B) has carried out its activities and cer2 tifications in compliance with the requirements

3 of this subtitle and other applicable laws; and

4 (C) has made such reviews and audits of

5 the State recipients as may be necessary or ap6 propriate to determine whether they have satis7 fied the applicable performance criteria con8 tained in paragraph (1).

9 The Secretary may make appropriate adjustments in the

10 amount of grants in accordance with the Secretary’s find11 ings under this subsection. With respect to assistance

12 made available for State recipients, the Secretary may ad13 just, reduce, or withdraw such assistance, or take other

14 action as appropriate in accordance with the Secretary’s

15 reviews and audits under this subsection, except that

16 funds already properly expended on eligible activities

17 under this subtitle shall not be recaptured or deducted

18 from future assistance to such recipients.

19 NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES

20 SEC. 111. (a) IN GENERAL.—No person in the Unit21 ed States shall on the ground of race, color, national ori22 gin, religion, or sex be excluded from participation in, be

23 denied the benefits of, or be subjected to discrimination

24 under any program or activity funded in whole or in part

25 with funds made available under this subtitle. Any prohibi26 tion against discrimination on the basis of age under the
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1 Age Discrimination Act of 1975 or with respect to an oth2 erwise qualified handicapped individual, as provided in

3 section 504 of the Rehabilitation Act of 1973, shall also

4 apply to any such program or activity.

5 (b) LIMITATIONS.—

6 (1) INDIAN TRIBES.—No grant may be made to

7 an Indian tribe under this subtitle unless the appli8 cant provides satisfactory assurances that its pro9 gram will be conducted and administered in con10 formity with title II of Public Law 90–284. The Sec11 retary may waive, in connection with grants to In12 dian tribes, the provisions of subsection (a).

13 (2) HAWAIIAN HOME LANDS.—Nothing in this

14 subtitle relating to discrimination on the basis of

15 race shall apply to the provision of assistance to the

16 Hawaiian Home Lands.

17 CONSULTATION

18 SEC. 112. In carrying out the provisions of this sub19 title, including the issuance of regulations, the Secretary

20 shall consult with other Federal departments and agencies

21 administering programs affecting homeless individuals

22 and families.

23 RECORDS, REPORTS, AND AUDITS

24 SEC. 113. (a) KEEPING OF RECORDS.—Any recipient

25 (including a State distributing grant amounts to State re-
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1 cipients under section 108(b)(2)(B)) shall keep such

2 records as may be reasonably necessary—

3 (1) to disclose the amounts and the disposition

4 of the grant amounts; and

5 (2) to ensure compliance with the requirements

6 of this subtitle.

7 (b) ACCESS TO DOCUMENTS BY THE SECRETARY.—

8 The Secretary shall have access for the purpose of audit

9 and examination to any books, documents, papers, and

10 records of any recipient specified in subsection (a) that

11 are pertinent to grant amounts received in connection

12 with, and the requirements of, this subtitle.

13 (c) ACCESS TO DOCUMENTS BY THE COMPTROLLER

14 GENERAL.—The Comptroller General of the United

15 States, or any of the duly authorized representatives of

16 the Comptroller General, shall have access for the purpose

17 of audit and examination to any books, documents, papers,

18 and records of any recipient specified in subsection (a)

19 that are pertinent to grant amounts received in connection

20 with, and the requirements of, this subtitle.

21 REPORTS TO CONGRESS

22 SEC. 114. The Secretary shall submit a report to the

23 Congress annually, summarizing the activities carried out

24 under this subtitle and setting forth the findings, conclu25 sions, and recommendations of the Secretary as a result

26 of the activities. The report shall be submitted not later
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1 than 4 months after the end of each fiscal year (except

2 that, in the case of fiscal year 1995, the report shall be

3 submitted not later than 6 months after the end of the

4 fiscal year).

5 INNOVATIVE HOMELESS PROGRAM

6 SEC. 115. (a) FUNDING AUTHORIZATION.—Section

7 2(f) of the HUD Demonstration Act of 1993 is amended

8 to read as follows:

9 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—

10 ‘‘(1) IN GENERAL.—There are authorized to be

11 appropriated to carry out this section $100,000,000

12 for fiscal year 1995 and such sums as may be nec13 essary for fiscal year 1996.

14 ‘‘(2) USE OF AMOUNTS.—All amounts appro15 priated under paragraph (1) shall be used only to

16 carry out the comprehensive homeless initiative

17 under subsection (c).’’.

18 (b) REPEAL.—Section 2(g) of such Act is amended

19 by striking ‘‘1994’’ and inserting ‘‘1997’’.

20 Subtitle B—Emergency Food and Shelter

21 TRANSFER OF THE EMERGENCY FOOD AND SHELTER

22 PROGRAM FROM FEMA TO HUD

23 SEC. 121. (a) Section 301 of the Stewart B. McKin24 ney Homeless Assistance Act is amended—

25 (1) by striking the second sentence of sub26 section (a);
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1 (2) by striking the first and second sentences of

2 subsection (b) and inserting in lieu thereof the fol3 lowing: ‘‘The National Board shall consist of the

4 Secretary and six members. The Secretary shall ap5 point members to vacancies on the National Board

6 existing on, or occurring after, the effective date of

7 this sentence.’’;

8 (3) in subsection (c), by striking ‘‘Director’’

9 and inserting in lieu thereof ‘‘Secretary’’; and

10 (4) by striking subsection (e).

11 (b) Section 303 of such Act is amended—

12 (1) by striking ‘‘FEDERAL EMERGENCY MAN13 AGEMENT AGENCY’’ in the section heading and sub14 section (b)(1) and inserting in lieu thereof ‘‘DEPART15 MENT OF HOUSING AND URBAN DEVELOPMENT’’;

16 and

17 (2) by striking ‘‘Director’’ each place it appears

18 and inserting in lieu thereof ‘‘Secretary’’.

19 (c) Section 311 of such Act is amended by striking

20 ‘‘DIRECTOR’’ in the section heading and in the first sen21 tence and inserting in lieu thereof ‘‘SECRETARY’’.

22 (d) Section 321(l) of such Act is amended to read

23 as follows:

24 ‘‘(l) The term ‘Secretary’ means the Secretary

25 of Housing and Urban Development.’’.
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1 (e) Section 322 of such Act is amended to read as

2 follows:

3 ‘‘SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘There are authorized to be appropriated to carry out

5 this title $130,000,000 for fiscal year 1995 and

6 $130,000,000 for fiscal year 1996.’’.

7 (f) The amendments made by the preceding provi8 sions of this section shall become effective on the later of

9 October 1, 1994, or the date of enactment of this Act.

10 TITLE II—PUBLIC AND INDIAN HOUSING;

11 CROSS-CUTTING AUTHORIZATIONS

12 Subtitle A—Enhance Flexibility for Public Housing

13 Agencies

14 DIRECT LOANS FOR MODERNIZATION AND REPLACEMENT

15 SEC. 201. The United States Housing Act of 1937

16 is amended by adding the following new section at the end

17 of title I:

18 ‘‘SEC. 27. DIRECT LOANS FOR MODERNIZATION AND RE19 PLACEMENT.

20 ‘‘(a) GENERAL AUTHORIZATION.—The Secretary is

21 authorized, upon such terms and conditions as the Sec22 retary may prescribe, to make loans to public housing

23 agencies eligible for comprehensive modernization grants

24 under section 14 for purposes of financing activities eligi25 ble for comprehensive modernization grants under that
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1 section, except for upgrading the management and oper2 ation of low-rent public housing projects.

3 ‘‘(b) TERMS AND CONDITIONS.—

4 ‘‘(1) CRITERIA FOR APPROVAL.—In determining

5 whether, or in what amount, to approve an applica6 tion for a loan under this section, the Secretary may

7 consider—

8 ‘‘(A) the ability of the agency to use funds

9 effectively, directly or through contract manage10 ment;

11 ‘‘(B) the adequacy of remaining future al12 locations in providing repairs, replacements,

13 and improvements which will be needed as a re14 sult of usage and depreciation of existing

15 projects over the loan period; and

16 ‘‘(C) such other criteria as the Secretary

17 may specify.

18 ‘‘(2) SPECIAL CONDITIONS.—Notwithstanding

19 paragraph (1), the Secretary may approve a loan

20 under this section only if the Secretary determines

21 that the public housing agency has an acceptable

22 rate of obligation of funds under section 14, or the

23 public housing agency agrees to administer the loan

24 proceeds through contract management.
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1 ‘‘(3) LIMITATIONS ON DENIAL.—The Secretary

2 may not deny a loan under this section on the basis

3 of the proposed repayment period for the loan, un4 less the period is more than 10 years or the Sec5 retary determines that the period otherwise causes

6 the loan to constitute an unacceptable financial risk.

7 ‘‘(4) TERM OF LOAN.—Loans under this section

8 shall be for a term not to exceed 10 years.

9 ‘‘(5) INTEREST RATE.—Loans under this sec10 tion shall bear an interest rate determined by the

11 Secretary of the Treasury, taking into consideration

12 the current market yields on outstanding marketable

13 obligations of the United States with remaining

14 terms to maturities comparable to the average matu15 rities of loans under this section, plus amounts suffi16 cient to cover servicing costs.

17 ‘‘(6) PROHIBITION AGAINST SUBORDINATION.—

18 Loans under this section shall not be subordinated

19 to other debt contracted by the public housing agen20 cy or to any other claim against the agency.

21 ‘‘(7) SUBSIDY AMOUNT.—Based on the strength

22 of the guarantees by the State or unit of general

23 local government, pledges of financial assets, tax

24 revenues, and payments from other sources (non25 Federal or Federal), and the public housing agency’s
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1 pledged sources of repayments (including rents and

2 other anticipated income streams (Federal or non3 Federal)), the Secretary shall establish a subsidy

4 cost, as defined by the Federal Credit Reform Act

5 of 1990, for each loan to an agency. The subsidy

6 shall be calculated by the Office of Management and

7 Budget in consultation with the Secretary, as di8 rected by section 503(a) of the Federal Credit Re9 form Act, consistent with the technical assumptions

10 contained in the President’s Budget to assure that

11 it is fully offset by the premium amount and that

12 the resulting net subsidy cost to the Federal Govern13 ment is zero.

14 ‘‘(8) PREMIUM AMOUNT.—A premium amount

15 shall be assessed to cover the subsidy amount associ16 ated with each loan. This premium shall be paid

17 from the amount the public housing agency received

18 under the comprehensive grant program under sec19 tion 14 in the year the loan is originated.

20 ‘‘(c) FUNDING AND BORROWING AUTHORIZATION.—

21 There are authorized to be appropriated such sums as may

22 be necessary for each of fiscal years 1995 and 1996 for

23 the cost to the government, as defined in section 502 of

24 the Congressional Budget Act, of loans under this section.

25 To the extent provided in appropriation Acts, the Sec-
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1 retary may enter into commitments to make loans under

2 this section with an aggregate principal amount of

3 $2,000,000,000 for fiscal year 1995 and $2,000,000,000

4 for fiscal year 1996.

5 ‘‘(d) LOAN LIMIT.—No loan may be made under this

6 section if the total outstanding loans under this section

7 made to a public housing agency (excluding any amount

8 repaid) would thereby exceed an amount prescribed by the

9 Secretary, but not to exceed 5 times the amount of the

10 public housing agency’s latest comprehensive moderniza11 tion grant under section 14.

12 ‘‘(e) USE OF COMPREHENSIVE GRANTS.—Notwith13 standing any other provision of this title, comprehensive

14 modernization grants or allocations under this title to the

15 public housing agency (including program income derived

16 therefrom) are authorized for use by the public housing

17 agency or by the Secretary for the payment of principal

18 and interest, and fees, due on the loans under this section.

19 ‘‘(f) FEES AND PREMIUMS.—The Secretary is au20 thorized to charge such fees and premiums as the Sec21 retary determines necessary to cover the cost, as defined

22 by the Federal Credit Reform Act of 1990, to the Federal

23 Government with respect to any loan made under this

24 section.
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1 ‘‘(g) PROGRAM REQUIREMENTS.—To assure the full

2 repayment of loans made under this section, as well as

3 the payment of any fees and premiums charged in connec4 tion with the loans, and as a prior condition for receiving

5 the loans, the Secretary shall require—

6 ‘‘(1) the public housing agency to—

7 ‘‘(A) enter into a contract, in a form ac8 ceptable to the Secretary, for repayment of the

9 loans and the other specified charges;

10 ‘‘(B) pledge for repayment of the loan any

11 amount received under the comprehensive grant

12 program under section 14 or grant for which

13 the public housing agency may become eligible

14 under this title and other financial resources,

15 including rental and other public housing agen16 cy income; however, in no case may a loan be

17 granted if the only pledged source of repayment

18 is amounts received under the comprehensive

19 grant program under section 18; and

20 ‘‘(C) furnish, at the discretion of the Sec21 retary, such other security as may be deemed

22 appropriate by the Secretary in making such

23 loans, which may include public housing

24 projects, accounts, or other land or housing
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1 owned by the agency or the proceeds of disposi2 tion thereof; and

3 ‘‘(2) the State or unit of general local govern4 ment in which the public housing agency is located

5 to enter into a contract in a form acceptable to the

6 Secretary under which the jurisdiction shall pledge

7 its financial assets, tax revenues, and other Federal

8 payments, including amounts from present and fu9 ture allocations under title I of the Housing and

10 Community Development Act of 1974, as collateral

11 for repayment of some portion of the loan. In the

12 event of default, the State or unit of general local

13 government shall pay a share of the remaining un14 paid debt service proportional to its pledge.

15 ‘‘(h) APPLICATION OF PLEDGED AMOUNTS.—Not16 withstanding any other provision of Federal, State, or

17 local law, the Secretary is authorized to apply allocations,

18 grants, and sums from other sources pledged under this

19 section to any remaining debt service due the United

20 States as a result of such loans.

21 ‘‘(i) PROGRAM ADMINISTRATION.—The Secretary

22 shall monitor the use of loans under this section by public

23 housing agencies. If the Secretary finds that 50 percent

24 of the annual loan authority has been committed, or public
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1 housing agencies have applied for such commitments, the

2 Secretary may—

3 ‘‘(1) impose limitations on the amount of loans

4 any public housing agency may receive in any fiscal

5 year; or

6 ‘‘(2) request the enactment of legislation in7 creasing the aggregate limitation on loans under this

8 section.

9 ‘‘(j) TRAINING AND INFORMATION.—The Secretary

10 may carry out training and information collection and dis11 semination activities in support of this section using funds

12 otherwise set aside for technical assistance under section

13 14.’’.

14 USE OF MODERNIZATION FUNDS FOR REPLACEMENT

15 HOUSING

16 SEC. 202. Section 14 of the United States Housing

17 Act of 1937 is amended by adding the following new sub18 section at the end thereof:

19 ‘‘(q) A public housing agency may use assistance

20 under this section for the development of additional hous21 ing under this Act, in accordance with requirements appli22 cable to the development of public housing, and for 15-

23 year project-based assistance and 5-year tenant-based as24 sistance, in accordance with section 8, to provide replace25 ment housing as required by section 18.’’.
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1 FACILITATE USE OF PUBLIC-PRIVATE PARTNERSHIPS IN

2 MODERNIZING PUBLIC HOUSING

3 SEC. 203. Section 14(c)(1) of the United States

4 Housing Act of 1937 is amended by inserting before the

5 semicolon the following: ‘‘or, as determined by the Sec6 retary, controlled by the agencies’’.

7 MODIFICATION OF THE EARLY CHILDHOOD

8 DEVELOPMENT PROGRAM

9 Sec. 204. (a) The heading for section 222 of the

10 Housing and Urban-Rural Recovery Act of 1983 is

11 amended to read as follows: ‘‘EARLY CHILDHOOD DEVEL12 OPMENT PROGRAMS FOR PUBLIC HOUSING RESIDENTS

13 AND HOMELESS FAMILIES’’.

14 (b) Section 222(b)(1) of such Act is amended by in15 serting before the semicolon the following: ‘‘, except that

16 the Secretary may make a grant to provide additional as17 sistance for an existing child care center assisted under

18 this section or to expand an existing child care center re19 gardless of whether or not such center was previously as20 sisted under this section’’.

21 (c) Section 222 of such Act is amended—

22 (1) in subsection (a)(1), by inserting before the

23 period the following: ‘‘(including, for purposes of

24 this section, homeless families with children, as de25 fined by the Secretary)’’; and
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1 (2) by redesignating paragraphs (2) and (3) of

2 subsection (c) as paragraphs (3) and (4), and insert3 ing after paragraph (1) the following new para4 graph:

5 ‘‘(2) take into account the proximity of home6 less facilities to the proposed site at which the serv7 ices are proposed to be provided;’’.

8 (d) Section 222(g) of such Act is amended by striking

9 the first two sentences and inserting in lieu thereof the

10 following: ‘‘There are authorized to be appropriated to

11 carry out this section $35,000,000 for fiscal year 1995

12 and $35,000,000 for fiscal year 1995 and $35,000,000 for

13 fiscal year 1996.’’.

14 ENTREPRENEURIAL PHAS AND RMCS

15 SEC. 205. (a) The Secretary may authorize public

16 housing agencies and resident management corporations

17 to conduct demonstrations that—

18 (1) test the extent to which aspects of the public

19 housing program may be exempt from certain statu20 tory requirements while continuing to serve eligible

21 families, and

22 (2) permit agencies and RMCs to set policies

23 for the operation, maintenance, management, and

24 development (including modernization) of one or

25 more projects, without regard to the requirements

26 applicable to public housing in the 1937 Act. In es-
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1 tablishing these policies, agencies and RMCs shall be

2 bound by any applicable State or local law. A dem3 onstration may be approved for a term of up to 5

4 years.

5 (b) The Secretary may waive requirements of the

6 1937 Act that the Secretary determines are not consistent

7 with the purposes of a demonstration, except require8 ments—

9 (1) limiting occupancy to low-income families,

10 as defined in section 3 of the 1937 Act;

11 (2) under section 18 of that Act requiring re12 placement of units in the case of demolition or dis13 position (except that the limitation on the use of

14 tenant-based assistance to applications proposing

15 demolition or disposition of 200 or more units may

16 be waived); and

17 (3) relating to labor standards.

18 The Secretary may also waive any other statutory require19 ments that apply to the project and that the Secretary

20 determines are not consistent with the purposes of a dem21 onstration, except that the Secretary may not waive the

22 Uniform Relocation Assistance and Real Property Acquisi23 tion Policies Act of 1970 or any statutory requirements

24 pertaining to equal opportunity or nondiscrimination or

25 the environment.
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1 (c) The Secretary may select a total of up to 25 pub2 lic housing agencies or RMCs (or a combination of both)

3 to carry out up to 25 demonstrations under this section.

4 The Secretary shall select agencies based on selection cri5 teria including such factors as—

6 (1) the need for a range of project sizes;

7 (2) the need for a range of types of public hous8 ing agencies and RMCs; and

9 (3) the potential effects and benefits the vari10 ations proposed by the agency or RMC could have

11 on the public housing program if the variations were

12 adopted for the whole program.

13 (d) Each demonstration under this section shall—

14 (1) be approved personally by the Secretary;

15 (2) taken as a whole over the life of the dem16 onstration, not result in higher costs to the Federal

17 Government;

18 (3) be consistent with the overall purposes of

19 the public housing program;

20 (4) be evaluated by an independent party; and

21 (5) be consistent with the Fair Housing Act,

22 title VI of the Civil Rights Act of 1964, section 504

23 of the Rehabilitation Act of 1973, the Age Discrimi24 nation Act of 1975, and the National Environmental

25 Policy Act of 1969.
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1 (e) In approving a demonstration under this section,

2 the Secretary may impose such requirements as the Sec3 retary considers to be appropriate to further its purposes.

4 (f) For each demonstration site, the agency or RMC

5 carrying out the demonstration shall submit an annual

6 progress report to the Secretary. The Secretary shall sub7 mit a report to Congress within 1 year after completion

8 of the demonstration, describing the results of the dem9 onstration and making any recommendations for legisla10 tion.

11 (g) There is authorized to be appropriated

12 $1,000,000 for the evaluation of demonstrations under

13 this section.

14 (h) As used in this section:

15 (1) ‘‘Secretary’’ means the Secretary of Hous16 ing and Urban Development.

17 (2) ‘‘1937 Act’’ means the United States Hous18 ing Act of 1937.

19 (3) ‘‘Public housing agency’’ or ‘‘agency’’

20 means a public housing agency, as defined in section

21 3(b)(6) of the 1937 Act. The term includes Indian

22 housing authorities.

23 (4) ‘‘Resident management corporation’’ or

24 ‘‘RMC’’ means a resident management corporation
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1 established in accordance with requirements of the

2 Secretary under section 20 of the 1937 Act.

3 DISALLOWANCE OF EARNED INCOME FOR RESIDENTS

4 WHO OBTAIN EMPLOYMENT

5 SEC. 206. (a) DISALLOWANCE OF EARNED INCOME

6 FROM PUBLIC HOUSING RENT DETERMINATIONS.—

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

8 States Housing Act of 1937 is amended by striking

9 the undesignated paragraph at the end thereof and

10 inserting in lieu thereof the following new sub11 section:

12 ‘‘(d) DISALLOWANCE OF EARNED INCOME FROM

13 PUBLIC HOUSING RENT DETERMINATIONS.—Notwith14 standing any other provision of law, the rent payable

15 under subsection (a) for any public housing unit by a fam16 ily whose income increases as a result of employment of

17 a member of the family who was previously unemployed

18 for one or more years (including a family whose income

19 increases as a result of the participation of a family mem20 ber in the Family Self-Sufficiency program or other job21 training program) may not be increased for a period of

22 18 months, beginning with the commencement of employ23 ment as a result of the increased income due to such em24 ployment. After the expiration of the 18-month period,

25 rent increases due to the continued employment of such

26 a family member shall be limited to 10 percent per year.
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1 In no case shall rent exceed the amount determined under

2 subsection (a).’’.

3 (2) APPLICABILITY OF AMENDMENT.—Notwith4 standing the amendment made by paragraph (1),

5 any resident of public housing participating in the

6 program under the authority contained in the undes7 ignated paragraph at the end of section 3(c)(3) of

8 the United States Housing Act of 1937, as such

9 paragraph existed before the date of enactment of

10 this Act, shall continue to be governed by such au11 thority.

12 (b) REPEALER.—Section 957 of the Cranston-Gon13 zalez National Affordable Housing Act is hereby repealed.

14 CEILING RENTS BASED ON REASONABLE RENTAL VALUE

15 SEC. 207. (a) Section 3(a)(2)(A)(iii) of the United

16 States Housing Act of 1937 is amended to read as follows:

17 ‘‘(iii) is not less than the reasonable rental

18 value of the unit, as determined by the Sec19 retary.’’.

20 (b) REGULATIONS.—

21 (1) IN GENERAL.—The Secretary shall, by reg22 ulation, after notice and an opportunity for public

23 comment, establish such requirements as may be

24 necessary to carry out the provisions of section

25 3(a)(2)(A) of the United States Housing Act of

26 1937, as amended by subsection (a).
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1 (2) TRANSITION RULE.—Prior to the issuance

2 of final regulations under paragraph (1), a public

3 housing agency may implement ceiling rents which

4 shall be—

5 (A) determined in accordance with section

6 3(a)(2)(A) of the United States Housing Act of

7 1937, as such section existed before the date of

8 enactment of this Act; or

9 (B) equal to the 95th percentile of the rent

10 paid for a unit of comparable size by tenants in

11 the same project or a group of comparable

12 projects totaling 50 units or more.

13 AUTHORIZATION TO SELL PUBLIC HOUSING TO NON14 PROFIT ORGANIZATIONS

15 SEC. 208. The first sentence of section 5(h) of the

16 United States Housing Act of 1937 is amended by striking

17 ‘‘lower income tenants’’ and inserting: ‘‘low-income fami18 lies or to non-profit organizations for resale to low-income

19 families’’.

20 Subtitle B—Severely Distressed Public Housing Program

21 REVITALIZATION OF SEVERELY DISTRESSED PUBLIC

22 HOUSING

23 SEC. 211. (a) SEVERELY DISTRESSED PUBLIC

24 HOUSING.—Section 24 of the United States Housing Act

25 of 1937 is amended as provided by this subsection.

26 (1) DESIGNATION OF ELIGIBLE PROJECTS.—
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1 (A) Subsection (b) is amended to read as

2 follows:

3 ‘‘(b) (RESERVED).’’

4 (B) Subsection (i)(2) is hereby repealed

5 and the following paragraphs redesignated ac6 cordingly.

7 (2) INCREASE PLANNING GRANT DOLLAR

8 CAP.—Subsection (c)(2) is amended by striking

9 ‘‘$200,000’’ and inserting ‘‘$500,000’’.

10 (3) PLANNING GRANT ELIGIBLE ACTIVITIES:

11 COMMUNITY SERVICE.—Subsection (c)(3) is amend12 ed by—

13 (A) inserting the following new subpara14 graph after subparagraph (D) and redesignat15 ing the following subparagraphs accordingly:

16 ‘‘(E) planning for community service and

17 support service activities to be carried out by

18 the public housing agency, residents, members

19 of the community, and other persons and orga20 nizations willing to contribute to the social, eco21 nomic, or physical improvement of the commu22 nity (community service is a required element of

23 the revitalization program);’’; and

24 (B) in subparagraph (H), as redesignated,

25 by striking ‘‘designing a suitable replacement
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1 housing plan’’ and inserting ‘‘designing suitable

2 relocation and replacement housing plans,’’;

3 (4) PLANNING GRANT APPLICATION: COMMU4 NITY SERVICE.—Subsection (c)(4) is amended by in5 serting the following new subparagraphs after sub6 paragraph (C) and redesignating the following sub7 paragraphs accordingly:

8 ‘‘(D) a description of the community serv9 ice and support service planning activities to be

10 carried out by the public housing agency, resi11 dents, members of the community, and other

12 persons and organizations willing to contribute

13 to the social, economic, or physical improvement

14 of the community;’’.

15 (5) PLANNING GRANT SELECTION CRITERIA:

16 NATIONAL GEOGRAPHIC DIVERSITY.—Subsection

17 (c)(5) is amended by—

18 (A) striking subparagraph (E) and redesig19 nating the following subparagraphs accordingly;

20 (B) in subparagraph (E), as redesignated,

21 by inserting before the semicolon ‘‘, taking into

22 account the condition of the stock of the public

23 housing agency as a whole’’; and

24 (C) adding at the end the following: ‘‘In

25 making grants, under this subsection, the Sec-
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1 retary may select a lower-rated, approvable ap2 plication over a higher-rated application to in3 crease the national geographic diversity among

4 applications approved under this section.’’.

5 (6) IMPLEMENTATION GRANT ELIGIBLE ACTIVI6 TIES.—

7 (A) Subsection (d)(2) is amended by in8 serting the following new subparagraphs after

9 subparagraph (D) and redesignating the follow10 ing subparagraphs accordingly:

11 ‘‘(E) community service and support serv12 ice activities to be carried out by the public

13 housing agency, residents, members of the com14 munity, and other persons willing to contribute

15 to the social, economic, or physical improvement

16 of the community (community service is a re17 quired element of the revitalization program);

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

19 (B) Subsection (d)(2)(K), as redesignated

20 by subparagraph (A) of this paragraph, is

21 amended by—

22 (i) striking ‘‘15 percent’’ and insert23 ing ‘‘20 percent’’; and

24 (ii) inserting before the period of the

25 following: ‘‘except that an amount equal to
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1 15 percent of the amount of any grant

2 under this subsection used for support

3 services shall be contributed from non-Fed4 eral sources (which contribution shall be in

5 the form of cash, administrative costs, and

6 the reasonable value of in-kind contribu7 tions and may include funding under title

8 I of the Housing and Community Develop9 ment Act of 1974)’’.

10 (7) IMPLEMENTATION GRANT APPLICATIONS:

11 COMMUNITY SERVICE.—Subsection (d)(3) is amend12 ed by inserting the following new subparagraph after

13 subparagraph (C) and redesignating the following

14 subparagraphs accordingly:

15 ‘‘(D) a description of the community serv16 ice and support activities to be carried out by

17 the public housing agency, residents, members

18 of the community, and other persons and orga19 nizations willing to contribute to the social, eco20 nomic, or physical improvement of the commu21 nity;’’.

22 (8) IMPLEMENTATION GRANT SELECTION CRI23 TERIA: NATIONAL GEOGRAPHIC DIVERSITY.—Sub24 section (d)(4) is amended by—
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1 (A) in subparagraph (D), by inserting

2 ‘‘(with assistance from the Department of

3 Housing and Urban Development if necessary)’’

4 after ‘‘applicant’’;

5 (B) striking subparagraph (E) and redes6 ignating the following subparagraphs accord7 ingly;

8 (C) in subparagraph (E), as redesignated,

9 by inserting before the semicolon ‘‘, taking into

10 account the condition of the applicant’s stock as

11 a whole’’; and

12 (D) adding at the end the following: ‘‘In

13 making grants, under this subsection, the Sec14 retary may select a lower-rated, approvable ap15 plication over a higher-rated application to in16 crease the national geographic diversity among

17 applications approved under this section.’’.

18 (9) EXCEPTIONS TO GENERAL PROGRAM RE19 QUIREMENTS.—Subsection (e) is amended by adding

20 at the end the following new paragraph:

21 ‘‘(3) DEMOLITION AND REPLACEMENT.—

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

23 other applicable law or regulation, a revitaliza24 tion plan under this section may include demoli25 tion and replacement on site or in the same
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1 neighborhood if the number of replacement

2 units provided in the same neighborhood is

3 fewer than the number of units demolished as

4 a result of the revitalization effort.

5 ‘‘(B) TENANT-BASED ASSISTANCE.—Not6 withstanding the limitations contained in sub7 paragraph (A)(v) or (C) of section 18(b) (3), a

8 public housing agency may replace not more

9 than one-third of the units demolished or dis10 posed of through a revitalization project under

11 this section with tenant-based assistance under

12 section 8.’’.

13 (10) DEFINITIONS.—(A) Subsection (h)(5) is

14 amended to read as follows:

15 ‘‘(5) SEVERELY DISTRESSED PUBLIC HOUS16 ING.—The term ‘severely distressed public housing’

17 means a public housing project or a building in a

18 project—

19 ‘‘(A) that requires major redesign, recon20 struction, redevelopment, or partial or total

21 demolition to correct serious deficiencies in the

22 original design (including inappropriately high

23 population density), deferred maintenance,

24 physical deterioration or obsolescence of major
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1 systems, and other deficiencies in the physical

2 plant of the project; and

3 ‘‘(B) that either—

4 ‘‘(i)(I) is occupied predominantly by

5 families with children that have extremely

6 low incomes, high rates of unemployment,

7 and extensive dependency on various forms

8 of public assistance; and

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

10 criminal activity (including drug-related

11 criminal activity); or

12 ‘‘(ii) that has a vacancy rate, as deter13 mined by the Secretary, of 50 percent or

14 more; and

15 ‘‘(C) that cannot be revitalized through as16 sistance under other programs, such as the pro17 grams under sections 9 and 14, or through

18 other administrative means because of the inad19 equacy of available funds; and

20 ‘‘(D) that in the case of individual build21 ings, the building is, in the Secretary’s deter22 mination, sufficiently separable from the re23 mainder of the project to make use of the build24 ing feasible for purposes of this section.’’.
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1 (B) Subsection (h) is amended by adding the

2 following new paragraphs at the end thereof:

3 ‘‘(6) COMMUNITY SERVICE.—The term ‘commu4 nity service’ means services provided on a volunteer

5 basis for the social, economic, or physical improve6 ment of the community to be served.

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

8 services’ includes all activities designed to lead to9 ward upward mobility, self-sufficiency, and improved

10 quality of life for the residents of the project, such

11 as literacy training, job training, day care, and eco12 nomic development. Such activities may allow for the

13 participation of residents of the neighborhood.’’.

14 (b) CONFORMING AMENDMENT.—The first sentence

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

16 1937 is amended to read as follows: ‘‘The term ‘eligible

17 housing’ means a public housing project, or one or more

18 buildings within a project, that is owned or operated by

19 a troubled public housing agency that has been troubled

20 for not less than 3 years and that, as determined by the

21 Secretary, has failed to make substantial progress toward

22 effective management.’’.

23 (c) USE OF TENANT-BASED ASSISTANCE FOR RE24 PLACEMENT HOUSING.—Section 18(b)(3)(C)(i) of the
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1 United States Housing Act of 1937 is amended by striking

2 ‘‘15-year’’.

3 (d) REPLACEMENT HOUSING OUTSIDE THE JURIS4 DICTION OF THE PHA.—Section 18(b)(3) of such Act is

5 amended by inserting the following new subparagraph

6 after subparagraph (C), and redesignating the following

7 subparagraphs accordingly:

8 ‘‘(D) may provide that all or part of such addi9 tional dwelling units may be located outside the ju10 risdiction of the public housing agency (the ‘original

11 agency’) if—

12 ‘‘(i) the location is in the same housing

13 market area as the original agency, as deter14 mined by the Secretary;

15 ‘‘(ii) the plan contains an agreement be16 tween the original agency and the public hous17 ing agency in the alternate location or other

18 public or private entity that will be responsible

19 for providing the additional units in the alter20 nate location (‘alternate agency or entity’) that

21 the alternate agency or entity will, with respect

22 to the dwelling units involved—

23 ‘‘(I) provide the dwelling units in ac24 cordance with subparagraph (A);
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1 ‘‘(II) complete the plan on schedule in

2 accordance with subparagraph (E);

3 ‘‘(III) meet the requirements of sub4 paragraph (F) of this paragraph and the

5 maximum rent provisions of subparagraph

6 (G); and

7 ‘‘(IV) not impose a local residency

8 preference on any resident of the jurisdic9 tion of the original agency for purposes of

10 admission to any such units; and

11 ‘‘(iii) the arrangement is approved by the

12 unit of general local government for the juris13 diction in which the additional units will be lo14 cated.’’.

15 MODERNIZATION PROGRAM RESERVE FUNDS

16 SEC. 212. The first sentence of section 14(k)(1) of

17 the United States Housing Act of 1937 is amended by

18 inserting before the period the following: ‘‘and for mod19 ernization needs in connection with the settlement of liti20 gation and desegregation of public housing.’’.

21 ELIGIBILITY OF SEVERELY DISTRESSED PUBLIC HOUSING

22 FOR PUBLIC HOUSING OPERATING SUBSIDIES

23 SEC. 213. Section 9(a)(2) of the United States Hous24 ing Act of 1937 is amended—

25 (1) by inserting immediately after ‘‘one’’ the

26 following: ‘‘that is (A)’’; and
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1 (2) by inserting immediately after ‘‘section 8,’’

2 the following: ‘‘or (B) assisted under section 24 or

3 the program authorized under (i) the third para4 graph of the head, HOMEOWNERSHIP AND OPPOR5 TUNITY FOR PEOPLE EVERYWHERE GRANTS (HOPE

6 GRANTS), of the Department of Veterans Affairs and

7 Housing and Urban Development, and Independent

8 Agencies Appropriations Act, 1993, or (ii) the head,

9 SEVERELY DISTRESSED PUBLIC HOUSING PROJECTS,

10 of the Department of Veterans Affairs and Housing

11 and Urban Development, and Independent Agencies

12 Appropriations Act, 1994,’’.

13 APPLICABILITY OF SECTION 24 AND URD STATUTE AND

14 RULES

15 SEC. 214. Notwithstanding any provisions of the

16 United States Housing Act of 1937, with respect to a pub17 lic housing project that has been selected for funding

18 under section 24 of such Act or through the Urban Revi19 talization Demonstration program included in the Depart20 ments of Veterans Affairs and Housing and Urban Devel21 opment, and Independent Agencies Appropriation Act,

22 1993 (Public Law 102–389) or the Departments of Veter23 ans Affairs and Housing and Urban Development, and

24 Independent Agencies Appropriation Act, 1994 (Public

25 Law 103–124) and that has an approved comprehensive
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1 plan under section 14 of the United States Housing Act

2 of 1937—

3 (1) the Secretary may exempt such projects

4 from any requirements of the United States Housing

5 Act of 1937 and may establish such requirements as

6 the Secretary deems appropriate for any activities

7 funded under section 24 or through the Urban Revi8 talization Demonstration program and for any other

9 activities undertaken at the project pursuant to the

10 approved comprehensive plan and contributing to the

11 revitalization, including activities relating to demoli12 tion, modernization reconstruction, site improve13 ments, and replacement of housing; however, in no

14 event may the Secretary waive, or specify alternative

15 requirements for, statutory requirements related to

16 nondiscrimination, fair housing, labor standards, the

17 environment, or the Uniform Relocation Assistance

18 and Real Property Acquisition Policies Act of 1970;

19 (2) for the replacement of public housing units

20 either on the site of such a project or on other sites,

21 the Secretary may establish such standards as the

22 Secretary deems appropriate with respect to the as23 sessment of racial and socio-economic information

24 relevant to the placement of public housing units on

25 the site; and
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1 (3) for such a revitalized project, the Secretary

2 may establish such requirements as the Secretary

3 deems appropriate with respect to income eligibility,

4 the selection of tenants, the establishment of rents,

5 and for the operation and management of the

6 projects.

7 Subtitle C—Anti-Crime Initiatives

8 COMMUNITY PARTNERSHIPS AGAINST CRIME

9 SEC. 221. (a) CONFORMING PROVISIONS.—Section

10 5001 of the Anti-Drug Abuse Act of 1988 is amended in

11 the table of contents—

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

13 for chapter 2 and inserting the following:

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

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

15 and inserting the following:

‘‘Sec. 5122. Purposes.’’;

16 and

17 (3) by adding the following after the item relat18 ing to section 5130:

‘‘Sec. 5131. Technical assistance.’’.

19 (b) SHORT TITLE, PURPOSES, AND AUTHORITY TO

20 MAKE GRANTS.—The Public and Assisted Housing Drug

21 Elimination Act of 1990 is amended by striking the chap22 ter heading for chapter 2, and by striking sections 5121,

23 5122, and 5123, and inserting the following:
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1 ‘‘CHAPTER 2—COMMUNITY

2 PARTNERSHIPS AGAINST CRIME

3 ‘‘SEC. 5121. SHORT TITLE.

4 ‘‘This chapter may be cited as the ‘Community Part5 nerships Against Crime Act of 1994’.

6 ‘‘SEC. 5122. PURPOSES.

7 ‘‘The purposes of this chapter are to—

8 ‘‘(1) improve the quality of life for law-abiding

9 public housing residents by reducing the levels of

10 fear, violence, and crime in their communities;

11 ‘‘(2) expand and enhance the Federal Govern12 ment’s commitment to eliminating crime in public

13 housing;

14 ‘‘(3) broaden the scope of the Public and As15 sisted Housing Drug Elimination Act of 1990 to

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

17 that is drug-related;

18 ‘‘(4) target opportunities for long-term commit19 ments of funding primarily to public housing agen20 cies with serious crime problems;

21 ‘‘(5) encourage the involvement of a broad

22 range of community-based groups, and residents of

23 neighboring housing that is owned or assisted by the

24 Secretary, in the development and implementation of

25 anti-crime plans;
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1 ‘‘(6) reduce crime and disorder in and around

2 public housing through the expansion of community3 oriented policing activities and problem solving;

4 ‘‘(7) provide training, information services, and

5 other technical assistance to program participants;

6 and

7 ‘‘(8) establish a standardized assessment sys8 tem to evaluate need among public housing agencies,

9 and to measure progress in reaching crime reduction

10 goals.

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

12 ‘‘The Secretary of Housing and Urban Development,

13 in accordance with the provisions of this chapter, may

14 make grants, for use in eliminating crime in and around

15 public and other federally assisted low-income housing

16 projects (1) to public housing agencies (including Indian

17 housing authorities), and (2) to private, for-profit, and

18 non-profit owners of federally assisted low-income housing.

19 In designing the program, the Secretary shall consult with

20 the Attorney General.’’.

21 (c) ELIGIBLE ACTIVITIES.—(1) Section 5124(a) of

22 the Public and Assisted Housing Drug Elimination Act

23 of 1990 is amended—
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1 (A) in the introductory material preceding para2 graph (1), by inserting ‘‘and around’’ after ‘‘used

3 in’’;

4 (B) in paragraph (3), by inserting ‘‘, such as

5 fencing, lighting, locking, and surveillance systems’’

6 before the semicolon;

7 (C) in paragraph (4), by striking subparagraph

8 (A) and inserting the following new subparagraph:

9 ‘‘(A) to investigate crime; and’’;

10 (D) in paragraph (6)—

11 (i) by striking ‘‘in and around public or

12 other federally assisted low-income housing

13 projects’’; and

14 (ii) by striking ‘‘and’’ after the semicolon;

15 (E) in paragraph (7)—

16 (i) by striking ‘‘where a public housing

17 agency receives a grant,’’;

18 (ii) by striking ‘‘drug abuse’’ and inserting

19 ‘‘crime’’; and

20 (iii) by striking the period at the end and

21 inserting a semicolon; and

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

23 paragraphs:

24 ‘‘(8) the employment or utilization of one or

25 more individuals, including law enforcement officers,
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1 made available by contract or other cooperative ar2 rangement with State or local law enforcement agen3 cies, to engage in community policing involving

4 interaction with members of the community on

5 proactive crime control and prevention;

6 ‘‘(9) youth initiatives, such as activities involv7 ing training, education, after school programs, cul8 tural programs, recreation and sports, career plan9 ning, and entrepreneurship and employment; and

10 ‘‘(10) resident services programs, such as job

11 training, education programs, drug and alcohol

12 treatment, and other appropriate social services that

13 address the contributing factors of crime.’’.

14 (2) Section 5124(b) of such Act is amended by strik15 ing ‘‘(7)’’ and inserting in lieu thereof ‘‘(10)’’.

16 (d) APPLICATIONS.—Section 5125 of the Public and

17 Assisted Housing Drug Elimination Act of 1990 is amend18 ed—

19 (1) in subsection (a)—

20 (A) by striking ‘‘To receive a grant’’ and

21 inserting the following:

22 ‘‘(1) APPLICATIONS.—To receive a grant’’;

23 (B) in the second sentence, by striking

24 ‘‘drug-related crime on the premises of’’ and in-
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1 serting the following: ‘‘crime in and around’’;

2 and

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

4 paragraphs:

5 ‘‘(2) ONE-YEAR RENEWABLE GRANTS.—

6 ‘‘(A) IN GENERAL.—Eligible applicants

7 may submit an application for a 1-year grant

8 under this chapter that, subject to the availabil9 ity of appropriated amounts, shall be renewed

10 annually for a period of not more than 4 years,

11 if the Secretary finds, after an annual or more

12 frequent performance review, that the public

13 housing agency is performing under the terms

14 of the grant and applicable laws in a satisfac15 tory manner and meets such other requirements

16 as the Secretary may prescribe.

17 ‘‘(B) PREFERENCE.—The Secretary shall

18 accord a preference to applicants for grants

19 under this paragraph if the grant is to be used

20 to continue or expand activities eligible for as21 sistance under this chapter that have received

22 previous assistance either under this chapter, as

23 it existed prior to the enactment of the Housing

24 Choice and Community Investment Act of

25 1994, or under section 14 of the United States
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1 Housing Act of 1937. Such preference shall not

2 preclude the selection by the Secretary of other

3 meritorious applications, particularly applica4 tions which address urgent or severe crime

5 problems or which demonstrate especially prom6 ising approaches to reducing crime. Such pref7 erence shall not be construed to require con8 tinuation of activities determined by the Sec9 retary to be unworthy of continuation.

10 ‘‘(3) PUBLIC HOUSING AGENCIES THAT HAVE

11 ESPECIALLY SEVERE CRIME PROBLEMS.—The Sec12 retary shall, by regulation issued after notice and

13 opportunity for public comment, set forth criteria for

14 establishing a class of public housing agencies that

15 have especially severe crime problems. The Secretary

16 may allocate a portion of the annual appropriation

17 for this program for public housing agencies in this

18 class.’’.

19 (2) in subsection (b)—

20 (A) by striking the introductory material

21 preceding paragraph (1) and inserting the fol22 lowing: ‘‘The Secretary shall approve applica23 tions under subsection (a)(2) that are not sub24 ject to a preference under subsection (a)(2)(B)

25 on the basis of—’’;
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1 (B) in paragraph (1), by striking ‘‘drug-re2 lated crime problem in’’ and inserting the fol3 lowing: ‘‘crime problem in and around’’;

4 (C) in paragraph (2), by inserting imme5 diately after ‘‘crime problem in’’ the following:

6 ‘‘and around’’; and

7 (D) in paragraph (4), by inserting after

8 ‘‘local government’’ the following: ‘‘, local com9 munity-based non-profit organizations, local

10 resident organizations that represent the resi11 dents of neighboring projects that are owned or

12 assisted by the Secretary,’’;

13 (3) in subsection (c)(2), by striking ‘‘drug-relat14 ed’’ each place it appears; and

15 (4) by striking subsection (d).

16 (e) DEFINITIONS.—Section 5126 of the Public and

17 Assisted Housing Drug Elimination Act of 1990 is amend18 ed by striking paragraphs (1) and (2), and redesignating

19 paragraphs (3) and (4) as paragraphs (1) and (2), respec20 tively.

21 (f) IMPLEMENTATION.—Section 5127 of the Public

22 and Assisted Housing Drug Elimination Act of 1990 is

23 amended by striking ‘‘Cranston-Gonzalez National Afford24 able Housing Act’’ and inserting ‘‘Housing Choice and

25 Community Investment Act of 1994’’.
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1 (g) REPORTS.—Section 5128 of the Public and As2 sisted Housing Drug Elimination Act of 1990 is amend3 ed—

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

5 the following: ‘‘(a) GRANTEE REPORTS.—The Sec6 retary’’;

7 (2) by striking ‘‘drug-related crime in’’ and in8 serting ‘‘crime in and around’’; and

9 (3) by adding at the end the following new sub10 section:

11 ‘‘(b) HUD REPORTS.—The Secretary shall submit a

12 report to the Congress describing the system used to dis13 tribute funds to grantees under this section. Such report

14 shall include, at a minimum—

15 ‘‘(1) a description of the criteria used to estab16 lish the class of public housing agencies with espe17 cially severe crime problems and a list of such agen18 cies;

19 ‘‘(2) the methodology used to distribute funds

20 among the public housing agencies on the list cre21 ated under paragraph (1); and

22 ‘‘(3) the Secretary’s recommendations for any

23 change to the method of distribution of funds.’’.
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1 (h) AUTHORIZATION OF APPROPRIATIONS.—Section

2 5130 of the Public and Assisted Housing Drug Elimi3 nation Act of 1990 is amended—

4 (1) in the first sentence of subsection (a), by

5 striking ‘‘$175,000,000 for fiscal year 1993’’ and all

6 that follows up to the period and inserting

7 ‘‘$265,000,000 for fiscal year 1995, and

8 $265,000,000 for fiscal year 1996’’;

9 (2) in subsection (b)—

10 (A) in the heading, by striking ‘‘SET11 ASIDES’’ and inserting ‘‘SET-ASIDE’’; and

12 (B) by striking the second sentence; and

13 (3) by adding at the end the following new sub14 section (d):

15 ‘‘(d) SET-ASIDE FOR PUBLIC/PRIVATE PARTNER16 SHIPS.—Of any amount made available in any fiscal year

17 to carry out this chapter, 2 percent of such amount shall

18 be available for contracts, grants, cooperative agreements,

19 or interagency agreements with public housing agencies

20 (including Indian housing authorities) and other public or

21 private organizations, to implement programs which in22 volve joint investment by the public and private sectors

23 to conduct activities designed to reduce crime and violence

24 in public housing. Such activities may include the creation
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1 of pilot programs or the replication of successful existing

2 programs.’’.

3 (i) REPEAL.—Section 520(k) of the Cranston-Gon4 zalez National Affordable Housing Act is hereby repealed.

5 (j) TECHNICAL ASSISTANCE.—The Public and As6 sisted Housing Drug Elimination Act of 1990 is further

7 amended by adding at the end the following new section:

8 ‘‘SEC. 5131. TECHNICAL ASSISTANCE.

9 ‘‘Of the amounts appropriated annually for each of

10 fiscal years 1995 and 1996 to carry out this chapter, the

11 Secretary shall use not more than $10,000,000, directly

12 or indirectly, under grants, contracts, or cooperative

13 agreements, to provide training, information services, and

14 other technical assistance to public housing agencies and

15 other entities with respect to their participation in the pro16 gram authorized by this chapter. Such technical assistance

17 may include the establishment and operation of the clear18 inghouse on drug abuse in public housing and the regional

19 training program on drug abuse in public housing under

20 sections 5143 and 5144 of this Act. The Secretary is also

21 authorized to use the foregoing amounts for obtaining as22 sistance in establishing and managing assessment and

23 evaluation criteria and specifications, and obtaining the

24 opinions of experts in relevant fields.’’.
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1 AUTHORITY FOR ASSISTED HOUSING OWNERS AND

2 PUBLIC HOUSING AGENCIES TO BAN GUNS

3 SEC. 222. (a) The United States Housing Act of

4 1937, as amended by section 201, is amended by adding

5 at the end the following new section:

6 ‘‘SEC. 28. AUTHORITY FOR PUBLIC HOUSING AGENCIES

7 AND OWNERS AND LESSORS OF ASSISTED

8 HOUSING TO BAN GUNS.

9 ‘‘Notwithstanding any State or local law to the con10 trary, a public housing agency or other owner or lessor

11 of housing assisted under this Act may utilize leases which

12 ban the possession, use, and discharge of firearms in and

13 around the housing.’’.

14 (b) Notwithstanding any State or local law to the con15 trary, the owner or lessor of any housing project assisted,

16 or financed with a mortgage insured, under a program of

17 the Secretary of Housing and Urban Development may

18 utilize leases which ban the possession, use, and discharge

19 of firearms in and around the project.

20 MAKE CRIMINAL RECORDS AVAILABLE FOR SCREENING

21 AND EVICTIONS

22 SEC. 223. Section 6 of the United States Housing

23 Act of 1937 is amended by inserting the following new

24 subsection at the end:

25 ‘‘(p) Notwithstanding any other provision of Federal,

26 State, or local law, the National Crime Information Cen-
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1 ter, police departments, and any other law enforcement

2 entities shall provide information to public housing agen3 cies upon request regarding the criminal records of appli4 cants for, or residents of, public housing for the purpose

5 of applicant screening, lease enforcement, and eviction. An

6 agency may pay a reasonable fee for such information.’’.

7 Subtitle D—Authorizations and Extensions

8 LOW-INCOME HOUSING

9 SEC. 231. (a) AGGREGATE BUDGET AUTHORITY.—

10 Section 5(c)(6) of the United States Housing Act of 1937

11 (42 U.S.C. 1437c(c)(6)) is amended by adding at the end

12 the following new sentence: ‘‘The aggregate amount of

13 budget authority that may be obligated for assistance re14 ferred to in paragraph (7) is increased (to the extent ap15 proved in appropriation Acts) by at least $14,024,876,000

16 on October 1, 1994, and by at least $6,388,276,000 on

17 October 1, 1995.’’.

18 (b) UTILIZATION OF BUDGET AUTHORITY.—Section

19 5(c)(7) of the United States Housing Act of 1937 (42

20 U.S.C. 1437c(c)(7)) is amended by striking the paragraph

21 designation and all that follows through the end of sub22 paragraph (B) and inserting the following:

23 ‘‘(7)(A) Using the additional budget authority

24 provided under paragraph (6) and the balances of

25 budget authority that become available during fiscal
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1 year 1995, the Secretary shall, to the extent ap2 proved in appropriation Acts, reserve authority to

3 enter into obligations aggregating—

4 ‘‘(i) for public housing grants under sub5 section (a)(2), not more than $413,000,000, of

6 which amount not more than $263,000,000

7 shall be available for Indian housing;

8 ‘‘(ii) for assistance under section 8, not

9 more than $2,743,000,000, of which

10 $514,275,000 shall be available for 15-year

11 contracts for the Community Investment Dem12 onstration program under section 6 of the

13 HUD Demonstration Act of 1993,

14 $514,275,000 shall be for homeless assistance

15 and $171,425,000 shall be for assistance for

16 the disabled;

17 ‘‘(iii) for modernization grants under sec18 tion 14(k), not more than $2,786,000,000, in19 cluding $15,000,000 for training and technical

20 assistance;

21 ‘‘(iv) for assistance under section 8 for

22 loan management, not more than

23 $150,000,000;

24 ‘‘(v) for extensions of contracts expiring

25 under section 8, $5,092,000,000, which shall be
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1 for contracts for assistance under section 8 and

2 vouchers under section 8(o) and for loan man3 agement assistance under such section;

4 ‘‘(vi) for amendments to contracts under

5 section 8, $2,202,100,000;

6 ‘‘(vii) for adjustments to annual contribu7 tions contracts for the costs of providing service

8 coordinators under section 9(a)(1)(B)(2), not

9 more than $30,000,000;

10 ‘‘(viii) for public housing lease adjust11 ments, $21,900,000;

12 ‘‘(ix) for assistance under section 18(e) for

13 replacement housing for units demolished or

14 disposed of under section 18, and for eligible

15 tenants where project owners opt out of the sec16 tion 8 program, not more than $82,916,000;

17 ‘‘(x) for conversions for leased housing

18 contracts under section 23 of this Act (as in ef19 fect immediately before the enactment of the

20 Housing and Community Development Act of

21 1974) to assistance under section 8, not more

22 than $3,960,000; and

23 ‘‘(xi) for grants under section 24 for revi24 talization of severely distressed public housing,

25 not more than $500,000,000.
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1 ‘‘(B) Using the additional budget authority pro2 vided under paragraph (6) and the balances of budg3 et authority that become available during fiscal year

4 1996, the Secretary shall, to the extent approved in

5 appropriation Acts, reserve authority to enter into

6 obligations aggregating—

7 ‘‘(i) for public housing grants under sub8 section (a)(2), not more than $413,000,000, of

9 which amount not more than $263,000,000

10 shall be available for Indian housing;

11 ‘‘(ii) for assistance under section 8, not

12 more than $2,811,500,000 of which

13 $527,175,000 shall be available for 15-year

14 contracts for the Community Investment Dem15 onstration program under section 6 of the

16 HUD Demonstration Act of 1993,

17 $527,175,000 shall be for homeless assistance

18 and $175,725,000 shall be for assistance for

19 the disabled;

20 ‘‘(iii) for modernization grants under sec21 tion 14(k), not more than $2,375,000,000 in22 cluding $15,000,000 for training and technical

23 assistance;
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1 ‘‘(iv) for assistance under section 8 for

2 loan management, not more than

3 $150,000,000;

4 ‘‘(v) for extensions of contracts expiring

5 under section 8, such sums as may be nec6 essary, which shall be for contracts for assist7 ance under section 8 and vouchers under sec8 tion 8(o) and for loan management assistance

9 under such section;

10 ‘‘(vi) for amendments to contracts under

11 section 8, such sums as may be necessary;

12 ‘‘(vii) for adjustments to annual contribu13 tions contracts for the costs of providing service

14 coordinators under section 9(a)(1)(B)(ii), not

15 more than $30,000,000;

16 ‘‘(viii) for public housing lease adjust17 ments, $21,900,000;

18 ‘‘(ix) for assistance under section 18(e) for

19 replacement housing for units demolished or

20 disposed of under section 18, and for eligible

21 tenants where project owners opt out of the sec22 tion 8 program, not more than $82,916,000;

23 ‘‘(x) for conversions from leased housing

24 contracts under section 23 of this Act (as in ef25 fect immediately before the enactment of the
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1 Housing and Community Development Act of

2 1974) to assistance under section 8, not more

3 than $3,960,000; and

4 ‘‘(xi) for grants under section 24 for revi5 talization of severely distressed public housing,

6 not more than $500,000,000.’’.

7 PUBLIC HOUSING OPERATING SUBSIDIES

8 SEC. 232. Section 9(c) of the United States Housing

9 Act of 1937 (42 U.S.C. 1437g(c)) is amended—

10 (1) in paragraph (1), by striking ‘‘There’’ and

11 all that follows and inserting the following new sen12 tence: ‘‘There are authorized to be appropriated for

13 purposes of providing annual contributions under

14 this section $2,496,000,000 for fiscal year 1995 and

15 $2,376,000,000 for fiscal year 1996.’’;

16 (2) in paragraph (2), by striking ‘‘1993 and

17 1994’’ and inserting ‘‘1995 and 1996’’; and

18 (3) in paragraph (3), by striking ‘‘1993 and

19 1994’’ and inserting ‘‘1995 and 1996’’.

20 FAMILY SELF-SUFFICIENCY PROGRAM

21 SEC. 233. The last sentence of section 23(h)(2) of

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

23 1437u(h)(2)) is amended to read as follows: ‘‘Of amounts

24 appropriated under section 9(c), $17,300,000 for fiscal

25 year 1995 and $17,732,000 for fiscal year 1996 are au26 thorized to be used for costs under this paragraph.’’.
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1 PUBLIC HOUSING FAMILY INVESTMENT CENTERS

2 SEC. 234. Section 22(k) of the United States Hous3 ing Act of 1937 (42 U.S.C. 1437t(k)) is amended to read

4 as follows:

5 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There

6 are authorized to be appropriated to carry out this section

7 $26,342,000 for fiscal year 1995 and $27,001,000 for fis8 cal year 1996.’’.

9 REVISED CONGREGATE SERVICES PROGRAM

10 SEC. 235. Section 802(n)(1) of the Cranston-Gon11 zalez National Affordable Housing Act (42 U.S.C.

12 8011(n)(1)) is amended by striking ‘‘$25,000,000’’

13 through ‘‘1992’’ and inserting in lieu thereof, ‘‘$6,267,000

14 for fiscal year 1995’’.

15 INDIAN HOUSING LOAN GUARANTEE PROGRAM

16 SEC. 236. (a) LIMITATION ON OUTSTANDING AGGRE17 GATE PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the

18 Housing and Community Development Act of 1992 (12

19 U.S.C. 1515z–13a(i)(5)(C)) is amended—

20 (1) by striking ‘‘fiscal years 1993 and 1994’’

21 and inserting in lieu thereof ‘‘fiscal years 1995 and

22 1996’’; and

23 (2) by striking ‘‘not exceeding’’ and all that fol24 lows, and inserting in lieu thereof, ‘‘not exceeding

25 $22,388,000 for fiscal year 1995 and $22,388,000
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1 for fiscal year 1996, to the extent provided in appro2 priation Acts.’’.

3 (b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR4 ANTEE FUND.—Section 184(i)(7) of the Housing and

5 Community Development Act of 1992 (12 U.S.C. 1515z–

6 13a(i)(7)) is amended to read as follows:

7 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

8 There are authorized to be appropriated to the

9 Guarantee Fund to carry out this section

10 $3,000,000 for fiscal year 1995 and $3,000,000 for

11 fiscal year 1996.’’.

12 Subtitle E—Applicability

13 APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO

14 INDIAN HOUSING

15 SEC. 241. (a) Section 201(b) of the United States

16 Housing Act of 1937 is amended to read as follows:

17 ‘‘(b) APPLICABILITY OF TITLE I.—Except as other18 wise provided by law, the provisions of title I shall apply

19 to low-income housing developed or operated pursuant to

20 a contract between the Secretary and an Indian housing

21 authority.’’.

22 (b) The amendment made by subsection (a) shall not

23 affect provisions of the United States Housing Act of

24 1937 that were made applicable to public housing devel25 oped or operated pursuant to a contract between the Sec-
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1 retary of Housing and Urban Development and an Indian

2 Housing Authority in accordance with section 201(b)(2)

3 of such Act, as it existed before the effective date of this

4 section.

5 (c) The provisions of section 955(b) of the Cranston6 Gonzalez National Affordable Housing Act, sections

7 103(a)(1), 112, 114, 116, 118, 903, and 927 of the Hous8 ing and Community Development Act of 1992, and sec9 tions 301, 302, 303, and 304 of the Multifamily Housing

10 Property Disposition Reform Act of 1994 shall also apply

11 to public housing developed or operated pursuant to a con12 tract between the Secretary of Housing and Urban Devel13 opment and an Indian Housing authority.

14 (d) The application of section 955(b) of the Cranston15 Gonzalez National Affordable Housing Act to public hous16 ing developed or operated pursuant to a contract between

17 the Secretary of Housing and Urban Development and an

18 Indian Housing Authority shall apply to any volunteer

19 services provided before, on, or after the date of enactment

20 of this Act, except that such application may not be con21 strued to require the repayment of any wages paid before

22 the date of enactment of this Act for services provided be23 fore such date.
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1 TITLE III—HOMEOWNERSHIP; FHA MORTGAGE

2 INSURANCE AUTHORIZATIONS

3 Subtitle A—Expand Single Family Homeownership

4 Opportunities

5 SINGLE FAMILY MORTGAGE INSURANCE IN

6 REVITALIZATION AREAS

7 SEC. 301. (a) ESTABLISHMENT OF PROGRAM.—Title

8 II of the National Housing Act is amended by adding at

9 the end thereof the following new section:

10 ‘‘SINGLE FAMILY MORTGAGE INSURANCE IN

11 REVITALIZATION AREAS

12 ‘‘SEC. 256. (a) GENERAL AUTHORITY.—The Sec13 retary is authorized to insure mortgages in accordance

14 with the provisions of this section, and to make commit15 ments to insure such mortgages before the date of their

16 execution or disbursement thereon.

17 ‘‘(b) ELIGIBLE MORTGAGORS.—A mortgage may be

18 insured under this section only with respect to a mortga19 gor who—

20 ‘‘(1) has an income not exceeding 115 percent

21 of the median income for the area, as determined by

22 the Secretary with adjustments for smaller and larg23 er families, except that the Secretary may establish

24 income ceilings higher or lower than 115 percent of

25 the median for the area on the basis of the Sec26 retary’s findings that such variations are necessary
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1 because of prevailing levels of construction costs or

2 unusually high or low family incomes and except

3 that no income ceiling may exceed 140 percent of

4 the median for the area;

5 ‘‘(2) is a first-time homebuyer, as defined in

6 section 104(14) of the Cranston-Gonzalez National

7 Affordable Housing Act;

8 ‘‘(3) will occupy the dwelling as his or her prin9 cipal residence;

10 ‘‘(4) has received such pre-purchase counseling

11 as the Secretary deems appropriate with respect to

12 the responsibilities and financial management in13 volved in homeownership;

14 ‘‘(5) has not previously been a mortgagor under

15 this section;

16 ‘‘(6) has assets not exceeding such amount as

17 the Secretary may prescribe; and

18 ‘‘(7) meets such other requirements as the Sec19 retary may prescribe.

20 ‘‘(c) ELIGIBLE MORTGAGES.—A mortgage may be in21 sured under this section only if the mortgage—

22 ‘‘(1) has been made to, and is held by, a mort23 gagee approved by the Secretary as responsible and

24 able to service the mortgage properly;
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1 ‘‘(2) covers a one-family dwelling (including a

2 one-family unit in a condominium development and

3 shares representing a one-family unit in a coopera4 tive development) that is located in a revitalization

5 area which is—

6 ‘‘(A) an empowerment zone or enterprise

7 community approved under Subchapter U of

8 Chapter 1 of the Internal Revenue Code of

9 1986, or in an equivalent State-approved enter10 prise zone; or

11 ‘‘(B) an urban neighborhood that, in the

12 determination of the Secretary, is targeted by a

13 unit of general local government for revitaliza14 tion using coordinated affordable housing pro15 grams and enhanced supportive services;

16 ‘‘(3) involves a principal obligation (exclusive of

17 any charges and costs in connection with the loan,

18 including initial service charges and appraisal and

19 inspection fees) in an amount not exceeding the less20 er of—

21 ‘‘(A) $67,500 or 75 percent of the maxi22 mum mortgage amount determined under sec23 tion 203(b)(2)(A), whichever is greater; or

24 ‘‘(B) 100 percent of the appraised value of

25 the property as of the date the mortgage is ac-
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1 cepted for insurance: Provided, That in any

2 case where the dwelling is not approved for

3 mortgage insurance before the beginning of

4 construction, the mortgage may not exceed 90

5 percent of the appraised value of the property

6 as of the date the mortgage is accepted for in7 surance, unless—

8 ‘‘(i) the dwelling was completed more

9 than one year before the application for

10 mortgage insurance; or

11 ‘‘(ii) the dwelling was approved for

12 guaranty, insurance, or a direct loan under

13 chapter 37 of title 38, United States Code,

14 before the beginning of construction; or

15 ‘‘(iii) the dwelling is covered by a

16 consumer protection or warranty plan ac17 ceptable to the Secretary and satisfies all

18 requirements that would have been applica19 ble if the dwelling had been approved for

20 mortgage insurance before the beginning of

21 construction.

22 ‘‘(4) has a maturity satisfactory to the Sec23 retary, but not to exceed 30 years from the date of

24 the beginning of amortization of the mortgage;
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1 ‘‘(5) contains complete amortization provisions

2 satisfactory to the Secretary requiring periodic pay3 ments by the mortgagor not in excess of the mortga4 gor’s reasonable ability to pay, as determined by the

5 Secretary;

6 ‘‘(6) bears interest at such rate as may be

7 agreed upon by the mortgagor and the mortgagee;

8 ‘‘(7) provides, in a manner satisfactory to the

9 Secretary, for the application of the mortgagor’s

10 periodic payments (exclusive of the amount allocated

11 to interest and to the premium charge which is re12 quired for mortgage insurance as hereinafter pro13 vided) to amortization of the principal of the mort14 gage;

15 ‘‘(8) contains such terms and provisions with

16 respect to insurance, repairs, alterations, payment of

17 taxes, default reserves, delinquency charges, fore18 closure proceedings, anticipation of maturity, addi19 tional and secondary liens, and other matters as the

20 Secretary may prescribe; and

21 ‘‘(9) complies with such other terms and condi22 tions as the Secretary may prescribe.

23 ‘‘(d) EXPENSES OF MORTGAGOR.—

24 (1) IN GENERAL.—The mortgagor shall pay all

25 charges and costs in connection with the mortgage,
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1 including any costs necessary to close the mortgage:

2 Provided, That some or all of these charges and

3 costs may be paid on behalf of the mortgagor by any

4 person or entity (including the seller, a governmental

5 jurisdiction, or a private non-profit entity), under

6 such terms and conditions as the Secretary may pre7 scribe.

8 ‘‘(2) LOAN TO COVER EXPENSES.—Any charges

9 or costs paid on behalf of a mortgagor under para10 graph (1) may be in the form of a loan secured by

11 the property under such terms and conditions as the

12 Secretary may prescribe. Any such indebtedness—

13 ‘‘(A) shall be a lien subordinate to that of

14 the insured mortgage;

15 ‘‘(B) shall not be part of the loan secured

16 by the mortgage insured under this section, and

17 ‘‘(C) shall not be considered for purposes

18 of determining the maximum mortgage amount

19 under subsection (c)(3).

20 ‘‘(e) MORTGAGE INSURANCE PREMIUM.—

21 ‘‘(1) IN GENERAL.—In connection with the in22 surance of a mortgage under this section, the Sec23 retary shall establish and collect a deferred up-front

24 premium and an annual premium, as provided in

25 section 203(c)(2) of this Act and section 2103(b)(2)
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1 of the Omnibus Budget Reconciliation Act of 1990,

2 except as provided by paragraph (2) of this sub3 section.

4 ‘‘(2) PAYMENT OF DEFERRED UP-FRONT PRE5 MIUM.—

6 ‘‘(A) IN GENERAL.—The mortgagee shall

7 pay the amount of the deferred up-front pre8 mium due under subparagraph (B) at the time

9 of the sale of the property or when the mort10 gage is paid in full, and shall remit the amount

11 to the Secretary according to such procedures

12 and at such time as the Secretary may pre13 scribe.

14 ‘‘(B) AMOUNT OF PAYMENT.—The amount

15 of the up front premium payable to the Sec16 retary under paragraph (2) shall be the lesser

17 of—

18 ‘‘(i) the amount of the premium es19 tablished under paragraph (1), minus any

20 refund due; and

21 ‘‘(ii) 50 percent of the net apprecia22 tion of the property, as determined by the

23 Secretary, if the premium is due because

24 of a sale of the property.
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1 ‘‘(C) DEFINITION.—For purposes of the

2 subparagraph (B), ‘net appreciation of the

3 property’ means any increase in the value of the

4 property over the original purchase price, less

5 the reasonable costs of sale and the reasonable

6 costs of improvements made to the property.

7 ‘‘(3) STREAMLINE REFINANCING.—Notwith8 standing paragraph (2), no part of the up-front pre9 mium established in connection with a mortgage

10 that was insured under this section and that is refi11 nanced under section 223(a)(7) shall be payable

12 under paragraph (2).

13 ‘‘(f) DEFINITION.—For purposes of this section, the

14 term ‘appraised value’ means the amount set forth in the

15 written statement required under section 226, or a similar

16 amount determined by the Secretary if section 226 does

17 not apply.

18 ‘‘(g) OBLIGATION OF GENERAL INSURANCE FUND.—

19 Any mortgagee under a mortgage insured under this sec20 tion is entitled to receive the benefits of the insurance as

21 provided in section 204(a) with respect to mortgages in22 sured under section 203, and the provisions of subsections

23 (b), (c), (d), (e), (f), (g), (h), (j), and (k) of section 204

24 shall apply to the mortgages insured under this section,

25 except that—
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1 ‘‘(1) all references in section 204 to the Mutual

2 Mortgage Insurance Fund or the Fund shall be con3 strued to refer to the General Insurance Fund;

4 ‘‘(2) all references therein to section 203 shall

5 be construed to refer to this section; and

6 ‘‘(3) the excess remaining, referred to in section

7 204(f)(1), shall be retained by the Secretary and

8 credited to the General Insurance Fund.

9 ‘‘(h) LIMIT ON INSURED MORTGAGES.—The aggre10 gate dollar amount of commitments to insure mortgage

11 under this section for any fiscal year may not exceed 5

12 percent of the amount of commitments to insure mort13 gages covering one- to four-family properties that were

14 made by the Secretary under this title during the preced15 ing fiscal year. However, the Secretary may make commit16 ments to insure mortgages for up to an additional 5 per17 cent in the case of properties in empowerment zones or

18 enterprise communities approved under subchapter U of

19 chapter 1 of the Internal Revenue Code of 1986, or in

20 equivalent State: approved enterprise zones. No more than

21 20 percent of the dwelling units located in a revitalization

22 area may be subject to a mortgage insured under this sec23 tion.’’.

24 (b) IMPLEMENTATION.—The Secretary shall, by in25 terim rule published for effect in the Federal Register, es-
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1 tablish such requirements as may be necessary to carry

2 out the provisions of subsection (a). The Secretary shall

3 issue final regulations based on the interim rule after no4 tice and opportunity for public comment.

5 (c) EVALUATION.—No later than 48 months after the

6 date of implementation, the Secretary shall evaluate the

7 program and, if appropriate, recommend to Congress leg8 islation to terminate or improve it.

9 MAXIMUM DOLLAR AMOUNT FOR FHA SINGLE FAMILY

10 MORTGAGES

11 SEC. 302. Subparagraph (A) of the first sentence of

12 section 203(b)(2) of the National Housing Act is amended

13 by striking clause (ii) and all that follows through

14 ‘‘‘1992;’’ and inserting in lieu thereof the following—

15 ‘‘(ii) 85 percent of the dollar amount limitation

16 determined under section 305(a)(2) of the Federal

17 Home Loan Mortgage Corporation Act for a resi18 dence of the applicable size; except that the applica19 ble dollar amount limitation in effect for any area

20 under this subparagraph (A) may not be less than

21 the greater of—

22 ‘‘(I) the dollar amount limitation in effect

23 under this section for the area on the date of

24 enactment of the Housing Choice and Commu25 nity Investment Act of 1994; or
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1 ‘‘(II) the applicable average area purchase

2 price determined under section 143(e)(2) of the

3 Internal Revenue Code of 1986, adjusted by the

4 Secretary to reflect a single amount using pur5 chase prices for residences that have been pre6 viously occupied, and for residences that have

7 not been so occupied, which amount shall be ad8 justed by the Secretary annually on the basis of

9 the Constant Quality Housing Price Index;’’.

10 STREAMLINED REFINANCING FOR HUD-HELD MORTGAGES

11 SEC. 303. (a) Section 223(a) of the National Housing

12 Act is amended—

13 (1) in paragraph (7), by striking the colon im14 mediately preceding the second proviso and all that

15 follows though ‘‘and the mortgagee’’;

16 (2) by redesignating paragraph (8) as para17 graph (9) and inserting the following new paragraph

18 immediately after paragraph (7):

19 ‘‘(8) given to refinance a mortgage held by the

20 Secretary, upon such terms and conditions as the

21 Secretary may prescribe, covering property on which

22 there is located a one- to four-family residence, or a

23 one-family unit in a condominium project, which

24 mortgage was formerly insured under this Act and

25 subsequently assigned to the Secretary: Provided,

26 That the mortgagor has not previously refinanced a
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1 mortgage pursuant to this paragraph: Provided fur2 ther, That the mortgagor has made all payments due

3 under the note secured by the existing mortgage and

4 all payments due under the note for at least the pre5 vious 6 months, or the mortgagor is under a forbear6 ance agreement and has made all payments due

7 under the note secured by the existing mortgage for

8 at least the previous 6 months: Provided further,

9 That the principal amount of the refinancing mort10 gage may not exceed the outstanding principal bal11 ance of the existing mortgage by more than addi12 tional amounts owed by the mortgagor due to the

13 delinquency and to the receipt of assignment assist14 ance under section 230: Provided further, That the

15 monthly payment due under the refinancing mort16 gage may not exceed the monthly payment due

17 under the existing mortgage: Provided further, That

18 the refinancing mortgage may have a term not more

19 than 12 years in excess of the unexpired term of the

20 assigned mortgage: Provided further, That the refi21 nancing mortgage may be insured under section

22 203(b) or 221(d)(2) of this Act, at the option of the

23 mortgagee, or under section 234(c) of this Act in the

24 case of a condominium: Provided further, That a re25 financing mortgage insured under section 221(d)(2)
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1 shall involve a principal obligation in an amount not

2 to exceed 50 percent of the applicable dollar limita3 tion for a one- to four-family residence under section

4 203(b)(2); or’’; and

5 (3) by adding the following new paragraph after

6 paragraph (9), as redesignated by paragraph (2) of

7 this section:

8 ‘‘(10) a mortgage of the character described in

9 paragraphs (1) through (6) of this subsection shall

10 have a maturity and a principal obligation not in ex11 cess of the maximums prescribed under the applica12 ble section or title of this Act, except that in no case

13 may the principal obligation of a mortgage referred

14 to in paragraph (5) of this subsection exceed 90 per15 cent of the appraised value of the mortgage prop16 erty, and shall bear interest at such rate as may be

17 agreed upon by the mortgagor and the mortgagee.’’.

18 (b) The Secretary of Housing and Urban Develop19 ment may implement the authority to refinance a mort20 gage held by the Secretary under section 223(a)(8) of the

21 National Housing Act, as added by subsection (a) of this

22 section, by notice published in the Federal Register setting

23 forth such requirements as may be necessary.

24 (c) The authority to refinance a mortgage held by the

25 Secretary of Housing and Urban Development under such
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1 section 223(a)(8) shall terminate 30 months after the date

2 of enactment of this Act. The total number of mortgages

3 refinanced under such section 223(a)(8) may not exceed

4 20,000.

5 INNOVATIVE AFFORDABLE HOUSING DEMONSTRATIONS

6 SEC. 304. (a) The Secretary of Housing and Urban

7 Development (the ‘‘Secretary’’) may carry out demonstra8 tions which have the potential to increase homeownership

9 opportunities through the insurance under the National

10 House Act of alternative mortgage instruments, and

11 through partnerships with the Federal Home Loan Mort12 gage Corporation and the Federal National Mortgage As13 sociation, with the Federal Home Loan Banks and their

14 members, and with State and local housing finance agen15 cies, in connection with meeting their responsibilities to

16 achieve affordable housing goals. These demonstrations

17 may include testing the pricing of different types of in18 sured mortgage instruments, partnerships with the Cor19 poration, the Association, or the Federal Home Loan

20 Banks under which mortgage insurance provided by the

21 Secretary shall be used as a credit enhancement in connec22 tion with their mortgage lending and secondary market

23 activities, and partnership activities to achieve both home24 ownership and the stabilization or revitalization of neigh25 borhoods or to address special needs.
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1 (b) Each demonstration may be approved for a term

2 of up to 3 years. The term of an insured mortgage or ac3 tivity may extend beyond the term of the demonstration.

4 The total number of mortgages insured pursuant to dem5 onstrations under this section in any fiscal year may not

6 exceed 10 percent of the number of single family mort7 gages insured in the previous fiscal year. The total number

8 of mortgages insured pursuant to any one demonstration

9 in any fiscal year may not exceed 5 percent of the number

10 of single family mortgages insured in the previous fiscal

11 year.

12 (c) The Secretary may waive requirements of the Na13 tional Housing Act and any other applicable statutory and

14 regulatory requirements that the Secretary determines are

15 not consistent with the purposes of this section.

16 (d) The general insurance fund created by section

17 519 of the National Housing Act shall be available as a

18 revolving fund for carrying out mortgage insurance dem19 onstrations under this section involving alternative mort20 gage transactions. The Secretary shall determine the

21 terms and conditions of insurance, notwithstanding any

22 provision of the National Housing Act.

23 (e) In approving a demonstration under this section,

24 the Secretary may establish such requirements as the Sec25 retary considers to be appropriate to further its purposes.
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1 (f) Each demonstration under this section shall—

2 (1) be approved personally by the Secretary;

3 (2) be consistent with the overall purposes of

4 the program or programs under which the waiver is

5 granted;

6 (3) be evaluated; and

7 (4) be consistent with the Fair Housing Act,

8 title VI of the Civil Rights Act of 1964, section 504

9 of the Rehabilitation Act of 1973, and the Age Dis10 crimination Act of 1975.

11 (g) For each demonstration, there shall be prepared

12 an annual progress report. The Secretary shall submit a

13 report to Congress within 1 year after completion of each

14 demonstration, describing the results of the demonstration

15 and making any recommendations for legislation.

16 (h) There is authorized to be appropriated

17 $1,000,000 for the evaluation of demonstrations under

18 this section.

19 (i) The term ‘‘alternative mortgage instruments’’ in20 cludes mortgages within the definition of ‘‘alternative

21 mortgage transaction’’ in section 803(1) of the Alternative

22 Mortgages Transaction Party Act of 1982.

23 SINGLE FAMILY RISK-SHARING MORTGAGE INSURANCE

24 PROGRAM

25 SEC. 305. (a) The National Housing Act is amended

26 by adding the following new section at the end of title II:
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1 ‘‘SINGLE FAMILY RISK-SHARING WITH STATE AND LOCAL

2 AGENCIES

3 ‘‘SEC. 257. (a) AUTHORITY.—Notwithstanding any

4 other provision of this Act inconsistent with this section,

5 the Secretary may insure and make commitments to in6 sure under this section mortgages on single family prop7 erties under risk-sharing mortgage insurance programs es8 tablished with one or more State or agencies. Only mort9 gages executed in connection with the acquisition of a sin10 gle family property or for the refinancing of a mortgage

11 insured under this section shall be eligible. Under these

12 programs, the Secretary insures a portion of the mortgage

13 and the State or local agency insures the remainder.

14 ‘‘(b) PURPOSES.—The purposes of the program

15 under this section are (1) to increase the availability of

16 single family mortgage financing in areas where there is

17 need for mortgage insurance under this Act that cannot

18 be met due to particularly high average median house

19 prices in the area, and (2) to foster arrangements with

20 State and local agencies to share the risk of mortgage in21 surance.

22 ‘‘(c) APPLICATIONS.—(1) The Secretary may approve

23 an application submitted by a State or local agency to es24 tablish a risk-sharing program under this section, based
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1 on a determination that the State or local agency dem2 onstrates that—

3 ‘‘(A) it has the legal authority under State law

4 and, where applicable, local law to participate in the

5 risk-sharing mortgage insurance program;

6 ‘‘(B) it has carried out, or has the potential to

7 carry out, a financially sound, efficient, and effective

8 mortgage insurance program; and

9 ‘‘(C) it has the ongoing administrative and fi10 nancial capacity necessary to carry out a program

11 under this section.

12 ‘‘(2) For a violation of requirements and procedures

13 under the risk-sharing agreement between the State or

14 local agency and the Secretary or for other good cause,

15 the Secretary may cancel approval of a State or local agen16 cy under this section by giving notice to the State or local

17 agency. The cancellation shall be effective upon receipt of

18 the notice by the agency or at a later date specified by

19 the Secretary. A decision by the Secretary to cancel ap20 proval shall be final and conclusive and shall not be sub21 ject to judicial review.

22 ‘‘(d) DELEGATION OF AUTHORITY TO INSURE TO

23 STATE AND LOCAL AGENCIES.—Pursuant to a risk-shar24 ing agreement with a State or local agency, the Secretary

25 shall delegate the authority to insure and make commit-
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1 ments to insure the portion of mortgages to be insured

2 by the Secretary under this section to the State or local

3 agency. The risk-sharing agreement shall contain such

4 other matters as the Secretary and the State or local agen5 cy agree.

6 ‘‘(e) UNDERWRITING STANDARDS AND LOAN TERMS

7 AND CONDITIONS.—The State or local agency shall adopt

8 underwriting standards and loan terms and conditions for

9 purposes of underwriting loans to be insured under this

10 section without regard to requirements of this Act other

11 than this section, section 203(g), and section 203(r)(2),

12 subject to review and approval by the Secretary.

13 ‘‘(f) MORTGAGE INSURANCE PREMIUMS.—(1) The

14 State or local agency shall require the payment of mort15 gage insurance premiums by mortgagors.

16 ‘‘(2) The Secretary shall establish policies and proce17 dures for the sharing of premiums between the Secretary

18 and the State or local agency, based on the relative risk

19 to, and administrative costs of, the Secretary and the

20 State or local agency. The share paid to the Secretary

21 shall not be less than an amount necessary to cover the

22 risk to, and administrative costs of, the Secretary.

23 ‘‘(g) LIMITATIONS ON PRINCIPAL MORTGAGE

24 AMOUNT.—(1) The portion of the mortgage insured under
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1 this section by the Secretary may not exceed an amount

2 equal to the lesser of—

3 ‘‘(A) 80 percent of the appraised value of the

4 property, or

5 ‘‘(B) the maximum amount the Secretary may

6 insure under section 203(b) of this Act for the area

7 (but not including any amount for a mortgage insur8 ance premium).

9 ‘‘(2) The total principal amount of a mortgage in10 sured under this section by the Secretary and the State

11 or local agency—

12 ‘‘(A) shall exceed the maximum amount the

13 Secretary may insure under subparagraph (A) of the

14 first sentence of section 203(b)(2) of this Act for the

15 area, and

16 ‘‘(B) may not exceed the conforming loan limi17 tation determined under section 305(a)(2) of the

18 Federal Home Loan Mortgage Corporation Act for

19 a residence of the applicable size, as adjusted annu20 ally.

21 ‘‘(3) The principal obligation of a mortgage may not

22 exceed an amount determined in accordance with subpara23 graph (B) of the first sentence of section 203(b)(2) of this

24 Act plus the mortgage insurance premium.
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1 ‘‘(4) Notwithstanding paragraph 92)(A) or (3), in the

2 case of refinancing of an existing mortgage insured under

3 this section, the principal obligation of a refinancing mort4 gage may not exceed the outstanding principal balance of

5 the existing mortgage plus any mortgage insurance pre6 mium.

7 ‘‘(h) INSURANCE CLAIMS.—(1) In the case of a de8 fault and foreclosure of a mortgage insured under this sec9 tion, the mortgagee may file a claim with the State or

10 local agency for insurance benefits in accordance with re11 quirements established by the State or local agency and

12 approved by the Secretary. The agency shall pay the full

13 amount of the claim owed to the mortgagee. If the loss

14 on the insured mortgage exceeds the amount of insurance

15 by the agency, the Secretary shall reimburse the agency

16 for the difference.

17 ‘‘(2) The insurance of a mortgage under this section

18 by the Secretary shall be an obligation of the General In19 surance Fund created pursuant to section 519 of this Act.

20 ‘‘(i) INAPPLICABILITY OF THE ASSIGNMENT PRO21 GRAM.—Section 230 shall not apply to mortgages insured

22 under the program authorized by this section.

23 ‘‘(j) RESTRICTION ON GNMA SECURITIZATION.—

24 The Government National Mortgage Association shall not

25 securitize any loans insured under this section.
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1 ‘‘(k) DEFINITIONS.—As used in this section:

2 ‘‘(1) The term ‘local agency’ shall mean an

3 agency of a unit of general local government, as de4 fined by the Secretary, which has the authority to

5 insure mortgages and to participate with the Sec6 retary in the single family risk-sharing program

7 under this section, or an agency or instrumentality

8 of a local agency if the agency or instrumentality

9 has such authority.

10 ‘‘(2) The term ‘State agency’ shall mean an

11 agency of a State which has the authority to insure

12 mortgages and to participate with the Secretary in

13 the single family risk-sharing program under this

14 section, or an agency or instrumentality of a State

15 agency if the agency or instrumentality has such au16 thority.

17 ‘‘(3) The term ‘single family property’ means a

18 property upon which there is located a dwelling de19 signed principally for occupancy by one family, and

20 includes a condominium and a cooperative.

21 ‘‘(4) The term ‘State’ shall mean the several

22 States and Puerto Rico, the District of Columbia,

23 Guam, the Trust Territory of the Pacific Islands,

24 American Samoa, and the Virgin Islands.’’.
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1 (b) The Secretary of Housing and Urban Develop2 ment may implement the program authorized by sub3 section (a) by entering into risk-sharing agreements nego4 tiated with State agencies, notwithstanding any otherwise

5 applicable requirement for regulations or notice published

6 in the Federal Register and notwithstanding any otherwise

7 applicable regulations of the Secretary.

8 HOMEOWNERSHIP COUNSELING AND OUTREACH

9 SEC. 306. (a) Section 106(a) of the Housing and

10 Community Development Act of 1968 is amended—

11 (1) in paragraph (1), by—

12 (A) inserting ‘‘or consortia of organiza13 tions’’ after ‘‘organizations’’;

14 (B) striking the ‘‘and’’ at the end of clause

15 (iii);

16 (C) striking the period from the end of

17 clause (iv) and inserting in lieu thereof ‘‘; and’’;

18 and

19 (D) inserting at the end the following new

20 clause (v):

21 ‘‘(v) the provision of outreach activi22 ties designed to improve the access of low23 and moderate-income households to home24 ownership and sources of mortgage cred25 it.’’;
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1 (2) in the second sentence of paragraph (2),

2 by—

3 (A) striking ‘‘clause (iii)’’ and inserting in

4 lieu thereof ‘‘clauses (iii) and (v)’’; and

5 (B) by inserting after ‘‘organizations’’ the

6 following: ‘‘or consortia of organizations’’;

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

8 paragraph:

9 ‘‘(4) The Secretary of Housing and Urban De10 velopment may contract with national, State, or

11 community-based entities, and consortia of such en12 tities, to carry out activities under paragraph (1)(v).

13 Contractors shall be selected on a competitive basis,

14 in accordance with selection criteria determined by

15 the Secretary. The contractors shall carry out activi16 ties prescribed by the Secretary, including activities

17 such as—

18 ‘‘(A) leveraging Federal funds with other

19 sources of funding to support activities under

20 its counseling program, including leveraging

21 private, community-based resources for the pur22 pose of assisting prospective mortgagors achieve

23 homeownership;

24 ‘‘(B) conducting outreach and marketing

25 to prospective homebuyers, particularly those in
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1 targeted neighborhoods with a high proportion

2 of low- and moderate-income and minority

3 renter households;

4 ‘‘(C) coordinating a proactive pre-purchase

5 homeownership strategy that includes linking

6 other HUD-approved counseling providers and

7 community-based organizations, assisting pro8 spective homebuyers to repair credit, educating

9 potential homebuyers on the requirements of

10 homeownership, providing technical assistance,

11 assisting in the packaging of mortgage loan ap12 plications, matching a family’s resources with

13 appropriate government and private sector

14 homeownership assistance programs, and offer15 ing post-purchase and default-prevention coun16 seling to help homeowners retain their homes;

17 and

18 ‘‘(D) serving as an advocate for home19 buyers by working with the mortgage lending

20 industry with regard to overcoming mortgage

21 credit barriers to homeownership.’’.

22 (b) Section 106(c)(9) of such Act is amended by

23 striking ‘‘September 30, 1994’’ and inserting in lieu there24 of ‘‘September 30, 1996’’.
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1 (c) Section 106 of such Act is amended by adding

2 at the end the following new subsection:

3 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

4 are authorized to be appropriated for the purposes of this

5 section, without fiscal year limitation, such sums as may

6 be necessary, except that there are authorized to be appro7 priated $50,000,000 for each of fiscal years 1995 and

8 1996. Any amounts so appropriated shall remain available

9 until expended.’’.

10 (d) Section 106(a)(3) of such Act is hereby repealed.

11 Subtitle C—National Homeownership Fund

12 Demonstration

13 AMENDMENTS TO NAHA

14 SEC. 311. Subtitle A of title III of the Cranston-Gon15 zalez National Affordable Housing Act is amended to read

16 as follows:

17 ‘‘Subtitle A—National Homeownership Fund

18 Demonstration

19 ‘‘SEC. 301. SHORT TITLE.

20 ‘‘This subtitle may be cited as the ‘National Home21 ownership Fund Demonstration Act’.

22 ‘‘SEC. 302. PROGRAM AUTHORITY.

23 ‘‘(a) IN GENERAL.—The Secretary may provide as24 sistance, in accordance with the provisions of this subtitle,

25 for first-time homebuyers (including homebuyers buying
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1 shares in limited equity cooperatives) in the following

2 manners—

3 ‘‘(1) DOWNPAYMENT ASSISTANCE.—Assistance

4 payments through grantees to provide amounts for

5 downpayments (including closing costs and other

6 costs payable at the time of closing) on mortgages

7 for such homebuyers.

8 ‘‘(2) SECOND MORTGAGE ASSISTANCE.—Assist9 ance payments through grantees to provide loans

10 with payment of interest and principal, as deter11 mined by the grantee; and

12 ‘‘(3) CAPITALIZATION OF REVOLVING LOAN

13 FUNDS.—Grants to public organizations or agencies

14 to establish revolving loan funds to provide home15 ownership assistance to eligible first-time home16 buyers consistent with the requirements of this sub17 title. Such grants shall be matched by an equal

18 amount of local investment in such revolving loan

19 funds. Any proceeds or repayments from loans made

20 under this paragraph shall be returned to the revolv21 ing loan fund established under this paragraph to be

22 used for purposes related to this section.

23 ‘‘(b) ELIGIBILITY REQUIREMENTS.—Assistance pay24 ments under this subtitle may be made only to homebuyers

25 and for mortgages meeting the following requirements.—
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1 ‘‘(1) FIRST-TIME HOMEBUYER.—The home2 buyer is an individual who—

3 ‘‘(A)(i) (and whose spouse) has had no

4 ownership in a principal residence during the 3-

5 year period ending on the date of purchase of

6 the property with respect to which assistance

7 payments are made under this subtitle;

8 ‘‘(ii) is a displaced homemaker who, except

9 for owning a home with his or her spouse or re10 siding in a home owned by the spouse, meets

11 the requirements of clause (i); or

12 ‘‘(iii) is a single parent who, except for

13 owning a home with his or her spouse or resid14 ing in a home owned by the spouse while mar15 ried, meets the requirements of clause (i); and

16 ‘‘(B) meets the requirements of subpara17 graph (A)(i), (ii), or (iii), except for owning, as

18 a principal residence, a dwelling unit whose

19 structure is not permanently affixed to a per20 manent foundation in accordance with local or

21 other applicable regulations.

22 ‘‘(2) MAXIMUM INCOME OF HOMEBUYER.—The

23 aggregate annual income of the homebuyer and the

24 members of the family of the homebuyer residing

25 with the homebuyer, for the 12-month period preced-
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1 ing the date of the application of the homebuyer for

2 assistance under this subtitle, does not exceed 80

3 percent of the median income for a family of 4 per4 sons (adjusted by family size) in the applicable met5 ropolitan statistical area (or such other area that the

6 Secretary determines for areas outside of metropoli7 tan statistical areas). The Secretary shall provide for

8 certification of such income for purposes of initial

9 eligibility for assistance payments under this sub10 title.

11 ‘‘(3) PRINCIPAL RESIDENCE.—The property se12 curing the mortgage is a single-family residence or

13 unit in a cooperative or condominium and is the

14 principal residence of the homebuyer.

15 ‘‘(4) MAXIMUM MORTGAGE AMOUNT.—The

16 principal obligation of the first mortgage and any

17 second mortgage assistance provided under this sub18 title does not exceed the principal amount that could

19 be insured with respect to the property under section

20 203(b) of the National Housing Act.

21 ‘‘(c) TERMS OF ASSISTANCE.—

22 ‘‘(1) SECURITY.—Assistance payments under

23 this subtitle shall be secured by a lien on the prop24 erty involved. The lien shall be subordinate to all
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1 mortgages existing on the property on the date on

2 which the first assistance payment is made.

3 ‘‘(2) REPAYMENT IF PROPERTY CEASES TO BE

4 PRINCIPAL RESIDENCE.—If the property for which

5 assistance payments are made ceases to be the prin6 cipal residence of the first-time homebuyer (or the

7 family of the homebuyer), during a time period spec8 ified by the Secretary or the grantee, whichever is

9 longer, the Secretary may provide for the repayment

10 of all or a portion of the assistance payments.

11 ‘‘(d) ALLOCATION.—

12 ‘‘(1) IN GENERAL.—Each applicant shall sub13 mit an application in such form and in accordance

14 with such procedures as the Secretary shall estab15 lish.

16 ‘‘(2) MINIMUM REQUIREMENTS.—An applica17 tion under this section shall contain a plan that de18 scribes how the applicant will achieve the objectives

19 of this subtitle. The application shall contain at a

20 minimum—

21 ‘‘(A) a description of the geographic area

22 to be covered;

23 ‘‘(B) the characteristics of the households

24 to be served;
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1 ‘‘(C) a description and commitment of

2 other public and private resources available in

3 connection with assistance under this subtitle;

4 ‘‘(D) a description of any secondary mar5 ket involvement and commitment;

6 ‘‘(E) a description and commitment of any

7 non-traditional capital resources;

8 ‘‘(F) provision of housing counseling as9 sistance available to assist borrowers;

10 ‘‘(G) a description of any restrictions on

11 resale and profits;

12 ‘‘(H) a description of resources available to

13 undertake rehabilitation of properties when

14 needed;

15 ‘‘(I) the process for award and disburse16 ment of funds to borrowers; and

17 ‘‘(J) the past history of the applicant in

18 undertaking similar projects.

19 ‘‘(3) SELECTION.—Amounts available in any

20 fiscal year for assistance under this subtitle shall be

21 allocated to States (including State agencies) or non22 profit housing intermediaries for homebuyers

23 through a national competition in accordance with

24 criteria established by the Secretary. These criteria

25 shall include the extent to which the applicant has
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1 experience in providing homeownership opportunities

2 for low- and moderate-income households.

3 ‘‘SEC. 303. DEFINITIONS.

4 ‘‘For purposes of this subtitle:

5 ‘‘(1) DISPLACED HOMEMAKER.—The term ‘dis6 placed homemaker’ means an individual who—

7 ‘‘(A) is an adult;

8 ‘‘(B) has not worked full-time full-year in

9 the labor force for a number of years, but has

10 during such years, worked primarily without re11 muneration to care for the home and family;

12 and

13 ‘‘(C) is unemployed or underemployed and

14 is experiencing difficulty in obtaining or up15 grading employment.

16 ‘‘(2) SINGLE PARENT.—The term ‘single par17 ent’ means an individual who—

18 ‘‘(A) is unmarried or legally separated

19 from a spouse; and

20 ‘‘(B)(i) has 1 or more minor children for

21 whom the individual has custody or joint cus22 tody; or

23 ‘‘(ii) is pregnant.

24 ‘‘(3) SECRETARY.—The term ‘Secretary’ means

25 the Secretary of Housing and Urban Development.
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1 ‘‘(4) STATE.—The term ‘State’ means the

2 States of the United States, the District of Colum3 bia, the Commonwealth of Puerto Rico, the Com4 monwealth of the Northern Mariana Islands, Guam,

5 the Virgin Islands, American Samoa, the Trust Ter6 ritory of the Pacific Islands, and any other territory

7 or possession of the United States.

8 ‘‘SEC. 304. REPORT.

9 ‘‘The Secretary shall submit to the Congress, not

10 later than 6 months following the last obligation of assist11 ance by grantees under this subtitle, a report containing

12 a description of the activities carried out under this sub13 title and an analysis of the effectiveness of such assistance

14 in assisting first-time homebuyers.

15 ‘‘SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘There are authorized to be appropriated for assist17 ance payments under this subtitle $100,000,000 for fiscal

18 year 1995 and such sums as may be necessary for fiscal

19 year 1996. Any amount appropriated under this section

20 shall remain available until expended.’’.

21 Subtitle C—Authorizations Flexible Subsidy Program

22 SEC. 321. (a) AUTHORIZATION OF APPROPRIA23 TIONS.—Section 201(j)(5) of the Housing and Community

24 Development Amendments of 1978 (12 U.S.C. 1715z–

25 1a(j)(5)) is amended to read as follows:
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1 ‘‘(5) There are authorized to be appropriated

2 for assistance under the flexible subsidy fund not to

3 exceed $50,000,000 for fiscal year 1995 and not to

4 exceed $50,000,000 for fiscal year 1996.’’.

5 (b) USE OF SECTION 236 RENTAL ASSISTANCE

6 FUND AMOUNTS.—Section 236(f)(3) of the National

7 Housing Act (12 U.S.C. 1715z–1(f)(3)) is amended by

8 striking ‘‘September 30, 1994’’ and inserting ‘‘September

9 30, 1996’’.

10 SERVICE COORDINATORS IN MULTIFAMILY HOUSING

11 SEC. 322. There are authorized to be appropriated

12 for assistance for service coordinators under section 676

13 of the Housing and Community Development Act of 1992,

14 section 8(d)(2)(F)(i) of the United States Housing Act of

15 1937, section 202 of the Housing Act of 1959, and section

16 811 of the Cranston-Gonzalez National Affordable Hous17 ing Act, $16,300,000 for fiscal year 1995 and

18 $16,700,000 for fiscal year 1996.

19 LIMITATION ON GNMA GUARANTEES FOR MORTGAGE20 BACKED SECURITIES

21 SEC. 323. Section 306(g)(2) of the Federal National

22 Mortgage Association Charger Act (12 U.S.C. 1721(g)(2))

23 is amended to read as follows:

24 ‘‘(2) Notwithstanding any other provision of

25 law and subject only to the absence of qualified re26 quests for guarantees, to the authority provided in
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1 this subsection, and to the extent of or in such

2 amounts as any funding limitation approved in ap3 propriation Acts, the Association shall enter into

4 commitments to issue guarantees under this sub5 section in an aggregate amount of $130,000,000,000

6 during fiscal year 1995 and $130,000,000,000 dur7 ing fiscal year 1996. There is authorized to be ap8 propriated such sums as may be necessary to cover

9 the costs (as such term is defined in section 502 of

10 the Congressional Budget Act of 1974) of guaran11 tees issued under this Act by the Association.’’.

12 LIMITATION ON FHA INSURING AUTHORITY

13 SEC. 324. Section 531(b) of the National Housing

14 Act (12 U.S.C. 1735f–9(b)) is amended to read as follows:

15 ‘‘(b) Notwithstanding any other provision of law and

16 subject only to the absence of qualified requests for insur17 ance, to the authority provided in this Act, and to the limi18 tation in subsection (a), the Secretary shall enter into

19 commitments to insure mortgages under this Act with an

20 aggregate principal amount of $104,666,794,000 during

21 fiscal year 1995 and $91,037,845,000 during fiscal year

22 1996.’’.
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1 TITLE IV—ECONOMIC OPPORTUNITY;

2 EXPANSION OF AFFORDABLE HOUSING

3 Subtitle A—Economic Opportunity

4 ECONOMIC OPPORTUNITIES FOR RESIDENTS IN HUD5 ASSISTED PROGRAMS

6 SEC. 401. Section 3 of the Housing and Urban Devel7 opment Act of 1968 is amended—

8 (1) in subsection (c)(1)(B)(i), by inserting ‘‘,

9 and to noncustodial parents of children living in

10 such developments and subject to court-ordered or

11 administratively-ordered support agreements’’ before

12 the period;

13 (2) by adding at the end of subsection (c) the

14 following new paragraph (3):

15 ‘‘(3) ESTABLISHMENT OF ECONOMIC OPPOR16 TUNITY CENTERS.—

17 ‘‘(A) IN GENERAL.—The Secretary shall

18 establish Economic Opportunity Centers, to

19 provide services which will link low-income resi20 dents with jobs generated by housing and com21 munity development assistance.

22 ‘‘(B) ELIGIBLE GRANTEES.—The Sec23 retary may make grants to State or local gov24 ernments or their agencies, public housing

25 agencies, including Indian housing authorities,
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1 public or private non-profit organizations or in2 stitutions (including community action agen3 cies), or other public or private entities—

4 ‘‘(i) which are carrying out training,

5 employment development, education, or

6 other economic development activities in

7 communities which receive housing and

8 community development assistance; or

9 ‘‘(ii) which provide housing, neighbor10 hood revitalization, community organizing,

11 income support or crime prevention pro12 grams to low- and very low-income persons

13 in communities which receive housing and

14 community development assistance; or

15 ‘‘(iii) which are administering housing

16 or community development programs which

17 generate a significant number of employ18 ment opportunities.

19 ‘‘For fiscal year 1995, the Secretary may

20 make grants under this paragraph only to pub21 lic housing agencies, including Indian housing

22 authorities.

23 ‘‘(C) SELECTION CRITERIA.—The Sec24 retary shall select grantees on a competitive
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1 basis, taking into account the demonstrated

2 ability of the applicants to—

3 ‘‘(i) assess training and support serv4 ice needs;

5 ‘‘(ii) develop or provide employment

6 development skills to low-income persons;

7 ‘‘(iii) coordinate and utilize existing

8 public and private training, employment,

9 and business assistance funds or services;

10 ‘‘(iv) establish or maintain working

11 relationships with unions or other con12 struction trade associations, and public

13 and private employers; and

14 ‘‘(v) perform such other functions as

15 the Secretary may approve.

16 ‘‘(D) ELIGIBLE ACTIVITIES.—Amounts re17 ceived for the operation of Economic Oppor18 tunity Centers may be used for financial and

19 other assistance to individual residents to facili20 tate their participation in both existing and

21 newly created job training programs and em22 ployment opportunities. The agency may engage

23 in activities such as developing facilities for

24 training and support services; assessing training

25 and service needs of public housing residents;
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1 funding essential training and support services

2 that are not otherwise funded; establishing a

3 job bank of positions in connection with pro4 grams subject to this section; assisting contrac5 tors, contractor associations, and joint labor6 management committees to develop and fund

7 training and apprenticeship initiatives and pro8 grams; training and funding resident councils,

9 resident management corporations, neighbor10 hood groups, and community-based organiza11 tions to provide information about the require12 ments of this section and economic opportuni13 ties; funding the start-up costs of businesses;

14 providing links with related government and

15 private programs; and such other activities as

16 the Secretary may approve.

17 ‘‘(E) AUTHORIZATION OF APPROPRIA18 TIONS.—There are authorized to be appro19 priated for grants to carry out this paragraph,

20 $17,500,000 for fiscal year 1995 and such

21 sums as may be necessary for fiscal year

22 1996.’’; and

23 (3) by adding at the end the following new sub24 sections:
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1 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated—

3 ‘‘(1) $4,000,000 in fiscal year 1995 and such

4 sums as may be necessary in fiscal year 1996 for the

5 Secretary to establish and sustain employment train6 ing and business initiatives under this section with

7 other Federal agencies, through interagency agree8 ments providing for the transfer of amounts appro9 priated under this paragraph to other Federal agen10 cies; and

11 ‘‘(2) $3,500,000 in fiscal year 1995 and such

12 sums as may be necessary in fiscal year 1996 for the

13 Secretary to carry out a management and technical

14 assistance program for the development of materials,

15 systems, services, and information designed to en16 hance—

17 ‘‘(A) the capacity of the Secretary to man18 age activities under this section; and

19 ‘‘(B) the capacity of public housing agen20 cies, contractors, and other entities to comply

21 with the requirements of this section.

22 ‘‘(i) OTHER RESOURCES.—The Secretary may permit

23 expenditure of funds appropriated for programs subject to

24 this section for job-related activities necessary to imple-
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1 ment this section, including but not limited to training,

2 supervision of trainees, and job recruitment.’’.

3 RESIDENT MANAGEMENT/TENANT OPPORTUNITY

4 PROGRAM

5 SEC. 402. Section 20 of the United States Housing

6 Act of 1937 is amended—

7 (1) by striking the section heading and insert8 ing in lieu thereof: ‘‘TENANT OPPORTUNITY PRO9 GRAM’’;

10 (2) in the first two sentences of subsection (b),

11 by striking ‘‘resident management program’’ the two

12 places it appears and inserting ‘‘tenant opportunity

13 program’’;

14 (3) in subsection (f)—

15 (A) by striking the subsection heading and

16 inserting in lieu thereof: ‘‘TENANT OPPOR17 TUNITY ASSISTANCE’’;

18 (B) in paragraph (1), by adding the follow19 ing new sentences at the end: ‘‘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 economic uplift, such as job

24 training, economic development, security, and

25 other self-sufficiency activities beyond those re26 lated to the management of public housing.
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1 Resident councils or resident management cor2 porations may jointly apply for financial assist3 ance with public housing agencies.’’;

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

5 ‘‘$100,000’’ and inserting ‘‘$250,000’’;

6 (D) by inserting at the end the following

7 new paragraph:

8 ‘‘(5) 10 PERCENT SET-ASIDE.—The Secretary

9 may use up to 10 percent of the amounts appro10 priated under paragraph (3) to enter into contracts

11 with—

12 ‘‘(A) various entities for monitoring, eval13 uation, technical assistance, and information

14 dissemination in connection with activities

15 under this subsection; and

16 ‘‘(B) public housing agencies, resident or17 ganizations, and public or private entities for

18 innovative public/private initiatives that support

19 the economic development and increased self20 sufficiency of public housing residents. Eligible

21 activities related to economic development and

22 self-sufficiency may include such programs as

23 counseling, treatment for substance abuse, child

24 care, remedial education, job training, and de25 velopment of resident businesses.’’; and
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1 (E) Paragraph (3) is amended to read as

2 follows:

3 ‘‘(3) FUNDING.—Of any amounts made avail4 able for financial assistance under section 14, the

5 Secretary may use to carry out this subsection

6 $85,000,000 for fiscal year 1995 and such sums as

7 may be necessary for fiscal year 1996.’’.

8 Subtitle B—Section 8 Initiatives

9 CHOICE IN RESIDENCY

10 SEC. 411. (a) Section 8(o) of the United States Hous11 ing Act of 1937, as amended by section 412 of this Act,

12 is further amended by adding the following new paragraph

13 at the end:

14 ‘‘(16)(A) The Secretary may make grants to

15 public housing agencies and nonprofit organizations

16 for the purpose of providing counseling to applicants

17 for and recipients of tenant-based assistance. The

18 counseling shall be designed to enable families to se19 lect units in areas without high concentrations of

20 persons living in poverty, as determined by the Sec21 retary. Eligible activities may include activities such

22 as—

23 ‘‘(i) advising families on strategies for ob24 taining appropriate housing;
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1 ‘‘(ii) providing transportation assistance

2 and other services to give families access to

3 areas without high concentrations of persons

4 living in poverty;

5 ‘‘(iii) continuing advice and counseling to

6 assist families after moving to areas without

7 high concentrations of persons living in poverty;

8 and

9 ‘‘(iv) undertaking aggressive outreach to

10 potential owners to expand the availability of

11 housing in areas without high concentrations of

12 persons living in poverty.

13 ‘‘(B) The Secretary may invite public housing

14 agencies to apply for grants under this paragraph.

15 In addition, the Secretary may select, on a competi16 tive basis, public housing agencies and nonprofit or17 ganizations for grants under this paragraph. In

18 making funding decisions, the Secretary may take

19 into account evidence in the application of commit20 ments of non-Federal assistance to be used in sup21 port of the proposed counseling program.

22 ‘‘(C) The Secretary may take failure by a public

23 housing agency to apply for a grant under this para24 graph and the effectiveness of an agency’s program
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1 into account in determining amount of future fund2 ing under this subsection.

3 ‘‘(D) The budget authority available under sec4 tion 5(c) of this Act for tenant-based assistance

5 under this section is authorized to be increased by

6 $149,100,000, on or after October 1, 1995, and by

7 $152,900,000, on or after October 1, 1986, for

8 grants under this paragraph.’’.

9 (b) The amendment made by subsection (a) shall

10 apply to assistance under contract on the date of enact11 ment of this Act as well as to assistance placed under con12 tract after the date of enactment.

13 MERGER OF THE CERTIFICATE AND VOUCHER PROGRAMS

14 SEC. 412. (a) MERGER OF CERTIFICATE AND

15 VOUCHER PROGRAMS.—Section 8(o) of the United States

16 Housing Act of 1937 is amended to read as follows:

17 ‘‘(o) CERTIFICATE PROGRAM.—(1) The Secretary

18 may provide assistance for tenant-based assistance using

19 a payment standard in accordance with this subsection.

20 The payment standard shall be used to determine the

21 monthly assistance which may be paid for any family, as

22 provided in paragraph (2) of this subsection, and shall not

23 exceed the fair market rental established under subsection

24 (c). However, the payment standard for a designated part

25 of the market area may exceed the fair market rental by

26 not more than 20 percent, where the Secretary determines
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1 that higher market rents in that part of the market area

2 justify a higher payment standard. The Secretary may re3 quire a public housing agency to submit proposed payment

4 standards to the Secretary for approval.

5 ‘‘(2)(A) For a family receiving tenant-based assist6 ance, where the rent (including the amount allowed for

7 tenant-paid utilities) does not exceed the payment stand8 ard, the monthly assistance payment shall be the amount

9 by which the rent exceeds the highest of the following

10 amounts, rounded to the nearest dollar:

11 ‘‘(i) 30 percent of the family’s monthly adjusted

12 income;

13 ‘‘(ii) 10 percent of the family’s monthly income;

14 or

15 ‘‘(iii) if the family is receiving payments for

16 welfare assistance from a public agency and a part

17 of such payments, adjusted in accordance with the

18 family’s actual housing costs, is specifically des19 ignated by such agency to meet the family’s housing

20 costs, the portion of such payments which is so des21 ignated.

22 ‘‘(B) For a family receiving tenant-based assistance,

23 where the rent (including the amount allowed for tenant24 paid utilities) exceeds the payment standard, the monthly

25 assistance payment shall be the amount by which the ap-
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1 plicable payment standard exceeds the highest of the fol2 lowing amounts, rounded to the nearest dollar:

3 ‘‘(i) 30 percent of the family’s monthly adjusted

4 income;

5 ‘‘(ii) 10 percent of the family’s monthly income;

6 or

7 ‘‘(iii) if the family is receiving payments for wel8 fare assistance from a public agency and a part of

9 such payments, adjusted in accordance with the fam10 ily’s actual housing costs, is specifically designated

11 by such agency to meet the family’s housing costs,

12 the portion of such payments which is so designated.

13 ‘‘(C) For a family receiving project-based assistance,

14 the rent the family is required to pay shall be determined

15 in accordance with section 3(a)(1) and the amount of the

16 housing assistance payment shall be determined in accord17 ance with subsection (c)(3).

18 ‘‘(3) At the time a family initially receives tenant19 based assistance with respect to any unit, the total amount

20 a family may pay towards rent may not exceed 40 percent

21 of the family’s monthly adjusted income.

22 ‘‘(4) At the time a family initially receives assistance

23 under the certificate program, a family shall qualify as—

24 ‘‘(A) a very low-income family,
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1 ‘‘(B) a family previously assisted under this

2 Act, or

3 ‘‘(C) a low-income family that meets eligibility

4 criteria specified by the Secretary.

5 ‘‘(5) Reviews of family income shall be made at least

6 annually.

7 ‘‘(6)(A) In selecting families to be assisted, pref8 erence shall be given to families which, at the time they

9 are seeking assistance—

10 ‘‘(i) occupy substandard housing (including

11 families that are homeless or living in a shelter for

12 homeless families),

13 ‘‘(ii) are involuntarily displaced, or

14 ‘‘(iii) are paying more than 50 percent of family

15 income for rent.

16 ‘‘(B) A public housing agency may provide for cir17 cumstances in which families who do not qualify for any

18 preference established in subparagraph (A) are provided

19 assistance under this subsection before families who do

20 qualify for such preference. However, not more than 10

21 percent in the case of tenant-based assistance and not

22 more than 30 percent in the case of project-based assist23 ance (or such higher percentage, in either case, deter24 mined by the Secretary to be necessary or appropriate)

25 of the families who initially receive assistance in any 1-
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1 year period may be families who do not qualify for such

2 preference. The public housing agency shall, in implement3 ing the preceding sentence, establish a system of pref4 erences in writing and after public hearing to respond to

5 local housing needs and priorities which may include—

6 ‘‘(i) assisting very low-income families who ei7 ther reside in transitional housing assisted under

8 title IV of the Stewart B. McKinney Homeless As9 sistance Act, or participate in a program designed to

10 provide public assistance recipients with greater ac11 cess to employment and educational opportunities;

12 ‘‘(ii) assisting families identified by local public

13 agencies involved in providing for the welfare of chil14 dren as having a lack of adequate housing that is a

15 primary factor in the imminent placement of a child

16 in foster care, or in preventing the discharge of a

17 child from foster care and reunification with his or

18 her family;

19 ‘‘(iii) assisting youth, upon discharge from fos20 ter care, in cases in which return to the family or

21 extended family or adoption is not available;

22 ‘‘(iv) assisting veterans who will use the assist23 ance for a dwelling unit designed for the handi24 capped, and, upon discharge or eligibility for dis25 charge from a hospital or nursing home, have a
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1 physical disability which, because of the configura2 tion of their homes, prevents them from access to or

3 use of their homes, and

4 ‘‘(v) achieving other objectives of national hous5 ing policy as affirmed by Congress.

6 ‘‘(C) Any individual or family evicted from housing

7 assisted under the Act by reason of drug-related criminal

8 activity (as defined in subsection (f)(5)) shall not be eligi9 ble for a preference under any provision of this subpara10 graph for 3 years unless the evicted tenant successfully

11 completes a rehabilitation program approved by the Sec12 retary (which shall include waiver for any member of a

13 family of an individual prohibited from tenancy under this

14 clause who the agency determines clearly did not partici15 pate in and had no knowledge of such criminal activity

16 or when circumstances leading to eviction no longer exist).

17 ‘‘(7) The Secretary shall require, for any unit, that—

18 ‘‘(A) the public housing agency inspect the unit

19 before any assistance payment may be made to de20 termine that the unit meets housing quality stand21 ards for decent, safe, and sanitary housing estab22 lished by the Secretary for the purpose of this sec23 tion; and

24 ‘‘(B) the public housing agency make annual or

25 more frequent inspections during the contract term.
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1 No assistance payment may be made for a dwelling unit

2 which fails to meet such quality standards, unless any

3 such failure is promptly corrected by the owner and the

4 correction is verified by the public housing agency.

5 ‘‘(8) If a family vacates a dwelling unit, no assistance

6 payment may be made for the unit after the month during

7 which the unit was vacated.

8 ‘‘(9) A public housing agency may adjust its payment

9 standard under this subsection where necessary to assure

10 continued affordability for families receiving tenant-based

11 assistance.

12 ‘‘(10) The Secretary may set aside up to 5 percent

13 of the budget authority available under this subsection as

14 an adjustment pool. The Secretary shall use amounts in

15 the adjustment pool for adjustments pursuant to para16 graph (9) to ensure continued affordability where the Sec17 retary determines additional assistance for this purpose is

18 necessary, based on documentation submitted by a public

19 housing agency.

20 ‘‘(11)(A) The rent for units assisted under this sub21 section shall be reasonable in comparison with rents

22 charged for comparable units in the private, unassisted

23 market.

24 ‘‘(B) A public housing agency shall, at the request

25 of a family receiving tenant-based assistance under this
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1 subsection, assist such family in negotiating a reasonable

2 rent with an owner. A public housing agency shall review

3 the rent for a unit under consideration by the family (and

4 all rent increases for units under lease by the family) to

5 determine whether the rent (or rent increase) requested

6 by an owner is reasonable. If a public housing agency de7 termines that the rent (or rent increase) for a unit is not

8 reasonable, the agency shall disapprove a lease for such

9 unit.

10 ‘‘(C) If units assisted under this subsection are ex11 empt from local rent control while they are so assisted,

12 the rent for such units shall be reasonable in comparison

13 with other units in the market area that are exempt from

14 local rent control.

15 ‘‘(12)(A) A public housing agency may make assist16 ance payments on behalf of a family which utilizes a man17 ufactured home as its principal place of residence. Such

18 payments may be made for the rental of the real property

19 on which there is located a manufactured home which is

20 owned by any such family.

21 ‘‘(B)(i) For assistance pursuant to this paragraph,

22 the rent for the space on which a manufactured home is

23 located and with respect to which assistance payments are

24 to be made includes maintenance and management

25 charges and tenant-paid utilities.
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1 ‘‘(ii) The public housing agency shall establish a pay2 ment standard for the purpose of determining the monthly

3 assistance which may be paid for any family under this

4 paragraph. This payment standard may not exceed an

5 amount approved or established by the Secretary.

6 ‘‘(iii) The monthly assistance payment for assistance

7 under this paragraph shall be determined in accordance

8 with paragraph (2).

9 ‘‘(13)(A) Where the Secretary enters into an annual

10 contributions contract with a public housing agency pursu11 ant to which the agency will enter into a contract for as12 sistance payments with respect to an existing structure

13 under this subsection, the contract for assistance pay14 ments may not be attached to the structure unless the

15 owner agrees to rehabilitate or newly construct the struc16 ture other than with assistance under this Act and other17 wise complies with the requirements of this section. The

18 public housing agency may approve such attachment for

19 up to 15 percent of the funding available for tenant-based

20 assistance administered by the agency under this section.

21 ‘‘(B) Notwithstanding any other provision of this sec22 tion, a public housing agency and an applicable State

23 agency may, on a priority basis, attach to structures not

24 more than an additional 15 percent of the assistance only

25 with respect to projects assisted under a State program
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1 that permits the owner of the projects to prepay a State2 assisted or State-subsidized mortgage on the structure.

3 However, the attachment of assistance under this sub4 paragraph shall be for the purpose of—

5 ‘‘(i) providing incentives to owners to preserve

6 such projects for occupancy by low- and moderate7 income families (for the period that assistance under

8 this sentence is available), and

9 ‘‘(ii) to assist low-income families to afford any

10 increases in rent that may be required to induce the

11 owner to maintain occupancy in the project by low12 and moderate-income families.

13 ‘‘(C) Any assistance provided to low-income families

14 under subparagraph (B) shall not be considered for pur15 poses of the limitation under paragraph (6) regarding the

16 percentage of families that may receive assistance under

17 this section who do not qualify for preferences under that

18 paragraph.

19 ‘‘(D) In the case of a contract for assistance pay20 ments that is attached to a structure under this para21 graph, a public housing agency shall enter into a contract

22 with an owner, contingent upon the future availability of

23 appropriations for the purpose of renewing expiring con24 tracts for assistance payments as provided in appropria25 tions Acts, to extend the term of the underlying contract
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1 for assistance payments for such period or periods as the

2 Secretary determines to be appropriate to achieve long3 term affordability of the housing. The contract shall obli4 gate the owner to have such extensions of the underlying

5 contract for assistance payments accepted by the owner

6 and the owner’s successors interest. To the extent assist7 ance is used as provided in the second sentence of sub8 paragraph (B), the contract for assistance may, at the op9 tion of the public housing agency, have an initial term not

10 exceeding 15 years.

11 ‘‘(E) The Secretary shall annually survey public

12 housing agencies to determine which public housing agen13 cies have, in providing assistance in such year, reached

14 the 15 percent limitations contained in subparagraphs (A)

15 and (B), and shall report to the Congress on the results

16 of the survey.

17 ‘‘(F) For project-based assistance under this para18 graph, assistance contracts shall establish rents, and pro19 vide for rent adjustments, in accordance with subsection

20 (c).

21 ‘‘(14) A family may lease a unit, other than a public

22 housing unit, from the public housing agency with assist23 ance under this subsection. The Secretary may establish

24 appropriate program requirements for units owned by the

25 public housing agency, including requirements for HUD
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1 approval of initial rents, rent adjustments, and adminis2 trative fees, taking into account that the agency admin3 istering the assistance is also the owner of the assisted

4 unit.

5 ‘‘(15) Subsection (c) shall not apply to tenant-based

6 assistance under this subsection.’’.

7 (b) PORTABILITY.—Section 8(r) of such Act is

8 amended—

9 (1) in each of paragraphs (1) and (3), by strik10 ing ‘‘subsection (b) or’’;

11 (2) in paragraph (3), by inserting at the end

12 the following new sentence: ‘‘The Secretary may re13 serve amounts available for assistance under sub14 section (o) to compensate public housing agencies

15 which issue certificates to families that move into

16 the jurisdiction of the agency under portability pro17 cedures.’’; and

18 (3) by adding the following new paragraph at

19 the end:

20 ‘‘(5) A family may not receive a certificate from

21 an agency and move to another jurisdiction under

22 the tenant-based assistance program, if the family

23 has moved out of its assisted unit in violation of its

24 lease.’’.
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1 (c) REPEAL OF REQUIREMENT THAT OWNERS OF MUL2 TIFAMILY HOUSING PROJECTS LEASE TO CERTIFICATE

3 AND VOUCHER HOLDERS.—Section 8(t) of such Act is

4 hereby repealed.

5 (d) HOMEOWNERSHIP OPTION.—Section 8(y) of such

6 Act is amended—

7 (1) in paragraph (1)(A), by inserting before the

8 semicolon ‘‘or owns or is acquiring shares in a coop9 erative’’;

10 (2) in paragraph (1)(B)(i), by inserting before

11 the semicolon ‘‘and demonstrates to the public hous12 ing agency that it has sufficient resources for home13 ownership’’; and

14 (3) by amending paragraph (2)(A) to read as

15 follows:

16 ‘‘(A) DETERMINATION OF AMOUNT OF AS17 SISTANCE.—

18 ‘‘(i) Where the monthly homeowner19 ship expenses, as determined in accordance

20 with requirements established by the Sec21 retary, do not exceed the payment stand22 ard, the monthly assistance payment shall

23 be the amount by which the homeowner24 ship expenses exceed the highest of the fol-
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1 lowing amounts, rounded to the nearest

2 dollar:

3 ‘‘(I) 30 percent of the family’s

4 monthly adjusted income;

5 ‘‘(II) 10 percent of the family’s

6 monthly income; or

7 ‘‘(III) if the family is receiving

8 payments for welfare assistance from

9 a public agency and a part of such

10 payments, adjusted in accordance with

11 the family’s actual housing costs, is

12 specifically designated by such agency

13 to meet the family’s housing costs, the

14 portion of such payments which is so

15 designated.

16 ‘‘(ii) Where the monthly homeowner17 ship expenses, as determined in accordance

18 with requirements established by the Sec19 retary, exceed the payment standard, the

20 monthly assistance payment shall be the

21 amount by which the applicable payment

22 standard exceeds the highest of the follow23 ing amounts, rounded to the nearest dollar:

24 ‘‘(I) 30 percent of the family’s

25 monthly adjusted income;
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1 ‘‘(II) 10 percent of the family’s

2 monthly income; or

3 ‘‘(III) if the family is receiving

4 payments for welfare assistance from

5 a public agency and a part of such

6 payments, adjusted in accordance with

7 the family’s actual housing costs, is

8 specifically designated by such agency

9 to meet the family’s housing costs, the

10 portion of such payments which is so

11 designated.’’.

12 (e) TECHNICAL AND CONFORMING AMENDMENTS TO

13 THE 1937 ACT; DELETION OF OBSOLETE PROVISIONS.—

14 The United States Housing Act of 1937 is amended as

15 provided by this subsection.

16 (1) The second and third sentences of section

17 8(a) are hereby repealed.

18 (2) Section 8(b) is amended by—

19 (A) striking ‘‘RENTAL CERTIFICATES AND

20 OTHER EXISTING HOUSING PROGRAMS.—’’ and

21 inserting ‘‘CERTIFICATES AND OTHER EXIST22 ING HOUSING PROGRAMS.—(1)’’;

23 (B) striking the second sentence.
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1 (3) Section 8(c)(3) is amended by striking the

2 subparagraph designation ‘‘(A)’’ and striking all of

3 subparagraph (B).

4 (4) The first sentence of section 8(c)(4) is

5 amended by striking ‘‘or by a family that qualifies

6 to receive’’ and all that follows through ‘‘1990’’.

7 (5) Sections 8(c) (5) and (7) are hereby re8 pealed.

9 (6) Section 8(c)(8) is amended by inserting

10 after ‘‘section’’ the following: ‘‘(other than a con11 tract under section 9(o))’’.

12 (7) Section 8(c)(9) is amended by striking

13 ‘‘(but not less than 90 days in the case of housing

14 certificates or vouchers under subsection (b) or (o))’’

15 and inserting ‘‘, other than a contract under sub16 section (o)’’.

17 (8) Section 8(d)(1)(A) is amended—

18 (A) by inserting after the subparagraph

19 designation ‘‘(A)’’ the following: ‘‘except for as20 sistance under subsection (o),’’;

21 (B) in clause (i) by striking ‘‘(I)’’;

22 (C) in clause (i), by striking ‘‘and (II) 90

23 percent of such families in the case of assist24 ance not attached to a structure’’; and
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1 (D) in clause (i), by striking ‘‘except’’ and

2 all that follows through the semicolon at the

3 end.

4 (9) Section 8(d)(2) is amended by striking the

5 third sentence of subparagraph (A) and all that fol6 lows through the end of paragraph (2).

7 (10) Section 8(f) is amended by—

8 (A) in paragraph (6), striking ‘‘(d)(2)’’

9 and inserting ‘‘(o)(13)’’; and

10 (B) in paragraph (7), striking ‘‘(b) or’’

11 and inserting before the period the following:

12 ‘‘and that provides for the eligible family to se13 lect suitable housing and to move to other suit14 able housing’’.

15 (11) Section 8(j) is hereby repealed.

16 (12) Section 8(n) is hereby repealed.

17 (13) The first sentence of section 8(q)(1) and

18 sections 8(q)(2)(A)(i) and 8(q)(2)(B) are each

19 amended by striking ‘‘subsections (b) and (o)’’ and

20 inserting ‘‘this section’’.

21 (14) Section 18(b)(3) is amended—

22 (A) in subparagraph (A)(v), by striking

23 ‘‘(excluding vouchers under section 8(o))’’ each

24 place it appears;
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1 (B) in subparagraph (B), by striking

2 ‘‘8(d)(2)(A)’’ and inserting ‘‘8(o)(13)’’;

3 (C) in subparagraph (B)(ii), by striking

4 ‘‘(excluding vouchers under section 8(o))’’;

5 (D) in subparagraph (C)(i), by striking

6 ‘‘and vouchers’’.

7 (15) Section 21(b)(3) is amended—

8 (A) in the first sentence, by striking ‘‘cer9 tificate under section 8(b)(1) or a housing

10 voucher under section 8(o)’’ and inserting ‘‘ten11 ant-based assistance under section 8’’; and

12 (B) by striking the second sentence.

13 (16) Section 23(b)(3)(A) is amended by strik14 ing ‘‘Certificate and voucher assistance under sec15 tion 8 (b) and (o)’’ and inserting ‘‘Tenant-based as16 sistance under section 8’’.

17 (f) OTHER TECHNICAL AND CONFORMING AMEND18 MENTS.—

19 (1) Section 931 of the Cranston-Gonzalez Na20 tional Affordable Housing Act is amended by strik21 ing ‘‘assistance under the certificate and voucher

22 programs under sections 8 (b) and (o)’’ and insert23 ing ‘‘tenant-based assistance under section 8’’.

24 (2) Section 861(b)(1)(D) of the Cranston-Gon25 zalez National Affordable Housing Act is amended
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1 by striking ‘‘certificates or vouchers’’ and inserting

2 ‘‘assistance’’.

3 (3) Section 183(c)(2) of the Housing and Com4 munity Development Act of 1987 is amended by

5 striking ‘‘section 8(o)’’ and inserting ‘‘section 8’’.

6 (4) Section 223(a) of the Housing and Commu7 nity Development Act of 1987 is amended by strik8 ing ‘‘sections 8(b) and 8(o)’’ and inserting ‘‘section

9 8’’.

10 (5) The second sentence of section 533(a) of

11 the Housing Act of 1949 is amended by striking

12 ‘‘assistance payments as provided by section 8(o)’’

13 and inserting ‘‘tenant-based assistance as provided

14 under section 8’’.

15 (g) IMPLEMENTATION.—The Secretary shall imple16 ment the amendments made by this section by regulation

17 issued after notice and opportunity for public comment.

18 The amendments made by this section shall take effect

19 upon a date specified by the Secretary in the Federal Reg20 ister. The Secretary may provide for the conversion of as21 sistance under the certificate and voucher programs, as

22 they existed before the effective date of the amendments

23 made by this section, to the certificate program estab24 lished under this section. However, the Secretary may con25 tinue to apply the provisions of the United States Housing
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1 Act of 1937 and other statutes amended by this section,

2 as they existed immediately before such effective date, to

3 assistance obligated by the Secretary before such effective

4 date for the certificate or voucher program, where nec5 essary for simplification of program administration, avoid6 ance of hardship, or other good cause.

7 SECTION 8 CERTIFICATE AND VOUCHER FEES

8 SEC. 413. (a) Section 8(q)(1) of the United States

9 Housing Act of 1937 is amended to read as follows:

10 ‘‘(1)(A) The Secretary shall establish fees for

11 the costs of administering the tenant-based assist12 ance programs under this Act.

13 ‘‘(B)(i) For the initial year the Secretary estab14 lishes fees under this section, as amended by the

15 Housing Choice and Community Investment Act of

16 1994, the fee for each month for which a dwelling

17 unit is covered by an assistance contract shall be

18 7.65 percent of the base amount in the case of an

19 agency that, on an annual basis, is administering a

20 program of more than 1,000 units, and 7 percent of

21 the base amount for each additional unit above

22 1,000. The base amount shall be the higher of (I)

23 the fair market rental for fiscal year 1993 for a 2-

24 bedroom existing rental dwelling unit in the market

25 area of the agency, and (II) such fair market rental

26 for fiscal year 1994, but not more than 103.5 per-
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1 cent of the amount determined under clause (I); ex2 cept that the Secretary may require that the base

3 amount be not less than a minimum amount and not

4 more than a maximum amount.

5 ‘‘(ii) For subsequent fiscal years, the Secretary

6 shall publish in the Federal Register, for each geo7 graphic area, the amount of the fee that would apply

8 for agencies administering the program, based on

9 changes in wage data or other objectively measur10 able data that reflect the costs of administering the

11 program, as determined by the Secretary.

12 ‘‘(C) The Secretary may increase the fee if nec13 essary to reflect the higher costs of administering

14 small programs, the family self-sufficiency program

15 under section 23, and programs operating over large

16 geographic areas.’’.

17 (b) Section (8)(q)(2)(A)(i) is amended to read as fol18 lows—

19 ‘‘(i) the costs of preliminary expenses, in the

20 amount of $500, for a public housing agency, but

21 only in connection with its initial increment of as22 sistance received in the first year it administers a

23 tenant-based assistance program under this Act;’’

24 (c) The amendments made by this section shall take

25 effect on a date specified by the Secretary in regulations
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1 implementing the amendments. Until that date, the fees

2 applicable in fiscal year 1994 shall continue in effect.

3 Subtitle C—Miscellaneous

4 SECTION 811 RENTAL ASSISTANCE FOR PERSONS WITH

5 DISABILITIES

6 SEC. 421. (a) RENTAL ASSISTANCE FOR EXISTING

7 BUILDINGS.—Section 811 of the Cranston-Gonzalez Na8 tional Affordable Housing Act is amended—

9 (1) in subsection (d)(2), by inserting after the

10 dash the following new sentence:

11 ‘‘The Secretary may enter into contracts with

12 private, nonprofit organizations to provide

13 project rental assistance for supportive housing

14 for persons with disabilities, whether or not

15 that housing is developed with capital advances

16 under this section.’’;

17 (2) in subsection (e)(1), by inserting imme18 diately after ‘‘assisted’’ the following: ‘‘with capital

19 advances’’;

20 (3) by amending the first two sentences of sub21 section (e)(2) to read as follows: ‘‘The initial term

22 of a contract entered into under subsection (d)(2)

23 shall be 240 months for housing developed with a

24 capital advance, and shall be not more than 60

25 months for housing not developed with a capital ad-
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1 vance. The Secretary shall, to the extent approved in

2 appropriation Acts, extend any expiring contracts for

3 a term of not less than 60 months;

4 (4) in subsection (g)(1), by inserting after ‘‘de5 velop’’ the following ‘‘(if applicable)’’;

6 (5) in each of subsections (g) (3) and (5), by

7 inserting immediately before ‘‘proposed’’ the follow8 ing: ‘‘design or’’;

9 (6) in subsection (j)(3)—

10 (A) by striking ‘‘An’’ and inserting in lieu

11 thereof the following: ‘‘(A) Where the housing

12 is to be assisted with capital advances under

13 this section, an’’; and

14 (B) by adding the following new subpara15 graph at the end thereof:

16 ‘‘(B) Where the housing is to be assisted

17 only with project rental assistance, the appli18 cant shall have ownership or control of a suit19 able site at the time of application. The Sec20 retary may approve a change in site at any time

21 from the date the application is submitted to

22 the expiration date of the rental assistance con23 tract.’’;

24 (7) in subsection (j)(4), by striking ‘‘The’’ and

25 inserting in lieu thereof the following: ‘‘Where the
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1 housing is assisted with capital advances under this

2 section, the’’;

3 (8) in the second sentence of subsection (k)(1),

4 by striking ‘‘the development of’’;

5 (9) in subsection (k)(5), by inserting imme6 diately after ‘‘disabilities’’ the following: ‘‘, or that

7 receives rental assistance under this section to oper8 ate a project for supportive housing for persons with

9 disabilities’’; and

10 (10) in subsection (m)(3), by striking out ‘‘(1)’’

11 and inserting in lieu thereof ‘‘(2)’’.

12 (b) REPEAL OF TENANT-BASED ASSISTANCE.—Sec13 tion 811 of such Act is amended—

14 (1) by amending subsection (b) to read as fol15 lows:

16 ‘‘(b) GENERAL AUTHORITY.—The Secretary is au17 thorized to provide assistance to private, non-profit orga18 nizations to expand the supply of supportive housing for

19 persons with disabilities. Such assistance shall be provided

20 as—

21 ‘‘(1) capital advances in accordance with sub22 section (d)(1), together with contracts for project

23 rental assistance in accordance with subsection

24 (d)(2), or
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1 ‘‘(2) contracts for project rental assistance in

2 accordance with subsection (d)(2).

3 Such assistance may be used to finance the acquisition,

4 acquisition and moderate rehabilitation, construction, re5 construction, or moderate or substantial rehabilitation of

6 housing, including the acquisition from the Resolution

7 Trust Corporation, to be used as supportive housing for

8 persons with disabilities and may include real property ac9 quisition, site improvement, conversion, demolition, reloca10 tion, and other expenses that the Secretary determines are

11 necessary to expand the supply of supportive housing for

12 persons with disabilities.’’;

13 (2) in each of subsections (d) (1) and (3),

14 (e)(1), and (g), and in the first and second sentences

15 of subsection (f), by striking ‘‘subsection (b)(2)’’ and

16 inserting the following: ‘‘this section’’; and

17 (3) by striking subsection (d)(4).

18 (c) TECHNICAL CHANGES.—(1) Section 811(k)(6)(A)

19 of such Act is amended to read as follows:

20 ‘‘(A) that has received tax-exempt status under

21 section 501(c) (3) or (4) of the Internal Revenue

22 Code of 1986;

23 (2) Section 8(i) of the United States Housing Act of

24 1937 is hereby repealed.
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1 FUNDING FOR SUPPORTIVE HOUSING FOR THE ELDERLY

2 AND FOR PERSONS WITH DISABILITIES

3 SEC. 422. Section 601 of the Housing and Commu4 nity Development Act of 1992 (Public Law 102–550; 106

5 Stat. 3802) is amended by striking subsection (a) and in6 serting the following new subsection:

7 ‘‘(a) AGGREGATE FUNDING.—There are authorized

8 to be appropriated for the purpose of providing assistance

9 in accordance with section 202 of the Housing Act of 1959

10 and section 811 of the Cranston-Gonzalez National Af11 fordable Housing Act $537,000,000 for fiscal year 1995

12 and $387,000,000 for fiscal year 1996. Of the foregoing

13 amounts, for fiscal year 1995, $387,000,000 shall be to

14 carry out such section 811, and $150,000,000 shall be to

15 carry out such section 202. The total amount for fiscal

16 year 1996 shall be to carry out such section 811.’’.

17 YOUTHBUILD

18 SEC. 423. (a) Section 454(b) of subtitle D of title

19 IV of the Cranston-Gonzalez National Affordable Housing

20 Act is amended—

21 (1) in paragraph (2), by striking ‘‘Acquisition’’

22 and all that follows through ‘‘facilities’’ and insert23 ing in lieu thereof the following: ‘‘Acquisition, reha24 bilitation, or acquisition and rehabilitation of vacant

25 housing and related facilities, or construction of new

26 housing and related facilities,’’;
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1 (2) by striking paragraph (6); and

2 (3) by designating paragraphs (7) and (8) as

3 paragraphs (6) and (7), respectively.

4 (b) Section 454(g) of such Act is hereby repealed.

5 (c) Section 455(a) of such Act is amended—

6 (1) in the first sentence, by inserting after ‘‘re7 ceiving assistance under this subtitle’’ the following:

8 ‘‘for costs such as construction, rehabilitation, and

9 acquisition’’; and

10 (2) in paragraph (1)(A), by deleting ‘‘less than

11 60’’ and inserting in lieu thereof ‘‘that do not exceed

12 50’’.

13 (d) Section 458(d) of such Act is amended by striking

14 ‘‘(b) and (c)’’ and inserting in lieu thereof ‘‘(a), (b), and

15 (c)’’.

16 HOPE AUTHORIZATION OF APPROPRIATIONS

17 SEC. 424. Sections 402(a) and (b) of the Cranston18 Gonzalez National Affordable Housing Act (42 U.S.C.

19 12870) are amended to read as follows:

20 ‘‘(a) HOMEOWNERSHIP PROGRAMS.—There are au21 thorized to be appropriated for activities authorized under

22 title III of the United States Housing Act of 1937, and

23 subtitles B and C of title IV of the Cranston-Gonzalez Na24 tional Affordable Housing Act, including amounts for

25 technical assistance, $100,000,000 for fiscal year 1995

26 and $100,000,000 for fiscal year 1996.
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1 ‘‘(b) YOUTHBUILD PROGRAM.—There are authorized

2 to be appropriated for activities under subtitle D of title

3 IV of the Cranston-Gonzalez National Affordable Housing

4 Act $50,000,000 for fiscal year 1995 and $50,000,000 for

5 fiscal year 1996. Any amounts appropriated pursuant to

6 this subsection shall remain available until expended.’’.

7 AUTHORIZATION OF APPROPRIATIONS FOR HOUSING

8 OPPORTUNITIES FOR PERSONS WITH AIDS

9 SEC. 425. Section 863 of the Cranston-Gonzalez Na10 tional Affordable Housing Act (42 U.S.C. 12912), is

11 amended to read as follows:

12 ‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

13 ‘‘There are authorized to be appropriated to carry out

14 this subtitle $156,000,000 for fiscal year 1995 and

15 $156,000,000 for fiscal year 1996.’’.

16 TITLE V—PRESERVATION AND PRODUCTION

17 MISCELLANEOUS AMENDMENTS TO LIHPRHA

18 SEC. 501. (a) ESTABLISH A REALISTIC FEDERAL

19 COST LIMIT.—(1) Section 215(a) of the Low-Income

20 Housing Preservation and Resident Homeownership Act

21 of 1990 is amended—

22 (A) in paragraph (1), by striking ‘‘120’’ and in23 serting ‘‘100’’;

24 (B) by striking paragraph (2); and
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1 (C) by redesignating paragraph (3) as para2 graph (2) and amending such paragraph by striking

3 ‘‘and the amount determined under paragraph (2)’’.

4 (2) Section 215(b)(2)(C) is amended to read as fol5 lows:

6 ‘‘(C) file a second notice of intent under section

7 216(d) to terminate the low-income affordability re8 strictions through payment of the mortgage or vol9 untary termination of the insurance contract, subject

10 to compliance with the provisions of section 223.’’.

11 (3)(A) Section 221 is hereby repealed.

12 (B)(i) Section 213(b)(2), section 214(b)(2), the sec13 ond sentence of section 217(a)(1), sections 224(a)(1) (B)

14 and (C), and section 224(a)(2) of such Act are each

15 amended by striking ‘‘or 221’’.

16 (ii) The third sentence of section 214(b) of such Act

17 is amended by striking ‘‘219, 220, or 221’’ and inserting

18 ‘‘219 or 220’’.

19 (iii) The third sentence of section 216(d)(1) of such

20 Act is amended by striking ‘‘sections 221 and 223’’ and

21 inserting ‘‘section 223’’.

22 (iv) The second sentence of section 217(a)(1) of such

23 Act is amended by striking ‘‘or upon making of any bona

24 fide offer under section 221’’.
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1 (v) The last sentence of section 224(a) of such Act

2 is amended by striking ‘‘sections 220 and 221’’ and insert3 ing ‘‘section 220’’.

4 (vi) Section 229 (8)(B) of such Act is amended by

5 striking ‘‘and 221’’.

6 (b) CAP APPRAISALS UNDER LIHPRHA AT FAIR

7 MARKET VALUE FOR RESIDENTIAL RENTAL USE.—Sec8 tion 213(b)(2) of such Act is amended by inserting before

9 the period the following: ‘‘as residential rental housing’’.

10 (c) REPEAL OF HOMEOWNERSHIP ASSISTANCE.—(1)

11 Section 220(d)(1) of such Act is amended to read as fol12 lows:

13 ‘‘(1) APPROVAL.—The Secretary may not ap14 prove a plan for any qualified purchaser unless the

15 Secretary finds that the criteria for approval under

16 section 222 have been satisfied.’’.

17 (2) The matter preceding subparagraph (A) in sec18 tion 220(d)(2) of such Act is amended by striking ‘‘(in19 cluding all priority purchasers other than resident councils

20 acquiring under the homeownership program authorized

21 by section 226)’’.

22 (3) Section 220(d)(2)(G) of such Act is amended to

23 read as follows:

24 ‘‘(G) in the case of a resident council orga25 nized to acquire the housing as a limited equity
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1 cooperative, cover the costs of training for the

2 resident council and of ownership counseling

3 and training.’’.

4 (4) Section 222(a) of such Act is amended by striking

5 out ‘‘(other than a resident council)’’.

6 (5) Section 222(a)(2)(A) of such Act is amended by

7 inserting ‘‘rental or limited equity cooperative’’ imme8 diately after ‘‘the housing will be retained as’’.

9 (6) Section 226 of such Act is hereby repealed.

10 (7) Section 231(a) of such Act is amended by—

11 (A) striking out ‘‘(A)’’ and all that follows

12 through ‘‘(B)’’; and

13 (B) inserting after ‘‘any nonprofit organiza14 tion’’ the following: ‘‘(including a resident council)’’.

15 (d) NATIONAL HOUSING ACT CONFORMING AMEND16 MENT.—Section 241(f)(3)(A) of the National Housing Act

17 is amended by striking out ‘‘or 221’’.

18 (e) TRANSITION PROVISION.—The amendments

19 made by this section shall only apply to eligible owners

20 that file a plan of action under the Low-Income Housing

21 Preservation and Resident Homeownership Act of 1990

22 on or after the date of enactment of this Act.
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1 LOW-INCOME HOUSING PRESERVATION

2 AUTHORIZATION OF APPROPRIATIONS

3 SEC. 502. Section 234(a) of the Housing and Com4 munity Development Act of 1987 (12 U.S.C. 4124) is

5 amended to read as follows:

6 ‘‘(a) IN GENERAL.—There are authorized to be ap7 propriated for assistance and incentives authorized under

8 this subtitle $226,000,000 for fiscal year 1996.’’.

9 FHA FUND SUPPORT OF SECTION 8 ASSISTANCE FOR

10 PROPERTY DISPOSITION

11 SEC. 503. (a) Section 203 of the Housing and Com12 munity Development Amendments of 1978 is amended by

13 adding the following new subsection at the end thereof:

14 ‘‘(m) SPENDING AUTHORITY FOR SECTION 8 ASSIST15 ANCE.—In addition to amounts otherwise made available

16 for carrying out subsections (e) and (f) of this section,

17 the Secretary shall use not to exceed a total of

18 $3,945,000,000 for fiscal years 1995 through 1999 for as19 sistance under section 8 of the United States Housing Act

20 of 1937, as authorized by subsections (e) and (f). These

21 funds are hereby made available from amounts in the Gen22 eral Insurance Fund or the Special Risk Insurance Fund,

23 as appropriate.’’.

24 (b) Section 207(l) of the National Housing Act is

25 amended by adding in the first sentence after ‘‘or sell for

26 cash or credit or lease in his discretion,’’ the following:
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1 ‘‘with or without provision for rental assistance that may

2 be either project-based or tenant-based,’’.

3 HOME PROGRAM LOAN GUARANTEES

4 SEC. 504. HOME PROGRAM LOAN GUARANTEES.—

5 Title II of the Cranston-Gonzalez National Affordable

6 Housing Act (the Home Investment Partnership Act) is

7 amended by adding the following new section at the end

8 of subtitle A:

9 ‘‘SEC. 227. LOAN GUARANTEES.

10 ‘‘(a) The Secretary is authorized, upon such terms

11 and conditions as the Secretary may prescribe, to guaran12 tee and make commitments to guarantee, only to such ex13 tent or in such amounts as provided in appropriation Acts,

14 the notes or other obligations issued by eligible participat15 ing jurisdictions or by public agencies designated by and

16 acting on behalf of eligible participating jurisdictions for

17 purposes of financing (including credit enhancements and

18 debt service reserves) the acquisition, new construction,

19 reconstruction, or moderate or substantial rehabilitation

20 of affordable housing, including real property acquisition,

21 site improvement, conversion, demolition, and other ex22 penses, including financing costs, relocation expenses of

23 any displaced persons, families, businesses, or organiza24 tions. All housing funded under this section shall meet the

25 requirements of this title.
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1 ‘‘(b) Notes or other obligations guaranteed under this

2 section shall be in such form and denominations, have

3 such maturities, and be subject to such conditions as may

4 be prescribed by regulations issued by the Secretary. The

5 Secretary may not deny a guarantee under this section

6 on the basis of the proposed repayment period for the note

7 or other obligation, unless the period is more than 20

8 years or the Secretary determines that the period other9 wise causes the guarantee to constitute an unacceptable

10 financial risk. To the extent provided in appropriation

11 Acts, the Secretary may enter into commitments to guar12 antee notes or other obligations under this section with

13 an aggregate principal amount of $1,000,000,000 for fis14 cal year 1995 and $1,000,000,000 for fiscal year 1996.

15 ‘‘(c) No guarantee or commitment to guarantee shall

16 be made with respect to any note or other obligation if

17 the total outstanding notes or obligations guaranteed

18 under this section on behalf of a participating jurisdiction

19 (excluding any amount defeased under a contract entered

20 into under subsection (e)(1)) would thereby exceed an

21 amount equal to 5 times the amount of the participating

22 jurisdiction’s latest HOME allocation.

23 ‘‘(d) Notwithstanding any other provision of this title,

24 funds allocated to the participating jurisdiction under this

25 title (including program income derived therefrom) are au-
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1 thorized for use by the participating jurisdiction or by the

2 Secretary, in the payment of principal and interest due

3 on the notes or other obligations guaranteed pursuant to

4 this section and the payment of such servicing, underwrit5 ing, or other issuance or collection charges as may be spec6 ified in regulations issued by the Secretary.

7 ‘‘(e) To assure the full repayment of notes or other

8 obligations guaranteed hereunder as well as the issuance

9 or collection charges specified by the Secretary under

10 paragraph (d), and as a prior condition for receiving such

11 guarantees, the Secretary shall require the participating

12 jurisdiction (and its designated public agency issuer, if

13 any) to—

14 ‘‘(1) enter into a contract, in a form acceptable

15 to the Secretary, for repayment of such notes or

16 other obligations and the other specified charges;

17 ‘‘(2) pledge as security for such repayment any

18 allocation for which the participating jurisdiction

19 may become eligible under this title; and

20 ‘‘(3) furnish, at the discretion of the Secretary,

21 such other security as may be deemed appropriate

22 by the Secretary in making such guarantees, which

23 may include increments in local tax receipts gen24 erated by the housing assisted under this section or
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1 disposition proceeds from the sale of land or hous2 ing.

3 ‘‘(f) The Secretary is authorized, notwithstanding

4 any other provision of this title or any other Federal, State

5 or local law, to apply allocations pledged pursuant to para6 graph (e) of this section to any repayments due the United

7 States as a result of such guarantees.

8 ‘‘(g) The full faith and credit of the United States

9 is pledged to the payment of all guarantees made under

10 this section. Any such guarantee made by the Secretary

11 shall be conclusive evidence of the eligibility of the notes

12 or other obligations for such guarantee with respect to

13 principal and interest, and the validity of any such guar14 antee so made shall be incontestable in the hands of a

15 holder of the guaranteed obligations.

16 ‘‘(h) Obligations guaranteed under this section shall

17 be subject to Federal taxation as provided in subsection

18 (j).

19 ‘‘(i) With respect to any obligation guaranteed pursu20 ant to this section, the interest paid on such obligation

21 shall be included in gross income for the purpose of chap22 ter 1 of the Internal Revenue Code of 1954.

23 ‘‘(j) The Secretary shall monitor the use of guaran24 tees under this section by eligible participating jurisdic25 tions. If the Secretary finds that 50 percent of the aggre-
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1 gate guarantee authority has been committed, the Sec2 retary may—

3 ‘‘(1) impose limitations on the amount of guar4 antees any one participating jurisdiction may receive

5 in any fiscal year of $35,000,000; or

6 ‘‘(2) request the enactment of legislation in7 creasing the aggregate limitation on guarantees

8 under this section.

9 ‘‘(k) No fee or other charge may be imposed by the

10 Secretary or any other Federal agency on or with respect

11 to a guarantee made by the Secretary under this section.

12 ‘‘(l)(1) The Secretary is authorized, upon such terms

13 and conditions as the Secretary deems appropriate, to

14 guarantee the timely payment of the principal of and in15 terest on such trust certificates or other obligations as

16 shall—

17 ‘‘(A) be offered by the Secretary or by any

18 other offeror approved for purposes of this sub19 section by the Secretary, and

20 ‘‘(B) be based on and backed by a trust or pool

21 composed of notes or other obligations guaranteed or

22 eligible for guarantee by the Secretary under this

23 section.

24 ‘‘(2) To the same extent as provided in paragraph

25 (g), the full faith and credit of the United States is
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1 pledged to the payment of all amounts which may be re2 quired to be paid under any guarantee by the Secretary

3 under this subsection.

4 ‘‘(3) In the event the Secretary pays a claim under

5 a guarantee issued under this section, the Secretary shall

6 be subrogated fully to the rights satisfied by such pay7 ment.

8 ‘‘(4) No State or local law, and no Federal law, shall

9 preclude or limit the exercise by the Secretary of—

10 ‘‘(A) the power to contract with respect to pub11 lic offerings and other sales of notes, trust certifi12 cates and other obligations guaranteed under this

13 section upon such terms and conditions as the Sec14 retary deems appropriate,

15 ‘‘(B) the right to enforce by any means deemed

16 appropriate by the Secretary any such contract, and

17 ‘‘(C) The Secretary’s ownership rights, as appli18 cable, in notes, certificates or other obligations guar19 anteed under this section, or constituting the trust

20 or pool against which trust certificates or other obli21 gations guaranteed under this section are offered.

22 ‘‘(m) There are authorized to be appropriated such

23 sums as may be necessary for each of fiscal years 1995

24 and 1996 for the cost to the Government, as defined in
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1 section 502 of the Congressional Budget Act, of guaran2 teed loans under this section.’’.

3 HOME AUTHORIZATION OF APPROPRIATIONS

4 SEC. 505. Section 205 of the Cranston-Gonzalez Na5 tional Affordable Housing Act (42 U.S.C. 1274) is amend6 ed to read as follows:

7 ‘‘SEC. 205. AUTHORIZATION.

8 ‘‘There are authorized to be appropriated to carry out

9 this title $1,000,000,000 for fiscal year 1995, and

10 $1,000,000,000 for fiscal year 1996.’’.

11 EXTENSION OF THE SECTION 221(g)(4) AUCTION

12 PROVISIONS

13 SEC. 506. The first sentence of section

14 221(g)(4)(C)(viii) of the National Housing Act is amended

15 by striking ‘‘September 30, 1995’’ and inserting ‘‘Decem16 ber 31, 2005’’.

17 EXTENSION OF THE MULTIFAMILY MORTGAGE CREDIT

18 DEMONSTRATIONS

19 SEC. 507. Section 542 of the Housing and Commu20 nity Development Act of 1992 is amended—

21 (1) in subsection (b)(5), by striking ‘‘1993 and

22 1994’’ and inserting ‘‘1995 and 1996’’; and

23 (2) in subsection (c)(4), by striking ‘‘1993,

24 1994, and 1995’’ and inserting ‘‘1995, 1996, and

25 1997’’.
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1 TITLE VI—EXPANSION OF FAIR HOUSING

2 METROPOLITAN AREAWIDE STRATEGY DEMONSTRATION

3 SEC. 601. (a) The Secretary of Housing and Urban

4 Development shall carry out, through consortia of units

5 of general local government, a demonstration that makes

6 assisted housing available in three metropolitan areas on

7 a metropolitan, areawide basis. The demonstration shall

8 be designed to determine how best to (1) affirmatively fur9 ther fair housing and address the problem or racial seg10 regation in metropolitan areas; (2) achieve the goal of

11 overcoming racial spatial separation and segregation, in12 cluding testing the effect of filling vacancies in assisted

13 housing by use of a consolidated waiting list; (3) enlist

14 cooperation by units of general local government, public

15 housing agencies, and private owners of assisted housing

16 in achieving such goals; (4) make public housing a path

17 to social and economic mobility; (5) eliminate housing dis18 crimination; and (6) accomplish related objectives, as de19 termined by the Secretary.

20 (b) The Secretary shall select the consortia on a com21 petitive basis and make a grant to each consortia selected

22 to carry out the demonstration. An application shall dem23 onstrate that a sufficient number of units of general local

24 government, public housing agencies, and private owners

25 of assisted housing are committed to participate in the
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1 demonstration to make the demonstration feasible, includ2 ing commitments to comply with alternative program re3 quirements specified by the Secretary. The demonstration

4 shall have a three-year term with respect to each site.

5 (c) The Secretary may waive, or specify alternative

6 requirements for, any provision of any statute or regula7 tion that the Secretary administers upon finding that the

8 waiver or alternative requirement (1) is necessary to facili9 tate the demonstration, and (2) would not be inconsistent

10 with the overall purpose of the statute or regulation af11 fected. In no event may the Secretary waive, or specify

12 alternative requirements for, statutory requirements relat13 ed to nondiscrimination, fair housing, labor standards, or

14 the environment, except that the Secretary may waive af15 firmative marketing requirements for participants in the

16 demonstration.

17 (d) There are authorized to be appropriated for the

18 costs related to regional planning, housing counseling, de19 velopment of a model consolidated waiting list, and admin20 istration under the demonstration established by this sec21 tion, $15,000,000 for each of fiscal years 1995, 1996, and

22 1997. Of the amounts appropriated for annual contribu23 tions for assisted housing under the United States Hous24 ing Act of 1937, the Secretary shall earmark $9,000,000

25 for each of fiscal years 1995, 1996, and 1997 for mod-
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1 ernization of public housing under section 14 of that Act

2 by public housing agencies participating in the demonstra3 tion that are located in the central city of the metropolitan

4 area. Of the amounts appropriated for annual contribu5 tions for assisted housing under the United States Hous6 ing Act of 1937 and earmarked for tenant-based assist7 ance under section 8 of that Act, the Secretary may set

8 aside up to $100,000,000 for use by public housing agen9 cies in support of the demonstration.

10 EXPAND USE OF AMOUNTS IN SECTION 213(d)(4)

11 HEADQUARTERS RESERVE IN CONNECTION WITH

12 SETTLEMENT OF CIVIL RIGHTS LITIGATION

13 SEC. 602. (a) Section 213(d)(4)(A) of the Housing

14 and Community Development Act of 1974 is amended

15 by—

16 (1) striking ‘‘and’’ at the end of clause (iii);

17 (2) redesignating clause (iv) as clause (v); and

18 (3) inserting the following new clause after

19 clause (iii):

20 ‘‘(iv) fair housing activities and cash

21 payments, in connection with the settle22 ment of civil rights litigation (excluding

23 litigation brought by an employee or

24 former employee of the Secretary); and’’.
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1 (b) Section 5 of the United States Housing Act of

2 1937 is amended by adding at the end the following new

3 subsection:

4 ‘‘(m) The Secretary may use up to five percent of

5 the aggregate amount appropriated under this Act for

6 public housing development and section 8 assistance for

7 the activities eligible for funding from amounts retained

8 by the Secretary in accordance with section 213(d) of the

9 Housing and Community Development Act of 1974.’’.

10 MAKE CDBG EXPENDITURES ON FAIR HOUSING

11 ACTIVITIES ELIGIBLE ACTIVITIES IN THEIR OWN RIGHT

12 SEC. 603. (a) Section 105(a) of the Housing and

13 Community Development Act of 1974 is amended—

14 (1) in paragraph (24), by striking ‘‘and’’ at the

15 end;

16 (2) in paragraph (25), by striking the period at

17 the end and inserting ‘‘; and’’; and

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

19 paragraph:

20 ‘‘(26) activities that affirmatively further fair

21 housing.’’.

22 (b) Section 105(c) of such Act is amended by adding

23 the following new paragraph at the end:

24 ‘‘(5) Any activity carried out under subsection

25 (a)(26) shall be presumed to benefit persons of low

26 and moderate income.’’.
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1 FAIR HOUSING INITIATIVES PROGRAM AUTHORIZATION OF

2 APPROPRIATIONS

3 SEC. 604. Section 561(g) of the Housing and Com4 munity Development Act of 1987 (42 U.S.C. 3616 note)

5 is amended to read as follows:

6 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

7 are authorized to be appropriated to remain available until

8 expended, to carry out the provisions of this section

9 $26,000,000 for fiscal year 1995 and $26,000,000 for fis10 cal year 1996, of which—

11 ‘‘(1) not less than $9,000,000 for fiscal year

12 1995 and not less than $9,000,000 for fiscal year

13 1996 shall be for private enforcement initiatives au14 thorized under subsection (b), divided equally be15 tween activities specified under subsection (b)(1)

16 and those specified under subsection (b)(2);

17 ‘‘(2) not less than $7,000,000 for fiscal year

18 1995 and not less than $7,000,000 for fiscal year

19 1996 shall be for fair housing enforcement organiza20 tions authorized under subsection (c);

21 ‘‘(3) not less than $7,000,000 for fiscal year

22 1995 and not less than $7,000,000 for fiscal year

23 1996 shall be for education and outreach programs

24 authorized under subsection (d); and
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1 ‘‘(4) not less than $3,000,000 for fiscal year

2 1995 and not less than $3,000,000 for fiscal year

3 1996 shall be for administrative enforcement.’’.

4 CIVIL MONEY PENALTIES FOR VIOLATIONS OF THE HOME

5 MORTGAGE DISCLOSURE ACT BY NONSUPERVISED

6 MORTGAGEES

7 SEC. 605. Section 305 of the Home Mortgage Disclo8 sure Act of 1975 is amended as follows:

9 (1) Subsection (b)(4) is repealed.

10 (2) Subsection (c) is redesignated as section

11 305(d).

12 (3) A new subsection (c) is added, to read:

13 ‘‘(c) POWERS OF THE SECRETARY OF HOUSING AND

14 URBAN DEVELOPMENT.—

15 ‘‘(1) IN GENERAL.—The Secretary of Housing

16 and Urban Development (‘‘the Secretary’’) shall en17 force compliance with the requirements imposed

18 under this title with regard to lending institutions

19 not named in subsection (b).

20 ‘‘(2) CIVIL MONEY PENALTIES.—Pursuant to

21 paragraph (1) of this subsection, the Secretary may

22 impose a civil money penalty for failure to comply

23 with the requirements of this title.

24 ‘‘(3) AMOUNT OF PENALTY.—The amount of

25 the penalty, as determined by the Secretary, may

26 not exceed $5,000 for each violation, except that the
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1 maximum penalty for all violations by any particular

2 lending institution during any 1-year period shall

3 not exceed $1,000,000 .

4 ‘‘(4) VIOLATIONS FOR WHICH A PENALTY MAY

5 BE IMPOSED.—A civil money penalty may be im6 posed for the late submission of a report, failure to

7 submit a report, submission of an illegible report,

8 submission of an erroneous report, and failure to

9 submit a corrected report for a report that was illeg10 ible or erroneous.

11 ‘‘(5) AGENCY PROCEDURES.—

12 ‘‘(A) ESTABLISHMENT.—The Secretary

13 shall establish standards and procedures gov14 erning the imposition of civil money penalties

15 under this section. These standards and proce16 dures shall provide for the Secretary to make

17 the determination to impose the penalty or to

18 use an administrative entity (such as the Mort19 gagee Review Board, established pursuant to

20 section 202(c) of the National Housing Act) to

21 make the determination; shall provide for the

22 imposition of a penalty only after the lending

23 institution has been given an opportunity for a

24 hearing on the record; and may provide for re25 view by the Secretary of a determination or
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1 order, or interlocutory ruling, arising from a

2 hearing.

3 ‘‘(B) FINAL ORDERS.—If no hearing is re4 quested within 15 days of receipt of the notice

5 of opportunity for hearing, the imposition of the

6 penalty shall constitute a final and

7 unappealable determination. If the Secretary re8 views the determination or order, the Secretary

9 may affirm, modify, or reverse that determina10 tion or order. If the Secretary does not review

11 the determination or order within 90 days of

12 the issuance of the determination or order, the

13 determination or order shall be final.

14 ‘‘(C) FACTORS IN DETERMINING AMOUNT

15 OF PENALTY.—In determining the amount of a

16 penalty under this subsection, consideration

17 shall be given to such factors as the gravity of

18 the offense, any history of prior offenses, ability

19 to pay the penalty, deterrence of future viola20 tions, and such other factors as the Secretary

21 may determine to be appropriate.

22 ‘‘(D) REVIEWABILITY OF IMPOSITION OF

23 PENALTY.—The Secretary’s determination or

24 order imposing a penalty under this subsection
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1 shall not be subject to review, except as pro2 vided in this subsection.

3 ‘‘(6) JUDICIAL REVIEW OF AGENCY DETER4 MINATION.—

5 ‘‘(A) IN GENERAL.—After exhausting all

6 administrative remedies established by the Sec7 retary under this subsection, a lending institu8 tion against whom the Secretary has imposed a

9 civil money penalty under this subsection may

10 obtain a review of the penalty as may be ad11 dressed in the notice of determination to impose

12 a penalty in the appropriate court of appeals of

13 the United States, by filing in such court, with14 in 20 days after the entry of such order or de15 termination, a written petition praying that the

16 Secretary’s determination or order be modified

17 or set aside in whole or in part.

18 ‘‘(B) OBJECTIONS NOT RAISED IN HEAR19 ING.—The court shall not consider any objec20 tion that was not raised in the hearing con21 ducted pursuant to this subsection unless a

22 demonstration is made of extraordinary cir23 cumstances causing the failure to raise the ob24 jection. If any party demonstrates to the satis25 faction of the court that additional evidence not
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1 presented at the hearing is material and that

2 there were reasonable grounds for the failure to

3 present such evidence at the hearing, the court

4 shall remand the matter to the Secretary for

5 consideration of the additional evidence.

6 ‘‘(C) SCOPE OF REVIEW.—The decisions,

7 findings, and determinations of the Secretary

8 shall be reviewed pursuant to section 706 of

9 title 5, United States Code.

10 ‘‘(D) ORDER TO PAY PENALTY.—Notwith11 standing any other provided of law, in any such

12 review, the court shall have the power to order

13 payment of the penalty imposed by the Sec14 retary.

15 ‘‘(7) ACTION TO COLLECT PENALTY.—If a lend16 ing institution fails to comply with the Secretary’s

17 determination or order imposing a civil money pen18 alty under this subsection, after the determination

19 or order is no longer subject to review as provided

20 by this subsection, the Secretary may bring an ac21 tion in an appropriate United States district court to

22 obtain a monetary judgment against the lending in23 stitution. In such an action, the validity and appro24 priateness of the Secretary’s determination or order

25 imposing the penalty shall not be subject to review.
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1 The monetary judgment may, in the court’s discre2 tion, include the attorneys fees and other expenses

3 incurred by the United States in connection with the

4 action.

5 ‘‘(8) SETTLEMENT BY SECRETARY.—The Sec6 retary may compromise, modify, or remit any civil

7 money penalty which may be imposed under this

8 subsection.

9 ‘‘(9) REGULATIONS.—The Secretary shall issue

10 such regulations as the Secretary deems appropriate

11 to implement this subsection.

12 ‘‘(10) DEPOSIT OF PENALTIES IN U.S. TREAS13 URY.—All civil money penalties collected under this

14 subsection shall be deposited in the Miscellaneous

15 Receipts Account of the Treasury.’’.

16 TITLE VII—COMMUNITY DEVELOPMENT AND

17 EMPOWERMENT

18 Subtitle A—Neighborhood Leveraged Investments for

19 Tomorrow (LIFT) Program Authorization

20 SEC. 701. (a) PROGRAM AUTHORIZATION.—The Sec21 retary is authorized to make grants in accordance with

22 the provisions of this subtitle to States, units of general

23 local government, Indian tribes, and community-based

24 non-profit organizations for the purpose of stimulating

25 public and private investment in the community-building
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1 enterprises that provide essential services to disadvan2 taged communities, spur new investment and development

3 in nearby areas, and create jobs for neighborhood resi4 dents.

5 (b) FUNDING AUTHORIZATION.—

6 (1) IN GENERAL.—There are authorized to be

7 appropriated for purposes of this subtitle

8 $200,000,000 for fiscal year 1995 and such sums as

9 may be necessary for fiscal year 1996. Any amount

10 appropriated shall remain available until expended.

11 (2) ALLOCATION OF FUNDS.—

12 (A) Of the amounts appropriated under

13 paragraph (1) for any fiscal year, the Secretary

14 shall set aside such amounts as the Secretary

15 deems appropriate to carry out the training, in16 formation, and technical assistance activities re17 ferred to in section 707.

18 (B) Of the amounts remaining each fiscal

19 year after amounts are set aside under subpara20 graph (A)—

21 (i) 75 percent shall be available for

22 neighborhood revitalization grants under

23 section 704; and

24 (ii) 25 percent shall be available for

25 project-based grants under section 705.
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1 ELIGIBLE NEIGHBORHOODS

2 SEC. 702. (a) INDICIA OF NEED.—Grants under this

3 subtitle may only be used in neighborhoods that meet such

4 criteria of need as the Secretary shall prescribe. These cri5 teria may include—

6 (1) concentrations of persons of low and mod7 erate income in census tracts in the neighborhood;

8 (2) poverty rates in the neighborhood;

9 (3) rates of unemployment in the neighborhood;

10 and

11 (4) such other indicia of economic need as the

12 Secretary deems appropriate.

13 (b) LIMITATION.—Eligible neighborhoods under this

14 section shall be located outside central business districts,

15 as determined by the Secretary, except that the Secretary

16 may waive this requirement, if the Secretary determines

17 that a successful neighborhood revitalization strategy is

18 contingent upon the simultaneous revitalization of such a

19 district.

20 ELIGIBLE ACTIVITIES

21 SEC. 703. Grants under this subtitle may be used to

22 carry out activities to further the comprehensive physical

23 and economic revitalization of eligible neighborhoods, in24 cluding (but not limited to) activities such as the construc25 tion, rehabilitation, or financing of—

26 (1) retail and service facilities;
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1 (2) mixed-use projects;

2 (3) projects that link economic development and

3 housing;

4 (4) community centers; and

5 (5) community-based business expansions.

6 Grantees may provide assistance under this subtitle

7 through grants, loans, credit enhancements, or other ap8 propriate mechanisms.

9 GRANTS FOR NEIGHBORHOOD REVITALIZATION PROJECTS

10 SEC. 704. (a) IN GENERAL.—Of amounts allocated

11 under section 701(b)(2)(B)(i), the Secretary shall make

12 grants for the purpose of assisting the development and

13 implementation of neighborhood revitalization projects in

14 eligible neighborhoods, which may include projects in

15 which grantees participate as developers or joint-venture

16 partners with for-profit entities.

17 (b) SELECTION PROCESS.—

18 (1) IN GENERAL.—The Secretary shall select

19 grantees under this section on a non-competitive

20 basis, through negotiation with the grantee.

21 (2) SELECTION CRITERIA.—In selecting

22 projects, the Secretary shall consider the extent to

23 which the assisted activities will—

24 (A) provide essential goods and services to

25 residents of the neighborhood;
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1 (B) generate jobs for residents of the

2 neighborhood, especially for residents who are

3 chronically unemployed or receive welfare;

4 (C) be an essential element of, and catalyst

5 for, the comprehensive physical and economic

6 revitalization of the neighborhood;

7 (D) build the economic base of the neigh8 borhood through such measures as business ex9 pansion, and job opportunities and meaningful

10 reinvestment of a share of the profits of a suc11 cessful project in the neighborhood, including

12 economically empowering neighborhood resi13 dents to carry out additional neighborhood de14 velopment projects;

15 (E) leverage public and private investment

16 (other than assistance under this subtitle) in

17 the physical and economic revitalization of the

18 neighborhood and in the activities proposed to

19 be assisted; and

20 (F) meet such other factors as the Sec21 retary deems appropriate to carry out the objec22 tives of this section.

23 (c) AUTHORITY OF SECRETARY.—The Secretary

24 shall prescribe such requirements for the making of grants

25 under this section as the Secretary deems appropriate.
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1 COMPETITIVE GRANTS FOR PROJECT-BASED GRANTS

2 SEC. 705. (a) IN GENERAL.—Of amounts allocated

3 under section 701(b)(2)(B)(ii), the Secretary shall make

4 grants for the purpose of facilitating private and public

5 sector investment in economic revitalization projects in eli6 gible neighborhoods.

7 (b) APPLICATIONS.—

8 (1) FORM AND PROCEDURE.—An application

9 for a grant under this section shall be submitted in

10 such form and in accordance with such procedures

11 as the Secretary shall prescribe.

12 (2) MINIMUM REQUIREMENTS—An application

13 shall at a minimum—

14 (A) request a grant under this section,

15 specifying the amount of the grant requested

16 and its proposed uses;

17 (B) demonstrate that the neighborhood in

18 which the proposed activities are to be carried

19 out is an eligible neighborhood under section

20 702;

21 (C) describe the applicant’s comprehensive

22 strategy for the physical and economic revital23 ization of the neighborhood;

24 (D) demonstrate that the proposed activi25 ties are an integral part of this strategy;
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1 (E) demonstrate that the proposed project

2 is consistent with, and an integral part of, the

3 relevant housing and community development

4 plans of the State or unit of general local gov5 ernment; and

6 (F) contain a certification that the appli7 cant will comply with the requirements of the

8 Fair Housing Act, title VI of the Civil Rights

9 Act of 1964, section 504 of the Rehabilitation

10 Act of 1973, and the Age Discrimination Act of

11 1975, and will affirmatively further fair hous12 ing.

13 (c) SELECTION CRITERIA.—The Secretary shall es14 tablish selection criteria for awarding grants under this

15 section. These criteria shall consider the extent to which

16 the assisted activities—

17 (1) generate jobs for residents of the neighbor18 hood, especially for residents who are chronically un19 employed or receive welfare;

20 (2) build the economic base of the neighborhood

21 through such measures as business expansion, and

22 job opportunities and meaningful reinvestment of a

23 share of the profits of a successful project in the

24 neighborhood, including economically empowering
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1 neighborhood residents to carry out additional neigh2 borhood development projects;

3 (3) are sponsored by for-profit or non-profit de4 velopment partnerships with a proven record of suc5 cess;

6 (4) build upon and expand the capacity of local

7 institutions to carry out neighborhood revitalization;

8 (5) are an integral part of the housing and

9 community development plans of the appropriate

10 governmental jurisdiction; and

11 (6) meet such other factors as the Secretary

12 deems appropriate to carry out the objectives of this

13 section.

14 (d) GRANT LIMITATIONS.—

15 (1) NEED FOR GRANT.—A grant may be made

16 under this section only if the Secretary determines

17 that the grantee has made efforts to complete the

18 project without a grant under this section, but can19 not do so consistent with the timely execution of the

20 project without the grant.

21 (2) NUMBER OF APPLICATIONS.—The Secretary

22 shall establish limits on the number of applications

23 submitted by individual grantees within any unit of

24 general local government, State, or Indian tribe for
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1 each announcement of funding availability that is

2 published in the Federal Register.

3 (3) GRANT CAP.—The Secretary shall establish

4 aggregate limits on the grant amounts that may be

5 made available to individual grantees within a unit

6 of general local government, State, or Indian tribe

7 for each announcement of funding availability that is

8 published in the Federal Register.

9 (e) AUTHORITY OF SECRETARY.—The Secretary

10 shall prescribe such requirements for the making of grants

11 under this section as the Secretary deems appropriate.

12 RECORDS, REPORTS, AND AUDITS

13 SEC. 706. (a) KEEPING OF RECORDS.—Each grantee

14 shall keep such records as may be reasonably necessary

15 to disclose the amounts and the disposition of grant

16 amounts received under this subtitle and to ensure compli17 ance with the requirements of this subtitle.

18 (b) GRANTEE REPORTS.—Each grantee shall submit

19 to the Secretary a report, or series of reports, in a form

20 and at a time specified by the Secretary. Each report

21 shall—

22 (1) describe the use of funds made available

23 under this subtitle; and

24 (2) describe and analyze the effect of assisted

25 activities in addressing the objectives of this subtitle.
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1 (c) ACCESS TO DOCUMENTS BY THE SECRETARY.—

2 The Secretary shall have access for the purpose of audit

3 and examination to any books, documents, papers, and

4 records of the grantee that are pertinent to assistance re5 ceived in connection with, and the requirements of, this

6 subtitle.

7 (d) ACCESS TO DOCUMENTS BY THE COMPTROLLER

8 GENERAL.—The Comptroller General of the United

9 States, or any of the duly authorized representatives of

10 the Comptroller General, shall have access for the purpose

11 of audit and examination to any books, documents, papers,

12 and records of the grantee that are pertinent to assistance

13 received under, and the requirements of, this subtitle.

14 TRAINING AND INFORMATION ACTIVITIES

15 SEC. 707. From amounts set aside under section

16 701(b)(1), the Secretary shall carry out, directly or

17 through contracts, training, information, and technical as18 sistance activities with respect to the programs authorized

19 by this subtitle.

20 DEFINITIONS

21 SEC. 708. As used in this subtitle:

22 (1) The term ‘‘Indian tribe’’ has the meaning

23 given such term in section 102(a)(17) of the Hous24 ing and Community Development Act of 1974.
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1 (2) The term ‘‘neighborhood’’ means an area

2 consisting of such geographic and other characteris3 tics as the Secretary may prescribe.

4 (3) The term ‘‘nonprofit’’ organization’’

5 means—

6 (A) an organization—

7 (i) that is described in section 501(c)

8 of the Internal Revenue Act of 1986; and

9 (ii) is exempt from taxation under

10 section 501(a) of such Code; or

11 (B) an organization—

12 (i) no part of the net earnings of

13 which inures to the benefit of any member,

14 founder, contributor, or individual;

15 (ii) that in the case of a private non16 profit organization, has a voluntary board;

17 (iii) that has an accounting system, or

18 has designated a fiscal agent in accordance

19 with requirements established by the Sec20 retary; and

21 (iv) that practices nondiscrimination

22 in the provision of assistance.

23 (4) The term ‘‘Secretary’’ means the Secretary

24 of Housing and Urban Development.
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1 (5) The term ‘‘State’’ has the meaning given

2 the term in section 102(a)(2) of the Housing and

3 Community Development Act of 1974.

4 (6) The term ‘‘unit of general local govern5 ment’’ means—

6 (A) a city, town, township, county, parish,

7 village, or other general purpose political sub8 division of a State;

9 (B) the District of Columbia; and

10 (C) any agency or instrumentality thereof

11 that is established pursuant to legislation and

12 designated by the chief executive to act on be13 half of the jurisdiction with regard to provisions

14 of this subtitle.

15 The term includes a consortium of geographically

16 contiguous units of general local government, if the

17 Secretary determines that the consortium—

18 (i) has sufficient authority and administra19 tive capability to carry out the purposes of this

20 subtitle on behalf of its member jurisdictions;

21 and

22 (ii) meets such other requirements as the

23 Secretary may prescribe.
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1 Subtitle B—Community Viability Fund

2 PROGRAM AUTHORIZATION

3 SEC. 771. Section 123 of the Housing and Urban4 Rural Recovery Act of 1983 is amended to read as follows:

5 ‘‘COMMUNITY VIABILITY FUND

6 ‘‘SEC. 123. (a) AUTHORIZATION.—

7 ‘‘(1) PROGRAM AUTHORITY.—The Secretary is

8 authorized, in accordance with the provisions of this

9 section—

10 ‘‘(A) to make grants for strategic planning

11 and urban design, as provided in subsection (b);

12 ‘‘(B) to make grants for community insti13 tution building and neighborhood development,

14 as provided in section (c); and

15 ‘‘(C) to provide analysis, information dis16 semination, travel, technical assistance, and rec17 ognition awards, as provided in section (d).

18 ‘‘(2) FUNDING AUTHORITY.—

19 ‘‘(A) IN GENERAL.—There are authorized

20 to be appropriated for purposes of this section

21 $130,000,000 for fiscal year 1995 and such

22 sums as may be necessary for fiscal year 1996.

23 Any amounts appropriated shall remain avail24 able until expended.
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1 ‘‘(B) OVERALL ALLOCATION OF FUNDS.—

2 Of the amounts appropriated under paragraph

3 (2) for each such year—

4 ‘‘(i) not to exceed $30,000,000 shall

5 be available for grants for strategic plan6 ning and urban design under subsection

7 (b);

8 ‘‘(ii) not to exceed $100,000,000 shall

9 be available for grants for community in10 stitution building and neighborhood devel11 opment under subsection (c); and

12 ‘‘(iii) not to exceed $10,000,000 shall

13 be available for analysis, information dis14 semination, travel, technical assistance,

15 and recognition awards under subsection

16 (d).

17 ‘‘(b) GRANTS FOR STRATEGIC PLANNING AND

18 URBAN DESIGN.—

19 ‘‘(1) IN GENERAL.—From amounts set aside

20 under subsection (a)(2)(B)(i), the Secretary is au21 thorized to make grants in furtherance of the objec22 tives of this subsection to States; units of general

23 local government; and metropolitan, non-metropoli24 tan, and regional planning agencies.
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1 ‘‘(2) CATEGORIES OF ACTIVITIES.—The Sec2 retary is authorized to allocate amounts available

3 under this subsection for the following categories of

4 activities:

5 ‘‘(A) Urban design and the development of

6 public amenities in lower income neighborhoods

7 that serve as a catalyst for the renewal of the

8 neighborhood.

9 ‘‘(B) Development and implentation of

10 comprehensive plans that focus on local and

11 metropolitan stategies which create sustainable

12 community development at the neighborhood,

13 city, and metropolitan level.

14 ‘‘(C) Expanding economic opportunities for

15 persons of low and moderate income through

16 areawide planning approaches that provide edu17 cational and employment opportunities for such

18 persons.

19 ‘‘(D) Coordinated efforts that stimulate

20 fair housing, further the deconcentration of the

21 poor and minorities, reduce the isolation of in22 come groups within communities, remove bar23 riers to affordable housing development, and ex24 pand housing opportunities for persons of low

25 and moderate income.
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1 ‘‘(E) The conservation of important his2 toric, visual, and cultural features.

3 ‘‘(F) The development and implementation

4 of comprehensive approaches that integrate

5 poorer, inner-city neighborhoods into the great6 er metropolitan region.

7 ‘‘(G) Such other categories as the Sec8 retary determines will further the purposes of

9 this subsection.

10 ‘‘(3) ALLOCATION OF FUNDS.—From amounts

11 available under this subsection for any fiscal year,

12 the Secretary shall use—

13 ‘‘(A) 75 percent for competitive grants

14 under paragraph (4); and

15 ‘‘(B) 25 percent for non-competitive grants

16 under paragraph (5).

17 ‘‘(4) COMPETITIVE GRANTS.—An application

18 for a competitive grant under this subsection shall

19 contain such information, and be submitted by an

20 applicant in such form and in accordance with such

21 procedures, as the Secretary shall prescribe.

22 ‘‘(5) NON-COMPETITIVE GRANTS.—The Sec23 retary shall select grantees for non-competitive

24 grants under this subsection through negotiation

25 with the grantee.
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1 ‘‘(6) SELECTION CRITERIA.—The Secretary

2 shall establish selection criteria for grants under

3 paragraphs (4) and (5). The criteria shall include

4 factors such as the extent to which the activities pro5 posed for assistance—

6 ‘‘(A) involve interagency and intergovern7 mental coordination of Federal, State, and local

8 public, private, and nonprivate resources in an

9 integrated manner;

10 ‘‘(B) represent an innovative approach to

11 furthering the objectives of this section; and

12 ‘‘(C) are part of an overall strategic revi13 talization plan.

14 ‘‘(7) AUTHORITY OF SECRETARY.—The Sec15 retary shall prescribe such additional requirements

16 for the making of grants under this subsection as

17 the Secretary deems appropriate.

18 ‘‘(c) GRANTS FOR COMMUNITY INSTITUTION BUILD19 ING AND NEIGHBORHOOD DEVELOPMENT.—

20 ‘‘(1) IN GENERAL.—From amounts set aside

21 under subsection (a)(2)(B)(ii), the Secretary is au22 thorized to make grants to eligible neighborhood de23 velopment organizations, nonprofit organizations,

24 and entities that assist such organizations in carry25 ing out activities under this section, to provide train-
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1 ing and other forms of capacity building assistance

2 to improve and expand the ability of community and

3 neighborhood organizations to carry out housing and

4 development programs, and to carry out neighbor5 hood development activities, including those specified

6 in paragraphs (3) (B) through (F).

7 ‘‘(2) ALLOCATION OF FUNDS.—From amounts

8 available under this subsection for any fiscal year,

9 the Secretary shall use—

10 ‘‘(A) 75 percent for competitive grants

11 under paragraph (4); and

12 ‘‘(B) 25 percent for non-competitive grants

13 under paragraph (5).

14 ‘‘(3) ELIGIBLE ACTIVITIES.—Activities eligible

15 for assistance under this subsection include—

16 ‘‘(A) training, technical assistance, and ca17 pacity building for new and existing organiza18 tions and institutions;

19 ‘‘(B) building the capacity of neighborhood

20 organizations and institutions, such as Commu21 nity Development Corporations, community

22 banks, and credit unions;

23 ‘‘(C) establishing new community-based or24 ganizations and institutions;
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1 ‘‘(D) promoting joint ventures that expand

2 housing, educational, and employment choices

3 for inner city residents;

4 ‘‘(E) creating permanent jobs available to

5 persons of low and moderate income and unem6 ployed populations;

7 ‘‘(F) establishing or expanding business

8 opportunities within low- and moderate-income

9 neighborhoods;

10 ‘‘(G) developing, rehabilitating, or manag11 ing neighborhood housing stock;

12 ‘‘(H) developing delivery mechanisms for

13 essential services that have lasting benefit to

14 the community and neighborhood;

15 ‘‘(I) planning, promoting, or financing vol16 untary neighborhood improvement efforts; and

17 ‘‘(J) such other activities that the Sec18 retary determines further the purposes of this

19 subsection.

20 ‘‘(4) COMPETITIVE GRANTS.—An application

21 for a competitive grant under this subsection shall

22 contain such information, and be submitted by an

23 applicant in such form and in accordance with such

24 procedures, as the Secretary shall prescribe.
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1 ‘‘(5) NON-COMPETITIVE GRANTS.—The Sec2 retary shall select grantees for non-competitive

3 grants under this subsection through negotiation

4 with the grantee.

5 ‘‘(6) SELECTION CRITERIA.—The Secretary

6 shall establish selection criteria for grants under

7 paragraphs (4) and (5). The criteria shall include

8 the extent to which the proposed activities will—

9 ‘‘(A) develop new community and neigh10 borhood groups in previously unorganized areas

11 for groups that do not yet have the track record

12 necessary to secure project-based funding;

13 ‘‘(B) develop new organizations that link

14 housing, economic, and human development;

15 ‘‘(C) coordinate with local law enforcement

16 agencies or local public housing agencies involv17 ing anti-crime initiatives;

18 ‘‘(D) leverage matching contributions to

19 support a wide variety of community develop20 ment initiatives from the private sector; founda21 tions; colleges and universities; civic groups; so22 cial, cultural, religious, and other institutions;

23 and the national service program in a manner

24 that achieves greater long-term private sector

25 support;
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1 ‘‘(E) build the managerial, financial, and

2 administrative capacity of the applicant organi3 zation or the community organizations to which

4 it proposes to provide services; and

5 ‘‘(F) assist eligible neighborhood develop6 ment organizations.

7 ‘‘(7) AUTHORITY OF SECRETARY.—The Sec8 retary shall prescribe such additional requirements

9 for the making of grants under this subsection as

10 the Secretary deems appropriate.

11 ‘‘(d) RECOGNITION AWARDS.—

12 ‘‘(1) IN GENERAL.—From amounts set aside

13 under subsection (a)(2)(B)(iii), the Secretary is au14 thorized to provide awards recognizing excellence

15 and innovation in the preparation and implementa16 tion of community-wide and regional strategies or

17 activities that successfully further sustainable com18 munity development by—

19 ‘‘(A) expanding fair housing opportunities;

20 ‘‘(B) furthering economic revitalization;

21 ‘‘(C) reducing economic isolation of income

22 groups within communities and the region;

23 ‘‘(D) expanding housing, educational, and

24 employment choices for persons of low and
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1 moderate income throughout a metropolitan

2 area;

3 ‘‘(E) providing amenities in lower income

4 neighborhoods that serve as a catalyst for and

5 result in the neighborhood’s revitalization; or

6 ‘‘(F) such other means as the Secretary

7 deems appropriate.

8 ‘‘(2) USE OF FUNDS.—The Secretary may use

9 amounts under this subsection—

10 ‘‘(A) to provide grants to, or to enter into

11 contracts with, public and private organizations

12 (including governmental, nonprofit, and for13 profit organizations) to assist in the analysis

14 and selection of award recipients, the provision

15 (directly or by contract) of technical assistance,

16 and the dissemination of information used to

17 carry out the programs authorized under sub18 sections (b) and (c);

19 ‘‘(B) to defray the costs of the Secretary

20 in administering the program authorized by this

21 subsection, including (but not limited to) such

22 costs as—

23 ‘‘(i) printing and disseminating infor24 mation;

25 ‘‘(ii) holding conferences;
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1 ‘‘(iii) establishing and using design ju2 ries selected by the Secretary;

3 ‘‘(iv) providing nominal awards to

4 winning nominees;

5 ‘‘(v) holding competitions for awards,

6 including travel and per diem costs; and

7 ‘‘(vi) travel of award winners to at8 tend follow-on conferences endorsed by the

9 Secretary and to provide peer-to-peer as10 sistance to other appropriate individuals

11 and entities; and

12 ‘‘(C) to provide technical assistance, di13 rectly or by contract, to further the purposes of

14 this subsection.

15 ‘‘(3) AUTHORITY OF SECRETARY.—The Sec16 retary shall prescribe such requirements for recogni17 tion awards under this subsection as the Secretary

18 deems appropriate.

19 ‘‘(e) RECORDS, REPORTS, AND AUDITS.—

20 ‘‘(1) KEEPING OF RECORDS.—Each grantee

21 under this section shall keep such records as may be

22 reasonably necessary to disclose the amounts and

23 the disposition of grant amounts received under this

24 section and to ensure compliance with the require25 ments of this section.
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1 ‘‘(2) GRANTEE REPORTS.—Each such grantee

2 shall submit to the Secretary a report, or series of

3 reports, in a form and at a time specified by the

4 Secretary. Each report shall—

5 ‘‘(A) describe the use of funds made avail6 able under this section; and

7 ‘‘(B) describe and analyze the effect of as8 sisted activities in addressing the purposes of

9 this section.

10 ‘‘(3) ACCESS TO DOCUMENTS BY THE SEC11 RETARY.—The Secretary shall have access for the

12 purpose of audit and examination to any books, doc13 uments, papers, and records of the grantee that are

14 pertinent to assistance received in connection with,

15 and the requirements of, this section.

16 ‘‘(4) ACCESS TO DOCUMENT BY THE COMP17 TROLLER GENERAL.—The Comptroller General of

18 the United States, or any of the duly authorized rep19 resentatives of the Comptroller General, shall have

20 access for the purpose of audit and examination to

21 any books, documents, papers, and records of the

22 grantee that are pertinent to assistance received

23 under, and the requirements of, this section.

24 ‘‘(f) DEFINITIONS.—As used in this section:
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1 ‘‘(1) For purposes of subsection (c), the term

2 ‘eligible neighborhood development organization’

3 means—

4 ‘‘(A) an entity organized as a nonprofit or5 ganization incorporated under the laws of the

6 State in which it operates;

7 ‘‘(B) an organization that is responsible to

8 residents of its neighborhood through a govern9 ing body, not less than 51 percent of the mem10 bers of which reside within the boundaries of

11 the area served;

12 ‘‘(C) an organization that has conducted

13 business for at least one year before the date of

14 an application for a grant; and

15 ‘‘(D) an organization that conducts neigh16 borhood development activities that have as

17 their primary beneficiaries persons of low and

18 moderate income.

19 ‘‘(2) The term ‘nonprofit organization’ means—

20 ‘‘(A) an organization—

21 ‘‘(i) that is described in section 501(c)

22 of the Internal Revenue Act of 1986; and

23 ‘‘(ii) is exempt from taxation under

24 section 501(a) of such Code; or

25 ‘‘(B) an organization—
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1 ‘‘(i) no part of the net earnings of

2 which inures to the benefit of any member,

3 founder, contributor, or individual;

4 ‘‘(ii) that in the case of a private non5 profit organization, has a voluntary board;

6 ‘‘(iii) that has an accounting system,

7 or has designated a fiscal agent in accord8 ance with requirements established by the

9 Secretary; and

10 ‘‘(iv) that practices nondiscrimination

11 in the provision of assistance.

12 ‘‘(3) The term ‘persons of low- and moderate13 income’ has the meaning given the term in section

14 102(a)(20) of the Housing and Community Develop15 ment Act of 1974.

16 ‘‘(4) The term ‘Secretary’ means the Secretary

17 of Housing and Urban Development.

18 ‘‘(5) The term ‘State’ has the meaning given

19 the term in section 102(a)(2) of the Housing and

20 Community Development Act of 1974.

21 ‘‘(6) The term ‘unit of general local govern22 ment’ means—

23 ‘‘(A) a city, town, township, county, parish,

24 village, or other general purpose political sub25 division of a State;
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1 ‘‘(B) the District of Columbia; and

2 ‘‘(C) any agency or instrumentality thereof

3 that is established pursuant to legislation and

4 designated by the chief executive to act on be5 half of the jurisdiction with regard to provisions

6 of this section.

7 The term includes a consortium of geographically

8 contiguous units of general local government, if the

9 Secretary determines that the consortium—

10 ‘‘(i) has sufficient authority and adminis11 trative capability to carry out the purposes of

12 this section on behalf of its member jurisdic13 tions; and

14 ‘‘(ii) meets such other requirements as the

15 Secretary may prescribe.’’.

16 SAVINGS PROVISION

17 SEC. 712. (a) PREVIOUS GRANTS.—Any grant ap18 proved under section 123 before the effective date of this

19 section shall continue to be governed by the provisions of

20 section 123.

21 (b) EFFECTIVE DATE.—This section shall become ef22 fective on the later of October 1, 1994 or the date of en23 actment of this Act.

24 Subtitle C—Colonias Assistance Program Authorization

25 SEC. 721. (a) PROGRAM AUTHORIZATION.—The Sec26 retary is authorized to make grants in accordance with
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1 the provisions of this subtitle to units of general local gov2 ernment, States, non-profit organizations, or entities or

3 instrumentalities established under the authority of any

4 of these entities, for use in addressing the community de5 velopment and housing needs of colonias.

6 (b) FUNDING AUTHORIZATION.—

7 (1) IN GENERAL.—There are authorized to be

8 appropriated for purposes of this subtitle

9 $100,000,000 for each of fiscal years 1995 and

10 1996. Any amount appropriated shall remain avail11 able until expended.

12 (2) ALLOCATION OF FUNDS.—Of the amounts

13 appropriated under paragraph (1) for any fiscal

14 year—

15 (A) 80 percent shall be available for grants to

16 establish model programs under section 723; and

17 (B) 20 percent shall be available for competitive

18 grants under section 724.

19 ELIGIBLE ACTIVITIES

20 SEC. 722. Assistance under this subtitle may be used

21 to carry out the following activities:

22 (1) Any activity eligible under section 105 of

23 the Housing and Community Development Act of

24 1974 or section 212(a) of the HOME Investment

25 Partnerships Act.
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1 (2) Refinancing the existing debt of home2 owners to convert existing ownership regimes into

3 mortgages.

4 (3) The construction of new housing, including

5 self-help, energy-efficient, and innovative housing de6 sign initiatives.

7 (4) The development of new subdivisions for af8 fordable housing.

9 (5) The re-platting and redevelopment of exist10 ing subdivisions.

11 (6) The planning for, and construction of, in12 frastructure necessary for the development of hous13 ing, economic development, and community facilities

14 and amenities.

15 (7) Such other activities as the Secretary deems

16 appropriate to further the purposes of this subtitle.

17 MODEL PROGRAMS

18 SEC. 723. (a) IN GENERAL.—Of amounts allocated

19 under section 721(b)(2)(A), the Secretary shall make

20 grants to the entities referred to in section 721(a) for the

21 purpose of establishing model programs of assistance for

22 addressing the community development, housing, and

23 other needs of the residents of the colonias.

24 (b) SELECTION OF GRANTEES.—

25 (1) GEOGRAPHIC DISTRIBUTION.—The Sec26 retary shall designate—
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1 (A) at least one project in each State; and

2 (B) at least one project within a metropoli3 tan area in any State.

4 (2) SELECTION PROCESS.—

5 (A) IN GENERAL.—The Secretary shall se6 lect grantees under this section on a non-com7 petitive basis, through negotiation with the

8 grantee.

9 (B) SELECTION CRITERIA.—In selecting

10 projects, the Secretary shall consider—

11 (i) the extent of need in the colonia;

12 (ii) the likely effectiveness of the pro13 posed approach in addressing identified

14 needs;

15 (iii) the extent to which funding for

16 the project is committed from sources

17 other than under this subtitle;

18 (iv) the need to consider a variety of

19 solutions to a variety of needs situations;

20 and

21 (v) such other factors as the Secretary

22 deems appropriate to carry out the objec23 tives of this subtitle.

24 COMPETITIVE GRANTS

25 SEC. 724. (a) FUNDING SET-ASIDE.—
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1 (1) IN GENERAL.—Of amounts allocated under

2 section 721(b)(2)(B), the Secretary shall set aside a

3 target amount for grants under this section for use

4 in colonias in each State. The Secretary shall deter5 mine the amount be set aside, based on such objec6 tive factors of need as the Secretary deems appro7 priate, which may include rates of poverty in, and

8 the population of, colonias. The Secretary shall re9 allocate any amounts set-aside under this paragraph

10 for which the Secretary determines there will not be

11 sufficient approvable applications in a fiscal year.

12 (2) USE OF FUNDS.—Any amount not set aside

13 or reallocated under paragraph (1) may be used in

14 colonias in any State.

15 (b) AUTHORITY TO MAKE GRANTS.—Grants under

16 this section shall be made, in accordance with subsection

17 (a), to the entities referred to in section 721(a), for the

18 purpose of assisting the community development and

19 housing needs of the residents of one or more colonias in

20 an area or region.

21 (c) APPLICATIONS.—Applications under this section

22 shall contain such information, and shall be submitted at

23 such time and in accordance with such procedures, as the

24 Secretary shall prescribe.

25 (d) SELECTION OF GRANTEES.—
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1 (1) IN GENERAL.—The Secretary shall select

2 grantees under this section on the basis of a com3 petition, following publication of a notice of funding

4 availability in the Federal Register.

5 (2) SELECTION CRITERIA.—In selecting

6 projects, the Secretary shall consider—

7 (A) the extent of need in the colonia;

8 (B) the likely effectiveness of the proposed

9 approach in addressing identified needs;

10 (C) the extent to which funding for the

11 project is committed from sources other than

12 under this subtitle;

13 (D) the extent to which the application

14 represents an innovative approach to addressing

15 the needs of colonias; and

16 (E) such other factors as the Secretary

17 deems appropriate to carry out the objectives of

18 this subtitle.

19 RECORDS, REPORTS, AND AUDITS

20 SEC. 725. (a) KEEPING OF RECORDS.—Each grantee

21 shall keep such records as may be reasonably necessary

22 to disclose the amounts and the disposition of grant

23 amounts received under this subtitle and to ensure compli24 ance with the requirements of this subtitle.

25 (b) GRANTEE REPORTS.—Each grantee shall submit

26 to the Secretary a report, or series of reports, in a form
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1 and at a time specified by the Secretary. Each report

2 shall—

3 (1) describe the use of funds made available

4 under this subtitle; and

5 (2) describe and analyze the effect of assisted

6 activities in addressing the community development

7 and housing needs of the residents of colonias.

8 (c) ACCESS TO DOCUMENTS BY THE SECRETARY.—

9 The Secretary shall have access for the purpose of audit

10 and examination to any books, documents, papers, and

11 records of the grantee that are pertinent to assistance re12 ceived in connection with, and the requirements of, this

13 subtitle.

14 (d) ACCESS TO DOCUMENTS BY THE COMPTROLLER

15 GENERAL.—The Comptroller General of the United

16 States, or any of the duly authorized representatives of

17 the Comptroller General, shall have access for the purpose

18 of audit and examination to any books, documents, papers,

19 and records of the grantee that are pertinent to assistance

20 received under, and the requirements of, this subtitle.

21 DEFINITIONS

22 SEC. 726. As used in this subtitle:

23 (1) The terms ‘‘colonia’’ and ‘‘United States24 Mexico Border Region’’ have the meanings given

25 those terms in sections 916(e)(1) and (4), respec-
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1 tively, of the Cranston-Gonzalez National Affordable

2 Housing Act.

3 (2) The term ‘‘metropolitan area’’ has the

4 meaning given the term in section 102(a)(3) of the

5 Housing and Community Development Act of 1974.

6 (3) The term ‘‘nonprofit organization’’ means—

7 (A) an organization—

8 (i) that is described in section 501(c)

9 of the Internal Revenue Act of 1986; and

10 (ii) is exempt from taxation under

11 section 501(a) of such Code; or

12 (B) an organization—

13 (i) no part of the net earnings of

14 which inures to the benefit of any member,

15 founder, contributor, or individual;

16 (ii) that in the case of a private non17 profit organization, has a voluntary board;

18 (iii) that has an accounting system, or

19 has designated a fiscal agent in accordance

20 with requirements established by the Sec21 retary; and

22 (iv) that practices nondiscrimination

23 in the provision of assistance.

24 (4) The term ‘‘Secretary’’ means the Secretary

25 of Housing and Urban Development.
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1 (5) The term ‘‘State’’ means the States of Cali2 fornia, Arizona, New Mexico, and Texas.

3 (6) The term ‘‘unit of general local govern4 ment’’ means—

5 (A) a city, town, township, county, parish,

6 village, or other general purpose political sub7 division of a State;

8 (B) the District of Columbia; and

9 (C) any agency or instrumentality thereof

10 that is established pursuant to legislation and

11 designated by the chief executive to act on be12 half of the jurisdiction with regard to provisions

13 of this subtitle.

14 The term includes a consortium of geographically

15 contiguous units of general local government, if the

16 Secretary determines that the consortium—

17 (i) has sufficient authority and administra18 tive capability to carry out the purposes of this

19 subtitle on behalf of its member jurisdictions;

20 and

21 (ii) meets such other requirements as the

22 Secretary may prescribe.
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1 EXTENSION OF COLONIAL PROGRAM UNDER SECTION 916

2 OF THE CRANSTON-GONZALEZ NATIONAL AFFORD3 ABLE HOUSING ACT

4 SEC. 727. Section 916(f) of the Cranston-Gonzalez

5 National Affordable Housing Act is amended by striking

6 ‘‘1991’’ and all that follows up to the period and inserting

7 in lieu thereof the following: ‘‘beginning before fiscal year

8 1998’’.

9 Subtitle D—Zone Economic Development Initiative

10 Authorization

11 SEC. 731. The Secretary of Housing and Urban De12 velopment may make grants to units of general local gov13 ernment in which Empowerment Zones and Enterprise

14 Communities have been designated pursuant to section

15 1391 of the Internal Revenue Code of 1986.

16 PURPOSE

17 SEC. 732. The purpose of grants under this subtitle

18 is to assist units of general local government in imple19 menting the strategic plan for community revitalization re20 quired for each designated Zone and Community by ex21 panding business opportunities and job creation and by

22 stimulating the use of project-based rental assistance cer23 tificates and other activities to construct or rehabilitate

24 rental housing.
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1 ELIGIBLE ACTIVITIES

2 SEC. 733. (a) ECONOMIC DEVELOPMENT.—Economic

3 development activities are those that are eligible under

4 title I of the Housing and Community Development Act

5 of 1974.

6 (b) ASSISTED HOUSING.—Eligible assisted housing

7 activities include but are not limited to—

8 (1) project-based assistance activities eligible

9 under section 8 of the United States Housing Act of

10 1937 or similar State and local programs; and

11 (2) activities eligible for assistance under the

12 HOME program or a similar local affordable hous13 ing program.

14 (c) TECHNICAL ASSISTANCE.—From amounts set

15 aside under section 737(b), the Secretary shall carry out,

16 directly or through contracts, training and information ac17 tivities in connection with the program authorized by this

18 subtitle.

19 ALLOCATION OF FUNDS

20 SEC. 734. (a) APPLICATION.—A locality in which an

21 empowerment zone or enterprise community has been des22 ignated, where the designation remains in effect, may sub23 mit an application to the Secretary for a grant under this

24 subtitle. The application shall contain such information

25 and certifications as the Secretary may require, including

26 a certification that the grant will be used in accordance
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1 with the approved strategic plan. Where a zone or commu2 nity is within the jurisdiction of more than one unit of

3 general local government, each shall join in the applica4 tion. The application shall specify whether, and if so how,

5 the grant is to be divided among one or more governments.

6 (b) FUNDING.—For applications approved by the

7 Secretary—

8 (1) each urban Empowerment Zone shall re9 ceive $50,000,000;

10 (2) each rural Empowerment Zone shall receive

11 $20,000,000; and

12 (3) each Enterprise Community shall receive

13 $1,400,000.

14 (c) TERMS AND CONDITIONS.—Grants made under

15 this subtitle shall be subject to such terms and conditions

16 as the Secretary may establish.

17 USE IN CONJUNCTION WITH LOAN GUARANTEES

18 SEC. 735. Grants made under this subtitle may be

19 used in conjunction with loans guaranteed under section

20 108 of the Housing and Community Development Act of

21 1974 and section 227 of the Home Investment Partner22 ships Act.

23 RECORDS, REPORTS, AND AUDITS

24 SEC. 736. (a) KEEPING OF RECORDS.—Each grantee

25 shall keep such records as may be reasonably necessary

26 to disclose the amounts and the disposition of grant
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1 amounts received under this subtitle and to ensure compli2 ance with the requirements of this subtitle.

3 (b) GRANTEE REPORTS.—Each grantee shall submit

4 to the Secretary a report, or series of reports, in a form

5 and at a time specified by the Secretary. Each report

6 shall—

7 (1) describe the use of funds made available

8 under this subtitle; and

9 (2) describe and analyze the effect of assisted

10 activities in addressing the objectives of this subtitle.

11 (c) ACCESS TO DOCUMENTS BY THE SECRETARY.—

12 The Secretary shall have access for the purpose of audit

13 and examination to any books, documents, papers, and

14 records of the grantee that are pertinent to assistance re15 ceived in connection with, and the requirements of, this

16 subtitle.

17 (d) ACCESS TO DOCUMENT BY THE COMPTROLLER

18 GENERAL.—The Comptroller General of the United

19 States, or any of the duly authorized representatives of

20 the Comptroller General, shall have access for the purpose

21 of audit and examination to any books, documents, papers,

22 and records of the grantee that are pertinent to assistance

23 received under, and the requirements of, this subtitle.

24 FUNDING AUTHORIZATION

25 SEC. 737. (a) There are authorized to be appro26 priated for purposes of this subtitle $500,000,000 for fis-
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1 cal year 1995 and such sums as may be necessary for fis2 cal year 1996. Any amount appropriated shall remain

3 available until expended.

4 (b) Of the amounts appropriated under subsection (a)

5 for any fiscal year and not allocated under section 734(b),

6 the Secretary shall set aside any balance to carry out the

7 training and information activities referred to in section

8 733(c).

9 Subtitle E—Authorizations of Appropriations Capacity

10 Building for Community Development and Afford11 able Housing

12 SEC. 741. Section 4(e) of the HUD Demonstration

13 Act of 1993 (43 U.S.C. 9816 note) is amended to read

14 as follows:

15 ‘‘(e) AUTHORIZATION.—There are authorized to be

16 appropriated $20,000,000 for fiscal year 1995 and such

17 sums as may be necessary for fiscal year 1996, to carry

18 out this section.’’.

19 COMMUNITY DEVELOPMENT BLOCK GRANTS

20 SEC. 742. (a) COMMUNITY DEVELOPMENT BLOCK

21 GRANTS.—The second sentence of section 103 of the

22 Housing and Community Development Act of 1974 (42

23 U.S.C. 5303) is amended to read as follows: ‘‘For pur24 poses of assistance under section 106, there are authorized

25 to be appropriated $4,400,000,000 for fiscal year 1995

26 and $4,400,000,000 for fiscal year 1996.’’.
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1 (b) LIMITATION ON LOAN GUARANTEES.—The fifth

2 sentence of section 108(a) of the Housing and Community

3 Development Act of 1974 (42 U.S.C. 5308(a)) is amended

4 to read as follows: ‘‘Notwithstanding any other provision

5 of law and subject only to the absence of qualified appli6 cants or proposed activities and to the authority provided

7 in this section, to the extent approved in appropriation

8 Acts, the Secretary shall enter into commitments to guar9 antee notes and obligations under this section with an ag10 gregate principal amount of $2,054,000,000 for fiscal year

11 1995 and $2,054,000,000 for fiscal year 1996.’’.

12 (c) SPECIAL PURPOSE GRANTS.—Section 107 of the

13 Housing and Community Development Act of 1974 (42

14 U.S.C. 5307(a)) is amended by striking out all that fol15 lows ‘‘the following purposes:’’ and inserting in lieu there16 of the following:

17 ‘‘(A) $7,000,000 shall be available in each such

18 year for grants under subsection (b)(1);

19 ‘‘(B) $6,500,000 shall be available in each such

20 year for grants under subsection (b)(3);

21 ‘‘(C) $28,000,000 shall be available in each

22 such year for activities under subsection (b)(4);

23 ‘‘(D) $6,000,000 shall be available in each such

24 year under subsection (b)(5);
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1 ‘‘(E) $2,000,000 shall be available in each such

2 year for grants under subsection (b)(6);

3 ‘‘(F) $3,000,000 shall be available in each such

4 year for grants under subsection (c); and

5 ‘‘(G) such sums as may be necessary shall be

6 available in each such year for grants under para7 graph (2) of subsection (b).’’.

8 ECONOMIC DEVELOPMENT INITIATIVE

9 SEC. 743. Section 108(q)(1) of the Housing and

10 Community Development Act of 1974 (42 U.S.C. 5308)

11 is amended by adding to the end thereof the following sen12 tence: ‘‘There are authorized to be appropriated to carry

13 out this subsection $50,000,000 for fiscal year 1995 and

14 such sums as may be necessary for fiscal year 1996, to

15 remain available until expended.’’.

16 TITLE VIII—MANAGEMENT REFORM

17 Subtitle A—Improve the Allocation and Use of

18 Assistance

19 LIMIT SECTION 8 CONTRACT RENT ADJUSTMENTS FOR

20 RENTS ABOVE SECTION 8 EXISTING HOUSING FMRS

21 SEC. 801. (a) Section 8(c)(2)(A) of the United States

22 Housing Act of 1937 is amended by inserting at the end

23 the following: ‘‘However, where the maximum monthly

24 rent, for a unit in a new construction, substantial rehabili25 tation, or moderate rehabilitation project, to be adjusted

26 using an annual adjustment factor exceeds the fair market
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1 rental for an existing dwelling unit in the market area,

2 the Secretary shall adjust the rent only to the extent that

3 the owner demonstrates that the adjusted rent would not

4 exceed the rent for an unassisted unit of similar quality,

5 type, and age in the same market area, as determined by

6 the Secretary.’’.

7 (b) The amendment made by subsection (a) shall

8 apply to all contracts for new construction, substantial re9 habilitation, and moderate rehabilitation projects under

10 which rents are adjusted under section 8(c)(2)(A) of such

11 Act by applying an annual adjustment factor.

12 PROVIDE INCENTIVES TO REFINANCE HIGH INTEREST

13 MORTGAGES FOR SECTION 8 PROJECTS

14 SEC. 802. Section 8 of the United States Housing

15 Act of 1937 is amended by inserting the following new

16 subsection at the end:

17 ‘‘(z) REFINANCING INCENTIVE.—For a project that

18 (1) was constructed, substantially rehabilitated, or mod19 erately rehabilitated under this section, (2) is subject to

20 an assistance contract under this section, and (3) was sub21 ject to a mortgage that has been refinanced under section

22 223(a)(7) or section 223(f) of the National Housing Act

23 to lower the periodic debt service payments of the owner,

24 the Secretary may pay the owner the amount of the

25 upfront costs to the owner of refinancing. The Secretary

26 may make such payments only from savings in the amount
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1 of assistance payments, as determined by the Secretary

2 on a project-by-project basis and after application of

3 amounts in accordance with section 1012 of the Stewart

4 B. McKinney Homeless Assistance Amendments Act of

5 1988, that result from the refinancing during the first

6 year after the refinancing.’’.

7 LMSA REFORMS

8 SEC. 803. (a) Section 8(v)(1) of the United States

9 Housing Act of 1937 is amended to read as follows:

10 ‘‘(v)(1) In the case of a contract entered into under

11 this section for loan management assistance, the Secretary

12 may reduce the number of units covered by the contract

13 by one for each family that moves out of the project. This

14 paragraph shall not apply in the case of a contract for

15 loan management assistance entered into as an incentive

16 under the Emergency Low Income Housing Preservation

17 Act of 1987 or the Low-Income Housing Preservation and

18 Resident Homeownership Act of 1990.’’.

19 (b) The amendment made by subsection (a) shall

20 apply to all contracts for loan management assistance en21 tered into under section 8 of such Act.

22 REDUCE AAF FOR UNITS WHERE FAMILY HAS NOT

23 MOVED SINCE PREVIOUS YEAR

24 SEC. 804. (a) Section 8(c)(2)(A) of the United States

25 Housing Act of 1937, as amended by section 801 of this

26 Act, is further amended by inserting at the end the follow-
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1 ing: ‘‘For any unit occupied by the same family at the

2 time of the last annual rent adjustment, where the assist3 ance contract provides for the adjustment of the maximum

4 monthly rent by applying an annual adjustment factor and

5 where the rent for a unit is otherwise eligible for an ad6 justment based on the full amount of the factor, 0.01 shall

7 be subtracted from the amount of the factor, except that

8 the factor shall not be reduced to less than 1.0.’’.

9 (b) The amendment made by subsection (a) shall

10 apply to all contracts that are subject to section 8(c)(2)(A)

11 of such Act and that provide for rent adjustments using

12 an annual adjustment factor.

13 PREFERENCE FOR WORKING FAMILIES

14 SEC. 805. The United States Housing Act of 1937

15 is amended—

16 (1) in each of sections 6(c)(4)(A)(ii) and

17 8(d)(1)(A)(ii), by striking ‘‘and (V)’’ and inserting

18 in lieu thereof the following: ‘‘(V) assisting families

19 that include one or more adult members who are

20 employed; and (VI)’’; and

21 (2) in the penultimate sentence of section 16(c),

22 by striking ‘‘under the system’’ and all that follows

23 up to the period.
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1 USE OF TECHNICAL ASSISTANCE FUNDS BY OR FOR HUD

2 STAFF

3 SEC. 806. Section 7 of the Department of Housing

4 and Urban Development Act is amended by adding at the

5 end thereof a new subsection, as follows:

6 ‘‘(r) The Secretary may transfer to any of the ac7 counts of the Department for salaries and expenses from

8 any other account from which funds may be drawn for

9 technical assistance such amounts as the Secretary deter10 mines are reasonable to reimburse such salaries and ex11 penses account. Such reimbursement shall be for expendi12 tures for the costs of personal services, travel, and trans13 portation, and other object classifications that are in14 curred for the technical assistance, training, and related

15 activities provided by or to officials and employees of the

16 Department for a program that is funded from such other

17 account and in which the costs of technical assistance are

18 otherwise eligible for expenditure. Up to 10 percent of the

19 amount that may transferred may be used for technical

20 assistance, training, travel, and related expenses provided

21 to officials and employees of the Department. The author22 ity to transfer provided in this subsection shall be in addi23 tion to any other authority to transfer funds among ac24 counts that the Secretary may now or hereafter have.’’.
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1 Subtitle B—Office Of Public and Indian Housing Over2 sight, Technical Assistance, Emergency Action Re3 sources, and Resident Survey for Public Housing

4 Programs

5 SEC. 811. (a) Section (3) of the United States Hous6 ing Act of 1937 is amended by adding to the end thereof

7 the following new subsection:

8 ‘‘(d) As used in sections 5 and 14, the term ‘technical

9 assistance and services’ shall include (but not be limited

10 to) any or all undertakings by the Secretary, directly using

11 officials and employees of the Secretary, or indirectly

12 under contract or otherwise, related to the inspection or

13 oversight of project or program development or implemen14 tation; training and technical assistance; public housing

15 agency or Indian housing authority program, project, or

16 general management; crisis management and operations;

17 and survey research; and the preparation of reports or rec18 ommendations to the Secretary.’’.

19 (b) Section 5(c) of such Act is amended by adding

20 at the end thereof the following new paragraph:

21 ‘‘(9) From amounts appropriated pursuant to

22 this Act and earmarked for public housing develop23 ment (including Indian housing development) up to

24 one-half of 1 per centum shall be made available to

25 the Secretary for technical assistance and services.’’.
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1 (c) Section 14(k)(1) of such Act is redesignated as

2 section 14(k)(1)(A), and amended by adding the following

3 new paragraph, after such redesignated subparagraph, as

4 follows:

5 ‘‘(B) From amounts approved in appro6 priation Acts for grants under this section in

7 any fiscal year, up to 1 per centum shall be

8 made available to the Secretary for technical as9 sistance and services.’’.

10 RECAPTURE OF DEVELOPMENT AMOUNTS

11 SEC. 812. Section 5(k) of the United States Housing

12 Act of 1937 is amended by adding before the period at

13 the end of the first sentence a comma and the following:

14 ‘‘unless the Secretary finds that there is no feasible way

15 for the agency to begin construction or rehabilitation, or

16 to complete acquisition, within such period’’.

17 Subtitle C—Office of Housing Section 235 Refinancing

18 SEC. 821. Section 235(r) of the National Housing

19 Act is amended—

20 (1) in paragraph (2)(C), by inserting after ‘‘re21 financed’’ the following: ‘‘, plus the costs incurred in

22 connection with the refinancing as described in para23 graph (4)(B) to the extent that the amount for those

24 costs is not otherwise included in the interest rate

25 as permitted by subparagraph (E) or paid by the

26 Secretary as authorized by paragraph (4)(B)’’;
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1 (2) in paragraph (4)—

2 (A) by inserting after ‘‘otherwise)’’ the fol3 lowing: ‘‘and the mortgagee with respect to the

4 amount described in paragraph (A)’’; and

5 (B) in subparagraph (A), by inserting after

6 ‘‘mortgagor’’ the following: ‘‘and the mortga7 gee’’; and

8 (3) by revising paragraph (5) to read as follows:

9 ‘‘(5) The Secretary shall use amounts of budget

10 authority recaptured from assistance payments con11 tracts relating to mortgages that are being refi12 nanced for assistance payments contracts with re13 spect to mortgages insured under this subsection.

14 The Secretary may also make such recaptured

15 amounts available for incentives under paragraph

16 (4)(A) and the costs incurred in connection with the

17 refinancing under paragraph (4)(B). For purposes

18 of subsection (c)(3)(A), the amount of recaptured

19 budget authority that the Secretary commits for as20 sistance payments contracts relating to mortgages

21 insured under this subsection and for amounts paid

22 under paragraph (4) shall not be construed as ‘un23 used.’ ’’.
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1 ELIMINATION OF NEW ACTIVITY IN LOW-USE FHA

2 MULTIFAMILY DEVELOPMENT PROGRAMS

3 SEC. 822. (a) Section 207 of the National Housing

4 Act is amended by adding the following new subsection

5 at the end thereof:

6 ‘‘(s) Beginning 30 days after the effective date of the

7 Housing Choice and Community Investment Act of 1994,

8 the Secretary may not accept new applications for mort9 gage insurance under this section with respect to mort10 gages involving (1) the new construction or substantial re11 habilitation of properties or projects or (2) manufactured

12 home parks.’’.

13 (b) Section 220 of such Act is amended by adding

14 the following new subsection at the end thereof:

15 ‘‘(i) Beginning 30 days after the effective date of the

16 Housing Choice and Community Investment Act of 1994,

17 the Secretary may not accept new applications for mort18 gage insurance under this section with respect to mort19 gages involving the new construction or substantial reha20 bilitation of multifamily projects.’’.

21 (c) Section 231(b) of such Act is amended by adding

22 the following new sentence at the end thereof: ‘‘Beginning

23 30 days after the effective date of the Housing Choice and

24 Community Investment Act of 1994, the Secretary may
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1 not accept new applications for mortgage insurance under

2 this section.’’.

3 (d) Section 234(d) of such Act is amended by adding

4 the following new flush material at the end thereof: ‘‘Be5 ginning 30 days after the effective date of the Housing

6 Choice and Community Investment Act of 1994, the Sec7 retary may not accept new applications for mortgage in8 surance under this subsection.’’.

9 (e) Section 1101 of such Act is amended by adding

10 the following new sentence at the end thereof: ‘‘Beginning

11 30 days after the effective date of the Housing Choice and

12 Community Investment Act of 1994, the Secretary may

13 not accept new applications for mortgage insurance under

14 this title.’’.

15 INDEMNIFICATION FOR PROJECT MANAGERS

16 SEC. 823. Section 207(l) of the National Housing Act

17 is amended by inserting the following before the period:

18 ‘‘: Provided further, That, for properties acquired by the

19 Secretary under this section and for properties secured by

20 any mortgage assigned and transferred to or held by the

21 Secretary, the Secretary may indemnify management con22 tractors against claims by third persons for death, bodily

23 injury, or loss of or damage to property on such terms

24 as the Secretary determines appropriate’’.
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1 Subtitle D—Office of Community Planning and

2 Development

3 MANAGEMENT INFORMATION SYSTEMS

4 SEC. 831. MANAGEMENT INFORMATION SYSTEMS.—

5 Section 103 of the Housing and Community Development

6 Act of 1974 is amended—

7 (1) by inserting the subsection designation

8 ‘‘(a)’’ immediately after ‘‘103’’; and

9 (2) by adding the following new subsection at

10 the end thereof:

11 ‘‘(b) Of the amount approved in an appropriation Act

12 for each of fiscal years 1995 and 1996 under this section,

13 up to 0.5 percent may be set aside by the Secretary for

14 improving management information systems used by the

15 Secretary and recipients under this title.’’.

16 CDBG REALLOCATIONS

17 SEC. 832. Section 106(c) of the Housing and Com18 munity Development Act of 1974 is amended by striking

19 paragraph (4).

20 USE OF UDAG RECAPTURES

21 SEC. 833. Section 119(o) of the Housing and Com22 munity Development Act of 1974 is amended by striking

23 ‘‘October 1, 1993’’ and inserting in lieu thereof ‘‘April 11,

24 1994’’.
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1 Subtitle E—Nonjudicial Foreclosure of Defaulted Single

2 Family Mortgages

3 SEC. 841. SHORT TITLE.—This subtitle may be cited

4 as the ‘‘Single Family Mortgage Foreclosure Act of

5 1994’’.

6 FINDINGS AND PURPOSE.

7 SEC. 842. (a) FINDINGS.—The Congress finds that—

8 (1) disparate State laws under which mortgages

9 are foreclosed on behalf of the Secretary of Housing

10 and Urban Development covering one- to four-family

11 residential properties burden certain programs ad12 ministered by the Secretary, increase the costs of

13 collecting these obligations, and cause detriment to

14 the community generally;

15 (2) long periods to complete the foreclosure of

16 these mortgages under certain State laws lead to de17 terioration in the condition of the properties in18 volved; necessitate substantial Federal holding ex19 penditures; increase the risk of vandalism, fire loss,

20 depreciation, damage, and waste with respect to the

21 properties; and adversely affect the neighborhoods in

22 which the properties are located;

23 (3) these conditions seriously impair the Sec24 retary’s ability to protect the Federal financial inter25 est in the affected properties and frustrate attain-
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1 ment of the objectives of the underlying Federal pro2 gram authority;

3 (4) the availability of a uniform and more expe4 ditious procedure, with no right of redemption in the

5 mortgagor or others, for the foreclosure of these

6 mortgages by the Secretary will tend to ameliorate

7 these conditions; and

8 (5) providing the Secretary with a nonjudicial

9 foreclosure procedure will reduce unnecessary litiga10 tion by removing many foreclosures from the courts

11 where they contribute to overcrowded calendars.

12 (b) PURPOSE.—The purpose of this subtitle is to cre13 ate a uniform Federal foreclosure remedy for single family

14 mortgages that (1) are held by the Secretary of Housing

15 and Urban Development pursuant to title I or title II of

16 the National Housing Act or (2) secure loans obligated

17 by the Secretary under section 312 of the Housing Act

18 of 1964.

19 DEFINITIONS

20 SEC. 843. As used in this subtitle—

21 (1) ‘‘bona fide purchaser’’ means a purchaser

22 for value in good faith and without notice of any ad23 verse claim, who will, therefore, acquire the security

24 property free of any adverse claim;

25 (2) ‘‘mortgage’’ means a deed of trust, mort26 gage, deed to secure debt, security agreement, or
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1 any other form of instrument under which any inter2 est in property, real, personal or mixed, or any inter3 est in property including leaseholds, life estates, re4 versionary interests, and any other estates under ap5 plicable State law, is conveyed in trust, mortgaged,

6 encumbered, pledged, or otherwise rendered subject

7 to a lien for the purpose of securing the payment of

8 money or the performance of an obligation;

9 (3) ‘‘single family mortgage’’ means a mortgage

10 that covers property on which there is located a one11 to four-family residence, which mortgage—

12 (A) is held by the Secretary pursuant to

13 title I or title II of the National Housing Act,

14 or

15 (B) secures a loan obligated by the Sec16 retary under section 312 of the Housing Act of

17 1964, as it existed before its repeal by section

18 289 of the Cranston-Gonzalez National Afford19 able Housing Act (except that a mortgage se20 curing such a loan that covers property contain21 ing non-residential space and a one- to four22 family dwelling shall not be subject to this Act);

23 (4) ‘‘mortgage agreement’’ means the note or

24 debt instrument and the mortgage instrument, deed

25 of trust instrument, trust deed, or instrument or in-
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1 struments creating the mortgage, including any in2 strument incorporated by reference therein and any

3 instrument or agreement amending or modifying any

4 of the foregoing;

5 (5) ‘‘mortgagor’’ means the obligor, grantor, or

6 trustor named in the mortgage agreement and, un7 less the context otherwise indicates, includes the cur8 rent owner of record of the security property wheth9 er or not personally liable on the mortgage debt;

10 (6) ‘‘owner’’ means any person who has an

11 ownership interest in property and includes heirs,

12 devisees, executors, administrators, and other per13 sonal representatives, and trustees of testamentary

14 trusts if the owner of record is deceased;

15 (7) ‘‘person’’ includes any individual, group of

16 individuals, association, partnership, corporation, or

17 organization;

18 (8) ‘‘record’’ and ‘‘recorded’’ include ‘‘register’’

19 and ‘‘registered’’ in the instance of registered land;

20 (9) ‘‘security property’’ means the property

21 (real, personal or mixed) or an interest in property

22 (including leaseholds, life estates, reversionary inter23 ests, and any other estates under applicable State

24 law), together with fixtures and other interests sub-
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1 ject to the lien of the mortgage under applicable

2 State law;

3 (10) ‘‘State’’ means the several States, the Dis4 trict of Columbia, the Commonwealth of Puerto

5 Rico, the United States Virgin Islands, Guam,

6 American Samoa, the Northern Mariana Islands, the

7 Trust Territory of the Pacific Islands, and Indian

8 tribes as defined by the Secretary;

9 (11) ‘‘county’’ means county as defined in title

10 2 of title I, United States Code; and

11 (12) ‘‘Secretary’’ means the Secretary of Hous12 ing and Urban Development.

13 APPLICABILITY

14 SEC. 844. Single family mortgages encumbering real

15 estate located in any State may be foreclosed by the Sec16 retary in accordance with this subtitle, or pursuant to

17 other foreclosure procedures available, at the option of the

18 Secretary.

19 DESIGNATION OF FORECLOSURE COMMISSIONER

20 SEC. 845. A foreclosure commissioner or commis21 sioners designated pursuant to this subtitle shall have a

22 nonjudicial power of sale as provided in this subtitle.

23 Where the Secretary wishes to foreclose upon a single fam24 ily mortgage, the Secretary may designate a foreclosure

25 commissioner and, with or without cause, may designate

26 a substitute foreclosure commissioner to replace a pre-
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1 viously designated foreclosure commissioner, by executing

2 a duly acknowledged, written designation stating the name

3 and business or residential address of the commissioner

4 or substitute commissioner. The designation shall be effec5 tive upon execution. The foreclosure commissioner, if a

6 natural person, shall be a resident of the State in which

7 the security property is located and, if not a natural per8 son, the foreclosure commissioner must be duly authorized

9 to transact business under the laws of the State in which

10 the security property is located. The foreclosure commis11 sioner shall be a person who is responsible, financially

12 sound, and competent to conduct the foreclosure. More

13 than one foreclosure commissioner may be designated. If

14 a natural person is designated as foreclosure commissioner

15 or substitute foreclosure commissioner, such person shall

16 be designated by name, except that where such person is

17 designated in his or her capacity as an official or employee

18 of a government or corporate entity, such person may be

19 designated by his or her unique title or position instead

20 of by name.

21 PREREQUISITES TO FORECLOSURE

22 SEC. 846. Foreclosure by the Secretary under this

23 subtitle of a single family mortgage may be commenced,

24 as provided in section 848, upon the breach of a covenant

25 or condition in the mortgage agreement for which fore26 closure is authorized under the mortgage, except that no
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1 such foreclosure may be commenced unless any previously

2 pending proceeding, judicial or nonjudicial, separately in3 stituted by the Secretary to foreclose the mortgage other

4 than under this subtitle has been withdrawn, dismissed,

5 or otherwise terminated. No such separately instituted

6 foreclosure proceeding on the mortgage shall be instituted

7 by the Secretary during the pendency of foreclosure pursu8 ant to this subtitle. Nothing in this subtitle shall preclude

9 the Secretary from enforcing any right, other than fore10 closure, under applicable Federal or State law, including

11 any right to obtain a monetary judgment. Nothing in this

12 subtitle shall preclude the Secretary from foreclosing

13 under this subtitle where the Secretary has obtained or

14 is seeking any other remedy available pursuant to Federal

15 or State law or under the mortgage agreement, including,

16 but not limited to, the appointment of a receiver, mortga17 gee-in-possession status, or relief under an assignment of

18 rents.

19 NOTICE OF FORECLOSURE SALE

20 SEC. 847. The notice of foreclosure sale to be served

21 in accordance with this subtitle shall be subscribed with

22 the name and address of the foreclosure commissioner and

23 the date on which subscribed, and shall set forth the fol24 lowing information:
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1 (1) The names of the Secretary, the original

2 mortgagee (if other than the Secretary), and the

3 original mortgagor.

4 (2) The street address or a description of the

5 location of the security property, and a description

6 of the security property, sufficient to identify the

7 property to be sold.

8 (3) The date of the mortgage, the office in

9 which the mortgage is recorded, and the liber and

10 folio or other description of the location of recorda11 tion of the mortgage.

12 (4) The failure to make payment, including the

13 due date of the earliest installment payment remain14 ing wholly unpaid as of the date the notice is sub15 scribed, or the description of other default or de16 faults upon which foreclosure is based, and the ac17 celeration of the secured indebtedness.

18 (5) The date, time, and place of the foreclosure

19 sale.

20 (6) A statement that the foreclosure is being

21 conducted pursuant to this subtitle.

22 (7) The types of costs, if any, to be paid by the

23 purchaser upon transfer of title.

24 (8) The amount and method of deposit to be re25 quired at the foreclosure sale (except that no deposit
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1 shall be required of the Secretary), the time and

2 method of payment of the balance of the foreclosure

3 purchase price, and other appropriate terms of sale.

4 COMMENCEMENT OF FORECLOSURE

5 SEC. 848. (a) If the Secretary as holder of a single

6 family mortgage determines that the prerequisites to fore7 closure set forth in section 846 are satisfied, the Secretary

8 may request the foreclosure commissioner to commence

9 foreclosure of a single family mortgage. Upon such re10 quest, the foreclosure commissioner shall commence fore11 closure of the mortgage, by commencing service of a notice

12 of default and foreclosure sale in accordance with section

13 849.

14 (b) After commencement of a foreclosure under this

15 subtitle, the Secretary may designate a substitute fore16 closure commissioner at any time before the time of fore17 closure sale, and the foreclosure shall continue without

18 prejudice, unless the substitute commissioner, in his or her

19 sole discretion, finds that continuation of the foreclosure

20 sale will unfairly affect the interests of the mortgagor. If

21 the substitute commissioner makes such a finding, the

22 substitute commissioner shall cancel the foreclosure sale,

23 or adjourn such sale in the manner provided in section

24 851(c). Upon designation of a substitute foreclosure com25 missioner, a copy of the written notice of such designation

26 referred to in section 845 shall be served (1) by mail, as
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1 provided in such section 849 (except that the minimum

2 time periods between mailing and the date of foreclosure

3 sale prescribed in such section shall not apply), or (2) in

4 any other manner which, in the substitute commissioner’s

5 sole discretion, is conducive to achieving timely notice of

6 such substitution.

7 SERVICE OF NOTICE OF FORECLOSURE

8 SEC. 849. The foreclosure commissioner shall serve

9 the notice of foreclosure sale provided for in section 847

10 upon the following persons and in the following manner,

11 and no additional notice shall be required to be served,

12 notwithstanding any notice requirements of any State or

13 local law:

14 (1) TIMING.—At least 21 days prior to the date

15 of the foreclosure sale, the notice of foreclosure sale

16 required by section 848 of this subtitle shall be filed

17 in the manner authorized for filing a notice of an ac18 tion concerning real property according to the law of

19 the State where the security property is located or,

20 if none, in the manner authorized by section 3201

21 of title 28, United States Code.

22 (2) NOTICE BY MAIL.—The notice of fore23 closure sale shall be sent by certified or registered

24 mail, postage prepaid and return receipt requested

25 to the following:
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1 (A) The current security property owner of

2 record, as the record exists 45 days before the

3 date originally set for foreclosure sale, whether

4 or not the notice describes a sale adjourned as

5 provided in this subtitle.

6 (B) All mortgagors of record or other per7 sons who appear of record or in the mortgage

8 agreement to be liable for part or all of the

9 mortgage debt, as the record exists 45 days be10 fore the date originally set for foreclosure sale,

11 whether or not the notice describes a sale ad12 journed as provided in this subtitle, except any

13 such mortgagors or persons who have been re14 leased.

15 (C) All dwelling units in the security prop16 erty, whether or not the notice describes a sale

17 adjourned as provided in this subtitle.

18 (D) All persons holding liens of record

19 upon the security property, as the record exists

20 45 days before the date originally set for fore21 closure sale, whether or not the notice describes

22 a sale adjourned as provided in this subtitle.

23 Notice under clauses (A) and (B) of this paragraph

24 shall be mailed at least 21 days before the date of

25 foreclosure sale, and shall be mailed to the owner or
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1 mortgagor at the last known address of the owner

2 or mortgagor, or, if none, to the address of the secu3 rity property, or, at the discretion of the foreclosure

4 commissioner, to any other address believed to be

5 that of such owner or mortgagor. Notice under

6 clause (C) of this paragraph shall be mailed at least

7 21 days before the date of foreclosure sale. If the

8 names of the occupants of the security property are

9 not known to the Secretary, or the security property

10 has more than one dwelling, the notice shall be post11 ed at the security property at least 21 days prior to

12 the foreclosure sale. Notice under clause (D) of this

13 paragraph shall be mailed at least 21 days before

14 the date of foreclosure sale, and shall be mailed to

15 each such lienholder’s address as stated of record or,

16 at the discretion of the foreclosure commissioner, to

17 any other address believed to be that of such

18 lienholder. Notice by mail pursuant to this sub19 section or section 848(b) shall be deemed duly given

20 upon mailing, whether or not received by the ad21 dressee and whether or not a return receipt is re22 ceived or the letter is returned.

23 (3) PUBLICATION.—A copy of the notice of de24 fault and foreclosure sale shall be published, as pro25 vided herein, once a week during three successive
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1 calendar weeks before the sale date. Such publica2 tion shall be in a newspaper or newspapers having

3 general circulation in the county or counties in

4 which the security property being sold is located. To

5 the extent practicable, the newspaper or newspapers

6 chosen shall be a newspaper or newspapers, if any

7 is available, having circulation conducive to achiev8 ing notice of foreclosure by publication. A legal

9 newspaper that is accepted as a newspaper of legal

10 record in the county or counties in which the secu11 rity property being sold is located shall be considered

12 a newspaper having general circulation for the pur13 poses of this paragraph. Should there be no news14 paper published at least weekly which has a general

15 circulation in one of the counties in which the secu16 rity property being sold is located, copies of the no17 tice of default and foreclosure sale shall be posted at

18 the courthouse of any county or counties in which

19 the security property is located and at the place

20 where the sale is to be held at least 21 days before

21 the date of sale.

22 PRESALE REINSTATEMENT

23 SEC. 850. (a) Except as provided in sections 848(b)

24 and 851(c), the foreclosure commissioner shall withdraw

25 the security property from foreclosure and cancel the fore26 closure sale only if—
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1 (1) the Secretary so directs the commissioner

2 prior to or at the time of sale;

3 (2) the commissioner finds, upon application of

4 the mortgagor at least three days before the date of

5 sale, that the default or defaults upon which the

6 foreclosure is based did not exist at the time of serv7 ice of the notice of default and foreclosure sale; or

8 (3)(A) in the case of a foreclosure involving a

9 monetary default, there is tendered to the fore10 closure commissioner before public auction is com11 pleted the entire amount of principal and interest

12 which would be due if payments under the mortgage

13 had not been accelerated;

14 (B) in the case of a foreclosure involving a

15 nonmonetary default, the foreclosure commissioner,

16 upon application of the mortgagor before the date of

17 foreclosure sale, finds that such default is cured; and

18 (C) there is tendered to the foreclosure commis19 sioner before public auction is completed all amounts

20 due under the mortgage agreement (excluding addi21 tional amounts which would have been due if mort22 gage payments had been accelerated), all amounts of

23 expenditures secured by the mortgage, and all costs

24 of foreclosure incurred for which payment from the

25 proceeds of foreclosure is provided in section 852,
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1 except that the Secretary shall have discretion to

2 refuse to cancel a foreclosure pursuant to this para3 graph if the current mortgagor or owner of record

4 has on one or more previous occasions caused a fore5 closure of the mortgage, commenced pursuant to

6 this subtitle or otherwise, to be canceled by curing

7 a default.

8 (b) Before withdrawing the security property from

9 foreclosure in the circumstances described in subsection

10 (a)(2) or (a)(3), the foreclosure commissioner shall afford

11 the Secretary a reasonable opportunity to demonstrate

12 why the security property should not be so withdrawn.

13 (c) In any case in which a foreclosure commenced

14 under this subtitle is canceled, the mortgage shall continue

15 in effect as though acceleration had not occurred.

16 (d) If the foreclosure commissioner cancels a fore17 closure sale under this subtitle a new foreclosure may be

18 subsequently commenced as provided in this subtitle.

19 (e) The foreclosure commissioner shall file a notice

20 of cancellation in the same place and manner provided for

21 filing the notice of foreclosure sale in section 849.

22 CONDUCT OF SALE; ADJOURNMENT

23 SEC. 851. (a) Foreclosure sale pursuant to this sub24 title shall be at public auction, and shall be scheduled to

25 begin between the hours of 9 o’clock ante meridiem and

26 4 o’clock post meridiem local time. The foreclosure sale
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1 shall be held at a location specified in the notice of default

2 and foreclosure sale, which shall be a location where fore3 closure real estate auctions are customarily held in the

4 county or one of the counties in which the property to be

5 sold is located, or at a courthouse therein, or at or on

6 the property to be sold. Sale of security property situated

7 in two or more counties may be held in any one of the

8 counties in which any part of the security property is situ9 ated. The foreclosure commissioner may designate the

10 order in which multiple tracts of security are sold.

11 (b) The foreclosure commissioner shall conduct the

12 foreclosure sale in accordance with the provisions of this

13 subtitle and in a manner fair to both the mortgagor and

14 the Secretary. Written one-price sealed bids shall be ac15 cepted by the foreclosure commissioner from the Secretary

16 and other persons for entry by announcement by the com17 missioner at the sale. The Secretary and any other person

18 may bid at the foreclosure sale, including the Secretary

19 or any other person who has submitted a written one-price

20 bid. The foreclosure commissioner or any relative, related

21 business entity, or employee of such commissioner or en22 tity shall not be permitted to bid in any manner on the

23 security property subject to foreclosure sale, except that

24 the foreclosure commissioner or an auctioneer may be di25 rected by the Secretary to enter a bid on the Secretary’s
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1 behalf. The foreclosure commissioner may serve as auc2 tioneer, or, in accordance with regulations of the Sec3 retary, may employ an auctioneer to be paid from the com4 mission provided for in section 852(5).

5 (c) The foreclosure commissioner shall have discre6 tion, prior to or at the time of sale to adjourn or cancel

7 the foreclosure sale if the commissioner determines, in the

8 commissioner’s discretion, that circumstances are not con9 ducive to a sale which is fair to the mortgagor and the

10 Secretary or that additional time is necessary to determine

11 whether the security property should be withdrawn from

12 foreclosure as provided in section 850. The foreclosure

13 commissioner may adjourn a sale to a later hour the same

14 day by announcing or posting the new time and place of

15 the foreclosure sale, or may adjourn the foreclosure sale

16 for not less than 9 nor more than 31 days, in which case

17 the commissioner shall serve a notice of default and fore18 closure sale revised to recite that the foreclosure sale has

19 been adjourned to a specified date and to include any cor20 rections the foreclosure commissioner deems appropriate.

21 Such notice shall be served by publication and mailing in

22 accordance with section 849, except that publication may

23 be made on any of 3 separate days before the revised date

24 of foreclosure sale, and mailing may be made at any time
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1 at least 7 days before the date to which the foreclosure

2 sale has been adjourned.

3 (d) The foreclosure commissioner may require a bid4 der to make a cash deposit in an amount or percentage

5 set by him and stated in the notice of foreclosure sale be6 fore the bid is accepted. A successful bidder at the fore7 closure sale who fails to comply with the terms of the sale

8 may be required to forfeit the cash deposit or, at the elec9 tion of the foreclosure commissioner after consultation

10 with the Secretary, shall be liable to the agency incurred

11 by the agency as a result of such failure.

12 (e) Any foreclosure sale held in accordance with this

13 subtitle shall be conclusively presumed to have been con14 ducted in a legal, fair, and reasonable manner. The sale

15 price shall be conclusively presumed to be reasonable and

16 equal to the fair market value of the property.

17 FORECLOSURE COSTS

18 SEC. 852. The following foreclosure costs shall be

19 paid from the sale proceeds before satisfaction of any

20 claim to such sale proceeds:

21 (1) Necessary advertising costs and postage in22 curred in giving notice pursuant to sections 849 and

23 851.

24 (2) Mileage for posting notices and for the fore25 closure commissioner’s or auctioneer’s attendance at

26 the sale as provided in section 1921 of title 28,
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1 United States Code, for mileage by the most reason2 able road distance.

3 (3) Reasonable and necessary costs actually in4 curred in connection with any necessary search of

5 title and lien records.

6 (4) Necessary our-of-pocket costs incurred by

7 the foreclosure commissioner to record documents.

8 (5) A commission for the foreclosure commis9 sioner other than an employee of the United States

10 for the conduct of the foreclosure to the extent au11 thorized by the Secretary.

12 DISPOSITION OF SALE PROCEEDS

13 SEC. 853. Money realized from a foreclosure

14 sale shall be made available for obligation and ex15 penditure—

16 (1) first, to cover the costs of foreclosure pro17 vided for in section 852;

18 (2) then, to pay valid tax liens or assessments

19 if required by the notice of foreclosure sale;

20 (3) then, to pay any liens recorded before the

21 recording of the mortgage which are required to be

22 paid in conformity with the terms of sale in the no23 tice of foreclosure sale;

24 (4) then, to service charges and advancements

25 for taxes, assessments, and property insurance pre26 miums;
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1 (5) then, to the interest;

2 (6) then, to the principal balance secured by the

3 mortgage (including expenditures for the necessary

4 protection, preservation, and repair of the security

5 property as authorized under the mortgage agree6 ment and interest thereon if provided for in the

7 mortgage agreement); and

8 (7) then, to late charges.

9 Any surplus after payment of the foregoing shall be paid

10 to holders of liens recorded after the mortgage in the order

11 of priority under Federal law or the law of the State where

12 the security property is located and then to the appro13 priate mortgagor. If the person to whom such surplus is

14 to be paid cannot be located, or if the surplus available

15 is insufficient to pay all claimants and the claimants can16 not agree on the allocation of the surplus, or if any person

17 claiming an interest in the mortgage proceeds does not

18 agree that some or all of the sale proceeds should be paid

19 to a claimant as provided in this section, that part of the

20 sale proceeds in question may be deposited by the fore21 closure commissioner with an appropriate official or court

22 authorized under law to receive disputed funds in such cir23 cumstances. If such a procedure for the deposit of dis24 puted funds is not available, and the foreclosure commis25 sioner files a bill of interpleader or is sued as a stakeholder
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1 to determine entitlement to such funds, the foreclosure

2 commissioner’s necessary costs in taking or defending

3 such action shall be deductible from the disputed funds.

4 TRANSFER OF TITLE AND POSSESSION

5 SEC. 854. (a) The foreclosure commissioner shall de6 liver a deed or deeds to the purchaser or purchasers with7 out warranty or covenants to the purchaser or purchasers

8 and obtain the balance of the purchase price in accordance

9 with the terms of sale provided in the notice of default

10 and foreclosure sale. Notwithstanding State law to the

11 contrary, the commissioner’s deed shall be a conveyance

12 of property, and no judicial proceeding shall be required

13 ancillary or supplementary to the procedures provided in

14 this subtitle to assure the validity of the conveyance or

15 confirmation of such conveyance.

16 (b) A purchaser at a foreclosure sale held pursuant

17 to this subtitle shall be entitled to possession upon passage

18 of title to the mortgaged property, subject to an interest

19 or interests not barred under section 856. Any person re20 maining in possession after the passage of title shall be

21 deemed a tenant at sufferance subject to eviction under

22 local law.

23 (c) If a purchaser dies before execution and delivery

24 of the deed conveying the property to the purchaser, the

25 foreclosure commissioner shall execute and deliver the

26 deed to the representative of the purchaser’s estate upon
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1 payment of the purchase price in accordance with the

2 terms of sale. Such delivery to the representative of the

3 purchaser’s estate shall have the same effect as if accom4 plished during the lifetime of the purchaser.

5 (d) The purchaser of property under this subtitle

6 shall be presumed to be a bona fide purchaser without no7 tice of defects, if any, in the title conveyed to said pur8 chaser if the purchaser would have been considered a bona

9 fide purchaser without notice had the sale been made vol10 untarily and in person by the debtor.

11 (e) There shall be no right of redemption, or right

12 of possession based upon right of redemption, in the mort13 gagor or others subsequent to a foreclosure pursuant to

14 this subtitle. Section 204(l) of the National Housing Act

15 and section 701 of the Department of Housing and Urban

16 Development Reform Act of 1989 shall not apply to mort17 gages foreclosed under this subtitle.

18 (f) When conveyance is made to the Secretary, no tax

19 shall be imposed or collected with respect to the fore20 closure commissioner’s deed, whether as a tax upon the

21 instrument or upon the privilege of conveying or transfer22 ring title to the property. Failure to collect or pay a tax

23 of the type and under the circumstances stated in the pre24 ceding sentence shall not be grounds for refusing to record

25 such a deed, for failing to recognize such recordation as
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1 imparting notice, or for denying the enforcement of such

2 a deed and its provisions in any State or Federal court.

3 RECORD OF FORECLOSURE AND SALE

4 SEC. 855. (a) To establish a sufficient record of fore5 closure and sale, the foreclosure commissioner shall in6 clude in the recitals of the deed to the purchaser or pre7 pare an affidavit or addendum to the deed stating—

8 (1) the date, time and place of sale;

9 (2) that the mortgage was held by the Sec10 retary, the date of the mortgage, the office in which

11 the mortgage was recorded, and the liber and folio

12 or other description of the recordation of the mort13 gage;

14 (3) the particulars of the foreclosure commis15 sioner’s service of notice of default and foreclosure

16 sale in accordance with sections 849 and 851;

17 (4) the date and place of filing the notice of

18 foreclosure sale;

19 (5) that the foreclosure was conducted in ac20 cordance with the provisions of this subtitle and with

21 the terms of the notice of default and foreclosure

22 sale; and

23 (6) the sale amount.

24 (b) The statements set forth in subsection (a) shall

25 be prima facie evidence of the truth of such recitals and

26 statement of facts in any Federal or State court; and shall
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1 be a conclusive presumption in favor of bona fide pur2 chasers and encumbrancers for value without notice. En3 cumbrancers for value include liens placed by lenders who

4 provide the purchaser with purchase money in exchange

5 for a security interest in the newly-conveyed property.

6 (c) The deed executed by the foreclosure commis7 sioner, the foreclosure commissioner’s affidavit and any

8 other instruments submitted for recordation in relation to

9 the foreclosure of the security property under this subtitle

10 shall be accepted for recordation by the registrar of deeds

11 or other appropriate official of the county or counties in

12 which the security property is located upon tendering of

13 payment of the usual recording fees for such instruments

14 without regard to the compliance of those instruments

15 with local filing requirements.

16 EFFECT OF SALE

17 SEC. 856. A sale, made and conducted as prescribed

18 in this subtitle to a bona fide purchaser, shall be an entire

19 bar of all claims upon, or with respect to, the property

20 sold, of each of the following persons:

21 (1) Any person to whom the notice of fore22 closure sale was mailed as provided in this subtitle,

23 and the heir, devisee, executor, administrator, suc24 cessor or assignee claiming under any such person.
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1 (2) Any person claiming any interest in the

2 property subordinate to that of the mortgage, if such

3 person had actual knowledge of the sale.

4 (3) Each person, claiming any interest in the

5 property, whose assignment, mortgage, or other con6 veyance was not duly recorded or filed in the proper

7 place for recording or filing, or whose judgment or

8 decree was not duly docketed or filed in the proper

9 place for docketing or filing, prior to the date on

10 which the notice of sale was first served by publica11 tion, as required by section 849(2); and the execu12 tor, administrator, or assignee of such a person.

13 (4) Every other person claiming under a statu14 tory lien or encumbrance created subsequent to the

15 recording or filing of the mortgage being foreclosed,

16 attaching to the title or interest of any person des17 ignated in any of the foregoing subsections of this

18 section.

19 COMPUTATION OF TIME

20 SEC. 857. Periods of time provided for in this subtitle

21 shall be calculated in consecutive calendar days including

22 the day or days on which the actions or events occur or

23 are to occur for which the period of time is provided and

24 including the day on which an event occurs or is to occur

25 from which the period is to be calculated.
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1 SEPARABILITY

2 SEC. 858. If any clause, sentence, paragraph, or part

3 of this subtitle shall, for any reason, be adjudged by a

4 court of competent jurisdiction to be invalid or invalid as

5 applied to a class of cases, such judgment shall not affect,

6 impair, or invalidate the remainder thereof and of this

7 subtitle, but shall be confined in its operation to the

8 clause, sentence, paragraph, or part thereof directly in9 volved in the controversy in which such judgment shall

10 have been rendered.

11 DEFICIENCY JUDGMENT

12 SEC. 859. (a) IN GENERAL.—If after deducting the

13 disbursements provided for in section 853 of this subtitle,

14 the price at which the security property is sold at a fore15 closure sale is less than the unpaid balance of the debt

16 secured by the security property, resulting in a deficiency,

17 the Secretary may refer the matter to the Attorney Gen18 eral who may commence an action or actions against any

19 or all debtors to recover the deficiency, unless specifically

20 prohibited by the mortgage. The United States is also en21 titled to recover any amount authorized by section 3011

22 of title 28, United States Code, and costs of the action.

23 (b) LIMITATION.—Any action commenced to recover

24 the deficiency must be brought within 6 years of the last

25 sale of the security property.
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1 TITLE IX—MISCELLANEOUS AMENDMENTS

2 OFHEO ASSESSMENT COLLECTION DATES

3 SEC. 901. Section 1316(b) of the Housing and Com4 munity Development Act of 1992 is amended by striking

5 out paragraph (2) and inserting in lieu thereof the follow6 ing:

7 ‘‘(2) TIMING OF PAYMENT.—The annual assess8 ment shall be payable semiannually for each fiscal

9 year, on October 1st and April 1st.’’.

10 LEAD-BASED PAINT TECHNICAL ASSISTANCE

11 AMENDMENTS

12 SEC. 902. (a) Section 1011(g) of the Residential

13 Lead-Based Paint Hazard Reduction Act of 1992 is

14 amended—

15 (1) in paragraph (1)—

16 (A) first sentence, by inserting immediately

17 before the period a comma and ‘‘by providing

18 technical assistance, either directly, or indirectly

19 under contracts or otherwise’’; and

20 (B) by striking out the second sentence;

21 and

22 (2) by striking out paragraph (2) and inserting

23 in lieu thereof the following:

24 ‘‘(2) SET-ASIDE.—Of the total amount ap25 proved in appropriation Acts under subsection (p),

26 there shall be set aside to carry out this subsection
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1 $5,000,000 for fiscal year 1995 and $5,000,000 for

2 fiscal year 1996.’’.

3 (b) Section 1052 of such Act is amended by inserting

4 immediately after ‘‘other Federal agencies,’’ the following:

5 ‘‘either directly, or indirectly under contract or other6 wise,’’.

7 (c) Strike out section 1053 of such Act, and insert

8 in lieu thereof the following:

9 ‘‘SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVI10 TIES.

11 ‘‘The Secretary is authorized to use funding that may

12 be available to carry out this part to undertake, either di13 rectly, or indirectly under contract or otherwise, pursuant

14 to title V, Housing and Urban Development Act of 1970

15 (12 U.S.C. 1701z–1), such studies, tests (including but

16 not limited to pilot tests of new or revised programs), eval17 uations, demonstrations, education of the public, and

18 preparation of training materials, as are consistent with

19 the purposes of this Act.

20 ‘‘SEC. 1054. AUTHORIZATION.

21 ‘‘Of the total amount approved in appropriation Acts

22 under section 1011(p), there shall be set aside to carry

23 out this part $10,000,000 for fiscal year 1995 and

24 $10,000,000 for fiscal year 1996.’’.
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1 LEAD-BASED PAINT TARGET HOUSING HAZARD

2 REDUCTION PROGRAM

3 SEC. 903. Section 1011(p) of the Residential Lead4 Based Paint Hazard Reduction Act of 1992 is amended

5 to read as follows:

6 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—For the

7 purposes of carrying out this Act, there are authorized to

8 be appropriated $100,000,000 for fiscal year 1995 and

9 $100,000,000 for fiscal year 1996.’’.

10 HUD RESEARCH AND DEVELOPMENT

11 SEC. 904. The second sentence of section 501 of the

12 Housing and Urban Development Act of 1970 (12 U.S.C.

13 1701z–1) is amended to read as follows: ‘‘There are au14 thorized to be appropriated to carry out this title

15 $40,000,000 for fiscal year 1995 and $40,000,000 for fis16 cal year 1996.’’.

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