I

103D CONGRESS

2D SESSION H. R. 4735

To amend section 14 of the United States Housing Act of 1937 to authorize

public housing agencies to use comprehensive modernization grant

amounts to leverage amounts to replace and modernize public housing.

IN THE HOUSE OF REPRESENTATIVES

JULY 13, 1994

Mr. RUSH introduced the following bill; which was referred to the Committee

on Banking, Finance and Urban Affairs

A BILL

To amend section 14 of the United States Housing Act

of 1937 to authorize public housing agencies to use comprehensive modernization grant amounts to leverage

amounts to replace and modernize public housing.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Public Housing Fund5 ing Flexibility Act of 1994’’.
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1 SEC. 2. AUTHORITY FOR PUBLIC HOUSING AGENCIES TO

2 LEVERAGE AMOUNTS FOR REPLACEMENT

3 AND MODERNIZATION.

4 Section 14 of the United States Housing Act of 1937

5 (42 U.S.C. 1437l) is amended by adding at the end the

6 following new subsection:

7 ‘‘(q) AUTHORITY FOR PUBLIC HOUSING AGENCIES

8 TO LEVERAGE AMOUNTS FOR REPLACEMENT AND MOD9 ERNIZATION.—

10 ‘‘(1) GENERAL AUTHORIZATION.—The Sec11 retary may, upon such terms and conditions as the

12 Secretary may prescribe, authorize a public housing

13 agency (or a partnership including a public housing

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

15 to leverage amounts which shall be used for financ16 ing housing to replace existing public housing dwell17 ing units or for modernization of public housing, but

18 only if the agency submits to the Secretary a plan

19 for such leveraging that is approved by the Sec20 retary.

21 ‘‘(2) REQUIREMENTS.—The Secretary may ap22 prove a plan for leveraging under paragraph (1) only

23 if the Secretary determines that—

24 ‘‘(A) the public housing agency has the

25 ability to use the leveraged amounts effectively,

26 directly or through contract management;
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1 ‘‘(B) of any land owned by the public

2 housing agency upon the approval of the plan

3 that is subject to the plan, and any land to be

4 acquired by the agency under the plan, a por5 tion equivalent in area to the portion used

6 under the plan for providing housing to replace

7 public housing dwelling units in accordance

8 with section 18 is subject to binding covenants

9 or commitments sufficient to ensure that the

10 land will be used permanently for housing re11 served for occupancy by low- and very low-in12 come families;

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

14 under the plan complies with the modernization

15 plan submitted under this section by the public

16 housing agency and any replacement of public

17 housing dwelling units to be carried out under

18 the plan complies with the requirements of sec19 tion 18;

20 ‘‘(D) the plan provides permanent financ21 ing commitments from a sufficient number of

22 additional sources, which may include banks

23 and other conventional lenders, State housing

24 finance agencies, secondary market entities, and

25 other financial institutions;
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1 ‘‘(E) the public housing agency submitting

2 the plan has an acceptable rate of obligation of

3 assistance provided under this section; and

4 ‘‘(F) the plan complies with any other cri5 teria that the Secretary may establish.

6 ‘‘(3) OBLIGATION LIMITS.—

7 ‘‘(A) PER PHA.—The aggregate outstand8 ing principal amount leveraged under this sub9 section by a public housing agency may not at

10 any time exceed 5 times the amount of the most

11 recent grant for a fiscal year provided under

12 this section for comprehensive modernization.

13 ‘‘(B) FOR ALL PHA’S.—The aggregate out14 standing principal amount leveraged under this

15 subsection by all public housing agencies may

16 not, in any single fiscal year, exceed

17 $2,000,000,000.

18 ‘‘(4) USE OF COMPREHENSIVE MODERNIZATION

19 GRANTS AND OPERATING REVENUES.—Notwith20 standing any other provision of this title, a public

21 housing agency for which a plan is approved under

22 this subsection may use amounts provided under this

23 section to the agency for comprehensive moderniza24 tion and amounts provided under section 9 to the

25 agency for operating subsidies (including program
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1 income derived therefrom) for the payment of prin2 cipal, interest, and fees due on any loans obtained

3 pursuant to the plan.

4 ‘‘(5) REPORTS.—The Secretary shall submit a

5 report to the Congress annually regarding the activi6 ties under plans for leveraging approved under this

7 subsection and the status of loans, financing, and in8 vestments obtained under such plans.’’.

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