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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4735 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Housing Funding Flexibility 
Act of 1994''.

SEC. 2. AUTHORITY FOR PUBLIC HOUSING AGENCIES TO LEVERAGE AMOUNTS FOR 
              REPLACEMENT AND MODERNIZATION.

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