I

103D CONGRESS

2D SESSION H. R. 5245

To provide for the extension of certain programs relating to housing and

community development, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 7, 1994

Mr. GONZALEZ introduced the following bill; which was referred to the

Committee on Banking, Finance and Urban Affairs

OCTOBER 7, 1994

Committee discharged, considered, amended, and passed

A BILL

To provide for the extension of certain programs relating

to housing and community development, and for other

purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Housing Programs Ex5 tension Act of 1994’’.

6 SEC. 2. HOUSING ASSISTANCE.

7 (a) EXPIRING SECTION 8 CONTRACTS.—
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1 (1) REQUIREMENT.—Subject only to the avail2 ability of budget authority to carry out this section,

3 not later than October 1, 1995, the Secretary of

4 Housing and Urban Development shall make an

5 offer to the owner of each housing project assisted

6 under an expiring contract to extend the term of the

7 expiring contract for 24 months beyond the date of

8 the expiration of the contract.

9 (2) TERMS OF EXTENSION.—Except for terms

10 or conditions relating to the duration of the con11 tract, the terms and conditions under the extension

12 provided pursuant to this subsection of any expiring

13 contract shall be identical to the terms and condi14 tions under the expiring contract.

15 (3) DEFINITION OF EXPIRING CONTRACT.—For

16 purposes of this subsection, the term ‘‘expiring con17 tract’’ means a contract for assistance pursuant to

18 section 8(b)(2) of the United States Housing Act of

19 1937 (as such section existed before October 1,

20 1983) having a term that expires before October 1,

21 1996.

22 (4) DISPLACEMENT ASSISTANCE.—The Sec23 retary of Housing and Urban Development may

24 make available to tenants residing in units covered
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1 by an expiring contract that is not extended pursu2 ant to this subsection either—

3 (A) tenant-based assistance under section

4 8 of the United States Housing Act of 1937; or

5 (B) a unit with respect to which project6 based assistance is provided under section 8 of

7 the United States Housing Act of 1937.

8 (5) AUTHORIZATION OF APPROPRIATIONS.—

9 There are authorized to be appropriated such sums

10 as may be necessary to carry out this subsection.

11 (b) DETERMINATION OF MEDIAN INCOME.—Section

12 3(b)(2) of the United States Housing Act of 1937 (42

13 U.S.C. 1437a(b)(2)) is amended—

14 (1) in the fourth sentence—

15 (A) by striking ‘‘County’’ and inserting

16 ‘‘and Rockland Counties’’; and

17 (B) by inserting ‘‘each’’ before ‘‘such

18 county’’; and

19 (2) in the last sentence—

20 (A) by striking ‘‘County’’ the first place it

21 appears and inserting ‘‘or Rockland Counties’’;

22 and

23 (B) by striking ‘‘County’’ the second place

24 it appears and inserting ‘‘and Rockland Coun25 ties’’.
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1 (c) ELIGIBLE USES OF EMERGENCY MODERNIZA2 TION FUNDS.—Section 14(k)(1) of the United States

3 Housing Act of 1937 (42 U.S.C. 1437l(k)(1)) is amend4 ed—

5 (1) in the first sentence, by striking

6 ‘‘$75,000,000’’ and inserting ‘‘$50,000,000’’; and

7 (2) by adding at the end the following new sen8 tences: ‘‘Of the amounts reserved each year under

9 this paragraph, the Secretary shall make available to

10 the Inspector General of the Department of Housing

11 and Urban Development not more than $5,000,000

12 for costs in connection with efforts to combat violent

13 crime in public housing. Using amounts made avail14 able pursuant to the preceding sentence during fiscal

15 year 1995, the Secretary shall provide amounts in

16 such fiscal year for the continuation of the drug

17 elimination activities under Project Nos.

18 IA05PO98003004 and IA05DEP0980193.’’.

19 (d) LOW-INCOME HOUSING PRESERVATION AND

20 RESIDENT HOMEOWNERSHIP ACT.—

21 (1) ACQUISITION GRANTS.—Section 234(b) of

22 the Housing and Community Development Act of

23 1987 (12 U.S.C. 4124(b)) is amended by striking

24 ‘‘1993,’’ and all that follows through ‘‘1994,’’ and

25 inserting ‘‘1995’’.
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1 (2) TECHNICAL ASSISTANCE AND CAPACITY

2 BUILDING.—Section 257 of the Housing and Com3 munity Development Act of 1987 (12 U.S.C. 4147)

4 is amended by striking ‘‘1993,’’ and all that follows

5 through ‘‘1994,’’ and inserting ‘‘1995’’.

6 (e) USE OF SECTION 236 RENTAL ASSISTANCE

7 FUND AMOUNTS FOR FLEXIBLE SUBSIDIES.—Section

8 236(f)(3) of the National Housing Act (12 U.S.C. 1715z–

9 1(f)(3)) is amended by striking ‘‘September 30, 1994’’

10 and inserting ‘‘September 30, 1995’’.

11 (f) HOUSING COUNSELING.—

12 (1) EMERGENCY HOMEOWNERSHIP COUNSEL13 ING.—Section 106(c)(9) of the Housing and Urban

14 Development Act of 1968 (12 U.S.C. 1701x(c)(9)) is

15 amended by striking ‘‘September 30, 1994’’ and in16 serting ‘‘September 30, 1995’’.

17 (2) PREPURCHASE AND FORECLOSURE PREVEN18 TION COUNSELING DEMONSTRATION.—Section

19 106(d)(13) of the Housing and Urban Development

20 Act of 1968 (12 U.S.C. 1701x(d)(13)) is amended

21 by striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal

22 year 1995’’.

23 (g) MAJOR RECONSTRUCTION OF PUBLIC HOUSING

24 FOR DISABLED FAMILIES.—Section 5(j)(2)(G)(i) of the

25 United States Housing Act of 1937 (42 U.S.C.
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1 1437e(j)(2)(G)(i)) is amended by striking ‘‘fiscal years

2 1993 and 1994’’ and inserting ‘‘fiscal year 1995’’.

3 (h) NATIONAL HOMEOWNERSHIP FUND.—Section

4 172 of the bill, H.R. 3838 (103d Congress), as passed by

5 the House of Representatives on July 22, 1994, is hereby

6 enacted into law.

7 (i) TREATMENT OF CERTAIN PROJECTS.—

8 (1) CONVERSION OF SECTION 23 PROJECT.—

9 From amounts available for the conversion of the

10 Tamaqua Highrise project in the Borough of

11 Tamaqua, Pennsylvania, from a leased housing con12 tract under section 23 of the United States Housing

13 Act of 1937 to tenant-based assistance under section

14 8 of such Act, the Secretary of Housing and Urban

15 Development shall, to the extent such amounts are

16 made available in appropriation Acts, enter into an

17 obligation for the conversion of the project to a

18 project-based rental assistance contract under sec19 tion 8 of such Act, notwithstanding the requirement

20 for rehabilitation or the percentage limitations under

21 section 8(d)(2) of such Act.

22 (2) COMPLIANCE WITH REHABILITATION RE23 QUIREMENT.—Rehabilitation activities undertaken

24 by E.T.C. Enterprises in connection with 16 scat25 tered-site dwelling units that were rehabilitated to
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1 provide housing for low-income families and are lo2 cated in Perth Amboy, New Jersey, and rehabilita3 tion activities undertaken by Pennrose Properties in

4 connection with 40 dwelling units for senior citizens

5 in the Providence Square development located in

6 New Brunswick, New Jersey, are hereby deemed to

7 have been conducted pursuant to the approval of

8 and an agreement with the Secretary of Housing

9 and Urban Development under clauses (i) and (ii) of

10 the third sentence of section 8(d)(2)(A) of the Unit11 ed States Housing Act of 1937.

12 (3) ELIGIBILITY OF PUBLIC HOUSING FOR DEM13 OLITION.—Section 415 of the Department of Hous14 ing and Urban Development—Independent Agencies

15 Appropriations Act, 1988 (Public Law 100–202;

16 101 Stat. 1329–213), is amended by striking

17 ‘‘George Loving Place, at 3320 Rupert Street,

18 Edgar Ward Place, at 3901 Holystone, Elmer Scott

19 Place, at 2600 Morris, in Dallas, Texas, or’’.

20 SEC. 3. RURAL HOUSING.

21 (a) UNDERSERVED AREAS SET-ASIDE.—Section

22 509(f)(4)(A) of the Housing Act of 1949 (42 U.S.C.

23 1479(f)(4)(A)) is amended—
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1 (1) in the first sentence, by striking ‘‘fiscal

2 years 1993 and 1994’’ and inserting ‘‘fiscal year

3 1995’’; and

4 (2) in the second sentence, by striking ‘‘each’’.

5 (b) RURAL MULTIFAMILY RENTAL HOUSING.—Sec6 tion 515(b) of the Housing Act of 1949 (42 U.S.C.

7 1485(b)) is amended—

8 (1) by striking paragraphs (2) and (4);

9 (2) by redesignating paragraph (3) as para10 graph (4); and

11 (3) by inserting after paragraph (1) the follow12 ing new paragraphs:

13 ‘‘(2) such a loan may be made for a period of

14 up to 50 years from the making of the loan;

15 ‘‘(3) the terms and conditions of such a loan

16 shall provide for periodic payments, during the term

17 of the loan, based upon a schedule for complete am18 ortization of the loan over a 50-year period and for

19 payment of any outstanding amounts due under the

20 loan not later than the expiration of the term of the

21 loan;’’.

22 (c) RURAL RENTAL HOUSING FUNDS FOR NON23 PROFIT ENTITIES.—The first sentence of section

24 515(w)(1) of the Housing Act of 1949 (42 U.S.C.
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1 1485(w)(1)) is amended by striking ‘‘fiscal years 1993

2 and 1994’’ and inserting ‘‘fiscal year 1995’’.

3 (d) LOAN GUARANTEES FOR RURAL MULTIFAMILY

4 RENTAL HOUSING LOANS.—Section 517 of the bill, H.R.

5 3838 (103d Congress), as passed by the House of Rep6 resentatives on July 22, 1994, is hereby enacted into law.

7 (e) ELIGIBILITY OF AREA FOR RURAL HOMEOWNER8 SHIP LOANS.—Section 502 of the Housing Act of 1949

9 (42 U.S.C. 1472) is amended by adding at the end the

10 following new subsection:

11 ‘‘(i) Notwithstanding section 520, the Secretary may

12 make loans under this section for properties in the Pine

13 View West Subdivision, located in Gibsonville, North Caro14 lina, in the same manner as provided under this section

15 for properties in rural areas.’’.

16 (f) DEFINITION OF RURAL AREA.—The last sentence

17 of section 520 of the Housing Act of 1949 (42 U.S.C.

18 1490) is amended by striking ‘‘city of’’ and inserting

19 ‘‘cities of South Tucson, Arizona, and’’.

20 SEC. 4. MORTGAGE INSURANCE AND SECONDARY MORT21 GAGE MARKET PROGRAMS.

22 (a) MULTIFAMILY HOUSING FINANCE.—Section

23 542(b)(5) of the Housing and Community Development

24 Act of 1992 (12 U.S.C. 1707 note) is amended by striking

25 ‘‘and 1994’’ and inserting ‘‘, 1994, and 1995’’.
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1 (b) ASSESSMENT COLLECTION DATES FOR OFFICE

2 OF FEDERAL HOUSING ENTERPRISE OVERSIGHT.—Sec3 tion 1316(b) of the Housing and Community Development

4 Act of 1992 (12 U.S.C. 4516(b)) is amended by striking

5 paragraph (2) and inserting the following new paragraph:

6 ‘‘(2) TIMING OF PAYMENT.—The annual assess7 ment shall be payable in installments on October 1

8 and April 1 of each fiscal year.’’.

9 SEC. 5. COMMUNITY DEVELOPMENT.

10 (a) CERTAIN CDBG ASSISTANCE.—Section 916(f) of

11 the Cranston-Gonzalez National Affordable Housing Act

12 (42 U.S.C. 5306 note) is amended by striking ‘‘Act shall

13 apply only with respect to fiscal years 1991, 1992, 1993,

14 and 1994’’ and inserting ‘‘section shall not apply to fiscal

15 years after fiscal year 1995’’.

16 (b) CDBG PUBLIC SERVICES LIMITATIONS.—Section

17 105(a)(8) of the Housing and Community Development

18 Act of 1974 (42 U.S.C. 5305(a)(8)) is amended—

19 (1) by striking ‘‘and’’ after ‘‘under this para20 graph,’’;

21 (2) by striking ‘‘fiscal year 1994’’ and inserting

22 ‘‘fiscal years 1994 and 1995’’; and

23 (3) by inserting before the semicolon at the end

24 the following: ‘‘, and except that of any amount of

25 assistance under this title (including program in-
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1 come) to the Cities of Vallejo and Benecia and to

2 Napa County, in California, such cities and county

3 may use not more than 20 percent in fiscal year

4 1995 for activities under this paragraph’’.

5 (c) USE OF GRANT AMOUNTS.—

6 (1) PITTSBURGH, PENNSYLVANIA.—Notwith7 standing any other provision of law, the city of

8 Pittsburgh, Pennsylvania, may retain any amounts

9 provided under an urban development action grant

10 for Project No. B–86–AA–42–0275 and use such

11 funds for the Central Pittsburgh Plaza project, if

12 such project is commenced not later than 6 months

13 after the date of the enactment of this Act.

14 (2) WILKES-BARRE, PENNSYLVANIA.—Notwith15 standing any other provision of law, the city of

16 Wilkes-Barre, Pennsylvania, may retain any

17 amounts provided under an urban development ac18 tion grant for Project No. B–87–AA–42–1211 and

19 use such funds for the Northeastern Pennsylvania

20 Economic Development project, if such project is

21 commenced not later than 6 months after the date

22 of enactment of this Act.

23 (3) RICHMOND, VIRGINIA.—The Secretary of

24 Housing and Urban Development shall cancel the in25 debtedness of the city of Richmond, Virginia, relat-
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1 ing to the categorical program settlement grant pro2 vided to the city to settle four urban renewal pro3 grams (Project No. B–78–UR–51–0019). The city

4 of Richmond, Virginia, is hereby relieved of all liabil5 ity to the Federal Government for such grant and

6 any fees and charges payable in connection with

7 such grant.

8 (4) LOCKPORT TOWNSHIP, ILLINOIS.—The Sec9 retary of Housing and Urban Development shall

10 cancel the indebtedness of Lockport Township, Illi11 nois, relating to the public facilities loan for Project

12 No. ILL–11–PFL0112. Lockport Township, Illinois,

13 is hereby relieved of all liability to the Federal Gov14 ernment for the outstanding principal balance on

15 such loan, the amount of accrued interest on such

16 loan, and any other fees and charges payable in con17 nection with such loan.

18 (5) BUDGET COMPLIANCE.—Paragraphs (3)

19 and (4) of this subsection shall be effective only to

20 the extent, or in such amounts, as are provided in

21 appropriation Acts.

22 (d) NEW TOWNS DEMONSTRATION PROGRAM.—

23 (1) INSURANCE AUTHORITY.—The first sen24 tence of section 1104(d) of the Housing and Com25 munity Development Act of 1992 (42 U.S.C. 5318
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1 note) is amended to read as follows: ‘‘To the extent

2 provided in appropriation Acts, the Secretary shall

3 use any authority provided pursuant to section

4 531(b) of the National Housing Act to enter into

5 commitments to insure loans and mortgages under

6 this section in fiscal year 1995 with an aggregate

7 principal amount not exceeding such sums as may

8 be necessary to carry out the demonstration under

9 this title.’’.

10 (2) SECOND MORTGAGE ASSISTANCE.—Section

11 1105(e) of the Housing and Community Develop12 ment Act of 1992 (42 U.S.C. 5318 note) is amended

13 to read as follows:

14 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—

15 There are authorized to be appropriated for fiscal

16 year 1995 such sums as may be necessary for pro17 viding assistance under this section.’’.

18 (3) COMMUNITY DEVELOPMENT ASSISTANCE.—

19 Section 1106(h) of the Housing and Community De20 velopment Act of 1992 (42 U.S.C. 5318 note) is

21 amended to read as follows:

22 ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.—

23 There are authorized to be appropriated for fiscal

24 year 1995 such sums as may be necessary for assist25 ance under this section.’’.
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1 (e) ECONOMIC DEVELOPMENT GRANTS.—Section

2 108(q) of the Housing and Community Development Act

3 of 1974 is amended by adding at the end the following

4 new paragraph:

5 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—

6 Using any amounts appropriated for grants under

7 this subsection for fiscal year 1995, the Secretary

8 shall make a grant in the amount of $3,650,000 in

9 such fiscal year to the Earth Conservancy in

10 Luzerne County, Pennsylvania, which shall be used

11 for carrying out a demonstration of using innovative

12 environmental technologies to reclaim land used for

13 community and economic development purposes that

14 has been damaged by anthracite coal mining activi15 ties.’’.

16 SEC. 6. MISCELLANEOUS PROVISIONS.

17 (a) STATE AGENCIES AS SURETIES.—Section 9304

18 of title 31, United States Code, is amended by adding at

19 the end the following new subsection:

20 ‘‘(c) STATE AGENCIES.—A State agency, including

21 any financing authority established by any State, which

22 meets the requirements of paragraphs (2) and (3) of sub23 section (a) may be treated as a surety corporation for pur24 poses of this chapter. Notwithstanding any other provision

25 of law, user fees collected by the Financial Management
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1 Services incident to sections 9304 through 9309 of this

2 title shall be credited to the appropriation of that agency

3 and may be retained without fiscal year limitation to carry

4 out the provisions of such sections.’’.

5 (b) CLARIFICATION OF EFFECTIVE DATE FOR

6 AMENDMENT RELATING TO COMMERCIAL MORTGAGE RE7 LATED SECURITIES.—Section 347(d) of the Riegle Com8 munity Development and Regulatory Improvement Act of

9 1994 (Public Law 103–325; 108 Stat. 2241) is amended

10 to read as follows:

11 ‘‘(d) EFFECTIVE DATE.—

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), the amendment made by subsection (a)

14 shall take effect as of the date of the enactment of

15 the Housing Programs Extension Act of 1994.

16 ‘‘(2) NATIONAL AND INSURED STATE BANKS.—

17 The amendment made by subsection (a) shall not

18 apply with respect to national banks or, in accord19 ance with section 24 of the Federal Deposit Insur20 ance Act, insured State banks before the effective

21 date of final regulations prescribed by the Comptrol22 ler of the Currency pursuant to subsection (c).’’.

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