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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2198 Introduced in House (IH)]

  1st Session
                                H. R. 2198

To abolish the Department of Housing and Urban Development and provide 
  for reducing Federal spending for housing and community development 
  activities by consolidating and eliminating programs, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             August 4, 1995

 Mr. Brownback (for himself, Mrs. Myrick, Mr. Gutknecht, Mr. Largent, 
Mr. Armey, Mr. DeLay, Mr. Boehner, Mr. Roberts, Mr. Walker, Mr. Kasich, 
   Mr. Bliley, Mr. Solomon, Mr. Saxton, Mr. Dreier, Mr. Dornan, Mr. 
  Rohrabacher, Mr. Miller of Florida, Mr. Hoekstra, Mr. Shadegg, Mr. 
   Scarborough, Mr. Foley, Mr. Souder, Mr. Tiahrt, Mr. Chrysler, Mr. 
Christensen, Mr. Cooley, Mrs. Smith of Washington, Mr. Tate, Mr. Smith 
 of Michigan, Mr. Hefley, Mr. Hastings of Washington, Mr. Nussle, Mr. 
 Inglis of South Carolina, Mr. Norwood, Mr. Stockman, Mrs. Seastrand, 
  Mr. Talent, Mr. Sanford, Mr. Salmon, Mr. Bono, Mrs. Chenoweth, Mr. 
 McIntosh, Mr. Hostettler, Mr. Funderburk, Mr. Coburn, Mr. Graham, Mr. 
Hilleary, Mr. Hutchinson, Mr. Bass, Mr. Cunningham, Mr. Radanovich, Mr. 
   Parker, Mr. Doolittle, Mr. Herger, Mr. Kolbe, Mr. White, and Mr. 
  Hayworth) introduced the following bill; which was referred to the 
  Committee on Banking and Financial Services, and in addition to the 
   Committee on Government Reform and Oversight, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
To abolish the Department of Housing and Urban Development and provide 
  for reducing Federal spending for housing and community development 
  activities by consolidating and eliminating programs, and for other 
                               purposes.
    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 ``Housing Opportunities and 
Empowerment Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--ABOLISHMENT OF DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND 
                        DISPOSITION OF FUNCTIONS

 Subtitle A--Abolishment of Department of Housing and Urban Development

Sec. 101. Reestablishment of Department as Housing and Urban 
                            Development Programs Resolution Agency.
Sec. 102. Functions.
Sec. 103. Continuation of service of HUD officers.
Sec. 104. Reorganization.
Sec. 105. Abolishment of Resolution Agency.
Sec. 106. GAO report.
Sec. 107. Conforming amendments.
Sec. 108. Effective date.
Subtitle B--Disposition of Particular Programs, Functions, and Agencies 
             of Department of Housing and Urban Development

Sec. 121. Program transfers.
Sec. 122. Reestablishment of Office of Federal Housing Enterprise 
                            Oversight as independent office in 
                            Department of the Treasury.
Sec. 123. Termination of Government National Mortgage Association.
Sec. 124. Abolishment of Office of Public Affairs.
Sec. 125. Effective date.
                  Subtitle C--Miscellaneous Provisions

Sec. 141. References.
Sec. 142. Exercise of authorities.
Sec. 143. Savings provisions.
Sec. 144. Transfer of assets.
Sec. 145. Delegation and assignment.
Sec. 146. Authority of Office of Management and Budget with respect to 
                            functions transferred.
Sec. 147. Proposed changes in law.
Sec. 148. Definition of transfer.
Sec. 149. Definitions.
TITLE II--TENANT-BASED VOUCHERS FOR RENTAL AND HOMEOWNERSHIP ASSISTANCE

     Subtitle A--Block Grants for State Housing Voucher Assistance

Sec. 201. Federal assistance for State voucher program.
Sec. 202. Block grants.
Sec. 203. State voucher program requirements.
Sec. 204. Waiver of voucher program requirements and flexible use of 
                            grant amounts.
Sec. 205. Remedies for noncompliance.
Sec. 206. Administrative fee.
Sec. 207. Monitoring.
         Subtitle B--Federal Housing Voucher Assistance Program

Sec. 221. Program authority.
Sec. 222. Eligible families.
Sec. 223. Amount of assistance payment.
Sec. 224. Payment standard and fair market rentals.
Sec. 225. Eligible dwelling units.
Sec. 226. Rents.
Sec. 227. Leases.
Sec. 228. Preferences for assistance.
Sec. 229. Portability.
Sec. 230. Use of housing assistance for homeownership.
Sec. 231. Annual contributions contracts.
Sec. 232. Housing voucher contracts.
Sec. 233. Administrative fee.
Sec. 234. Local voucher assistance agencies.
Sec. 235. Definitions.
Subtitle C--Determination of State Allocations and Election of Federal 
                        or State Voucher Program

Sec. 251. State allocations.
Sec. 252. Availability of State allocation based on election to use 
                            Federal or State voucher program.
Subtitle D--Office of Federal Housing Voucher Assistance in Department 
                      of Health and Human Services

Sec. 261. Establishment.
Sec. 262. Voucher Administrator.
Sec. 263. Duty and authority of Voucher Administrator.
Sec. 264. Transfer of certain personnel.
Sec. 265. Reports.
Sec. 266. GAO audits.
Sec. 267. Regulations.
Sec. 268. Effective date.
                     Subtitle E--General Provisions

Sec. 281. Definitions.
Sec. 282. Maximum amount of housing assistance.
Sec. 283. Authorization of appropriations.
  TITLE III--TRANSITION PROVISIONS RELATING TO REPLACEMENT OF PUBLIC 
                 HOUSING AND ASSISTED HOUSING PROGRAMS

Sec. 301. Purpose.
          Subtitle A--Replacement of Assisted Housing Programs

Sec. 311. Termination of existing programs.
Sec. 312. Transition to voucher assistance program.
Sec. 313. Transfer of residual HUD authority to administrator of 
                            Federal Housing Voucher Assistance.
Sec. 314. Treatment of families assisted under terminated programs.
Sec. 315. Continued restrictions on use of existing public housing 
                            stock.
Sec. 316. Audit of project-based section 8 assistance contracts.
    Subtitle B--Interim Program for Public Housing Block Grants and 
                              Deregulation

Sec. 321. Immediate termination of existing public housing programs.
Sec. 322. Program authority.
Sec. 323. Strategic plan.
Sec. 324. Consolidation of funding.
Sec. 325. Public Housing Block Grant Fund.
Sec. 326. Grants.
Sec. 327. Eligible activities.
Sec. 328. Formula allocations.
Sec. 329. Program requirements and waivers.
Sec. 330. Authorization of appropriations.
                     Subtitle C--General Provisions

Sec. 341. Definitions.
     TITLE IV--BLOCK GRANTS FOR HOUSING AND COMMUNITY DEVELOPMENT 
                             OPPORTUNITIES

                    Subtitle A--Block Grants Program

Sec. 401. Purpose.
Sec. 402. General block grants.
Sec. 403. Eligible States and entitlement areas.
Sec. 404. Use of grant amounts.
Sec. 405. Block grant plan.
Sec. 406. Allocation of block grant amounts.
Subtitle B--Block Grants for Housing for Special Populations and Indian 
                                Housing

Sec. 421. Block grants for housing for special populations.
Sec. 422. Block grants for Indian housing.
        Subtitle C--General Provisions Relating to Block Grants

Sec. 431. Oversight.
Sec. 432. Remedies for noncompliance.
Sec. 433. Nondiscrimination.
Sec. 434. Definitions.
Sec. 435. Regulations.
Sec. 436. Funding.
Sec. 437. Repeals.
         Subtitle D--Housing and Community Opportunities Agency

Sec. 441. Establishment.
Sec. 442. Director.
Sec. 443. Duties.
Sec. 444. Personnel.
Sec. 445. Administrative provisions.
Sec. 446. Report.
                       Subtitle E--Effective Date

Sec. 451. Effective date.
           TITLE V--SINGLE FAMILY HOUSING MORTGAGE INSURANCE

          Subtitle A--Federal Home Mortgage Insurance Program

Sec. 501. Federal Home Mortgage Insurance Fund.
Sec. 502. Authority to enter into risk-sharing agreements for mortgage 
                            insurance coverage.
Sec. 503. Qualified mortgages.
Sec. 504. Insurance coverage.
Sec. 505. Risk-sharing agreements.
Sec. 506. Requirements for qualified mortgage insurers.
Sec. 507. Definitions.
Sec. 508. Limitation on commitments to insure mortgages.
    Subtitle B--Federal Home Mortgage Insurance Fund Administration

Sec. 531. Establishment.
Sec. 532. Fund Administrator.
Sec. 533. Duty and authority of Fund Administrator.
Sec. 534. Personnel.
Sec. 535. Reports.
Sec. 536. GAO audits and reports.
Sec. 537. Regulations.
Sec. 538. Authorization of appropriations for administrative expenses.
                   Subtitle C--Transition Provisions

Sec. 551. Prohibition of new FHA business.
Sec. 552. Repeal of FHA insurance authority.
Sec. 553. Sale of FHA assets.
Sec. 554. Transfer of remaining FHA authority to administrator of 
                            Federal Home Mortgage Insurance Fund.
Sec. 555. Definitions.
            Subtitle D--General and Miscellaneous Provisions

Sec. 571. Amendments to title 5, United States Code.
Sec. 572. Authority of Director of OFHEO to monitor safety and 
                            soundness of Fund.
Sec. 573. Definitions.
Sec. 574. Effective date.
   TITLE VI--OFFICE OF FEDERALISM IN OFFICE OF MANAGEMENT AND BUDGET

Sec. 601. Establishment.
Sec. 602. Administrator.
Sec. 603. Functions of Administrator.
Sec. 604. Authorization of appropriations.
Sec. 605. Compensation of Administrator at level III of Executive 
                            Schedule.
Sec. 606. Effective date.
TITLE I--ABOLISHMENT OF DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND 
                        DISPOSITION OF FUNCTIONS

 Subtitle A--Abolishment of Department of Housing and Urban Development

SEC. 101. REESTABLISHMENT OF DEPARTMENT AS HOUSING AND URBAN 
              DEVELOPMENT PROGRAMS RESOLUTION AGENCY.

    (a) Reestablishment of Department.--The Department of Housing and 
Urban Development is hereby redesignated as the Housing and Urban 
Development Programs Resolution Agency, which shall be an independent 
agency in the executive branch of the Government.
    (b) Resolution Administrator.--
            (1) In general.--There shall be at the head of the Agency 
        an Administrator of the Agency, who shall be appointed by the 
        President, by and with the advice and consent of the Senate. 
        The agency shall be administered under the supervision and 
        direction of the Resolution Administrator. The Resolution 
        Administrator shall receive compensation at the rate prescribed 
        for level III of the Executive Schedule under section 5314 of 
        title 5, United States Code.
            (2) Initial appointment.--Notwithstanding any other 
        provision of this title or any other law, the President may, at 
        any time after the date of the enactment of this Act, appoint 
        an individual to serve as Resolution Administrator (who may be 
        the Secretary of Housing and Urban Development), as such 
        position is established under paragraph (1). An appointment 
        under this paragraph may not be construed to affect the 
        position of Secretary of Housing and Urban Development or the 
        authority of such Secretary before the effective date under 
        section 108(a).
    (c) Duties of Resolution Administrator.--The Resolution 
Administrator shall be responsible for--
            (1) the administration and wind-up, during the wind-up 
        period (as such term is defined in section 149), of all 
        functions of the Resolution Administrator pursuant to section 
        102 and titles III and V;
            (2) the administration and wind-up, during the wind-up 
        period, of any outstanding obligations of the Federal 
        Government under any programs terminated or repealed by this 
        Act;
            (3) coordinating and carrying out, with the Administrator 
        of the Office of Federal Housing Voucher Assistance, the 
        transition under section 312; and
            (4) taking such other actions as may be necessary, before 
        the termination date under section 105(d), to wind up any 
        outstanding affairs of the Department of Housing and Urban 
        Development.

SEC. 102. FUNCTIONS.

    Except to the extent that a function is abolished or vested in 
another official or agency by this Act, the Resolution Administrator 
shall perform all functions that, immediately before the effective date 
under section 108(a), were functions of the Department of Housing and 
Urban Development (or any office of the Department) or were authorized 
to be performed by the Secretary of Housing and Urban Development or 
any other officer or employee of the Department in the capacity as such 
officer or employee.

SEC. 103. CONTINUATION OF SERVICE OF HUD OFFICERS.

    (a) Continuation of Service of Secretary.--The individual serving 
as the Secretary of Housing and Urban Development on the effective date 
under section 108(a) may act as Resolution Administrator until the date 
an individual is appointed under this title to the position of 
Resolution Administrator, or until the end of the 120-day period 
provided for in section 3348 of title 5, United States Code (relating 
to limitations on the period of time a vacancy may be filled 
temporarily), whichever is earlier.
    (b) Compensation for Continued Service.--Any person who serves as 
the Resolution Administrator under subsection (a) after the effective 
date under section 108(a) and before the first appointment of a person 
to such position after such date shall continue to be compensated for 
so serving or acting at the rate at which such person was compensated 
before such effective date.

SEC. 104. REORGANIZATION.

    The Resolution Administrator may allocate or reallocate any 
function of the Agency pursuant to this Act among the officers of the 
Agency, and may establish, consolidate, alter, or discontinue in the 
Housing and Urban Development Programs Resolution Agency any 
organizational entities that were entities of the Department of Housing 
and Urban Development, as the Resolution Administrator considers 
necessary or appropriate.

SEC. 105. ABOLISHMENT OF RESOLUTION AGENCY.

    (a) In General.--Effective on the termination date under subsection 
(d), the Housing and Urban Development Programs Resolution Agency is 
abolished.
    (b) Abolition of Functions.--Except for functions transferred or 
otherwise continued by this Act, all functions that, immediately before 
the termination date, were functions of the Housing and Urban 
Development Programs Resolution Agency are abolished effective on the 
termination date.
    (c) Plan for Winding up Affairs.--Not later than the effective date 
under section 108(a), the President shall submit to the Congress a plan 
for winding up the affairs of the Agency in accordance with this Act 
and by not later than the termination date.
    (d) Termination Date.--The termination date is September 30, 2000.

SEC. 106. GAO REPORT.

    Not later than 180 days after the date of enactment of this Act, 
the Comptroller General of the United States shall submit to the 
Congress a report which shall include recommendations for the most 
efficient means of achieving, in accordance with this Act--
            (1) the complete abolishment of the Department of Housing 
        and Urban Development; and
            (2) the termination or transfer or other continuation of 
        the functions of the Department of Housing and Urban 
        Development.

SEC. 107. CONFORMING AMENDMENTS.

    (a) Presidential Succession.--Section 19(d)(1) of title 3, United 
States Code, is amended by striking ``Secretary of Housing and Urban 
Development,''.
    (b) Executive Departments.--Section 101 of title 5, United States 
Code, is amended by striking the following item:
            ``The Department of Housing and Urban Development.''.
    (c) Secretary's Compensation.--Section 5312 of title 5, United 
States Code, is amended by striking the following item:
            ``Secretary of Housing and Urban Development.''.
    (d) Deputy Secretary's Compensation.--Section 5313 of title 5, 
United States Code, is amended by striking the following item:
            ``Deputy Secretary of Housing and Urban Development.''.
    (e) Inspector General's Compensation.--Section 5315 of title 5, 
United States Code, is amended by striking the following item:
            ``Inspector General, Department of Housing and Urban 
        Development.''.
    (f) Assistant Secretaries', General Counsel's, and CFO's 
Compensation.--Section 5315 of title 5, United States Code, is 
amended--
            (1) by striking the following item:
            ``Assistant Secretaries of Housing and Urban Development 
        (8).'';
            (2) by striking the following item:
            ``General Counsel of the Department of Housing and Urban 
        Development.''; and
            (3) by striking the following item:
            ``Chief Financial Officer, Department of Housing and Urban 
        Development.''.
    (g) Department of Housing and Urban Development Act.--Effective on 
the termination date, the Department of Housing and Urban Development 
Act (42 U.S.C. 3531 et seq.) is repealed.

SEC. 108. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this 
subtitle shall take effect, and the amendments under this subtitle 
shall be made and shall apply, on October 1, 1995.
    (b) Provisions Effective on Date of Enactment.--The following 
provisions of this subtitle shall take effect on the date of the 
enactment of this Act:
            (1) Section 101(b).
            (2) Section 105(c).
            (3) Section 106.
Subtitle B--Disposition of Particular Programs, Functions, and Agencies 
             of Department of Housing and Urban Development

SEC. 121. PROGRAM TRANSFERS.

    (a) Transfer of Functions.--The functions that, immediately before 
the effective date under section 108(a), were performed by the 
Secretary of Housing and Urban Development are hereby transferred, as 
follows:
            (1) Fair housing act.--All such functions relating to the 
        Fair Housing Act, rights guaranteed under the Fair Housing Act, 
        and the Fair Housing Assistance program under such Act (not 
        including any functions relating to the Fair Housing 
        Initiatives program under section 561 of the Housing and 
        Community Development Act of 1987), are transferred to the 
        Attorney General of the United States.
            (2) Interstate land sales full disclosure act.--All such 
        functions relating to the Interstate Land Sales Full Disclosure 
        Act are transferred to the Federal Trade Commission.
            (3) Real estate settlement procedures act of 1974.--All 
        functions relating to the Real Estate Settlement Procedures Act 
        of 1974 are transferred to the Board of Governors of the 
        Federal Reserve System.
            (4) Manufactured home standards.--All such functions 
        relating to the National Manufactured Housing Construction and 
        Safety Standards Act of 1974 are transferred to the 
        Administrator of the Rural Housing and Community Development 
        Service of the Department of Agriculture.
            (5) Lead-based paint poisoning prevention act.--All such 
        functions relating to titles III, IV, and V of the Lead-Based 
        Paint Poisoning Prevention Act are transferred to the 
        Administrator of the Environmental Protection Agency.
            (6) Residential lead-based paint hazard reduction act of 
        1992.--All such functions relating to sections 1015, 1016, 
        1017, 1018, 1051, 1052, 1053, and 1061 of the Housing and 
        Community Development Act of 1992 are transferred to the 
        Administrator of the Environmental Protection Agency.
            (7) Home mortgage disclosure act of 1975.--All such 
        functions relating to the Home Mortgage Disclosure Act of 1975 
        are transferred to the Secretary of the Treasury.
    (b) Transition Assistance.--The head of the agency or office to 
which a function is transferred under this section may, for such period 
of time as may reasonably be necessary to facilitate the orderly 
implementation of this section, utilize the services of officers, 
employees, and other personnel of the Housing and Urban Development 
Programs Resolution Agency with respect to functions transferred to the 
agency or office by this section.

SEC. 122. REESTABLISHMENT OF OFFICE OF FEDERAL HOUSING ENTERPRISE 
              OVERSIGHT AS INDEPENDENT OFFICE IN DEPARTMENT OF THE 
              TREASURY.

    (a) Reestablishment.--The Office of Federal Housing Enterprise 
Oversight of the Department of Housing and Urban Development (in this 
section referred to as the ``Office) is hereby reestablished as an 
office in the Department of the Treasury.
    (b) Continuation of Service and Compensation of Director.--The 
individual serving as the Director of the Office on the effective date 
under section 108(a) may act as Director of the Office as reestablished 
under this section for the remainder of the term for which such person 
was appointed.
    (c) Functions.--All functions relating to safety and soundness of 
the enterprises (as such term is defined in section 1303 of the Housing 
and Community Development Act of 1992) that, immediately before the 
effective date under section 108(a), were performed by the Secretary of 
Housing and Urban Development (including the functions under part 2 of 
subtitle A of title XIII of such Act, the Federal National Mortgage 
Association Charter Act, and the Federal Home Loan Mortgage Corporation 
Act) shall be functions of the Secretary of the Treasury.
    (d) Personnel.--
            (1) In general.--The personnel employed in connection with 
        the functions referred to in subsection (c) shall be personnel 
        of the Office as reestablished by this section.
            (2) Effect.--Any full-time or part-time personnel employed 
        in permanent positions shall not be separated or reduced in 
        grade or compensation because of the reestablishment of the 
        Office under this section during the 1-year period beginning on 
        the effective date under section 108(a).
    (e) Amendments to Title XIII of Housing and Community Development 
Act of 1992.--Title XIII of the Housing and Community Development Act 
of 1992 is amended--
            (1) in section 1303 (12 U.S.C. 4502)--
                    (A) in paragraphs (5) and (14), by striking 
                ``Department of Housing and Urban Development'' each 
                place it appears and inserting ``Department of the 
                Treasury''; and
                    (B) by striking paragraph (15) and inserting the 
                following new paragraph:
            ``(15) Secretary.--Except as specifically provided 
        otherwise, the term `Secretary' means the Secretary of the 
        Treasury.'';
            (2) in section 1311 (12 U.S.C. 4511)--
                    (A) by striking ``Department of Housing and Urban 
                Development'' and inserting ``Department of the 
                Treasury''; and
                    (B) by adding at the end the following new 
                sentences: ``Notwithstanding any other provision of 
                this Act, the Secretary of the Treasury may not merge 
                or consolidate the Office of Federal Housing Enterprise 
                Oversight of the Department, or any of the functions or 
                responsibilities of such Office, with any other 
                function or program administered by the Secretary. Any 
                reference in any other Federal law, any Executive 
                order, rule, regulation, or delegation of authority, or 
                any document of or pertaining to the Office of Federal 
                Housing Enterprise Oversight of the Department of 
                Housing and Urban Development (1) to such Office, is 
                deemed to refer
                 to the Office of Federal Housing Enterprise Oversight 
of the Department of the Treasury, and (2) to the Director of such 
Office or an officer of such office, is deemed to refer to the Director 
of the Office of Federal Housing Enterprise Oversight of the Department 
of the Treasury or an officer of such office.'';
            (3) in section 1315(d) (12 U.S.C. 4515(d))--
                    (A) in the subsection heading, by striking ``HUD'' 
                and inserting ``Treasury Department''; and
                    (B) by striking ``Department of Housing and Urban 
                Development'' and inserting ``Department of the 
                Treasury'';
            (4) in section 1316(g)(3) (12 U.S.C. 4516(g)(3))--
                    (A) by striking ``(A)''; and
                    (B) by striking, ``and (B)'' and all that follows 
                through ``Secretary'';
            (5) in section 1319F(2) (12 U.S.C. 4525(2)), by striking 
        ``Department of Housing and Urban Development'' and inserting 
        ``Department of the Treasury'';
            (6) in section 1319G(a) (12 U.S.C. 4526(a)), by striking 
        the last sentence; and
            (7) by striking the designation and heading for part 2 of 
        subtitle A and inserting the following:

   ``PART 2--AUTHORITY OF SECRETARY OF HOUSING AND URBAN DEVELOPMENT

``SEC. 1320. DEFINITION OF SECRETARY.

    ``For purposes of this part, the term `Secretary' means the 
Secretary of Housing and Urban Development.''.
    (f) Amendments to Title 5, United States Code.--
            (1) Compensation.--Section 5313 of title 5, United States 
        Code, is amended by striking the item relating to the Director 
        of the Office of Federal Housing Enterprise Oversight, 
        Department of Housing and Urban Development, and inserting the 
        following new item:
            ``Director of the Office of Federal Housing Enterprise 
        Oversight, Department of the Treasury.''.
            (2) Exclusion from senior executive service.--Section 
        3132(a)(1)(D) of title 5, United States Code, is amended by 
        striking ``Department of Housing and Urban Development'' and 
        inserting ``Department of the Treasury''.
    (g) Clerical Amendment.--The table of contents in section 1(b) of 
the Housing and Community Development Act of 1992 (Public Law 102-550; 
106 Stat. 3679) is amended by striking the item relating to part 2 of 
subtitle A and inserting the following new items:
   ``Part 2--Authority of Secretary of Housing and Urban Development

        ``Sec. 1320. Definition of Secretary.''.
SEC. 123. TERMINATION OF GOVERNMENT NATIONAL MORTGAGE ASSOCIATION.

    (a) Termination.--Section 302(a)(2)(A) of the National Housing Act 
(12 U.S.C. 1717(a)(2)(A)) is amended by adding at the end the following 
new sentences: ``Upon the effective date under section 125 of the 
Housing Opportunities and Empowerment Act, the body corporate described 
in this subparagraph shall cease to exist. Upon such effective date, 
any authority of the Department of Housing and Urban Development under 
this Act or any other Act to carry out duties and functions of the 
Association shall terminate. On and after such effective date, the 
Administrator of the Housing and Urban Development Programs Resolution 
Agency may exercise the authority of the Secretary of Housing and Urban 
Development to carry out duties and functions of the Association, but 
only to the extent necessary to fulfill outstanding obligations of the 
Association and windup the business of the Association (as provided in 
the plan established pursuant to section 123(b) of such Act) and only 
until such time as such authority is terminated (as provided by such 
plan). Such Administrator may not guarantee, or make any commitment to 
guarantee, any securities or notes based on or backed by mortgages or 
otherwise engage in any new business based on any authority of the 
Association.''.
    (b) Phase-Out Plan.--The Resolution Administrator shall establish a 
plan for winding up the affairs of the Government National Mortgage 
Association (in this section referred to as the ``Association''). The 
plan--
            (1) shall provide that the Association shall terminate upon 
        the effective date under section 125;
            (2) shall provide for the Resolution Administrator to 
        exercise the authority of the Secretary of Housing and Urban 
        Development to carry out duties and functions of the 
        Association, but only to the extent necessary to fulfill 
        outstanding obligations of the Association and windup the 
        business of the Association;
            (3) may provide for the Federal National Mortgage 
        Association or the Federal Home Loan Mortgage Corporation or 
        other private secondary mortgage market entities, as the 
        Secretary considers appropriate, to assume any secondary market 
        functions of the Association or similar functions;
            (4) shall include any recommendations for legislation that 
        may be necessary for carrying out the amendment made by 
        subsection (a) and the plan under this subsection; and
            (5) shall provide for any authority of the Resolution 
        Administrator under paragraph (2) to terminate as soon as 
        possible, but in no event later than the termination date.
The Resolution Administrator shall submit a copy of the plan under this 
section to the Congress not later than the expiration of the 12-month 
period beginning on the date of the enactment of this Act.

SEC. 124. ABOLISHMENT OF OFFICE OF PUBLIC AFFAIRS.

    The Office of Public Affairs of the Department of Housing and Urban 
Development is abolished and shall not be a function of the Housing and 
Urban Development Programs Resolution Agency pursuant to section 102.

SEC. 125. EFFECTIVE DATE.

    This subtitle shall take effect, and the amendments under this 
subtitle shall be made and shall apply, on the effective date specified 
in section 108(a).
                  Subtitle C--Miscellaneous Provisions

SEC. 141. REFERENCES.

    Any reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or 
pertaining to an office from which a function is transferred by this 
Act--
            (1) to the Secretary of Housing and Urban Development or an 
        officer of the Department of Housing and Urban Development, is 
        deemed to refer to the head of the department or office to 
        which such function is transferred; and
            (2) to the Department of Housing and Urban Development is 
        deemed to refer to the department or office to which such 
        function is transferred.

SEC. 142. EXERCISE OF AUTHORITIES.

    Except as otherwise provided by law, a Federal official to whom a 
function is transferred by this Act may, for purposes of performing the 
function, exercise all authorities under any other provision of law 
that were available with respect to the performance of that function to 
the official responsible for the performance of the function 
immediately before the effective date of the transfer of the function.

SEC. 143. SAVINGS PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, agreements, 
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, the Secretary of Housing and 
        Urban Development, any officer or employee of any office 
        transferred or reestablished by this Act, or any other 
        Government official, or by a court of competent jurisdiction, 
        in the performance of any function that is transferred by this 
        Act, and
            (2) that are in effect on the effective date of such 
        transfer (or become effective after such date pursuant to their 
        terms as in effect on such effective date),
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, any other authorized official, a court of competent 
jurisdiction, or operation of law.
    (b) Proceedings.--This Act shall not affect any proceedings or any 
application for any benefits, service, license, permit, certificate, or 
financial assistance pending on the date of the enactment of this Act 
before an agency or office transferred by this Act, but such 
proceedings and applications shall be continued. Orders shall be issued 
in such proceedings, appeals shall be taken therefrom, and payments 
shall be made pursuant to such orders, as if this Act had not been 
enacted, and orders issued in any such proceeding shall continue in 
effect until modified, terminated, superseded, or revoked by a duly 
authorized official, by a court of competent jurisdiction, or by 
operation of law. Nothing in this subsection shall be considered to 
prohibit the discontinuance or modification of any such proceeding 
under the same terms and conditions and to the same extent that such 
proceeding could have been discontinued or modified if this Act had not 
been enacted.
    (c) Suits.--This Act shall not affect suits commenced before the 
date of the enactment of this Act, and in all such suits, proceeding 
shall be had, appeals taken, and judgments rendered in the same manner 
and with the same effect as if this Act had not been enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Department of Housing and Urban Development 
or the Secretary of Housing and Urban Development, or by or against any 
individual in the official capacity of such individual as an officer or 
employee of an office transferred or reestablished by this Act, shall 
abate by reason of the enactment of this Act.
    (e) Continuance of Suits.--If any officer of the Department of 
Housing and Urban Development in the official capacity of such officer 
is a party to a suit with respect to the function of the officer, and 
under this Act such function is transferred to any other officer or 
office, then such suit shall be continued with the other officer or the 
head of such other office, as applicable, substituted or added as a 
party.

SEC. 144. TRANSFER OF ASSETS.

    Except as otherwise provided in this Act, so much of the personnel, 
property, records, and unexpended balances of appropriations, 
allocations, and other funds employed, used, held, available, or to be 
made available in connection with a function transferred to an official 
by this Act shall be available to the official at such time or times as 
the Director of the Office of Management and Budget directs for use in 
connection with the functions transferred.

SEC. 145. DELEGATION AND ASSIGNMENT.

    Except as otherwise provided in this Act or otherwise expressly 
prohibited by law, an official to whom functions are transferred under 
this Act (including the head of any officer to which functions are 
transferred) may delegate any of the functions so transferred to such 
officers and employees of the agency or office of such official as the 
official may designate, and may authorize successive redelegations of 
such functions as may be necessary or appropriate. No delegation of 
functions under this section or under any other provision of this Act 
shall relieve the official to whom a function is transferred under this 
Act of responsibility for the administration of the function.

SEC. 146. AUTHORITY OF OFFICE OF MANAGEMENT AND BUDGET WITH RESPECT TO 
              FUNCTIONS TRANSFERRED.

    (a) Determinations.--If necessary, the Office of Management and 
Budget shall make any determination of the functions that are 
transferred under this Act.
    (b) Incidental Transfers.--The Director of the Office of Management 
and Budget, at such time or times as the Director shall provide, may 
make such incidental dispositions of personnel, assets, liabilities, 
grants, contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available in connection 
with such functions, as may be necessary to carry out the provisions of 
this Act.
    (c) Terminations.--The Director of the Office of Management and 
Budget shall provide for the termination of the affairs of all entities 
terminated and for such further measures and dispositions as may be 
necessary to effectuate the purposes of this Act.

SEC. 147. PROPOSED CHANGES IN LAW.

    Not later than one year after the date of the enactment of this 
Act, the Director of the Office of Management and Budget shall submit 
to the Congress a description of any changes in Federal law necessary 
to reflect abolishments, transfers, reestablishments, terminations, and 
disposals under this Act.

SEC. 148. DEFINITION OF TRANSFER.

    For purposes of this title, the vesting of a function in a 
department or office pursuant to reestablishment of an office shall be 
considered to be the transfer of the function.

SEC. 149. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Function.--The term ``function'' includes any duty, 
        obligation, power, authority, responsibility, right, privilege, 
        activity, or program.
            (2) Office.--The term ``office'' includes any office, 
        administration, agency, institute, council, unit, 
        organizational entity, or component thereof.
            (3) Resolution administrator.--The term ``Resolution 
        Administrator'' means the Administrator of the Housing and 
        Urban Development Programs Resolution Agency.
            (4) Termination date.--The term ``termination date'' means 
        the termination date under section 105(d).
            (5) Wind-up period.--The term ``wind-up period'' means the 
        period beginning on the effective date under section 108(a) and 
        ending on the termination date.
TITLE II--TENANT-BASED VOUCHERS FOR RENTAL AND HOMEOWNERSHIP ASSISTANCE

     Subtitle A--Block Grants for State Housing Voucher Assistance

SEC. 201. FEDERAL ASSISTANCE FOR STATE VOUCHER PROGRAM.

    (a) Authority and Purpose.--For fiscal year 1996 and thereafter, 
the Administrator of the Federal Housing Voucher Agency (appointed 
pursuant to subtitle D) shall make assistance under this subtitle 
available to each eligible State (in the amount of the allocation 
determined under section 251 for the State) for the purpose of 
providing housing voucher assistance on behalf of low-income families 
for the rental or ownership of existing dwelling units by such 
families.
    (b) Eligible States.--For purposes of this subtitle, the term 
``eligible State'' means a State that has provided notice under section 
252.

SEC. 202. BLOCK GRANTS.

    Assistance under this subtitle for an eligible State shall be 
provided in the form of a grant to the State for a fiscal year, which 
may be used only (except as provided in section 204)--
            (1) to provide housing voucher assistance in accordance 
        with the requirements of section 203; and
            (2) to the extent authorized in section 206, for 
        administrative costs of providing such voucher assistance.

SEC. 203. STATE VOUCHER PROGRAM REQUIREMENTS.

    (a) In General.--With respect to a grant under this subtitle to an 
eligible State, housing voucher assistance in accordance with the 
requirements of this section is financial assistance that complies with 
the following requirements:
            (1) Housing use.--The assistance shall be available only to 
        cover rental or ownership expenses of a dwelling unit that is 
        the primary residence of the individual, household, or family 
        to or on behalf
         of whom the assistance is provided and is located within the 
State to which the grant is made.
            (2) Individual assistance.--The assistance shall be 
        provided to or on behalf of particular individuals, households, 
        or families who are determined to be eligible for such 
        assistance based on the income, resources, or financial need of 
        the individual, household, or family, subject to the limitation 
        under paragraphs (3) and (5).
            (3) Low-income use.--The assistance shall not be available 
        to or for any individual, household, or family whose annual 
        income exceeds the median income for the area, as such median 
        income is determined by the Voucher Administrator for purposes 
        of the Federal housing voucher assistance program under 
        subtitle B, with adjustments for smaller and larger families.
            (4) Amount of assistance.--The amount of assistance 
        provided to or on behalf of an individual, household, or family 
        shall be determined based on the income, resources, or 
        financial need of the individual, household, or family.
            (5) Duration of assistance.--Assistance may not be provided 
        for any individual, household, or family for more than a 
        specific number of months, as shall be established by the State 
        taking into consideration any limitations on the duration of 
        eligibility of individuals, households, or families for general 
        welfare assistance under any such program of the State.
            (6) Eligible housing.--The assistance may not be used for 
        the rental or occupancy of a dwelling unit that fails to comply 
        with any applicable State or local laws, standards, or codes 
        relating to housing construction or condition, or fails to 
        comply with such other requirements as the State may, in its 
        discretion, establish.
            (7) Choice of housing.--Among dwelling units for which the 
        assistance is eligible to be used, the choice of the dwelling 
        unit for which the assistance is used shall be solely within 
        the discretion of the family to whom or on behalf of whom the 
        assistance is provided.
    (b) Administration.--The provision of housing voucher assistance 
using grant amounts under this subtitle shall be administered by the 
eligible State receiving the grant, a political subdivision of the 
State, or any other public or private entity selected or authorized by 
the State.

SEC. 204. WAIVER OF VOUCHER PROGRAM REQUIREMENTS AND FLEXIBLE USE OF 
              GRANT AMOUNTS.

    (a) In General.--Pursuant to a request by a State that meets the 
requirements under this section, the Voucher Administrator shall waive 
the requirements of this subtitle requiring use of grant amounts under 
this subtitle for voucher assistance and authorize the State to use 
such amounts for any affordable housing activities under section 
404(e), subject to the provisions of subsections (g), (h), and (i) of 
section 404. A waiver under this section shall be effective for the 
first fiscal year commencing after the request is approved and each 
fiscal year thereafter.
    (b) Consistency With State Welfare Program.--Affordable housing 
activities conducted with grant amounts under this subtitle pursuant to 
a waiver under this section for a State shall, to the extent the State 
determines reasonable and practicable, be consistent with the purposes 
of and requirements under the general welfare assistance program of the 
State, including purposes and requirements to engage in work or 
training and providing for duration of eligibility.
    (c) Waiver Request.--A request for a waiver under this section for 
a State shall--
            (1) be made in writing;
            (2) be signed by the chief executive officer of the State;
            (3) describe how the use of the grant amounts will comply 
        with the requirement under subsection (b);
            (4) include a certification that grant amounts made 
        available to the State under this subtitle will be used in 
        compliance with subsection (a); and
            (5) include a certification that a plan for the use of any 
        grant amounts will be made publicly available prior to any use 
        of such amounts.
    (d) Standard for Waiver.--The Voucher Administrator may not 
disapprove a request for a waiver unless--
            (1) the request does not comply with the requirements under 
        subsection (c); or
            (2) the Voucher Administrator determines that the 
        description under subsection (c)(3) evidences an unreasonable 
        inconsistency between the use of the grant amounts and the 
        purposes of and requirements under the general welfare 
        assistance program of the State.
In disapproving a request for a waiver under this section, the 
Administrator shall inform the State of the reasons for the 
disapproval, and such disapproval shall not affect the consideration of 
any subsequent request by a State for a waiver.
    (e) Prohibition Against Revoking Waiver.--Once the Voucher 
Administrator grants a waiver under this section, the Voucher 
Administrator may not subsequently repeal, revoke, waive, annul, or 
otherwise limit or nullify the waiver. This subsection shall not affect 
the authority of the Voucher Administrator to take action under section 
205.

SEC. 205. REMEDIES FOR NONCOMPLIANCE.

    (a) Reduction or Termination of Assistance.--If the Voucher 
Administrator finds on the record after opportunity for an agency 
hearing that a State receiving a grant under this subtitle has failed 
to comply substantially with any provision of this subtitle, the 
Voucher Administrator shall (notwithstanding section 201(a))--
            (1) terminate payments under this subtitle to the State; or
            (2) reduce payments under this subtitle to the State by an 
        amount equal to the amount of such payments that were not 
        expended in accordance with this subtitle.
    (b) Resumption of Assistance.--If the Voucher Administrator takes 
action under subsection (a) with respect to a State, the Voucher 
Administrator shall resume payments of assistance under this subtitle 
to the State at such time that the Voucher Administrator determines the 
State has or will comply with the provisions of this subtitle.
    (c) Civil Action.--
            (1) Referral.--In lieu of, or in addition to, any action 
        authorized by subsection (a), if the Voucher Administrator has 
        reason to believe that a State receiving assistance under this 
        subtitle has failed to comply substantially with any provision 
        of this subtitle, the Voucher Administrator may refer the 
        matter to the Attorney General of the United States with a 
        recommendation that an appropriate civil action be instituted.
            (2) Action.--Upon such a referral the Attorney General may 
        bring a civil action in any United States district court having 
        venue thereof for such relief as may be appropriate, including 
        an action to recover the amount of the assistance furnished 
        under this subtitle which was not expended in accordance with 
        this subtitle, or for mandatory or injunctive relief.
    (d) Civil Action to Review of Remedial Actions.--Any State that 
receives notice under subsection (a) of the termination or reduction of 
payments under this subtitle may, within 60 days after receiving such 
notice, file with the United States Court of Appeals for the circuit in 
which such State is located, or in the United States Court of Appeals 
for the District of Columbia, a petition for review of the Voucher 
Administrator's action. The petitioner shall forthwith transmit copies 
of the petition to the Voucher Administrator and the Attorney General 
of the United States, who shall represent the Voucher Administrator in 
the litigation.

SEC. 206. ADMINISTRATIVE FEE.

    (a) Establishment.--The Voucher Administrator shall establish a fee 
for the costs incurred by an eligible State in administering the 
provision of housing voucher assistance in accordance with the 
requirements of section 203. From any amounts made available in a grant 
under this subtitle for a fiscal year, the State may use an amount not 
exceeding the fee for costs of administering such housing voucher 
assistance.
    (b) Limitation.--A State that receives a grant under this subtitle 
for a fiscal year may not use such grant amounts for any costs (for the 
fiscal year) of administering the State program for housing voucher 
assistance in an amount that exceeds the administrative fee under this 
section for the State.
    (c) Amount.--The amount of the administrative fee under subsection 
(a) for a State for a fiscal year shall be an amount, determined by the 
Voucher Administrator, to be equivalent to the aggregate of the amounts 
of administrative fees that would have been determined under section 
233 for local voucher assistance agencies in the State if the amount 
allocated for the State under section 251 were provided for assistance 
under subtitle B.

SEC. 207. MONITORING.

    The Voucher Administrator may require States receiving assistance 
under this subtitle in any fiscal year to report to the Administrator 
regarding the use of such amounts.

         Subtitle B--Federal Housing Voucher Assistance Program

SEC. 221. PROGRAM AUTHORITY.

    For fiscal years 1996 and thereafter, the Voucher Administrator 
shall carry out a program under this subtitle in the States that have 
not provided notice under section 252, to provide housing assistance 
payments on a monthly basis, on behalf of low-income families, to cover 
costs incurred by such families in renting or owning existing dwelling 
units.

SEC. 222. ELIGIBLE FAMILIES.

    (a) Low-Income and Eligible Housing Requirements.--Housing 
assistance under this subtitle may be provided only on behalf of 
families who are low-income families at the time that such assistance 
is made available for the families and only for the rental or ownership 
of eligible dwelling units by such families.
    (b) Determination of Income Eligibility.--The local voucher 
assistance agency providing housing assistance under this subtitle 
shall be responsible for determining the eligibility of a family for 
housing assistance and selecting the family as an assisted family. The 
Voucher Administrator shall require each local voucher assistance 
agency to issue each family selected as an assisted family a voucher, 
which shall be a document that evidences such selection and the 
commitment of the agency to provide housing assistance on behalf of the 
family and that states the terms and conditions of the housing 
assistance to be provided on behalf of the family.
    (c) Income Reviews.--Each local voucher assistance agency shall 
conduct annual reviews of the incomes of the families assisted under 
this subtitle by the agency to determine eligibility for such 
assistance and the appropriate amount of such assistance.
    (d) Duration of Assistance.--
            (1) 5-year limitation.--Except as provided in paragraph 
        (3), a family may not be provided housing assistance under this 
        title for more than 60 months, regardless of whether such 
        months of assistance are consecutive or not.
            (2) Counting.--For purposes of this section, the number of 
        months that a family shall be considered to previously have 
        been provided assistance under this title shall be equal to the 
        number of months that the longest-assisted family member 
        resided (for any portion of a month) in a household assisted 
        under this title at a time when such member was 18 years of age 
        or older.
            (3) Exemption of elderly and disabled families.--The 
        limitation under paragraph (1) shall not apply to--
                    (A) elderly families and disabled families; and
                    (B) other elderly persons and persons with 
                disabilities, as the Voucher Administrator may provide, 
                except that such exceptions shall be designed to ensure 
                that the benefit of the exceptions are derived 
                primarily by elderly persons and persons with 
                disabilities and not by nonelderly and nondisabled 
                members of a household who are not essential to their 
                care or well-being.
            (4) Longest-assisted family member.--For purposes of 
        paragraph (2), the term ``longest-assisted family member'' 
        means, with respect to a family, the member of the family who 
        has resided (for any portion of a month) in a household 
        assisted under this title for more months than any other member 
        of the family.

SEC. 223. AMOUNT OF ASSISTANCE PAYMENT.

    (a) In General.--Except as provided in subsection (c), the amount 
of the monthly assistance payment on behalf of family renting or owning 
an eligible dwelling unit shall be the amount by which (1) the payment 
standard established under section 224 for a dwelling unit of the 
applicable size and located in the area in which the family resides, 
exceeds (2) 30 percent of the monthly adjusted income of the family.
    (b) Exclusion of Equity From Income.--In determining the monthly 
assistance payment for a family on behalf of whom housing assistance is 
provided under section 230, no amount imputed from the equity of the 
family in such dwelling unit may be included in the income of the 
family.
    (c) Limitations To Prevent Excessive Assistance Payments.--The 
amount of the monthly assistance payment on behalf of a family may not 
in any case exceed--
            (1) for any family for whom 30 percent of the adjusted 
        income of the family exceeds the rent for the dwelling unit of 
        the family (or the monthly homeownership expenses for the 
        dwelling unit owned by 1 or more members of the family), 50 
        percent of the difference between the payment standard 
        applicable to the dwelling unit and the actual rent charged by 
        the owner for the assisted dwelling unit;
            (2) for any family renting an eligible dwelling unit using 
        housing assistance, the amount by which the rent for the 
        dwelling unit (including the amount allowed for utilities in 
        the case of a unit with separate utility metering) exceeds 10 
        percent of the monthly income of the family; or
            (3) for any family residing in a dwelling unit owned by 1 
        or more members of the family, the amount by which the monthly 
        homeownership expenses, as determined in accordance with 
        requirements established by the Voucher Administrator, exceed 
        10 percent of the monthly income of the family.
    (d) Return of Certain Savings to Federal Treasury.--Any local 
voucher assistance agency that makes assistance payments in a fiscal 
year on behalf of a family described in subsection (c)(1) shall reserve 
from amounts made available to the agency for such year an amount equal 
to 50 percent of the difference referred to in such subsection. The 
Voucher Administrator shall, at the end of such fiscal year, recapture 
any amounts so reserved and such amounts shall be covered into the 
General Fund of the Treasury of the United States.

SEC. 224. PAYMENT STANDARD AND FAIR MARKET RENTALS.

    (a) Establishment.--The amount of housing assistance under this 
subtitle to be provided monthly on behalf of low-income families shall 
be determined using payment standards under this section. The payment 
standards shall be based on fair market rentals established under 
subsection (b) and shall be established by housing market area for 
various sizes and types of existing rental dwelling units.
    (b) Fair Market Rentals.--
            (1) Establishment.--The Voucher Administrator shall provide 
        for an independent entity to establish fair market rentals, by 
        housing market area, for various sizes and types of existing 
        rental dwelling units that are eligible dwelling units (as such 
        term is defined in section 225(b)). For a market area, the fair 
        market rental for a dwelling unit of a particular size and type 
        in the market area shall be a dollar amount that reflects the 
        rental amount for a standard quality rental unit of such size 
        and type in the market area that is an eligible dwelling unit.
            (2) Annual adjustment.--The Voucher Administrator shall 
        provide for the independent entity responsible for establishing 
        fair market rentals to annually adjust each fair market rental 
        in effect under this subsection, to be effective on October 1, 
        to the extent that changes in rents for existing rental 
        dwelling units of various sizes and types in the market area 
        require such adjustment for continued compliance with the 
        requirements of paragraph (1). Any adjustments shall be based 
        on the most recent data available trended so the payment 
        standards will be current for the year to which they apply.
            (3) Effectiveness.--The Voucher Administrator shall cause 
        to be published in the Federal Register any proposed fair 
        market rentals or adjustments in a manner to provide reasonable 
        time for public comment to the independent entity establishing 
        such fair market rentals. The proposed fair market rentals 
        shall become effective upon the date of publication in final 
        form in the Federal Register.

SEC. 225. ELIGIBLE DWELLING UNITS.

    (a) Selection by Family.--The determination of the eligible 
dwelling unit in which an assisted family resides and for which housing 
assistance is provided under this subtitle shall be made solely by the 
assisted family.
    (b) Definition.--For purposes of this subtitle, the term ``eligible 
dwelling unit'' means a dwelling unit that complies with any applicable 
State or local laws, regulations, standards, or codes relating to 
housing or property construction or condition.

SEC. 226. RENTS.

    (a) Reasonableness and Negotiation.--The rents charged for eligible 
dwelling units for which housing assistance is provided under this 
title shall be--
            (1) reasonable, in the determination of the applicable 
        local voucher assistance agency, in comparison with rents 
        charged for comparable units in the private unassisted market; 
        and
            (2) established pursuant to negotiation and agreement 
        between the assisted family and the owner of the dwelling unit.
    (b) Review of Rents.--To determine whether the rent (or any rent 
increase) requested by an owner is reasonable for purposes of 
subsection (a)(1), a local voucher assistance agency shall review all 
rents for dwelling units under consideration by families on behalf of 
whom housing assistance is provided by the agency (or all rent 
increases for units under lease by families so assisted). If the local 
voucher assistance agency determines that the rent (or rent increase) 
for a unit is not reasonable, the agency may disapprove a lease for 
such unit.
    (c) Negotiation.--A local voucher assistance agency shall, at the 
request of a family on behalf of whom housing assistance is provided, 
assist the family in negotiating a reasonable rent with an owner of a 
rental dwelling unit.

SEC. 227. LEASES.

    Housing assistance payments may be made for the rental of an 
eligible dwelling unit by an eligible family only pursuant to a lease 
between the family and the owner of the dwelling unit that complies 
with any applicable State or local laws, regulations, standards, or 
codes relating to leases for rental of residential dwelling units.

SEC. 228. PREFERENCES FOR ASSISTANCE.

    A local voucher assistance agency may carry out, in a fiscal year, 
a system for selecting eligible families to be assisted families that 
provides preference for such selection to families having certain 
characteristics that exhibit a particular need or exigency for housing 
assistance. Assistance may not be provided pursuant to any preferences 
established pursuant to this section until assistance is first made 
available pursuant to any requirements and preferences under subtitle A 
of title III.

SEC. 229. PORTABILITY.

    (a) Authority.--Except as provided in subsection (b), any assisted 
family who moves to an eligible dwelling unit located within the same 
State, or the same or a contiguous metropolitan statistical area, as 
the metropolitan statistical area within which is located the area of 
jurisdiction of the local voucher assistance agency approving the 
assistance for the family, may use such assistance to rent the eligible 
dwelling unit.
    (b) Required Minimum Residency.--Any family not living within the 
jurisdiction of a local voucher assistance agency at the time that the 
family applies for housing assistance from the agency shall, during the 
12-month period beginning upon the provision of housing assistance on 
behalf of the family, use such assistance to rent an eligible dwelling 
unit located within the jurisdiction served by the local voucher 
assistance agency.
    (c) Administration.--The local voucher assistance agency having 
authority with respect to the dwelling unit to which a family moves 
under this section shall have the responsibility of carrying out the 
provisions of this section with respect to the family. If no local 
voucher assistance agency has authority with respect to the dwelling 
unit to which a family moves under this section, the local voucher 
assistance agency approving the assistance shall have such 
responsibility.
SEC. 230. USE OF HOUSING ASSISTANCE FOR HOMEOWNERSHIP.

    (a) Requirements for Homeownership Use.--An assisted family may use 
the housing assistance under this subtitle for costs of occupying a 
dwelling owned by one or more members of the family only if the 
family--
            (1) is a first-time homeowner;
            (2) demonstrates to the satisfaction of the local voucher 
        assistance agency that the family has income from employment or 
        other sources (other than public assistance), as determined in 
        accordance with requirements of the Voucher Administrator, that 
        is not less than an amount established for purposes of this 
        subsection by the local voucher assistance agency (or such 
        other amount as may be established by the Voucher 
        Administrator);
            (3) except as provided by the Voucher Administrator, 
        demonstrates at the time the family initially receives housing 
        assistance that 1 or more adult members of the family have 
        achieved employment for the period as the Voucher Administrator 
        shall require; and
            (4) meets any other initial or continuing requirements 
        established by the local voucher assistance agency in 
        accordance with requirements established by the Voucher 
        Administrator.
    (b) Recapture of Certain Amounts.--Upon the sale, by an assisted 
family, of a dwelling unit for which housing assistance is used 
pursuant to this section, the Voucher Administrator shall recapture 
from any net proceeds of the sale any amount of additional assistance 
(as determined in accordance with requirements established by the 
Voucher Administrator) paid to or on behalf of the assisted family as a 
result of section 223(b).
    (c) Downpayment Requirement.--A local voucher assistance agency 
providing housing assistance for an assisted family that is used 
pursuant to this section shall ensure that the family provides from its 
own resources not less than 80 percent of any downpayment in connection 
with a loan made for the purchase of the dwelling for which the 
assistance is used. Not more than 20 percent of the downpayment may be 
provided from other sources, such as from nonprofit entities and 
programs of States and units of general local government.
    (d) Ineligibility Under Other Programs.--Housing assistance may not 
be provided pursuant to this section on behalf of a family at any time 
during which assistance is being provided for the family under any 
other Federal program for homeownership assistance, which shall include 
assistance under subtitle B of title III of this Act, section 502 of 
the Housing Act of 1949, and such other programs as the Voucher 
Administrator may identify.
    (e) Inapplicability of Certain Provisions.--Housing assistance 
provided pursuant to this section shall not be subject to the 
requirements of any other provisions of this subtitle that are 
inconsistent with the provisions of this section.
    (f) Default.--
            (1) Prohibition of subsequent homeownership assistance.--An 
        assisted family using housing assistance pursuant to this 
        section who defaults under the mortgage for the dwelling 
        assisted may not receive assistance under this section for 
        occupancy of any other dwelling owned by one or more members of 
        the family.
            (2) Reversion of assistance to rental status.--If an 
        assisted family using housing assistance pursuant to this 
        section defaults under a mortgage on the dwelling assisted, the 
        local voucher assistance agency may not continue to provide 
        housing assistance under this subtitle on behalf of the family 
        for rental of a dwelling unit unless the family complies with 
        requirements established by the Voucher Administrator. In the 
        case of a mortgage insured under the National Housing Act or 
        title IV of this Act, such requirements shall consist of 
        transferring to the Voucher Administrator marketable title to 
        the dwelling, and (B) moving from the dwelling within the 
        period established or approved by the Voucher Administrator.
    (g) Definition of First-Time Homeowner.--For purposes of this 
section, the term ``first-time homeowner'' means--
            (1) a family, no member of which has had a present 
        ownership interest in a principal residence during the 3 years 
        preceding the date on which the housing assistance pursuant to 
        this section is initially provided on behalf of the family; and
            (2) any other family, as the Voucher Administrator may 
        prescribe.

SEC. 231. ANNUAL CONTRIBUTIONS CONTRACTS.

    (a) In General.--To the extent that amounts to carry out this 
subtitle are made available for a fiscal year, the Voucher 
Administrator shall enter into annual contributions contracts under 
this section with voucher assistance agencies in States that have not 
provided notice under section 252, under which--
            (1) the local voucher assistance agency agrees to 
        administer the provision of housing assistance in the 
        jurisdiction of operation of the agency during such fiscal year 
        in accordance with the provisions of this subtitle; and
            (2) the Voucher Administrator agrees to make amounts for 
        the fiscal year available to the local voucher assistance 
        agency for providing housing assistance under this subtitle in 
        such fiscal year and, to the extent authorized in section 233, 
        for costs of administering such assistance.
    (b) Annual Obligation of Authority.--An annual contributions 
contract shall be for a single fiscal year and shall provide amounts 
for housing assistance to fund vouchers for a 1-year period, but 
amounts received under an annual contributions contract may be expended 
by the local voucher assistance agency during any year.

SEC. 232. HOUSING VOUCHER CONTRACTS.

    (a) In General.--To provide housing assistance under this subtitle 
on behalf of an assisted family using amounts made available to a local 
voucher assistance agency under an annual contributions contract, the 
agency shall enter into a housing voucher contract under this section 
on behalf of the assisted family under which--
            (1) the owner of an eligible dwelling unit agree to lease 
        the unit to the specific assisted family; and
            (2) the local voucher assistance agency agrees to make 
        housing assistance payments to the owner of the dwelling unit 
        on behalf of the assisted family.
    (b) Term.--The term of a housing voucher contract entered into by a 
local voucher assistance agency and the owner of an eligible dwelling 
unit may not exceed one year and if the lease for the dwelling unit 
entered into by the assisted family and the owner does not exceed one 
year, the term of the housing voucher contract shall run concurrently 
with the term of the lease.
    (c) Prohibition of Payment for Vacant Units.--Each housing voucher 
contract shall provide that if the assisted family under the contract 
vacates the dwelling unit for which housing assistance payments are 
made under the contract before the expiration of the lease term, the 
local voucher assistance agency may not make any monthly assistance 
payment with respect to the unit for any month commencing after the 
month during which the unit was vacated.
    (d) Other Provisions.--Each housing voucher contract shall contain 
such other provisions as the Voucher Administrator may require and may 
provide for the local voucher assistance agency and the owner to carry 
out such other appropriate terms and conditions as may be mutually 
agreed to by them.

SEC. 233. ADMINISTRATIVE FEE.

    (a) Establishment.--The Voucher Administrator shall establish a fee 
for the costs incurred by voucher assistance agencies in administering 
the program for housing assistance under this subtitle. From any 
amounts made available to a local voucher assistance agency for a 
fiscal year to carry out this subtitle, the agency may use an amount 
not exceeding the fee for costs of administering the program under this 
subtitle.
    (b) Amount.--The amount of the administrative fee under subsection 
(a) for each month for which a dwelling unit is covered by a housing 
voucher contract shall be 7.2 percent of the payment standard 
established under section 224 for a 2-bedroom rental dwelling unit in 
the housing market area of the local voucher assistance agency. The 
Voucher Administrator may increase the fee if necessary to reflect the 
higher costs of administering small programs and programs operating 
over large geographic areas.

SEC. 234. LOCAL VOUCHER ASSISTANCE AGENCIES.

    (a) Requirements.--Except as provided under section 312(i), an 
entity shall be considered a local voucher assistance agency for 
purposes of this subtitle only if--
            (1) the entity is authorized by a State, county, 
        municipality, or other governmental body or public entity to 
        administer the provision of housing assistance under this 
        subtitle within an area subject to the governance of such 
        governmental body or public entity; and
            (2) such entity or the governmental body or public entity 
        submits to the Voucher Administrator appropriate evidence of 
        such authority.
A private entity or contractor, a tenant management corporation, or any 
entity acting as a public housing agency for purposes of the United 
States Housing Act of 1937, may be a local voucher assistance agency 
for purposes of this subtitle, to the extent that such entity meets the 
requirements of this subsection.
    (b) Federal Contractors.--For any area for which no entity 
qualifies under subsection (a) as a local voucher assistance agency, 
the Voucher Administrator may enter into a contract with an appropriate 
nonprofit or for-profit organization to act as a local voucher 
assistance agency for the area. Such a contract shall define the area 
in which the contractor shall operate as a local voucher assistance 
agency, provide for such monitoring and oversight of contractor as the 
Voucher Administrator considers appropriate, and provide for the 
immediate termination of the contract upon the effective date of any 
notice under section 252 by the State within which such area is 
located.

SEC. 235. DEFINITIONS.

    For purposes of this subtitle, the following definitions shall 
apply:
            (1) Adjusted income.--The term ``adjusted income'' means 
        the income which remains after excluding--
                    (A) $480 for each member of the family residing in 
                the household (other than the head of the household or 
                spouse) who is--
                            (i) under 18 years of age; or
                            (ii) 18 years of age or older and is a 
                        person with disabilities or a full-time 
                        student;
                    (B) $400 for any elderly or disabled family;
                    (C) the amount by which 3 percent of annual family 
                income is exceeded by the sum of--
                            (i) any medical expenses for any elderly or 
                        disabled family; and
                            (ii) any reasonable attendant care and 
                        auxiliary apparatus expenses for each family 
                        member who is a person with disabilities, to 
                        the extent necessary to enable any member of 
                        such family (including such member who is a 
                        person with disabilities) to be employed; and
                    (D) child care expenses to the extent necessary to 
                enable another member of the family to be employed or 
                to further his or her education.
            (2) Annual contributions contract.--The term ``annual 
        contributions contract'' means a contract under section 231 
        between the Voucher Administrator and a local voucher 
        assistance agency.
            (3) Assisted family.--The term ``assisted family'' means a 
        family on behalf of whom housing assistance is provided under 
        this subtitle or that has been determined by a local voucher 
        assistance agency to be an eligible family and issued a 
        voucher.
            (4) Dwelling unit.--The term ``dwelling unit'' includes a 
        single family home and a residential property in which some or 
        all of the dwelling units do not contain bathroom or kitchen 
        facilities.
            (5) Elderly families and disabled families.--The terms 
        ``elderly families'' and ``disabled families'' mean families 
        whose heads (or their spouses), or whose sole members, are 
        elderly or persons with disabilities, respectively. The terms 
        include 2 or more elderly persons or persons with disabilities 
        living together, and 1 or more such persons living with 1 or 
        more persons determined under the regulations of the Voucher 
        Administrator to be essential to their care or well-being.
            (6) Elderly person.--The term ``elderly person'' means a 
        person who is at least 62 years of age.
            (7) Families.--The term ``family'' includes a family that 
        consists of a single person.
            (8) Housing assistance.--The term ``housing assistance'' 
        means financial assistance under this subtitle on behalf of an 
        assisted family.
            (9) Housing voucher contract.--The term ``housing voucher 
        contract'' means a contract under section 232 between a local 
        voucher assistance agency and an owner of an eligible dwelling 
        unit.
            (10) Local voucher assistance agency.--The term ``local 
        voucher assistance agency'' means an entity that meets the 
        requirements of section 234(a) or that has entered into a 
        contract with the Voucher Administrator under section 234(b). 
        The term does not include any Indian housing authority.
            (11) Low-income family.--The term ``low-income family'' 
        means a family whose income does not exceed 80 percent of the 
        median income for the area, as determined by the Voucher 
        Administrator with adjustments for smaller and larger families, 
        except that the Voucher Administrator may establish income 
        ceilings higher or lower than 80 percent of the median for the 
        area on the basis of the Voucher Administrator's findings that 
        such variations are necessary because of prevailing levels of 
        construction costs or unusually high or low family incomes.
            (12) Owner.--The term ``owner'' means, with respect to a 
        dwelling unit, any private person or entity, including a 
        cooperative, an agency of the Federal Government, or a local 
        voucher assistance agency, having the legal right to lease or 
        sublease the dwelling unit.
            (13) Person with disabilities.--The term ``person with 
        disabilities'' means a person who--
                    (A) has a disability as defined in section 223 of 
                the Social Security Act,
                    (B) is determined, pursuant to regulations issued 
                by the Voucher Administrator, to have a physical, 
                mental, or emotional impairment which (i) is expected 
                to be of long-continued and indefinite duration, (ii) 
                substantially impedes his or her ability to live 
                independently, and (iii) is of such a nature that such 
                ability could be improved by more suitable housing 
                conditions, or
                    (C) has a developmental disability as defined in 
                section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act.
        Such term shall not exclude persons who have the disease of 
        acquired immunodeficiency syndrome or any conditions arising 
        from the etiologic agent for acquired immunodeficiency 
        syndrome.
            (14) Rent and rental.--The terms ``rent'' and ``rental'' 
        mean, with respect to members of a cooperative, the charges 
        under the occupancy agreements between such members and the 
        cooperative.
            (15) Tenant management corporation.--The term ``tenant 
        management corporation'' means a corporation that--
                    (A) is established--
                            (i) for the purpose of managing a public 
                        housing project (or projects) assisted under 
                        the United States Housing Act of 1937 or 
                        subtitle B of title III; and
                            (ii) by the tenant organization or resident 
                        council (or such organizations or councils) for 
                        the project (or projects);
                    (B) is nonprofit in character;
                    (C) is organized under the laws of the State in 
                which the projects are located;
                    (D) has an elected board of directors, which is 
                required at all times to include representatives of 
                each tenant organization or resident council involved 
                in establishing the corporation;
                    (E) has as its sole voting members residents of the 
                projects managed by the corporation; and
                    (F) is approved by the resident council for (or 
                councils) for the project (or projects) or, if a 
                project has no council, by a majority of the households 
                of the project.
            (16) Voucher.--The term ``voucher'' means a document 
        described in section 222(b).

Subtitle C--Determination of State Allocations and Election of Federal 
                        or State Voucher Program

SEC. 251. STATE ALLOCATIONS.

    (a) In General.--For fiscal year 1996 and each fiscal year 
thereafter, the Voucher Administrator shall allocate among the States 
any amounts appropriated to carry out this title for such fiscal year.
    (b) Limit on Assisted Families Per State.--In allocating such 
amounts, the Voucher Administrator shall determine a maximum limit of 
assisted families for each State by application of the formula 
established under subsection (c) of this section to the maximum 
national limit of assisted families determined under section 282(c). 
The sum of the various maximum limits of assisted families for each of 
the States shall be equal to maximum national limit of assisted 
families.
    (c) Formula.--The Voucher Administrator shall, by regulation, 
establish a formula to determine the relative needs among different 
States and areas for housing assistance under this title. The formula 
shall determine such need based on information regarding population, 
poverty, housing overcrowding, housing vacancies, amount of substandard 
housing, and other objectively measurable conditions specified in the 
regulation.
    (d) Maximum Allocation.--Except as provided in subsection (e), the 
allocation under this section for a State for a fiscal year shall be 
the amount, determined by the Voucher Administrator, that is the 
product of--
            (1) the maximum limit of assisted families determined 
        (under subsection (b)) for the State for the year; and
            (2) the amount determined by the Voucher Administrator to 
        be necessary to provide housing assistance under subtitle B for 
        the year for a number of families equal to such maximum limit 
        (taking into consideration differences in the amounts necessary 
        to provide housing assistance in different areas).
    (e) Pro Rata Reduction.--If the amount available for a fiscal year 
to carry out this title is not sufficient to provide the amount of the 
allocation determined under subsection (d) for each State, the maximum 
limit of assisted families for each State determined under subsection 
(b) shall be reduced on a pro rata basis to the extent necessary so 
that the product under subsection (d) is equal to the amount available 
for assistance under this title. For such a fiscal year, the allocation 
under this section for each State shall be the product determined under 
subsection (d) using such reduced limit.
    (f) Inclusion of Amounts for Administrative Fees.--Notwithstanding 
subsections (e) and (f), the Voucher Administrator may increase the 
amount of the allocation for each State for a fiscal year by an amount 
not exceeding the amount of the administrative fee under section 206 or 
233, as applicable, for the State.

SEC. 252. AVAILABILITY OF STATE ALLOCATION BASED ON ELECTION TO USE 
              FEDERAL OR STATE VOUCHER PROGRAM.

    (a) Election to Receive State Voucher Assistance.--If a State at 
any time provides notice under subsection (c) to the Voucher 
Administrator, the Voucher Administrator--
            (1) shall, for each fiscal year after the effective date of 
        such notice, make available to the State a grant under subtitle 
        A in the amount allocated for the State under section 251 for 
        such fiscal year; and
            (2) may not, at any time after the effective date of such 
        notice, enter into any commitment to provide, or provide, 
        amounts for assistance under subtitle B for use for housing 
        within such State.
    (b) Federal Voucher Assistance.--With respect to a fiscal year, if 
a State has not provided notice under subsection (c) that takes effect 
for, or before, such fiscal year, the Voucher Administrator shall make 
available to local voucher assistance agencies within the State, under 
annual contributions contracts under section 231, the amount allocated 
for the State under section 251 for the fiscal year.
    (c) Notice of Election.--Notice under this subsection shall be 
written notice that--
            (1) is signed by the chief executive officer of the State;
            (2) includes a certification that the notice is 
        specifically authorized by State law;
            (3) the State will carry out, after the effective date of 
        the notice, a program for housing voucher payments in 
        accordance with subtitle A;
            (4) includes a certification that block grant amounts made 
        available to the State under subtitle A will be used for 
        housing voucher assistance in compliance with the requirements 
        of subtitle A; and
            (5) indicates the effective date of the notice for purposes 
        of subsection (a), which shall be the first day of a Federal 
        fiscal year.
    (d) Prohibition Against Revoking Notice.--Once provided to the 
Voucher Administrator, notice under subsection (c) by a State may not 
subsequently be repealed, revoked, waived, annulled, returned, or 
otherwise affected for purposes of treatment of the State under 
subsection (a).

Subtitle D--Office of Federal Housing Voucher Assistance in Department 
                      of Health and Human Services

SEC. 261. ESTABLISHMENT.

    There is hereby established an office within the Department of 
Health and Human Services, which shall be known as the Office of 
Federal Housing Voucher Assistance.
SEC. 262. VOUCHER ADMINISTRATOR.

    (a) Appointment.--The Office shall be under the management of an 
Administrator, who shall be appointed by the President, by and with the 
advice and consent of the Senate.
    (b) Compensation at Level IV of Executive Schedule.--Section 5315 
of title 5, United States Code, is amended by inserting at the end the 
following new item:
            ``Administrator, Office of Federal Housing Voucher 
        Assistance, Department of Health and Human Services.''.
    (c) Effective Date.--This section shall take effect, and the 
amendment under this section is made and shall apply, on the date of 
the enactment of this Act.

SEC. 263. DUTY AND AUTHORITY OF VOUCHER ADMINISTRATOR.

    The Voucher Administrator shall be responsible, subject to the 
supervision and direction of the Secretary of Health and Human 
Services, for--
            (1) determining State allocations under subtitle C and make 
        such allocations available in accordance with the provisions of 
        such subtitle for use under subtitles A and B;
            (2) carrying out the voucher assistance program under 
        subtitle B; and
            (3) exercising any other authority and functions of the 
        Secretary of Housing and Urban Development transferred under 
        title III to the Voucher Administrator.

SEC. 264. TRANSFER OF CERTAIN PERSONNEL.

    The personnel that, on the effective date of this subtitle (as 
provided in section 268(a), are employed in the Department of Housing 
and Urban Development in connection with functions of the Department 
relating to determining fair market rentals under section 8 of the 
United States Housing Act of 1937, as determined by the Director of the 
Office of Management and Budget, shall be transferred on such date to 
the Office of Federal Housing Voucher Assistance.

SEC. 265. REPORTS.

    The Voucher Administrator shall submit a report to the Congress 
annually describing--
            (1) the amount of assistance provided under this title 
        pursuant to subtitle A and subtitle B during the year for which 
        the report is made;
            (2) the amount of assistance provided to each State for 
        such year and whether the assistance was provided under 
        subtitle A or B; and
            (3) the number of families assisted under each such 
        subtitle.

SEC. 266. GAO AUDITS.

    The Comptroller General shall audit the operations of the Office in 
accordance with generally accepted Government auditing standards. All 
books, records, accounts, reports, files, and property belonging to, or 
used by, the Voucher Administrator shall be made available to the 
Comptroller General. Audits under this section shall be conducted 
annually.

SEC. 267. REGULATIONS.

    The Voucher Administrator may issue any regulations necessary to 
carry out the responsibilities of the Voucher Administrator under this 
title.

SEC. 268. EFFECTIVE DATE.

    Except as otherwise specifically provided in this subtitle, this 
subtitle shall take effect on the effective date under section 108(a).

                     Subtitle E--General Provisions

SEC. 281. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Office.--The term ``Office'' means the Office of 
        Federal Housing Voucher Assistance of the Department of Health 
        and Human Services, established under subtitle D.
            (2) State.--The term ``State'' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, and any other 
        territory or possession of the United States.
            (3) Voucher administrator.--The term ``Voucher 
        Administrator'' means the Administrator of the Office of 
        Federal Housing Voucher Assistance, appointed under section 
        262.

SEC. 282. MAXIMUM AMOUNT OF HOUSING ASSISTANCE.

    (a) Permanent Limitation.--The aggregate amount of assistance made 
available under this title for fiscal year 2001 or any fiscal year 
thereafter may not exceed the sum of--
            (1) the amount necessary for such year to provide housing 
        assistance under subtitle B for a number of families equal to 
        the maximum national limit of assisted families (as such term 
        is defined in subsection (c)), taking into consideration the 
        allocation of such assistance by State and area under section 
        251; and
            (2) the amount necessary for such year to provide 
        administrative fees under sections 206 and 233 in connection 
        with such assistance.
    (b) Transition Limitation.--The aggregate amount of assistance made 
available under this title for any of fiscal years 1996, 1997, 1998, 
1999, or 2000 may not exceed the sum of--
            (1) the amount necessary (taking into consideration the 
        allocation of such assistance by State and area under section 
        251) for such year to provide housing assistance under subtitle 
        B for a number of families equal to the difference between--
                    (A) the maximum national limit of assisted 
                families; and
                    (B) the sum of--
                            (i) the maximum number of families for 
                        which assistance under section 8 of the United 
                        States Housing Act of 1937 may be made 
                        available or provided, at any one time, during 
                        such year; and
                            (ii) the maximum number of families which 
                        may, at any one time during such year, occupy 
                        dwelling units in public housing assisted under 
                        the United States Housing Act of 1937 or 
                        subtitle B of this title; and
            (2) the amount necessary for such year to provide 
        administrative fees under sections 206 and 233 in connection 
        with such assistance.
    (c) Maximum National Limit of Assisted Families.--For purposes of 
this title, the term ``maximum national limit of assisted families'' 
means the maximum aggregate number of families for which the following 
assistance was available or provided, at any one time, during fiscal 
year 1995:
            (1) Section 8.--Rental or homeownership assistance under 
        any program under section 8 of the United States Housing Act of 
        1937.
            (2) Public housing.--Residence in a dwelling unit in public 
        housing.
The maximum national limit on assisted families shall not take into 
consideration any families assisted under such rental, homeownership, 
or public housing programs of Indian housing authorities.

SEC. 283. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this title--
            (1) for fiscal year 1996, the lesser of $3,990,000,000 or 
        the maximum amount determined under section 282(b) for such 
        year;
            (2) for fiscal year 1997, the lesser of $8,515,000,000 or 
        the maximum amount determined under section 282(b) for such 
        year;
            (3) for fiscal year 1998, the lesser of $14,965,000,000 or 
        the maximum amount determined under section 282(b) for such 
        year;
            (4) for fiscal year 1999, the lesser of $21,209,000,000 or 
        the maximum amount determined under section 282(b) for such 
        year; and
            (5) for fiscal year 2000, the lesser of $24,344,000,000 or 
        the maximum amount determined under section 282(b) for such 
        year.

  TITLE III--TRANSITION PROVISIONS RELATING TO REPLACEMENT OF PUBLIC 
                 HOUSING AND ASSISTED HOUSING PROGRAMS

SEC. 301. PURPOSE.

    The provisions of this title are enacted for the purposes of--
            (1) replacing, with housing assistance under title II, all 
        assistance provided under the programs for the development, 
        operation, modernization, rehabilitation, and revitalization of 
        public housing and under all programs for project- and tenant-
        based rental assistance under section 8 of the United States 
        Housing Act of 1937; and
            (2) providing for the replacement of such assistance over a 
        period of 5 years in an efficient manner that deregulates 
        public housing agencies and provides assistance to such 
        agencies during such interim period through a single block 
        grant.

          Subtitle A--Replacement of Assisted Housing Programs

SEC. 311. TERMINATION OF EXISTING PROGRAMS.

    (a) Termination of Public Housing Block Grant Program After 5 
Years.--After September 30, 1999, no financial assistance may be 
provided under the public housing block grant program under subtitle B 
of this title.
    (b) Immediate Prohibition of New Commitments for Rental 
Assistance.--After the date of the enactment of this Act, no new 
commitment (including the renewal of any contract) may be made to 
provide financial assistance under any of the following programs:
            (1) Tenant-based section 8 assistance.--Any program for 
        tenant-based rental or homeownership assistance under section 8 
        of the United States Housing Act of 1937, including--
                    (A) the certificate and voucher programs under 
                subsections (b) and (o), respectively, of such section;
                    (B) the program for moving to opportunity for fair 
                housing under section 152 of the Housing and Community 
                Development Act of 1992;
                    (C) the community investment demonstration under 
                section 6 of the HUD Demonstration Act of 1993; and
                    (D) the program under section 8(q)(3) of the United 
                States Housing Act of 1937 for service coordinators for 
                families receiving tenant-based rental assistance.
            (2) Project-based section 8 assistance.--Any program for 
        project-based rental assistance under such section 8, including 
        project-based assistance provided pursuant to--
                    (A) the Low-Income Housing Preservation and 
                Resident Homeownership Act of 1990;
                    (B) the Emergency Low Income Housing Preservation 
                Act of 1987;
                    (C) the program for loan management assistance 
                under such section 8;
                    (D) the program for assistance under such section 8 
                for property disposition;
                    (E) section 441 of the Stewart B. McKinney Homeless 
                Assistance Act;
                    (F) parts III and V of subtitle F of title IV of 
                the Stewart B. McKinney Homeless Assistance Act; and
                    (G) the program under section 8(d)(2)(f) of the 
                United States Housing Act of 1937 for service 
                coordinators in project-based rental housing.
            (3) Tenant-based rental assistance for disabled families.--
        The program for tenant-based rental assistance under 
        subsections (b)(2)(B) and (d)(4) of section 811 of the 
        Cranston-Gonzalez National Affordable Housing Act.
            (4) Rental assistance for persons with aids.--The programs 
        for rental assistance for persons with AIDS under sections 859 
        and 860 of the Cranston-Gonzalez National Affordable Housing 
        Act.
            (5) Shelter plus care rental assistance for homeless 
        persons.--The programs for rental assistance under parts II and 
        IV of subtitle F of title V of the Stewart B. McKinney Homeless 
        Assistance Act.
            (6) Tenant opportunity program.--The tenant opportunity 
        program under the Departments of Veterans Affairs and Housing 
        and Urban Development, and Independent Agencies Appropriations 
        Act, 1994 (Public Law 103-327; 108 Stat. 2306).
    (c) Immediate Prohibition of New Commitments for Other Project-
Based Assistance.--After the date of the enactment of this Act, no new 
commitment may be made to provide financial assistance under any of the 
following programs:
            (1) Flexible subsidies.--The flexible subsidy program under 
        section 201 of the Housing and Community Development Amendments 
        of 1978.
            (2) Preservation programs.--Any authority under the Low-
        Income Housing Preservation and Resident Homeownership Act of 
        1990 or the Emergency Low Income Housing Preservation Act of 
        1987 for assistance other than the assistance referred to in 
        paragraph (2) of subsection (b).
            (3) Service coordinators for assisted projects.--The grant 
        program under section 676 of the Housing and Community 
        Development Act of 1992 for providing service coordinators for 
        federally assisted housing projects.
    (d) Immediate Prohibition of New Commitments for Indian Housing 
Assistance.--After the date of the enactment of this Act, no new 
commitment may be made to provide financial assistance under any of the 
following programs:
            (1) Public housing.--Any program for public housing for 
        Indians under or pursuant to the United States Housing Act of 
        1937.
            (2) Childhood development.--The program for Indian housing 
        childhood development under section 518 of the Cranston-
        Gonzalez National Affordable Housing Act.
            (3) Rental assistance.--The program to provide rental 
        assistance under section 8 of the United States Housing Act of 
        1937 through Indian housing authorities (including the renewal 
        of any contract).
    (e) Savings Provision.--Nothing in this section may be construed to 
affect the validity of any right, duty, or obligation of the United 
States or other person arising under or pursuant to any commitment or 
agreement lawfully entered into under any provision of law referred to 
in this section before the applicable date under this section 
prohibiting new assistance or commitments for assistance under such 
law.

SEC. 312. TRANSITION TO VOUCHER ASSISTANCE PROGRAM.

    (a) Orderly Transition.--The Administrator of the Office of Federal 
Housing Voucher Assistance and the Administrator of the Housing and 
Urban Development Programs Resolution Agency shall provide for the 
orderly transition, during the transition period, from providing 
assistance under the public housing block grant program under subtitle 
B of this title to the provision of voucher assistance under title II.
    (b) Pace of Replacement and Intermediate Goals.--In carrying out 
this section, the Resolution Administrator shall terminate the 
provision of public housing block grant assistance under subtitle B to 
the greatest extent and as soon as practicable throughout the 
transition period and, in doing so, shall ensure that, by October 1, 
1998--
            (1) for at least 50 percent of the total number of families 
        that resided in dwelling units in public housing on October 1, 
        1995, and
            (2) for all of the dwelling units of at least 50 percent of 
        all public housing agencies,
the provision of assistance under subtitle B has been terminated and 
replaced by the provision of assistance under title II.
    (c) Use of Amounts.--Notwithstanding any other provision of law, 
any assistance provided for public housing under the United States 
Housing Act of 1937 or subtitle B of this title may be used for 
assistance under title II.
    (d) Continuity of Assistance.--To the greatest extent practicable 
taking into consideration the availability of amounts provided in 
appropriation Acts and the relative needs of different States and areas 
(as determined under section 251), during fiscal years 1996 through 
2000, the Voucher Administrator shall allocate to local voucher 
assistance agencies under subtitle B of title II the amounts made 
available to carry out such subtitle in a manner that provides 
assistance sufficient for one assisted family under such subtitle for 
each family for which assistance for the rental or ownership of a 
dwelling unit is terminated pursuant to section 311.
    (e) Responsibilities of Existing PHA's.--Any public housing agency 
administering the provision of assistance under section 8 of the United 
States Housing Act of 1937 upon the commencement of the transition 
period may continue after such date to administer the provision of any 
such assistance committed before such date for use by such agency or 
may transfer responsibility for administering such assistance to 
another entity acting as a local voucher assistance agency for purposes 
of subtitle B of title II.
    (f) Prohibition of Duplicative Assistance During Transition.--A 
dwelling unit for which housing assistance is provided under title II 
may not be assisted in any manner with any amounts made available under 
this title.
    (g) Plan and Reports.--
            (1) Transition plan.--Not later than 6 months after the 
        date of the enactment of this Act, the Resolution Administrator 
        and the Voucher Administrator shall jointly establish, and 
        submit to the Congress, a plan providing for the transition of 
        assistance for public housing to voucher assistance under title 
        II, in accordance with the requirements of this subtitle.
            (2) Annual reports.--Not later than 3 months after the 
        conclusion of each of fiscal years 1996, 1997, 1998, 1999, and 
        2000, the Resolution Administrator and the Voucher 
        Administrator shall jointly prepare, and submit to the 
        Congress, a report on the progress during such fiscal year of 
        the transition under this subtitle to providing voucher 
        assistance under title II.
    (h) Coordination With PHA's.--In carrying out this section, the 
Resolution Administrator shall coordinate with the public housing 
agencies to the extent necessary to permit the agencies to establish 
plans under section 323 that conform with the requirements under this 
section and the schedule established by the Resolution Administrator 
and the Voucher Administrator for the transition under this section.
    (i) Vouchering by Tenant Management Corporations.--Notwithstanding 
the plan under subsection (g), any schedule for converting assistance 
for a public housing agency from assistance under public housing block 
grants under subtitle B to voucher assistance under title II, or any 
plan under section 323, the Resolution Administrator may provide for a 
tenant management corporation (as such term is defined in section 235) 
to administer housing assistance under subtitle B of title II with 
respect to families eligible for such assistance who are residing in 
dwelling units in public housing projects assisted at such time under 
the United States Housing Act of 1937 if--
            (1) the tenant management corporation makes a written 
        request to the Resolution Administrator to administer such 
        assistance;
            (2) the public housing projects are located in a State that 
        has not provided notice under section 252 that the State elects 
        to receive block grants for State housing voucher assistance 
        under subtitle A of title II;
            (3) the tenant management corporation has management 
        authority with respect to the projects; and
            (4) allowing the tenant management corporation to 
        administer such assistance will provide voucher assistance 
        under subtitle B of title II for the residents of such projects 
        earlier than otherwise provided under the plan under subsection 
        (g) of this section or the plan of the relevant public housing 
        agency under section 323.

SEC. 313. TRANSFER OF RESIDUAL HUD AUTHORITY TO ADMINISTRATOR OF 
              FEDERAL HOUSING VOUCHER ASSISTANCE.

    Effective on the termination date under section 105(d), there are 
transferred to the Voucher Administrator all functions of the 
Resolution Administrator regarding administration of any outstanding 
commitments of the Resolution Administrator under the programs referred 
to in section 311 and of any amounts previously appropriated in 
connection with such commitments.
SEC. 314. TREATMENT OF FAMILIES ASSISTED UNDER TERMINATED PROGRAMS.

    (a) Assistance for Families Residing in Multifamily Disposition 
Projects.--
            (1) In general.--To the extent amounts for assistance under 
        title II are available, the relevant State or voucher housing 
        agency shall provide such assistance for each low-income family 
        that--
                    (A) resides--
                            (i) in a HUD-owned multifamily rental 
                        housing project at the time of the sale of the 
                        project or the mortgage for the project under 
                        section 553; and
                            (ii) at such time, in a dwelling unit in 
                        such project that was assisted with project-
                        based assistance under section 8 of the United 
                        States Housing Act of 1937, section 101 of the 
                        Housing and Urban Development Act of 1965, 
                        section 236(f)(2) of the National Housing Act, 
                        or section 23 of the United States Housing Act 
                        of 1937 (as in effect before January 1, 1975); 
                        and
                    (B) as a result of the sale of such project or the 
                mortgage for the project, will not otherwise receive 
                the benefit of the project-based assistance referred to 
                in subparagraph (A)(ii) over such period.
            (2) Hud-owned multifamily rental project.--For purposes of 
        paragraph (1), the term ``HUD-owned multifamily rental 
        project'' means a multifamily rental housing project which--
                    (A) is owned by the Secretary of Housing and Urban 
                Development or the Administrator of the Federal Home 
                Mortgage Insurance Fund or is subject to a mortgage so 
                owned; and
                    (B) is or, prior to acquisition of the project or 
                the mortgage for the project by such Secretary or 
                Administrator, was assisted or insured under the 
                National Housing Act or subject to a loan under the 
                Housing Act of 1959.
    (b) Preference for Federal Voucher Assistance.--To the extent 
amounts are available after assistance is provided pursuant to 
subsection (a), a family to or on behalf of whom assistance for the 
rental or ownership of a dwelling unit is provided under any program 
described in section 311 and whose assistance is terminated because of 
section 311 or 312, shall be given preference for assistance made 
available under subtitle B of title II, subject to the limitations 
under this section. Preference pursuant to this subsection may be 
provided only for families that are eligible for such assistance under 
the applicable provisions of such subtitle B.
    (c) One-Time Applicability.--Any family to or on behalf of whom 
assistance is once provided under title II pursuant to a preference 
under subsection (a) or (b) may not, in any subsequent selection of 
families for available assistance under subtitle A or B of title II, be 
accorded preference pursuant to such subsection.
    (d) Prohibition of Evictions.--With respect to a dwelling unit that 
is--
            (1) located in a public housing project for which 
        assistance under the United States Housing Act of 1937 or 
        subtitle B of this title is terminated pursuant to this 
        subtitle and maintained by the public housing agency as an 
        occupiable dwelling unit available for rental, or
            (2) assisted under any other program described in section 
        311,
the family lawfully residing in the dwelling unit at the time of the 
termination of such assistance may not be evicted or otherwise required 
to vacate the unit solely because of the termination and without 
consideration to the ability of the family to pay rent for the unit.
    (e) Prohibition of Discrimination by Public Housing Agencies 
Against Voucher Holders.--After the transition under this subtitle of 
the public housing projects of a public housing agency to assistance 
under title II, the agency may not refuse to lease an available 
dwelling unit in any project of the agency that was developed or 
assisted with contributions under the United States Housing Act of 1937 
or subtitle B of this title to any family on behalf of whom assistance 
is provided under title II, or to enter into a housing voucher contract 
under subtitle B of title II, a proximate cause of which is the status 
of the family as so assisted.

SEC. 315. CONTINUED RESTRICTIONS ON USE OF EXISTING PUBLIC HOUSING 
              STOCK.

    Any housing project developed or assisted with amounts provided 
under the United States Housing Act of 1937 or subtitle B of this title 
shall continue to be subject to any conditions or requirements under 
such Act or title resulting from such assistance, except to the extent 
specifically waived or provided otherwise under this title.

SEC. 316. AUDIT OF PROJECT-BASED SECTION 8 ASSISTANCE CONTRACTS.

    (a) Audit.--Not later than the expiration of the 24-month period 
beginning upon the date of the enactment of this Act, the Resolution 
Administrator shall conduct an audit to identify each multifamily 
housing project assisted under an existing contract under section 8 of 
the United States Housing Act of 1937 that is attached to the structure 
pursuant to subsection (d)(2) of such section and, with respect to each 
such project, to determine--
            (1) the amount of such assistance provided for the project 
        and for each assisted dwelling unit in the project and the 
        remaining term of such contract for assistance;
            (2) the physical status and needs for the project;
            (3) the financial status of the project, including--
                    (A) whether the project is subject to a mortgage 
                insured under the National Housing Act and, if so, the 
                program under which such insurance is provided, whether 
                the loan secured by the mortgage is delinquent, in 
                default, or current, and if delinquent or in default, 
                the amount of arrears, outstanding balance, interest 
                rate, and remaining term of the delinquent or defaulted 
                loan;
                    (B) recent project income and expenses and the 
                amount of the balance in any reserve accounts for the 
                project;
                    (C) the estimated cost of any rehabilitation 
                necessary to maintain the project in accordance
                 with applicable building and safety standards and 
codes or to bring the project into compliance with such standards and 
codes;
                    (D) the amount of monthly rental revenue necessary 
                per dwelling unit to fully support the sum of 
                rehabilitation costs under subparagraph (C) for the 
                project, the costs of operating the project, and the 
                costs of maintaining the project in accordance with 
                applicable building and safety standards;
                    (E) the estimated revenue losses resulting from 
                vacancies in dwelling units in the project; and
                    (F) the extent of financial investment and interest 
                in the project of the owner of the project and of the 
                extent of control by the owner over the management of 
                the project; and
            (4) the rents for comparable unassisted dwelling units in 
        the area in which the project is located.
    (b) Report.--Not later than the expiration of the period referred 
to in subsection (a), the Resolution Administrator shall submit a 
report to the Congress containing the results of the audit conducted 
under such subsection.

    Subtitle B--Interim Program for Public Housing Block Grants and 
                              Deregulation

SEC. 321. IMMEDIATE TERMINATION OF EXISTING PUBLIC HOUSING PROGRAMS.

    After the date of the enactment of this Act, no new commitment may 
be made to provide financial assistance under any of the following 
programs:
            (1) Public housing.--Any program for assistance for public 
        housing under any provision of title I or III of the United 
        States Housing Act of 1937.
            (2) Urd grants.--The urban revitalization program under the 
        Departments of Veterans Affairs and Housing and Urban 
        Development, and Independent Agencies Appropriations Act, 1993 
        (Public Law 102-389; 106 Stat. 1579).
            (3) Childhood development.--The program for public housing 
        childhood development under section 222 of the Housing and 
        Urban-Rural Recovery Act of 1983.
            (4) Perinatal services demonstration.--The public housing 
        one-stop perinatal services demonstration under section 521 of 
        the Cranston-Gonzalez National Affordable Housing Act.
            (5) Youth sports demonstration.--The program for public and 
        assisted housing youth sports under section 520 of the 
        Cranston-Gonzalez National Affordable Housing Act.
            (6) Drug elimination.--The program for public and assisted 
        housing drug elimination under chapter 2 of subtitle C of title 
        V of the Anti-Drug Abuse Act of 1988.

SEC. 322. PROGRAM AUTHORITY.

    (a) In General.--Notwithstanding any provisions of the United 
States Housing Act of 1937, during the transition period, this subtitle 
shall govern the funding, operation, and management of public housing, 
and the transformation of public housing to a program of tenant-based 
voucher assistance under title II of this Act. Title I of the United 
States Housing Act of 1937 shall apply only to the extent that the 
Resolution Administrator determines that such title is consistent with 
the effective and expeditious achievement of the purposes of this 
title.
    (b) Deregulation.--The Resolution Administrator shall provide 
public housing agencies with the flexibility and, to the extent amounts 
are made available in appropriations Acts for grants under this 
subtitle, the funding necessary to allow the agencies--
            (1) to make their viable and marketable public housing 
        stock generally competitive, in preparation for their 
        transition to the voucher assistance under title II; and
            (2) to demolish, dispose of, or demolish and dispose of 
        their nonviable or nonmarketable housing property.
In carrying out this subtitle, the Resolution Administrator shall 
deregulate and decontrol public housing agencies consistent with the 
requirements of this subtitle, the prudent operation of such agencies, 
and the purpose under section 301.
    (c) Indian Housing Programs.--This subtitle shall not apply to low-
income housing developed or operated pursuant to a contract between the 
Secretary of Housing and Urban Development and an Indian housing 
authority.

SEC. 323. STRATEGIC PLAN.

    (a) In General.--As a condition of eligibility for assistance under 
this subtitle, a public housing agency shall develop a strategic plan 
under this section that determines--
            (1) the location, physical condition, modernization needs, 
        and marketability of each of the public housing projects of the 
        agency; and
            (2) the manner in which the public housing of the agency 
        relates to the overall local stock of affordable housing in the 
        community in which the jurisdiction of the agency is located.
    (b) Minimum Requirements.--The plan under this section of a public 
housing agency shall--
            (1) be developed in consultation with appropriate local 
        officials, tenants of the public housing projects for which 
        assistance is requested, residents of the local community, and 
        other appropriate interested parties;
            (2) identify the public housing projects that the agency 
        plans to demolish;
            (3) identify the public housing projects that the agency 
        plans to rehabilitate, and provide a schedule for such 
        rehabilitation;
            (4) set forth the plan of the agency for complying with the 
        provisions of this subtitle and for the transition of the 
        public housing of the agency to voucher assistance under title 
        II, including any requests for waivers of program requirements 
        under section 329(a);
            (5) describe how the assistance requested under this 
        subtitle will be used by the agency to improve the management 
        and operation of the agency and to improve the condition of the 
        public housing projects for which such assistance is requested;
            (6) describe how the assistance requested under this 
        subtitle will be used by the agency to assist tenant programs 
        and services in the public housing projects for which such 
        assistance is sought;
            (7) describe any other sources of funds, not provided under 
        this subtitle, to be used by the public housing agency to carry 
        out any eligible activities under section 327;
            (8) describe any previous assistance provided by the 
        Secretary of Housing and Urban Development under title I of the 
        United States Housing Act of 1937 will be used for the purposes 
        of this subtitle; and
            (9) include such other information as the Resolution 
        Administrator may require.
    (c) Requirements for Small Public Housing Agencies.--The Resolution 
Administrator may establish requirements for strategic plans under this 
section that provide for public housing agencies with fewer than 100 
units, to submit more simplified plans than those required to be 
submitted by larger public housing agencies.
    (d) Review and Approval.--The Resolution Administrator shall review 
each plan submitted under this section for compliance with the 
requirements of this section and this subtitle and shall approve the 
plans that so comply. The Resolution Administrator may require a public 
housing agency to amend or resubmit a plan under this section if the 
plan, as initially submitted, does not so comply.
    (e) Use.--A public housing agency shall use the strategic plan of 
the agency approved under this section to guide any investment 
decisions of the agency during the transition period.

SEC. 324. CONSOLIDATION OF FUNDING.

    (a) Consolidation of Funding.--All programs under which assistance 
is provided for public housing immediately before the commencement of 
the transition period (including each program referred to in section 
321) shall, upon such commencement, be merged into the Public Housing 
Block Grant Fund under section 325.
    (b) Treatment of Existing Amounts.--
            (1) Unreserved amounts.--Any amounts made available to the 
        Secretary of Housing and Urban Development for public housing 
        purposes that have not been reserved by the Secretary to a 
        public housing agency before the commencement of the transition 
        period shall be available, for the period originally provided 
        in law, for use for block grants under this subtitle.
            (2) Reserved amounts.--Any amounts made available to the 
        Secretary of Housing and Urban Development for public housing 
        purposes that have been obligated by the Secretary to a public 
        housing agency, but which, as of the commencement of the 
        transition period, have not been obligated by the public 
        housing agency, shall be available to such public housing 
        agency, for the period originally provided in law, for use as 
        block grant amounts under this subtitle.
    (c) Continued Availability.--If a public housing agency receives 
amounts under this subtitle for purposes described in the public 
housing agency's strategic plan that relate to a particular project or 
projects, or portion thereof, such amounts shall be available to the 
agency until expended, regardless of whether project or projects, or 
portions of the project or projects, have been transferred under 
subtitle A to voucher assistance under title II.

SEC. 325. PUBLIC HOUSING BLOCK GRANT FUND.

    The Resolution Administrator shall establish a Public Housing Block 
Grant Fund for the purpose of making grants to public housing 
agencies--
            (1) to make physical improvements to or to replace public 
        housing projects;
            (2) for associated management improvements; and
            (3) for the operation of low-income housing projects.

SEC. 326. GRANTS.

    (a) In General.--The Resolution Administrator shall make grants 
from amounts in the Public Housing Block Grant Fund to public housing 
agencies to carry out eligible activities under section 327.
    (b) Strategic Plan Requirement.--No amounts may be provided under 
this subtitle to a public housing agency unless the Resolution 
Administrator has approved a strategic plan for the agency under 
section 323.
    (c) Amount.--The amount of the block grant under this subtitle for 
a public housing agency for a fiscal year shall be the amount of the 
allocation under section 328 for the agency for such fiscal year.
    (d) Conditions of Block Grant Assistance.--With respect to public 
housing projects assisted under this subtitle, the requirements of this 
subtitle (and the conditions of the strategic plan relating to the 
housing) shall apply for the longer of--
            (1) 20 years after the date of the execution of the 
        contract for the first grant under this subtitle from which 
        amounts were used for the development of the housing; or
            (2) 10 years after the receipt of the last grant under this 
        subtitle from which amounts were used for operation of the 
        project.

SEC. 327. ELIGIBLE ACTIVITIES.

    Amounts from a grant under this subtitle may be used to carry out 
the following activities:
            (1) Operating activities.--Activities relating to--
                    (A) the operation of low-income housing projects;
                    (B) crime prevention and security (including 
                activities eligible for assistance under the Public and 
                Assisted Housing Drug Elimination Act of 1990 and the 
                Drug-Free Public Housing Act of 1988) for low-income 
                housing projects; and
                    (C) the provision of service coordinators under 
                section 671 of the Housing and Community Development 
                Act of 1992 for elderly persons or persons with 
                disabilities in low-income housing projects.
            (2) Capital and management activities.--
                    (A) Capital and management activities authorized 
                under title I of the United States Housing Act of 1937 
                (except for sections 8 and 9).
                    (B) Any other activities relating to the 
                development and modernization of public housing 
                projects, including the redesign, reconstruction, and 
                reconfiguration of public housing sites and buildings, 
                vacancy reduction, addressing deferred maintenance 
                needs and the replacement of dwelling equipment, 
                planned code compliance, management improvements, 
                community service, demolition and replacement, tenant 
                relocation, and activities to improve the economic 
                empowerment and self-sufficiency of public housing 
                tenants.
                    (C) Activities under the urban revitalization 
                demonstration program authorized under Public Laws 102-
                389, 103-124, or 103-327.
                    (D) Activities under the public housing early 
                childhood development program authorized under section 
                222 of the Housing and Urban-Rural Recovery Act of 
                1983.
                    (E) Providing technical assistance to public 
                housing agencies, resident councils, resident 
                organizations, and resident management corporations, 
                including monitoring, inspections, training for public 
                housing agency employees and residents, and data 
                collection and analysis.
                    (F) Remedial activities associated with troubled 
                public housing agencies, as such agencies are so 
                designated under section 6(j) of the United States 
                Housing Act of 1937.
                    (G) Such other activities as may be determined by 
                the Resolution Administrator.
        The provisions and requirements of any laws referred to in this 
        subsection shall not apply to activities assisted with block 
        grants made under this subtitle, except as determined necessary 
        by the Resolution Administrator.

SEC. 328. FORMULA ALLOCATIONS.

    (a) In General.--For each fiscal year, the Resolution Administrator 
shall allocate any amounts available under this subtitle for block 
grants for the fiscal year to public housing agencies eligible for such 
grants under section 326(b). The allocation for an eligible public 
housing agency for a fiscal year shall be the sum of the operating 
amount under subsection (b) for the agency for such year and the 
capital amount under subsection (c) for the agency for such year.
    (b) Operating Amount.--
            (1) In general.--The Resolution Administrator shall 
        allocate 40 percent of any amounts available under this 
        subtitle for block grants for a fiscal year to eligible public 
        housing agencies according to a formula established under this 
        subsection by the Resolution Administrator. The formula 
        allocation under this subsection for a public housing agency 
        for a fiscal year is the operating amount for such agency for 
        such year.
            (2) Modification of pfs formula.--For purposes of 
        determining operating amounts under this subsection, the 
        Resolution Administrator shall modify the Performance Funding 
        System formula, as prescribed by the Resolution Administrator 
        in regulations pursuant to section 9 of the United States 
        Housing Act of 1937, to--
                    (A) include components reflecting the new list of 
                eligible activities set forth in section 327(1);
                    (B) simplify the requirements relating to public 
                housing agencies with 100 or fewer units;
                    (C) revise the treatment of ``other income'' in a 
                manner that gives public housing agencies an incentive 
                to increase such income;
                    (D) eliminate the ``rental income increase'' factor 
                used in calculating Performance Funding System 
                eligibility; and
                    (E) provide that the treatment of vacant public 
                housing units under the formula may be modified by 
                negotiated rulemaking.
        In modifying the Performance Funding System formula under this 
        paragraph, the Resolution Administrator may give special 
        consideration to the needs of public housing agencies for 
        anticrime funding and funding of activities related to the 
        provision of service coordinators for elderly persons or 
        persons with disabilities pursuant to section 671 of the 
        Housing and Community Development Act of 1992.
            (3) Use of existing pfs formula.--Until the Performance 
        Funding System formula as revised under paragraph (2) takes 
        effect, the Resolution Administrator shall use the formula 
        established pursuant to section 9(a)(3) of the United States 
        Housing Act of 1937 for purposes of determining the operating 
        amounts under this subsection.
    (c) Capital Amount.--
            (1) In general.--The Resolution Administrator shall 
        allocate 60 percent of any amounts available under this 
        subtitle for block grants for a fiscal year to eligible public 
        housing agencies according to a formula established under this 
        subsection by the Resolution Administrator. The formula shall 
        be designed to measure the relative needs of such agencies for 
        capital and modernization assistance and shall allocate amounts 
        to address the backlog needs and accrual needs of public 
        housing agencies, taking into consideration all activities 
        eligible for assistance under section 327(2). The formula 
        allocation under this subsection for a public housing agency 
        for a fiscal year is the capital amount for such agency for 
        such year.
            (2) Formula for small public housing agencies.--The 
        Resolution Administrator may establish a separate allocation 
        formula under this subsection for public housing agencies with 
        fewer than 100 units, which may take into account the specific 
        needs of such smaller public housing agencies.
            (3) Authority to use current formula.--In carrying out this 
        subsection, the Resolution Administrator may use the formula 
        established under section 14(k) of the United States Housing 
        Act of 1937, with such adjustments as may be necessary to 
        provide additional weight for backlog needs. The Resolution 
        Administrator may make the adjustments to such formula by 
        notice and without amending the regulations implementing such 
        section.

SEC. 329. PROGRAM REQUIREMENTS AND WAIVERS.

    (a) Waiver of Program Requirements.--
            (1) Authority.--The Resolution Administrator may waive, for 
        a public housing agency receiving assistance under this 
        subtitle, any of the following requirements under title I:
                    (A) Income eligibility.--Any requirement relating 
                to maximum income of families residing in public 
                housing.
                    (B) Rent charges.--Any requirement relating to 
                rental amounts for dwelling units in public housing.
                    (C) Occupancy preferences.--Any requirement 
                relating to preference for occupancy in public housing 
                dwelling units.
                    (D) Demolition and disposition.--Any requirement 
                relating to demolition and disposition of public 
                housing.
            (2) Requirements.--The Resolution Administrator may waive 
        requirements referred to in paragraph (1) only pursuant to a 
        request made by a public housing agency contained in the 
        strategic plan under section 323 for the agency and only if the 
        Resolution Administrator determines that the plan provides an 
        effective and efficient means of--
                    (A) providing low-income housing for low-income 
                families in the area served by the public housing 
                agency;
                    (B) operating the public housing of the agency;
                    (C) transition from block grant assistance under 
                this subtitle for the agency to voucher assistance 
                under title II; and
                    (D) assisting families currently eligible for and 
                residing in public housing of the agency.
    (b) Waiver of Procurement Requirements.--The Resolution 
Administrator may waive any Federal, State, or local procurement 
requirements applicable to a public housing agency engaging in any 
activity authorized by this subtitle, as the Resolution Administrator 
considers necessary. In order to avoid duplication of such requirements 
among jurisdictions, the Resolution Administrator may apply the 
procurement requirements of only one jurisdiction.
    (c) Modification of Lead-Based Paint Requirements.--Consistent with 
the purposes of this subtitle and the protection of children from lead-
based paint hazards, the Resolution Administrator shall--
            (1) determine which, if any, of the lead-based paint 
        testing and abatement requirements for public housing in the 
        Lead-Based Paint Poisoning Prevention Act shall apply to public 
        housing during the period that is assistance is provided for 
        such housing under this subtitle; and
            (2) adopt for public housing, for such period, appropriate 
        recommendations made by the Task Force on Lead-Based Paint 
        Hazard Reduction and Financing.
    (d) Applicability of Family Self-Sufficiency Requirements.--
Participation in the Family Self-Sufficiency program under section 23 
of the United States Housing Act of 1937 shall not be mandatory with 
respect to any housing developed with amounts provided under this 
subtitle. Parties to financial and other contractual commitments made 
under the Family Self-Sufficiency program prior to the allocation or 
obligation of amounts under this title shall continue to be bound by 
the terms of such commitments.

SEC. 330. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Public Housing Grant 
Fund under section 325 for grants under this subtitle--
            (1) $5,270,000,000 for fiscal year 1996;
            (2) $3,300,000,000 for fiscal year 1997;
            (3) $1,500,000,000 for fiscal year 1998; and
            (4) $56,000,000 for fiscal year 1999.

                     Subtitle C--General Provisions

SEC. 341. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Resolution administrator.--The term ``Resolution 
        Administrator'' means the Administrator of the Housing and 
        Urban Development Programs Resolution Agency appointed under 
        section 101.
            (2) Transition period.--The term ``transition period'' 
        means the period beginning on October 1, 1995, and ending on 
        September 30, 2000.
            (3) Voucher administrator.--The term ``Voucher 
        Administrator'' means the Administrator of the Office of 
        Federal Housing Voucher Assistance of the Department of Health 
        and Human Services, appointed under section 262.
     TITLE IV--BLOCK GRANTS FOR HOUSING AND COMMUNITY DEVELOPMENT 
                             OPPORTUNITIES

                    Subtitle A--Block Grants Program

SEC. 401. PURPOSE.

    The purpose of this subtitle is to provide assistance to eligible 
States, entitlement areas, and Indian tribes, to be used in such manner 
and amounts as the States, entitlement areas, and tribes determine 
appropriate, for meeting the community and economic development needs 
and the affordable housing needs of the States, entitlement areas, and 
tribes.

SEC. 402. GENERAL BLOCK GRANTS.

    Except as provided in section 432, for each fiscal year, the 
Director of the Housing and Community Opportunities Agency shall make a 
grant to each eligible State and entitlement area in an amount equal to 
the allocation determined under section 406 for such State or 
entitlement area for the fiscal year and shall provide amounts to 
Indian tribes in accordance with section 406(b).

SEC. 403. ELIGIBLE STATES AND ENTITLEMENT AREAS.

    (a) Eligible State.--For purposes of this title, the term 
``eligible State'' means, with respect to a fiscal year, a State that, 
during the period immediately preceding the fiscal year and having such 
duration as the Director shall determine, has submitted to the Director 
a block grant plan under section 405.
    (b) Entitlement Area.--For purposes of this title, the term 
``entitlement area'' means, with respect to a fiscal year, a 
metropolitan city or urban county that, during the period immediately 
preceding the fiscal year and having such duration as the Director 
shall determine, has submitted to the Director a block grant plan under 
section 405.

SEC. 404. USE OF GRANT AMOUNTS.

    (a) Limitation on Use.--Grant amounts provided under this subtitle 
may be used, subject to this title, only to carry out eligible 
activities.
    (b) Low-Income Use.--
            (1) In general.--Not less than 90 percent of the aggregate 
        amount of assistance provided to an eligible State, entitlement 
        area, or Indian tribe under a grant made under this subtitle 
        shall be used for the support of eligible activities that 
        benefit low-income families.
            (2) Determination.--An eligible activity shall be 
        considered to benefit low-income families only if such 
        activity--
                    (A) is carried out in a neighborhood consisting 
                predominately of low-income families and provides 
                services for such families;
                    (B) involves housing or facilities for use 
                predominately by low-income families;
                    (C) involves employment of persons, a majority of 
                whom are members of low-income families; or
                    (D) is designed to serve an area generally and is 
                clearly designed to meet needs of low-income families 
                in such area.
            (3) Housing activities.--An affordable housing activity 
        under subsection (e) that provides dwelling units and is 
        assisted with grant amounts under this subtitle shall be 
        considered to benefit low-income families only to the extent 
        such housing will, upon completion, be occupied by such 
        families.
    (c) Eligible Activities.--An activity shall be considered an 
eligible activity for purposes of this subtitle only if the activity is 
a community or neighborhood development activity under subsection (d), 
an affordable housing activity under subsection (e), or a relocation 
activity under subsection (f).
    (d) Community and Neighborhood Development Activities.--A community 
or neighborhood development activity under this subsection is an 
activity directed toward encouraging or assisting the development of 
viable neighborhoods and communities, providing decent housing and a 
suitable living environment, or expanding economic opportunities for 
families, neighborhoods, or communities, which shall include the 
following activities to carry out such purposes:
            (1) Properties.--Acquisition and disposition of property 
        and construction, reconstruction, and installation of 
        properties and other facilities, for public purposes.
            (2) Code enforcement and removal.--Code enforcement and 
        clearance, demolition, removal, and rehabilitation of buildings 
        and improvements.
            (3) Public services.--Provision of public services not 
        previously provided, except that not more that 15 percent of 
        the amount of any assistance under this subtitle to an eligible 
        State or Indian tribe may be used for activities under this 
        paragraph.
            (4) Planning and technical assistance.--Community and 
        neighborhood development planning, technical assistance, 
        training, and capacity-building activities.
            (5) Economic development.--Economic development projects 
        that create or retain employment or business opportunities or 
        provide goods or services, for low-income families.
            (6) Neighborhood development.--Provision of assistance to 
        neighborhood development organizations, local development 
        corporations, and neighborhood-based nonprofit organizations to 
        support neighborhood development and revitalization activities.
            (7) Matching amounts.--Payment of the non-Federal share 
        required in connection with a Federal grant-in-aid program 
        undertaken as part of activities assisted with amounts provided 
        under this subtitle.
    (e) Affordable Housing Activities.--
            (1) In general.--An affordable housing activity under this 
        subsection is an activity to assist the development of, or to 
        support, affordable rental housing or affordable homeownership 
        opportunities through the following activities:
                    (A) Affordable housing development.--The provision 
                of assistance for acquisition, new construction, 
                reconstruction, or moderate or substantial 
                rehabilitation of affordable housing, including 
                assistance for real property acquisition, site 
                improvement, conversion, demolition, financing costs, 
                administrative and planning costs, and other expenses.
                    (B) Tenant-based assistance.--The provision of 
                financial assistance to or on behalf of low-income 
                families for costs of such families of renting or owing 
                dwelling units, but only if such assistance is not 
                limited to use for a particular dwelling.
                    (C) Homeownership assistance.--The provision of 
                financial assistance to or on behalf of low-income 
                first-time homebuyers, including providing direct 
                mortgage loans and second mortgage loans, interest rate 
                buy downs, downpayment assistance, mortgage insurance 
                or guarantees, and other assistance.
                    (D) Homeownership programs.--Planning, organizing, 
                establishing, or carrying out programs for affordable 
                housing homeownership.
                    (E) Housing counseling.--Counseling regarding 
                affordable rental or homeownership opportunities, 
                responsibilities of tenancy and homeownership, or 
                avoiding foreclosure, or training and certifying such 
                counselors.
                    (F) Lead-based paint hazard reduction.--Activities 
                to evaluate or reduce hazards in affordable housing 
                resulting from lead-based paint.
                    (G) Technical, capacity-building, and outreach 
                assistance.--The provision of technical, 
                administrative, or organizational assistance for, or 
                assistance for operating expenses of, community housing 
                development organizations or other organizations 
                supporting, providing, or facilitating affordable 
                housing, or other assistance to increase the capacity 
                of or encourage public or private organizations, 
                institutions, or agencies to support, develop, or 
                facilitate affordable housing.
                    (H) Education and research.--Educational, training, 
                informational, or research activities to facilitate or 
                assist the development or support of affordable 
                housing.
                    (I) Child development.--Childhood development 
                services in or near affordable housing for low-income 
                families residing in the housing.
                    (J) Drug elimination.--Security or law enforcement 
                activities for affordable housing.
            (2) Targeting.--Affordable housing activities under this 
        subsection may include activities relating to--
                    (A) affordable housing that is primarily or 
                specifically for elderly families, disabled families, 
                homeless families, persons with acquired 
                immunodeficiency syndrome or related diseases and their 
                families, or Indian families;
                    (B) affordable housing constructed, rehabilitated, 
                maintained, or operated in connection with job 
                training, educational, or youth-oriented programs; and
                    (C) affordable housing provided in the form of 
                single family homes, multifamily housing, single room 
                occupancy housing, shared housing, community 
                residences, congregate housing, group homes, mixed 
                housing, supportive housing, emergency and overnight 
                shelters, transitional housing, permanent housing, and 
                other housing.
            (3) Affordability.--An eligible State, entitlement area, or 
        Indian tribe receiving grant amounts under this subtitle and 
        using such amounts as provided in this subsection for 
        assistance or support of affordable housing shall have the sole 
        responsibility for establishing requirements or limitations 
        relating to the affordability of housing for which assistance 
        or support is provided or activities are conducted using such 
        grant amounts.
    (f) Relocation Activities.--A relocation activity under this 
subsection is an activity to relocate any family, person, business, or 
organization displaced by activities assisted under this subtitle.
    (g) Administrative Costs.--Each eligible activity under subsection 
(d), (e), or (f) shall be considered, for purposes of this subtitle, to 
include payment of reasonable administrative costs relating to carrying 
out such activity.
    (h) Manner of Use.--Grant amounts provided under this subtitle may 
be used in support of eligible activities in any manner determined 
appropriate by the eligible State, entitlement area, or Indian tribe 
receiving the grant, including (1) providing grants, capital 
assistance, loans, and subsidies, (2) providing payment or collateral 
for or insurance or guarantee of loans, notes, and obligations 
(including assistance or collateral for State-issued housing bonds or 
projects financed by such bonds), and (3) carrying out activities 
directly or by contract.
    (i) Transfer to Other Entities.--An eligible State, entitlement 
area, or Indian tribe that receives grant amounts under this subtitle 
may distribute such amounts to other entities for carrying out eligible 
activities, except that the State, entitlement area, or tribe shall be 
responsible for ensuring that the grant amounts are used in accordance 
with this section.
    (j) Required Use as Collateral for CDBG Loan Guarantees.--For any 
eligible State or entitlement area that, at the time of the receipt of 
grant amounts under this subtitle, has outstanding (or within which is 
located any eligible public entity, or any public entity designated by 
an eligible public entity, that has outstanding) any notes or 
obligations guaranteed under section 108 of the Housing and Community 
Development Act of 1974 (as such section was in effect immediately 
before the effective date under section 451), the receipt of such grant 
amounts by the State or entitlement area shall be considered to 
constitute a pledge by the State or area of such amounts and any grant 
to which the State or area may become eligible under this subtitle to 
assure the repayment of such notes and obligations. For purposes of 
this subsection, the term ``eligible public entity'' has the meaning 
given the term in section 108(o) of such Act (as in effect at such 
time).
    (k) Additional Eligible Uses for Indian Tribes.--Notwithstanding 
subsection (c), with respect to an Indian tribe that receives grant 
amounts under this subtitle, an activity shall be considered an 
eligible activity for purposes of this subtitle if the activity is--
            (1) an activity described in subsection (d), (e), or (f); 
        or
            (2) an activity to provide low-income housing on an Indian 
        reservation or other Indian area that, immediately before the 
        effective date under section 451, would have been eligible for 
        assistance under a contract between the Secretary of Housing 
        and Urban Development and an Indian housing authority the 
        United States Housing Act of 1937.

SEC. 405. BLOCK GRANT PLAN.

    (a) In General.--A block grant plan under this subsection is a 
written document that--
            (1) describes the long- and short-term objectives of the 
        State or entitlement area in using grant amounts provided under 
        this subtitle and section 421 and projected uses of such 
        amounts for the fiscal year;
            (2) in the case of a State that will distribute grant 
        amounts to units of general local government, describes the 
        method by which the State will conduct such distribution;
            (3) contains a certification by the chief executive officer 
        of the State or entitlement area that--
                    (A) grant amounts will be used only as provided in 
                this title;
                    (B) the State or entitlement area will comply with 
                the requirements of this title; and
                    (C) in the case of a State, the State will monitor 
                recipients of grant amounts distributed by the State to 
                ensure compliance with this title; and
            (4) contains a certification the grant and activities 
        funded with grant amounts will be administered and conducted in 
        conformity with the Civil Rights Act of 1964 and the Fair 
        Housing Act, and the State or entitlement area will 
        affirmatively further fair housing.
    (b) Effect of Statement of Objectives and Uses.--Descriptions 
provided pursuant to paragraph (1) and (2) of subsection (a) shall not 
be binding with respect to the use or distribution of grant amounts 
provided under this title.

SEC. 406. ALLOCATION OF BLOCK GRANT AMOUNTS.

    (a) In General.--For a fiscal year, the Director shall allocate the 
total amount available for allocation for such year for grants under 
this subtitle among eligible States and entitlement areas and for 
Indian tribes in accordance with this section. The Director shall 
determine the allocation for each eligible State using the formula in 
subsection (c) and the allocation for each entitlement area using the 
formula in subsection (d). The total amount available for grants under 
this subtitle for a fiscal year shall be the amount remaining from the 
total amount made available for use under this title in appropriation 
Acts for the year, after amounts are reserved for grants under subtitle 
B.
    (b) Set-Aside for Indian Tribes.--
            (1) In general.--For each fiscal year, of the total amount 
        available for the fiscal year for grants under this subtitle, 
        the Director shall reserve for grants to Indian tribes 1 
        percent of such amount.
            (2) Distribution to tribes.--The Director shall provide for 
        distribution of amounts reserved under paragraph (1) to Indian 
        tribes on the basis of a competition conducted pursuant to 
        specific criteria for the selection of Indian tribes to receive 
        such amounts. The criteria shall be contained in a regulation 
        promulgated by the Director after notice and public comment.
            (3) Civil rights compliance.--Assistance may not be 
        provided to an Indian tribe under this subsection unless the 
        tribe certifies to the Director that any program using such 
        assistance will be conducted and administered in conformity 
        with title II of the Civil Rights Act of 1968.
    (c) Allocation for States.--
            (1) In general.--Of the amount available for a fiscal year 
        for grants under this subtitle that remain after amounts are 
        reserved under subsection (b), the Director shall allocate 20 
        percent among the eligible States as provided in subsection 
        (e).
            (2) Distribution and use.--An eligible State receiving a 
        grant under this subtitle shall distribute grant amounts to 
        units of general local government located in nonentitlement 
        areas of the State to carry out eligible activities in 
        accordance with this title.
    (d) Allocation for Entitlement Areas.--Of the amount available for 
a fiscal year for grants under this subtitle that remain after amounts 
are reserved under subsection (b), the Director shall allocate 80 
percent to entitlement areas as provided in subsection (e).
    (e) Allocation Formula.--The Director shall establish procedures 
for allocating amounts to States and entitlement areas under this 
subsection, which shall allocate such amounts according to the formula 
under section 106 of the Housing and Community Development Act of 1974 
(as in effect immediately before the effective date under section 
108(a)) for allocating community development block grant amounts for 
States, metropolitan cities, and urban counties.

Subtitle B--Block Grants for Housing for Special Populations and Indian 
                                Housing

SEC. 421. BLOCK GRANTS FOR HOUSING FOR SPECIAL POPULATIONS.

    (a) In General.--For each fiscal year, of the total amount made 
available for use under this title in appropriation Acts for the year, 
the Director shall reserve for grants under this section 
$1,000,000,000. Using such amounts, the Director shall make a grant 
under this section for such fiscal year to each eligible State in the 
amount of the allocation for the State under subsection (b).
    (b) Allocation.--For each fiscal year the Director shall allocate 
amounts for grants under this section among eligible States according 
to a formula established by the Director to reflect each State's share 
of the total need among all States for housing for low-income families 
described in subsection (c), as identified by objective measures of 
inadequate housing supply for such families, substandard housing for 
such families, number of such families in housing likely to be in need 
of rehabilitation, costs of producing housing for such families, and 
other conditions.
    (c) Use of Amounts.--Amounts from a grant under this section may be 
used only to carry out affordable housing activities under section 
404(e) relating to affordable housing that is primarily or specifically 
for low-income elderly families, disabled families, or persons with 
acquired immunodeficiency syndrome or related diseases and their 
families. Such grant amounts shall be subject to the same restrictions 
applicable to grant amounts that are provided under section 402 and 
used for the purposes under this subsection.

SEC. 422. BLOCK GRANTS FOR INDIAN HOUSING.

    (a) In General.--For each fiscal year, of the total amount made 
available for use under this title in appropriation Acts for the year, 
the Director shall reserve for grants under this section an amount not 
exceeding the total amount provided in fiscal year 1995 for assistance 
under the United States Housing Act of 1937 for Indian housing 
authorities. Using such amounts, the Director shall make a grant under 
this section for such fiscal year to each eligible Indian housing 
authority in the amount of the allocation under subsection (b) for the 
Indian housing authority for the fiscal year.
    (b) Allocation.--The Director shall allocate amounts made available 
for grants under this section for a fiscal year among eligible Indian 
housing authorities as follows:
            (1) Transition period.--For each of fiscal years 1996, 
        1997, 1998, 1999, and 2000, the allocation for each eligible 
        Indian housing authority shall be an amount that bears the same 
        proportion to such total amount made available for the fiscal 
        year as the amount of assistance provided for fiscal year 1995 
        to such authority under the United States Housing Act of 1937 
        bears to the total amount of assistance provided for such 
        fiscal year under such Act to all Indian housing authorities.
            (2) Permanent rule.--For fiscal year 2001 and each fiscal 
        year thereafter, the Director shall allocate amounts for grants 
        under this section according to a formula established by the 
        Director to reflect each eligible Indian housing authority's 
        share of the total need among all Indian housing authorities 
        for affordable housing in areas served by such authorities, as 
        identified by objective measures of inadequate housing supply, 
        substandard housing, number of such families in housing likely 
        to be in need of rehabilitation, costs of producing housing, 
        and other conditions.
    (c) Use of Amounts.--Amounts from a grant under this section may be 
used only to carry out affordable housing activities under section 
404(e) to provide affordable housing on Indian reservations and other 
Indian areas. Such grant amounts shall be subject to the same 
restrictions applicable to grant amounts that are provided under 
section 402 and used for the purposes under this subsection.
    (d) Eligible Indian Housing Authorities.--For purposes of this 
section, the term ``eligible Indian housing authority'' means--
            (1) with respect to fiscal year 1996, 1997, 1998, 1999, or 
        2000, an entity that was operating as an Indian housing 
        authority on June 1, 1995, for purposes of the United States 
        Housing Act of 1937; and
            (2) with respect to any fiscal year thereafter, any Indian 
        housing authority.

        Subtitle C--General Provisions Relating to Block Grants

SEC. 431. OVERSIGHT.

    (a) State Activity Reports.--Each eligible State and entitlement 
area that receives grant amounts under this title for a fiscal year 
shall submit to the Director, in accordance with a schedule established 
by the Director, a report regarding the use of grant amounts provided 
to the State or area, which shall include--
            (1) an assessment of the relation of the use of grant 
        amounts to the objectives identified in the block grant plan of 
        the State or entitlement area for the fiscal year submitted 
        under section 405;
            (2) a description of accomplishments made by projects 
        funded with grant amounts; and
            (3) an evaluation of the extent to which the grant amounts 
        were used for activities benefiting low-income families.
    (b) Gao Audits.--A State, entitlement area, unit of general local 
government, Indian tribe, or Indian housing authority may receive grant 
amounts under this title only if the State, entitlement area, unit of 
general local government, tribe, or authority agrees that--
            (1) the Comptroller General of the United States may audit 
        the financial transactions of the State, area, unit, tribe, or 
        authority under the rules and regulations prescribed by the 
        Comptroller General, to the extent that such transactions 
        relate to grant amounts provided under this title; and
            (2) to facilitate such an audit, representatives of the 
        General Accounting Office shall have access to all books, 
        accounts, records, reports, files, and other papers, things, or 
        property belonging to or in use by such State, area, unit, 
        tribe, or authority pertaining to such financial transactions.

SEC. 432. REMEDIES FOR NONCOMPLIANCE.

    (a) In General.--If the Director determines, on the record and 
after opportunity for an agency hearing, that grant amounts provided to 
a State, entitlement area, Indian tribe, or Indian housing authority 
have been used in a manner substantially in violation of any provision 
of this title, the Director shall--
            (1) terminate grant payments under section 402 or 421 to 
        the State or entitlement area, terminate eligibility of the 
        tribe for amounts under section 406(b), or terminate grant 
        payments under section 422 to the Indian housing authority, as 
        applicable;
            (2) withhold from the State, entitlement area, tribe, or 
        Indian housing authority all or a portion of amounts to be made 
        available under this title to the State, area, tribe, or 
        authority;
            (3) reduce the amount of future payments under this title 
        to the State, area, tribe, or authority by an amount equal to 
        the amounts provided under this title that were not expended in 
        accordance with this title; or
            (4) limit the availability of amounts provided under this 
        title to programs, projects, or activities not affected by such 
        failure to comply.
    (b) Termination of Compliance Action.--If the Director takes action 
under subsection (a) with respect to a State, entitlement area, Indian 
tribe, or Indian housing authority, the Director shall, at time that 
the Director first determines that the State, area, tribe, or authority 
will comply with the provisions of this title--
            (1) in the case of action under subsection (a)(1), resume 
        payments of assistance under this title--
                    (A) to the State or entitlement area in the full 
                amount of the allocation under section 406 or 421 for 
                the State or entitlement area,
                    (B) to the Indian tribe in the full amount for 
                which the tribe is eligible under section 406(b), or
                    (C) to the Indian housing authority in the full 
                amount for which the authority is eligible under 
                section 422,
        as applicable;
            (2) in the case of action under subsection (a)(2), make 
        withheld amounts available to the State, entitlement area, 
        tribe, or authority, as the Director considers appropriate to 
        ensure that the State, tribe, or authority complies with the 
        provisions of this title; or
            (3) in the case of action under subsection (a)(4), release 
        such restrictions at the time that the Director first 
        determines that the State, entitlement area, tribe, or 
        authority will comply with the provisions of this title.
    (c) Deficit Reduction.--With respect to any fiscal year, any 
amounts allocated under section 406, 421, or 422 for a State, 
entitlement area, Indian tribe, or Indian housing authority that become 
available as a result of actions against the State, tribe, or authority 
under this section (not including amounts withheld), shall be covered 
into the General Fund of the Treasury of the United States.
    (d) Civil Action.--
            (1) Referral.--In lieu of, or in addition to, any action 
        authorized by subsection (a), if the Director has reason to 
        believe that a State, entitlement area, Indian tribe, or Indian 
        housing authority receiving amounts under this title has failed 
        to comply substantially with any provision of this title, the 
        Director may refer the matter to the Attorney General of the 
        United States with a recommendation that an appropriate civil 
        action be instituted.
            (2) Action.--Upon such a referral the Attorney General may 
        bring a civil action in any United States district court having 
        venue thereof for such relief as may be appropriate, including 
        an action to recover the amounts provided under this title 
        which were not expended in accordance with this title, or for 
        mandatory or injunctive relief.
    (e) Civil Action to Review of Remedial Actions.--Any State, 
entitlement area, Indian tribe, or Indian housing authority that 
receives notice under subsection (a) of the termination or reduction of 
payments under this title may, within 60 days after receiving such 
notice, file with the United States Court of Appeals for the circuit in 
which such State is located, or in the United States Court of Appeals 
for the District of Columbia, a petition for review of the Director's 
action. The petitioner shall forthwith transmit copies of the petition 
to the Director and the Attorney General of the United States, who 
shall represent the Director in the litigation.

SEC. 433. NONDISCRIMINATION.

    (a) In General.--No person in any State shall on the ground of 
race, color, national origin, religion, or sex be excluded from 
participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity funded in whole or in part 
with funds made available under this title. Any prohibition against 
discrimination on the basis of age under the Age Discrimination Act of 
1975 or with respect to an otherwise qualified handicapped individual 
as provided in section 504 of the Rehabilitation Act of 1973 shall also 
apply to any such program or activity.
    (b) Compliance.--Whenever the Director determines that a State or 
entitlement area to which a grant is made under this title has failed 
to comply with subsection (a), the Director shall notify the chief 
executive officer of the State or entitlement area of the noncompliance 
and shall request the chief executive officer to secure compliance. If 
within a reasonable period of time, not to exceed 60 days, the chief 
executive officer fails or refuses to secure compliance, the Director 
may--
            (1) refer the matter to the Attorney General with a 
        recommendation that an appropriate civil action be instituted;
            (2) exercise the powers and functions provided by title VI 
        of the Civil Rights Act of 1964;
            (3) take action under section 432; or
            (4) take such other action as may be provided by law.
    (c) Civil Action.--When a matter is referred to the Attorney 
General pursuant to subsection (b), or whenever the Attorney General 
has reason to believe that a State or entitlement area is engaged in a 
pattern or practice in violation of the provisions of this section, the 
Attorney General may bring a civil action in any appropriate United 
States district court for such relief as may be appropriate, including 
injunctive relief.
    (d) Exception Relating to Hawaiian Home Lands.--The provisions of 
this section and any certification of compliance with civil rights laws 
required under section 405 which relate to discrimination on the basis 
of race shall not apply to the provision of assistance with grant 
amounts to the Hawaiian Home lands.
    (e) Exception Relating to Indian Tribes.--The Director may waive 
the applicability of the provisions of this section in connection with 
assistance provided under section 406(b) to Indian tribes or under 
section 422 to Indian housing authorities.

SEC. 434. DEFINITIONS.

    For purposes of this subtitle and subtitles A and B, the following 
definitions shall apply:
            (1) Director.--The term ``Director'' means the Director of 
        the Housing and Community Opportunities Agency established 
        under subtitle D.
            (2) Indian area.--The term ``Indian area'' means the area 
        within which an Indian housing authority is authorized to 
        provide low-income housing.
            (3) Indian housing authority.--The term ``Indian housing 
        authority'' means any entity that--
                    (A) is authorized to engage in or assist in the 
                development or operation of low-income housing for 
                Indians; and
                    (B) is established--
                            (i) by exercise of the power of self-
                        government of an Indian tribe independent of 
                        State law; or
                            (ii) by operation of State law providing 
                        specifically for housing authorities for 
                        Indians, including regional housing authorities 
                        in the State of Alaska.
            (4) Indian tribe.--The term ``Indian tribe'' means any 
        Indian tribe, band, group, and nation, including Alaska 
        Indians, Aleuts, and Eskimos, and any Alaskan Native Village, 
        of the United States, which is considered an eligible recipient 
        under the Indian Self-Determination and Education Assistance 
        Act (Public Law 93-638) or was considered an eligible recipient 
        under chapter 67 of title 31, United States Code, prior to the 
        repeal of such chapter.
            (5) Low-income family.--The term ``low-income family'' has 
        the meaning given the term in subtitle B of title II.
            (6) Metropolitan city.--The term ``metropolitan city'' has 
        the same meaning given the term in section 102(a) of the 
        Housing and Community Development Act of 1974 (as in effect 
        immediately before the effective date under section 108(a) of 
        this Act).
            (7) Nonentitlement area.--The term ``nonentitlement area'' 
        means an area which is not a metropolitan city or part of an 
        urban county and does not include Indian tribes.
            (8) State.--The term ``State'' means any State of the 
        United States, or any instrumentality thereof approved by the 
        chief executive officer, and the Commonwealth of Puerto Rico.
            (9) Unit of general local government.--The term ``unit of 
        general local government'' means--
                    (A) any city, county, town, township, parish, 
                village, or other general purpose political subdivision 
                of a State;
                    (B) Guam, the Northern Mariana Islands, the Virgin 
                Islands, and American Samoa, or a general purpose 
                political subdivision thereof;
                    (C) a combination of such political subdivisions 
                that is recognized by the Director; and
                    (D) the District of Columbia and the Trust 
                Territory of the Pacific Islands.
            (10) Urban county.--The term ``urban county'' has the same 
        meaning given the term in section 102(a) of the Housing and 
        Community Development Act of 1974 (as in effect immediately 
        before the effective date under section 108(a) of this Act).

SEC. 435. REGULATIONS.

    The Director may issue any regulations necessary to carry out this 
subtitle and subtitles A and B.

SEC. 436. FUNDING.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated for grants under this title the following amounts:
            (1) For fiscal year 1996, $5,000,000,000.
            (2) For fiscal year 1997, $4,500,000,000.
            (3) For fiscal year 1998, $4,000,000,000.
            (4) For fiscal year 1999, $3,500,000,000.
            (5) For fiscal year 2000, $3,000,000,000.
    (b) Limitation.--The aggregate amount of grants provided under this 
title in any single fiscal year beginning after fiscal year 1999 may 
not exceed $3,000,000,000.

SEC. 437. REPEALS.

    (a) Repeals.--The following provisions of law are hereby repealed:
            (1) CDBG and udag.--Title I of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5301 et seq.).
            (2) CDBG assistance for colonias.--Section 916 of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        5306 note).
            (3) Youthbuild.--Subtitle D of title IV of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et 
        seq.).
            (4) Neighborhood development.--Section 123 of the Housing 
        and Urban-Rural Recovery Act of 1983 (42 U.S.C. 5318 note).
            (5) Community outreach partnerships.--Section 851 of the 
        Housing and Community Development Act of 1992 (42 U.S.C. 5307 
        note).
            (6) HOME.--Titles I and II of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12704 et seq.).
            (7) National homeownership trust.--Subtitle A of title III 
        of the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 12851 et seq.).
            (8) Housing counseling.--Subsection (e) of section 101 and 
        section 106, of the Housing and Urban Development Act of 1968 
        (12 U.S.C. 1701w, 1701x)).
            (9) Housing for elderly families.--Sections 202 and 202a of 
        the Housing Act of 1959 (12 U.S.C. 1701q, 1701q-1).
            (10) Elder cottage housing unit demonstration.--Section 806 
        of the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 1701q note).
            (11) Housing for disabled families.--Section 811 of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        8013).
            (12) Hope homeownership programs.--Sections 401 and 402, 
        and subtitles B and C of title IV, of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 1437aaa note, 12870 
        et seq.).
            (13) Indian housing loan guarantees.--Section 184 of the 
        Housing and Community Development Act of 1992 (12 U.S.C. 1515z-
        13a).
            (14) Lead-based paint hazard reduction grants.--Section 
        1011 and part 1 of subtitle D of title X of the Housing and 
        Community Development Act of 1992 (42 U.S.C. 4852, 4854 et 
        seq.).
            (15) Homeless housing and shelter assistance.--Titles III 
        and IV of the Stewart B. McKinney Homeless Assistance Act (42 
        U.S.C. 11311 et seq.).
            (16) Innovative homeless initiatives demonstration.--
        Section 2 of the HUD Demonstration Act of 1993 (42 U.S.C. 11301 
        note).
            (17) Housing opportunities for persons with aids.--Subtitle 
        D of title VIII of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 12901 et seq.).
            (18) Congregate services.--Section 802 of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 8011) and 
        title IV of the Housing and Community Development Amendments of 
        1978 (42 U.S.C. 8001 et seq.).
    (b) Savings Provision.--Nothing in this section may be construed to 
affect the validity of any right, duty, or obligation of the United 
States or other person arising under or pursuant to any commitment or 
agreement entered into before the effective date under section 451 
under any provision repealed by subsection (a) of this section.
    (c) Treatment of Previously Obligated Assistance.--Notwithstanding 
subsection (a), any amounts appropriated to carry out the provisions 
repealed by subsection (a) that are obligated before the effective date 
under section 451 shall be used in the manner provided, and subject to 
any requirements and agreements entered into, under such provisions (as 
such provisions were in effect immediately before the repeal under 
subsection (a)).

         Subtitle D--Housing and Community Opportunities Agency

SEC. 441. ESTABLISHMENT.

    There is hereby established as an independent establishment in the 
executive branch of the Government to be known as the Housing and 
Community Opportunities Agency (in this subtitle referred to as the 
``Agency'').

SEC. 442. DIRECTOR.

    (a) Appointment.--There shall be at the head of the Housing and 
Community Opportunities Agency a Director, who shall be appointed by 
the President, by and with the advice and consent of the Senate. The 
Agency shall be administered under the supervision and direction of the 
Director.
    (b) Compensation at Level IV of Executive Schedule.--Section 5315 
of title 5, United States Code, is amended by inserting at the end the 
following new item:
            ``Director, Federal Housing and Community Opportunities 
        Agency.''.

SEC. 443. DUTIES.

    The Director shall be responsible for administration of the block 
grant programs under subtitles A, B, and C.

SEC. 444. PERSONNEL.

    (a) Appointment.--The Director may select, appoint, employ, and fix 
the compensation of any officers and employees necessary to carry out 
the functions of the Director, subject to the provisions of title 5, 
United States Code governing appointments in the competitive service, 
and shall be paid in accordance with the provisions of chapter 51 and 
subchapter II of chapter 53 of such title relating to classification 
and General Schedule pay rates.
    (b) Transfer.--
            (1) In general.--The Director may, in coordination with the 
        Administrator of the Housing and Urban Development Programs 
        Resolution Agency, transfer personnel employed by the 
        Department of Housing and Urban Development in connection with 
        programs repealed under section 437 to fill positions 
        established by the Director, except that, the provisions of 
        section 3324 of title 5, United States Code, shall apply with 
        respect to transfers to positions in grade levels above GS-15.
            (2) Effect.--Any full-time or part-time personnel employed 
        in permanent positions shall not be separated or reduced in 
        grade or compensation because of a transfer under this 
        subsection during the 1-year period beginning upon the date of 
        the enactment of this Act.

SEC. 445. ADMINISTRATIVE PROVISIONS.

    The Director may--
            (1) issue any regulations the Director considers necessary 
        to carry out the functions of the Director;
            (2) organize the Agency as the Director determines 
        necessary or appropriate, subject to the provisions of this 
        subtitle;
            (3) except as otherwise provided by law, delegate any 
        function of the Director to the officers and employees of the 
        Agency as the Director may designate, and may authorize 
        successive redelegations of such functions as the Director 
        considers necessary or appropriate; except that the delegation 
        of functions under this paragraph shall not relieve the 
        Director of responsibility for the administration of such 
        functions;
            (4) procure temporary and intermittent services in 
        accordance with section 3109 of title 5, United States Code;
            (5) accept and use gifts, bequests, and donations of 
        property;
            (6) use the United States mails in the same manner and 
        under the same conditions as other departments and agencies of 
        the United States;
            (7) subject to the provisions of the Federal Property and 
        Administrative Services Act of 1949, make, enter into, and 
        perform such contracts, grants, leases, cooperative agreements, 
        or other similar transactions and make such payments as the 
        Director determines necessary or appropriate to carry out the 
        functions of the Agency; except that the authority to enter 
        into contracts and to make payments shall be effective only to 
        such extent or in such amounts as are provided in appropriation 
        Acts; and
            (8) cause a seal of office to be made for the Agency of 
        such design as the Director shall approve, and judicial notice 
        shall be taken of the seal.
SEC. 446. REPORT.

    After the conclusion of each fiscal year, the Director shall submit 
to the Congress a report regarding the activities of the Agency during 
the fiscal year. The report shall include descriptions of the amounts 
allocated for each State, for Indian tribes, and for Indian housing 
authorities under the block grant programs under subtitles A, B, and C, 
any actions taken by the Director under section 432, and the operations 
and personnel needs of the Agency.

                       Subtitle E--Effective Date

SEC. 451. EFFECTIVE DATE.

    (a) In General.--Except provided in subsection (b), this title 
shall take effect, and the amendments under this title shall be made 
and shall apply, on the effective date under section 108(a).
    (b) Provisions Effective on Date of Enactment.--Section 442 shall 
take effect on the date of the enactment of this Act.
           TITLE V--SINGLE FAMILY HOUSING MORTGAGE INSURANCE

          Subtitle A--Federal Home Mortgage Insurance Program

SEC. 501. FEDERAL HOME MORTGAGE INSURANCE FUND.

    (a) In General.--There is hereby established in the Treasury of the 
United States a fund to be known as the Federal Home Mortgage Insurance 
Fund, which shall consist of such amounts as may be appropriated or 
credited to such Fund, as provided in this section. The Fund shall be 
under the sole administration of the Administrator of the Federal Home 
Mortgage Insurance Fund, appointed under section 532.
    (b) Use.--Amounts in the Fund shall be available only for the 
purposes of--
            (1) the payment to qualified mortgage insurers of claims 
        for losses under risk-sharing agreements entered into under 
        this subtitle;
            (2) the payment of claim notes issued under subsection 
        (f)(2) of this section;
            (3) investment as provided under subsection (d); and
            (4) annual assessments under section 1394 of the Housing 
        and Community Development Act of 1992 for costs of the Office 
        of Federal Housing Enterprise Oversight of the Department of 
        the Treasury for carrying out subtitle F of title XIII of such 
        Act.
    (c) Credits.--There are hereby appropriated to the Fund amounts 
equivalent to--
            (1) any premium payments for mortgage insurance that are 
        paid to the Fund Administrator by qualified mortgage insurers 
        under section 505(f)(2);
            (2) the first $500,000,000 of proceeds from any sales of 
        FHA single family mortgage insurance interests conducted under 
        section 553; and
            (3) any interest on, and proceeds from, the sale or 
        redemption of any obligation purchased pursuant to subsection 
        (d).
    (d) Investment.--Amounts in the Fund not necessary, in the 
determination of the Fund Administrator, for the current operations of 
the Fund shall be invested in interest-bearing obligations of, or 
interest-bearing obligations guaranteed as to principal and interest 
by, the United States or any agency of the United States.
    (e) Limitation on Liability of United States.--
            (1) General rule.--Any claim against the Fund Administrator 
        or the Federal Government resulting from a risk-sharing 
        agreement or insurance coverage provided pursuant to this 
        subtitle may be paid only out of the Fund.
            (2) Rule of construction.--Nothing in this title may be 
        construed to authorize the payment by the United States 
        Government of any amount with respect to any such claim out of 
        any source other than the Fund.
    (f) Insufficient Amounts.--
            (1) Priority of claims.--If at any time the amounts in the 
        Fund are insufficient to pay all of the claims on the Fund out 
        of the Fund at such time, such claims shall, to the extent 
        permitted under subsection (e)(1) be paid in full in the order 
        in which such claims are finally determined.
            (2) Claim note.--In the case of any claim against the Fund 
        for which amounts in the Fund are insufficient to pay the 
        claim, the Fund Administrator shall issue to the qualified 
        mortgage insurer making the claim a note in the amount of the 
        deficiency, as determined by the Fund Administrator. A claim 
        note issued under this section shall be an obligation only of 
        the Fund, shall not constitute a debt or obligation backed by 
        the full faith or credit of the United States, and shall 
        clearly indicate on the note such extent and limitation of the 
        obligation.
    (g) Actuarial Study.--The Fund Administrator shall provide for an 
independent actuarial study of the Fund to be conducted annually and 
shall report annually to the Congress regarding the financial status of 
the Fund.
    (h) Oversight.--The Director of the Office of Federal Housing 
Enterprise Oversight (as reestablished under section 122 of this Act) 
shall monitor the safety and soundness of the Fund, as provided in 
subtitle F of title XIII of the Housing and Community Development Act 
of 1992.

SEC. 502. AUTHORITY TO ENTER INTO RISK-SHARING AGREEMENTS FOR MORTGAGE 
              INSURANCE COVERAGE.

    (a) In General.--On and after the date under subsection (b), the 
Fund Administrator may enter into risk-sharing agreements under this 
subtitle with qualified mortgage insurers providing for the insurance 
of qualified mortgages, in accordance with this subtitle.
    (b) Commencement of Business.--The date under this subsection is 
the first date by which both of the following actions have occurred:
            (1) Minimum amount.--The Fund Administrator has determined 
        that amounts in the Fund exceed $100,000,000.
            (2) Notice.--The Fund Administrator certifies in writing to 
        the Congress and the President that amounts in the Fund exceed 
        $100,000,000.

SEC. 503. QUALIFIED MORTGAGES.

    (a) In General.--For purposes of this subtitle, the term 
``qualified mortgage'' means a mortgage on a single family home to be 
used as the principal residence of the mortgagor that meets the 
following requirements:
            (1) Qualified mortgagee.--The mortgage is made to, and held 
        by, a qualified mortgagee.
            (2) Underwriting.--The mortgage meets any underwriting 
        criteria established under section 505(c).
            (3) Eligible mortgagors and properties.--The mortgage is 
        executed--
                    (A) in connection with the acquisition of the 
                single family home by a mortgagor who--
                            (i) is a first-time homebuyer; and
                            (ii) has an income, at the time of 
                        insurance, not exceeding 125 percent of the 
                        median income for the area in which the 
                        property subject to the mortgage is located;
                    (B) has an income, at the time of insurance, not 
                exceeding 80 percent of the median income for the area 
                in which the property subject to the mortgage is 
                located;
                    (C) in connection with the acquisition of the 
                single family home--
                            (i) that is located in an area that, at the 
                        time of insurance, is an economically 
                        distressed area (as determined under subsection 
                        (c)); and
                            (ii) by a mortgage who has an income, at 
                        the time of insurance, not exceeding 125 
                        percent of the median income for the area in 
                        which the property subject to the mortgage is 
                        located; or
                    (D) for the refinancing of a mortgage previously 
                insured under a risk-sharing agreement that has an 
                original principal obligation not exceeding 150 percent 
                of the amount of the outstanding principal obligation 
                of the mortgage refinanced.
            (4) Loan-to-value ratio.--The mortgage involves an original 
        principal obligation in an amount that does not exceed 97 
        percent of the appraised value of the property, as of the date 
        the mortgage is accepted for insurance.
    (b) Qualified Mortgagees.--The Fund Administrator, in consultation 
with qualified mortgage insurers and representatives of interested 
institutional mortgage investors shall establish standards for 
mortgagees eligible to make and hold mortgages insured a risk-sharing 
agreement under this subtitle. In establishing such standards, the Fund 
Administrator and such other entities shall take into consideration 
mortgagee eligibility standards established by the Secretary of Housing 
and Urban Development for participation in the single family housing 
mortgage insurance program under title II of the National Housing Act.
    (c) Economically Distressed Areas.--For purposes of this subtitle, 
the term ``economically distressed area'' means a geographical area--
            (1) for which the decline, over the most recent 12 months, 
        in the number of residents of the area who are employed exceeds 
        2.5 percent of the total number of residents of the area; and
            (2) that--
                    (A) is located within a metropolitan statistical 
                area, as defined by the Office of Management and 
                Budget, and has a population of not less than 40,000 or 
                such other population as the Fund Administrator 
                considers appropriate for purposes of this subtitle; or
                    (B) is located outside of a metropolitan 
                statistical area and has a population, as determined by 
                the most recent census data available, of not less than 
                30,000.
    (d) Income and Median Area Income.--For purposes of this section, 
incomes shall be determined in the manner in which incomes are 
determined under title II and the Fund Administrator shall utilize the 
same areas for which median area income is determined under such title 
and the median area incomes so determined.

SEC. 504. INSURANCE COVERAGE.

    (a) Authority.--To the extent provided in a risk-sharing agreement 
under this subtitle, the qualified mortgage insurer under the agreement 
may make commitments to insure, and provide mortgage insurance coverage 
under this section for, qualified mortgages. Mortgage insurance under 
this subtitle may be provided only for qualified mortgages.
    (b) Extent of Coverage.--
            (1) Limitation.--The portion of a mortgage insured under a 
        risk-sharing agreement under this subtitle may not exceed 35 
        percent of the amount of the outstanding principal obligation 
        of the qualified mortgage (and such fees, interest, and other 
        expenses determined by the Secretary to be appropriate).
            (2) Determination.--Subject to paragraph (1), the Fund 
        Administrator may establish maximum percentage limitations of 
        the outstanding principal obligation of a qualified mortgage 
        that mortgage insurance provided pursuant to a risk-sharing 
        agreement may cover. In establishing such limitations, the Fund 
        Administrator shall consult with mortgage insurers and other 
        interested parties and take into consideration any audits of 
        the Comptroller General under section 536(a), and the report of 
        the Comptroller General under section 536(b).
            (3) Separate limitations.--The Fund Administrator may 
        determine separate maximum percentage limitations under 
        paragraph (2) for various categories of mortgages, based on 
        loan-to-value ratios.
            (4) Effective date.--A maximum percentage limitation 
        established under this subsection by the Fund Administrator 
        shall take effect upon the expiration of the 30-day period 
        beginning upon the Fund Administrator providing written notice 
        to the Congress of the establishment of such limitation.
    (c) Mortgage Insurance Premiums.--For each qualified mortgage 
covered by mortgage insurance provided pursuant to a risk-sharing 
agreement, the qualified mortgage insurer shall charge and collect 
annual premiums for the insurance during the term of the mortgage. The 
Fund Administrator and the qualified mortgage insurer shall establish 
the amount of the premiums to be paid for mortgages insured under this 
subtitle under a risk-sharing agreement, except that the amount of such 
premiums may not exceed, on a net present value basis,
 the amount of premiums charges in effect on June 1, 1995, for mortgage 
insurance under section 203 of the National Housing Act.
    (d) Payment of Insurance.--A claim under mortgage insurance 
provided under this section shall be paid by the Fund Administrator and 
the qualified mortgage insurer to the claimant in the manner and under 
the conditions provided for under the risk-sharing agreement.
    (e) Obligation of Fund.--The insurance of a qualified mortgage 
pursuant to a risk-sharing agreement shall be an obligation only of the 
qualified mortgage insurer writing the insurance and the Fund and shall 
not be a debt or obligation backed by the full faith and credit of the 
United States.

SEC. 505. RISK-SHARING AGREEMENTS.

    (a) Eligible Mortgage Insurers.--The Fund Administrator may enter 
into a risk-sharing agreement under this subtitle only with a qualified 
mortgage insurer.
    (b) Shared-Risk Mortgage Insurance.--
            (1) In general.--A risk-sharing agreement under this 
        subtitle shall be a written agreement entered into by the Fund 
        Administrator and a qualified mortgage insurer pursuant to 
        which mortgage insurance meeting the requirements of section 
        504 may be provided for qualified mortgages in a manner such 
        that each such party to the agreement insures a portion of the 
        insurance risk under each mortgage so insured (in the amounts 
        established pursuant to subsection (d)) and is severally liable 
        for the portion so insured.
            (2) Limitation on amount.--Each risk-sharing agreement 
        shall establish limitations on the aggregate principal amount 
        of the mortgages that may be insured under the agreement, 
        taking into account the limitation under section 508(b).
    (c) Underwriting Standards.--
            (1) Requirement.--Each risk-sharing agreement shall ensure 
        that each mortgage insured pursuant to the agreement shall meet 
        such underwriting standards as may be established under this 
        subsection. Such standards shall include standards for quality, 
        type, and class of mortgages, debt-to-income ratio, downpayment 
        amount, and other loan terms and conditions.
            (2) Establishment.--Standards under this subsection may be 
        established--
                    (A) by regulation by the Fund Administrator, for 
                all mortgages insured under all risk-sharing 
                agreements, after consultation with qualified mortgage 
                insurers and representatives of interested 
                institutional mortgage investors; and
                    (B) by terms and conditions of a risk-sharing 
                agreement (but only to the extent consistent with 
                regulations issued under subparagraph (A)), for the 
                mortgages insured under the particular risk-sharing 
                agreement.
            (3) Affordable housing targeting.--Any standards 
        established under this subsection shall be based primarily on 
        any mortgage underwriting standards established by the Federal 
        National Mortgage Association and the Federal Home Loan 
        Mortgage Corporation with respect to mortgages purchased by 
        such enterprises in furtherance of the housing goals 
        established under subpart B of part 2 of subtitle A of the 
        Federal Housing Enterprises Financial Safety and Soundness Act 
        of 1992.
            (4) Refinancing requirements.--At a minimum, the Fund 
        Administrator shall establish standards by regulation under 
        paragraph (2)(A) that require that, in the case of a qualified 
        mortgage under section 503(a)(3)(D), an appraisal shall be 
        conducted in connection with the execution of such refinancing 
        mortgage to determine the value of the residence for purposes 
        of any loan-to-value limitation or other limitation established 
        under such standards that takes into consideration the value of 
        the residence.
    (d) Treatment of Losses.--
            (1) In general.--Each risk-sharing agreement shall provide 
        that losses resulting from the defaults on qualified mortgages 
        insured pursuant to the agreement shall be apportioned in 
        accordance with the standards established under this 
        subsection.
            (2) Determination.--The Fund Administrator shall establish 
        standards for the apportionment of losses under risk-sharing 
        agreements to the qualified mortgage insurer under the 
        agreement and the Fund. In establishing such standards, the 
        Fund Administrator shall consult with mortgage insurers and 
        other interested parties and take into consideration any audits 
        of the Comptroller General under section 536(a), and the report 
        of the Comptroller General under section 536(b).
            (3) Separate limitations.--The Fund Administrator may 
        establish separate standards under this subsection for the 
        apportionment of losses for various categories of mortgages, 
        based on--
                    (A) the categories under subparagraphs (A), (B), 
                (C), and (D) of section 503(a)(3); and
                    (B) the extent of the loss.
            (4) Effective date.--A standard for the apportionment of 
        losses established under this subsection by the Fund 
        Administrator shall take effect upon the expiration of the 30-
        day period beginning upon the Fund Administrator providing 
        written notice to the Congress of the establishment of such 
        standard.
    (e) Definition of Losses.--For purposes of this section, the term 
``losses'' means the sum of any amounts paid under claims for insurance 
coverage pursuant to risk-sharing agreements (less any amounts 
recovered by the mortgage insurer from disposition of insured 
properties conveyed pursuant to payment of insurance and collection on 
claims against mortgagors) and any costs incurred for administration, 
maintenance, repair, taxes, and other holding costs relating to insured 
properties.
    (f) Mortgage Insurance Premiums.--Each risk-sharing agreement shall 
provide that the mortgage insurer shall--
            (1) collect, for each mortgage insured pursuant to the 
        agreement, annual premium payments in accordance with section 
        504(c); and
            (2) pay to the Fund Administrator an amount of the premium 
        payments collected that is commensurate with the apportionment 
        of losses provided for under the agreement pursuant to 
        subsection (d), as determined by the insurer and the Fund 
        Administrator.
    (g) Administrative Fee.--Each risk-sharing agreement shall provide 
that the qualified mortgage insurer may retain an amount of any premium 
payments collected under subsection (f) to cover administrative 
expenses involved in underwriting and administrating mortgage insurance 
coverage under this subtitle, as agreed to by the Fund Administrator 
and the mortgage insurer. The Fund Administrator may establish 
standards for such provisions regarding retention of amounts for 
administrative expenses.
    (h) Allowance for Losses.--Each risk-sharing agreement shall 
provide that any amounts owed to the qualified mortgage insurer because 
the insurer has paid claims on insurance that include losses 
attributable to the Fund (in accordance with subsection (e)) may be 
recovered by the insurer from premiums subsequently collected by the 
insurer or from the Fund Administrator.
    (i) Disposition of Properties and Collection Against Claims.--Each 
risk-sharing agreement shall provide that the qualified mortgage 
insurer shall--
            (1) provide for the sale, rent, or other disposition of 
        properties conveyed to the insurer in exchange for payment of 
        the benefit of insurance coverage; and
            (2) pursue to final collection all claims against 
        mortgagors assigned to the mortgage insurer by mortgagees 
        pursuant to the payment of the benefit of insurance coverage.
    (j) Administration of Book-of-Business Basis.--Each risk-sharing 
agreement shall provide that any calculations regarding premiums 
collected, losses incurred, amounts to be transferred between the Fund 
Administrator or the qualified mortgage insurer, and any payments 
relating to such calculations shall be made on a book-of-business basis 
and according to such schedules as are agreed to by the Fund 
Administrator and the qualified mortgage insurer.
    (k) Responsibilities of Mortgage Insurer.--Each risk-sharing 
agreement shall provide that the qualified mortgage insurer providing 
mortgage insurance coverage under the agreement shall carry out all 
functions relating to--
            (1) determining whether a mortgagee is a qualified 
        mortgagee;
            (2) determining whether a mortgage is a qualified mortgage;
            (3) making commitments for and providing mortgage 
        insurance;
            (4) all other underwriting functions for mortgage 
        insurance;
            (5) collection of insurance premiums;
            (6) payment to mortgagees of the benefits of insurance; and
            (7) settlement of claims under mortgage insurance coverage.
    (l) Annual Audit and Report.--Each risk-sharing agreement shall 
provide for the qualified mortgage insurer--
            (1) to conduct, on an annual basis, an audit of the 
        operations of the insurer with respect to insurance written 
        pursuant to the agreement and the compliance of the insurer 
        with the requirements of this subtitle and the agreement; and
            (2) to submit to the Fund Administrator a report regarding 
        such audit.

SEC. 506. REQUIREMENTS FOR QUALIFIED MORTGAGE INSURERS.

    (a) In General.--The Fund Administrator shall, by regulation, 
establish standards to ensure that any mortgage insurer with whom the 
Fund Administrator enters into risk-sharing agreements under this 
subtitle has received, from a nationally recognized statistical rating 
agency, a rating on its obligations of ``AA'' or better, or any 
equivalent designation sufficient to indicate that the insurer operates 
financially in a safe and sound manner.
    (b) Inclusion and Participation of State and Local Housing 
Agencies.--For purposes of this subtitle, a qualified mortgage insurer 
may include a State or local housing finance agency or other housing 
agency of a State or local government or a private insurer coordinating 
with such an agency to enter into a risk-sharing agreement under this 
subtitle.
    (c) Records.--The Fund Administrator may require, under such 
standards, that a mortgage insurer make available to the Fund 
Administrator at the Fund Administrator's request, such financial and 
other records as the Fund Administrator considers necessary for 
purposes of this title. The Fund Administrator may not make available 
to the public or otherwise disclose any information or records obtained 
under this subsection that is not otherwise publicly available.

SEC. 507. DEFINITIONS.

    For purposes of this subtitle, the following definitions shall 
apply:
            (1) First mortgage.--The term ``first mortgage'' means such 
        classes of first liens as are commonly given to secure advances 
        on, or the unpaid purchase price of, real estate under the laws 
        of the State in which the real estate is located, together with 
        the credit instrument, if any, secured thereby.
            (2) First-time homebuyer.--The term ``first-time 
        homebuyer'' means any individual who (and whose spouse) has not 
        had any present ownership in a principal residence during the 
        3-year period ending on the date of the purchase by the 
        individual of any principal residence with a mortgage insured 
        pursuant to a risk-sharing agreement.
            (3) Fund.--The term ``Fund'' means the Federal Home 
        Mortgage Insurance Fund established under section 501.
            (4) Mortgage.--The term ``mortgage'' means a first mortgage 
        on real estate, in fee simple, or on a leasehold under a lease 
        for not less than 99 years which is renewable or under a lease 
        having a period of not less than 10 years to run beyond the 
        maturity date of the mortgage. The term includes--
                    (A) a first lien given (in accordance with the laws 
                of the State where the property is located) to secure a 
                loan made to finance the purchase of stock or 
                membership in a cooperative ownership housing 
                corporation the permanent occupancy of dwelling units 
                of which is restricted to members of such corporation, 
                where the purchase of such stock or membership will 
                entitle the purchaser to the permanent occupancy of one 
                of such units;
                    (B) a first lien given (in accordance with the laws 
                of the State where the property is located) to secure a 
                loan made to finance the purchase of a fee interest in, 
                or long-term leasehold interest in, a 1-family unit in 
                a multifamily project, including a project in which the 
                units are detached, semi-detached, or attached, and an 
                undivided interest in the common areas and facilities 
                which serve the project; and
                    (C) loans and advances of credit for the purchase 
                of financing the purchase of a manufactured home or the 
                lot on which to place such home and paying expenses 
                reasonably necessary for the appropriate preparation of 
                such lot for the placement of such home.
        The term includes graduated-payment, growing-equity, adjustable 
        rate, and shared-appreciation mortgages, as such terms are 
        defined by the Fund Administrator.
            (5) Mortgage insurer.--The term ``mortgage insurer'' means 
        any person or legal entity that is authorized to transact, in 
        any State, the business of insurance against the nonpayment of, 
        or default on, a mortgage or loan for residential property.
            (6) Mortgagee.--The term ``mortgagee'' includes the 
        original lender under a mortgage and the successors and assigns 
        of the original lender, and includes the holders of credit 
        instruments issued under a trust mortgage or deed of trust 
        pursuant to which such holders act by and through a trustee 
        therein named.
            (7) Qualified mortgage insurer.--The term ``qualified 
        mortgage insurer'' means a mortgage insurer that the Fund 
        Administrator has determined complies with the standards 
        established under section 506.
            (8) Qualified mortgagee.--The term ``qualified mortgagee'' 
        means a mortgagee that complies with the standards established 
        pursuant to section 503(b).
            (9) Risk-sharing agreement.--The term ``risk-sharing 
        agreement'' means an agreement
         under section 505 between the Fund Administrator and a 
qualified mortgage insurer.
            (10) Single family home.--The term ``single family home'' 
        means a 1- to 4-family residence.
            (11) State.--The term ``State'' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, and any other 
        territory or possession of the United States.

SEC. 508. LIMITATION ON COMMITMENTS TO INSURE MORTGAGES.

    (a) Budget Act Compliance.--The authority of the Fund Administrator 
to enter into risk-sharing agreements to insure mortgages under this 
subtitle shall be effective for any fiscal year only to such extent or 
in such amounts as are or have been provided in appropriation Acts for 
such fiscal year.
    (b) Maximum Principal Amount Limitation.--Notwithstanding any other 
provision of law and subject only to the authority provided in this 
title and the limitation under subsection (a), the Fund Administrator 
may, during the period consisting of fiscal year 1996 through 2000, 
enter into commitments under risk-sharing agreements to provide 
mortgage insurance for mortgages having an aggregate insured principal 
amount of $500,000,000,000.

    Subtitle B--Federal Home Mortgage Insurance Fund Administration

SEC. 531. ESTABLISHMENT.

    (a) In General.--There is hereby established an office within the 
Department of the Treasury, which shall be known as the Federal Home 
Mortgage Insurance Fund Administration.
    (b) Continuance.--Notwithstanding any other provision of law or any 
authority of the Secretary of the Treasury, the Secretary may not merge 
or consolidate the Administration, or any functions or responsibilities 
of the Administration, with any other function or program administered 
by the Secretary.

SEC. 532. FUND ADMINISTRATOR.

    (a) Appointment.--The Administration shall be under the management 
of the Administrator of the Federal Home Mortgage Insurance Fund, who 
shall be appointed by the President, by and with the advice and consent 
of the Senate, from among individuals who are citizens of the United 
States, have a demonstrated understanding of the private mortgage 
insurance industry, the secondary mortgage markets, and housing finance 
(including finance activities of State and local housing finance 
agencies).
    (b) Term.--The Fund Administrator shall be appointed for a term of 
8 years.
    (c) Vacancy.--A vacancy in the position of Fund Administrator shall 
be filled in the manner in which the original appointment was made 
under subsection (a).
    (d) Service After End of Term.--A Fund Administrator may serve 
after the expiration of the term for which the Fund Administrator was 
appointed until a successor Fund Administrator has been appointed.

SEC. 533. DUTY AND AUTHORITY OF FUND ADMINISTRATOR.

    (a) Duty.--The duties of the Fund Administrator shall be--
            (1) to administer the Federal Home Mortgage Insurance Fund 
        under section 501;
            (2) to carry out the responsibilities under subtitle A with 
        respect to risk-sharing agreements;
            (3) to exercise, pursuant to section 554, the authority and 
        functions of the Secretary of Housing and Urban Development 
        under the Single Family Mortgage Foreclosure Act of 1994 and 
        the Multifamily Mortgage Foreclosure Act of 1981; and
            (4) to exercise any other authority and functions of the 
        Secretary of Housing and Urban Development transferred under 
        subtitle C.
    (b) Delegation of Authority.--The Fund Administrator may delegate 
to officers and employees of the Administration any of the functions, 
powers, and duties of the Fund Administrator, as the Fund Administrator 
considers appropriate.

SEC. 534. PERSONNEL.

    (a) Hiring Authority.--The Fund Administrator may appoint and fix 
the compensation of such officers and employees of the Administration 
as the Fund Administrator considers necessary to carry out the 
functions of the Fund Administrator and the Administration, subject to 
the provisions of title 5, United States Code governing appointments in 
the competitive service, and in accordance with the provisions of 
chapter 51 and subchapter II of chapter 53 of such title relating to 
classification and General Schedule pay rates.
    (b) Personnel of Other Federal Agencies.--In carrying out the 
duties of the Administration, the Fund Administrator may use 
information, services, staff, and facilities of any executive agency, 
independent agency, or department on a reimbursable basis, with the 
consent of such agency or department.
    (c) Reimbursement of Treasury.--The Fund Administrator shall 
reimburse the Department of the Treasury for reasonable costs incurred 
by the Department that are directly related to the operations of the 
Administration.
    (d) Outside Experts and Consultants.--Notwithstanding any provision 
of law limiting pay or compensation, the Fund Administrator may appoint 
and compensate such outside experts and consultants as the Fund 
Administrator determines necessary to assist the work of the 
Administration.

SEC. 535. REPORTS.

    The Fund Administrator shall submit a report to the Congress 
annually describing--
            (1) the provisions and extent of risk-sharing agreements 
        entered into under subtitle A by the Fund Administrator during 
        the year for which the report is made;
            (2) the number, types, amounts, and characteristics of 
        borrowers under mortgages insured during such year pursuant to 
        such risk-sharing agreements; and
            (3) the financial condition of the Federal Home Mortgage 
        Insurance Fund at such time.

SEC. 536. GAO AUDITS AND REPORTS.

    (a) Audits.--The Comptroller General of the United States shall 
audit the operations of the Administration and the Federal Home 
Mortgage Insurance Fund in accordance with generally accepted 
Government auditing standards. All books, records, accounts, reports, 
files, and property belonging to, or used by, the Administration or 
relating to the Fund shall be made available to the Comptroller 
General. Audits under this section shall be conducted annually and 
shall specifically consider whether the limitations and standards in 
effect governing the extent of mortgage insurance coverage under risk-
sharing agreements under subtitle A and the apportionment of losses 
under such risk-sharing agreements are appropriate to ensure that the 
business of the Administration is conducted in a financially safe and 
sound manner.
    (b) Report on Standards for Insurance Coverage.--The Comptroller 
General shall submit a report to the Fund Administrator and the 
Congress on appropriate standards and limitations for the extent of 
mortgage insurance coverage under risk-sharing agreements under 
subtitle A and for apportionment of losses under such risk-sharing 
agreements. The report shall be submitted not later than the expiration 
of the 1-year period beginning upon the date of the enactment of this 
Act.
    (c) Report on Privatization.--Upon the expiration of the 7-year 
period beginning upon the date of the enactment of this Act, the 
Comptroller General shall submit a report to the Congress regarding the 
effects that prohibiting new business by the Federal Home Mortgage 
Insurance Fund would have on the availability and cost of mortgage 
credit and the prospects for privatization of the functions of the 
Fund.

SEC. 537. REGULATIONS.

    The Fund Administrator may issue any regulations necessary to carry 
out the responsibilities of the Fund Administrator under this title.

SEC. 538. AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATIVE EXPENSES.

    There is authorized to be appropriated, for expenses of the 
Administration in carrying out this title, $8,000,000 for each of 
fiscal years 1996, 1997, 1998, 1999, and 2000.

                   Subtitle C--Transition Provisions

SEC. 551. PROHIBITION OF NEW FHA BUSINESS.

    (a) In General.--Notwithstanding any provision of title I, the 
Administrator of the Housing and Urban Development Programs Resolution 
Agency may not enter into any commitment to insure or guarantee any 
mortgage or loan, and may not newly insure or guarantee any mortgage or 
loans, under any provision of the National Housing Act, the Indian 
housing loan guarantee program under section 184 of the Housing and 
Community Development Act of 1992, the multifamily housing mortgage 
credit demonstration programs under subtitle C of title V of such Act, 
the energy efficient mortgages pilot program under section 513 of such 
Act (and section 106 of the Energy Policy Act of 1992), except--
            (1) as provided in subsection (b); and
            (2) the Resolution Administrator may newly guarantee or 
        insure any mortgage under such authority for which a commitment 
        for such guarantee or insurance was made before the effective 
        date of this title.
    (b) Limited Continuance of Single Family Program.--On and before 
the date under section 502(b), the Resolution Administrator may make 
commitments to insure, and may newly insure, mortgages on 1- to 4-
family residences under the authority provided under title II of the 
National Housing Act (and related provisions of law), but only if the 
mortgage is executed for the acquisition of such a residence by a 
mortgagor who is a first-time homebuyer (as such term is defined in 
section 507) and has an income, at the time of insurance, not exceeding 
the median income for the area in which the property subject to the 
mortgage is located, as determined by the Resolution Administrator. The 
Resolution Administrator may not newly insure any mortgage under this 
subsection after the date under section 502(b), notwithstanding any 
commitment to insure made on or before such date.
    (c) Authority for Multifamily Mark-to-Market.--During the period 
beginning on the date of the enactment of this Act and ending on the 
date under section 554(b), the Resolution Administrator may take such 
actions as may be necessary, with respect to a multifamily housing 
project covered in whole or in part by an expiring or terminating 
contract for project-based rental assistance under any program under 
section 8 or 23 (as in effect before January 1, 1975) of the United 
States Housing Act of 1937 or the rent supplement program under section 
101 of the Housing and Urban Development Act of 1965, to ensure that 
the project is financially viable without the provision of project-
based rental assistance. Notwithstanding any other provision of law, or 
any provision of any contract or agreement to which the Secretary of 
Housing and Urban Development is a party, such actions may include 
making full or partial nondefault payment of claims for mortgage 
insurance (which may include requiring a recasting of the mortgage), 
selling defaulted mortgages, removing (or agreeing to remove) mortgage, 
regulatory,
 use agreement, and other restrictions with respect to the project, 
purchasing reinsurance, transferring economic interests in insurance 
contracts or premiums, and other actions to ensure the ability of the 
project to operate in the market without project-based rental 
assistance.

SEC. 552. REPEAL OF FHA INSURANCE AUTHORITY.

    (a) Repeals.--Effective on the date under section 502(b), the 
following provisions of law are repealed:
            (1) National housing act.--Titles I, II, V, VI, VII, VIII, 
        IX, and XI of the National Housing Act (12 U.S.C. 1701 et 
        seq.).
            (2) Indian housing loan guarantee program.--Section 184 of 
        the Housing and Community Development Act of 1992 (12 U.S.C. 
        1515z-13a).
            (3) Multifamily housing mortgage credit demonstration 
        programs.--Subtitle C of title V of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 1707 note).
            (4) Energy efficient mortgages pilot program.--Section 513 
        of the Housing and Community Development Act of 1992 and 
        section 106 of the Energy Policy Act of 1992 (42 U.S.C. 12712 
        note).
    (b) Savings Provision.--Any mortgage insurance or guarantee 
provided under any provision of law repealed by subsection (a), or 
under section 551(b) of this Act, and in effect on the date under 
section 502(b), shall continue to be governed by the provisions of law 
applicable to the mortgage insurance or guarantee as in effect 
immediately before such date, subject to the provisions of sections 553 
and 554 of this Act.

SEC. 553. SALE OF FHA ASSETS.

    (a) In General.--As soon as practicable, but not before 
certification required under subsection (e)(2), the Resolution 
Administrator shall market and sell the FHA mortgage insurance 
interests according to the plan under subsection (c).
    (b) Purposes.--The Resolution Administrator shall carry out the 
responsibilities under subsection (a) in a manner that--
            (1) maximizes the net present value return from the sale of 
        the interests and results in no net cost to the Federal 
        Government (taking into consideration the cost of not selling 
        such assets);
            (2) minimizes the impact of such transactions on the real 
        estate and financial markets;
            (3) protects investors in and lenders for mortgages insured 
        under the FHA mortgage insurance programs;
            (4) minimizes the risk of loss to the Federal Government 
        (including the Government National Mortgage Association) 
        resulting from non-payment of insurance on defaulted mortgages 
        insured under the FHA mortgage insurance programs;
            (5) disposes of enough such interests before September 30, 
        1998, to result in proceeds of an amount not less than the 
        amount specified in section 502(b), which may include targeting 
        the most valuable or marketable interests (on a book-of-
        business basis or otherwise) for sale during such period;
            (6) disposes of remaining interests as rapidly as is 
        practicable, taking into consideration the goals under 
        paragraphs (1) through (4); and
            (7) disposes, to the greatest extent practicable, of all 
        disposable FHA mortgage insurance interests.
    (c) Plan for Marketing and Sale.--
            (1) Establishment and submission to congress.--Not later 
        than the expiration of the 6-month period beginning on the date 
        of the enactment of this Act, the Resolution Administrator 
        shall establish and submit to the Director of the Office of 
        Management and Budget and to the Congress a plan for the 
        immediate marketing and sale of FHA mortgage insurance 
        interests.
            (2) Purpose.--The plan may provide for the packaging, 
        marketing, discounting, and sale of such interests in any 
        manner and to any interested purchasers that the Resolution 
        Administrator considers appropriate to dispose of FHA mortgage 
        insurance interests, except that the sale shall comply with the 
        requirements of subsection (b).
    (d) Consultation.--In establishing the plan under subsection (c) 
and carrying out this section, the Resolution Administrator shall 
consult with the Fund Administrator and appropriate persons having 
expertise regarding asset sales conducted by the Resolution Trust 
Corporation, the Federal Deposit Insurance Corporation, and other 
Federal agencies, and shall utilize officers and employees of the 
Housing and Urban Development Programs Resolution Agency experienced 
with respect to disposition of real property assets of the Department 
of Housing and Urban Development.
    (e) Certification of No Net Cost to Federal Government.--
            (1) Determination of cost.--Upon receiving the plan under 
        subsection (c), the Director of the Office of Management and 
        Budget shall make a determination of the cost of the plan, and 
        of the portion of the plan providing for sale of interests in 
        accordance with subsection (b)(5), to the Federal Government 
        and shall certify the results of such determination to the 
        Resolution Administrator.
            (2) Requirement of no net cost.--The Resolution 
        Administrator may not market or sell any FHA mortgage insurance 
        interests pursuant to the plan unless the Director of the 
        Office of Management and Budget certifies to the Resolution 
        Administrator and the Congress that such plan, or the portion 
        of the plan providing for sale of interests in accordance with 
        subsection (b)(5), will not result in any net cost to the 
        Federal Government.
            (3) Report.--If the Director certifies that the plan or a 
        portion of the plan will result in a net cost to the Federal 
        Government, the Resolution Administrator shall submit a report 
        to the Congress describing the reasons for such cost and any 
        appropriate revisions to the plan or portion or to the 
        requirements under this section.
    (f) Treatment of Proceeds.--Proceeds from the sale of FHA mortgage 
insurance interests shall be used as follows:
            (1) Start-up amounts for federal home mortgage insurance 
        fund.--The first $500,000,000 of such proceeds shall be 
        credited to
         the Federal Home Mortgage Insurance Fund in accordance with 
section 501(c).
            (2) Deficit reduction.--Any such proceeds exceeding the 
        amount under paragraph (1) shall be covered into the General 
        Fund of the Treasury of the United States.
    (g) Repeal of Limitations on Disposition of HUD-Owned Multifamily 
Projects.--Section 203 of the Housing and Community Development 
Amendments of 1978 (12 U.S.C. 1701z-11) is hereby repealed.

SEC. 554. TRANSFER OF REMAINING FHA AUTHORITY TO ADMINISTRATOR OF 
              FEDERAL HOME MORTGAGE INSURANCE FUND.

    (a) In General.--Effective on the date under subsection (b), there 
shall be transferred to the Fund Administrator--
            (1) to the extent that any such functions or amounts exist 
        on such date, all functions of the Resolution Administrator 
        regarding administration of any insurance or guarantees 
        provided, and funds established, under the provisions of law 
        repealed by section 552(a) or under section 551(b);
            (2) all functions of the Resolution Administrator under 
        section 553 of this Act; and
            (3) all functions of the Resolution Administrator under the 
        Single Family Mortgage Foreclosure Act of 1994 (12 U.S.C. 3751 
        et seq.) and the Multifamily Mortgage Foreclosure Act of 1981 
        (12 U.S.C. 3701 et seq.).
    (b) Timing.--The date under this subsection is the earlier of--
            (1) October 1, 2000; or
            (2) the date specified by the Fund Administrator in a 
        notice submitted to the Congress and the Secretary of Housing 
        and Urban Development certifying that the Fund Administrator 
        has the administrative capacity to carry out the functions 
        transferred by this section.

SEC. 555. DEFINITIONS.

    For purposes of this subtitle, the following definitions shall 
apply:
            (1) Disposable.--The term ``disposable'' means, with 
        respect to FHA mortgage insurance interests, such an interest--
                    (A) for which the underlying mortgage--
                            (i) has been purchased by the Government 
                        National Mortgage Association or is included in 
                        any trust or pool of mortgages for which trust 
                        certificates or other securities have been 
                        issued which are guaranteed by such 
                        Association; or
                            (ii) is owned or held by the Resolution 
                        Administrator; or
                    (B) that is a property that is owned by the 
                Resolution Administrator.
            (2) FHA mortgage insurance interests.--The term ``FHA 
        mortgage insurance interests'' means assets, interests, debts, 
        and obligations of the Resolution Administrator attributable to 
        residential mortgage insurance provided by the Resolution 
        Administrator or the Secretary of Housing and Urban Development 
        under any provision of title II of the National Housing Act. 
        The term includes any rights and obligations of the Resolution 
        Administrator or such Secretary under mortgage insurance 
        contracts (including rights to payment of mortgage insurance 
        premiums), amounts in the mortgage insurance funds under title 
        II of the National Housing Act and investments of such funds 
        that are attributable to such premiums collected, and 
        properties and mortgages held by such Administrator or 
        Secretary.
            (3) FHA multifamily mortgage insurance interests.--The term 
        ``FHA multifamily mortgage insurance interests'' means FHA 
        mortgage insurance interests attributable to mortgage insurance 
        provided for a mortgage on a residence consisting of 5 or more 
        dwelling units.
            (4) FHA single family mortgage insurance interests.--The 
        term ``FHA single family mortgage insurance interests'' means 
        FHA mortgage insurance interests attributable to mortgage 
        insurance for a mortgage on 1- to 4-family residences.
            (5) Resolution administrator.--The term ``Resolution 
        Administrator'' means the Administrator of the Housing and 
        Urban Development Programs Resolution Agency.

            Subtitle D--General and Miscellaneous Provisions

SEC. 571. AMENDMENTS TO TITLE 5, UNITED STATES CODE.

    (a) Compensation of Fund Administrator at Level IV of Executive 
Schedule.--Section 5315 of title 5, United States Code, is amended by 
inserting at the end the following new item:
            ``Administrator of the Federal Home Mortgage Insurance 
        Fund.''.
SEC. 572. AUTHORITY OF DIRECTOR OF OFHEO TO MONITOR SAFETY AND 
              SOUNDNESS OF FUND.

    (a) In General.--Title XIII of the Housing and Community 
Development Act of 1992 (Public Law 102-550; 106 Stat. 4009) is 
amended--
            (1) by redesignating sections 1391 through 1395 as sections 
        1385 through 1389, respectively; and
            (2) by adding at the end the following new subtitle:

   ``Subtitle F--Supervision and Regulation of Federal Home Mortgage 
                             Insurance Fund

``SEC. 1391. AUTHORITY OF DIRECTOR.

    ``The Director of the Office of Federal Housing Enterprise 
Oversight shall monitor and regulate the safety and soundness of the 
Federal Home Mortgage Insurance Fund established under section 501 of 
the Housing Opportunities and Empowerment Act (in this subtitle 
referred to as the `Fund').

``SEC. 1392. EXAMINATIONS, REPORTS, AND COST ESTIMATES.

    ``(a) Examinations.--The Director shall conduct such examinations 
of the Fund as the Director determines necessary to evaluate the safety 
and soundness of the Fund. Such examinations shall be subject to and 
governed by subsections (c) through (f) of section 1317.
    ``(b) Reports.--The Director may require the Administrator of the 
Federal Home Mortgage Insurance Fund of the Department of the Treasury 
to submit, within a reasonable period of time, any regular or special 
report, data, or other information whenever, in the judgment of the 
Director, such report, data, or information is necessary to carry out 
the Director's responsibilities under this subtitle.
    ``(c) Annual Report on Safety and Soundness.--The Director shall 
submit an annual report to the Congress and the Director of the Office 
of Management and Budget on the Fund's financial safety and soundness, 
as measured pursuant to this subtitle.

``SEC. 1393. CAPITAL REQUIREMENTS.

    ``The Director may establish and adjust capital ratio requirements 
for the Fund based on consideration of such factors as the Director 
considers appropriate.

``SEC. 1394. REIMBURSEMENT OF COSTS.

    ``(a) Assessment and Collection.--The Director shall assess and 
collect from the Fund such amounts determined by the Director as 
necessary to reimburse the Office of Federal Housing Enterprise 
Oversight for the reasonable costs and expenses of the activities 
undertaken by such Office to carry out the duties of the Director under 
this subtitle, including the costs of examination, enforcement, and 
oversight expenses.
    ``(b) Requirements.--Annual assessments imposed by the Director 
shall be--
            ``(1) imposed prior to October 1 of each year;
            ``(2) collected at such time or times during each 
        assessment year as determined necessary or appropriate by the 
        Director;
            ``(3) deposited into the Federal Housing Enterprise Fund 
        established by section 1316(f); and
            ``(4) available, to the extent provided in appropriation 
        Acts, for carrying out the responsibilities of the Director 
        under this subtitle.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Housing and Community Development Act of 1992 (Public Law 102-550; 
106 Stat. 3679) is amended--
            (1) by redesignating the items relating to sections 1391 
        through 1395 as relating to sections 1385 through 1389, 
        respectively; and
            (2) by inserting before the item relating to title XIV the 
        following new items:
   ``Subtitle F--Supervision and Regulation of Federal Home Mortgage 
                             Insurance Fund

        ``Sec. 1391. Authority of Director.
        ``Sec. 1392. Examinations, reports, and cost estimates.
        ``Sec. 1393. Capital requirements.
        ``Sec. 1394. Reimbursement of costs.''.
SEC. 573. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Administration.--The term ``Administration'' means the 
        Federal Home Mortgage Insurance Fund Administration, 
        established under section 531.
            (2) Fund administrator.--The term ``Fund Administrator'' 
        means the Administrator of the Federal Home Mortgage Insurance 
        Fund.
            (3) Secretary.--Except as specifically provided otherwise, 
        the term ``Secretary'' means the Secretary of the Treasury.

SEC. 574. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b) or otherwise 
specifically provided in this title, this title shall take effect, and 
the amendments under this title shall be made and shall apply, on the 
effective date under section 108(a).
    (b) Provisions Effective on Date of Enactment.--The following 
provisions of this title shall take effect on the date of the enactment 
of this Act:
            (1) Section 532(a).
            (2) Section 536(b).
            (3) Subsections (c) and (d) of section 553.

   TITLE VI--OFFICE OF FEDERALISM IN OFFICE OF MANAGEMENT AND BUDGET

SEC. 601. ESTABLISHMENT.

    There is hereby established in the Office of Management and Budget 
an office to be known as the Office of Federalism (in this title 
referred to as the ``Office'').

SEC. 602. ADMINISTRATOR.

    (a) Appointment.--There shall be at the head of the Office an 
Administrator who shall be appointed by the President, by and with the 
advice and consent of the Senate. This subsection shall take effect on 
the date of the enactment of this Act.
    (b) Delegation.--The Director of the Office of Management and 
Budget shall delegate to the Administrator the authority to administer 
all functions under this title, except that any such delegation shall 
not relieve the Director of responsibility for the administration of 
such functions.

SEC. 603. FUNCTIONS OF ADMINISTRATOR.

    (a) Purpose.--The Administrator shall serve as principal policy 
adviser to the Director on issues of federalism and shall provide 
overall direction of policy and leadership in the development of 
communications and relations between the executive agencies of the 
Federal government and State and local governments.
    (b) Functions.--The functions of the Administrator shall include--
            (1) reviewing and evaluating policies, legislation, and 
        regulations to determine their effect on the relationship and 
        allocation of authority between the Federal Government and 
        State governments and providing advice to the President and 
        executive agencies regarding such matters; and
            (2) serving as a liaison for the Federal Government to 
        Governors, mayors, and other elected State and local officials, 
        and otherwise communicating with States, with regard to matters 
        involving federalism issues, including Federal block grant 
        initiatives.

SEC. 604. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this title such 
sums as may be necessary for each of fiscal years 1996, 1997, 1998, 
1999, and 2000.

SEC. 605. COMPENSATION OF ADMINISTRATOR AT LEVEL III OF EXECUTIVE 
              SCHEDULE.

    Section 5314 of title 5, United States Code, is amended by 
inserting, after the item relating to the Administrator of the Office 
of Information and Regulatory Affairs of the Office of Management and 
Budget, the following new item:
            ``Administrator, Office of Federalism, Office of Management 
        and Budget.''.

SEC. 606. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title shall take 
effect, and the amendments under this title shall be made and shall 
apply, on the effective date under section 108(a).
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