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[104th Congress Public Law 120]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ120.104]

[[Page 833]]

            HOUSING OPPORTUNITY PROGRAM EXTENSION ACT OF 1996

[[Page 110 STAT. 834]]

Public Law 104-120
104th Congress

                                 An Act

 
   To provide an extension for fiscal year 1996 for certain programs 
 administered by the Secretary of Housing and Urban Development and the 
   Secretary of Agriculture, and for other purposes. <<NOTE: Mar. 28, 
                          1996 -  [S. 1494]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Housing 
Opportunity Program Extension Act of 1996.>> 

SECTION 1. <<NOTE: 12 USC 1701 note.>> SHORT TITLE.

    This Act may be cited as the ``Housing Opportunity Program Extension 
Act of 1996''.

SEC. 2. <<NOTE: 42 USC 1437f note.>> MULTIFAMILY HOUSING ASSISTANCE.

    (a) Section 8 Contract Renewal.--Notwithstanding section 405(b) of 
the Balanced Budget Downpayment Act, I (Public Law 104-99; 110 Stat. 
44), at the request of the owner of any project assisted under section 
8(e)(2) of the United States Housing Act of 1937 (as such section 
existed immediately before October 1, 1991), the Secretary of Housing 
and Urban Development may renew, for a period of 1 year, the contract 
for assistance under such section for such project that expires or 
terminates during fiscal year 1996 at current rent levels.
    (b) <<NOTE: 12 USC 4101 note.>> Low-Income Housing Preservation.--
            (1) Use of amounts.--Notwithstanding any provision of the 
        Balanced Budget Downpayment Act, I (Public Law 104-99; 110 Stat. 
        26) or any other law, the Secretary shall use the amounts 
        described in paragraph (2) of this subsection under the 
        authority and conditions provided in the second undesignated 
        paragraph of the item relating to ``Housing Programs--annual 
        contributions for assisted housing'' in title II of the bill, 
        H.R. 2099 (104th Congress), as passed the House of 
        Representatives on December 7, 1995; except that for purposes of 
        this subsection, any reference in such undesignated paragraph to 
        March 1, 1996, shall be construed to refer to April 15, 1996, 
        any reference in such paragraph to July 1, 1996, shall be 
        construed to refer to August 15, 1996, and any reference in such 
        paragraph to August 1, 1996, shall be construed to refer to 
        September 15, 1996.
            (2) Description of amounts.--Except as otherwise provided in 
        any future appropriation Act, the amounts described under this 
        paragraph are any amounts that--
                    (A) are--
                          (i) unreserved, unobligated amounts provided 
                      in an appropriation Act enacted before the date of 
                      the enactment of this Act;

[[Page 110 STAT. 835]]

                          (ii) provided under the Balanced Budget 
                      Downpayment Act, I; or
                          (iii) provided in any appropriation Act 
                      enacted after the date of the enactment of this 
                      Act; and
                    (B) are provided for use in conjunction with 
                properties that are eligible for assistance under the 
                Low-Income Housing Preservation and Resident 
                Homeownership Act of 1990 or the Emergency Low Income 
                Housing Preservation Act of 1987.

SEC. 3. COMMUNITY DEVELOPMENT BLOCK GRANTS.

    (a) <<NOTE: 42 USC 5305 note.>> Direct Homeownership Activities.--
Notwithstanding the amendments made by section 907(b)(2) of the 
Cranston-Gonzalez National Affordable Housing Act, section 105(a)(25) of 
the Housing and Community Development Act of 1974, as in existence on 
September 30, 1995, shall apply to the use of assistance made available 
under title I of the Housing and Community Development Act of 1974 
during fiscal year 1996.

    (b) Increase in Cumulative Limit.--Section 108(k)(1) of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5308(k)(1)) is amended 
by striking ``$3,500,000,000'' and inserting ``$4,500,000,000''.

SEC. 4. EXTENSION OF RURAL HOUSING PROGRAMS.

    (a) Underserved Areas Set-Aside.--Section 509(f)(4)(A) of the 
Housing Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended--
            (1) in the first sentence, by striking ``fiscal years 1993 
        and 1994'' and inserting ``fiscal year 1996''; and
            (2) in the second sentence, by striking ``each''.

    (b) Rural Multifamily Rental Housing.--Section 515(b)(4) of the 
Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by striking 
``September 30, 1994'' and inserting ``September 30, 1996''.
    (c) Rural Rental Housing Funds for Nonprofit Entities.--The first 
sentence of section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 
1485(w)(1)) is amended by striking ``fiscal years 1993 and 1994'' and 
inserting ``fiscal year 1996''.
SEC. 5. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN RURAL 
                    AREAS.

    (a) <<NOTE: Incorporation. 42 USC 1490p-2.>>  In General.--The 
provisions of section 5 of the bill, H.R. 1691 (104th Congress), as 
passed the House of Representatives on October 30, 1995, are hereby 
enacted into law.

    (b) Technical Amendment.--Section 538 of the Housing Act of 1949 (as 
added by the amendment made pursuant to subsection (a) of this section) 
is amended by striking <<NOTE: 42 USC 1490p-2.>> ``Homesteading and 
Neighborhood Restoration Act of 1995'' each place it appears and 
inserting ``Housing Opportunity Program Extension Act of 1996''.
SEC. 6. EXTENSION OF FHA MORTGAGE INSURANCE PROGRAM FOR HOME 
                    EQUITY CONVERSION MORTGAGES.

    (a) Extension of Program.--The first sentence of section 255(g) of 
the National Housing Act (12 U.S.C. 1715z-20(g)) is amended by striking 
``September 30, 1996'' and inserting ``September 30, 2000''.
    (b) Limitation on Number of Mortgages.--The second sentence of 
section 255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) is 
amended by striking ``30,000'' and inserting ``50,000''.

[[Page 110 STAT. 836]]

    (c) Eligible Mortgages.--Section 255(d)(3) of the National Housing 
Act (12 U.S.C. 1715z-20(d)(3)) is amended to read as follows:
            ``(3) be secured by a dwelling that is designed principally 
        for a 1- to 4-family residence in which the mortgagor occupies 1 
        of the units;''.
SEC. 7. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-BACKED 
                    SECURITIES.

    Section 306(g)(2) of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1721(g)(2)) is amended to read as follows:
    ``(2) Notwithstanding any other provision of law and subject only to 
the absence of qualified requests for guarantees, to the authority 
provided in this subsection, and to the extent of or in such amounts as 
any funding limitation approved in appropriation Acts, the Association 
shall enter into commitments to issue guarantees under this subsection 
in an aggregate amount of $110,000,000,000 during fiscal year 1996. 
There are authorized to be appropriated to cover the costs (as such term 
is defined in section 502 of the Congressional Budget Act of 1974) of 
guarantees issued under this Act by the Association such sums as may be 
necessary for fiscal year 1996.''.

SEC. 8. EXTENSION OF MULTIFAMILY HOUSING FINANCE PROGRAMS.

    (a) Risk-Sharing Pilot Program.--The first sentence of section 
542(b)(5) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1707 note) is amended by striking ``on not more than 15,000 units 
over fiscal years 1993 and 1994'' and inserting ``on not more than 7,500 
units during fiscal year 1996''.
    (b) Housing Finance Agency Pilot Program.--The first sentence of 
section 542(c)(4) of the Housing and Community Development Act of 1992 
(12 U.S.C. 1707 note) is amended by striking ``on not to exceed 30,000 
units over fiscal years 1993, 1994, and 1995'' and inserting ``on not 
more than 12,000 units during fiscal year 1996''.

SEC. 9. SAFETY AND SECURITY IN PUBLIC AND ASSISTED HOUSING.

    (a) Contract Provisions and Requirements.--Section 6 of the United 
States Housing Act of 1937 (42 U.S.C. 1437d) is 
amended--
            (1) in subsection (k), in the matter following paragraph 
        (6)--
                    (A) by striking ``on or near such premises'' and 
                inserting ``on or off such premises''; and
                    (B) by striking ``criminal'' the first place it 
                appears; and
            (2) in subsection (l)(5), by striking ``on or near such 
        premises'' and inserting ``on or off such premises''.

    (b) Availability of Criminal Records for Screening and Eviction.--
Section 6 of the United States Housing Act of 1937 (42 U.S.C. 1437d) is 
amended by adding at the end the following new subsection:
    ``(q) Availability of Records.--
            ``(1) In general.--
                    ``(A) Provision of information.--Notwithstanding any 
                other provision of law, except as provided in 
                subparagraph (B), the National Crime Information Center, 
                police departments, and other law enforcement agencies 
                shall,

[[Page 110 STAT. 837]]

                upon request, provide information to public housing 
                agencies regarding the criminal conviction records of 
                adult applicants for, or tenants of, public housing for 
                purposes of applicant screening, lease enforcement, and 
                eviction.
                    ``(B) Exception.--A law enforcement agency described 
                in subparagraph (A) shall provide information under this 
                paragraph relating to any criminal conviction of a 
                juvenile only to the extent that the release of such 
                information is authorized under the law of the 
                applicable State, tribe, or locality.
            ``(2) Opportunity to dispute.--Before an adverse action is 
        taken with regard to assistance under this title on the basis of 
        a criminal record, the public housing agency shall provide the 
        tenant or applicant with a copy of the criminal record and an 
        opportunity to dispute the accuracy and relevance of that 
        record.
            ``(3) Fee.--A public housing agency may be charged a 
        reasonable fee for information provided under paragraph (1).
            ``(4) Records management.--Each public housing agency shall 
        establish and implement a system of records management that 
        ensures that any criminal record received by the public housing 
        agency is--
                    ``(A) maintained confidentially; <<NOTE: Privacy.>> 
                    ``(B) not misused or improperly disseminated; and
                    ``(C) destroyed, once the purpose for which the 
                record was requested has been accomplished.
            ``(5) Definition.--For purposes of this subsection, the term 
        `adult' means a person who is 18 years of age or older, or who 
        has been convicted of a crime as an adult under any Federal, 
        State, or tribal law.''.

    (c) Ineligibility Because of Eviction for Drug-Related Activity.--
Section 6 of the United States Housing Act of 1937 <<NOTE: 42 USC 
1437d.>>  is amended by adding after subsection (q) (as added by 
subsection (b) of this section) the following new subsection:

    ``(r) Ineligibility Because of Eviction for Drug-Related Activity.--
Any tenant evicted from housing assisted under this title by reason of 
drug-related criminal activity (as that term is defined in section 8(f)) 
shall not be eligible for housing assistance under this title during the 
3-year period beginning on the date of such eviction, unless the evicted 
tenant successfully completes a rehabilitation program approved by the 
public housing agency (which shall include a waiver of this subsection 
if the circumstances leading to eviction no longer exist).''.
    (d) Ineligibility of Illegal Drug Users and Alcohol Abusers for 
Assisted Housing.--Section 16 of the United States Housing Act of 1937 
(42 U.S.C. 1437n) is amended--
            (1) in the section heading by striking ``income''; and
            (2) by adding at the end the following new subsection:

    ``(e) Ineligibility of Illegal Drug Users and Alcohol Abusers.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, a public housing agency shall establish standards for 
        occupancy in public housing dwelling units and assistance under 
        section 8--
                    ``(A) that prohibit occupancy in any public housing 
                dwelling unit by, and assistance under section 8 for, 
                any person--

[[Page 110 STAT. 838]]

                          ``(i) who the public housing agency determines 
                      is illegally using a controlled substance; or
                          ``(ii) if the public housing agency determines 
                      that it has reasonable cause to believe that such 
                      person's illegal use (or pattern of illegal use) 
                      of a controlled substance, or abuse (or pattern of 
                      abuse) of alcohol, may interfere with the health, 
                      safety, or right to peaceful enjoyment of the 
                      premises by other residents of the project; and
                    ``(B) that allow the public housing agency to 
                terminate the tenancy in any public housing unit of, and 
                the assistance under section 8 for, any person--
                          ``(i) who the public housing agency determines 
                      is illegally using a controlled substance; or
                          ``(ii) whose illegal use of a controlled 
                      substance, or whose abuse of alcohol, is 
                      determined by the public housing agency to 
                      interfere with the health, safety, or right to 
                      peaceful enjoyment of the premises by other 
                      residents of the project.
            ``(2) Consideration of rehabilitation.--In determining 
        whether, pursuant to paragraph (1), to deny occupancy or 
        assistance to any person based on a pattern of use of a 
        controlled substance or a pattern of abuse of alcohol, a public 
        housing agency may consider whether such person--
                    ``(A) has successfully completed a supervised drug 
                or alcohol rehabilitation program (as applicable) and is 
                no longer engaging in the illegal use of a controlled 
                substance or abuse of alcohol (as applicable);
                    ``(B) has otherwise been rehabilitated successfully 
                and is no longer engaging in the illegal use of a 
                controlled substance or abuse of alcohol (as 
                applicable); or
                    ``(C) is participating in a supervised drug or 
                alcohol rehabilitation program (as applicable) and is no 
                longer engaging in the illegal use of a controlled 
                substance or abuse of alcohol (as applicable).
            ``(3) Inapplicability to indian housing.--This subsection 
        does not apply to any dwelling unit assisted by an Indian 
        housing authority.''.
SEC. 10. PUBLIC HOUSING DESIGNATED FOR ELDERLY AND DISABLED 
                      FAMILIES.

    (a) Authority for Designation.--Section 7 of the United States 
Housing Act of 1937 (42 U.S.C. 1437e) is amended to read as follows:

         ``designated housing for elderly and disabled families

    ``Sec. 7. (a) Authority To Provide Designated Housing.--
            ``(1) In general.--Subject only to provisions of this 
        section and notwithstanding any other provision of law, a public 
        housing agency for which a plan under subsection (d) is in 
        effect may provide public housing projects (or portions of 
        projects) designated for occupancy by (A) only elderly families, 
        (B) only disabled families, or (C) elderly and disabled 
        families.
            ``(2) Priority for occupancy.--In determining priority for 
        admission to public housing projects (or portions of projects) 
        that are designated for occupancy as provided in paragraph (1), 
        the public housing agency may make units in such projects

[[Page 110 STAT. 839]]

        (or portions) available only to the types of families for whom 
        the project is designated.
            ``(3) Eligibility of near-elderly families.--If a public 
        housing agency determines that there are insufficient numbers of 
        elderly families to fill all the units in a project (or portion 
        of a project) designated under paragraph (1) for occupancy by 
        only elderly families, the agency may provide that near-elderly 
        families may occupy dwelling units in the project (or portion).

    ``(b) Standards Regarding Evictions.--Except as provided in section 
16(e)(1)(B), any tenant who is lawfully residing in a dwelling unit in a 
public housing project may not be evicted or otherwise required to 
vacate such unit because of the designation of the project (or portion 
of a project) pursuant to this section or because of any action taken by 
the Secretary or any public housing agency pursuant to this section.
    ``(c) Relocation Assistance.--A public housing agency that 
designates any existing project or building, or portion thereof, for 
occupancy as provided under subsection (a)(1) shall provide, to each 
person and family who agrees to be relocated in connection with such 
designation--
            ``(1) <<NOTE: Notice.>> notice of the designation and an 
        explanation of available relocation benefits, as soon as is 
        practicable for the agency and the person or family;
            ``(2) access to comparable housing (including appropriate 
        services and design features), which may include tenant-based 
        rental assistance under section 8, at a rental rate paid by the 
        tenant that is comparable to that applicable to the unit from 
        which the person or family has vacated; and
            ``(3) payment of actual, reasonable moving expenses.

    ``(d) Required Plan.--A plan under this subsection for designating a 
project (or portion of a project) for occupancy under subsection (a)(1) 
is a plan, prepared by the public housing agency for the project and 
submitted to the Secretary, that--
            ``(1) establishes that the designation of the project is 
        necessary--
                    ``(A) to achieve the housing goals for the 
                jurisdiction under the comprehensive housing 
                affordability strategy under section 105 of the 
                Cranston-Gonzalez National Affordable Housing Act; and
                    ``(B) to meet the housing needs of the low-income 
                population of the jurisdiction; and
            ``(2) includes a description of--
                    ``(A) the project (or portion of a project) to be 
                designated;
                    ``(B) the types of tenants for which the project is 
                to be designated;
                    ``(C) any supportive services to be provided to 
                tenants of the designated project (or portion);
                    ``(D) how the design and related facilities (as such 
                term is defined in section 202(d)(8) of the Housing Act 
                of 1959) of the project accommodate the special 
                environmental needs of the intended occupants; and
                    ``(E) any plans to secure additional resources or 
                housing assistance to provide assistance to families 
                that may have been housed if occupancy in the project 
                were not restricted pursuant to this section.

[[Page 110 STAT. 840]]

For purposes of this subsection, the term `supportive services' means 
services designed to meet the special needs of residents.
    ``(e) Review of Plans.--
            ``(1) Review and notification.--The Secretary shall conduct 
        a limited review of each plan under subsection (d) that is 
        submitted to the Secretary to ensure that the plan is complete 
        and complies with the requirements of subsection (d). The 
        Secretary shall notify each public housing agency submitting a 
        plan whether the plan complies with such requirements not later 
        than 60 days after receiving the plan. If the Secretary does not 
        notify the public housing agency, as required under this 
        paragraph or paragraph (2), the plan shall be considered, for 
        purposes of this section, to comply with the requirements under 
        subsection (d) and the Secretary shall be considered to have 
        notified the agency of such compliance upon the expiration of 
        such 60-day period.
            ``(2) Notice of reasons for determination of 
        noncompliance.--If the Secretary determines that a plan, as 
        submitted, does not comply with the requirements under 
        subsection (d), the Secretary shall specify in the notice under 
        paragraph (1) the reasons for the noncompliance and any 
        modifications necessary for the plan to meet such requirements.
            ``(3) Standards for determination of noncompliance.--The 
        Secretary may determine that a plan does not comply with the 
        requirements under subsection (d) only if--
                    ``(A) the plan is incomplete in significant matters 
                required under such subsection; or
                    ``(B) there is evidence available to the Secretary 
                that challenges, in a substantial manner, any 
                information provided in the plan.
            ``(4) Treatment of existing plans.--Notwithstanding any 
        other provision of this section, a public housing agency shall 
        be considered to have submitted a plan under this subsection if 
        the agency has submitted to the Secretary an application and 
        allocation plan under this section (as in effect before the date 
        of the enactment of the Housing Opportunity Program Extension 
        Act of 1996) that have not been approved or disapproved before 
        such date of enactment.

    ``(f) Effectiveness.--
            ``(1) 5-year effectiveness of original plan.--A plan under 
        subsection (d) shall be in effect for purposes of this section 
        during the 5-year period that begins upon notification under 
        subsection (e)(1) of the public housing agency that the plan 
        complies with the requirements under subsection (d).
            ``(2) Renewal of plan.--Upon the expiration of the 5-year 
        period under paragraph (1) or any 2-year period under this 
        paragraph, an agency may extend the effectiveness of the 
        designation and plan for an additional 2-year period (that 
        begins upon such expiration) by submitting to the Secretary any 
        information needed to update the plan. The Secretary may not 
        limit the number of times a public housing agency extends the 
        effectiveness of a designation and plan under this paragraph.
            ``(3) Transition provision.--Any application and allocation 
        plan approved under this section (as in effect before the date 
        of the enactment of the Housing Opportunity Program Extension 
        Act of 1996) before such date of enactment shall be consid

[[Page 110 STAT. 841]]

        ered to be a plan under subsection (d) that is in effect for 
        purposes of this section for the 5-year period beginning upon 
        such approval.

    ``(g) Inapplicability of Uniform Relocation Assistance and Real 
Property Acquisitions Policy Act of 1970.--No tenant of a public housing 
project shall be considered to be displaced for purposes of the Uniform 
Relocation Assistance and Real Property Acquisitions Policy Act of 1970 
because of the designation of any existing project or building, or 
portion thereof, for occupancy as provided under subsection (a) of this 
section.
    ``(h) Inapplicability to Indian Housing.--The provisions of this 
section shall not apply with respect to low-income housing developed or 
operated pursuant to a contract between the Secretary and an Indian 
housing authority.''.
    (b) Authorization of Appropriations for Implementation of Allocation 
Plans.--There are authorized to be appropriated for fiscal year 1996 
such sums as may be necessary for rental subsidy contracts under the 
existing housing certificate and housing voucher programs under section 
8 of the United States Housing Act of 1937 for public housing agencies 
to implement allocations plans for designated housing under section 7 of 
such Act that are approved by the Secretary of Housing and Urban 
Development.
SEC. 11.  <<NOTE: 42 USC 12805 note.>> ASSISTANCE FOR HABITAT FOR 
                      HUMANITY AND OTHER SELF-HELP HOUSING 
                      PROVIDERS.

    (a) Grant Authority.--The Secretary of Housing and Urban Development 
may, to the extent amounts are available to carry out this section and 
the requirements of this section are met, make grants for use in 
accordance with this section to--
            (1) Habitat for Humanity International, whose organizational 
        headquarters are located in Americus, Georgia; and
            (2) other national or regional organizations or consortia 
        that have experience in providing or facilitating self-help 
        housing homeownership opportunities.

    (b) Goals and Accountability.--In making grants under this section, 
the Secretary shall take such actions as may be necessary to ensure 
that--
            (1) assistance provided under this section is used to 
        facilitate and encourage innovative homeownership opportunities 
        through the provision of self-help housing, under which the 
        homeowner contributes a significant amount of sweat equity 
        toward the construction of the new dwelling;
            (2) assistance provided under this section for land 
        acquisition and infrastructure development results in the 
        development of not less than 4,000 new dwellings;
            (3) the dwellings constructed in connection with assistance 
        provided under this section are quality dwellings that comply 
        with local building and safety codes and standards and are 
        available at prices below the prevailing market prices;
            (4) the provision of assistance under this section 
        establishes and fosters a partnership between the Federal 
        Government and Habitat for Humanity International, its 
        affiliates, and other organizations and consortia, resulting in 
        efficient development of affordable housing with minimal 
        governmental intervention, limited governmental regulation, and 
        significant involvement by private entities;

[[Page 110 STAT. 842]]

            (5) activities to develop housing assisted pursuant to this 
        section involve community participation similar to the 
        homeownership program carried out by Habitat for Humanity 
        International, in which volunteers assist in the construction of 
        dwellings; and
            (6) dwellings are developed in connection with assistance 
        under this section on a geographically diverse basis, which 
        includes areas having high housing costs, rural areas, and areas 
        underserved by other homeownership opportunities that are 
        populated by low-income families unable to otherwise afford 
        housing.

<<NOTE: Notification.>> If, at any time, the Secretary determines that 
the goals under this subsection cannot be met by providing assistance in 
accordance with the terms of this section, the Secretary shall 
immediately notify the applicable Committees in writing of such 
determination and any proposed changes for such goals or this section.

    (c) Allocation.--Of any amounts available for grants under this 
section--
            (1) 62.5 percent shall be used for a grant to the 
        organization specified in subsection (a)(1); and
            (2) 37.5 percent shall be used for grants to organizations 
        and consortia under subsection (a)(2).

    (d) Use.--
            (1) Purpose.--Amounts from grants made under this section, 
        including any recaptured amounts, shall be used only for 
        eligible expenses in connection with developing new decent, 
        safe, and sanitary nonluxury dwellings in the United States for 
        families and persons who otherwise would be unable to afford to 
        purchase a dwelling.
            (2) Eligible expenses.--For purposes of paragraph (1), the 
        term ``eligible expenses'' means costs only for the following 
        activities:
                    (A) Land acquisition.--Acquiring land (including 
                financing and closing costs).
                    (B) Infrastructure improvement.--Installing, 
                extending, constructing, rehabilitating, or otherwise 
                improving utilities and other infrastructure.
        Such term does not include any costs for the rehabilitation, 
        improvement, or construction of dwellings.

    (e) Establishment of Grant Fund.--
            (1) In general.--Any amounts from any grant made under this 
        section shall be deposited by the grantee organization or 
        consortium in a fund that is established by such organization or 
        consortium for such amounts, administered by such organization 
        or consortium, and available for use only for the purposes under 
        subsection (d). Any interest, fees, or other earnings of the 
        fund shall be deposited in the fund and shall be considered 
        grant amounts for purposes of this section.
            (2) Assistance to habitat for humanity affiliates.--Habitat 
        for Humanity International may use amounts in the fund 
        established for such organization pursuant to paragraph (1) for 
        the purposes under subsection (d) by providing assistance from 
        the fund to local affiliates of such organization.

    (f) Requirements for Assistance to Other Organizations.--The 
Secretary may make a grant to an organization or consortium under 
subsection (a)(2) only pursuant to--

[[Page 110 STAT. 843]]

            (1) an expression of interest by such organization or 
        consortia to the Secretary for a grant for such purposes;
            (2) a determination by the Secretary that the organization 
        or consortia has the capability and has obtained financial 
        commitments (or has the capacity to obtain financial 
        commitments) necessary to--
                    (A) develop not less than 30 dwellings in connection 
                with the grant amounts; and
                    (B) otherwise comply with a grant agreement under 
                subsection (i); and
            (3) a grant agreement entered into under subsection (i).

    (g) Treatment of Unused Amounts.--Upon the expiration of the 6-month 
period beginning upon the Secretary first providing notice of the 
availability of amounts for grants under subsection (a)(2), the 
Secretary shall determine whether the amount remaining from the 
aggregate amount reserved under subsection (c)(2) exceeds the amount 
needed to provide funding in connection with any expressions of interest 
under subsection (f)(1) made by such date that are likely to result in 
grant agreements under subsection (i). If the Secretary determines that 
such excess amounts remain, the Secretary shall provide the excess 
amounts to Habitat for Humanity International by making a grant to such 
organization in accordance with this section.
    (h) Geographical Diversity.--In using grant amounts provided under 
subsection (a)(1), Habitat for Humanity International shall ensure that 
the amounts are used in a manner that results in national geographic 
diversity among housing developed using such amounts. In making grants 
under subsection (a)(2), the Secretary shall ensure that grants are 
provided and grant amounts are used in a manner that results in national 
geographic diversity among housing developed using grant amounts under 
this section.
    (i) Grant Agreement.--A grant under this section shall be made only 
pursuant to a grant agreement entered into by the Secretary and the 
organization or consortia receiving the grant, which shall--
            (1) require such organization or consortia to use grant 
        amounts only as provided in this section;
            (2) provide for the organization or consortia to develop a 
        specific and reasonable number of dwellings using the grant 
        amounts, which number shall be established taking into 
        consideration costs and economic conditions in the areas in 
        which the dwellings will be developed, but in no case shall be 
        less than 30;
            (3) require the organization or consortia to use the grant 
        amounts in a manner that leverages other sources of funding 
        (other than grants under this section), including private or 
        public funds, in developing the dwellings;
            (4) require the organization or consortia to comply with the 
        other provisions of this section;
            (5) provide that if the organization or consortia has not 
        used any grant amounts within 24 months after such amounts are 
        first disbursed to the organization or consortia, the Secretary 
        shall recapture such unused amounts; and
            (6) contain such other terms as the Secretary may require to 
        provide for compliance with subsection (b) and the requirements 
        of this section.

[[Page 110 STAT. 844]]

    (j) Fulfillment of Grant Agreement.--If the Secretary determines 
that an organization or consortia awarded a grant under this section has 
not, within 24 months after grant amounts are first made available to 
the organization or consortia, substantially fulfilled the obligations 
under the grant agreement, including development of the appropriate 
number of dwellings under the agreement, the Secretary shall use any 
such undisbursed amounts remaining from such grant for other grants in 
accordance with this section.
    (k) Records and Audits.--During the period beginning upon the making 
of a grant under this section and ending upon close-out of the grant 
under subsection (l)--
            (1) the organization awarded the grant under subsection 
        (a)(1) or (a)(2) shall keep such records and adopt such 
        administrative practices as the Secretary may require to ensure 
        compliance with the provisions of this section and the grant 
        agreement; and
            (2) the Secretary and the Comptroller General of the United 
        States, and any of their duly authorized representatives, shall 
        have access for the purpose of audit and examination to any 
        books, documents, papers, and records of the grantee 
        organization or consortia and its affiliates that are pertinent 
        to the grant made under this section.

    (l) Close-Out.--The Secretary shall close out a grant made under 
this section upon determining that the aggregate amount of any 
assistance provided from the fund established under subsection (e)(1) by 
the grantee organization or consortium exceeds the amount of the grant. 
For purposes of this paragraph, any interest, fees, and other earnings 
of the fund shall be excluded from the amount of the grant.
    (m) Environmental Review.--A grant under this section shall be 
considered to be funds for a special project for purposes of section 
305(c) of the Multifamily Housing Property Disposition Reform Act of 
1994.
    (n) Report to Congress.--Not later than 90 days after close-out of 
all grants under this section is completed, the Secretary shall submit a 
report to the applicable Committees describing the grants made under 
this section, the grantees, the housing developed in connection with the 
grant amounts, and the purposes for which the grant amounts were used.
    (o) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Applicable committees.--The term ``applicable 
        Committees'' means the Committee on Banking and Financial 
        Services of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (3) United states.--The term ``United States'' includes 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.

    (p) <<NOTE: Federal Register, publication.>> Regulations.--The 
Secretary shall issue any final regulations necessary to carry out this 
section not later than 30 days after the date of the enactment of this 
Act. The regulations shall

[[Page 110 STAT. 845]]

take effect upon issuance and may not exceed, in length, 5 full pages in 
the Federal Register.
SEC. 12. FUNDING FOR SELF-HELP HOUSING ASSISTANCE, NATIONAL CITIES 
                      IN SCHOOLS COMMUNITY DEVELOPMENT PROGRAM, 
                      AND CAPACITY BUILDING THROUGH NATIONAL 
                      COMMUNITY DEVELOPMENT INITIATIVE.

    (a) Authority to Use Assisted Housing Amounts.--To the extent and 
for the purposes specified in subsection (b), the Secretary of Housing 
and Urban Development may use amounts in the account of the Department 
of Housing and Urban Development known as the Annual Contributions for 
Assisted Housing account, but only such amounts which--
            (1) have been appropriated for a fiscal year that occurs 
        before the fiscal year for which the Secretary uses the amounts; 
        and
            (2) have been obligated before becoming available for use 
        under this section.

    (b) Fiscal Year 1996.--Of the amounts described in subsection (a), 
$60,000,000 shall be available to the Secretary of Housing and Urban 
Development for fiscal year 1996 in the following amounts for the 
following purposes:
            (1) Self-help housing assistance.--$40,000,000 for carrying 
        out section 11 of this Act.
            (2) National cities in schools community development 
        program.--$10,000,000 for carrying out section 930 of the 
        Housing and Community Development Act of 1992 (Public Law 102-
        550; 106 Stat. 3887).
            (3) Capacity building through national community development 
        initiative.--$10,000,000 for carrying out section 4 of the HUD 
        Demonstration Act of 1993 (42 U.S.C. 9816 note).

SEC. 13. <<NOTE: 42 USC 1437d note.>> APPLICABILITY AND IMPLEMENTATION.

    (a) Applicability.--This Act and the amendments made by this Act 
shall be construed to have become effective on October 1, 1995.

[[Page 110 STAT. 846]]

    (b) Implementation.--The amendments made by sections 9 and 10 shall 
apply as provided in subsection (a) of this section, notwithstanding the 
effective date of any regulations issued by the Secretary of Housing and 
Urban Development to implement such amendments or any failure by the 
Secretary to issue any such regulations.

    Approved March 28, 1996.

LEGISLATIVE HISTORY--S. 1494:
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CONGRESSIONAL RECORD, Vol. 142 (1996):
            Jan. 24, considered and passed Senate.
            Feb. 27, considered and passed House, amended.
            Mar. 12, Senate concurred in House amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
            Mar. 28, Presidential remarks.

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