103D CONGRESS

2D SESSION H. R. 3838

AN ACT

To amend and extend certain laws relating to houspurposes. ing and community development, and for other
103D CONGRESS

2D SESSION H. R. 3838

AN ACT

To amend and extend certain laws relating to housing and

community development, and for other purposes.

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Housing and Community Development Act of 1994’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Effective date.

TITLE I—HOUSING ASSISTANCE

Subtitle A—General Provisions

Sec. 101. Low-income housing authorization.

Sec. 102. Resident representation in public housing agencies.

Sec. 103. Determination of median income.

Sec. 104. Definition of families.

Sec. 105. Family self-sufficiency program.

Sec. 106. Use of amounts in headquarters reserve.

Subtitle B—Public and Indian Housing

Sec. 111. Public housing rent reform.

Sec. 112. Sale of public housing to non-profit intermediaries.

Sec. 113. Major reconstruction of obsolete projects.

Sec. 114. New construction of projects for disabled families.

Sec. 115. Recapture of public housing development amounts.

Sec. 116. Repeal of least-cost limitation on public housing new construction.

Sec. 117. Regulatory relief and paperwork reduction for high-performing public

housing agencies.

Sec. 118. Standards for lease termination and expedited grievance procedure.

Sec. 119. Availability of criminal conviction information for screening and

evictions.

Sec. 120. Designated housing.

Sec. 121. Public housing operating subsidies.

Sec. 122. Eligible uses of emergency modernization funds.

Sec. 123. Use of modernization funds for replacement housing.

Sec. 124. Authority for public housing agencies to leverage amounts for replacement and modernization.

Sec. 125. Demolition and disposition of public housing.

Sec. 126. Public housing resident opportunity.

Sec. 127. Public housing family investment centers.

Sec. 128. Revitalization of severely distressed public housing.

Sec. 129. Program monitoring and technical assistance.

Sec. 130. Applicability of public housing amendments to Indian housing.

Sec. 131. Early childhood development program.

Sec. 132. Indian housing childhood development services.

Sec. 133. Public housing one-stop perinatal services demonstration.

Sec. 134. Sale of certain scattered-site public housing.

Sec. 135. Eligibility of certain public housing for demolition.

Sec. 136. Demonstration program for innovative public housing agencies and

resident management corporations.

Sec. 137. Demonstration program for occupancy of otherwise vacant public

housing units by moderate-income families.

Sec. 138. Study of adequacy of payment in lieu of taxes.

Subtitle C—Section 8 Assistance
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Sec. 141. Community investment demonstration program.

Sec. 142. Merger of section 8 rental assistance programs.

Sec. 143. Incentives to refinance high interest mortgages for section 8 projects.

Sec. 144. Demonstration program for use of excess residual receipts.

Sec. 145. Treatment of certain projects.

Sec. 146. Study of extent of nonparticipation of owners and landlords in section

8 rental assistance program.

Sec. 147. Study of section 8 housing quality standards.

Subtitle D—Renewal of Expiring Contracts for Section 8 New Construction

and Substantial Rehabilitation Projects

Sec. 151. Findings and purpose.

Sec. 152. Notices of contract expiration and intention to renew.

Sec. 153. Secretary’s response to owner’s proposal.

Sec. 154. Limitation on new contracts.

Sec. 155. Required terms of new contracts.

Sec. 156. Maximum monthly rent under new contracts.

Sec. 157. Actions in cases of failure to enter into new contract.

Sec. 158. Contract extension.

Sec. 159. Financing and restructuring underlying debt and treatment of

residual receipts.

Sec. 160. Retention of program savings by Secretary.

Sec. 161. Supportive services and technical assistance.

Sec. 162. Delegation of authority.

Sec. 163. Definitions.

Sec. 164. Regulations.

Sec. 165. Authorization of appropriations.

Subtitle E—Homeownership Programs

Sec. 171. HOPE homeownership programs.

Sec. 172. National Homeownership Fund.

Sec. 173. Section 235 mortgage refinancing.

Sec. 174. Housing counseling for homeownership and rental housing choice.

Subtitle F—Other Programs

Sec. 181. Community partnerships against crime.

Sec. 182. Low-income housing preservation.

Sec. 183. Flexible subsidy program.

Sec. 184. Youthbuild program.

Sec. 185. Disposition of HUD-owned multifamily housing properties.

Sec. 186. Guidelines for screening, admission, and evictions in public and

assisted housing.

Sec. 187. Metropolitan area-wide strategy demonstration.

Sec. 188. Certain revitalization and relocation assistance.

TITLE II—HOME INVESTMENT PARTNERSHIPS

Sec. 201. Authorization of appropriations.

Sec. 202. Eligible uses of investment.

Sec. 203. Qualification as affordable rental housing.

Sec. 204. Repayment of investment.

Sec. 205. Matching requirements.

Sec. 206. Support for State and local housing strategies.

Sec. 207. Labor requirements.
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TITLE III—SUPPORTIVE HOUSING PROGRAMS

Sec. 301. Funding for supportive housing for the elderly and for persons with

disabilities.

Sec. 302. Supportive housing for the elderly.

Sec. 303. Supportive housing for persons with disabilities.

Sec. 304. Revised congregate services.

Sec. 305. Supportive housing assistance for elderly independence.

Sec. 306. Housing opportunities for persons with AIDS.

Sec. 307. Service coordinators.

TITLE IV—MORTGAGE INSURANCE AND SECONDARY MORTGAGE

MARKET

Subtitle A—Mortgage Insurance and Loan Guarantee Programs

Sec. 401. Limitation on insurance authority.

Sec. 402. Federal Housing Administration Advisory Board.

Sec. 403. Maximum mortgage amount ceiling for single family mortgages.

Sec. 404. Maximum mortgage amount floor for single family mortgage

insurance.

Sec. 405. Calculation of downpayment.

Sec. 406. Elimination of restrictions regarding new construction.

Sec. 407. Authority to use amounts borrowed from family members for

downpayments.

Sec. 408. Indemnification for multifamily housing project managers.

Sec. 409. Extension of multifamily housing mortgage auction provisions.

Sec. 410. Streamlined refinancing for HUD-held mortgages.

Sec. 411. Home equity conversion mortgages for elderly homeowners.

Sec. 412. Single family risk-sharing mortgage insurance program.

Sec. 413. Delegation of single family mortgage insuring authority to direct endorsement mortgagees.

Sec. 414. Eligibility of mortgages on homes on leased land owned by community land trusts.

Sec. 415. Insurance of 2-step single family mortgages.

Sec. 416. Mortgage limits for multifamily projects in high-cost areas.

Sec. 417. Approval of point-of-use purification systems and testing of systems.

Sec. 418. Energy efficient mortgages pilot program.

Sec. 419. Extension of multifamily mortgage credit demonstrations.

Sec. 420. Indian housing loan guarantees.

Sec. 421. National Commission on the Future of the Federal Housing Administration.

Sec. 422. Action and report on cooperative homeownership for low- and moderate-income families.

Sec. 423. Study of activity of private mortgage bankers and insurers.

Subtitle B—Secondary Mortgage Market Programs

Sec. 441. Limitation on GNMA guarantees of mortgage-backed securities.

Sec. 442. Assessment collection dates for Office of Federal Housing Enterprise

Oversight.

Subtitle C—Emergency Mortgage Relief

Sec. 461. Amendments to Emergency Homeowners’ Relief Act.

Subtitle D—Nonjudicial Foreclosure of Defaulted Single Family Mortgages
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Sec. 481. Short title.

Sec. 482. Findings and purpose.

Sec. 483. Definitions.

Sec. 484. Applicability.

Sec. 485. Designation of foreclosure commissioner.

Sec. 486. Prerequisites to foreclosure.

Sec. 487. Notice of foreclosure sale.

Sec. 488. Commencement of foreclosure.

Sec. 489. Service of notice of foreclosure.

Sec. 490. Presale reinstatement.

Sec. 491. Conduct of sale and adjournment.

Sec. 492. Foreclosure costs.

Sec. 493. Disposition of sale proceeds.

Sec. 494. Transfer of title and possession.

Sec. 495. Record of foreclosure and sale.

Sec. 496. Effect of sale.

Sec. 497. Computation of time.

Sec. 498. Separability.

Sec. 499. Deficiency judgment.

TITLE V—RURAL HOUSING

Sec. 501. Program authorizations.

Sec. 502. Eligibility of Native Americans for rural housing programs.

Sec. 503. Escrow fund.

Sec. 504. Section 502 homeownership loans.

Sec. 505. Loan guarantees.

Sec. 506. Prepayment of rural rental housing loans.

Sec. 507. Designation of underserved areas and reservation of assistance.

Sec. 508. Administrative appeals.

Sec. 509. Section 515 rural rental housing.

Sec. 510. Optional conversion of rental assistance payments to operating subsidy for migrant farmworker projects.

Sec. 511. Definition of rural area.

Sec. 512. Eligibility of manufactured home parks for building site loans for cooperatives.

Sec. 513. Rural housing assistance targeting report.

Sec. 514. Priority for rural housing voucher assistance.

Sec. 515. Native American rural housing capacity demonstration program.

Sec. 516. Rural community development initiative.

Sec. 517. Loan guarantees for multifamily rental housing in rural areas.

Sec. 518. Rural housing loan delegated processing demonstration.

TITLE VI—COMMUNITY DEVELOPMENT

Subtitle A—Community Development Block Grant Program

Sec. 601. Authorization of appropriations and guarantee authority.

Sec. 602. Definition of metropolitan city.

Sec. 603. Management information systems.

Sec. 604. Eligible activities.

Sec. 605. Reallocations.

Sec. 606. Prohibition of use of CDBG assistance for employment relocation activities.

Sec. 607. Limitation on extent of use of loan guarantees for housing purposes.

Sec. 608. Economic development grants.
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Sec. 609. Use of UDAG recaptures.

Sec. 610. Extension of certain CDBG assistance.

Subtitle B—Other Community Development Programs

Sec. 631. Neighborhood Reinvestment Corporation.

Sec. 632. John Heinz neighborhood development program.

Sec. 633. Capacity building for community development and affordable housing.

Sec. 634. Colonias assistance program.

Sec. 635. Grants for empowerment zones and enterprise communities.

Sec. 636. Use of grant amounts.

TITLE VII—REGULATORY AND MISCELLANEOUS PROGRAMS

Sec. 701. Fair housing initiatives program.

Sec. 702. HUD program monitoring and evaluation.

Sec. 703. HUD salaries and expenses.

Sec. 704. Use of technical assistance amounts by or for HUD staff.

Sec. 705. Annual report regarding repeal of unfunded programs.

Sec. 706. Requirements for participation of women in construction assisted

under HUD programs.

Sec. 707. Notification of HUD funding awards.

Sec. 708. Exclusion of GNMA from HUD personnel ceilings.

Sec. 709. HUD research and development.

Sec. 710. Preventing fraud and abuse in rural rental housing program.

Sec. 711. National Institute of Building Sciences.

Sec. 712. Residential lead-based paint hazard reduction.

Sec. 713. GAO study of lead-based paint detection technologies and tenant

notification procedures.

Sec. 714. Civil money penalties for violations of Home Mortgage Disclosure Act

by nonsupervised mortgagees.

Sec. 715. Removal of regulatory barriers to affordable housing.

Sec. 716. New towns demonstration program for emergency relief of Los

Angeles.

Sec. 717. Authorization of appropriations for public services facility.

Sec. 718. National American Indian Housing Council.

Sec. 719. Housing Assistance Council.

Sec. 720. Demonstration program for outreach to avoid disconnection of

utilities.

Sec. 721. Federal Deposit Insurance Corporation affordable housing program.

Sec. 722. State agencies as sureties.

Sec. 723. Insured community development financial institution access to Federal Home Loan Bank advances.

Sec. 724. Purchase of American-made equipment and products.

TITLE VIII—HOUSING PROGRAMS UNDER STEWART B. MCKINNEY

HOMELESS ASSISTANCE ACT

Sec. 801. Short title.

Subtitle A—Housing Assistance

CHAPTER 1—REORGANIZATION OF CERTAIN MCKINNEY ACT HOUSING

PROVISIONS

Sec. 811. Flexible grant program.

Sec. 812. Regulations and transition provisions.
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Sec. 813. Report on single room occupancy assistance.

CHAPTER 2—OTHER HOUSING ASSISTANCE PROGRAMS FOR THE HOMELESS

UNDER MCKINNEY ACT

Sec. 821. Section 8 assistance for single room occupancy dwellings.

Sec. 822. Section 8 assistance for shelter plus care single room occupancy

dwellings.

Sec. 823. Rural homelessness grant program.

Sec. 824. Clerical amendment.

CHAPTER 3—MISCELLANEOUS HOMELESS HOUSING PROVISIONS

Sec. 831. FHA single family property disposition.

Sec. 832. Strategy to eliminate unfit transient facilities.

Subtitle B—Interagency Council on the Homeless

Sec. 841. Authorization of appropriations.

Sec. 842. Chairperson.

Sec. 843. Extension.

Subtitle C—Federal Emergency Management Agency Food and Shelter

Program

Sec. 851. Authorization of appropriations.

Sec. 852. Prohibition of assistance to illegal aliens.

Subtitle D—Availability of Property at Military Bases for Redevelopment and

Homeless Use

Sec. 861. Availability of property at military bases for redevelopment and

homeless use.

TITLE IX—ASSURANCE AGAINST COST SHIFTING

Sec. 901. Assurance against cost shifting.

1 SEC. 2. EFFECTIVE DATE.

2 The provisions of this Act and the amendments made

3 by this Act shall take effect and shall apply upon the date

4 of the enactment of this Act, unless such provisions or

5 amendments specifically provide for effectiveness or appli6 cability upon another date certain.
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1 TITLE I—HOUSING ASSISTANCE

2 Subtitle A—General Provisions

3 SEC. 101. LOW-INCOME HOUSING AUTHORIZATION.

4 (a) AGGREGATE BUDGET AUTHORITY.—Section

5 5(c)(6) of the United States Housing Act of 1937 (42

6 U.S.C. 1437c(c)(6)) is amended by adding at the end the

7 following new sentence: ‘‘The aggregate amount of budget

8 authority that may be obligated for assistance referred to

9 in paragraph (7) is increased (to the extent approved in

10 appropriation Acts) by the sum of the amounts provided

11 in paragraph (7)(A) on October 1, 1994, and by the sum

12 of the amounts provided in paragraph (7)(B) on October

13 1, 1995.’’.

14 (b) UTILIZATION OF BUDGET AUTHORITY.—Section

15 5(c)(7) of the United States Housing Act of 1937 (42

16 U.S.C. 1437c(c)(7)) is amended by striking the paragraph

17 designation and all that follows through the end of sub18 paragraph (B) and inserting the following:

19 ‘‘(7)(A) Using the additional budget authority pro20 vided under paragraph (6) and the balances of budget au21 thority that become available during fiscal year 1995, the

22 Secretary shall, to the extent approved in appropriation

23 Acts, reserve authority to enter into obligations aggregat24 ing—
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1 ‘‘(i) for public housing grants under subsection

2 (a)(2), not more than $861,000,000, of which

3 amount not more than $263,000,000 shall be avail4 able for Indian housing;

5 ‘‘(ii) for assistance under section 8, not more

6 than $2,674,000,000, of which not more than

7 $75,000,000 shall be available for assistance under

8 section 8 for family unification under subsection

9 (q)(3) of such section;

10 ‘‘(iii) for assistance under section 5(j)(2) for

11 substantial redesign, reconstruction, and redevelop12 ment of existing obsolete public housing projects and

13 buildings, not more than $114,000,000;

14 ‘‘(iv) for comprehensive improvement assistance

15 grants under section 14(k), not more than

16 $3,230,000,000;

17 ‘‘(v) for assistance under section 8 for property

18 disposition, not more than $691,000,000;

19 ‘‘(vi) for assistance under section 8 for loan

20 management, not more than $150,000,000;

21 ‘‘(vii) for extensions of contracts expiring under

22 section 8, $5,092,000,000 which shall be for 5-year

23 contracts for assistance under section 8 and vouch24 ers under section 8(o) (as in effect before the date
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1 of the enactment of this Act) and for loan manage2 ment assistance under such section;

3 ‘‘(viii) for amendments to contracts under sec4 tion 8, such sums as may be necessary;

5 ‘‘(ix) for public housing lease adjustments and

6 amendments, such sums as may be necessary;

7 ‘‘(x) for assistance under section 18(g) for re8 placement housing for units demolished or disposed

9 of under section 18, not more than $333,450,000;

10 ‘‘(xi) for conversions from leased housing con11 tracts under section 23 of this Act (as in effect im12 mediately before the enactment of the Housing and

13 Community Development Act of 1974) to assistance

14 under section 8, such sums as may be necessary;

15 and

16 ‘‘(xii) for grants under section 24 for revitaliza17 tion of severely distressed public housing, not more

18 than $500,000,000.

19 ‘‘(B) Using the additional budget authority provided

20 under paragraph (6) and the balances of budget authority

21 that become available during fiscal year 1996, the Sec22 retary shall, to the extent approved in appropriation Acts,

23 reserve authority to enter into obligations aggregating—

24 ‘‘(i) for public housing grants under subsection

25 (a)(2), not more than $862,000,000, of which
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1 amount not more than $264,000,000 shall be avail2 able for Indian housing;

3 ‘‘(ii) for assistance under section 8, not more

4 than $2,800,000,000, of which not more than

5 $75,000,000 shall be available for assistance under

6 section 8 for family unification under subsection

7 (q)(3) of such section;

8 ‘‘(iii) for assistance under section 5(j)(2) for

9 substantial redesign, reconstruction, and redevelop10 ment of existing obsolete public housing projects and

11 buildings, not more than $120,000,000;

12 ‘‘(iv) for comprehensive improvement assistance

13 grants under section 14(k), not more than

14 $3,241,000;

15 ‘‘(v) for assistance under section 8 for property

16 disposition, not more than $800,000,000;

17 ‘‘(vi) for assistance under section 8 for loan

18 management, not more than $155,000,000;

19 ‘‘(vii) for extensions of contracts expiring under

20 section 8, $6,000,000,000 which shall be for 5-year

21 contracts for assistance under section 8 and vouch22 ers under section 8(o) (as in effect before the date

23 of the enactment of the Housing and Community

24 Development Act of 1994) and for loan management

25 assistance under such section;
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1 ‘‘(viii) for amendments to contracts under sec2 tion 8, such sums as may be necessary;

3 ‘‘(ix) for public housing lease adjustments and

4 amendments, such sums as may be necessary;

5 ‘‘(x) for assistance under section 18(g) for re6 placement housing for units demolished or disposed

7 of under section 18, not more than $273,600,000;

8 ‘‘(xi) for conversions from leased housing con9 tracts under section 23 of this Act (as in effect im10 mediately before the enactment of the Housing and

11 Community Development Act of 1974) to assistance

12 under section 8, such sums as may be necessary;

13 and

14 ‘‘(xii) for grants under section 24 for revitaliza15 tion of severely distressed public housing, not more

16 than $550,000,000.’’.

17 SEC. 102. RESIDENT REPRESENTATION IN PUBLIC HOUS18 ING AGENCIES.

19 (a) REPRESENTATION.—Section 2 of the United

20 States Housing Act of 1937 (42 U.S.C. 1437) is amend21 ed—

22 (1) by inserting ‘‘(a) POLICY.—’’ after ‘‘SEC.

23 2.’’;

24 (2) by striking the last sentence; and
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1 (3) by adding at the end the following new sub2 section:

3 ‘‘(b) GOVERNANCE OF PUBLIC HOUSING AGEN4 CIES.—

5 ‘‘(1) PROHIBITION.—No person may be barred

6 from serving on the board of directors or other simi7 lar governing body of a local public housing agency

8 because of his or her tenancy in a low-income

9 project.

10 ‘‘(2) RESIDENT MEMBERSHIP.—Each public

11 housing agency shall have a board of directors or

12 other similar governing body, of which not less than

13 one-quarter of the members shall be residents of

14 housing units administered or assisted by the agen15 cy, except that in the case of any public housing

16 agency whose board of directors or other governing

17 body consists of 5 members, not less than 1 member

18 shall be a resident of a housing unit administered or

19 assisted by the agency. The requirement in the pre20 ceding sentence with respect to resident members

21 shall not apply to any State or local governing body

22 whose responsibilities include substantial activities

23 other than acting as a public housing agency for

24 purposes of this Act, but shall apply to any advisory

25 committee or organization that is established by
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1 such a governing body and whose responsibilities re2 late only to the governing body’s functions as a pub3 lic housing agency for purposes of this Act.

4 ‘‘(3) CONFLICTS OF INTEREST.—The Secretary

5 shall establish guidelines to prevent conflicts of in6 terest on the part of resident members of the board

7 or directors or governing body of a public housing

8 agency. Such guidelines shall ensure that resident

9 members are able to participate fully in policy and

10 financial matters within the control of the board or

11 body.

12 ‘‘(4) FULL PARTICIPATION.—No public housing

13 agency may limit or restrict the capacity or offices

14 in which a member of such board or body may serve

15 on such board or body solely because of the mem16 ber’s status as a resident member.

17 ‘‘(5) DEFINITION.—For purposes of this sub18 section, the term ‘resident member’ means a member

19 of the board of directors or other similar governing

20 body of a public housing agency who is a resident

21 of a housing unit administered or assisted by the

22 agency.’’.

23 (b) CONFORMING AMENDMENT.—The first sentence

24 of section 3(b)(6) of the United States Housing Act of

25 1937 (42 U.S.C. 1437a(b)(6)) is amended by inserting be-
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1 fore the period at the end the following: ‘‘and complies

2 with the requirements under section 2(b)’’.

3 SEC. 103. DETERMINATION OF MEDIAN INCOME.

4 (a) IN GENERAL.—Section 3(b)(2) of the United

5 States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is

6 amended—

7 (1) in the 4th sentence—

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

9 ‘‘and Rockland Counties’’; and

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

11 county’’; and

12 (2) in the last sentence—

13 (A) by striking ‘‘County’’ the 1st place it

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

15 and

16 (B) by striking ‘‘County’’ the 2d place it

17 appears and inserting ‘‘and Rockland Coun18 ties’’.

19 (b) REGULATIONS AND EFFECTIVE DATE.—The Sec20 retary of Housing and Urban Development shall issue reg21 ulations implementing the amendments made by sub22 section (a) not later than the expiration of the 90-day pe23 riod beginning on the date of the enactment of this Act.

24 The regulations may not take effect until after September

25 30, 1993.
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1 SEC. 104. DEFINITION OF FAMILIES.

2 The first sentence of section 3(b)(3)(B) of the United

3 States Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is

4 amended by inserting ‘‘or, in the case of disabled families,

5 other household members’’ after ‘‘spouses’’.

6 SEC. 105. FAMILY SELF-SUFFICIENCY PROGRAM.

7 (a) SCOPE.—Section 23(b)(3) of the United States

8 Housing Act of 1937 (42 U.S.C. 1437u(b)(3)) is amended

9 to read as follows:

10 ‘‘(3) SCOPE.—Each public housing agency re11 quired to carry out a local program under this sec12 tion shall make assistance under the program avail13 able in a fiscal year, subject only to the availability

14 of amounts for such assistance, to a number of fami15 lies who are assisted by the agency under section 8

16 or reside in public housing of the agency that is

17 equivalent to the sum of—

18 ‘‘(A) the increase for such year in the

19 number of families assisted under section 8 (as

20 compared to the preceding year); and

21 ‘‘(B) the increase for such year in the

22 number of public housing dwelling units made

23 available by the agency (as compared to the

24 preceding year).’’.
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1 (b) VOLUNTARY ESCROW SAVINGS ACCOUNT.—Sec2 tion 23(d) of the United States Housing Act of 1937 (42

3 U.S.C. 1437u(d)) is amended—

4 (1) in paragraph (2)—

5 (A) in the 1st sentence, by striking ‘‘shall’’

6 and inserting ‘‘may’’;

7 (B) in the 2d sentence, by inserting after

8 ‘‘area median income’’ the following: ‘‘that

9 choose to escrow amounts under this para10 graph’’;

11 (C) in the 2d sentence, by striking ‘‘shall’’

12 and inserting ‘‘may’’; and

13 (D) by striking the 3d and 4th sentences

14 and inserting the following new sentence:

15 ‘‘Amounts in the escrow account may be with16 drawn by the participating family upon the suc17 cessful performance of the obligations of the

18 family under the contract of participation en19 tered into by the family under subsection (c), as

20 determined according to the specific goals and

21 terms included in the contract, and under other

22 circumstances, as determined by the public

23 housing agency with the approval of the Sec24 retary.’’; and
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1 (2) by striking the 2d sentence of paragraph

2 (3) and inserting the following new sentence: ‘‘The

3 plan may require the establishment of escrow sav4 ings accounts under paragraph (2), a description of

5 the procedures for release of escrowed amounts, and

6 any other incentives designed by the public housing

7 agency.’’.

8 (c) SERVICE COORDINATORS.—Section 23 of the

9 United States Housing Act of 1937 (42 U.S.C. 1437u)

10 is amended—

11 (1) in the last sentence of subsection (b)(1), by

12 inserting ‘‘under section 671 of the Housing and

13 Community Development Act of 1992’’ after ‘‘serv14 ice coordinator’’; and

15 (2) in subsection (h)—

16 (A) in paragraph (2), by striking ‘‘(includ17 ing the costs of employing a full-time service co18 ordinator)’’; and

19 (B) by adding at the end the following new

20 paragraph:

21 ‘‘(3) CONTRACT ADJUSTMENTS FOR SERVICE

22 COORDINATORS.—If, in providing rental assistance

23 under section 8 of the United States Housing Act of

24 1937 for a public housing agency carrying out a

25 local program under this section in any fiscal year,
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1 the Secretary increases the amount provided for the

2 agency so that the number of families assisted by

3 the agency in the year is greater than the number

4 of families assisted in the preceding year, the Sec5 retary may increase the amount annually provided

6 for the agency to provide for the costs of employing

7 or otherwise retaining the services of one or more

8 service coordinators referred to in subsection (b)(1)

9 of this section. The Secretary may also, under any

10 existing contract for assistance under section 8, in11 clude the cost of employing such service coordinators

12 to the extent that amounts for amendments to such

13 contracts are available.’’.

14 (d) REPEAL OF INCENTIVE AWARD ALLOCATION.—

15 Section 23 of the United States Housing Act of 1937 (42

16 U.S.C. 1437u) is amended—

17 (1) by striking subsection (i); and

18 (2) by redesignating subsections (j) through (o)

19 as subsections (i) through (n), respectively.

20 (e) TECHNICAL AMENDMENT.—Section 23(h)(2) of

21 the United States Housing Act of 1937 (42 U.S.C.

22 1437u(h)(2)) is amended by striking the last sentence.

23 (f) USE OF COMMUNITY ACTION AGENCIES.—Section

24 23(b) of the United States Housing Act of 1937 (42
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1 U.S.C. 1437u(b)) is amended by adding at the end the

2 following new paragraph:

3 ‘‘(5) USE OF COMMUNITY ACTION AGENCIES.—

4 A pubilc housing agency may enter into agreements

5 with any local community action agency receiving as6 sistance under the Community Services Block Grant

7 Act providing for such agency to carry out the local

8 program of the public housing agency or to provide

9 any supportive services under the local program.’’.

10 SEC. 106. USE OF AMOUNTS IN HEADQUARTERS RESERVE.

11 (a) USE FOR FAIR HOUSING ACTIVITIES.—Section

12 213(d)(4)(A) of the Housing and Community Develop13 ment Act of 1974 (42 U.S.C. 1439(d)(4)(A)) is amend14 ed—

15 (1) in clause (iii), by striking ‘‘and’’ at the end;

16 (2) in clause (iv) by striking the period at the

17 end and inserting a semicolon; and

18 (3) by inserting after clause (iv) the following

19 new clauses:

20 ‘‘(v) fair housing activities and cash payments,

21 in connection with the settlement of civil rights liti22 gation (excluding litigation brought by an employee

23 or former employee of the Secretary); and

24 ‘‘(vi) in the case of financial assistance under

25 the rental housing assistance program under section
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1 8 of the United States Housing Act of 1937, provid2 ing assistance pursuant to section 8(q)(4) of such

3 Act.’’.

4 (b) AVAILABILITY OF PUBLIC HOUSING AND SEC5 TION 8 AMOUNTS.—Section 5 of the United States Hous6 ing Act of 1937 (42 U.S.C. 1437c) is amended by adding

7 at the end the following new subsection:

8 ‘‘(m) USE OF AMOUNTS UNDER HEADQUARTERS RE9 SERVE.—Any amounts appropriated for public housing de10 velopment or assistance under section 8, that are retained

11 by the Secretary in accordance with section 213(d)(4)(A)

12 of the Housing and Community Development Act of 1974,

13 may be used for any of the activities specified in clauses

14 (i) through (v) of such section.’’.

15 (c) USE OF SECTION 8 ASSISTANCE FOR PORT16 ABILITY AND NEIGHBORHOOD CRIME FIGHTERS.—Sec17 tion 213(d)(4) of the Housing and Community Develop18 ment Act of 1974 is amended by adding at the end the

19 following new subparagraphs:

20 ‘‘(C) Of any financial assistance for the rental hous21 ing assistance program under section 8 of the United

22 States Housing Act of 1937 that is reserved pursuant to

23 subparagraph (A), 5 percent shall be reserved for use only

24 for the purposes of providing assistance pursuant to sec25 tion 8(o)(6) of such Act.
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1 ‘‘(D) In addition to any financial assistance for the

2 rental housing assistance program under section 8 of the

3 United States Housing Act of 1937 that is reserved pursu4 ant to subparagraphs (A) and (C), the Secretary shall re5 serve not more than an additional $15,000,000 of any fi6 nancial assistance that becomes available under such pro7 gram during each of fiscal years 1995 and 1996 and such

8 additional amounts may be used only for the purpose

9 under clause (vi) of subparagraph (A).’’.

10 Subtitle B—Public and Indian

11 Housing

12 SEC. 111. PUBLIC HOUSING RENT REFORM.

13 (a) CEILING RENTS.—Section 3(a)(2) of the United

14 States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)) is

15 amended—

16 (1) in subparagraph (A)—

17 (A) in clause (i), by striking ‘‘and ap18 proved by the Secretary’’; and

19 (B) by striking clause (iii) and inserting

20 the following new clause:

21 ‘‘(iii) at the election of such agency, is—

22 ‘‘(I) not less than the average monthly

23 amount of debt service and operating expenses

24 attributable to dwelling units of similar size in
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1 public housing projects owned and operated by

2 such agency;

3 ‘‘(II) not less than the reasonable rental

4 value of the unit, as determined by the agency;

5 or

6 ‘‘(III) not less than the local market rent

7 determined by the agency for comparable units

8 of similar size pursuant to the procedures pre9 scribed by the Secretary for determining rent

10 reasonableness under the program for rental

11 certificate assistance under section 8(b).’’;

12 (2) by redesignating subparagraph (B) as sub13 paragraph (D); and

14 (3) by inserting after subparagraph (A) the fol15 lowing new subparagraphs:

16 ‘‘(B) Any ceiling rents established by a public housing

17 agency pursuant to this paragraph may be adjusted by

18 the agency.

19 ‘‘(C)(i) Any ceiling rents established pursuant to

20 subclause (I) or (III) of subparagraph (A)(iii) shall take

21 effect at the discretion of the public housing agency.

22 ‘‘(ii) Any ceiling rents established pursuant to

23 subclause (II) of subparagraph (A)(iii) may not take effect

24 before the issuance of regulations to carry out such

25 subclause, which shall be issued by the Secretary not later
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1 than 180 days after the date of the enactment of the

2 Housing and Community Development Act of 1994.

3 ‘‘(iii) Before the effectiveness of regulations under

4 clause (ii), an agency shall determine the reasonable rental

5 value of unit for purposes of subclause (II) of subpara6 graph (A)(iii) based upon (I) in a project of 50 or more

7 units for which such ceiling rents are being established,

8 the 95th percentile of rents paid for all units in the

9 project, (II) in a group of comparable projects for which

10 such ceiling rents are being established that consists of

11 a total of 50 or more units, all units in the projects, and

12 (III) in a group of at least 50 comparable units for which

13 such ceiling rents are being established, all units in the

14 group.’’.

15 (b) EXCLUSIONS FROM ADJUSTED INCOME.—Sec16 tion 3(b)(5) of the United States Housing Act of 1937

17 (42 U.S.C. 1437a(b)(5)) is amended—

18 (1) in subparagraph (C)—

19 (A) by striking ‘‘and’’ before ‘‘(ii)’’; and

20 (B) by inserting before the semicolon at

21 the end the following; ‘‘; and (iii) to the extent

22 documented by the family, the amount paid by

23 the family for health insurance coverage and

24 any other nonreimbursed out-of-pocket medical

25 expenses for any members of the family resid-
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1 ing in the household who, at the time, are not

2 receiving or approved to receive any assistance

3 for health care from the Federal Government or

4 any State government, except that this clause

5 shall apply only to families residing in public

6 housing’’;

7 (2) in subparagraph (E), by inserting before the

8 semicolon at the end the following: ‘‘, except that in

9 the case of a family residing in public housing the

10 amount excluded under this subparagraph shall be

11 20 percent of the earned income of the family re12 maining after excluding any amounts pursuant to

13 subparagraph (H)’’;

14 (3) in subparagraph (F), by striking ‘‘and’’ at

15 the end;

16 (4) in subparagraph (G), by striking the period

17 at the end and inserting a semicolon; and

18 (5) by adding at the end the following new sub19 paragraphs:

20 ‘‘(H) in the case of a family residing in public

21 housing, any earned income of any formerly depend22 ent child who is a member of the family residing in

23 the family’s dwelling unit during the period begin24 ning on the date of the first redetermination of the

25 rent for and family composition of the family that
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1 occurs after the child reaches 18 years of age and

2 ending upon the date of the first such redetermina3 tion occurring after he or she reaches 21 years of

4 age, except that, effective during and after the first

5 fiscal year that commences after the expiration of

6 the 4-year period beginning on the date of the enact7 ment of this Act, amounts earned by a child may not

8 be excluded under this subparagraph unless (i) the

9 child is enrolled in and attending high school (or a

10 recognized equivalency program), or has received a

11 high school diploma (or the recognized equivalent

12 thereof), or (ii) the public housing agency has deter13 mined that requiring the child to comply with clause

14 (i) would significantly interfere with the sole source

15 of financial support of the family or would otherwise

16 create a significant hardship for the family of the

17 child; and

18 ‘‘(I) in the case of 2-parent families with chil19 dren (as defined by the Secretary by regulation) who

20 reside in public housing, an amount (in addition to

21 any amounts excluded under subparagraphs (E) and

22 (H)) not to exceed 10 percent of any earned income

23 of the family.’’.
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1 (c) EXCLUSION OF EARNED INCOME OF RESIDENTS

2 WHO OBTAIN EMPLOYMENT FROM RENT DETERMINA3 TIONS.—

4 (1) IN GENERAL.—Section 3(a) of the United

5 States Housing Act of 1937 (42 U.S.C. 1437a(a)) is

6 amended—

7 (A) in the third sentence of paragraph (1),

8 by striking ‘‘paragraph (2)’’ and inserting

9 ‘‘paragraphs (2) and (3)’’; and

10 (B) by adding at the end the following new

11 paragraph:

12 ‘‘(3) OPTIONAL EXCLUSION OF EARNED INCOME

13 FROM RENT DETERMINATION FOR FAMILIES PRE14 VIOUSLY UNEMPLOYED.—Notwithstanding any other pro15 vision of law, a public housing agency may provide (at the

16 option of a public housing agency) that, for all units in

17 public housing administered by the agency, the rent pay18 able under subsection (b) for any such unit occupied by

19 a family whose income increases as a result of employment

20 of a member of the family who was previously unemployed

21 for 1 or more years, may not—

22 ‘‘(A) be increased as a result of the increased

23 income due to such employment during the period

24 that begins upon the commencement of such employ25 ment and ends upon the second annual redetermina-
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1 tion of the rent for and family composition of the

2 family occurring thereafter;

3 ‘‘(B) during any 12-month period occurring

4 during the 36 months succeeding the expiration of

5 the period under subparagraph (A) for the family,

6 be increased due to the continued employment of

7 such family member by more than one-third of the

8 difference between (i) the rent being paid by the

9 family upon expiration of such period, and (ii) the

10 amount of rent that the family would pay but for

11 the applicability of this paragraph; and

12 ‘‘(C) in any case, exceed the amount determined

13 under paragraph (1) or (2).’’.

14 (d) EXCLUSION FROM INCOME OF EARNINGS FROM

15 JOB TRAINING AND SELF-SUFFICIENCY PROGRAMS.—

16 Section 3 of the United States Housing Act of 1937 (42

17 U.S.C. 1437a) is amended—

18 (1) in subsection (b)(4), by inserting before the

19 period at the end the following: ‘‘, and except that

20 the earnings of and benefits to any public housing

21 resident resulting from enrollment and participation

22 in a program providing employment training and

23 supportive services in accordance with the Family

24 Support Act of 1988, section 22 of this Act, the Job

25 Training Partnership Act, Subtitle D of title IV of
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1 the Cranston-Gonzalez National Affordable Housing

2 Act, part F of title IV of the Social Security Act,

3 or any comparable Federal, State, or local law shall

4 not be considered as income for the purposes of de5 termining a limitation on the amount of rent paid by

6 the resident during the period that the resident en7 rolls and participates in such program’’; and

8 (2) by striking the undesignated paragraph at

9 the end of subsection (c)(3) (as added by section

10 515(b) of the Cranston-Gonzalez National Afford11 able Housing Act).

12 (e) APPLICABILITY.—Notwithstanding the amend13 ments made by this section, any resident of public housing

14 participating in the program under the authority con15 tained in the undesignated paragraph at the end of section

16 3(c)(3) of the United States Housing Act of 1937 (as

17 added by section 515(b) of the Cranston-Gonzalez Na18 tional Affordable Housing Act (Public Law 101–625; 104

19 Stat. 4199)), as such paragraph existed before the date

20 of enactment of this Act, shall continue to be governed

21 by such authority.

22 (f) PERFORMANCE FUNDING SYSTEM.—Section

23 9(a)(3)(B) of the United States Housing Act of 1937 (42

24 U.S.C. 1437g(a)(3)(B)) is amended—

25 (1) in clause (iv), by striking ‘‘and’’ at the end;
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1 (2) in (v), by striking the period at the end and

2 inserting a semicolon; and

3 (3) by adding at the end the following new

4 clause:

5 ‘‘(vi) the amount of any reduced revenue result6 ing from the exclusion of income of public housing

7 residents pursuant to section 3(b)(5)(E) shall be cal8 culated and included in the amount of the payment

9 received under this section by the public housing

10 agency administering the public housing in which

11 such residents reside;’’.

12 (g) EFFECTIVE DATE.—The amendments under this

13 section shall take effect on the earlier of—

14 (1) date of the effectiveness of the regulations

15 under subsection (i); or

16 (2) the expiration of the 120-day period begin17 ning on the date of the enactment of this Act.

18 (h) REGULATIONS.—The Secretary shall issue any

19 final regulations necessary to implement the amendments

20 made by this section, which shall take effect not later than

21 the expiration of the 120-day period beginning on the date

22 of the enactment of this Act. The regulations shall be is23 sued after notice and opportunity for public comment in

24 accordance with the procedures under section 553 of title

25 5, United States Code, applicable to substantive rules
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1 (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of

2 such section).

3 SEC. 112. SALE OF PUBLIC HOUSING TO NON-PROFIT

4 INTERMEDIARIES.

5 The first sentence of section 5(h) of the United

6 States Housing Act of 1937 (42 U.S.C. 1437c(h)) is

7 amended by striking ‘‘its lower income tenants’’ and in8 serting: ‘‘low-income families residing in public housing or

9 to non-profit organizations for resale to low-income fami10 lies residing in public housing’’.

11 SEC. 113. MAJOR RECONSTRUCTION OF OBSOLETE

12 PROJECTS.

13 (a) ASSISTANCE FOR RECONSTRUCTION.—Section

14 5(j)(2) of the United States Housing Act of 1937 (42

15 U.S.C. 1437c(j)(2)) is amended—

16 (1) in subparagraph (A), by striking ‘‘Notwith17 standing’’ and all that follows through ‘‘fiscal year’’

18 and inserting the following: ‘‘The Secretary may

19 provide assistance under this paragraph’’;

20 (2) in subparagraph (C), by striking ‘‘reserved’’

21 and inserting ‘‘made available for assistance’’;

22 (3) in subparagraph (F)(i), by striking ‘‘re23 served or’’; and
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1 (4) in subparagraph (G)(i), by striking ‘‘re2 served under subparagraph (A)’’ and inserting

3 ‘‘made available for use under this paragraph’’.

4 (b) SET-ASIDE FOR DISABLED FAMILIES.—Section

5 5(j)(2)(G)(i) of the United States Housing Act of 1937

6 (42 U.S.C. 1437c(j)(2)(G)(i)) is amended by striking ‘‘fis7 cal years 1993 and 1994’’ and inserting ‘‘fiscal years 1995

8 and 1996’’.

9 SEC. 114. NEW CONSTRUCTION OF PROJECTS FOR DIS10 ABLED FAMILIES.

11 Section 5(j)(3)(A) of the United States Housing Act

12 of 1937 (42 U.S.C. 1437c(j)(3)(A)) is amended by strik13 ing ‘‘fiscal years 1993 and 1994’’ and inserting ‘‘fiscal

14 years 1995 and 1996’’.

15 SEC. 115. RECAPTURE OF PUBLIC HOUSING DEVELOPMENT

16 AMOUNTS.

17 Section 5(k) of the United States Housing Act of

18 1937 (42 U.S.C. 1437c(k)) is amended by adding before

19 the period at the end of the first sentence the following:

20 ‘‘, unless the Secretary finds that there is no feasible way

21 for the agency to begin construction or rehabilitation, or

22 to complete acquisition, within such period’’.
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1 SEC. 116. REPEAL OF LEAST-COST LIMITATION ON PUBLIC

2 HOUSING NEW CONSTRUCTION.

3 Section 6 of the United States Housing Act of 1937

4 (42 U.S.C. 1437d) is amended by striking subsection (h).

5 SEC. 117. REGULATORY RELIEF AND PAPERWORK REDUC6 TION FOR HIGH-PERFORMING PUBLIC HOUS7 ING AGENCIES.

8 (a) WAIVER OF RULES AND REPORTS.—Section 6(j)

9 of the United States Housing Act of 1937 (42 U.S.C.

10 1437d(j)) is amended by adding at the end the following

11 new paragraph:

12 ‘‘(5)(A) Except as provided in subparagraph (B), the

13 Secretary may, for public housing agencies designated

14 pursuant to this subsection as high performing public

15 housing agencies with respect to a fiscal year, waive (by

16 regulation issued under subparagraph (C)) the applicabil17 ity for the ensuing fiscal year of regulatory requirements

18 otherwise applicable to public housing agencies to the ex19 tent appropriate, as determined by the Secretary, to facili20 tate more efficient operation of such agencies.

21 ‘‘(B) The Secretary may not waive the applicability

22 of any provision—

23 ‘‘(i) limiting occupancy of public housing to

24 low-income families;

25 ‘‘(ii) under section 18 requiring replacement of

26 units in the case of demolition or disposition;
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1 ‘‘(iii) under the Uniform Relocation Assistance

2 and Real Property Acquisition Policies Act of 1970;

3 ‘‘(iv) that prohibits, or the purpose of which is

4 to protect persons against, discrimination on the

5 basis of race, color, religion, sex, marital status, na6 tional origin, age, or handicap, or that relates to fair

7 housing or equal opportunity; or

8 ‘‘(v) under chapter 75 of title 31, United States

9 Code.

10 ‘‘(C) During fiscal year 1995, the Secretary shall

11 publish in the Federal Register a proposed rule providing

12 for the waiver of the regulations to be waived pursuant

13 to this paragraph and identifying such regulations. The

14 Secretary shall publish such proposed rule at a time deter15 mined by the Secretary to be sufficient to provide notice

16 and an opportunity for public comment before issuance of

17 a final rule under this paragraph. Such final rule shall

18 be issued not later than August 31, 1995.’’.

19 (b) RETENTION BY PHA’S OF SAVINGS FROM EFFI20 CIENT MANAGEMENT.—Section 6(e) of the United States

21 Housing Act of 1937 (42 U.S.C. 1437d(e)) is amended

22 to read as follows:

23 ‘‘(e) TREATMENT OF SAVINGS.—

24 ‘‘(1) IN GENERAL.—Any income generated by a

25 high-performing public housing agency that exceeds
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1 the income estimated by the agency to be generated,

2 according to the agency’s annual operating budget,

3 shall be excluded in subsequent years in calculating

4 the amount of the operating subsidy provided under

5 section 9 to the high-performing public housing

6 agency. Such savings shall be retained by the agency

7 for other housing purposes.

8 ‘‘(2) HIGH-PERFORMING PUBLIC HOUSING

9 AGENCY.—For purposes of paragraph (1), the term

10 ‘high-performing public housing agency’ means, with

11 respect to a year, a public housing agency that has

12 been designated pursuant to subsection (j) as a high

13 performing public housing agency for the last fiscal

14 year ending before the commencement of such

15 year.’’.

16 SEC. 118. STANDARDS FOR LEASE TERMINATION AND EX17 PEDITED GRIEVANCE PROCEDURE.

18 Section 6 of the United States Housing Act of 1937

19 (42 U.S.C. 1437d) is amended—

20 (1) in subsection (k), in the first sentence of

21 the matter following paragraph (6), by striking

22 ‘‘criminal’’ the first place it appears; and

23 (2) in subsection (l)(5), by striking ‘‘criminal’’

24 the first place it appears.
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1 SEC. 119. AVAILABILITY OF CRIMINAL CONVICTION INFOR2 MATION FOR SCREENING AND EVICTIONS.

3 Section 6 of the United States Housing Act of 1937

4 (42 U.S.C. 1437d) is amended by adding at the end the

5 following new subsection:

6 ‘‘(q) AVAILABILITY OF CRIMINAL RECORDS.—

7 ‘‘(1) AVAILABILITY.—Notwithstanding any

8 other provision of Federal, State, or local law, upon

9 the request of any public housing agency, the Na10 tional Crime Information Center, police depart11 ments, and any other law enforcement entities shall

12 provide information to the agency regarding the

13 criminal convictions of applicants for, or residents

14 of, public housing for the purpose of applicant

15 screening, lease enforcement, and eviction. A public

16 housing agency may pay a reasonable fee for such

17 information.

18 ‘‘(2) CONTENT.—The information provided

19 under paragraph (1) shall include information re20 garding convictions for any felony and convictions

21 for certain misdemeanors, including crimes of vio22 lence, destruction of property, use, sale, or distribu23 tion of controlled substances, illegal possession or

24 use of firearms, and hate crimes. Such information

25 may not include information regarding any criminal

26 conviction of such an applicant or resident for any
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1 act (or failure to act) occurring before the applicant

2 or resident reached 18 years of age or information

3 regarding any criminal conviction of such an appli4 cant or resident occurring more than 10 years before

5 the request under this subsection is made by the

6 public housing agency.

7 ‘‘(3) USE.—A public housing agency receiving

8 information under this subsection may use such in9 formation only for the purposes provided in this sub10 section and such information may not be disclosed to

11 any person who is not an officer or employee of the

12 public housing agency. The Secretary shall, by regu13 lation, establish procedures necessary to ensure that

14 information provided to a public housing agency

15 under this subsection is used, and confidentiality of

16 such information is maintained, as required under

17 this subsection.

18 ‘‘(4) PENALTY.—Any person who knowingly

19 and willfully requests or obtains any information

20 concerning an applicant for, or resident of, public

21 housing pursuant to the authority under this sub22 section under false pretenses, or any person who

23 knowingly and willfully discloses any such informa24 tion in any manner to any individual not entitled

25 under any law to receive it, shall be guilty of a mis-
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1 demeanor and fined not more than $5,000. The

2 term ‘person’ as used in this paragraph shall include

3 an officer or employee of any public housing agency.

4 ‘‘(5) CIVIL ACTION.— Any applicant for, or

5 resident of, public housing affected by (A) a neg6 ligent or knowing disclosure of information referred

7 to in this section about such person by an officer or

8 employee of any public housing agency, which disclo9 sure is not authorized by this subsection, or (B) any

10 other negligent or knowing action that is inconsist11 ent with this subsection, may bring a civil action for

12 damages and such other relief as may be appropriate

13 against any officer or employee of any public hous14 ing agency responsible for such unauthorized action.

15 The district court of the United States in the dis16 trict in which the affected applicant or resident re17 sides, in which such unauthorized action occurred, or

18 in which the officer or employee alleged to be re19 sponsible for any such unauthorized action resides,

20 shall have jurisdiction in such matters. Appropriate

21 relief that may be ordered by such district courts

22 shall include reasonable attorney’s fees and other

23 litigation costs.’’.
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1 SEC. 120. DESIGNATED HOUSING.

2 (a) APPLICATIONS.—Section 7(e)(1) of the United

3 States Housing Act of 1937 (42 U.S.C. 1437e(e)(1)) is

4 amended—

5 (1) in the first sentence, by striking ‘‘and the

6 Secretary approves an application under this sub7 section for such designation’’; and

8 (2) in the second sentence, by inserting before

9 the period at the end the following: ‘‘, which shall

10 provide that an application for a project (or portion

11 of a project) shall be submitted and considered for

12 approval in conjunction with submission and ap13 proval of the allocation plan for the project (or por14 tion) under section 7(f)’’.

15 (b) LIMITATION ON OCCUPANCY IN PUBLIC HOUSING

16 DESIGNATED FOR ELDERLY FAMILIES.—

17 (1) IN GENERAL.—Section 7(a) of the United

18 States Housing Act of 1937 (42 U.S.C. 1437e(a)) is

19 amended—

20 (A) in paragraph (1), by striking ‘‘Not21 withstanding any other provision of law’’ and

22 inserting ‘‘Subject only to the provisions of this

23 subsection’’;

24 (B) in paragraph (4), by inserting ‘‘, ex25 cept as provided in paragraph (5)’’ before the

26 period at the end; and
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1 (C) by adding at the end the following new

2 paragraph:

3 ‘‘(5) LIMITATION ON OCCUPANCY IN PROJECTS

4 FOR ELDERLY FAMILIES.—

5 ‘‘(A) OCCUPANCY LIMITATION.—Notwith6 standing any other provision of law, a dwelling

7 unit in a project (or portion of a project) that

8 is designated under paragraph (1) for occu9 pancy by only elderly families or by only elderly

10 and disabled families shall not be occupied by—

11 ‘‘(i) any person with disabilities who

12 is not an elderly person and whose history

13 of use of alcohol or drugs constitutes a dis14 ability; or

15 ‘‘(ii) any person who is not an elderly

16 person and whose history of use of alcohol

17 or drugs provides reasonable cause for the

18 agency to believe that the occupancy by

19 such person may interfere with the health,

20 safety, or right to peaceful enjoyment of

21 the premises by other tenants.

22 ‘‘(B) REQUIRED STATEMENT.—A public

23 housing agency may not make a dwelling unit

24 in such a project available for occupancy to any

25 person or family who is not an elderly family,
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1 unless the agency acquires from the person or

2 family a signed statement that no person who

3 will be occupying the unit—

4 ‘‘(i) uses (or has a history of use of)

5 alcohol, or

6 ‘‘(ii) uses (or has a history of use of)

7 drugs,

8 that would interfere with the health, safety, or

9 right to peaceful enjoyment of the premises by

10 other tenants.’’.

11 (2) LEASE PROVISIONS.—Section 6(l) of the

12 United States Housing Act of 1937 (42 U.S.C.

13 1437d(l)) is amended—

14 (A) in paragraph (5), by striking ‘‘and’’ at

15 the end;

16 (B) by redesignating paragraph (6) as

17 paragraph (7); and

18 (C) by inserting after paragraph (5) the

19 following new paragraph:

20 ‘‘(6) provide that any occupancy in violation of

21 the provisions of section 7(a)(5)(A) or the furnishing

22 of any false or misleading information pursuant to

23 section 7(a)(5)(B) shall be cause for termination of

24 tenancy; and’’.
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1 (c) EVICTION OF NONELDERLY TENANTS HAVING

2 DRUG OR ALCOHOL USE PROBLEMS FROM PUBLIC

3 HOUSING DESIGNATED FOR ELDERLY FAMILIES.—Sec4 tion 7(c) of the United States Housing Act of 1937 is

5 amended to read as follows:

6 ‘‘(c) STANDARDS REGARDING EVICTIONS.—

7 ‘‘(1) LIMITATION.—Except as provided in para8 graph (2), any tenant who is lawfully residing in a

9 dwelling unit in a public housing project may not be

10 evicted or otherwise required to vacate such unit be11 cause of the designation of the project (or a portion

12 of the project) pursuant to this section or because

13 of any action taken by the Secretary of Housing and

14 Urban Development or any public housing agency

15 pursuant to this section.

16 ‘‘(2) REQUIREMENT TO EVICT NONELDERLY

17 TENANTS HAVING DRUG OR ALCOHOL USE PROB18 LEMS IN HOUSING DESIGNATED FOR ELDERLY FAMI19 LIES.—The public housing agency administering a

20 project (or portion of a project) described in sub21 section (a)(5)(A) shall evict any person whose occu22 pancy in the project (or portion of the project) vio23 lates subsection (a)(5)(A).

24 ‘‘(3) REQUIREMENT TO EVICT NONELDERLY

25 TENANTS FOR 3 INSTANCES OF PROHIBITED ACTIV-
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1 ITY INVOLVING DRUGS OR ALCOHOL.—With respect

2 to a project (or portion of a project) described in

3 subsection (a)(5)(A), the public housing agency ad4 ministering the project shall evict any person who is

5 not an elderly person and who, during occupancy in

6 the project (or portion thereof), engages on 3 sepa7 rate occasions (occurring after the date of the enact8 ment of the Housing and Community Development

9 Act of 1994) in any activity that threatens the

10 health, safety, or right to peaceful enjoyment of the

11 premises by other tenants and involves the use of al12 cohol or drugs.

13 ‘‘(4) RULE OF CONSTRUCTION.—The provisions

14 of paragraphs (2) and (3) requiring eviction of a

15 person may not be construed to require a public

16 housing agency to evict any other persons who oc17 cupy the same dwelling unit as the person required

18 to be evicted.’’.

19 SEC. 121. PUBLIC HOUSING OPERATING SUBSIDIES.

20 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

21 9(c) of the United States Housing Act of 1937 (42 U.S.C.

22 1437g(c)) is amended—

23 (1) in paragraph (1), by striking ‘‘There’’ and

24 all that follows and inserting the following new sen25 tence: ‘‘There are authorized to be appropriated for
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1 purposes of providing annual contributions under

2 this section $3,146,000,000 for fiscal year 1995 and

3 $3,208,000,000 for fiscal year 1996.’’;

4 (2) in paragraph (2), by striking ‘‘1993 and

5 1994’’ and inserting ‘‘1995 and 1996’’; and

6 (3) in paragraph (3), by striking ‘‘1993 and

7 1994’’ and inserting ‘‘1995 and 1996’’.

8 (b) ELIGIBILITY OF SEVERELY DISTRESSED PUBLIC

9 HOUSING.—Section 9(a)(2) of the United States Housing

10 Act of 1937 is amended—

11 (1) by striking ‘‘one’’ and inserting ‘‘that is

12 (A)’’; and

13 (2) by inserting after ‘‘section 8,’’ the following:

14 ‘‘or (B) assisted under section 24 or the program

15 authorized under (i) the third paragraph of the

16 head, HOMEOWNERSHIP AND OPPORTUNITY FOR

17 PEOPLE EVERYWHERE GRANTS (HOPE GRANTS), of

18 title II of the Departments of Veterans Affairs and

19 Housing and Urban Development, and Independent

20 Agencies Appropriations Act, 1993, or (ii) the head,

21 SEVERELY DISTRESSED PUBLIC HOUSING PROJECTS,

22 of title II of the Department of Veterans Affairs and

23 Housing and Urban Development, and Independent

24 Agencies Appropriations Act, 1994;’’.
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1 (c) INCLUDED COSTS.—Section 9(a)(3)(B) of the

2 United States Housing Act of 1937 (42 U.S.C.

3 1437g(a)(3)(B)), as amended by the preceding provisions

4 of this Act, is further amended by adding at the end the

5 following new clauses:

6 ‘‘(vii) effective for fiscal year 1996 and there7 after, the amount of the payment received under this

8 section by public housing agencies shall be calculated

9 to include—

10 ‘‘(I) benefits (including health care and

11 pensions, annuities, and other retirement bene12 fits) of employees of the agency;

13 ‘‘(II) the amount of any reduced revenue

14 resulting from the amendments made by sub15 sections (b) and (c) of section 573 of the Cran16 ston-Gonzalez National Affordable Housing Act;

17 ‘‘(III) maintenance deferred;

18 ‘‘(IV) utility costs attributable to air condi19 tioning; and

20 ‘‘(V) any increased costs of security for the

21 public housing, attributable to increases in the

22 number of incidents of vandalism and crime in

23 the housing; and

24 ‘‘(viii) effective for fiscal year 1996 and there25 after, the amount of the payment received under this
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1 section by a public housing agency for a fiscal year

2 shall be determined taking into consideration the ac3 tual expenses for the agency for the preceding fiscal

4 year.’’.

5 SEC. 122. ELIGIBLE USES OF EMERGENCY MODERNIZATION

6 FUNDS.

7 Section 14(k)(1) of the United States Housing Act

8 of 1937 (42 U.S.C. 1437l(k)(1)) is amended—

9 (1) in the first sentence, by striking

10 ‘‘$75,000,000’’ and inserting ‘‘$50,000,000’’; and

11 (2) by adding at the end the following new sen12 tence: ‘‘The Secretary shall make any amounts re13 served under this paragraph for any fiscal year that

14 remain unobligated on September 1 of such fiscal

15 year available for modernization needs in connection

16 with the settlement of litigation and desegregation of

17 public housing. Of the amounts reserved each year

18 under this paragraph, the Secretary shall make

19 available to the Inspector General of the Department

20 of Housing and Urban Development not more than

21 $5,000,000 for cost in connection with efforts to

22 combat violent crime in public housing. Using

23 amounts made available pursuant to the preceding

24 sentence during fiscal years 1995 and 1996, the Sec25 retary shall provide amounts in each such fiscal year
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1 for the continuation of the drug elimination activi2 ties under Project Nos. IA05PO98003004 and

3 IA05DEP0980193.’’.

4 SEC. 123. USE OF MODERNIZATION FUNDS FOR REPLACE5 MENT HOUSING.

6 (a) IN GENERAL.—Section 14 of the United States

7 Housing Act of 1937 (42 U.S.C. 1437l) is amended by

8 adding at the end the following new subsection:

9 ‘‘(q) USE OF AMOUNTS FOR REPLACEMENT HOUS10 ING.—

11 ‘‘(1) AUTHORITY.—A public housing agency

12 may use assistance under this section to provide re13 placement housing as required by section 18 by de14 veloping additional housing under this Act, in ac15 cordance with requirements applicable to the devel16 opment of public housing, but only if the cost of pro17 viding such housing (not including costs of demoli18 tion) is more cost effective than the cost of mod19 ernization of the housing proposed to be replaced.

20 ‘‘(2) LIMITATION ON AMOUNT.—In any fiscal

21 year, a public housing agency may not use more

22 than 50 percent of any assistance provided to the

23 agency under this section for the fiscal year for pro24 viding replacement housing pursuant to this section.
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1 ‘‘(3) REQUIREMENTS.—A public housing agen2 cy may use assistance under this section as provided

3 in subsection (a) only if the replacement of units is

4 included in the replacement plan of the agency.’’.

5 (b) AVAILABLE REPLACEMENT HOUSING.—Section

6 14(c)(1) of the United States Housing Act of 1937 is

7 amended by inserting before the semicolon the following:

8 ‘‘or, only in the case of assistance used as provided under

9 subsection (q), housing or units in housing owned (or

10 leased for a period to be determined by the Secretary) by

11 a partnership of a public housing agency and other entity

12 in which the agency has a controlling interest’’.

13 SEC. 124. AUTHORITY FOR PUBLIC HOUSING AGENCIES TO

14 LEVERAGE AMOUNTS FOR REPLACEMENT

15 AND MODERNIZATION.

16 Section 14 of the United States Housing Act of 1937

17 (42 U.S.C. 1437l) is amended by adding after subsection

18 (q), as added by the preceding provisions of this Act, the

19 following new subsection:

20 ‘‘(r) AUTHORITY FOR PUBLIC HOUSING AGENCIES

21 TO LEVERAGE AMOUNTS FOR REPLACEMENT AND MOD22 ERNIZATION.—

23 ‘‘(1) GENERAL AUTHORIZATION.—The Sec24 retary may, upon such terms and conditions as the

25 Secretary may prescribe, authorize a public housing
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1 agency (or a partnership including a public housing

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

3 to leverage amounts which shall be used for financ4 ing housing to replace existing public housing dwell5 ing units or for modernization of public housing, but

6 only if the agency submits to the Secretary a plan

7 for such leveraging that is approved by the Sec8 retary.

9 ‘‘(2) REQUIREMENTS.—The Secretary may ap10 prove a plan for leveraging under paragraph (1) only

11 if the Secretary determines that—

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

13 ability to use the leveraged amounts effectively,

14 directly or through contract management;

15 ‘‘(B) of any land owned by the public

16 housing agency upon the approval of the plan

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

18 acquired by the agency under the plan, a por19 tion equivalent in area to the portion used

20 under the plan for providing housing to replace

21 public housing dwelling units in accordance

22 with section 18 is subject to binding covenants

23 or commitments sufficient to ensure that the

24 land will be used permanently for housing re-
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1 served for occupancy by low- and very low-in2 come families;

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

4 under the plan complies with the modernization

5 plan submitted under this section by the public

6 housing agency and any replacement of public

7 housing dwelling units to be carried out under

8 the plan complies with the requirements of sec9 tion 18;

10 ‘‘(D) the plan provides permanent financ11 ing commitments from a sufficient number of

12 additional sources, which may include banks

13 and other conventional lenders, State housing

14 finance agencies, secondary market entities, and

15 other financial institutions;

16 ‘‘(E) the public housing agency submitting

17 the plan has an acceptable rate of obligation of

18 assistance provided under this section; and

19 ‘‘(F) the plan complies with any other cri20 teria that the Secretary may establish.

21 ‘‘(3) OBLIGATION LIMITS.—

22 ‘‘(A) PER PHA.—The aggregate outstand23 ing principal amount leveraged under this sub24 section by a public housing agency may not at

25 any time exceed 5 times the amount of the most
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1 recent grant for a fiscal year provided under

2 this section for comprehensive modernization.

3 ‘‘(B) FOR ALL PHAS.—The aggregate out4 standing principal amount leveraged under this

5 subsection by all public housing agencies may

6 not, in any single fiscal year, exceed

7 $2,000,000,000.

8 ‘‘(4) USE OF COMPREHENSIVE MODERNIZATION

9 GRANTS AND OPERATING REVENUES.—Notwith10 standing any other provision of this title, a public

11 housing agency for which a plan is approved under

12 this subsection may use amounts provided under this

13 section to the agency for comprehensive moderniza14 tion and amounts provided under section 9 to the

15 agency for operating subsidies (including program

16 income derived therefrom) for the payment of prin17 cipal, interest, and fees due on any loans obtained

18 pursuant to the plan.

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

20 report to the Congress annually regarding the activi21 ties under plans for leveraging approved under this

22 subsection and the status of loans, financing, and in23 vestments obtained under such plans.’’.
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1 SEC. 125. DEMOLITION AND DISPOSITION OF PUBLIC

2 HOUSING.

3 Section 18 of the United States Housing Act of 1937

4 (42 U.S.C. 1437p) is amended to read as follows:

5 ‘‘DEMOLITION AND DISPOSITION OF PUBLIC HOUSING

6 ‘‘SEC. 18. (a) CONDITION OF HOUSING.—The Sec7 retary may approve an application by a public housing

8 agency for permission to demolish or dispose of a public

9 housing project or a portion of a public housing project

10 only if the Secretary has determined that—

11 ‘‘(1) in the case of—

12 ‘‘(A) an application proposing demolition

13 of a public housing project or a portion of a

14 public housing project, the project or portion of

15 the project is obsolete as to physical condition,

16 location, or other factors, and it is more cost ef17 fective to replace the project or portion of the

18 project than to rehabilitate the project or por19 tion of the project; or

20 ‘‘(B) an application proposing the demoli21 tion of only a portion of a project, the demoli22 tion will help to assure the remaining useful life

23 of the remaining portion of the project;

24 ‘‘(2) in the case of an application proposing dis25 position of real property of a public housing agency

26 by sale or other transfer—
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1 ‘‘(A)(i) the property’s retention is not in

2 the best interests of the tenants or the public

3 housing agency because (I) developmental

4 changes in the area surrounding the project ad5 versely affect the health or safety of the tenants

6 or the feasible operation of the project by the

7 public housing agency, (II) disposition will allow

8 the acquisition, development, or rehabilitation

9 of other properties which will be more effi10 ciently or effectively operated as low-income

11 housing and which will preserve the total

12 amount of low-income housing stock available in

13 the community or housing sufficient to address

14 the needs of the community as described in the

15 comprehensive housing affordability strategy

16 under section 105 of the Cranston-Gonzalez

17 National Affordable Housing Act, or (III) be18 cause of other factors which the Secretary de19 termines are consistent with the best interests

20 of the tenants and public housing agency and

21 which are not inconsistent with other provisions

22 of this Act; and

23 ‘‘(ii) for property other than dwelling

24 units, the property is excess to the needs of a

25 project or the disposition is incidental to, or
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1 does not interfere with, continued operation of

2 a project; and

3 ‘‘(B) the net proceeds of the disposition

4 will be used for (i) the payment of development

5 costs for the replacement housing and for the

6 retirement of outstanding obligations issued to

7 finance original development or modernization

8 of the project, which, in the case of scattered9 site housing of a public housing agency, shall be

10 in an amount that bears the same ratio to the

11 total of such costs and obligations as the num12 ber of units disposed of bears to the total num13 ber of units of the project at the time of dis14 position, and (ii) to the extent that any pro15 ceeds remain after the application of proceeds

16 in accordance with clause (i), the provision of

17 housing assistance for low-income families

18 through such measures as modernization of low19 income housing, or the acquisition, develop20 ment, or rehabilitation of other properties to

21 operate as low-income housing; or

22 ‘‘(3) in the case of an application proposing

23 demolition or disposition of any portion of a public

24 housing project, assisted at any time under section

25 5(j)(2)—
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1 ‘‘(A) such assistance has not been provided

2 for the portion of the project to be demolished

3 or disposed within the 10-year period ending

4 upon submission of the application; or

5 ‘‘(B) the property’s retention is not in the

6 best interest of the tenants or the public hous7 ing agency because of changes in the area sur8 rounding the project or other circumstances of

9 the project, as determined by the Secretary.

10 ‘‘(b) TENANT INVOLVEMENT AND REPLACEMENT

11 HOUSING.—The Secretary may approve an application or

12 furnish assistance under this section or under this Act

13 only if the following requirements are met:

14 ‘‘(1) TENANT CONSULTATION AND EMPLOY15 MENT.—The application from the public housing

16 agency—

17 ‘‘(A) has been developed in consultation

18 with tenants and tenant councils, if any, who

19 will be affected by the demolition or disposition;

20 ‘‘(B) includes a plan to employ public

21 housing tenants in construction or rehabilita22 tion to the extent practicable, pursuant to sec23 tion 3 of the Housing and Urban Development

24 Act of 1968; and
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1 ‘‘(C) contains a certification by appropriate

2 local government officials that the proposed ac3 tivity is consistent with the applicable com4 prehensive housing affordability strategy under

5 section 105 of the Cranston-Gonzalez National

6 Affordable Housing Act.

7 ‘‘(2) RELOCATION ASSISTANCE.—All tenants to

8 be relocated as a result of the demolition or disposi9 tion will be provided assistance by the public housing

10 agency and are relocated to other decent, safe, sani11 tary, and affordable housing, which is, to the maxi12 mum extent practicable, housing of their choice, in13 cluding housing assisted under section 8 of this Act.

14 ‘‘(3) REPLACEMENT HOUSING.—The public

15 housing agency has developed a plan that provides

16 for additional decent, safe, sanitary, and affordable

17 dwelling unit for each public housing dwelling unit

18 to be demolished or disposed under such application

19 or provides additional dwelling units sufficient to ad20 dress the needs and demographic characteristics of

21 the number of applicants on the waiting list of the

22 agency equal to the number of units to be demol23 ished or disposed of or the needs of the community

24 as described in the comprehensive housing afford25 ability strategy under section 105 of the Cranston-
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1 Gonzalez National Affordable Housing Act, which

2 plan—

3 ‘‘(A) provides for the provision of such ad4 ditional dwelling units through—

5 ‘‘(i) the acquisition or development of

6 additional public housing dwelling units,

7 which may be units in housing owned (or

8 leased for a period to be determined by the

9 Secretary) by a partnership of a public

10 housing agency and other entity in which

11 the agency has a controlling interest;

12 ‘‘(ii) the use of 15-year project-based

13 assistance under section 8;

14 ‘‘(iii) in the case of an application

15 proposing demolition or disposition of 200

16 or more units, the use of tenant-based as17 sistance under section 8 having a term of

18 not less than 5 years;

19 ‘‘(iv) units acquired or otherwise pro20 vided for homeownership (including cooper21 ative and condominium interests) by public

22 housing residents under section 5(h), sub23 title B or C of title IV of the Cranston24 Gonzalez National Affordable Housing Act,

25 or other programs for homeownership that
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1 have program requirements substantially

2 equivalent to the requirements established

3 under section 605 of the Housing and

4 Community Development Act of 1987;

5 ‘‘(v) affordable housing homeowner6 ship units assisted under title II of the

7 Cranston-Gonzalez National Affordable

8 Housing Act and sold to public housing

9 residents;

10 ‘‘(vi) rental units that are (I) assisted

11 under title II of the Cranston-Gonzalez

12 National Affordable Housing Act (notwith13 standing section 212(d)(2) of such Act), or

14 (II) assisted under a State or local rental

15 assistance program that provides for rental

16 assistance over a term of not less than 15

17 years that is comparable in terms of eligi18 bility and contribution to rent to assistance

19 under section 8, except that this subclause

20 shall only apply in cases provided under

21 subparagraph (C);

22 ‘‘(vii) housing assisted by a tax credit

23 under section 42 of the Internal Revenue

24 Code;
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1 ‘‘(viii) housing acquired from the Res2 olution Trust Corporation or the Federal

3 Deposit Insurance Corporation;

4 ‘‘(ix) housing acquired under section

5 203 of the Housing and Community Devel6 opment Amendments of 1978;

7 ‘‘(x) other manners approved by the

8 Secretary; or

9 ‘‘(xi) any combination of such meth10 ods;

11 ‘‘(B) in the case of an application propos12 ing demolition or disposition of 200 or more

13 units, shall provide that—

14 ‘‘(i) not less than 50 percent of such

15 additional dwelling units shall be provided

16 through the acquisition or development of

17 additional dwelling units or through

18 project-based assistance; and

19 ‘‘(ii) not more than 50 percent of such

20 additional dwelling units shall be provided

21 through tenant-based assistance under sec22 tion 8 having a term of not less than 5

23 years;
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1 ‘‘(C) if it provides for the use of tenant2 based assistance provided under section 8 or

3 otherwise, may be approved—

4 ‘‘(i) only after a finding by the Sec5 retary that replacement with project-based

6 assistance is not feasible, and the supply of

7 private rental housing actually available to

8 those who would receive such assistance

9 under the plan is sufficient for the total

10 number of families in the community as11 sisted with tenant-based assistance after

12 implementation of the plan and that such

13 supply is likely to remain available for the

14 full term of the assistance; and

15 ‘‘(ii) only if such finding is based on

16 objective information, which shall include

17 rates of participation by landlords in the

18 section 8 program, size, conditions and

19 rent levels of available rental housing as

20 compared to section 8 standards, the sup21 ply of vacant existing housing meeting the

22 section 8 housing quality standards with

23 rents at or below the fair market rental,

24 the number of eligible families waiting for

25 public housing or housing assistance under
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1 section 8, and the extent of discrimination

2 against the types of individuals or families

3 to be served by the assistance;

4 ‘‘(D) may provide that all or part of such

5 additional dwelling units may be located outside

6 the jurisdiction of the public housing agency (in

7 this subparagraph referred to as the ‘original

8 agency’) if—

9 ‘‘(i) the location is in the same hous10 ing market area as the original agency, as

11 determined by the Secretary; and

12 ‘‘(ii) the plan contains an agreement

13 between the original agency and the public

14 housing agency in the alternate location or

15 other public or private entity that will be

16 responsible for providing the additional

17 units in the alternate location that such al18 ternate agency or entity will, with respect

19 to the dwelling units involved—

20 ‘‘(I) provide the dwelling units in

21 accordance with subparagraph (A);

22 ‘‘(II) complete the plan on sched23 ule in accordance with subparagraph

24 (F);
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1 ‘‘(III) meet the requirements of

2 subparagraph (G) of this paragraph

3 and the maximum rent provisions of

4 subparagraph (H);

5 ‘‘(IV) not impose a local resi6 dency preference on any resident of

7 the jurisdiction of the original agency

8 for purposes of admission to any such

9 units; and

10 ‘‘(V) allow that preference for ad11 mission to any such additional units

12 may be provided to residents of the

13 severely distressed public housing

14 dwelling units replaced under this

15 subparagraph pursuant to section 24;

16 ‘‘(E) includes a schedule for completing

17 the plan within a period consistent with the size

18 of the proposed demolition or disposition and

19 replacement plan, which—

20 ‘‘(i) shall not exceed 6 years, except

21 that the Secretary may extend the schedule

22 to not more than 10 years if the Secretary

23 determines that good cause exists to ex24 tend the implementation of the replace25 ment plan under this subsection; and
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1 ‘‘(ii) the demolition or disposition

2 under the plan can occur in phases nec3 essary to provide for relocation of tenants

4 under paragraph (2);

5 ‘‘(F) includes a method of ensuring that

6 the same number of individuals and families

7 will be provided housing;

8 ‘‘(G) provides for the payment of the relo9 cation expenses of each tenant to be displaced

10 and ensures that the rent paid by the tenant

11 following relocation will not exceed the amount

12 permitted under this Act;

13 ‘‘(H) prevents the taking of any action to

14 demolish or dispose of any unit until the tenant

15 of the unit is relocated to decent, safe, sanitary,

16 and affordable housing; and

17 ‘‘(I) permits the Secretary to intervene and

18 take any actions necessary to complete the plan

19 if the public housing agency fails, without good

20 cause, to carry out its obligations under the

21 plan.

22 ‘‘(c) LIMITATION ON DEMOLITION AND EXEMP23 TION.—

24 ‘‘(1) MAXIMUM PERCENTAGE.—Notwithstand25 ing any other provision of this section, in any 5-year
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1 period a public housing agency may demolish not

2 more than the lesser of 5 dwelling units or 5 percent

3 of the total dwelling units owned and operated by

4 the public housing agency, without providing an ad5 ditional dwelling unit for each such public housing

6 dwelling unit to be demolished, but only if the space

7 occupied by the demolished unit is used for meeting

8 the service or other needs of public housing resi9 dents.

10 ‘‘(2) SITE AND NEIGHBORHOOD STANDARDS

11 EXEMPTION.—Notwithstanding any other provision

12 of law, a replacement plan under subsection (b)(3)

13 may provide for demolition of public housing units

14 and replacement of such units on site or in the same

15 neighborhood if the number of replacement units

16 provided in the same neighborhood is fewer than the

17 number of units demolished and the balance of re18 placement units are provided elsewhere in the juris19 diction or pursuant to subsection (b)(3)(D).

20 ‘‘(d) TREATMENT OF REPLACEMENT UNITS.—With

21 respect to any dwelling units developed, acquired, or leased

22 by a public housing agency pursuant to a replacement plan

23 under subsection (b)(3)—

24 ‘‘(1) assistance may be provided under section

25 9 for such units; and
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1 ‘‘(2) such units shall be available for occupancy,

2 operated and managed in the manner required for

3 public housing, and shall be subject to the other re4 quirements applicable to public housing dwelling

5 units.

6 ‘‘(e) APPROVAL OF APPLICATIONS.—

7 ‘‘(1) IN GENERAL.—The Secretary shall notify

8 a public housing agency submitting an application

9 under this section for demolition or disposition and

10 replacement of a public housing project or portion of

11 a project of the approval or disapproval of the appli12 cation not later than 60 days after receiving the ap13 plication. If the Secretary does not notify the public

14 housing agency as required under this paragraph or

15 paragraph (2), the application shall be considered to

16 have been approved.

17 ‘‘(2) DISAPPROVAL AND RESUBMISSION.—If the

18 Secretary disapproves an application, the Secretary

19 shall specify in the notice of disapproval the reasons

20 for the disapproval and the agency may resubmit the

21 application as amended or modified.

22 ‘‘(3) ANNUAL REPORT.—The Secretary shall

23 submit a report to the Congress annually describing

24 for the year the applications under this section ap25 proved and disapproved, the number, general condi-
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1 tion, and location of units demolished or disposed of,

2 and the number, general condition, location and

3 method of provision of units of replacement housing

4 provided pursuant to this section.

5 ‘‘(f) ACTION BEFORE APPROVAL OF APPLICATION.—

6 ‘‘(1) PROHIBITED ACTION.—A public housing

7 agency shall not take any action to demolish or dis8 pose of a public housing project or a portion of a

9 public housing project without obtaining the ap10 proval of the Secretary and satisfying the conditions

11 specified in subsections (a) and (b).

12 ‘‘(2) ALLOWABLE RELOCATION.—A public

13 housing agency may relocate tenants of public hous14 ing into other dwelling units before the approval of

15 an application under this section for demolition or

16 disposition or prior to implementing a plan for mod17 ernization under section 14 or 24, if units to be de18 molished or disposed of are not decent, safe, and

19 sanitary, or if the units to be rehabilitated can not

20 be maintained cost-effectively in a decent, safe, and

21 sanitary condition.

22 ‘‘(g) ASSISTANCE FOR REPLACEMENT HOUSING.—

23 The Secretary may provide assistance under this sub24 section for—
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1 ‘‘(1) providing replacement public housing units

2 pursuant to subsection (b)(3)(A) for units demol3 ished or disposed of pursuant to this section; and

4 ‘‘(2) providing assistance under section 8 for

5 replacement housing pursuant to subsection

6 (b)(3)(A) for units demolished or disposed of pursu7 ant to this section.

8 ‘‘(h) INAPPLICABILITY TO PUBLIC HOUSING HOME9 OWNERSHIP PROGRAM.—The provisions of this section

10 shall not apply to the disposition of a public housing

11 project in accordance with an approved homeownership

12 program under title III of this Act.

13 ‘‘(i) EXCEPTION TO REPLACEMENT RULE.—

14 ‘‘(1) REQUIREMENTS FOR WAIVER.—The Sec15 retary shall waive the applicability of the provisions

16 of subsection (b)(3) with respect to any application

17 under this section by a public housing agency for the

18 demolition or disposition of public housing dwelling

19 units if—

20 ‘‘(A) the Secretary determines, based on

21 information provided by the public housing

22 agency in the application and the request under

23 paragraph (2), that—

24 ‘‘(i) the requirements under sub25 section (b)(3) are preventing or interfering
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1 with the development or acquisition of new

2 public housing dwelling units by the agen3 cy;

4 ‘‘(ii) the long-term goal of the agency

5 in requesting the waiver under this sub6 section is to increase the number of habit7 able public housing dwelling units of the

8 agency;

9 ‘‘(iii) maintaining and operating the

10 dwelling units to be demolished or disposed

11 of is not cost effective; and

12 ‘‘(iv) sufficient financial assistance is

13 not, and will not be, available to the public

14 housing agency to rehabilitate or replace

15 all or some of the units;

16 ‘‘(B) the Secretary determines that replac17 ing the dwelling units to be demolished or dis18 posed under the application is unnecessary be19 cause other affordable housing is available in

20 the area in which the units are located, and in

21 making such determination the Secretary shall

22 consider the assessment submitted by the public

23 housing agency under paragraph (2)(C); and
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1 ‘‘(C) the public housing agency requests a

2 waiver under this subsection in accordance with

3 the requirements under paragraph (2).

4 ‘‘(2) REQUEST FOR WAIVER.—To be eligible for

5 a waiver under this subsection, a public housing

6 agency shall submit to the Secretary a request for

7 a waiver under this subsection that includes—

8 ‘‘(A) a comprehensive plan for demolition,

9 disposition, and replacement that describes ad10 ditional dwelling units to be made available by

11 the public housing agency;

12 ‘‘(B) an identification of the dwelling units

13 for which the waiver is requested; and

14 ‘‘(C) an assessment of the need of replac15 ing such dwelling units including the unit size,

16 age, general condition, and length of time such

17 units have been vacant, the condition of the

18 neighborhood in which the dwelling units are lo19 cated, and the availability of dwelling units af20 fordable to low-income families within the juris21 diction in which the dwelling units are located,

22 during the implementation of the replacement

23 plan.

24 ‘‘(3) SUBMISSION TO SECRETARY.—A request

25 for a waiver under this subsection may be submitted
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1 at any time. The request shall be submitted to the

2 Secretary by certified mail or any other equivalent

3 means that provides notification to the public hous4 ing agency making the request of the date of receipt

5 by the Secretary.

6 ‘‘(4) NOTICE OF DISPOSITION OF REQUEST.—

7 Except as provided in paragraph (5), the Secretary

8 shall notify a public housing agency requesting a

9 waiver under this section of the approval or dis10 approval of the request not later than 45 days after

11 receiving the request. If the Secretary does not no12 tify the public housing agency as required under this

13 paragraph or paragraph (5), the request for a waiver

14 shall be considered to have been approved.

15 ‘‘(5) REQUEST FOR ADDITIONAL INFORMA16 TION.—If the Secretary determines that more infor17 mation is needed to make the determinations under

18 paragraph (1) than has been provided by the public

19 housing agency, the Secretary shall notify the agen20 cy in writing not later 30 days after receiving the re21 quest for the waiver that additional information is

22 necessary. Such notice shall describe specifically the

23 additional information required for the determina24 tions and establish a deadline for the submission of

25 the information by the agency, which shall be deter-
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1 mined based on the difficulty of obtaining the infor2 mation requested. If the agency submits such addi3 tional information requested before the deadline es4 tablished in the notice under this paragraph, the

5 Secretary shall notify the agency requesting the

6 waiver that the request is approved or disapproved

7 not later than 30 days after the submission of such

8 additional information.

9 ‘‘(6) STATEMENT OF REASONS FOR DENYING

10 OR APPROVING REQUEST.—The Secretary shall in11 clude, in each notice under paragraph (4) or (5) of

12 the denial or approval of a request for a waiver

13 under this subsection, the specific reasons for deny14 ing or approving the request. The denial of any re15 quest for a waiver for public housing dwelling units

16 shall not prejudice the consideration of any other

17 subsequent request for such a waiver for any of such

18 dwelling units.’’.

19 SEC. 126. PUBLIC HOUSING RESIDENT OPPORTUNITY.

20 Section 20 of the United States Housing Act of 1937

21 (42 U.S.C. 1437r) is amended—

22 (1) by striking the section heading and insert23 ing the following new section heading:

24 ‘‘RESIDENT OPPORTUNITY PROGRAM’’;

25 (2) in the first 2 sentences of subsection (b), by

26 striking ‘‘resident management program’’ each place
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1 it appears and inserting ‘‘resident opportunity pro2 gram’’; and

3 (3) in subsection (f)—

4 (A) by striking ‘‘RESIDENT MANAGEMENT

5 TECHNICAL ASSISTANCE AND TRAINING’’ and

6 inserting ‘‘RESIDENT OPPORTUNITY ASSIST7 ANCE’’;

8 (B) in paragraph (1), by adding at the end

9 the following new sentences: ‘‘In addition, the

10 Secretary may provide financial assistance to

11 resident management corporations or resident

12 councils for activities sponsored by resident or13 ganizations for job training, economic develop14 ment, security, and other self-sufficiency activi15 ties beyond those related to the management of

16 public housing. Any resident management cor17 poration or resident council may use such as18 sistance to enter into agreements with any local

19 community action agency receiving assistance

20 under the Community Services Block Grant Act

21 for such agency to carry out such activities.’’;

22 (C) in paragraph (2), by striking

23 ‘‘$100,000’’ and inserting ‘‘$250,000’’;

24 (D) by striking paragraph (3) and insert25 ing the following new paragraph:
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1 ‘‘(3) FUNDING.—Of any amounts made avail2 able for financial assistance under section 14, the

3 Secretary may use to carry out this subsection

4 $25,000,000 for fiscal year 1995 and $25,000,000

5 for fiscal year 1996.’’;

6 (E) by redesignating paragraphs (2)

7 through (4) as paragraphs (3) through (5), re8 spectively; and

9 (F) by inserting after paragraph (1) the

10 following new paragraph:

11 ‘‘(2) OTHER USES OF ASSISTANCE.—The Sec12 retary may use amounts available to carry out this

13 subsection to enter into contracts with—

14 ‘‘(A) various entities for monitoring, eval15 uation, technical assistance, and information

16 dissemination in connection with activities

17 under this subsection; and

18 ‘‘(B) resident organizations and public or

19 private entities (including local community ac20 tion agencies receiving assistance under the

21 Community Services Block Grant Act) for ac22 tivities that support the economic development

23 and increased self-sufficiency of public housing

24 residents.
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1 Eligible activities related to economic development

2 and self-sufficiency may include programs for coun3 seling, treatment for substance abuse, child care, re4 medial education, job training, and development of

5 resident businesses.’’.

6 SEC. 127. PUBLIC HOUSING FAMILY INVESTMENT CENTERS.

7 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

8 22(k) of the United States Housing Act of 1937 (42

9 U.S.C. 1437t(k)) is amended to read as follows:

10 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There

11 are authorized to be appropriated to carry out this section

12 $50,000,000 for fiscal year 1995 and $50,000,000 for fis13 cal year 1996.’’.

14 (b) PURPOSES.—Section 22(a) of the United States

15 Housing Act of 1937 (42 U.S.C. 1437t(a)) is amended—

16 (1) in the matter preceding paragraph (1) by

17 inserting before ‘‘to provide’’ the following: ‘‘to pro18 vide job training and employment services to public

19 housing residents in connection with public and pri20 vate sector jobs generated by construction, mod21 ernization, maintenance, and supportive service ac22 tivities of public housing and other housing projects

23 and programs assisted by the Department of Hous24 ing and Urban Development and’’;
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1 (2) by redesignating paragraphs (2), (3), and

2 (4), as paragraphs (3), (4), and (5), respectively;

3 (3) by inserting after paragraph (1) the follow4 ing new paragraph:

5 ‘‘(2) operating job banks, assisting employers to

6 develop training and apprenticeship programs, as7 sisting businesses of public housing residents, and

8 other employment-related activities;’’; and

9 (4) by adding at the end the following new

10 flush sentence:

11 ‘‘The provision of services under this section shall be con12 sidered the provision of housing for purposes of section

13 3 of the Housing and Urban Development Act of 1968.’’.

14 (c) ELIMINATION OF SUPPORTIVE SERVICES CAP.—

15 Section 22(c)(4) of the United States Housing Act of

16 1937 is amended by striking ‘‘not more than 15 percent

17 of’’.

18 (d) ECONOMIC OPPORTUNITY ACTIVITIES.—Section

19 22 of the United States Housing Act of 1937 is amend20 ed—

21 (1) by striking subsection (b) and inserting the

22 following new subsection:

23 ‘‘(b) GRANT AUTHORITY.—The Secretary may make

24 grants to public housing agencies, and to local community

25 action agencies that are receiving assistance under the
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1 Community Services Block Grant Act and are working in

2 coordination with public housing agencies, to adapt and

3 provide sites in or near public housing for providing serv4 ices to help families residing in the public housing gain

5 better access to educational and job opportunities to

6 achieve self-sufficiency and independence, and to provide

7 such services. Assistance under this section may be made

8 available only for public housing agencies that dem9 onstrate to the satisfaction of the Secretary that support10 ive services (as such term is defined in subsection (j)) will

11 be made available. Facilities assisted under this section

12 shall be located in or near the premises of public hous13 ing.’’;

14 (2) in subsection (c)(3), by striking ‘‘the ren15 ovation of facilities located near the premises of 1 or

16 more public housing projects’’ and inserting the fol17 lowing: ‘‘the acquisition of facilities located near the

18 premises of 1 or more public housing projects, the

19 acquisition and renovation of such facilities, or the

20 renovation of such facilities,’’; and

21 (3) in subsection (j)—

22 (A) in the first sentence, by inserting be23 fore the period at the end the following: ‘‘(in24 cluding opportunities under a Family Self-Suffi25 ciency program under section 23 of this Act,
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1 subtitle D of title IV of the Cranston-Gonzalez

2 National Affordable Housing Act, and the Job

3 Training Partnership Act) and to facilitating

4 participation in such opportunities’’;

5 (B) in paragraph (5), by striking ‘‘and’’ at

6 the end;

7 (C) by redesignating paragraphs (4), (5),

8 and (6) as paragraphs (5), (6), and (15), re9 spectively; and

10 (D) by inserting after paragraph (3) the

11 following new paragraph:

12 ‘‘(4) English language education for persons

13 having no or limited proficiency in English;’’; and

14 (E) by inserting after paragraph (6) (as so

15 redesignated) the following new paragraphs:

16 ‘‘(7) providing a job bank of available employ17 ment positions;

18 ‘‘(8) assisting contractors, contractor associa19 tions, and joint labor-management committees to de20 velop and assist training and apprenticeship pro21 grams;

22 ‘‘(9) funding start-up costs of business employ23 ing, or owned by, public housing residents;

24 ‘‘(10) providing coordination with related gov25 ernment and private programs;
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1 ‘‘(11) carrying out job-related activities nec2 essary to establish and operate a family investment

3 center, including training, supervision of trainees,

4 and job recruitment;

5 ‘‘(12) apprenticeship training of public housing

6 residents in job skills used in the construction mod7 ernization, maintenance, and operation of public

8 housing and other housing assisted by the Depart9 ment of Housing and Urban Development;

10 ‘‘(13) employing public housing residents in

11 modernization, maintenance, and operation of public

12 housing and other housing assisted by the Depart13 ment of Housing and Urban Development;

14 ‘‘(14) training and employing public housing

15 residents in jobs providing supportive services to

16 residents participating in the program for family

17 self-sufficiency and other economic independence;

18 and’’.

19 (e) USE OF COMMUNITY ACTION AGENCIES.—Sec20 tion 22 of the United States Housing Act of 1937 is

21 amended—

22 (1) in subsection (c)(4), by inserting ‘‘, includ23 ing local community action agencies receiving assist24 ance under the Community Services Block Grant

25 Act’’ after ‘‘providers’’; and
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1 (2) in subsection (h), by striking ‘‘employ’’ and

2 inserting ‘‘provide for the employment of’’.

3 SEC. 128. REVITALIZATION OF SEVERELY DISTRESSED PUB4 LIC HOUSING.

5 (a) PLANNING GRANTS.—Subsection (c) of section 24

6 of the United States Housing Act of 1937 (42 U.S.C.

7 1437v(c)) is amended—

8 (1) in paragraph (2) by striking ‘‘$200,000’’

9 and inserting ‘‘$300,000’’;

10 (2) in paragraph (3)—

11 (A) in subparagraph (G), by striking ‘‘de12 signing a suitable replacement housing plan’’

13 and inserting ‘‘designing suitable relocation and

14 replacement housing plans’’;

15 (B) by redesignating subparagraphs (E)

16 through (I) as subparagraphs (F) through (J),

17 respectively; and

18 (C) by inserting after subparagraph (D)

19 the following new subparagraph:

20 ‘‘(E) planning for community service ac21 tivities to be carried out by residents, other

22 members of the community, and other persons

23 willing to contribute to the social, economic, or

24 physical improvement of the community;’’;

25 (3) in paragraph (4)—
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1 (A) by redesignating subparagraphs (D)

2 and (E) as subparagraphs (E) and (F), respec3 tively; and

4 (B) by inserting after subparagraph (C)

5 the following new subparagraph:

6 ‘‘(D) to the extent the applicant is request7 ing amounts for community service activities, a

8 description of the planning activities for com9 munity service to be carried out by residents,

10 other members of the community, and other

11 persons willing to contribute to the social, eco12 nomic, or physical improvement of the commu13 nity;’’; and

14 (5) in paragraph (5)—

15 (A) in subparagraph (F), by inserting be16 fore the semicolon at the end the following: ‘‘,

17 taking into consideration the condition of the

18 public housing of the public housing agency as

19 a whole’’;

20 (B) by striking subparagraph (E);

21 (C) by redesignating subparagraphs (F)

22 and (G) as subparagraphs (E) and (F), respec23 tively; and

24 (D) by adding at the end the following new

25 flush material:
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1 ‘‘In making grants under this subsection, the Sec2 retary may select a lower-rated application that

3 meets the requirements pursuant to this section in4 stead of a higher-rated application to increase the

5 national geographic diversity among applications ap6 proved under this section.’’.

7 (b) IMPLEMENTATION GRANTS.—Subsection (d) of

8 section 24 of the United States Housing Act of 1937 is

9 amended—

10 (1) in paragraph (2)—

11 (A) in subparagraph (I), by striking ‘‘ex12 cept that’’ and all that follows and inserting the

13 following: ‘‘except that—

14 ‘‘(i) not more than 20 percent of any

15 grant under this subsection may be used

16 for such purpose; and

17 ‘‘(ii) an amount equal to 15 percent of

18 the amount of any grant under this sub19 section used for such purposes shall be

20 contributed from non-Federal sources, and

21 may be in the form of cash, administrative

22 costs, and the reasonable value of in-kind

23 contributions, and may include funding

24 under title I of the Housing and Commu25 nity Development Act of 1974.’’;
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1 (B) by redesignating subparagraphs (E)

2 through (I) (as so amended) as subparagraphs

3 (G) through (K), respectively; and

4 (C) by inserting after subparagraph (D)

5 the following new subparagraphs:

6 ‘‘(E) community service activities to be

7 carried out by residents, other members of the

8 community, and other persons willing to con9 tribute to the social, economic, or physical im10 provement of the community;

11 ‘‘(F) replacement of public housing units;’’;

12 (2) in paragraph (3)—

13 (A) by redesignating subparagraphs (D)

14 and (E) as subparagraphs (E) and (F), respec15 tively; and

16 (B) by inserting after subparagraph (C)

17 the following new subparagraph:

18 ‘‘(D) to the extent the applicant is request19 ing amounts for community service activities, a

20 description of the community service activities

21 to be carried out by residents, other members

22 of the community, and other persons willing to

23 contribute to the social, economic, or physical

24 improvement of the community;’’; and

25 (3) in paragraph (4)—
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1 (A) by striking subparagraph (D) and in2 serting the following new subparagraph:

3 ‘‘(D) the quality of the proposed revitaliza4 tion program and the suitability of the project

5 for such a program;’’;

6 (B) in subparagraph (F), by inserting be7 fore the semicolon at the end the following: ‘‘,

8 taking into consideration the condition of the

9 public housing of the applicant as a whole’’;

10 and

11 (C) by striking subparagraph (E);

12 (D) by redesignating subparagraphs (F)

13 and (G) as subparagraphs (E) and (F), respec14 tively; and

15 (E) by adding at the end the following new

16 flush material:

17 ‘‘In making grants under this subsection, the Sec18 retary may select a lower-rated application that

19 meets the requirements pursuant to this section in20 stead of a higher-rated application to increase the

21 national geographic diversity among applications ap22 proved under this section.’’.

23 (c) EXCEPTIONS TO GENERAL PROGRAM REQUIRE24 MENTS.—Section 24(e) of the United States Housing Act

25 of 1937 is amended—
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1 (1) by striking the first sentence of paragraph

2 (2) and inserting the following new sentence: ‘‘For

3 projects revitalized under this section, a public hous4 ing agency may—

5 ‘‘(A) in lieu of selecting tenants pursuant

6 to the preferences specified under section

7 6(c)(4)(A)(i), select tenants pursuant to a local

8 system of preferences;

9 ‘‘(B) in making dwelling units in such

10 projects available for occupancy, disregard the

11 order in which applications were made for resi12 dency in public housing dwelling units or any

13 waiting lists established for such residency to

14 provide for substantial variation in the incomes

15 of families residing in the project, subject to the

16 provisions of this Act relating to income eligi17 bility in public housing projects (as modified

18 under subparagraph (C));

19 ‘‘(C) notwithstanding section 16 of this

20 Act, provide for low-income families to occupy

21 not more than 50 percent of the dwelling units

22 in a project, and

23 ‘‘(D) establish ceiling rents under section

24 3(a)(2).’’; and
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1 (2) by adding at the end the following new

2 paragraph:

3 ‘‘(3) DEMOLITION AND REPLACEMENT.—

4 ‘‘(A) IN GENERAL.—Notwithstanding any

5 other applicable law or regulation, a revitaliza6 tion plan under this section may include demoli7 tion of public housing units and replacement of

8 such units on site or in the same neighborhood

9 if the number of replacement units provided in

10 the same neighborhood is fewer than the num11 ber of units demolished as a result of the revi12 talization effort.

13 ‘‘(B) TENANT-BASED ASSISTANCE.—Not14 withstanding the limitation in subparagraph (C)

15 of section 18(b)(3), a public housing agency

16 may replace not more than one-third of the

17 units demolished or disposed of through a revi18 talization project under this section with ten19 ant-based assistance under section 8, but only

20 if the public housing agency demonstrates to

21 the satisfaction of the Secretary that the local

22 housing market in which the assistance is to be

23 used has had a vacancy rate, among units

24 whose rent does not exceed the fair market

25 rental for the area established under section
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1 8(e), of more than 3 percent for at least 6 con2 secutive months.

3 ‘‘(C) ALTERNATIVE METHODS OF RE4 PLACEMENT.—A revitalization plan under this

5 section may provide for replacement of public

6 housing units in the manners under subpara7 graph (D) of this paragraph (and not subject to

8 the requirements of subparagraph (B) of sec9 tion 18(b)(3)) if the agency or corporation en10 ters into such agreements as the Secretary con11 siders necessary to ensure that the replacement

12 units will remain affordable to families eligible

13 for residency in public housing for the remain14 ing useful life of the units, as determined by the

15 Secretary.

16 ‘‘(D) CERTIFICATE AND NEW UNIT MIX.—

17 Each such dwelling unit demolished, disposed

18 of, or otherwise eliminated pursuant to this

19 paragraph shall be replaced with an additional

20 dwelling unit through any combination of—

21 ‘‘(i) additional public housing dwelling

22 units;

23 ‘‘(ii) units or housing described in

24 clause (iv), (v), (vii), (viii), or (ix) of sec25 tion 18(b)(3)(A);
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1 ‘‘(iii) rental units that are (I) assisted

2 under title II of the Cranston-Gonzalez

3 National Affordable Housing Act (notwith4 standing section 212(d)(2) of such Act), or

5 (II) assisted under a State or local rental

6 assistance program that provides for rental

7 assistance over a term of not less than 5

8 years that is comparable in terms of eligi9 bility and contribution to rent to assistance

10 under section 8; but this clause shall apply

11 to a revitalization program only if the

12 agency demonstrates to the satisfaction of

13 the Secretary that the local housing mar14 ket in which the assistance is to be used

15 has had a vacancy rate, among units whose

16 rent does not exceed the fair market rental

17 for the area established under section 8(e),

18 of more than 3 percent for at least 6 con19 secutive months; or

20 ‘‘(iv) other manners approved by the

21 Secretary.’’.

22 (d) DEFINITIONS.—Subsection (h) of section 24 of

23 the United States Housing Act of 1937 is amended—

24 (1) by striking paragraph (5) and inserting the

25 following new paragraphs:
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1 ‘‘(6) SEVERELY DISTRESSED PUBLIC HOUS2 ING.—The term ‘severely distressed public housing’

3 means a public housing project or building in a

4 project that—

5 ‘‘(A) requires major redesign, reconstruc6 tion, or redevelopment, or partial or total demo7 lition, to correct serious deficiencies in the

8 original design (including inappropriately high

9 population density), deferred maintenance,

10 physical deterioration or obsolescence of major

11 systems, and other deficiencies in the physical

12 plant of the project;

13 ‘‘(B) is—

14 ‘‘(i)(I) occupied predominantly by

15 families with children which have extremely

16 low incomes, high rates of unemployment,

17 and extensive dependency on various forms

18 of public assistance; and

19 ‘‘(II) has high rates of vandalism and

20 criminal activity (including drug-related

21 criminal activity) in comparison to other

22 housing in the area; or

23 ‘‘(ii) has a vacancy rate, as deter24 mined by the Secretary, of 50 percent or

25 more;
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1 ‘‘(C) can not be revitalized through assist2 ance under other programs, such as the pro3 grams under sections 9 and 14, or through

4 other administrative means because of the inad5 equacy of available amounts; and

6 ‘‘(D) in the case of an individual building,

7 the building is (in the determination of the Sec8 retary) sufficiently separable from the remain9 der of the project of which the building is part

10 to make use of the building feasible for pur11 poses of this section.

12 ‘‘(7) SUPPORT SERVICES.—The term ‘support

13 services’ includes all activities which will promote

14 upward mobility, self-sufficiency, and improved qual15 ity of life for the residents of the public housing

16 project involved, and shall include literacy training,

17 job training, day care, and economic development ac18 tivities. Support services may be provided to resi19 dents of the neighborhood in which the public hous20 ing project involved is located.’’;

21 (2) by redesignating paragraphs (2) through

22 (4) as paragraphs (3) through (5), respectively; and

23 (3) by inserting after paragraph (1) the follow24 ing new paragraph:
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1 ‘‘(2) COMMUNITY SERVICE.—The term ‘commu2 nity service’ means services provided on a volunteer

3 or limited stipend basis for the social, economic, or

4 physical improvement of the community to be

5 served, including opportunity for the upward mobil6 ity of participants providing the community service,

7 through completion of education requirements, job

8 training, or alternative methods of developing skills

9 and job readiness.’’.

10 (e) REPORTS.—Section 24(i) of the United States

11 Housing Act of 1937 is amended—

12 (1) by striking paragraph (2); and

13 (2) by redesignating paragraphs (3) and (4) as

14 paragraphs (2) and (3), respectively.

15 (f) REPEAL.—Section 24 of the United States Hous16 ing Act of 1937 (42 U.S.C. 1437v) is amended by striking

17 subsection (b).

18 (g) APPLICABILITY.—Section 24 of the United States

19 Housing Act of 1937 is amended by adding at the end

20 the following new subsection:

21 ‘‘(j) APPLICABILITY.—Notwithstanding any provision

22 of this Act, with respect to a public housing project that

23 (1) has been selected for funding under this section 24

24 or through the urban revitalization demonstration pro25 gram under the Departments of Veterans Affairs and
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1 Housing and Urban Development, and Independent Agen2 cies Appropriations Act, 1993 (Public Law 102–389, 106

3 Stat. 1579; 42 U.S.C. 1437l note) or the Departments of

4 Veterans Affairs and Housing and Urban Development,

5 and Independent Agencies Appropriations Act, 1994

6 (Public Law 103–124, 107 Stat. 1285; 42 U.S.C. 1437l

7 note), and (2) has an approved comprehensive plan under

8 section 14 of this Act, the Secretary may apply any provi9 sion of this section and the regulations hereunder to all

10 activities undertaken at such projects only during revital11 ization (including activities relating to demolition, mod12 ernization, reconstruction, site improvement, and replace13 ment housing).’’.

14 (h) CONFORMING AMENDMENT.—The first sentence

15 of section 25(m)(1) of the United States Housing Act of

16 1937 (42 U.S.C. 1437w(m)(1)) is amended to read as fol17 lows: ‘‘The term ‘eligible housing’ means a public housing

18 project, or one or more buildings within a project, that

19 is owned or operated by a troubled public housing agency

20 that has been troubled for not less than 3 years and that,

21 as determined by the Secretary, has failed to make sub22 stantial progress toward effective management.’’.

23 (i) APPLICABILITY TO CERTAIN PROJECT.—The

24 amendments made by this section shall apply with respect

25 to assistance provided before the date of the enactment
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1 of this Act under section 24 of the United States Housing

2 Act of 1937 for the Desire Housing Development, located

3 in New Orleans, Louisiana, but only to the extent that

4 the Housing Authority of New Orleans submits to the Sec5 retary of Housing and Urban Development a description

6 of the revitalization program for such project describing

7 the use of such assistance under the provisions of such

8 section 24, as amended, which is approved by the Sec9 retary.

10 SEC. 129. PROGRAM MONITORING AND TECHNICAL ASSIST11 ANCE.

12 (a) DEFINITION.—Section 3 of the United States

13 Housing Act of 1937 (42 U.S.C. 1437a), as amended by

14 adding at the end the following new subsection:

15 ‘‘(e) TECHNICAL ASSISTANCE AND SERVICES.—As

16 used in sections 5(c)(9) and 14(k)(1)(B), the term ‘tech17 nical assistance and services’ shall include any or all un18 dertakings by the Secretary, directly using officials and

19 employees of the Secretary, or indirectly under contract

20 or otherwise, related to the inspection or oversight of

21 project or program development or implementation, train22 ing and technical assistance, public housing agency or In23 dian housing authority program, project, or general man24 agement, crisis management and operations, survey re-
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1 search, and the preparation of reports or recommenda2 tions to the Secretary.’’.

3 (b) AVAILABILITY OF DEVELOPMENT AMOUNTS.—

4 Section 5(c) of the United States Housing Act of 1937

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

6 the following new paragraph:

7 ‘‘(9) Of any amounts appropriated pursuant to this

8 Act in fiscal year 1995 for public housing development (in9 cluding Indian housing development), the Secretary may

10 use not more than 0.5 percent for technical assistance and

11 services.’’.

12 (c) AVAILABILITY OF MODERNIZATION AMOUNTS.—

13 Section 14(k)(1) of the United States Housing Act of

14 1937 (42 U.S.C. 1437l(k)(1)), as amended by the preced15 ing provisions of this Act, is amended—

16 (1) by inserting ‘‘(A)’’ before the first sentence;

17 and

18 (2) by adding at the end the following new sub19 paragraph:

20 ‘‘(B) Of any amounts approved in appropriation Acts

21 for grants under this section in fiscal year 1995, the Sec22 retary may use not more than 1 percent for technical as23 sistance and services.’’.
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1 SEC. 130. APPLICABILITY OF PUBLIC HOUSING AMEND2 MENTS TO INDIAN HOUSING.

3 (a) AMENDMENT.—Section 201(b) of the United

4 States Housing Act of 1937 (42 U.S.C. 1437aa(b)) is

5 amended to read as follows:

6 ‘‘(b) APPLICABILITY OF TITLE I.—Except as other7 wise provided by law, the provisions of title I shall apply

8 to low-income housing developed or operated pursuant to

9 a contract between the Secretary and an Indian housing

10 authority.’’.

11 (b) APPLICABILITY OF AMENDMENT.—The amend12 ment made by subsection (a) shall not affect provisions

13 of the United States Housing Act of 1937 that were made

14 applicable to public housing developed or operated pursu15 ant to a contract between the Secretary and an Indian

16 housing authority in accordance with section 201(b)(2) of

17 such Act, as such section existed before the effective date

18 of this section.

19 (c) APPLICABILITY OF HOUSING AND COMMUNITY

20 DEVELOPMENT ACT OF 1992.—The provisions of, and the

21 amendments made by, sections 103(a)(1), 112, 114, 116,

22 118, 903, and 927 of the Housing and Community Devel23 opment Act of 1992 and sections 301, 302, 303, and 304

24 of the Multifamily Housing Property Disposition Reform

25 Act of 1994 shall apply to public housing developed or op-
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1 erated pursuant to a contract between the Secretary and

2 an Indian housing authority.

3 SEC. 131. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

4 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

5 222(g) of the Housing and Urban-Rural Recovery Act of

6 1983 (12 U.S.C. 1701z–6 note) is amended by striking

7 the first two sentences and inserting the following new

8 sentence: ‘‘There are authorized to be appropriated to

9 carry out this section $35,000,000 for fiscal year 1995

10 and $35,000,000 for fiscal year 1996.’’.

11 (b) ELIGIBILITY FOR ASSISTANCE.—Section

12 222(b)(1) of the Housing and Urban-Rural Recovery Act

13 of 1983 is amended by inserting before the semicolon at

14 the end the following: ‘‘, except that the Secretary may

15 make a grant to provide additional assistance for an exist16 ing child care center assisted under this section or to ex17 pand an existing child care center regardless of whether

18 such center was previously assisted under this section’’.

19 (c) ASSISTANCE FOR HOMELESS FAMILIES.—Section

20 222(a)(1) of the Housing and Urban-Rural Recovery Act

21 of 1983 amended by inserting before the period at the end

22 the following: ‘‘(including, for purposes of this section,

23 homeless families with children, as defined by the Sec24 retary)’’.
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1 (d) CLERICAL AMENDMENT.—The heading for sec2 tion 222 of the Housing and Urban-Rural Recovery Act

3 of 1983 is amended to read as follows: ‘‘EARLY CHILD4 HOOD DEVELOPMENT PROGRAMS’’.

5 SEC. 132. INDIAN HOUSING CHILDHOOD DEVELOPMENT

6 SERVICES.

7 FUNDING.—Section 518(a) of the Cranston-Gonzalez

8 National Affordable Housing Act (12 U.S.C. 1701z–6

9 note) is amended by striking the first and second sen10 tences and inserting the following new sentence: ‘‘There

11 are authorized to be appropriated to carry out the dem12 onstration program under this section $6,000,000 for fis13 cal year 1995 and $6,000,000 for fiscal year 1996.’’.

14 SEC. 133. PUBLIC HOUSING ONE-STOP PERINATAL SERV15 ICES DEMONSTRATION.

16 Section 521(g) of the Cranston-Gonzalez National

17 Affordable Housing Act (42 U.S.C. 1437t note) is amend18 ed to read as follows:

19 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

20 are authorized to be appropriated for carrying out the

21 demonstration program under this section such sums as

22 may be necessary for each of fiscal years 1995 and

23 1996.’’.
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1 SEC. 134. SALE OF CERTAIN SCATTERED-SITE PUBLIC

2 HOUSING.

3 Section 131 of the Housing and Community Develop4 ment Act of 1992 (Public Law 102–550; 106 Stat. 3712)

5 is amended by adding at the end the following new sen6 tence: ‘‘During the term of the annual contributions con7 tract relating to the scattered-site public housing origi8 nally sold under this section, any proceeds from the dis9 position of replacement scattered-site dwellings purchased

10 with (1) the proceeds from such original disposition, or

11 (2) the proceeds from the disposition of any replacement

12 scattered-site dwellings, shall be used to purchase addi13 tional replacement scattered-site dwellings, which shall be

14 considered public housing for the purposes of such Act and

15 for which the Secretary shall provide annual contributions

16 for operation, using amounts made available under section

17 9(c) of such Act.’’.

18 SEC. 135. ELIGIBILITY OF CERTAIN PUBLIC HOUSING FOR

19 DEMOLITION.

20 Section 415 of the Department of Housing and

21 Urban Development—Independent Agencies Appropria22 tions Act, 1988 (Public Law 100–202; 101 Stat. 1329–

23 213), is amended by striking ‘‘George Loving Place, at

24 3320 Rupert Street, Edgar Ward Place, at 3901

25 Holystone, Elmer Scott Place, at 2600 Morris, in Dallas,

26 Texas, or’’.
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1 SEC. 136. DEMONSTRATION PROGRAM FOR INNOVATIVE

2 PUBLIC HOUSING AGENCIES AND RESIDENT

3 MANAGEMENT CORPORATIONS.

4 (a) AUTHORITY.—The Secretary may authorize pub5 lic housing agencies and resident management corpora6 tions to carry out demonstrations for public housing

7 that—

8 (1) test the extent to which aspects of the public

9 housing program may be exempt from certain statu10 tory requirements while continuing to serve eligible

11 families, and

12 (2) permit agencies and resident management

13 corporations to establish policies for the operation,

14 maintenance, management, and development (includ15 ing modernization) of one or more projects, without

16 regard to the requirements applicable to public hous17 ing in the United States Housing Act of 1937.

18 In establishing such policies, public housing agencies and

19 resident management corporations shall be subject to any

20 applicable State or local law.

21 (b) WAIVER OF PROVISIONS OF 1937 ACT.—For any

22 demonstration authorized under this section, the Secretary

23 may waive the applicability of any requirements of the

24 United States Housing Act of 1937 that the Secretary de25 termines are not consistent with the purposes of a dem26 onstration, except requirements—
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1 (1) limiting occupancy of public housing to low2 income families, as defined in section 3 of the Unit3 ed States Housing Act of 1937;

4 (2) under section 18 of such Act requiring re5 placement of units in the case of demolition or dis6 position (except that the limitation on the use of

7 tenant-based assistance to applications proposing

8 demolition or disposition of 200 or more units may

9 be waived); and

10 (3) relating to labor standards.

11 (c) REPLACEMENT HOUSING.—

12 (1) AUTHORITY.—In authorizing a demonstra13 tion under this section, the Secretary may authorize

14 a public housing agency to demolish or dispose of

15 public housing units and replace such units on site

16 or in the same neighborhood if the number of re17 placement units provided in the same neighborhood

18 is fewer than the number of units demolished under

19 the demonstration.

20 (2) TENANT-BASED ASSISTANCE.—Notwith21 standing the limitations in subparagraphs (A)(v)

22 and (C) of section 18(b)(3), a public housing agency

23 may replace not more than one-third of the units de24 molished or disposed of under a demonstration

25 under this section with tenant-based assistance
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1 under section 8, but only if the public housing agen2 cy demonstrates to the satisfaction of the Secretary

3 that the local housing market in which the assist4 ance is to be used has had a vacancy rate, among

5 units whose rent does not exceed the fair market

6 rental for the area established under section 8(e), of

7 more than 3 percent for at least 6 consecutive

8 months.

9 (3) ALTERNATIVE METHODS OF REPLACE10 MENT.—In authorizing a demonstration under this

11 section, the Secretary may authorize a public hous12 ing agency to provide for replacement of public

13 housing units in the manners under paragraph (4)

14 of this subsection rather than in the manners speci15 fied under the various clauses of section 18(b)(3)(A)

16 (and not subject to the requirements of subpara17 graph (B) of section 18(b)(3)) if the agency enters

18 into such agreements as the Secretary considers nec19 essary to ensure that the replacement units will re20 main affordable to families eligible for residency in

21 public housing for the remaining useful life of the

22 units, as determined by the Secretary.

23 (4) CERTIFICATE AND NEW UNIT MIX.—Each

24 such dwelling unit demolished, disposed of, or other25 wise eliminated pursuant to this subsection shall be
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1 replaced with an additional dwelling unit through

2 any combination of—

3 (A) additional public housing dwelling

4 units;

5 (B) units acquired or otherwise provided

6 for homeownership (including cooperative and

7 condominium interests) by public housing resi8 dents under section 5(h), subtitle B or C of title

9 IV of the Cranston-Gonzalez National Afford10 able Housing Act, or other programs for home11 ownership that have program requirements sub12 stantially equivalent to the requirements estab13 lished under section 605 of the Housing and

14 Community Development Act of 1987;

15 (C) affordable housing homeownership

16 units assisted under title II of the Cranston17 Gonzalez National Affordable Housing Act and

18 sold to public housing residents;

19 (D) rental units that are (i) assisted under

20 title II of the Cranston-Gonzalez National Af21 fordable Housing Act (notwithstanding section

22 212(d)(2) of such Act), or (ii) assisted under a

23 State or local rental assistance program that

24 provides for rental assistance over a term of not

25 less than 5 years that is comparable in terms
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1 of eligibility and contribution to rent to assist2 ance under section 8; but this subparagraph

3 shall apply to a public housing agency only if

4 the agency demonstrates to the satisfaction of

5 the Secretary that the local housing market in

6 which the assistance is to be used has had a va7 cancy rate, among units whose rent does not ex8 ceed the fair market rental for area established

9 under section 8(e), of more than 3 percent for

10 at least 6 consecutive months;

11 (E) housing assisted by a tax credit under

12 section 42 of the Internal Revenue Code;

13 (F) housing acquired from the Resolution

14 Trust Corporation or the Federal Deposit In15 surance Corporation;

16 (G) housing acquired under section 203 of

17 the Housing and Community Development

18 Amendments of 1978; or

19 (H) other manners approved by the Sec20 retary.

21 (d) WAIVER OF OTHER STATUTORY REQUIRE22 MENTS.—For any demonstration authorized under this

23 section, the Secretary may also waive the applicability of

24 any provision of law that applies to the projects under the

25 demonstration and that the Secretary determines is not
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1 consistent with the purposes of a demonstration, except

2 that the Secretary may not waive any provision of the Uni3 form Relocation Assistance and Real Property Acquisition

4 Policies Act of 1970, any provision of the Internal Reve5 nue Code of 1986, or any other provision of law relating

6 to equal opportunity, nondiscrimination, or the environ7 ment.

8 (e) SELECTION OF DEMONSTRATIONS.—

9 (1) SCOPE.—The Secretary may select not

10 more than 25 public housing agencies or resident

11 management corporations (or a combination of both)

12 to carry out not more than 25 demonstrations under

13 this section. Not more than 5 of the agencies se14 lected may be agencies designated pursuant to sec15 tion 6(j) of the United States Housing Act of 1937

16 as troubled or troubled with respect to the public

17 housing modernization program under section 14 of

18 such Act.

19 (2) CRITERIA.—The Secretary shall select agen20 cies and corporations based on selection criteria es21 tablished by the Secretary, which shall include the

22 following factors:

23 (A) The need for a range of project sizes.
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1 (B) The need for a range of types of public

2 housing agencies and resident management cor3 porations.

4 (C) The potential effects and benefits that

5 the variations proposed by the agency or cor6 poration could have on the public housing pro7 gram if the variations were adopted for the

8 whole program.

9 (f) REQUIREMENTS.—The Secretary may authorize a

10 demonstration program under this section only if the Sec11 retary determines that the demonstration—

12 (1) would not, over the term of the demonstra13 tion, result in the Federal Government incurring

14 greater costs than the government would otherwise

15 incur if the demonstration were not authorized;

16 (2) is consistent with the overall purposes of

17 the public housing program;

18 (3) is evaluated by an independent party; and

19 (4) is consistent with the Fair Housing Act,

20 title VI of the Civil Rights Act of 1964, section 504

21 of the Rehabilitation Act of 1973, the Age Discrimi22 nation Act of 1975, and the National Environmental

23 Policy Act of 1969.

24 (g) AUTHORITY TO ESTABLISH ADDITIONAL RE25 QUIREMENTS.—In authorizing a demonstration under this
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1 section, the Secretary may impose such requirements as

2 the Secretary considers to be appropriate to further the

3 purposes of the demonstration.

4 (h) REPORTS.—

5 (1) REPORT ON DEMONSTRATION.—For each

6 demonstration site, the public housing agency or

7 resident management corporation carrying out the

8 demonstration shall submit an annual progress re9 port to the Secretary. For each demonstration car10 ried out under this section, the Secretary shall sub11 mit a report to Congress not later than 1 year after

12 completion of the demonstration, describing the re13 sults of the demonstration and making any rec14 ommendations for legislation.

15 (2) REPORT ON WAIVER FOR NEW YORK

16 CITY.—The Secretary shall conduct a study of the

17 advisability, practicality, and effects of exempting

18 the New York City Housing Authority from any pro19 visions of law or regulation establishing require20 ments for the site on which, and neighborhood in

21 which, public housing is developed. The Secretary

22 shall submit a report to the Congress not later than

23 6 months after the date of the enactment of this Act

24 describing the results of the study and making a rec25 ommendation with respect to such exemption.
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1 (i) TERM OF DEMONSTRATIONS.—The authority to

2 carry out a demonstration program under this section

3 shall be effective only for the period specified by the Sec4 retary in authorizing the demonstration program, which

5 may not exceed 5 years.

6 (j) DEFINITIONS.—For purposes of this section, the

7 following definitions shall apply:

8 (1) The terms ‘‘public housing agency’’ and

9 ‘‘agency’’ mean a public housing agency, as such

10 term is defined in section 3(b) of the United States

11 Housing Act of 1937.

12 (2) The terms ‘‘resident management corpora13 tion’’ and ‘‘corporation’’ mean a resident manage14 ment corporation established in accordance with re15 quirements of the Secretary under section 20 of the

16 United States Housing Act of 1937.

17 (3) The term ‘‘Secretary’’ means the Secretary

18 of Housing and Urban Development.

19 (k) AUTHORIZATION OF APPROPRIATIONS.—There is

20 authorized to be appropriated $1,000,000 for the evalua21 tion of demonstrations under this section.
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1 SEC. 137. DEMONSTRATION PROGRAM FOR OCCUPANCY OF

2 OTHERWISE VACANT PUBLIC HOUSING UNITS

3 BY MODERATE-INCOME FAMILIES.

4 (a) AUTHORITY.—The Secretary of Housing and

5 Urban Development may carry out a demonstration pro6 gram under which public housing agencies may lease units

7 in public housing projects assisted under the United

8 States Housing Act of 1937 to moderate-income families,

9 as such term is defined by the Secretary.

10 (b) REQUIREMENTS FOR PARTICIPATION.—The Sec11 retary may approve a request by a public housing agency

12 to participate in the demonstration program only if the

13 Secretary determines that—

14 (1) the units proposed for leasing to moderate15 income families would otherwise remain vacant;

16 (2) the agency has demonstrated that it has ac17 tively marketed the units to eligible families and that

18 eligible families are not available to fill the units cov19 ered by the application and are not expected to be

20 available for at least 12 months; and

21 (3) the agency has agreed not to provide ten22 ant-based assistance under the United States Hous23 ing Act of 1937 for unit sizes available for occu24 pancy under the demonstration.

25 (c) DURATION.—The Secretary may authorize a pub26 lic housing agency to participate in the demonstration for
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1 up to a 2-year term and may extend the term for addi2 tional periods of up to 2 years, if the agency submits an3 other application that meets the requirements of this

4 section.

5 SEC. 138. STUDY OF ADEQUACY OF PAYMENT IN LIEU OF

6 TAXES.

7 The Comptroller General of the United States shall

8 conduct a study of the payments made during recent years

9 by public housing agencies to State and local governments

10 in lieu of taxes, pursuant to section 6(d) of the United

11 States Housing Act of 1937, to determine whether such

12 payments adequately compensate for the amount of taxes

13 foregone by such governments pursuant to such section.

14 The Comptroller General shall submit a report to the Con15 gress describing the results of the study not later than

16 the expiration of the 1-year period beginning on the date

17 of the enactment of this Act.

18 Subtitle C—Section 8 Assistance

19 SEC. 141. COMMUNITY INVESTMENT DEMONSTRATION PRO20 GRAM.

21 Section 6(j) of the HUD Demonstration Act of 1993

22 (42 U.S.C. 1437f note) is amended to read as follows:

23 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—Of any

24 amounts appropriated for incremental assistance under

25 section 8 of the United States Housing Act of 1937, the
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1 Secretary may use not more than $150,000,000 in fiscal

2 year 1995 and $200,000,000 in fiscal year 1996 to carry

3 out this section.’’.

4 SEC. 142. MERGER OF SECTION 8 RENTAL ASSISTANCE

5 PROGRAMS.

6 (a) IN GENERAL.—Section 8 of the United States

7 Housing Act of 1937 (42 U.S.C. 1437f) is amended to

8 read as follows:

9 ‘‘RENTAL HOUSING ASSISTANCE FOR LOW-INCOME

10 FAMILIES

11 ‘‘SEC. 8. (a) AUTHORITY AND PURPOSE.—

12 ‘‘(1) IN GENERAL.—For the purposes of aiding

13 low-income families in obtaining a decent place to

14 live and promoting economically mixed housing, the

15 Secretary may provide assistance payments with re16 spect to existing housing in accordance with the pro17 visions of this section.

18 ‘‘(2) ELDERLY HOUSING.—Notwithstanding any

19 other provision of this Act, assistance payments

20 under this section may be provided, in accordance

21 with regulations prescribed by the Secretary, with

22 respect to some or all of the units in any project ap23 proved pursuant to section 202 of the Housing Act

24 of 1959 (as in effect before October 1, 1991).

25 ‘‘(b) ANNUAL CONTRIBUTIONS CONTRACTS FOR

26 RENTAL ASSISTANCE.—
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1 ‘‘(1) IN GENERAL.—The Secretary may enter

2 into annual contributions contracts under this sub3 section with public housing agencies to provide rent4 al housing assistance under this section for low-in5 come families. Such annual contributions contracts

6 shall bind the Secretary to make such authority, and

7 any amendments increasing such authority, available

8 to the public housing agency for a specified period.

9 ‘‘(2) SECRETARY ACTING AS PHA.—In areas

10 where no public housing agency has been organized

11 or where the Secretary determines that a public

12 housing agency is unable to implement the provi13 sions of this section, the Secretary may enter into

14 such contracts and perform the other functions as15 signed to a public housing agency by this section.

16 ‘‘(3) TREATMENT OF ASSISTANCE FOR SUP17 PORTIVE HOUSING FOR THE DISABLED.—The Sec18 retary may not consider the receipt by a public hous19 ing agency of assistance under section 811(b)(1) of

20 the Cranston-Gonzalez National Affordable Housing

21 Act, or the amount received, in approving assistance

22 under this section for the agency or in determining

23 the amount of such assistance to be provided to the

24 agency.

25 ‘‘(c) ASSISTANCE CONTRACTS.—
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1 ‘‘(1) IN GENERAL.—Each public housing agen2 cy that receives amounts under an annual contribu3 tions contract may enter into assistance contracts to

4 make rental assistance payments to owners of exist5 ing dwelling units in accordance with the provisions

6 of this section.

7 ‘‘(2) PHA ACTING AS OWNER.—A public hous8 ing agency may contract to make rental assistance

9 payments under this section to itself (or any agency

10 or instrumentality thereof) as the owner of dwelling

11 units, and the agency shall be subject to the same

12 program requirements as are applied to other own13 ers. In such cases, the Secretary may establish ini14 tial rents within applicable limits.

15 ‘‘(3) INAPPLICABLE PROVISIONS.—Sections 5(e)

16 and 6 and any other provisions of this Act that are

17 inconsistent with the provisions of this section shall

18 not apply to assistance contracts entered into pursu19 ant to this section.

20 ‘‘(d) MAXIMUM MONTHLY RENT.—

21 ‘‘(1) IN GENERAL.—Each assistance contract

22 entered into pursuant to this section shall establish

23 the maximum monthly rent (including utilities and

24 all maintenance and management charges) that the

25 owner is entitled to receive for each dwelling unit for
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1 which rental assistance payments are to be made

2 under the contract. Except as provided in paragraph

3 (2), the maximum monthly rent shall not exceed by

4 more than 10 percent the fair market rental under

5 subsection (e) for the market area in which the

6 dwelling unit is located. If units assisted under this

7 section are exempt from local rent control while they

8 are so assisted or otherwise, the maximum monthly

9 rent for such units shall be reasonable in comparison

10 with other units in the market area that are exempt

11 from local rent control.

12 ‘‘(2) EXCEPTION.—The maximum monthly rent

13 may exceed the fair market rental—

14 ‘‘(A) by more than 10 but not more than

15 20 percent, but only if the Secretary determines

16 that special circumstances warrant such higher

17 maximum rent or that such higher rent is nec18 essary to the implementation of a comprehen19 sive housing affordability strategy under section

20 105 of the Cranston-Gonzalez National Afford21 able Housing Act; or

22 ‘‘(B) by such higher amount, only if re23 quested by the low-income family assisted and

24 approved by the public housing agency in ac25 cordance with subsection (f)(2).
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1 ‘‘(3) ANNUAL ADJUSTMENTS.—Each assistance

2 contract shall provide for adjustment in the maxi3 mum monthly rents for units covered by the contract

4 not less than annually to reflect changes in the fair

5 market rentals established under subsection (e) for

6 the housing area for similar types and sizes of dwell7 ing units or, if the Secretary determines, on the

8 basis of a reasonable formula.

9 ‘‘(4) ADJUSTMENTS DUE TO EXPENSES.—Each

10 assistance contract shall further provide for the Sec11 retary to make additional adjustments in the maxi12 mum monthly rent for units assisted under the con13 tract to the extent the Secretary determines such ad14 justments are necessary to reflect increases in the

15 actual and necessary expenses of owning and main16 taining the units that have resulted from substantial

17 general increases in real property taxes, utility rates,

18 or similar costs that are not adequately compensated

19 for by the adjustment in the maximum monthly rent

20 authorized by paragraph (3). The Secretary shall

21 make additional adjustments in the maximum

22 monthly rent for units under contract (subject to the

23 availability of appropriations for contract amend24 ments) to the extent the Secretary determines such

25 adjustments are necessary to reflect increases in the
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1 actual and necessary expenses of owning and main2 taining the units that have resulted from the expira3 tion of a real property tax exemption.

4 ‘‘(5) ADJUSTMENTS DUE TO CRIMINAL ACTIV5 ITY.—If the Secretary determines that a project as6 sisted under this section is located in a community

7 where criminal activity is generally prevalent and the

8 operating, maintenance, and capital repair expenses

9 for the project have been substantially increased pri10 marily as a result of the prevalence of such activity,

11 the Secretary may (at the discretion of the Secretary

12 and subject to the availability of appropriations for

13 contract amendments for this purpose), on a project14 by-project basis, provide adjustments to the maxi15 mum monthly rents, to a level not exceeding 120

16 percent of the project rents, to cover the costs of

17 maintenance, security, capital repairs, and reserves

18 required for the owner to carry out a strategy ac19 ceptable to the Secretary for addressing the problem

20 of criminal activity. The Secretary may waive the

21 applicability of any rent comparability standard re22 quired under this subsection to implement this para23 graph.

24 ‘‘(6) ADJUSTMENTS DUE TO LEAD-BASED

25 PAINT REDUCTION FOR HOUSING RECEIVING
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1 PROJECT-BASED ASSISTANCE.—The Secretary may

2 (at the discretion of the Secretary and subject to the

3 availability of appropriations for contract amend4 ments), on a project-by-project basis for projects re5 ceiving project-based assistance, provide adjustments

6 to the maximum monthly rents to cover the costs of

7 evaluating and reducing lead-based paint hazards, as

8 defined in section 1004 of the Residential Lead9 Based Paint Hazard Reduction Act of 1992.

10 ‘‘(7) LIMITATIONS ON ADJUSTMENTS.—

11 ‘‘(A) GENERAL COMPARABILITY RULE.—

12 Adjustments in the maximum rents under para13 graphs (3) through (6) shall not result in mate14 rial differences between the rents charged for

15 assisted units and unassisted units of similar

16 quality, type, and age in the same market area,

17 as determined by the Secretary.

18 ‘‘(B) COMPARABILITY STUDIES.—

19 ‘‘(i) To carry out subparagraph (A),

20 the Secretary shall issue regulations to

21 provide for conducting comparability stud22 ies for projects where the Secretary has

23 reason to believe that the application of the

24 formula adjustments under paragraph (3)

25 would result in such material differences.
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1 The Secretary shall conduct such studies

2 upon the request of any owner of any

3 project, or as the Secretary determines to

4 be appropriate by establishing, to the ex5 tent practicable, a modified annual adjust6 ment factor for such market area, as the

7 Secretary shall designate, that is geo8 graphically smaller than the applicable

9 housing area used for the establishment of

10 the annual adjustment factor under para11 graph (3). The Secretary shall establish

12 such modified annual adjustment factor on

13 the basis of the results of a study con14 ducted by the Secretary of the rents

15 charged, and any change in such rents

16 over the previous year, for assisted units

17 and unassisted units of similar quality,

18 type, and age in the smaller market area.

19 Where the Secretary determines that such

20 modified annual adjustment factor cannot

21 be established or that such factor when ap22 plied to a particular project would result in

23 material differences between the rents

24 charged for assisted units and unassisted

25 units of similar quality, type, and age in
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1 the same market area, the Secretary may

2 apply an alternative methodology for con3 ducting comparability studies in order to

4 establish rents that are not materially dif5 ferent from rents charged for comparable

6 unassisted units.

7 ‘‘(ii) If the Secretary or appropriate

8 State agency does not complete and submit

9 to the project owner a comparability study

10 not later than 60 days before the anniver11 sary date of the assistance contract under

12 this section, the automatic annual adjust13 ment factor shall be applied. The Secretary

14 may not reduce the contract rents in effect

15 on or after April 15, 1987, for newly con16 structed, substantially rehabilitated, or

17 moderately rehabilitated projects assisted

18 under this section (including projects as19 sisted under this section as in effect prior

20 to November 30, 1983), unless the project

21 has been refinanced in a manner that re22 duces the periodic payments of the owner.

23 Any maximum monthly rent that has been

24 reduced by the Secretary after April 14,

25 1987, and prior to November 7, 1988,
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1 shall be restored to the maximum monthly

2 rent in effect on April 15, 1987.

3 ‘‘(iii) For any project which has had

4 its maximum monthly rents reduced after

5 April 14, 1987, the Secretary shall make

6 assistance payments (from amounts re7 served for the original contract) to the

8 owner of such project in an amount equal

9 to the difference between the maximum

10 monthly rents in effect on April 15, 1987,

11 and the reduced maximum monthly rents,

12 multiplied by the number of months that

13 the reduced maximum monthly rents were

14 in effect.

15 ‘‘(e) FAIR MARKET RENTALS.—

16 ‘‘(1) IN GENERAL.—The Secretary shall estab17 lish fair market rentals under this subsection peri18 odically, but not less than annually, for existing

19 rental dwelling units suitable for occupancy by low20 income families assisted under this section. The Sec21 retary shall establish the fair market rental by hous22 ing market area for various sizes and types of dwell23 ing units. For a market area, the fair market rental

24 for any size and type of dwelling unit shall be a dol25 lar amount not less than the amount that results in
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1 the rents charged for 45 percent of the standard

2 quality rental units of such size and type in the mar3 ket area being less than such dollar amount. For

4 purposes of determining the dollar amount under the

5 preceding sentence, the Secretary shall consider only

6 rental units occupied by recent movers and shall not

7 consider public housing units, units for which mar8 ket rents cannot be determined, and newly con9 structed units.

10 ‘‘(2) EFFECTIVENESS AND ADJUSTMENT.—The

11 Secretary shall publish proposed fair market rentals

12 for each area in the Federal Register with reason13 able time for public comment, and such fair market

14 rentals shall become effective upon the date of publi15 cation in final form in the Federal Register. Each

16 fair market rental in effect under this subsection

17 shall be adjusted to be effective on October 1 of each

18 year to reflect changes, based on the most recent

19 available data trended so the rentals will be current

20 for the year to which they apply, of rents for exist21 ing rental dwelling units, as the case may be, of var22 ious sizes and types in the market area suitable for

23 occupancy by families assisted under this section.

24 ‘‘(3) CERTAIN AREAS.—The Secretary shall es25 tablish separate fair market rentals under this sub-
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1 section for Westchester County in the State of New

2 York. The Secretary shall also establish separate fair

3 market rentals under this paragraph for Monroe

4 County in the Commonwealth of Pennsylvania. In

5 establishing fair market rentals for the remaining

6 portion of the market areas in which Monroe County

7 is located, the Secretary shall establish the fair mar8 ket rentals as if such portion included Monroe

9 County.

10 ‘‘(4) REQUIRED REVIEW.—If at any time, for

11 any public housing agency, more than 50 percent of

12 the families on behalf of whom assistance is provided

13 under this section by the agency are paying as rent

14 more than the amount specified under section 3(a)

15 (as authorized in subsection (f)(2)), the agency shall

16 review the fair market rentals established under this

17 subsection for the market areas in the jurisdiction of

18 the public housing agency.

19 ‘‘(f) AMOUNT OF MONTHLY ASSISTANCE PAYMENT

20 AND DUE PROCESS RIGHTS.—

21 ‘‘(1) IN GENERAL.—Except as provided in para22 graph (2), the amount of the monthly assistance

23 payment under this section with respect to any

24 dwelling unit shall be the difference between the

25 maximum monthly rent that the contract provides
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1 that the owner is to receive for the unit and the rent

2 the family is required to pay under section 3(a).

3 ‘‘(2) INCREASED FAMILY PAYMENT.—A family

4 on behalf of whom tenant-based assistance payments

5 are made under this section may pay as rent for a

6 dwelling unit assisted under this section more than

7 the amount specified under section 3(a), but only

8 if—

9 ‘‘(A) the family notifies the public housing

10 agency of its interest in a unit renting for an

11 amount that exceeds the permissible maximum

12 monthly rent established for the market area

13 under subsection (d);

14 ‘‘(B) such agency determines that the rent

15 for the unit and the rental payments of the

16 family are reasonable, after taking into account

17 other family expenses (including child care, un18 reimbursed medical expenses, transportation,

19 and other appropriate family expenses;

20 ‘‘(C) such amount does not exceed 40 per21 cent of the family’s monthly adjusted income;

22 and

23 ‘‘(D) the public housing agency has first

24 exercised any authority under paragraphs (1)
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1 and (2)(A) of subsection (d) to increase the

2 maximum monthly rent for the dwelling unit.

3 The amount of the monthly assistance payment

4 under this section with respect to a dwelling unit for

5 a family paying rent as provided in this paragraph

6 shall be the difference between an amount based on

7 the fair market rent and the rent the family is re8 quired to pay under section 3(a).

9 ‘‘(3) INCREASES IN ASSISTANCE PAYMENTS.—

10 The Secretary shall take any action necessary, in11 cluding making contracts for assistance payments in

12 amounts exceeding the amounts required upon the

13 initial renting of dwelling units, reserving annual

14 contributions authority for the purpose of amending

15 assistance contracts, or allocating a portion of new

16 authorizations for the purpose of amending assist17 ance contracts, to ensure that assistance payments

18 are increased on a timely basis to cover increases in

19 maximum monthly rents or decreases in family in20 comes.

21 ‘‘(4) REVIEWS OF FAMILY INCOMES.—

22 ‘‘(A) IN GENERAL.—Reviews of family in23 comes for purposes of this section shall be made

24 annually and shall be subject to the provisions

25 of section 904(e) of the Stewart B. McKinney
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1 Homeless Assistance Amendments Act of 1988.

2 For families for whom an increased rental pay3 ment has been approved under paragraph (2),

4 such review shall include determining whether

5 the rent for the unit and the rental payments

6 of the family continue to be reasonable, in ac7 cordance with subparagraphs (B) and (C) of

8 paragraph (2).

9 ‘‘(B) PROCEDURES.—The Secretary shall

10 establish procedures that are appropriate and

11 necessary to ensure that income data provided

12 to public housing agencies and owners by fami13 lies applying for or receiving assistance under

14 this section is complete and accurate.

15 ‘‘(C) CONFIDENTIALITY.—Any income in16 formation received pursuant to this paragraph

17 shall remain confidential and shall be used only

18 for the purpose of verifying incomes in order to

19 determine eligibility of families for benefits (and

20 the amount of such benefits, if any) under this

21 section.

22 ‘‘(5) DUE PROCESS RIGHTS IN CASES OF AD23 VERSE ACTION.—In the case of any action proposed

24 to be taken by a public housing agency, any family

25 receiving assistance under this section adversely af-
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1 fected by such action shall have the right to at least

2 the basic elements of due process with regard to

3 such action, as follows:

4 ‘‘(A) Written notice of the intended ad5 verse action and the reason for such action

6 shall be provided to the family not less than 30

7 days before the action is to be taken, or, in a

8 case where the health or safety of other families

9 is threatened, a reasonable period of time con10 sidering the seriousness of the situation (but

11 not to exceed 30 days).

12 ‘‘(B) The family shall have the right to re13 quest a hearing within 30 days after receipt of

14 the notice.

15 ‘‘(C) The family shall have the right to a

16 hearing before an impartial hearing officer.

17 ‘‘(D) The family shall have the right to be

18 represented at the hearing by an attorney or

19 other advocate.

20 ‘‘(E) The family shall have the right to ex21 amine the evidence supporting the action and

22 all evidence that the public housing agency in23 tends to use.
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1 ‘‘(F) The family shall have the right to

2 present testimonial and documentary evidence

3 and to cross-examine adverse witnesses.

4 ‘‘(G) The hearing officer shall issue a writ5 ten decision, which shall be based solely upon

6 the evidence introduced at the hearing and

7 which shall state the basis of the decision.

8 ‘‘(g) ELIGIBILITY OF UNITS FOR ASSISTANCE.—

9 ‘‘(1) OCCUPANCY STATUS.—Each assistance

10 contract shall provide that assistance payments may

11 be made only with respect to the following dwelling

12 units:

13 ‘‘(A) OCCUPIED UNITS.—A dwelling unit

14 under lease for occupancy by a family deter15 mined to be a low-income family at the time it

16 initially occupies the dwelling unit or by a fam17 ily that qualifies to receive assistance under this

18 section pursuant to section 223 or 226 of the

19 Low-Income Housing Preservation and Resi20 dent Homeownership Act of 1990.

21 ‘‘(B) UNOCCUPIED UNITS.—An unoccupied

22 dwelling unit, but only if—

23 ‘‘(i)(I) a family vacates the dwelling

24 unit before the expiration date of the lease
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1 for occupancy, or (II) a good faith effort is

2 being made to fill the unoccupied unit; and

3 ‘‘(ii) the costs of such vacancy are not

4 charged to or paid by the family vacating

5 the dwelling unit.

6 Payments for units referred to in this subpara7 graph may be made only for a period not ex8 ceeding 60 days, except that such payments

9 may be made, in the case of a newly con10 structed or substantially rehabilitated project,

11 after the expiration of such 60-day period in an

12 amount equal to the debt service attributable to

13 such an unoccupied dwelling unit for a period

14 not to exceed one year, if a good faith effort is

15 being made to fill the unit and the unit provides

16 decent, safe, and sanitary housing. No such

17 payment may be made after the expiration of

18 such 60-day period if the Secretary determines

19 that the dwelling unit is in a project which pro20 vides the owner with revenues exceeding the

21 costs incurred by such owner with respect to

22 such project.

23 ‘‘(2) OWNER’S STATUS.—A public housing

24 agency shall not approve the rental of a dwelling

25 unit if—
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1 ‘‘(A) the owner—

2 ‘‘(i) is debarred, suspended, or subject

3 to limited denial of participation under

4 part 24 of title 24, Code of Federal Regu5 lations; or

6 ‘‘(ii) has been convicted of drug traf7 ficking;

8 ‘‘(B) the owner owns any other dwelling

9 unit in the same project, which is assisted

10 under this section and at such time, such unit

11 is not in compliance in any material respect

12 with standards for housing quality for units so

13 assisted, but the public housing agency shall

14 provide an owner of any such dwelling unit a

15 reasonable opportunity to correct the non16 compliance before denying approval; or

17 ‘‘(C) the owner owns or has owned dwell18 ing units in the same project, which are as19 sisted under this section (or any other program

20 of the Federal Government for housing assist21 ance) and such units have repeatedly or regu22 larly failed to comply with the housing quality

23 standards applicable to such units.

24 ‘‘(h) OTHER PROVISIONS OF ASSISTANCE CON25 TRACTS.—Contracts to make assistance payments entered
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1 into by any public housing agency (or by the Secretary)

2 with an owner of existing housing units shall meet the fol3 lowing requirements:

4 ‘‘(1) CONTRACT TERM.—Each assistance con5 tract shall have a term of not less than one month

6 nor more than 180 months. The Secretary shall per7 mit public housing agencies to enter into assistance

8 contracts having terms of less than 12 months to the

9 extent necessary to avoid disruption in assistance to

10 eligible families if the annual contributions contract

11 for the agency under subsection (b) will expire with12 in 1 year.

13 ‘‘(2) PREFERENCES.—Each assistance contract

14 shall provide that, in making assistance available

15 pursuant to the contract—

16 ‘‘(A) for not less than 70 percent of the

17 families who initially receive project-based as18 sistance, and

19 ‘‘(B) for not less than 90 percent of the

20 families who initially receive tenant-based as21 sistance in any 1-year period,

22 preference shall be given to families that (i) occupy

23 substandard housing (including families that are

24 homeless or living in a shelter for homeless families),

25 (ii) are paying more than 50 percent of family in-
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1 come for rent, or (iii) are involuntarily displaced (in2 cluding displacement because of disposition of a mul3 tifamily housing project under section 203 of the

4 Housing and Community Development Amendments

5 of 1978) at the time they are seeking assistance

6 under this section.

7 ‘‘(3) SECONDARY PREFERENCES.—Each assist8 ance contract shall provide that, for any assistance

9 remaining in any 1-year period after assistance is

10 made available pursuant to paragraph (2), pref11 erence for such assistance shall be given to families

12 who qualify under a system of local preferences es13 tablished by the public housing agency in writing

14 and after public hearing to respond to local housing

15 needs and priorities, which may include—

16 ‘‘(A) assisting very low-income families

17 who either reside in transitional housing as18 sisted under title IV of the Stewart B. McKin19 ney Homeless Assistance Act or participate in

20 a program designed to provide public assistance

21 recipients with greater access to employment

22 and educational opportunities;

23 ‘‘(B) assisting families in accordance with

24 subsection (q)(1)(B);
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1 ‘‘(C) assisting families identified by local

2 public agencies involved in providing for the

3 welfare of children as having a lack of adequate

4 housing that is a primary factor in the immi5 nent placement of a child in foster care, or in

6 preventing the discharge of a child from foster

7 care and reunification with his or her family;

8 ‘‘(D) assisting youth, upon discharge from

9 foster care, in cases in which return to the fam10 ily or extended family or adoption is not avail11 able;

12 ‘‘(E) assisting veterans who are eligible

13 and have applied for assistance, will use the as14 sistance for a dwelling unit designed for the

15 handicapped, and, upon discharge or eligibility

16 for discharge from a hospital or nursing home,

17 have physical disability which, because of the

18 configuration of their homes, prevents them

19 from access to or use of their homes; and

20 ‘‘(F) achieving other objectives of national

21 housing policy as established by law.

22 A public housing agency may not establish a pref23 erence for assistance that provides preference based

24 on residency in the jurisdiction of the public housing

25 agency.
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1 ‘‘(4) TENANT SELECTION.—Each assistance

2 contract shall provide that the selection of tenants

3 for such dwelling units shall be the function of the

4 owner, subject to any provisions of the annual con5 tributions contract between the Secretary and the

6 agency. The owner shall use tenant selection criteria,

7 which shall provide as follows:

8 ‘‘(A) PROHIBITION OF PERSONS ENGAGED

9 IN DRUG ACTIVITY.—The criteria shall prohibit

10 any individual or family evicted from housing

11 assisted under this Act by reason of drug-relat12 ed criminal activity from having a preference

13 under any provision of this paragraph for 3

14 years unless the evicted tenant successfully

15 completes a rehabilitation program approved by

16 the agency or owner. The agency or the owner

17 may waive the application of the preceding sen18 tence under standards established by the Sec19 retary, which shall provide for such waiver for

20 any member of a family of an individual prohib21 ited from tenancy under this subparagraph who

22 the agency or owner determines clearly did not

23 participate in and had no knowledge of such

24 criminal activity or when circumstances leading

25 to eviction no longer exist.
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1 ‘‘(B) OTHER REQUIREMENTS FOR

2 PROJECT-BASED ASSISTANCE.—With respect

3 only to project-based assistance, the criteria

4 shall—

5 ‘‘(i) be consistent with the purpose of

6 improving housing opportunities for very

7 low-income families;

8 ‘‘(ii) be reasonably related to program

9 eligibility and an applicant’s ability to per10 form the obligations of the assisted lease;

11 ‘‘(iii) be established in writing; and

12 ‘‘(iv) provide for the owner to prompt13 ly provide to any rejected applicant (I)

14 written notice of the grounds for the rejec15 tion, and (II) an opportunity to meet with

16 the decision maker to evaluate the validity

17 of the reasons for rejection and rectify any

18 erroneous decisions.

19 ‘‘(5) LEASE PROVISIONS.—Each assistance con20 tract shall provide that the lease between the tenant

21 of any unit and the owner—

22 ‘‘(A) shall be for at least one year or the

23 term of such assistance contract, whichever is

24 shorter;
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1 ‘‘(B) shall contain other terms and condi2 tions specified by the Secretary, including provi3 sions meeting the requirements of paragraphs

4 (6), (7), and (8); and

5 ‘‘(C) shall be in a standard form which is

6 used in the local housing market area by the

7 owner and which applies generally to tenants in

8 the property who are not assisted under this

9 section, together with any addendum necessary

10 to include in the lease the provisions required

11 under subparagraph (B).

12 ‘‘(6) GENERAL GROUNDS FOR TERMINATION OF

13 TENANCY.—Each assistance contract shall provide

14 that the owner shall not terminate the tenancy of

15 the tenant of any unit except for serious or repeated

16 violation of the terms and conditions of the lease, for

17 violation of applicable Federal, State, or local law, or

18 for other good cause. The withholding of assistance

19 payments for a dwelling unit pursuant to paragraph

20 (10) shall not constitute good cause for termination

21 of the tenancy of the tenant of the unit.

22 ‘‘(7) TERMINATION FOR ACTIVITY.—Each as23 sistance contract shall provide that any activity that

24 threatens the health, safety, or right to peaceful en25 joyment of the premises by other tenants, any activ-
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1 ity that threatens the health, safety, or right to

2 peaceful enjoyment of their residences by persons re3 siding in the immediate vicinity of the premises, or

4 any drug-related criminal activity on or near such

5 premises, engaged in by a tenant of any unit, any

6 member of the tenant’s household, or any guest or

7 other person under the tenant’s control, shall be

8 cause for termination of tenancy.

9 ‘‘(8) NOTICE OF TERMINATION OF TENANCY.—

10 Each assistance contract shall provide that before

11 terminating the tenancy of any tenant, the owner

12 shall provide written notice to the tenant specifying

13 the legal and factual grounds for such action, which

14 shall be provided in accordance with any require15 ments under State or local law.

16 ‘‘(9) MAINTENANCE AND REPLACEMENT.—

17 Each assistance contract shall provide that mainte18 nance and replacement (including redecoration) shall

19 be performed in accordance with the standard prac20 tice for the building concerned as established by the

21 owner and agreed to by the agency (or the Sec22 retary). With the approval of the Secretary, the pub23 lic housing agency administering a contract under

24 this section with respect to existing housing units

25 may exercise all management and maintenance re-
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1 sponsibilities with respect to the units pursuant to a

2 contract between such agency and the owner of such

3 units.

4 ‘‘(10) ENFORCEMENT OF HOUSING QUALITY

5 STANDARDS.—

6 ‘‘(A) IN GENERAL.—Each assistance con7 tract shall provide for action under this para8 graph if a unit assisted under this section fails

9 to comply with the standards for housing qual10 ity for units so assisted.

11 ‘‘(B) NOTIFICATION.—If the agency (or

12 the Secretary) determines that a unit assisted

13 under this section fails to comply in any mate14 rial respect with the standards for housing

15 quality for units so assisted, the agency (or the

16 Secretary) shall notify the tenant and owner of

17 the unit of the noncompliance and the possible

18 actions under this paragraph.

19 ‘‘(C) CORRECTION OF NONCOMPLIANCE.—

20 The agency may approve the dwelling unit for

21 assistance under this section, on the condition

22 that the noncompliance is corrected, if (i) the

23 agency determines that the noncompliance is

24 minor and can be corrected within 15 days, (ii)

25 the agency provides notice of the conditional ap-
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1 proval to the owner, (ii) the owner provides a

2 written commitment to the agency to correct

3 the noncompliance within the time period re4 quired by the agency, not to exceed 15 days,

5 and (iii) the conditional approval will expedite

6 the occupancy of an eligible tenant with assist7 ance under this section. The agency shall rein8 spect any unit for which conditional approval is

9 made under this subparagraph within the pe10 riod referred to in clause (ii) of the preceding

11 sentence, and if the agency determines that the

12 noncompliance is not corrected, the agency may

13 take action under subparagraph (D).

14 ‘‘(D) FAILURE TO CORRECT SERIOUS NON15 COMPLIANCE.—If any serious noncompliance

16 with such standards is not corrected within a

17 reasonable period of time after such notifica18 tion, the agency (or the Secretary) shall with19 hold some or all of the assistance amounts

20 under this section with respect to the unit and

21 promptly—

22 ‘‘(i) use such amounts to make nec23 essary repairs or contract to have such re24 pairs made;
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1 ‘‘(ii) release any withheld amounts to

2 the owner after repairs are made by the

3 owner, in an amount not exceeding the

4 cost of the repairs;

5 ‘‘(iii) release any withheld amounts to

6 the applicable State or local housing agen7 cy after repairs are made by such agency,

8 in an amount not exceeding the cost of the

9 repairs; or

10 ‘‘(iv) upon the request of the tenant,

11 release any withheld amounts to—

12 ‘‘(I) the tenant to reimburse the

13 tenant for the reasonable cost of any

14 necessary repairs performed or paid

15 for by the tenant; or

16 ‘‘(II) such person secured by the

17 tenant and approved by the agency

18 (or the Secretary) to make such nec19 essary repairs.

20 If an agency (or the Secretary) withholds any

21 assistance amounts pursuant to this subpara22 graph, the agency (or the Secretary) shall

23 promptly notify the tenant of the unit for which

24 assistance is withheld of the withholding and

25 may not terminate the assistance contract un-
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1 less and until the tenant has relocated to de2 cent, safe, and sanitary housing.

3 ‘‘(11) STANDARDS AND OBLIGATIONS OF RESI4 DENCY IN HOUSING RECEIVING PROJECT-BASED AS5 SISTANCE.—Each assistance contract for project6 based assistance under subsection (i) shall provide

7 that the owner shall ensure and maintain compliance

8 with subtitle C of title VI of the Housing and Com9 munity Development Act of 1992 and any regula10 tions issued under such subtitle.

11 ‘‘(12) SERVICE COORDINATORS.—In determin12 ing the amount of assistance provided under an as13 sistance contract for tenant-based assistance under

14 this paragraph, the Secretary may increase the

15 amount annually provided with respect to such

16 project to provide for the costs of employing or oth17 erwise retaining the services of one or more service

18 coordinators under section 671 of the Housing and

19 Community Development Act of 1992 to coordinate

20 the provision of any services within the project for

21 residents of the project who are elderly or disabled

22 families.

23 ‘‘(13) OTHER.—Each assistance contract shall

24 provide that the agency and the owner shall carry
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1 out such other appropriate terms and conditions as

2 may be mutually agreed to by the agency and owner.

3 ‘‘(i) PROJECT-BASED ASSISTANCE.—

4 ‘‘(1) AUTHORITY.—Pursuant to an annual con5 tributions contract entered into under subsection

6 (b), a public housing agency may enter into a assist7 ance contract providing for assistance payments

8 under this section that are attached to a structure.

9 ‘‘(2) REQUIREMENTS.—Any public housing

10 agency may approve project-based assistance under

11 this subsection with respect to any or all of the as12 sistance provided by the public housing agency if—

13 ‘‘(A) the owner agrees to rehabilitate the

14 structure other than with assistance under this

15 Act and the owner otherwise complies with the

16 requirements of this section; and

17 ‘‘(B) in the case of any newly constructed

18 structure, the owner or prospective owner

19 agrees to construct the structure other than

20 with assistance under this Act and otherwise

21 complies with the requirements of this section.

22 ‘‘(3) LONG-TERM AFFORDABILITY.—

23 ‘‘(A) IN GENERAL.—In the case of an as24 sistance contract for project-based assistance

25 under this subsection, a public housing agency
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1 shall enter into a contract with an owner, con2 tingent upon the future availability of appro3 priations for the purpose of renewing expiring

4 contracts for assistance payments as provided

5 in appropriations Acts, to extend the term of

6 the underlying assistance contract for such pe7 riod or periods as the Secretary determines to

8 be appropriate to achieve long-term afford9 ability of the housing. The contract shall obli10 gate the owner to have the extensions of the as11 sistance contract accepted by the owner and the

12 owner’s successors in interest.

13 ‘‘(B) TERM OF ASSISTANCE FOR LOW-IN14 COME HOUSING PRESERVATION.—The contract

15 for assistance may, at the option of the public

16 housing agency, have an initial term not exceed17 ing 15 years for any assistance that is at18 tached—

19 ‘‘(i) to projects assisted under a State

20 program that permits the owner of the

21 projects to prepay a State assisted or sub22 sidized mortgage on the structure; and

23 ‘‘(ii) for the purpose of providing in24 centives to owners to preserve such

25 projects for occupancy by low- and mod-
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1 erate-income families (for the period that

2 assistance under this subparagraph is

3 available) and assisting low-income tenants

4 to afford any increases in rent that may be

5 required to induce the owner to maintain

6 occupancy in the project by low- and mod7 erate-income tenants.

8 Any assistance provided to low-income tenants

9 in the manner described in this subparagraph

10 shall not be considered for purposes of the limi11 tation under subsection (h)(2) regarding the

12 percentage of families that may receive assist13 ance under this section who do not qualify for

14 preferences under such subsection.

15 ‘‘(4) SERVICE COORDINATORS.—In determining

16 the amount of assistance provided under an assist17 ance contract for project-based assistance under this

18 subsection or a contract for assistance for housing

19 constructed or substantially rehabilitated pursuant

20 to assistance provided under section 8(b)(2) of this

21 Act (as such section existed before October 1, 1983),

22 the Secretary may increase the amount annually

23 provided with respect to such project to provide for

24 the costs of employing or otherwise retaining the

25 services of one or more service coordinators under
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1 section 671 of the Housing and Community Devel2 opment Act of 1992 to coordinate the provision of

3 any services within the project for residents of the

4 project who are elderly or disabled families.

5 ‘‘(j) TERMINATION OF ASSISTANCE CONTRACTS.—

6 ‘‘(1) TERMINATION OF TENANT-BASED ASSIST7 ANCE.—

8 ‘‘(A) NOTICE BY OWNER.—Any owner ter9 minating any assistance contract under this sec10 tion for tenant-based assistance shall provide

11 written notice to the public housing agency and

12 the tenants involved of the proposed termi13 nation not less than 90 days before the termi14 nation of the contract. The notice shall specify

15 the date of the termination and the reasons for

16 the termination, with detail sufficient to enable

17 the agency to evaluate whether the termination

18 is lawful.

19 ‘‘(B) REVIEW OF NOTICE BY PHA.—The

20 public housing agency shall review the notice

21 and issue a written finding of the legality of the

22 termination and the reasons for the termi23 nation. Within 30 days after issuance of the

24 findings, the owner shall provide written notice

25 to each tenant of the decision, together with the
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1 written findings of the agency regarding the

2 termination.

3 ‘‘(2) TERMINATION OF PROJECT-BASED ASSIST4 ANCE CONTRACTS.—

5 ‘‘(A) NOTICE BY OWNER.—Any owner ter6 minating any assistance contract under sub7 section (i) for project-based assistance shall

8 provide written notice to the Secretary and the

9 tenants involved of the proposed termination

10 not less than one year before the termination of

11 the contract. The notice shall specify the date

12 of the termination and the reasons for the ter13 mination, with detail sufficient to enable the

14 Secretary to evaluate whether the termination

15 is lawful and whether additional actions can be

16 taken by the Secretary to avoid the termination.

17 The notice shall include a statement that the

18 owner and the Secretary may agree to a re19 newal of the contract, thus avoiding the termi20 nation.

21 ‘‘(B) REVIEW OF NOTICE BY SEC22 RETARY.—The Secretary shall review the no23 tice, shall consider whether additional actions

24 can be taken by the Secretary to avoid the ter25 mination, and shall ensure a proper adjustment
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1 of the contract rents for the project in compli2 ance with the requirements of subsection (d)

3 and subparagraph (C) of this subsection. The

4 Secretary shall issue a written finding of the le5 gality of the termination and the reasons for

6 the termination, including the actions consid7 ered or taken to avoid the termination. Within

8 30 days after issuance of the findings, the

9 owner shall provide written notice to each ten10 ant of the decision, together with the written

11 findings of the Secretary regarding the termi12 nation. The Secretary and the owner shall com13 plete the actions under this paragraph not later

14 than the expiration of the 9-month period be15 ginning upon the date that the owner provides

16 written notice of termination under subpara17 graph (A).

18 ‘‘(3) ADJUSTMENT OF CONTRACT RENT.—If an

19 owner provides notice of proposed termination under

20 paragraph (1)(A) or (2)(A) and the contract rent is

21 less than the maximum monthly rent for units as22 sisted under this section, the Secretary shall adjust

23 the contract rent based on the maximum monthly

24 rent for units assisted under this section and the

25 value of the low-income housing.
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1 ‘‘(4) NOTICE OF RENT INCREASES.—Each as2 sistance contract for assistance under this section

3 shall require the owner to notify tenants at least 90

4 days before the expiration of the contract of any

5 rent increase which may occur as a result of the ex6 piration of such contract.

7 ‘‘(5) DEFINITION OF TERMINATION.—For pur8 poses of this subsection, the term ‘termination’

9 means the expiration of the assistance contract or

10 the refusal of the owner to renew an assistance con11 tract, which shall include the termination of tenancy

12 by an owner for business reasons.

13 ‘‘(k) RENTAL ASSISTANCE FOR MANUFACTURED

14 HOUSING.—

15 ‘‘(1) IN GENERAL.—The Secretary may enter

16 into contracts to make assistance payments under

17 this subsection to assist low-income families by mak18 ing rental assistance payments on behalf of any such

19 family that utilizes a manufactured home as its prin20 cipal place of residence. In carrying out this sub21 section, the Secretary may—

22 ‘‘(A) enter into annual contributions con23 tracts with public housing agencies pursuant to

24 which such agencies may enter into assistance

25 contracts to make such assistance payments to
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1 the owners of such real property, if such owners

2 agree to make good faith efforts to ensure that

3 such property complies with local health and

4 safety standards for water and sewage systems;

5 or

6 ‘‘(B) enter into such contracts directly

7 with the owners of such real property, if such

8 owners agree to make good faith efforts to en9 sure that such property complies with local

10 health and safety standards for water and sew11 age systems.

12 ‘‘(2) USE OF ASSISTANCE.—Rental assistance

13 payments under this subsection may be made with

14 respect to the rental of the real property on which

15 is located a manufactured home that is owned by a

16 low-income family or with respect to the rental by

17 such a family of a manufactured home and the real

18 property on which it is located.

19 ‘‘(3) ASSISTANCE FOR RENTAL OF MANUFAC20 TURED HOME SITE.—

21 ‘‘(A) MAXIMUM MONTHLY RENT.—A con22 tract entered into pursuant to this paragraph

23 shall establish the maximum monthly rent (in24 cluding maintenance and management charges)

25 that the owner is entitled to receive for the
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1 space on which a manufactured home is located

2 and with respect to which assistance payments

3 are to be made. The maximum monthly rent

4 shall not exceed an amount approved or estab5 lished by the Secretary.

6 ‘‘(B) AMOUNT OF MONTHLY ASSISTANCE

7 PAYMENT.—The amount of any monthly assist8 ance payment with respect to any family that

9 rents real property that is assisted under this

10 paragraph, and on which is located a manufac11 tured home that is owned by such family shall

12 be the difference between the rent the family is

13 required to pay under section 3(a) and the sum

14 of—

15 ‘‘(i) the monthly payment made by

16 such family to amortize the cost of pur17 chasing the manufactured home;

18 ‘‘(ii) the monthly utility payments

19 made by such family, subject to reasonable

20 limitations prescribed by the Secretary;

21 and

22 ‘‘(iii) the maximum monthly rent per23 mitted with respect to the real property

24 which is rented by such family for the pur25 pose of locating its manufactured home;
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1 except that in no case may such assistance ex2 ceed the total amount of such maximum month3 ly rent.

4 ‘‘(4) ASSISTANCE FOR RENTAL OF MANUFAC5 TURED HOME AND SITE.—

6 ‘‘(A) MAXIMUM MONTHLY RENT.—Con7 tracts entered into pursuant to this paragraph

8 shall establish the maximum monthly rent per9 mitted with respect to the manufactured home

10 and the real property on which it is located and

11 with respect to which assistance payments are

12 to be made. The maximum monthly rent shall

13 not exceed an amount approved or established

14 by the Secretary.

15 ‘‘(B) AMOUNT OF MONTHLY ASSISTANCE

16 PAYMENT.—The amount of any monthly assist17 ance payment with respect to any family that

18 rents a manufactured home and the real prop19 erty on which it is located and that is assisted

20 under this paragraph shall be the difference be21 tween the rent the family is required to pay

22 under section 3(a) and the sum of—

23 ‘‘(i) the monthly utility payments

24 made by such family, subject to reasonable
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1 limitations prescribed by the Secretary;

2 and

3 ‘‘(ii) the maximum monthly rent per4 mitted with respect to the manufactured

5 home and real property on which it is lo6 cated.

7 ‘‘(5) ADJUSTMENT OF MAXIMUM MONTHLY

8 RENTS.—The provisions of paragraphs (3) through

9 (7) of subsection (d) shall apply to the adjustments

10 of maximum monthly rents under this subsection.

11 ‘‘(6) CONTRACT TERM.—Each contract entered

12 into under the subsection shall be for a term of not

13 less than one month and not more than 180 months;

14 except that in any case in which the manufactured

15 home park is substantially rehabilitated or newly

16 constructed, such term may not be less than 240

17 months, nor more than the maximum term for a

18 manufactured home loan permitted under section

19 2(b) of the National Housing Act.

20 ‘‘(7) APPLICABILITY.—The Secretary may carry

21 out this subsection without regard to whether the

22 manufactured home park is existing, substantially

23 rehabilitated, or newly constructed.

24 ‘‘(8) LIMITATION ON SUBSTANTIALLY REHA25 BILITATED AND NEWLY CONSTRUCTED MANUFAC-
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1 TURED HOME PARKS.—In the case of any substan2 tially rehabilitated or newly constructed manufac3 tured home park containing spaces with respect to

4 which assistance is made under this subsection, the

5 principal amount of the mortgage attributable to the

6 rental spaces within the park may not exceed an

7 amount established by the Secretary which is equal

8 to or less than the limitation for manufactured home

9 parks described in section 207(c)(3) of the National

10 Housing Act, and the Secretary may increase such

11 limitation in high cost areas in the manner described

12 in such section.

13 ‘‘(9) OTHER REQUIREMENTS.—The Secretary

14 may prescribe other terms and conditions necessary

15 for the purpose of carrying out this subsection and

16 that are consistent with the purposes of this sub17 section.

18 ‘‘(l) SINGLE ROOM OCCUPANCY FACILITIES.—

19 ‘‘(1) AUTHORITY.—In making assistance avail20 able under this section and assistance under section

21 441 and part V of subtitle F of title IV of the Stew22 art B. McKinney Homeless Assistance Act, the Sec23 retary may provide assistance with respect to resi24 dential properties in which some or all of the dwell25 ing units do not contain bathroom or kitchen facili-
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1 ties, if the unit of general local government in which

2 the property is located and the local public housing

3 agency certify to the Secretary that the property

4 complies with local health and safety standards.

5 ‘‘(2) WAIVER OF LIMITATIONS ON ASSISTANCE

6 FOR SINGLE PERSONS.—The Secretary may waive,

7 in appropriate cases, the limitation and preference in

8 section 3(b)(3)(A) with respect to the assistance

9 made available under this subsection.

10 ‘‘(m) HOUSING FOR ELDERLY AND DISABLED FAMI11 LIES.—

12 ‘‘(1) SHARED HOUSING.—To assist elderly fam13 ilies and disabled families (as defined in section

14 3(b)) who elect to live in a shared housing arrange15 ment in which they benefit as a result of sharing the

16 facilities of a dwelling with others in a manner that

17 effectively and efficiently meets their housing needs

18 and thereby reduces their costs of housing, the Sec19 retary shall permit assistance provided under this

20 section to be used by such families in such arrange21 ments. In carrying out this subsection, the Secretary

22 shall issue minimum habitability standards for the

23 purpose of ensuring decent, safe, and sanitary hous24 ing for such families while taking into account the

25 special circumstances of shared housing.
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1 ‘‘(2) PRIORITY FOR NONELDERLY DISABLED

2 FAMILIES.—In allocating assistance under this sec3 tion, a public housing agency that serves more than

4 one unit of general local government may, at the dis5 cretion of the agency, give priority to disabled fami6 lies that are not elderly families.

7 ‘‘(3) AUTHORITY TO PROVIDE PREFERENCES

8 FOR THE ELDERLY AND RESERVE UNITS FOR THE

9 DISABLED.—Notwithstanding subsection (h)(2) or

10 (3), an owner of a covered section 8 housing project

11 (as such term is defined in section 659 of the Hous12 ing and Community Development Act of 1992) may

13 give preference for occupancy of dwelling units in

14 the project, and reserve units for occupancy, in ac15 cordance with subtitle D of title VI of the Housing

16 and Community Development Act of 1992.

17 ‘‘(n) ADMINISTRATIVE FEES.—

18 ‘‘(1) BASIC FEE FOR TENANT-BASED RENTAL

19 PROGRAM.—The Secretary shall establish a fee for

20 the costs incurred by a public housing agency in ad21 ministering the program for rental assistance under

22 this section, which shall be, together with other fees

23 authorized under this subsection, included in any

24 amounts provided to the public housing agency

25 under the annual contributions contract for the
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1 agency. The amount of the fee for each month for

2 which a dwelling unit is covered by an assistance

3 contract shall be 8.2 percent of the fair market rent4 al established under subsection (e) for a 2-bedroom

5 existing rental dwelling unit in the market area of

6 the public housing agency. The Secretary may in7 crease the fee if necessary to reflect the higher costs

8 of administering small programs and programs oper9 ating over large geographic areas.

10 ‘‘(2) OTHER FEES.—The Secretary shall also

11 establish reasonable fees (as determined by the Sec12 retary) for—

13 ‘‘(A) the costs of preliminary expenses that

14 a public housing agency documents it has in15 curred in connection with new allocations of as16 sistance under the program for rental assist17 ance under this section, which shall not exceed

18 $275 per unit assisted;

19 ‘‘(B) the costs incurred in assisting fami20 lies who experience difficulty (as determined by

21 the Secretary) in obtaining appropriate housing

22 under the program; and

23 ‘‘(C) extraordinary costs approved by the

24 Secretary.
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1 ‘‘(3) BUDGET COMPLIANCE.—The Secretary

2 may establish or increase a fee in accordance with

3 this subsection only to such extent or in such

4 amounts as are provided in appropriation Acts.

5 ‘‘(4) FEES FOR 1995 AND 1996.—Notwithstand6 ing any other provision of this subsection, the basic

7 fee for the costs incurred by a public housing agency

8 in administering the program for rental assistance

9 under this section during fiscal years 1995 and 1996

10 shall be equal to the fee determined for fiscal year

11 1993 under section 11(a) of the HUD Demonstra12 tion Act of 1993.

13 ‘‘(o) PORTABILITY OF ASSISTANCE.—

14 ‘‘(1) AUTHORITY.—Except as provided in para15 graphs (3) and (4), any family on behalf of whom

16 is provided tenant-based rental assistance under this

17 section and who moves to an eligible dwelling unit

18 located within the same State, or the same or a con19 tiguous metropolitan statistical area, as the metro20 politan statistical area within which is located the

21 area of jurisdiction of the public housing agency ap22 proving the assistance for the family, may use such

23 assistance to rent such eligible dwelling unit.

24 ‘‘(2) ADMINISTRATION.—The public housing

25 agency having authority with respect to the dwelling
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1 unit to which a family moves under this subsection

2 shall have the responsibility of carrying out the pro3 visions of this section with respect to the family. If

4 no public housing agency has authority with respect

5 to the dwelling unit to which a family moves under

6 this subsection, the public housing agency approving

7 the assistance shall have such responsibility.

8 ‘‘(3) LOCAL OPTION TO ENSURE MINIMUM AREA

9 RESIDENCY.—At the discretion of a public housing

10 agency, the agency may provide that a family not

11 living within the jurisdiction of a public housing

12 agency at the time such family applies for or re13 ceives assistance from the agency may use tenant14 based rental assistance under this section to rent an

15 eligible dwelling unit that is not located within the

16 area of jurisdiction of the agency approving the as17 sistance only if, before such use, the family has

18 rented and occupied an eligible dwelling unit within

19 such original jurisdiction for not less than 12 con20 secutive months using assistance provided by such

21 agency.

22 ‘‘(4) PROHIBITION OF PORTABILITY IN CASES

23 OF LEASE VIOLATION.—A family may not use ten24 ant-based rental assistance as provided in paragraph
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1 (1) if the family has moved from a dwelling unit in

2 violation of the lease for the dwelling unit.

3 ‘‘(5) ALLOCATIONS DUE TO PORTABILITY.—In

4 determining the amount of rental assistance pro5 vided under an annual contributions contract for any

6 fiscal year, the Secretary shall consider any reduc7 tion in the number of resident families incurred by

8 a public housing agency in the preceding fiscal year

9 as a result of the provisions of this subsection.

10 ‘‘(6) PROVISION OF RENTAL ASSISTANCE FOR

11 PORTABILITY PURPOSES.—

12 ‘‘(A) AMOUNT.—To the extent amounts for

13 assistance under this section that are reserved

14 under section 213(d)(4) of the Housing and

15 Community Development Act of 1974 are avail16 able in a fiscal year, the Secretary shall provide

17 rental assistance under this section in accord18 ance with this paragraph.

19 ‘‘(B) USE.—Amounts provided for use

20 under this paragraph shall be used only to pro21 vide a public housing agency with additional

22 amounts (as determined under subparagraph

23 (C)) to provide assistance for families on behalf

24 of whom assistance is provided under this sec25 tion by another public housing agency and who
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1 move into an eligible dwelling unit located with2 in the area of jurisdiction of the agency to re3 ceive assistance under this paragraph.

4 ‘‘(C) REQUIREMENT.—Amounts provided

5 for use under this paragraph may be made

6 available to a public housing agency in a fiscal

7 year only if, during such fiscal year, the agency

8 has provided assistance pursuant to the first

9 sentence of paragraph (2) on behalf of families

10 who have moved into eligible dwelling units lo11 cated within the area of jurisdiction of the

12 agency in an amount not less than the lesser of

13 (i) 5 percent of total amount received by the

14 agency for assistance under this section for the

15 fiscal year, or (ii) the amount necessary to as16 sist 25 percent of average annual number of

17 families previously assisted by the agency who

18 relinquish such assistance in a year (based on

19 the preceding 3 calendar years).

20 ‘‘(p) PROHIBITION OF DISCRIMINATION.—In select21 ing families for the provision of assistance under this sec22 tion, a public housing agency may not exclude or penalize

23 a family solely because the family resides in a public hous24 ing project.

25 ‘‘(q) SPECIAL USES OF RENTAL ASSISTANCE.—
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1 ‘‘(1) ASSISTANCE FOR RESIDENTS OF REHA2 BILITATED PROJECTS.—In the case of low-income

3 families living in rental projects rehabilitated under

4 section 17 of this Act or section 533 of the Housing

5 Act of 1949 before rehabilitation—

6 ‘‘(A) tenant-based rental assistance under

7 this section shall be provided for families who

8 are required to move out of their dwelling units

9 because of the physical rehabilitation activities

10 or because of overcrowding;

11 ‘‘(B) at the discretion of each public hous12 ing agency, tenant-based rental assistance

13 under this section may be provided for families

14 who would have to pay more than 30 percent of

15 their adjusted income for rent after rehabilita16 tion whether they choose to remain in, or to

17 move from, the project; and

18 ‘‘(C) the Secretary shall allocate tenant19 based rental assistance provided under this sec20 tion to ensure that sufficient resources are

21 available to address the physical or economic

22 displacement, or potential economic displace23 ment, of existing tenants pursuant to subpara24 graphs (A) and (B).

25 ‘‘(2) LOAN MANAGEMENT ASSISTANCE.—
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1 ‘‘(A) IN GENERAL.—The Secretary may

2 provide assistance under this section through a

3 loan management program to assist financially

4 troubled multifamily residential housing

5 projects (i) subject to mortgages that are in6 sured under the National Housing Act or mort7 gages that have been assigned to the Secretary,

8 (ii) that were held by the Secretary and have

9 been sold, and (iii) that were assisted under

10 section 202 of the Housing Act of 1959.

11 ‘‘(B) ELIGIBILITY.—The eligibility of a

12 multifamily residential project for loan manage13 ment assistance under this paragraph shall be

14 determined without regard to whether the

15 project is subsidized or unsubsidized.

16 ‘‘(C) EXTENSION OF CONTRACT.—The

17 Secretary shall extend any expiring contract en18 tered into under this section for loan manage19 ment assistance or execute a new contract for

20 project-based loan management assistance, if

21 the owner agrees to continue providing housing

22 for low-income families during the term of the

23 contract.

24 ‘‘(3) ASSISTANCE FOR FAMILY UNIFICATION.—
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1 ‘‘(A) IN GENERAL.—The Secretary may

2 provide assistance under this section to be used

3 only in connection with tenant-based assistance

4 under this section on behalf of any family (i)

5 who is otherwise eligible for such assistance,

6 and (ii) who the public child welfare agency for

7 the jurisdiction has certified is a family for

8 whom the lack of adequate housing is a primary

9 factor in the imminent placement of the fami10 ly’s child or children in out-of-home care or the

11 delayed discharge of a child or children to the

12 family from out-of-home care.

13 ‘‘(B) ALLOCATION.—Any amounts made

14 available under this paragraph shall be allo15 cated by the Secretary through a national com16 petition among applicants based on dem17 onstrated need for assistance under this para18 graph. To be considered for assistance, an ap19 plicant shall submit to the Secretary a written

20 proposal containing a report from the public

21 child welfare agency serving the jurisdiction of

22 the applicant that describes how a lack of ade23 quate housing in the jurisdiction is resulting in

24 the initial or prolonged separation of children

25 from their families, and how the applicant will
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1 coordinate with the public child welfare agency

2 to identify eligible families and provide the fam3 ilies with assistance under this paragraph.

4 ‘‘(C) DEFINITIONS.—For purposes of this

5 paragraph:

6 ‘‘(i) APPLICANT.—The term ‘appli7 cant’ means a public housing agency.

8 ‘‘(ii) PUBLIC CHILD WELFARE AGEN9 CY.—The term ‘public child welfare agen10 cy’ means the public agency responsible

11 under applicable State law for determining

12 that a child is at imminent risk of place13 ment in out-of-home care or that a child in

14 out-of-home care under the supervision of

15 the public agency may be returned to his

16 or her family.

17 ‘‘(D) REPORT.—The Secretary shall in18 clude in each annual report of the Secretary

19 under section 8 of the Department of Housing

20 and Urban Development Act information speci21 fying the number of families assisted pursuant

22 to this paragraph during the preceding 2-year

23 period and the number of communities in which

24 such assistance was used, describing the extent

25 of cooperation between public housing agencies
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1 and public child welfare agencies in timely iden2 tifying families for which such assistance is ap3 propriate and in providing such assistance, and

4 describing any impediments to providing such

5 assistance.

6 ‘‘(4) NEIGHBORHOOD CRIME FIGHTERS ASSIST7 ANCE.—

8 ‘‘(A) ASSISTANCE.—To the extent amounts

9 for assistance under this section are reserved

10 under section 213(d)(4)(A) of the Housing and

11 Community Development Act of 1974 for use

12 under this paragraph, the Secretary may pro13 vide such amounts to any public housing agency

14 approved under subparagraph (C) to make as15 sistance payments under this paragraph on be16 half of any family described under subpara17 graph (B) for the rental of a dwelling unit for

18 the family that, in the determination of the

19 public housing agency (after consultation with

20 law enforcement agency concerned) provides for

21 the protection of the family.

22 ‘‘(B) ELIGIBLE FAMILIES.—A family re23 ferred to in subparagraph (A) shall be any fam24 ily that—
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1 ‘‘(i) contains a member that has pro2 vided information to any Federal, State, or

3 local law enforcement agency that such law

4 enforcement agency determines substan5 tially contributes to the arrest, criminal

6 prosecution, or conviction of any person for

7 any criminal activity in or near the area or

8 neighborhood in which the person provid9 ing the information resides;

10 ‘‘(ii) is likely, in the determination of

11 such law enforcement agency, to be subject

12 to a crime of violence directed at the fam13 ily on account of providing the information

14 referred to in clause (i);

15 ‘‘(iii) is legally residing, at the time

16 such information is provided to the law en17 forcement agency, in a dwelling unit in a

18 public housing project administered by a

19 public housing agency meeting the require20 ments of subparagraph (C) or in a dwell21 ing unit assisted under this section by such

22 a public housing agency; and

23 ‘‘(iv) is not protected or assisted, or to

24 be protected or assisted, under chapter 224

25 of title 18, United States Code.
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1 ‘‘(C) ELIGIBLE PHA’S.—The Secretary

2 may provide amounts reserved for use under

3 this paragraph only to public housing agencies

4 approved by the Secretary under this subpara5 graph. The Secretary may approve only agen6 cies that the Secretary determines have—

7 ‘‘(i) established sufficient cooperation

8 with local law enforcement agencies to

9 make determinations to provide assistance

10 under this paragraph; and

11 ‘‘(ii) coordinated with local law en12 forcement agencies to promptly inform the

13 public housing agency and the Secretary of

14 any determination that assistance under

15 this paragraph is appropriate for a family,

16 except that such coordination shall be sub17 ject to the procedures established under

18 subparagraph (F)(iii) to ensure confiden19 tiality.

20 ‘‘(D) GUIDELINES.—

21 ‘‘(i) DETERMINATION OF NEED AND

22 COORDINATION.—The Secretary shall es23 tablish guidelines jointly with the Attorney

24 General that—
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1 ‘‘(I) describe the types of situa2 tions under clauses (i) and (ii) of sub3 paragraph (B) in which assistance

4 may be provided under this para5 graph, which shall include situations

6 in which the information referred to

7 in subparagraph (B)(i) is information

8 regarding any crime that is detrimen9 tal to the health, safety, peace, or se10 curity of the area or neighborhood in

11 which the family providing the infor12 mation resides; and

13 ‘‘(II) describe elements of suffi14 cient cooperation between public hous15 ing agencies and law enforcement

16 agencies for purposes of subparagraph

17 (C)(i).

18 ‘‘(ii) PROCEDURES.—The Secretary

19 shall establish procedures for public hous20 ing agencies approved under subparagraph

21 (C)—

22 ‘‘(I) to apply for, obtain, and ad23 minister amounts reserved for provid24 ing assistance under this paragraph
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1 on behalf of families eligible under

2 subparagraph (B); and

3 ‘‘(II) to provide for the termi4 nation of the tenancy of any family

5 assisted under this paragraph from

6 the dwelling unit in which the family

7 is residing so that such assistance

8 may be utilized.

9 ‘‘(E) PHA ACTIONS.—Each public housing

10 agency approved by the Secretary under sub11 paragraph (C) shall—

12 ‘‘(i) periodically notify Federal, State,

13 and local law enforcement agencies in the

14 area of jurisdiction of the public housing

15 agency of the availability of assistance

16 under this paragraph;

17 ‘‘(ii) take such actions as may be ap18 propriate to inform residents of public

19 housing projects administered by the agen20 cy and dwelling units assisted under this

21 section by the agency of the availability of

22 such assistance; and

23 ‘‘(iii) coordinate with such law en24 forcement agencies to promptly inform the

25 public housing agency and the Secretary of
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1 any determination that assistance under

2 this paragraph is appropriate for a family,

3 except that such coordination shall be sub4 ject to the procedures established under

5 subparagraph (F)(iii) to ensure confiden6 tiality.

7 ‘‘(F) NOTICE AND CONFIDENTIALITY.—

8 The Secretary shall—

9 ‘‘(i) periodically notify public housing

10 agencies of the availability of assistance

11 under this paragraph;

12 ‘‘(ii) encourage public housing agen13 cies to cooperate and coordinate with law

14 enforcement agencies to encourage resi15 dents of public housing projects and dwell16 ing units assisted under this section to

17 provide information to law enforcement

18 agencies regarding criminal activity; and

19 ‘‘(iii) develop and implement proce20 dures to ensure the confidentiality of the

21 identity and new location of any family as22 sisted under this paragraph.

23 ‘‘(G) OTHER ASSISTANCE.—A public hous24 ing agency that provides assistance under sub25 paragraph (A) for a family and the law enforce-
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1 ment agency involved shall ensure that the fam2 ily is provided access to other assistance and

3 services appropriate to ensure that the reloca4 tion of the family to the dwelling unit assisted

5 under subparagraph (A) and the neighborhood

6 of such dwelling unit occurs with the minimum

7 possible amount of disruption to the life of the

8 family.

9 ‘‘(H) LIABILITY.—The United States, and

10 its officers and employees, shall not be subject

11 to any civil liability on account of any decision

12 to provide or not to provide protection under

13 this paragraph.

14 ‘‘(r) RENEWAL OF EXPIRING CONTRACTS.—

15 ‘‘(1) 5-YEAR PLAN.—Not later than 30 days

16 after the beginning of each fiscal year, the Secretary

17 shall publish in the Federal Register a plan for re18 ducing, to the extent feasible, year-to-year fluctua19 tions in the levels of budget authority that will be

20 required over the succeeding 5-year period to renew

21 expiring assistance contracts entered into under this

22 section after the enactment of the Housing and

23 Community Development Act of 1974. To the extent

24 necessary to carry out such plan and to the extent

25 approved in appropriations Acts, the Secretary is au-
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1 thorized to enter into annual contributions contracts

2 with terms of less than 60 months.

3 ‘‘(2) NEW CONSTRUCTION AND SUBSTANTIAL

4 REHABILITATION PROJECTS.—Subject only to the

5 availability of budget authority to carry out this

6 paragraph and to the absence of owners agreeing to

7 enter into new contracts, the Secretary shall enter

8 into new contracts under subtitle D of title I of the

9 Housing and Community Development Act of 1994

10 to provide project-based assistance for qualified

11 housing (as such term is defined in section 163 of

12 such subtitle) to owners of such housing.

13 ‘‘(s) GENERAL PROVISIONS.—

14 ‘‘(1) PLEDGING ASSISTANCE CONTRACTS AS SE15 CURITY.—An owner may pledge, or offer as security

16 for any loan or obligation, an assistance contract en17 tered into pursuant to this section, but only if such

18 security is in connection with a project constructed

19 or rehabilitated pursuant to authority under this

20 section and the terms of the financing or any refi21 nancing have been approved by the Secretary.

22 ‘‘(2) HOUSING COUNSELING FOR RENTAL

23 CHOICE.—Each public housing agency that provides

24 rental housing assistance under this section on be25 half of low-income families shall notify such assisted
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1 families of the availability of any entity in the juris2 diction of the agency providing rental housing coun3 seling under section 106(a)(4) of the Housing and

4 Urban Development Act of 1968.

5 ‘‘(t) HOMEOWNERSHIP OPTION.—A public housing

6 agency providing assistance under this section may, at the

7 option of the agency, provide assistance for homeowner8 ship under this subsection as follows:

9 ‘‘(1) USE OF ASSISTANCE FOR HOMEOWNER10 SHIP.—A family receiving tenant-based assistance

11 under this section may receive assistance for occu12 pancy of a dwelling owned by one or more members

13 of the family if the family—

14 ‘‘(A) is a first-time homeowner;

15 ‘‘(B)(i) participates in the family self-suffi16 ciency program under section 23 of the public

17 housing agency providing the assistance; or

18 ‘‘(ii) demonstrates that the family has in19 come from employment or other sources (other

20 than public assistance), as determined in ac21 cordance with requirements of the Secretary,

22 that is not less than twice the fair market rent23 al for the area established under subsection

24 (e)(1) (or such other amount as may be estab25 lished by the Secretary);
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1 ‘‘(C) except as provided by the Secretary,

2 demonstrates at the time the family initially re3 ceives tenant-based assistance under this sub4 section that one or more adult members of the

5 family have achieved employment for the period

6 as the Secretary shall require;

7 ‘‘(D) participates in a homeownership and

8 housing counseling program provided by the

9 agency; and

10 ‘‘(E) meets any other initial or continuing

11 requirements established by the public housing

12 agency in accordance with requirements estab13 lished by the Secretary.

14 ‘‘(2) MONTHLY ASSISTANCE PAYMENT.—

15 ‘‘(A) IN GENERAL.—Notwithstanding any

16 other provisions of this section governing deter17 mination of the amount of assistance payments

18 under this section on behalf of a family, the

19 monthly assistance payment for any family as20 sisted under this subsection shall be the amount

21 by which the fair market rental for the area es22 tablished under subsection (e)(1) exceeds 30

23 percent of the family’s monthly adjusted in24 come; except that the monthly assistance pay25 ment shall not exceed the amount by which the
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1 monthly homeownership expenses, as deter2 mined in accordance with requirements estab3 lished by the Secretary, exceeds 10 percent of

4 the family’s monthly income.

5 ‘‘(B) EXCLUSION OF EQUITY FROM IN6 COME.—For purposes of determining the

7 monthly assistance payment for a family, the

8 Secretary shall not include in family income an

9 amount imputed from the equity of the family

10 in a dwelling occupied by the family with assist11 ance under this subsection.

12 ‘‘(3) RECAPTURE OF CERTAIN AMOUNTS.—

13 Upon sale of the dwelling by the family, the Sec14 retary shall recapture from any net proceeds the

15 amount of additional assistance (as determined in

16 accordance with requirements established by the

17 Secretary) paid to or on behalf of the eligible family

18 as a result of paragraph (2)(B).

19 ‘‘(4) DOWNPAYMENT REQUIREMENT.—Each

20 public housing agency providing assistance under

21 this subsection shall ensure that each family assisted

22 shall provide from its own resources not less than 80

23 percent of any downpayment in connection with a

24 loan made for the purchase of a dwelling. Such re25 sources may include amounts from any escrow ac-
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1 count for the family established under section 23(d).

2 Not more than 20 percent of the downpayment may

3 be provided from other sources, such as from non4 profit entities and programs of States and units of

5 general local government.

6 ‘‘(5) INELIGIBILITY UNDER OTHER PRO7 GRAMS.—A family may not receive assistance under

8 this subsection during any period when assistance is

9 being provided for the family under other Federal

10 homeownership assistance programs, as determined

11 by the Secretary, which shall include assistance

12 under the HOME Investment Partnerships Act, the

13 Homeownership and Opportunity Through HOPE

14 Act, title II of the Housing and Community Devel15 opment Act of 1987, and section 502 of the Housing

16 Act of 1949.

17 ‘‘(6) INAPPLICABILITY OF CERTAIN PROVI18 SIONS.—Assistance under this subsection shall not

19 be subject to the requirements of the following provi20 sions:

21 ‘‘(A) Subsection (h)(5) of this section.

22 ‘‘(B) Any other provisions of this section

23 governing maximum amounts payable to owners

24 and amounts payable by assisted families.
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1 ‘‘(C) Any other provisions of this section

2 concerning contracts between public housing

3 agencies and owners.

4 ‘‘(D) Any other provisions of this Act

5 that are inconsistent with the provisions of this

6 subsection.

7 ‘‘(7) REVERSION TO RENTAL STATUS.—

8 ‘‘(A) FHA-INSURED MORTGAGES.—If a

9 family receiving assistance under this sub10 section for occupancy of a dwelling defaults

11 under a mortgage for the dwelling insured by

12 the Secretary under the National Housing Act,

13 the family may not continue to receive rental

14 assistance under this section unless the family

15 (i) transfers to the Secretary marketable title to

16 the dwelling, (ii) moves from the dwelling with17 in the period established or approved by the

18 Secretary, and (iii) agrees that any amounts

19 the family is required to pay to reimburse the

20 escrow account under section 23(d)(3) may be

21 deducted by the public housing agency from the

22 assistance payment otherwise payable on behalf

23 of the family.

24 ‘‘(B) OTHER MORTGAGES.—If a family re25 ceiving assistance under this subsection defaults
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1 under a mortgage not insured under the Na2 tional Housing Act, the family may not con3 tinue to receive rental assistance under this sec4 tion unless it complies with requirements estab5 lished by the Secretary.

6 ‘‘(C) ALL MORTGAGES.—A family receiving

7 assistance under this subsection that defaults

8 under a mortgage may not receive assistance

9 under this subsection for occupancy of another

10 dwelling owned by one or more members of the

11 family.

12 ‘‘(8) DEFINITION OF FIRST-TIME HOME13 OWNER.—For purposes of this subsection, the term

14 ‘first-time homeowner’ means—

15 ‘‘(A) a family, no member of which has

16 had a present ownership interest in a principal

17 residence during the 3 years preceding the date

18 on which the family initially receives assistance

19 for homeownership under this subsection; and

20 ‘‘(B) any other family, as the Secretary

21 may prescribe.

22 ‘‘(u) DEFINITIONS.—For purposes of this section:

23 ‘‘(1) ANNUAL CONTRIBUTIONS CONTRACT.—

24 The term ‘annual contributions contract’ means a

25 contract under subsection (b) between the Secretary
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1 and a public housing agency to provide amounts for

2 rental assistance payments under this section to the

3 public housing agency.

4 ‘‘(2) ASSISTANCE CONTRACT.—The term ‘as5 sistance contract’ means a contract under subsection

6 (c) between a public housing agency (or the Sec7 retary) and an owner to make rental assistance pay8 ments under this section to the owner.

9 ‘‘(3) DEBT SERVICE.—The term ‘debt service’

10 means the required payments for principal and in11 terest made with respect to a mortgage secured by

12 housing assisted under this Act.

13 ‘‘(4) DRUG-RELATED CRIMINAL ACTIVITY.—The

14 term ‘drug-related criminal activity’ means the ille15 gal manufacture, sale, distribution, use, or posses16 sion with intent to manufacture, sell, distribute, or

17 use, of a controlled substance (as such term is de18 fined in section 102 of the Controlled Substances

19 Act).

20 ‘‘(5) OWNER.—The term ‘owner’ means any

21 private person or entity, including a cooperative, an

22 agency of the Federal Government, or a public hous23 ing agency, having the legal right to lease or sub24 lease dwelling units, and such term shall include any

25 principals, general partners, primary shareholders,
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1 and other similar participants in any entity owning

2 a multifamily housing project (as such term is de3 fined in subsection (p)(3)), as well as the entity

4 itself.

5 ‘‘(6) PARTICIPATING JURISDICTION.—The term

6 ‘participating jurisdiction’ means a State or unit of

7 general local government designated by the Sec8 retary to be a participating jurisdiction under title

9 II of the Cranston-Gonzalez National Affordable

10 Housing Act.

11 ‘‘(7) PROJECT-BASED ASSISTANCE.—The term

12 ‘project-based assistance’ means rental assistance

13 under this section that is attached to a structure

14 pursuant to subsection (i).

15 ‘‘(8) RENT.—The terms ‘rent’ and ‘rental’ in16 clude, with respect to members of a cooperative, the

17 charges under the occupancy agreements between

18 such members and the cooperative.

19 ‘‘(9) RENTAL ASSISTANCE.—The term ‘rental

20 assistance’ means assistance provided under this sec21 tion on behalf of low-income families for the rental

22 of a dwelling unit.

23 ‘‘(10) TENANT-BASED ASSISTANCE.—The term

24 ‘tenant-based assistance’ means rental assistance
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1 under this section that is not project-based assist2 ance.’’.

3 (b) CONFORMING AMENDMENTS.—

4 (1) UNITED STATES HOUSING ACT OF 1937.—

5 The United States Housing Act of 1937 is amend6 ed—

7 (A) in section 3(a)(1) (42 U.S.C.

8 1437a(a)(1)), by striking ‘‘(other than a family

9 assisted under section 8(o) or (y) or paying rent

10 under section 8(c)(3)(B))’’ and inserting

11 ‘‘(other than a family assisted under section

12 8(t) or paying rent under section 8(f)(2))’’;

13 (B) in section 5 (42 U.S.C. 1437c)—

14 (i) in subsection (c)(7)(C), by striking

15 ‘‘section 8(b)(1)’’ each place it appears and

16 inserting ‘‘section 8’’;

17 (ii) in subsection (j)(1)(B)(i), by strik18 ing ‘‘section 8(o)(6)’’ and inserting ‘‘sec19 tion 8’’; and

20 (iii) in subsection (j)(1)(D), by strik21 ing ‘‘subsection (b) or (o) of’’;

22 (C) in section 6(p)(1)(B) (42 U.S.C.

23 1437d(p)(1)(B)), by striking ‘‘holding certifi24 cates and vouchers’’ and inserting ‘‘eligible and

25 approved for assistance’’;
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1 (D) in section 21(b)(3)—

2 (i) by striking ‘‘a certificate under

3 section 8(b)(1) or a housing voucher under

4 section 8(o)’’ and inserting ‘‘tenant-based

5 assistance under section 8’’; and

6 (ii) by striking ‘‘such certificate’’ and

7 inserting ‘‘such assistance’’;

8 (E) in section 23—

9 (i) in subsection (a), by striking ‘‘as10 sistance under the certificate and voucher

11 programs’’ and inserting ‘‘tenant-based as12 sistance’’;

13 (ii) in subsection (b)—

14 (I) in paragraph (1), by striking

15 ‘‘assistance under subsection (b) or

16 (o) of’’ and inserting ‘‘tenant-based

17 assistance under’’; and

18 (II) in paragraph (4), by striking

19 ‘‘Assistance under the certificate or

20 voucher programs’’ and inserting

21 ‘‘Tenant-based assistance’’;

22 (iii) in subsection (c)(1), by striking

23 ‘‘assistance under the certificate and

24 voucher programs of’’ and inserting ‘‘ten25 ant-based assistance from’’;
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1 (iv) in subsection (d)(3) (as added by

2 section 185(b) of the Housing and Com3 munity Development Act of 1992 (Public

4 Law 102–550; 106 Stat. 3747)), by strik5 ing ‘‘section 8(y)’’ and inserting ‘‘section

6 8(t)’’; and

7 (v) in subsection (h)(1)—

8 (I) by striking ‘‘section 8(q) for

9 the costs incurred in administering

10 the provision of certificate and vouch11 er’’ and inserting ‘‘section 8(n) for the

12 costs incurred in administering the

13 provision of tenant-based’’; and

14 (II) by striking ‘‘section

15 8(q)(2)(A)(i)’’ and inserting ‘‘section

16 8(n)(2)(A)’’; and

17 (G) in section 304(g)(3) (42 U.S.C.

18 1437aaa–3(g)(3)), by striking ‘‘section 8(b)(2)

19 and section 8(o)(9)’’ and inserting ‘‘section 8’’.

20 (2) ALLOCATION OF ASSISTED HOUSING

21 FUNDS.—Section 213 of the Housing and Commu22 nity Development Act of 1974 (42 U.S.C. 1439) is

23 amended—

24 (A) in subsection (d)—
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1 (i) in paragraph (1)(A)(ii), by striking

2 ‘‘section 8(b)(1)’’ each place it appears and

3 inserting ‘‘section 8’’; and

4 (ii) in paragraph (2), by striking ‘‘sec5 tion 8(d)’’ and inserting ‘‘section 8(i)’’;

6 (B) in subsection (e), by striking ‘‘section

7 8(b)(1)’’ and inserting ‘‘section 8’’.

8 (3) SUPPORTIVE HOUSING FOR ELDERLY FAMI9 LIES.—Section 801(d)(1)(B) of the Cranston-Gon10 zalez National Affordable Housing Act (12 U.S.C.

11 1701q note) is amended by striking ‘‘section

12 8(c)(1)’’ and inserting ‘‘section 8(e)’’.

13 (4) ELDERLY INDEPENDENCE.—Section 803 of

14 the Cranston-Gonzalez National Affordable Housing

15 Act (42 U.S.C. 8012) is amended—

16 (A) in subsection (a), by striking ‘‘housing

17 certificates and vouchers’’ and inserting ‘‘assist18 ance under section 8 of the United States

19 Housing Act of 1937’’; and

20 (B) in subsection (b)—

21 (i) in the 1st sentence, by striking

22 ‘‘not more than 1,500 incremental vouch23 ers and certificates under sections 8(b) and

24 8(o) of the United States Housing Act of

25 1937’’ and inserting ‘‘incremental assist-
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1 ance under section 8 of the United States

2 Housing Act of 1937 on behalf of not more

3 than 1,500 frail elderly persons’’;

4 (ii) in the 3rd sentence, by striking

5 ‘‘the housing certificate or voucher pro6 gram of the agency’’ and inserting ‘‘the

7 agency’s program for assistance under

8 such section 8’’; and

9 (iii) in the last sentence, by striking

10 ‘‘sections 8(b) and 8(o)’’ and inserting

11 ‘‘section 8’’.

12 (5) REVISED CONGREGATE HOUSING SERV13 ICES.—Section 802(k)(6)(B) of the Cranston-Gon14 zalez National Affordable Housing Act (42 U.S.C.

15 8011(k)(6)(B)) is amended by striking ‘‘subsection

16 (d)(2)’’ and inserting ‘‘subsection (i)’’.

17 (6) HOUSING FOR PERSONS WITH AIDS.—Sub18 title D of title VIII of the Cranston-Gonzalez Na19 tional Affordable Housing Act is amended—

20 (A) in section 859(a)(2) (42 U.S.C.

21 12908(a)(2)) by striking ‘‘section 8(p)’’ each

22 place it appears and inserting ‘‘section

23 8(m)(1)’’; and
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1 (B) in section 860(a) (42 U.S.C.

2 12909(a)), by striking ‘‘section 8(n)’’ and in3 serting ‘‘section 8(l)’’.

4 (7) MCKINNEY ACT.—Section 441(b) of the

5 Stewart B. McKinney Homeless Assistance Act (42

6 U.S.C. 11401(b)) is amended—

7 (A) by striking ‘‘section 8(n)’’ and insert8 ing ‘‘section 8(l)’’; and

9 (B) by adding at the end the following new

10 sentence: ‘‘Moderate rehabilitation under this

11 section shall be carried out in the manner pro12 vided under the provisions of section 8(e) of the

13 United States Housing Act of 1937, as such

14 section was in effect (pursuant to section

15 289(b)(2) of the Cranston-Gonzalez National

16 Affordable Housing Act) immediately before the

17 enactment of the Housing and Community De18 velopment Act of 1994.’’.

19 (8) FLEXIBLE SUBSIDY PROGRAM.—Section

20 201 of the Housing and Community Development

21 Amendments of 1978 (12 U.S.C. 1715z–1a) is

22 amended—

23 (A) in subsection (m)(2)(A), by striking

24 ‘‘section 8(b)(1)’’ and inserting ‘‘section 8’’;

25 and
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1 (B) in subsection (o), by striking ‘‘section

2 8(v)’’ and inserting ‘‘section 8(q)(2)’’.

3 (9) HUD-OWNED PROJECTS.—Section 203 of

4 the Housing and Community Development Amend5 ments of 1978 (12 U.S.C. 1701z–11) is amended—

6 (A) in subsection (e)(1)(D)—

7 (i) in clause (i)(IV), by inserting be8 fore the semicolon the following: ‘‘, as such

9 section was in effect (pursuant to section

10 289(b)(2) of the Cranston-Gonzalez Na11 tional Affordable Housing Act) imme12 diately before the enactment of the Hous13 ing and Community Development Act of

14 1994’’; and

15 (ii) in clause (ii), by striking ‘‘section

16 8(b)’’ and inserting ‘‘section 8’’;

17 (B) in subsection (g)(2), by striking ‘‘,

18 8(d)(1)(A)(i), and 8(o)(3)(B)’’ and inserting ‘‘

19 and 8(h)(2)(iii)’’; and

20 (C) in subsection (h)(2), by striking ‘‘sec21 tion 8(c)’’ and inserting ‘‘section 8(e)’’.

22 (10) HOUSING ACCESS.—Section 204 of the

23 Housing and Community Development Amendments

24 of 1978 (12 U.S.C. 1701z–12) is amended by strik25 ing ‘‘to a holder of a certificate of eligibility under
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1 that section solely because of such prospective ten2 ant’s status as a certificate holder’’ and inserting

3 ‘‘to a family that is approved for assistance under

4 such section solely because of such the family’s sta5 tus as assisted under such section’’.

6 (11) ELIHPA OF 1987.—The references in sec7 tions 225(b)(3)(D), 226(a)(3), and 228(a)(4) of the

8 Emergency Low Income Housing Preservation Act

9 of 1987 (as in effect immediately before the enact10 ment of the Cranston-Gonzalez National Affordable

11 Housing Act) to section 8(b) of the United States

12 Housing Act of 1937 shall be considered to refer to

13 section 8(e) of the United States Housing Act of

14 1937 (as amended by the Housing and Community

15 Development Act of 1994).

16 (12) LIHPRHA OF 1990.—Title II of the Hous17 ing and Community Development Act of 1987 (42

18 U.S.C. 4101 et seq.) is amended—

19 (A) in section 215(a)—

20 (i) in paragraph (1), by striking ‘‘sec21 tion 8(c)’’ and inserting ‘‘section 8(e)’’;

22 and

23 (ii) in paragraph (2), by striking ‘‘sec24 tion 8(c)(1)’’ and inserting ‘‘section

25 8(e)(1)’’;
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1 (B) in section 220(d)(3)(B), by striking

2 ‘‘section 8(c)’’ and inserting ‘‘section 8(e)’’;

3 (C) in section 222—

4 (i) in subsection (a)(2)(D), by striking

5 ‘‘section 8(c)’’ and inserting ‘‘section

6 8(e)’’; and

7 (ii) in subsection (d)(2)(C)(i), by

8 striking ‘‘sections 8(b) and 8(o) of the

9 United States Housing Act of 1937 (other

10 than project-based assistance attached to

11 the housing)’’ and inserting ‘‘tenant-based

12 assistance under section 8 of the United

13 States Housing Act of 1937’’;

14 (D) in section 223(a), by striking ‘‘the cer15 tificate and voucher programs under sections

16 8(b) and 8(o)’’ and inserting ‘‘section 8’’; and

17 (E) in section 226(b)(6)(B), by striking

18 ‘‘sections 8(d)(1)(A) and 8(o)(3)’’ and inserting

19 ‘‘section 8(h)(2)’’.

20 (13) DISASTER RELIEF.—

21 (A) TENANT-BASED ASSISTANCE.—Section

22 931 of the Cranston-Gonzalez National Afford23 able Housing Act (42 U.S.C. 1437c note) is

24 amended—
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1 (i) in the section heading, by striking

2 ‘‘CERTIFICATES AND VOUCHERS’’ and

3 inserting ‘‘TENANT-BASED ASSIST4 ANCE’’; and

5 (ii) by striking ‘‘assistance under the

6 certificate and voucher programs under

7 sections 8 (b) and (o)’’ and inserting ‘‘ten8 ant-based assistance under section 8’’.

9 (B) MODERATE REHABILITATION ASSIST10 ANCE.—Section 932 of the Cranston-Gonzalez

11 National Affordable Housing Act (42 U.S.C.

12 1437c note) is amended by inserting after

13 ‘‘such Act’’ the following: ‘‘, as such section was

14 in effect (pursuant to section 289(b)(2) of the

15 Cranston-Gonzalez National Affordable Hous16 ing Act) immediately before the enactment of

17 the Housing and Community Development Act

18 of 1994,’’.

19 (14) PUBLIC HOUSING MINCS DEMONSTRA20 TION.—Section 522(f)(6)(B) of the Cranston-Gon21 zalez National Affordable Housing Act (42 U.S.C.

22 1437f note) is amended—

23 (A) by striking ‘‘assistance under section

24 8(b)’’ and inserting ‘‘tenant-based assistance

25 under section 8’’; and
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1 (B) by striking ‘‘section 8(d)(1)(A)(i)’’ and

2 inserting ‘‘section 8(h)(2)’’.

3 (15) PUBLIC HOUSING NEW CONSTRUCTION IN4 COME ELIGIBILITY.—Section 545(c)(2) of the Cran5 ston-Gonzalez National Affordable Housing Act (42

6 U.S.C. 1437f note) is amended by striking ‘‘section

7 8(d)(1)(A)(ii)’’ and inserting ‘‘section 8(h)(3)’’.

8 (16) SECTION 8 EXCESSIVE RENT BURDEN

9 DATA.—Section 550(b) of the Cranston-Gonzalez

10 National Affordable Housing Act (42 U.S.C. 1437f

11 note) is amended—

12 (A) in paragraph (1), by striking ‘‘under

13 the certificate and voucher programs estab14 lished’’ and inserting ‘‘with tenant-based assist15 ance’’;

16 (B) in the first sentence of paragraph (2),

17 by striking ‘‘, for each’’ and all that follows

18 through ‘‘participating in the program’’ and in19 serting ‘‘the percentage of families receiving

20 tenant-based assistance’’; and

21 (C) in paragraph (3), by striking ‘‘assist22 ance under the certicate or voucher program’’

23 and inserting ‘‘tenant-based assistance under

24 section 8 of the United States Housing Act of

25 1937’’.
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1 (17) RURAL HOUSING PRESERVATION

2 GRANTS.—Section 533(a) of the Housing Act of

3 1949 (42 U.S.C. 1490m) is amended by striking

4 ‘‘assistance payments as provided by section 8(o)’’

5 and inserting ‘‘tenant-based assistance payments

6 under section 8 (including assistance in accordance

7 with section 8(f)(2)’’.

8 (18) FEDERALLY ASSISTED HOUSING OCCU9 PANCY STANDARDS.—Section 643(b)(2) of the Hous10 ing and Community Development Act of 1992 (42

11 U.S.C. 13603(b)(2)) is amended by striking ‘‘section

12 8(d)(1)’’ and inserting ‘‘section 8(h)’’.

13 (19) RESERVATION OF SECTION 8 UNITS FOR

14 DISABLED FAMILIES.—Section 655 of the Housing

15 and Community Development Act of 1992 (42

16 U.S.C. 13615) is amended by striking ‘‘section

17 8(d)(1)(A)(i) of the United States Housing Act of

18 1937 and the first sentence of section 8(o)(3)(B) of

19 such Act’’ and inserting ‘‘section 8(h)(2) of the

20 United States Housing Act of 1937’’.

21 (20) GAO REPORT ON LEAD EXPOSURE.—Sec22 tion 1056(a) of the Housing and Community Devel23 opment Act of 1992 (42 U.S.C. 4855) is amended

24 by striking ‘‘subsections (b) and (o) of’’.
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1 (21) NATIONAL HOUSING ACT.—The National

2 Housing Act is amended—

3 (A) in section 203(v) (12 U.S.C. 1709(v)),

4 as added by section 185(c)(1)(B) of the Hous5 ing and Community Development Act of 1992,

6 by striking ‘‘section 8(y)’’ and inserting ‘‘sec7 tion 8(t)’’; and

8 (B) in section 236(f)(5)(A)(i) (12 U.S.C.

9 1715z–1(f)(5)(A)(i)), by striking ‘‘section 8(c)’’

10 and inserting ‘‘section 8(e)’’.

11 (c) APPLICABILITY.—The amendments under this

12 section are made on the date of the enactment of this Act,

13 but shall apply on and after October 1, 1995, only to as14 sistance under section 8 of the United States Housing Act

15 of 1937 provided pursuant to an assistance contract en16 tered into or renewed on or after such date. Any such as17 sistance provided pursuant to an assistance contract en18 tered into before such date shall be subject to the provi19 sions of such section 8 as in effect immediately before the

20 enactment of this Act or otherwise applicable to such as21 sistance.

22 (d) TRANSITION.—

23 (1) CONVERSION.—The Secretary may provide

24 for the conversion of assistance under the certificate

25 and voucher programs, as such programs existed be-
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1 fore the date of the enactment of this Act, to the

2 certificate program established under the amend3 ments under this section.

4 (2) CONTINUATION OF ASSISTANCE.—The Sec5 retary of Housing and Urban Development shall

6 take any action necessary to ensure that the provi7 sion of assistance under section 8 of the United

8 States Housing Act of 1937 to families receiving as9 sistance under such section on the date of the enact10 ment of this Act is not interrupted because of the

11 amendments under this section.

12 (e) REGULATIONS.—The Secretary shall implement

13 the amendments under this section by regulation issued

14 after notice and opportunity for public comment.

15 SEC. 143. INCENTIVES TO REFINANCE HIGH INTEREST

16 MORTGAGES FOR SECTION 8 PROJECTS.

17 Section 8 of the United States Housing Act of 1937

18 (42 U.S.C. 1437f), as amended by the preceding provi19 sions of this Act, is further amended by adding at the end

20 the following new subsection:

21 ‘‘(v) REFINANCING INCENTIVE.—For a project that

22 (1) was constructed, substantially rehabilitated, or mod23 erately rehabilitated under this section, (2) is subject to

24 an assistance contract under this section, and (3) was sub25 ject to a mortgage that has been refinanced under section
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1 223(a)(7) or section 223(f) of the National Housing Act

2 to lower the periodic debt service payments of the owner,

3 the Secretary may pay the owner the amount of the up

4 front costs to the owner of refinancing. The Secretary may

5 make such payments only from savings in the amount of

6 assistance payments, as determined by the Secretary on

7 a project-by-project basis and after application of amounts

8 in accordance with section 1012 of the Stewart B. McKin9 ney Homeless Assistance Amendments Act of 1988, that

10 result from the refinancing during the first year after the

11 refinancing.’’.

12 SEC. 144. DEMONSTRATION PROGRAM FOR USE OF EXCESS

13 RESIDUAL RECEIPTS.

14 (a) IN GENERAL.—The Secretary of Housing and

15 Urban Development shall carry out a demonstration pro16 gram, in conjunction with State housing agencies, under

17 which the Secretary, at the request of owners of qualified

18 projects, makes amounts in the account for residual re19 ceipts or excess amounts for the qualified projects avail20 able for use under model programs to expand the supply

21 of affordable housing.

22 (b) LIMITATION.—The Secretary may not make any

23 amounts available for use under the demonstration pro24 gram under this section from the account of a qualified

25 project for residual receipts or excess amounts unless the
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1 amount remaining in the account, together with replace2 ment reserves for the project, is sufficient (in the deter3 mination of the Secretary) to maintain, manage, and pre4 serve the project as affordable housing.

5 (c) QUALIFIED PROJECTS.—For purposes of this sec6 tion, the term ‘‘qualified project’’ means a housing

7 project—

8 (1) assisted with project-based assistance under

9 section 8 of the United States Housing Act of 1937;

10 or

11 (2) constructed or substantially rehabilitated

12 pursuant to assistance provided under section

13 8(b)(2) of the United States Housing Act of 1937,

14 as such section existed before November 30, 1983.

15 SEC. 145. TREATMENT OF CERTAIN PROJECTS.

16 (a) CONVERSION OF SECTION 23 PROJECT.—From

17 amounts available for the conversion of the Tamaqua

18 Highrise project in the Borough of Tamaqua, Pennsylva19 nia, from a leased housing contract under section 23 of

20 the United States Housing Act of 1937 to tenant-based

21 assistance under section 8 of such Act, the Secretary of

22 Housing and Urban Development shall, to the extent such

23 amounts are made available in appropriation Acts, enter

24 into an obligation for the conversion of the project to a

25 project-based rental assistance contract under section 8 of
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1 such Act, notwithstanding the requirement for rehabilita2 tion or the percentage limitations under section 8(d)(2)

3 of such Act (as in effect before the date of the enactment

4 of this Act) and subparagraph (A) of section 8(i)(2) of

5 such Act (as amended by section 143 of this Act).

6 (b) COMPLIANCE WITH REHABILITATION REQUIRE7 MENT.—Rehabilitation activities undertaken by E.T.C.

8 Enterprises in connection with 16 scattered-site dwelling

9 units that were rehabilitated to provide housing for low10 income families and are located in Perth Amboy, New Jer11 sey, and rehabilitation activities undertaken by Pennrose

12 Properties in connection with 40 dwelling units for senior

13 citizens in the Providence Square development located in

14 New Brunswick, New Jersey, are hereby deemed to have

15 been conducted pursuant to the approval of and an agree16 ment with the Secretary of Housing and Urban Develop17 ment under clauses (i) and (ii) of the third sentence of

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

19 1937 (as in effect before the date of the enactment of this

20 Act) and subparagraph (A) of section 8(i)(2) of such Act

21 (as amended by section 143 of this Act).
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1 SEC. 146. STUDY OF EXTENT OF NONPARTICIPATION OF

2 OWNERS AND LANDLORDS IN SECTION 8

3 RENTAL ASSISTANCE PROGRAM.

4 The Secretary of Housing and Urban Development

5 shall conduct a study—

6 (1) to determine the extent to which the re7 quirements of section 8(p)(2) of the United States

8 Housing Act of 1937 (as amended by this Act) and

9 section 8(t) of such Act (as in effect before the en10 actment of this Act) cause owners of multifamily

11 rental housing to abstain from entering into con12 tracts for housing assistance payments under such

13 section; and

14 (2) to identify other factors causing owners of

15 such housing to abstain from entering into such con16 tracts.

17 In conducting the study, the Secretary shall consult a sig18 nificant number of owners in a wide range of areas. The

19 Secretary shall submit a report to the Congress describing

20 the results of the study not later than February 1, 1996.

21 SEC. 147. STUDY OF SECTION 8 HOUSING QUALITY STAND22 ARDS.

23 The Secretary of Housing and Urban Development

24 shall conduct a study of the existing standards for housing

25 quality for dwelling units assisted under the program for
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1 rental assistance under section 8 of the United States

2 Housing Act of 1937. The study shall determine—

3 (1) whether the standards are effective in en4 suring decent, safe, and sanitary housing;

5 (2) how, and the extent to which, the standards

6 are enforced; and

7 (3) how the standards or the enforcement of the

8 standards may be improved.

9 The Secretary shall submit a report to the Congress

10 not later than 2 years after the date of the enactment of

11 this Act describing the results of the study and containing

12 any recommendations of the Secretary to carry out para13 graph (3).

14 Subtitle D—Renewal of Expiring

15 Contracts for Section 8 New

16 Construction and Substantial

17 Rehabilitation Projects

18 SEC. 151. FINDINGS AND PURPOSE.

19 (a) CONGRESSIONAL FINDINGS.—The Congress finds

20 that—

21 (1) housing built or substantially rehabilitated

22 pursuant to section 8 of the United States Housing

23 Act of 1937 is an important national resource that

24 has provided decent, safe, and affordable housing to

25 hundreds of thousands of low-income families who
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1 otherwise would not have obtained affordable hous2 ing;

3 (2) the Federal Government is the steward of

4 this assisted housing stock and has an affirmative

5 obligation to preserve it as housing for low-income

6 families, consistent with considerations of fairness to

7 all interested parties, including owners, residents,

8 property managers, the community in which the

9 housing is located, and taxpayers;

10 (3) because section 8(e)(1) of the United States

11 Housing Act of 1937 (as in effect prior to November

12 30, 1983) provided, for the most part, that contracts

13 to make assistance payments to owners of newly

14 constructed or substantially rehabilitated housing fi15 nanced with assistance of a loan made by, or in16 sured, guaranteed or intended for purchase by the

17 Federal Government, other than pursuant to section

18 244 of the National Housing Act, could not exceed

19 20 years and because such housing was constructed

20 or substantially rehabilitated during the period from

21 1975 to 1985, a substantial number of contracts

22 that provide for such assistance will soon expire

23 (with other housing constructed or substantially re24 habilitated pursuant to such section of law sup-
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1 ported through housing assistance contracts of

2 longer duration, which will expire at a later time);

3 (4) failure to enter into new housing assistance

4 contracts under equitable and financially sound

5 terms and conditions will reduce the supply of de6 cent, safe, and affordable housing for low-income

7 Americans, while the demonstrated need for such

8 housing remains great;

9 (5) in order for the urban and rural population

10 centers of the United States to regain their viability,

11 the housing stock in such population centers must

12 be preserved, which includes preserving housing built

13 or substantially rehabilitated under section 8 of the

14 United States Housing Act of 1937;

15 (6) assisted housing projects located in areas of

16 relative affluence can promote racial, social, and eco17 nomic integration, and such projects should be main18 tained as part of the affordable housing inventory to

19 the maximum extent practicable;

20 (7) the number of units of housing currently re21 ceiving project-based section 8 assistance should not

22 be reduced as a result of the expiration of any cur23 rent contracts; and

24 (8) the number of households currently assisted

25 by reason of residence in housing projects receiving
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1 project-based section 8 assistance should not be re2 duced as a result of the expiration of any current

3 contracts to provide project-based assistance, though

4 some of the specific families currently living in such

5 housing may either receive such assistance in an6 other location or become recipients of tenant-based

7 assistance under appropriate circumstances (with

8 the preference, as a matter of public policy, to the

9 continued assistance of such households through

10 project-based assistance).

11 (b) PURPOSE.—It is the purpose of this subtitle to

12 provide for the preservation of affordable housing con13 structed or substantially rehabilitated pursuant to section

14 8 of the United States Housing Act of 1937, and to pro15 vide affordable housing opportunities for at least the same

16 number of families as are provided such housing by reason

17 of their residence in housing projects receiving project18 based assistance under such section, in a manner that is

19 administratively efficient, cost-effective, and fair to all in20 terested parties, including owners, residents, property

21 managers and the communities in which the housing is

22 located.
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1 SEC. 152. NOTICES OF CONTRACT EXPIRATION AND INTEN2 TION TO RENEW.

3 (a) NOTICE TO OWNER.—Not later than 27 months

4 before the date of expiration of an expiring contract (or,

5 in the case of a qualified project subject to an expiring

6 contract for which the date of expiration occurs less than

7 27 months after the date of the enactment of this Act,

8 not later than 6 months after the date of enactment of

9 this Act), the Secretary shall notify the owner of the quali10 fied project, in writing, that the owner has an affirmative

11 obligation pursuant to subsection (b).

12 (b) NOTICE BY OWNER TO SECRETARY.—Not later

13 than 24 months before the date of expiration of an expir14 ing contract (or, in the case of a qualified project subject

15 to an expiring contract for which the date of expiration

16 occurs less than 27 months after the date of the enact17 ment of this Act, not later than 9 months after the date

18 of enactment of this Act), the owner of the qualified

19 project shall simultaneously—

20 (1) submit to the Secretary written notice stat21 ing whether or not the owner intends to enter into

22 a new contract pursuant to this subtitle for project23 based assistance for the qualified project; and

24 (2) submit a copy of the notice to the chief ex25 ecutive officer of the State or unit of general local

26 government for the jurisdiction within which the
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1 project is located, any mortgagee of the project, the

2 tenants of the project (including any resident council

3 for the project), and such other individuals or enti4 ties as the Secretary may require.

5 (c) SUBMISSION OF PROPOSAL TO ENTER INTO NEW

6 CONTRACT.—If in the notice required by subsection (b)

7 the owner indicates an intention to enter into a new con8 tract for assistance for the qualified project, not later than

9 3 months after submitting such notice to the Secretary,

10 the owner shall simultaneously—

11 (1) submit to the Secretary a proposal specify12 ing terms and conditions for the new contract, which

13 shall comply with the requirements for new contracts

14 under this subtitle; and

15 (2) submit a copy of the notice to the chief ex16 ecutive officer of the State or unit of general local

17 government for the jurisdiction within which the

18 project is located, any mortgagee of the project, the

19 tenants of the project (including any resident council

20 for the project), and such other individuals or enti21 ties as the Secretary may require.

22 (d) CAPITAL NEEDS ASSESSMENT.—

23 (1) REQUIREMENT.—Within a reasonable pe24 riod of time after receiving a proposal under sub25 section (c) to enter into a new contract for a quali-
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1 fied project, the Secretary shall conduct a com2 prehensive assessment of the needs of the project to

3 determine the rehabilitation needs and replacement

4 reserves necessary to preserve the project during the

5 ensuing 10-year period.

6 (2) CONTENT.—The assessment shall obtain

7 the same information regarding the qualified project

8 that is required to be contained in a comprehensive

9 needs assessment under section 403 of the Housing

10 and Community Development Act of 1992 for a cov11 ered multifamily housing property subject to title IV

12 of such Act, shall assess the management perform13 ance for the project, and shall obtain any other in14 formation as the Secretary considers appropriate for

15 purposes of this subtitle regarding the project, ten16 ants, and market area in which the project is lo17 cated.

18 (e) TENANT AND COMMUNITY PARTICIPATION.—

19 (1) ESTABLISHMENT OF PROCEDURES.—The

20 Secretary shall establish procedures that provide an

21 opportunity for tenants of a qualified project (in22 cluding any resident council) and other affected par23 ties to participate effectively in the process estab24 lished under this section and section 153 to deter25 mine whether and under what terms and conditions
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1 a new contract will be provided for the project or

2 other assistance will be made available.

3 (2) CONTENT OF PROCEDURES.—The proce4 dures established under this subsection shall include

5 providing timely and adequate written notice of the

6 proposed decisions of the owner and the Secretary

7 regarding the qualified project, timely access to all

8 relevant information (not including information de9 termined to be proprietary under standards estab10 lished by the Secretary), an adequate period to ana11 lyze such information and submit comments to the

12 Secretary (which the Secretary shall take into con13 sideration in carrying out this subtitle), and, if re14 quested, arranging meetings with representatives of

15 the Secretary and the owner.

16 (3) APPLICABILITY.—The procedures estab17 lished under this subsection shall provide for the

18 participation of tenants of a qualified project and

19 other affected parties in at least the following ac20 tions:

21 (A) Physical inspection of the qualified

22 property under section 155(b) and determina23 tion of capital needs of a property pursuant to

24 subsection (d).
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1 (B) Any determination under section 154

2 regarding the owner of the project.

3 (C) Review of notice and any proposal sub4 mitted by the owner under subsections (b) and

5 (c) of this section.

6 (D) Determination of the response of the

7 Secretary under section 153.

8 (E) Determination of the terms of any new

9 contract for the project.

10 (F) Establishing and carrying out any plan

11 for sale of the project under section 157(c)(1).

12 (G) Establishing and carrying out of any

13 plan to provide assistance under subsection (d)

14 or (e) of section 157.

15 (4) MINIMUM PERIOD FOR TENANT NOTIFICA16 TION.—The Secretary shall notify tenants of a quali17 fied project of any agreement to enter into a new

18 contract for the project or of the failure to enter into

19 a new contract for the project, as the case may be,

20 not less than 12 months before the expiration of ex21 piring contract. If, in the case of a failure to enter

22 into a new contract for a qualified project, the Sec23 retary fails to comply with the requirement under

24 the preceding sentence, the Secretary shall (subject

25 only to the availability of budget authority) provide
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1 such additional assistance as may be necessary to

2 extend the contract for such 12-month period.

3 SEC. 153. SECRETARY’S RESPONSE TO OWNER’S PROPOSAL.

4 (a) REQUIREMENT.—Except in the case of an owner

5 who submits a notice under section 152(b) stating an in6 tention not to enter into a new contract and in the case

7 of rejection of an owner’s proposal under subsection (c),

8 not later than 90 days after an owner submits a proposal

9 under section 152(c) for a qualified project (or not later

10 than 30 days after the expiration of the period under sec11 tion 152(b), in the case of an owner failing to provide no12 tice under such subsection), the Secretary shall take action

13 under subsection (b) to enter into a new contract.

14 (b) RESPONSE TO OWNER’S PROPOSAL.—Subject

15 only to the availability of budget authority, the Secretary

16 shall take the following actions:

17 (1) STATUS QUO CONTRACTS.—In the case of a

18 qualified project for which the maximum monthly

19 rents for units in the project that are assisted under

20 the expiring contract do not (24 months before the

21 date of the expiration of the contract) exceed 110

22 percent of the fair market rentals for dwelling units

23 of the applicable sizes and types of dwelling units in

24 the relevant metropolitan market area and a quali25 fied project for which the owner agrees to reduce the
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1 maximum monthly rents so that the rents do not ex2 ceed 110 percent of such fair market rentals—

3 (A) if the owner’s proposal under section

4 152(c) provides for establishing maximum

5 monthly rents under the contract for dwelling

6 units in the project pursuant to the procedure

7 under section 156(a) and otherwise complies

8 with the requirements of this subtitle, the Sec9 retary shall agree to the owner’s proposal and

10 shall enter into a new contract for the project;

11 and

12 (B) if the owner’s proposal under section

13 152(c) does not provide for establishing maxi14 mum monthly rents under the contract for

15 dwelling units in the project pursuant to the

16 procedure under section 156(a) or otherwise

17 fails to comply with the requirements of this

18 title, or the owner has failed to submit a pro19 posal, the Secretary shall make an offer to

20 enter into a new contract for the project (by

21 modifying the owner’s proposal under section

22 152(c), if the owner has submitted a proposal)

23 and, if the owner accepts, the Secretary shall

24 enter into such a new contract for the project.
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1 The Secretary may not offer or agree to enter into

2 a new contract for a qualified project, or enter into

3 such a contract, that establishes maximum monthly

4 rents under the contract for dwelling units in the

5 project pursuant to the procedure under section

6 156(a) unless the maximum monthly rents under the

7 expiring contract for the project meet the require8 ments of the matter in this paragraph preceding

9 subparagraph (A).

10 (2) BUDGET-BASED CONTRACTS.—In the case

11 of a qualified project for which the maximum month12 ly rents for units in the project that are assisted

13 under the expiring contract (24 months before the

14 date of the expiration of the contract) exceed 110

15 percent of the fair market rentals for dwelling units

16 of the applicable sizes and types of dwelling units in

17 the relevant metropolitan market area—

18 (A) if the owner’s proposal under section

19 152(c) provides for establishing maximum

20 monthly rents under the contract for dwelling

21 units in the project pursuant to the procedure

22 under section 156(b) and otherwise complies

23 with the requirements of this subtitle, the Sec24 retary shall agree to the owner’s proposal under
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1 section 152(c) and shall enter into a new con2 tract for the project; and

3 (B) if the owner’s proposal under section

4 152(c) does not provide for establishing maxi5 mum monthly rents under the contract for

6 dwelling units in the project pursuant to the

7 procedure under section 156(b) or otherwise

8 fails to comply with the requirements of this

9 title, or the owner has failed to submit a pro10 posal, the Secretary shall make an offer to

11 enter into a new contract for the project (by

12 modifying the owner’s proposal under section

13 152(c), if the owner has submitted a proposal)

14 and, if the owner accepts, the Secretary shall

15 enter into such a new contract for the project.

16 (3) MARKET RENT CONTRACTS FOR HIGH-COST

17 AREAS.—Notwithstanding paragraphs (1) and (2),

18 in the case of a qualified project for which the Sec19 retary determines that the maximum monthly rents

20 for units in the project offered (or to be offered) by

21 the Secretary under paragraph (1) or (2), as appli22 cable, are less than the monthly rents for com23 parable units in comparable unassisted housing

24 projects in the relevant metropolitan market area,

25 the Secretary may offer to enter into a new contract
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1 for the qualified project that provides for the estab2 lishment of the maximum monthly rents at amounts

3 not exceeding the monthly rents for such comparable

4 units. Each new contract entered into under this

5 paragraph shall provide that the maximum monthly

6 rents for the qualified project shall be adjusted an7 nually by applying the annual adjustment factor es8 tablished by the Secretary under section 156(a)(2)

9 to the entire amount of the maximum monthly rents.

10 (4) CONTRACTS FOR PARTIALLY ASSISTED

11 PROJECTS.—Notwithstanding paragraphs (1) and

12 (2), in the case of a qualified project for which as13 sistance is provided under an expiring contract for

14 some, but not all, of the dwelling units in the

15 project, the Secretary may offer to enter into a new

16 contract for the qualified project that provides for

17 the establishment of the maximum monthly rents for

18 units in the project assisted under the expiring con19 tract at amounts not exceeding the sum of (A) the

20 monthly rents for comparable unassisted units in the

21 project, and (B) an allowance for unique costs as de22 termined under section 156(b)(1)(G). Each new con23 tract entered into under this paragraph shall provide

24 that the maximum monthly rents for the qualified

25 project shall be adjusted annually by applying the
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1 annual adjustment factor established by the Sec2 retary under section 156(a)(2) to the entire amount

3 of the maximum monthly rents.

4 (5) AVOIDING OVERCONCENTRATION OF LOW5 INCOME HOUSING.—Notwithstanding paragraphs (1)

6 and (2), with respect to a qualified project for which

7 the Secretary is to provide a new contract under ei8 ther such paragraph, the Secretary may reduce the

9 number of dwelling units otherwise required to be

10 assisted under the new contract (pursuant to section

11 155(a)(3)) if—

12 (A) the Secretary determines that the

13 project is located in a market area in which

14 there is a high concentration of dwelling units

15 occupied by or affordable to very low-income

16 families;

17 (B) the Secretary consults with the owner

18 of the project, the tenants of the project (in19 cluding any resident council), and representa20 tives of the community in which the project is

21 located regarding such reduction and action

22 under subparagraph (D);

23 (C) the owner and affected tenants consent

24 to the reduction and action under subparagraph

25 (D);
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1 (D) the Secretary provides project-based

2 assistance for a number of dwelling units that

3 is not less than the difference between the num4 ber of units otherwise required to be assisted

5 under the new contract and the number actu6 ally assisted under the new contract; and

7 (E) the dwelling units assisted under sub8 paragraph (D) are located in market areas

9 other than the area in which the qualified

10 project is located and such areas do not have a

11 high concentration of dwelling units occupied by

12 or affordable to very low-income families.

13 The Secretary shall determine the maximum month14 ly rents for dwelling units assisted under subpara15 graph (D) using the procedures under paragraph (2)

16 of this subsection and section 156. In determining

17 the maximum monthly rents under the new contract

18 for any dwelling units in the qualified project, the al19 lowance under section 156(b)(1)(G) may be in20 creased to reflect higher costs per unit assisted at21 tributable to assisting less units.

22 (c) REJECTION OF OWNER’S PROPOSAL.—The Sec23 retary may reject a proposal submitted pursuant to section

24 152(c) only for a reason contained in the regulations is25 sued under section 154.
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1 (d) NOTICE OF SECRETARY’S ACTION.—The Sec2 retary shall simultaneously—

3 (1) submit written notice of any action under

4 subsection (b) or (c) to the owner of the qualified

5 project for which such action is taken; and

6 (2) submit a copy of the notice to the chief ex7 ecutive officer of the appropriate State or unit of

8 general local government for the jurisdiction within

9 which the project is located, any mortgagee of the

10 project, the tenants of the project (including any

11 resident council for the project), and such other indi12 viduals or entities as the Secretary may require.

13 Notice under this subsection shall be submitted not later

14 than the expiration of the period for the qualified project

15 referred to in subsection (a). If the Secretary does not pro16 vide notice to the owner as required under this subsection,

17 the proposal of the owner shall be considered to have been

18 accepted without modification. Any notice rejecting a pro19 posal by the owner shall clearly state the reason for reject20 ing the proposal.

21 (e) MODIFICATIONS TO OWNER’S PROPOSAL.—The

22 Secretary may propose modifications to an owner’s pro23 posal submitted pursuant to section 152(c) only to the ex24 tent necessary to make the proposal comply with the re-
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1 quirements under this subtitle for acceptance by the Sec2 retary.

3 (f) LIMITATION ON SECRETARY’S AUTHORITY TO RE4 JECT OR MODIFY.—The Secretary may not reject or pro5 pose modifications to a proposal submitted pursuant to

6 section 152(c) because an enforcement action is pending

7 against the owner. Notwithstanding any other provision

8 of this subtitle, in such event, the Secretary shall, subject

9 only to the availability of budget authority, extend the ap10 plicable expiring contract for the period until the enforce11 ment action is concluded.

12 SEC. 154. LIMITATION ON NEW CONTRACTS.

13 (a) IN GENERAL.—The Secretary may refuse to enter

14 into a new contract with the owner of a qualified project

15 if the Secretary determines that the owner of the project

16 submitting the proposal has committed—

17 (1) violations of laws, regulations, regulatory

18 agreements, or other agreements for which the Sec19 retary may impose suspension, debarment, civil

20 money penalties, and such other major forms of en21 forcement action available to the Secretary under

22 law; or

23 (2) other substantial and repeated violations of

24 laws, regulations, regulatory agreements or other

25 agreements that have not been cured within a rea-
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1 sonable period of time after notice was provided to

2 the owner.

3 (b) REGULATIONS.—Not later than 45 days after the

4 date of enactment of this Act, the Secretary shall publish

5 for comment proposed regulations identifying the viola6 tions that, under subsection (a), prohibit the Secretary

7 from entering into a new contract.

8 SEC. 155. REQUIRED TERMS OF NEW CONTRACTS.

9 (a) IN GENERAL.—The Secretary may accept the

10 proposal of an owner (made under section 152(c) or nego11 tiations pursuant to such a proposal), and may propose

12 modifications to such a proposal and make an offer to

13 enter into a new contract for qualified housing, only if the

14 agreement provides for a new contract for the qualified

15 housing that complies with the following requirements:

16 (1) RENEWAL FOR REMAINING USEFUL LIFE OF

17 PROPERTY.—A new contract shall contain binding

18 commitments necessary to ensure that—

19 (A) the contract shall be renewed as pro20 vided in paragraph (5) upon expiration for the

21 entire remaining useful life of the qualified

22 project subject to the contract, subject only to

23 the availability of budget authority, the provi24 sions of this subtitle, and the provisions of the
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1 contract or law regarding termination of the

2 contract for cause; and

3 (B) renewal of the contract under para4 graph (5) shall not alter or affect the terms of

5 the contract.

6 (2) PROJECT-BASED ASSISTANCE.—A new con7 tract shall provide that the Secretary shall provide

8 project-based assistance under this subtitle for dwell9 ing units in the qualified project subject to the con10 tract based upon maximum monthly rents (including

11 utilities and all maintenance and management

12 charges) that the owner may receive for the dwelling

13 units.

14 (3) LOW-INCOME OCCUPANCY.—A new contract

15 shall provide that, during the term of the contract,

16 the owner shall make available for occupancy only by

17 families that (at the time of their initial occupancy)

18 are low-income families or very low-income families

19 (as the contract shall provide) the number of dwell20 ing units in the qualified project subject to the con21 tract for which assistance is provided under the ex22 piring contract.

23 (4) MAINTENANCE OF HOUSING.—The new con24 tract shall—
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1 (A) require the owner of the qualified

2 project to maintain the housing in compliance

3 with housing quality standards established by

4 the Secretary for housing assisted under section

5 8 of the United States Housing Act of 1937;

6 (B) provide that the provisions of section

7 8(h)(10) of such Act shall apply to the qualified

8 project, except that in the case of a qualified

9 project—

10 (i) any reference in such section to a

11 public housing agency shall be construed to

12 refer also to the Secretary; and

13 (ii) any reference in such section to

14 assistance under section 8 shall be con15 strued to refer to assistance under a new

16 contract; and

17 (C) provide that upon a request by the

18 owner, the Secretary shall provide for a review

19 of any determination of a serious noncompli20 ance of the project with such housing quality

21 standards, which review shall—

22 (i) determine whether (I) a serious

23 noncompliance has occurred, (II) the

24 owner was permitted a reasonable period

25 of time to correct the noncompliance, and
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1 (III) the owner has the responsibility to

2 correct the noncompliance;

3 (ii) be conducted by an officer or em4 ployee of the Department of Housing and

5 Urban Development who is not the officer

6 or employee who made the initial deter7 mination of the noncompliance and is not

8 subject to the supervision of such officer or

9 employee; and

10 (iii) include a written decision of the

11 finding pursuant to the review.

12 (5) CONTRACT TERM.—A new contract shall

13 have a term of 60 months and shall be renewable for

14 additional 60-month terms without limitation.

15 (6) SECTION 8 REQUIREMENTS.—A new con16 tract shall provide that the qualified project subject

17 to the contract shall be subject to the requirements

18 applicable to housing assisted under section 8(i) of

19 the United States Housing Act of 1937.

20 (7) CAPITAL NEEDS.—A new contract shall

21 contain such terms as the Secretary and the owner

22 agree to regarding conducting rehabilitation and re23 placement activities for the project and may provide

24 amounts to the owner for meeting immediate reha25 bilitation and replacement needs of the qualified
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1 project if the Secretary determines that providing

2 such amounts would be more cost effective to the

3 Secretary than financing such activities through in4 creased project debt.

5 (8) MAXIMUM MONTHLY RENTS.—A new con6 tract shall provide that the maximum monthly rents

7 for the project under the contract shall be the

8 amount determined under section 156 (or, in the

9 case of a new contract entered into under paragraph

10 (3) or (4) of section 153(b), the amount determined

11 under such paragraph) upon entering into the con12 tract, and shall be adjusted annually as provided

13 under such section (or paragraph (3) or (4) of sec14 tion 153(b), if applicable), except that—

15 (A) the maximum monthly rents shall be

16 redetermined in the manner provided under sec17 tions 153(b) and 156 upon each renewal of the

18 contract;

19 (B) the owner of the project may, at any

20 time, submit a written request to the Secretary

21 for a redetermination of the maximum monthly

22 rents for the project using the procedure under

23 section 156(b) and, after such request, the

24 rents shall be determined using such method for

25 the remainder of the term of the contract; and
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1 (C) in the case of a project that is subject

2 to a mortgage insured by the Secretary and for

3 which the maximum monthly rents under the

4 new contract are determined and adjusted

5 under section 156(a), if at any time the Sec6 retary determines that such rents are not suffi7 cient to provide for the sound operation of the

8 project while maintaining payment of debt serv9 ice for the project, the Secretary may require

10 redetermination of the maximum monthly rents

11 for the project using the procedure under sec12 tion 156(b) and, after such request, the rents

13 shall be determined using such method for the

14 remainder of the term of the contract and the

15 provisions of section 159(b) shall apply to the

16 project.

17 (9) CONSIDERATION OF TENANT CONCERNS.—

18 A new contract shall provide that the owner of the

19 qualified housing shall—

20 (A) establish and, in good faith, carry out

21 a procedure, acceptable to the tenants (includ22 ing any resident council) of the project, for ten23 ants to submit to the owner comments, ques24 tions, and requests regarding any issues con25 cerning the project (including the condition,
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1 management, and ownership of the project);

2 and

3 (B) make a good faith effort to respond to

4 such comments, questions, and requests within

5 a reasonable period of time.

6 (b) PROPERTY INSPECTIONS AND MANAGEMENT RE7 VIEWS REQUIRED BY SECRETARY.—The Secretary shall

8 conduct an inspection of the physical condition of each

9 qualified project for which a new contract is entered into

10 under this subtitle and shall conduct a review of the man11 agement of each such qualified project, not less than once

12 every 3 years. The Secretary shall also conduct such an

13 inspection or review of a project when requested by the

14 unit of general local government for the jurisdiction in

15 which the project is located or by a petition signed by not

16 less than 10 percent of the tenants of occupied units in

17 the project.

18 SEC. 156. MAXIMUM MONTHLY RENT UNDER NEW CON19 TRACTS.

20 (a) STATUS QUO RENT DETERMINATION.—

21 (1) PROCEDURE.—If the maximum monthly

22 rents under a new contract for a qualified project

23 are to be established under this subsection, the rents

24 shall be established at the amount equal to the maxi25 mum monthly rents under the expiring contract ex-
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1 isting at the time 24 months before the date of the

2 expiration of the contract (or an amount mutually

3 agreed to by the Secretary and the owner that is less

4 than such amount).

5 (2) RENT ADJUSTMENTS.—

6 (A) IN GENERAL.—The maximum monthly

7 rents for any qualified project for which the

8 rents under a new contract are to be deter9 mined under this subsection shall be adjusted

10 annually by applying the annual adjustment

11 factor established by the Secretary under sub12 paragraph (B) to the entire amount of the max13 imum monthly rents.

14 (B) ANNUAL ADJUSTMENT FACTOR.—The

15 annual adjustment factor shall—

16 (i) measure the annual change for a

17 market area in the prevailing unsubsidized

18 market rents for various sizes and types of

19 dwelling units and shall be based solely on

20 such measure;

21 (ii) provide for decreases and in22 creases in the maximum monthly rents;

23 and

24 (iii) not provide for adjustment in the

25 maximum monthly rents based on any fac-
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1 tor other than the factor described in

2 clause (i).

3 The Secretary shall establish market areas for

4 purposes of establishing annual adjustment fac5 tors under this paragraph.

6 (3) SERVICE COORDINATORS.—Notwithstanding

7 paragraph (1), the maximum monthly rents estab8 lished (and adjusted) under this subsection for a

9 qualified project shall be increased to the extent nec10 essary to provide for the total costs of a service coor11 dinator under section 161 for the project.

12 (b) BUDGET-BASED RENT DETERMINATION.—

13 (1) PROCEDURE.—If the maximum monthly

14 rents under a new contract for a qualified project

15 are to be established under this subsection, the rents

16 shall be established at such a level or levels that

17 would provide income sufficient to cover the sum of

18 the following actual and projected costs of operating

19 the project:

20 (A) DEBT SERVICE.—The debt service on

21 any federally-insured or assisted loans for the

22 qualified project or any other loans for the

23 project approved by the Secretary at the time

24 the loans were entered into or subsequently, ex-
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1 cept that the Secretary may provide that such

2 debt service shall not include—

3 (i) any debt service attributable to

4 any equity loan insured under section

5 241(f) of the National Housing Act or any

6 similar loan made for the purposes of liq7 uidating the equity of the owner in the

8 qualified project; and

9 (ii) if the Secretary requires refinanc10 ing of debt under section 159 and the

11 owner does not refinance as provided in

12 such section, any debt service relating to

13 such debt in excess of the amount that the

14 Secretary determines is appropriate under

15 prevailing market conditions at the time

16 such refinancing was required to occur.

17 (B) OPERATING EXPENSES.—The operat18 ing expenses for the qualified project, including

19 costs of measures to reduce or control crime,

20 and the total costs of a service coordinator

21 under section 161 for the project.

22 (C) RESERVES.—An amount for adequate

23 reserves for the qualified project, as determined

24 pursuant to a comprehensive needs assessment

25 for the project prepared and approved in ac-
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1 cordance with title IV of the Housing and Com2 munity Development Act of 1992 or in such

3 other manner as the Secretary may require.

4 (D) ALLOWANCE FOR LOSSES.—An allow5 ance for potential operating losses of the quali6 fied project caused by vacancies and failure to

7 collect rents, which shall be an amount equal to

8 5 percent of any rental income from the project

9 (including any amounts paid in rent for utili10 ties).

11 (E) DISTRIBUTION TO OWNER.—An allow12 ance for a distribution to the owner of the

13 qualified project, which shall be an amount for

14 each dwelling unit in the project equal to the

15 higher of—

16 (i) $350 per year; or

17 (ii) 6 percent of the fair market rental

18 for dwelling units of the applicable size

19 and type in the relevant metropolitan mar20 ket area.

21 (F) TENANT ORGANIZATION.—An amount

22 for technical assistance to the resident council

23 (if any) of the qualified project or for technical

24 assistance in organizing or operating a resident

25 council, which shall be an amount equal to $20
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1 per dwelling unit in the project per year. The

2 Secretary shall provide that such amounts shall

3 not be made available to the owner but shall be

4 accessible only by resident councils or by ten5 ants for establishment or operation of resident

6 councils.

7 (G) ALLOWANCE FOR UNIQUE COSTS.—An

8 allowance for unique costs specific to and char9 acteristic of qualified housing or other housing

10 for low-income families receiving project-based

11 assistance from the Secretary, in the amount

12 agreed to by the Secretary and the owner.

13 (H) ALLOWANCE FOR HIGH-RENT

14 AREAS.—If the Secretary determines that the

15 prevailing rents in the market area in which a

16 qualified project is located exceed the fair mar17 ket rentals for dwelling units of the applicable

18 sizes and types of dwelling units in the relevant

19 metropolitan market area—

20 (i) an allowance may be provided (at

21 the discretion of the Secretary) in an

22 amount necessary to provide maximum

23 monthly rents under this subsection in an

24 amount equal to the prevailing market

25 rents in the area; and
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1 (ii) an allowance in the amount re2 ferred to in clause (i) shall be provided if

3 the Secretary determines that there is a

4 lack of sufficient housing in the market

5 area in which the project is located that is

6 affordable to low-income families.

7 (2) RENT ADJUSTMENTS.—

8 (A) IN GENERAL.—The maximum monthly

9 rents for any qualified project for which the

10 rents under a new contract are to be deter11 mined under this subsection shall be adjusted

12 annually by applying the operating cost adjust13 ment factor established by the Secretary under

14 subparagraph (B) to the entire amount of the

15 maximum monthly rents.

16 (B) OPERATING COST ADJUSTMENT FAC17 TOR.—The operating cost adjustment factor for

18 any 12-month period shall be equal to—

19 (i) the percent increase or decrease, if

20 any, in the Consumer Price Index pub21 lished for the 6th month preceding the be22 ginning of such period over such index

23 published for the 18th month preceding

such period, adjusted to the nearest 1 24 ⁄10 of

25 1 percent; or
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1 (ii) any other equivalent measure of

2 change in operating costs determined by

3 the Secretary.

4 For purposes of this subparagraph, the term

5 ‘‘Consumer Price Index’’ means the Consumer

6 Price Index for All Urban Consumers, United

7 States City Average, Housing Component, pre8 pared by the Bureau of Labor Statistics of the

9 Department of Labor.

10 (C) EXCESSIVE ADJUSTMENTS.—The Sec11 retary may require the owner of a qualified

12 project for which a new contract has been pro13 vided to submit a proposal in the manner pro14 vided under paragraph (3) for redetermination

15 of maximum monthly rents for the project if—

16 (i) not less than 2 rent adjustments

17 have been made pursuant to subparagraph

18 (A) for the project;

19 (ii) an intervening redetermination of

20 maximum monthly rents for the project

21 pursuant to paragraph (1) has not oc22 curred; and

23 (iii) the Secretary determines that the

24 rents resulting from the rent adjustments

25 are materially in excess of the rents nec-
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1 essary to support the costs for the project

2 described in paragraph (1).

3 If pursuant to such a redetermination the Sec4 retary determines that the rents for the project

5 are greater than the amount described in clause

6 (iii), the Secretary may reduce the maximum

7 monthly rents for the project to the amount de8 scribed in clause (iii), effective on the first day

9 of the month following written notification by

10 the Secretary to the owner of such new rents.

11 (3) TIMING.—If the Secretary requests an

12 owner of a qualified project or a project for which

13 a new contract is to be provided to submit a pro14 posal for maximum monthly rents based on costs de15 scribed in paragraph (1) and the owner fails to sub16 mit such a proposal during the 90-day period begin17 ning upon receipt of such request, the Secretary may

18 establish the maximum monthly rents for the project

19 based on such information as is available to the Sec20 retary from the owner’s most recent audited finan21 cial statements, without the agreement of the owner.

22 (4) ADDITIONAL INFORMATION FROM

23 OWNER.—The owner of a qualified project (including

24 a project for which a new contract has been pro25 vided) may, at any time, submit to the Secretary in-
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1 formation regarding prevailing rent levels for com2 parable dwelling units in the relevant metropolitan

3 market area and the Secretary shall consider such

4 information in making any determinations or agree5 ments under this subsection regarding the project.

6 SEC. 157. ACTIONS IN CASES OF FAILURE TO ENTER INTO

7 NEW CONTRACT.

8 (a) NOTICE.—If—

9 (1) the owner of a qualified project indicates, in

10 the notice required under section 152(b), an inten11 tion not to enter into a new contract,

12 (2) the Secretary and the owner fail to agree to

13 enter into a new contract after a reasonable period

14 of negotiation, or

15 (3) the Secretary refuses to enter into a new

16 contract with the owner pursuant to section 154,

17 the Secretary shall provide notice containing the informa18 tion under subsection (b) to the owner, the chief executive

19 officer of the State or unit of general local government

20 for the jurisdiction within which the project is located, any

21 mortgagee of the project, the tenants of the project (in22 cluding any resident council for the project), and such

23 other individuals or entities as the Secretary considers ap24 propriate.
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1 (b) CONTENTS OF NOTICE.—Notice under subsection

2 (a) shall identify the qualified project, state the intention

3 of the Secretary to enter into a new contract for the

4 project with an owner of the project acceptable to the Sec5 retary, state that the Secretary may take either of the ac6 tions authorized under subsection (c) with respect to the

7 project, and propose maximum monthly rents for the

8 project subject to the requirements of sections 153(b) and

9 156.

10 (c) ATTEMPTED SALE OF PROJECT.—After providing

11 notice under subsection (b) for a qualified project—

12 (1) the Secretary shall negotiate with the owner

13 and other interested parties to develop a plan for

14 sale of the project in a timely manner to a new

15 owner who agrees to enter into a new contract with

16 the Secretary and who may be a nonprofit or for17 profit entity, a State or local governmental entity, a

18 tenant (or group of tenants) or a resident council;

19 a new contract under this paragraph may be pro20 vided pursuant to the loan management program

21 under section 8(q)(2) of the United States Housing

22 Act of 1937 or a contract through a public housing

23 agency for project-based assistance under section

24 8(i) of such Act; and
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1 (2) notwithstanding paragraph (1), the Sec2 retary may acquire the qualified project by con3 demnation, under judicial process, pursuant to the

4 first section of the Act of August 1, 1888 (Chapter

5 728, 25 Stat. 357; 40 U.S.C. 257).

6 (d) FAILURE TO SELL PROJECT.—

7 (1) TRANSFER OF PROJECT-BASED ASSISTANCE

8 TO OTHER HOUSING.—If, after providing notice

9 under subsection (b) for a qualified project and

10 making reasonable efforts under subsection (c)(1)

11 the Secretary fails to enter into a new contract for

12 the project (and determines that action under sub13 section (c)(2) is not appropriate), the Secretary

14 shall, subject only to the availability of budget au15 thority and the absence of qualified requests for

16 such assistance, provide project-based rental assist17 ance for at least the same number of dwelling units

18 in housing located within the same market area as

19 the qualified project as were assisted under the ex20 piring contract for the project. Tenants of the quali21 fied project shall be offered initial occupancy in

22 dwelling units assisted pursuant to this paragraph.

23 (2) CONSULTATION.—In providing project24 based assistance under this subsection, the Secretary

25 shall consult with nonprofit and for-profit entities,
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1 State and local governmental entities, and tenants

2 and any resident council of the project, regarding

3 acquisition and operation of housing to be assisted

4 under this subsection.

5 (e) ASSISTANCE FOR PROJECT TENANTS.—

6 (1) RIGHT TO RECEIVE ASSISTANCE.—If, in the

7 notice required by section 152(b), the owner indi8 cates a preference not to enter into a new contract

9 or the Secretary fails to enter into a new contract

10 for the project, the Secretary shall provide assist11 ance under paragraphs (2) and (3), subject only to

12 the availability of budget authority, for each family

13 who on the date occurring 12 months before the ex14 piration of the expiring contract resides in a dwell15 ing unit in the project that is assisted under the ex16 piring contract.

17 (2) TYPE OF ASSISTANCE.—Assistance required

18 under this paragraph shall be provided, as deter19 mined by the Secretary, in one of the following

20 forms:

21 (A) TENANT-BASED ASSISTANCE.—Assist22 ance may be provided as tenant-based rental as23 sistance under the provisions of section 8(b) of

24 the United States Housing Act of 1937, as in

25 effect on June 1, 1994, except that in providing
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1 such assistance the Secretary shall increase the

2 maximum monthly rental amount to the extent

3 necessary to permit families remain in the

4 dwelling unit they occupy in the qualified

5 project or to obtain a comparable dwelling unit

6 in the same market area.

7 (B) OCCUPANCY IN A UNIT RECEIVING

8 PROJECT-BASED ASSISTANCE.—The family may

9 be offered occupancy of an available dwelling

10 unit that is assisted under a contract pursuant

11 to subsection (c)(1) or (d).

12 (3) RELOCATION ASSISTANCE.—Assistance re13 quired under this section is assistance to the tenant

14 of a qualified project in the amount of the total cost

15 of relocating to a unit assisted under paragraph (2).

16 SEC. 158. CONTRACT EXTENSION.

17 Subject to the availability of budget authority, the

18 Secretary may extend any expiring contract in force on

19 the date of enactment of this Act, under identical terms

20 and conditions, for not more than 24 months if the Sec21 retary determines that such extension is necessary to pro22 tect tenants of the qualified project subject to the contract

23 or the General Insurance Fund established under section

24 519 of the National Housing Act, except that—
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1 (1) the authority under this section may be ex2 ercised only once for any contract or qualified

3 project; and

4 (2) such authority may not be exercised for a

5 qualified project for which the owner has provided

6 timely notification under section 152(b) indicating

7 an intention not to enter into a new contract for the

8 project, unless the owner expressly agrees to the ex9 tension or the Secretary is taking action pursuant to

10 section 152(e)(5) or 153(f).

11 SEC. 159. FINANCING AND RESTRUCTURING UNDERLYING

12 DEBT AND TREATMENT OF RESIDUAL RE13 CEIPTS.

14 (a) IN GENERAL.—Before entering into a new con15 tract with a present or future owner of a qualified project,

16 the Secretary shall encourage and, subject to the excep17 tions in subsection (d), may require—

18 (1) the restructuring of debt if the costs to the

19 Federal Government of such restructuring are less

20 than the costs incurred by the Federal Government

21 under a contract for assistance under section 8 of

22 the United States Housing Act of 1937 at the

23 project’s current debt level; and
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1 (2) the refinancing of all debt that is financed

2 at a rate 250 basis points in excess of prevailing

3 market rates for debt with a similar maturity.

4 Any project refinancing or debt restructuring shall be ac5 companied by a corresponding reduction in the maximum

6 monthly rents for the project. The authority of the Sec7 retary under this section to restructure or refinance mort8 gages shall be effective for any fiscal year only to such

9 extent or in such amounts as are or have been provided

10 for such costs in appropriation Acts for such fiscal year.

11 (b) FHA-INSURED PROJECTS.—Subject to the excep12 tions set forth in subsection (d), the Secretary shall re13 quire an owner of a project subject to a mortgage insured

14 by the Secretary which is to be assisted under a new con15 tract to certify that any debt that, in the determination

16 of the Secretary, meets the conditions of paragraph (1)

17 or (2) of subsection (a) will be restructured or refinanced,

18 as applicable.

19 (c) STATE-FINANCED PROJECTS.—The Secretary

20 shall establish procedures to inform State agencies that

21 insure or finance mortgages of the provisions of this sub22 title, and shall encourage such agencies to refinance or

23 otherwise restructure debt which meets the conditions of

24 paragraph (1) or (2) of subsection (a).
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1 (d) EXCEPTIONS.—The Secretary shall not require

2 the refinancing or debt restructuring of any project, if—

3 (1) the project was financed through obligations

4 issued by a State or local housing agency or the

5 Government National Mortgage Association and

6 such refinancing or debt restructuring is inconsistent

7 with applicable law or agreements governing such fi8 nancing; and

9 (2) in the Secretary’s determination, the refi10 nancing will not result in significant savings to the

11 Department of Housing and Urban Development or

12 to the mortgagor.

13 (e) DISCRETIONARY ASSISTANCE.—To facilitate re14 newal consistent with this section and section 156(b), the

15 Secretary may, from amounts appropriated under this

16 subtitle—

17 (1) pay the owner’s nonmortgageable trans18 action costs;

19 (2) provide the State insuring agency or the

20 mortgagee with an equitable share of the savings re21 captured from the refinancing;

22 (3) apply a share of the savings recaptured

23 from the refinancing to the project’s reserves or cap24 ital expenses;
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1 (4) bifurcate the note to leave a first note serv2 iceable within rents reflective of the local market;

3 and

4 (5) assist in financing a project’s rehabilitation

5 needs through the provision of up-front grants

6 from—

7 (A) residual receipts distributed to the Sec8 retary;

9 (B) the budget authority provided for in10 creases in new contracts to pay for rehabilita11 tion, if the Secretary determines that the provi12 sion of such grants in addition to rental assist13 ance under section 8 of the United States

14 Housing Act of 1937 would be cost-effective;

15 and

16 (C) savings resulting from refinancing or

17 otherwise restructuring the debt.

18 (f) RESIDUAL RECEIPTS.—

19 (1) IN GENERAL.—Residual receipts distributed

20 to the Secretary shall be retained by the Secretary

21 for use under this subtitle.

22 (2) EXPEDITED ACQUISITION.—The Secretary

23 may expedite the acquisition of residual receipts for

24 a qualified project by entering into an agreement

25 with the owner of the project that provides—
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1 (A) for the owner to retain a portion of

2 any residual receipts accumulated for the

3 project, which shall not to exceed 15 percent of

4 such accumulated receipts;

5 (B) for the Secretary to acquire the por6 tion of the accumulated residual receipts for the

7 project not retained by the owner not less than

8 12 months before the expiration of the expiring

9 contract for the project, unless the Secretary

10 provides otherwise; and

11 (C) for any residual receipts accumulated

12 for the project after the date of the acquisition

13 under subparagraph (B) to be distributed to the

14 owner and the Secretary, and to be acquired pe15 riodically by the Secretary, in the same percent16 ages as the residual receipts for the project are

17 distributed pursuant to subparagraphs (A) and

18 (B).

19 SEC. 160. RETENTION OF PROGRAM SAVINGS BY SEC20 RETARY.

21 Any savings achieved through implementation of the

22 provisions of this Act, except for such savings made avail23 able to State or local housing agencies pursuant to section

24 159, shall be retained by the Secretary to increase afford25 able housing opportunities, in such manner as may be de-
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1 termined by statute, or as may be determined by the Sec2 retary.

3 SEC. 161. SUPPORTIVE SERVICES AND TECHNICAL ASSIST4 ANCE.

5 (a) PROVISION OF SERVICE COORDINATOR.—

6 (1) REQUIREMENT.—Each owner of a qualified

7 project or a project for which a new contract has

8 been provided shall provide, to the extent amounts

9 are available pursuant to paragraph (2) or another

10 provision of this subtitle, that the project is served

11 (on a full- or part-time basis in a manner approved

12 by the Secretary) by a service coordinator under sec13 tion 671 of the Housing and Community Develop14 ment Act of 1992. The preceding sentence shall

15 apply only after the expiration of the 270-day period

16 beginning on the date of the enactment of this Act.

17 (2) PAYMENT OF COSTS.—Notwithstanding any

18 other provision of law, the salary and other costs as19 sociated with employing a service coordinator shall

20 be considered an eligible project expense for a quali21 fied project which may be fully funded under the ex22 piring contract, as provided by the Secretary.

23 (b) TECHNICAL ASSISTANCE.—

24 (1) REQUIRED ASSISTANCE.—Using a portion

25 of any amounts in an account for residual receipts
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1 established for a qualified project and any amounts

2 made available for new contracts under this subtitle,

3 the Secretary shall (subject to the availability of

4 such amounts) provide for technical assistance for

5 tenants of the project (including any resident coun6 cils), nonprofit organizations, nonprofit developers of

7 affordable housing, and State and local govern8 mental agencies to the extent necessary to—

9 (A) develop the capacity and ability of such

10 entities to carry out activities pursuant to this

11 subtitle; and

12 (B) assist such entities in preparing sub13 missions, proposals, and such other documents

14 and entering into contracts, agreements, and

15 other arrangements involved in such activities.

16 (2) USE OF EXISTING PROGRAM FOR DELIV17 ERY.—The Secretary may provide technical assist18 ance under this subsection with respect to qualified

19 projects through the program and procedures estab20 lished under subtitle C of the Low-Income Housing

21 Preservation and Resident Homeownership Act of

22 1990 (as added by section 312 of the Housing and

23 Community Development Act of 1992) for technical

24 assistance with respect to eligible low-income hous25 ing.
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1 SEC. 162. DELEGATION OF AUTHORITY.

2 The Secretary may delegate the authority of the Sec3 retary under this subtitle, as the Secretary considers ap4 propriate, to officials of States and units of general local

5 government, who may also act as contract administrators

6 under applicable law.

7 SEC. 163. DEFINITIONS.

8 For purposes of this subtitle—

9 (1) the term ‘‘expiring contract’’ means any

10 contract for assistance under section 8 of the United

11 States Housing Act of 1937 pursuant to the author12 ity referred to in paragraph (7)(A) of this sub13 section;

14 (2) the term ‘‘fair market rental’’ means the

15 fair market rental established pursuant to the au16 thority under—

17 (A) section 8(c)(1) of the United States

18 Housing Act of 1937, as such section existed

19 before the date of the enactment of this Act; or

20 (B) section 8(e) of the United States

21 Housing Act of 1937, as in effect after the date

22 of the enactment of this Act;

23 (3) the terms ‘‘low-income family’’ and ‘‘very

24 low-income family’’ have the meanings given the

25 terms in section 3 of the United States Housing Act

26 of 1937;
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1 (4) the term ‘‘maximum monthly rents’’ means,

2 with respect to a new contract for a qualified

3 project, the maximum monthly rent that the owner

4 is entitled to receive for dwelling units in the project

5 assisted under the new contract;

6 (5) the term ‘‘new contract’’ means—

7 (A) a contract pursuant to this subtitle to

8 provide project-based assistance for a qualified

9 project; and

10 (B) a contract pursuant to the provisions

11 of subsection (d) or (e)(2)(B) of section 157 or

12 section 153(b)(5);

13 (6) the term ‘‘owner’’ includes the current or

14 subsequent owner or owners of a qualified project;

15 (7) the terms ‘‘qualified project’’ and ‘‘project’’

16 mean a multifamily housing project that—

17 (A) was constructed or substantially reha18 bilitated pursuant to assistance provided under

19 section 8(b)(2) of the United States Housing

20 Act of 1937, as such section existed before No21 vember 30, 1983; and

22 (B) is assisted under an expiring contract;

23 (8) the term ‘‘relevant metropolitan market

24 area’’ means, with respect to a qualified project, a

25 standard metropolitan area established by the Direc-
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1 tor of the Office of Management and Budget or a

2 portion of such an area determined appropriate by

3 the Secretary for purposes of this subtitle, in which

4 a project is located or, in the case of a project not

5 located in a standard metropolitan area, which is the

6 nearest such area to the project;

7 (9) the term ‘‘remaining useful life’’ means,

8 with respect to a qualified project, the period during

9 which the physical characteristics of the project re10 main in a condition suitable for occupancy, assuming

11 normal maintenance and repairs are made and

12 major systems and capital components are replaced

13 as becomes necessary, as determined on the record

14 after opportunity for a hearing, in accordance with

15 standards for determining when the useful life of an

16 eligible low-income housing project has expired that

17 are established by the Secretary by rule under sec18 tion 553 of title 5, United States Code;

19 (10) the term ‘‘resident council’’ means any

20 democratically operated organization of tenants of a

21 qualified project; and

22 (11) the term ‘‘Secretary’’ means the Secretary

23 of Housing and Urban Development.
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1 SEC. 164. REGULATIONS.

2 The Secretary shall issue any final regulations nec3 essary to carry out this subtitle, which shall take effect

4 not later than 6 months after the date of the enactment

5 of this Act. The regulations shall be issued after notice

6 and opportunity for public comment in accordance with

7 the procedure under section 553 of title 5, United States

8 Code, applicable to substantive rules (notwithstanding

9 subsections (a)(2), (b)(B), and (d)(3) of such section).

10 SEC. 165. AUTHORIZATION OF APPROPRIATIONS.

11 There are authorized to be appropriated such sums

12 as may be necessary to carry out the provisions of this

13 subtitle for which amounts are not provided under section

14 5(c) of the United States Housing Act of 1937.

15 Subtitle E—Homeownership

16 Programs

17 SEC. 171. HOPE HOMEOWNERSHIP PROGRAMS.

18 (a) AUTHORIZATION OF APPROPRIATIONS AND

19 TECHNICAL ASSISTANCE.—

20 (1) IN GENERAL.—Section 402 of the Cran21 ston-Gonzalez National Affordable Housing Act (42

22 U.S.C. 12870) is amended by striking subsections

23 (a) and (b) and inserting the following new sub24 section:

25 ‘‘(a) HOMEOWNERSHIP PROGRAMS.—There are au26 thorized to be appropriated for grants under this title
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1 $100,000,000 for fiscal year 1995 and $100,000,000 for

2 fiscal year 1996, which shall be available for activities au3 thorized under subtitles B and C. Such amounts shall also

4 be available for implementation grants under title III of

5 the United States Housing Act of 1937, except that not

6 more than $25,000,000 may be used for the purpose

7 under this sentence and such amounts may only be used

8 for implementation grants to applicants who have success9 fully completed planning grants under such title. Any

10 amounts appropriated pursuant to this subsection shall re11 main available until expended.’’.

12 (b) HOPE II MATCHING REQUIREMENTS.—Section

13 423(c)(1) of the Cranston-Gonzalez National Affordable

14 Housing Act (42 U.S.C. 12873(c)) is amended by striking

15 ‘‘33 percent’’ and inserting ‘‘25 percent’’.

16 (c) ELIGIBILITY UNDER HOPE III OF HOMES ON

17 LEASED LAND OWNED BY COMMUNITY LAND TRUSTS.—

18 Section 446(4) of the Cranston-Gonzalez National Afford19 able Housing Act (42 U.S.C. 12896(4)) is amended—

20 (1) by inserting ‘‘(A)’’ before ‘‘owned’’; and

21 (2) by inserting before the period at the end the

22 following: ‘‘, or (B) located on leased land owned by

23 a community land trust (as such term is defined in

24 section 233 of the HOME Investment Partnerships

25 Act)’’.
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1 SEC. 172. NATIONAL HOMEOWNERSHIP FUND.

2 Subtitle A of title III of the Cranston-Gonzalez Na3 tional Affordable Housing Act (42 U.S.C. 12701 note) is

4 amended to read as follows:

5 ‘‘Subtitle A—National

6 Homeownership Fund

7 ‘‘SEC. 301. SHORT TITLE.

8 ‘‘This subtitle may be cited as the ‘National Home9 ownership Fund Act’.

10 ‘‘SEC. 302. AUTHORITY.

11 ‘‘The Secretary of Housing and Urban Development

12 may make grants under this subtitle to States (including

13 State housing finance agencies), local housing finance

14 agencies, and nonprofit housing intermediaries to provide

15 assistance, in accordance with the provisions of this sub16 title, for the acquisition of principal residences for first17 time homebuyers (including homebuyers buying shares in

18 limited equity cooperatives).

19 ‘‘SEC. 303. ELIGIBLE ASSISTANCE.

20 ‘‘A grantee may use amounts received under this sub21 title only to provide assistance to first-time homebuyers

22 in the following manners:

23 ‘‘(1) DOWNPAYMENT ASSISTANCE.—Assistance

24 payments to provide amounts for the downpayment

25 (including closing costs and other costs payable at
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1 the time of closing) on a mortgage for the home2 buyer.

3 ‘‘(2) SECOND MORTGAGE ASSISTANCE.—Assist4 ance payments to provide loans that have such terms

5 for payment of interest and principal as may be de6 termined by the grantee.

7 ‘‘(3) CAPITALIZATION OF REVOLVING LOAN

8 FUNDS.—To establish revolving loan funds (or to

9 make grants to public organizations or agencies to

10 establish such funds) to provide homeownership as11 sistance to eligible first-time homebuyers in accord12 ance with the provisions of this subtitle. Any grantee

13 under this subtitle (and any subgrantee of such a

14 grantee) shall provide an equal amount of local in15 vestment for such revolving loan fund and any pro16 ceeds or repayments from loans made under this

17 paragraph shall be returned to the revolving loan

18 fund established under this paragraph to be used for

19 purposes related to this section.

20 ‘‘(4) INTEREST RATE BUYDOWNS.—Assistance

21 payments so that the rate of interest payable on a

22 mortgage by the homebuyer does not exceed 6 per23 cent.
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1 ‘‘SEC. 304. ELIGIBILITY REQUIREMENTS.

2 ‘‘(a) HOMEBUYER.—Assistance may be provided only

3 to homebuyers meeting the following requirements:

4 ‘‘(1) FIRST-TIME HOMEBUYER.—The home5 buyer is an individual who—

6 ‘‘(A)(i) (and whose spouse) has had no

7 ownership in a principal residence during the 3-

8 year period ending on the date of purchase of

9 the property with respect to which assistance

10 payments are made under this subtitle;

11 ‘‘(ii) is a displaced homemaker who, except

12 for owning a home with his or her spouse or re13 siding in a home owned by the spouse, meets

14 the requirements of clause (i); or

15 ‘‘(iii) is a single parent who, except for

16 owning a home with his or her spouse or resid17 ing in a home owned by the spouse while mar18 ried, meets the requirements of clause (i); and

19 ‘‘(B) meets the requirements of subpara20 graph (A)(i), (ii), or (iii), except for owning, as

21 a principal residence, a dwelling unit whose

22 structure is not permanently affixed to a per23 manent foundation in accordance with local or

24 other applicable regulations.

25 ‘‘(2) MAXIMUM INCOME OF HOMEBUYER.—The

26 aggregate annual income of the homebuyer and the
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1 members of the family of the homebuyer residing

2 with the homebuyer, for the 12-month period preced3 ing the date of the application of the homebuyer for

4 assistance under this subtitle, does not exceed 115

5 percent of the median income for a family of 4 per6 sons (adjusted by family size) in the applicable met7 ropolitan statistical area (or such other area that the

8 Secretary determines for areas outside of metropoli9 tan statistical areas). The Secretary shall provide for

10 certification of such income for purposes of initial

11 eligibility for assistance payments under this sub12 title.

13 ‘‘(b) MORTGAGE.—Assistance may be provided only

14 for mortgages meeting the following requirements:

15 ‘‘(1) PRINCIPAL RESIDENCE.—The property

16 subject to the mortgage is a single-family residence

17 or unit in a cooperative (including any manufactured

18 home park owned by residents or owned by nonprofit

19 organizations for future ownership by residents) or

20 condominium, or a single family residence located on

21 leased land owned by a community land trust, and

22 is the principal residence of the homebuyer.

23 ‘‘(2) MAXIMUM MORTGAGE AMOUNT.—The

24 principal obligation of the first mortgage and any

25 second mortgage assistance provided under this sub-
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1 title does not exceed the principal amount that could

2 be insured under section 203(b) of the National

3 Housing Act with respect to a property having the

4 same number of dwelling units.

5 ‘‘(c) MINIMUM DOWNPAYMENT.—For first-time

6 homebuyers to receive downpayment assistance under sec7 tion 303(a)(1), the homebuyer shall have paid not less

8 than 1 percent of the cost of acquisition of the property

9 (excluding any mortgage insurance premiums paid at the

10 time the mortgage is insured), as such cost is estimated

11 by the Secretary.

12 ‘‘SEC. 305. COUNSELING REQUIREMENTS.

13 ‘‘Each grantee under this subtitle shall ensure that

14 each homebuyer receiving assistance under this subtitle

15 from the grantee (or any subgrantee of such grantee) shall

16 be provided prepurchase and postpurchase homeownership

17 counseling from individuals certified by the Secretary

18 under section 106(e) of the Housing and Urban Develop19 ment Act of 1968.

20 ‘‘SEC. 306. ALLOCATION OF GRANT AMOUNTS.

21 ‘‘(a) IN GENERAL.—The Secretary may make a grant

22 under this subtitle only to a State (including a State hous23 ing finance agency), local housing finance agency, or non24 profit housing intermediary that submits to the Secretary

25 an application under this section that is approved by the
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1 Secretary. Applications shall be made in such form and

2 in accordance with such procedures as the Secretary shall

3 establish.

4 ‘‘(b) MINIMUM REQUIREMENTS.—An application

5 under this section shall contain a plan that describes how

6 the applicant will achieve the objectives of this subtitle.

7 The application shall include—

8 ‘‘(1) a description of the geographic area, in9 cluding the revitalization area included, to be cov10 ered by the program to provide assistance under this

11 subtitle;

12 ‘‘(2) the characteristics of the households to be

13 served by the program;

14 ‘‘(3) a description and evidence of the commit15 ment of other public and private resources to be

16 made available in the revitalization area and other

17 areas in which homebuyers receive assistance under

18 this subtitle;

19 ‘‘(4) a description of any secondary market and

20 private mortgage insurance involvement and commit21 ment in connection with assistance under this sub22 title;

23 ‘‘(5) a description of how prepurchase and

24 postpurchase counseling will be provided to home25 buyers assisted under this subtitle;
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1 ‘‘(6) a description of any restrictions on resale

2 and profits;

3 ‘‘(7) a description of existing affordable housing

4 programs and resources available to undertake reha5 bilitation of properties when needed;

6 ‘‘(8) a description of the process for award and

7 disbursement of assistance to homebuyers; and

8 ‘‘(9) a description of the history of the appli9 cant in undertaking similar projects.

10 ‘‘(c) SELECTION.—The Secretary shall allocate

11 amounts available in any fiscal year for assistance under

12 this subtitle to States (including State housing finance

13 agencies), local housing finance agencies, or nonprofit

14 housing intermediaries for homebuyers through a national

15 competition in accordance with criteria established by the

16 Secretary. The criteria shall include the extent to which

17 the applicant has experience in providing homeownership

18 opportunities for low- and moderate-income households.

19 ‘‘(d) TARGETING FOR REVITALIZATION AREAS.—

20 Each grantee under this subtitle shall use not more than

21 50 percent of any amounts received under this subtitle for

22 assistance under section 303(a) for homebuyers purchas23 ing residences in revitalization areas using mortgages in24 sured under section 203(b) of the National Housing Act.
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1 ‘‘SEC. 307. REPORT.

2 ‘‘Not later than 18 months after the date of the issu3 ance of final regulations pursuant to section 310, the Sec4 retary shall submit to the Congress a report stating the

5 amount of loans made in revitalization areas and in other

6 areas, the amount of loans insured under the National

7 Housing Act made in connection with assistance under

8 this section and the amount of privately insured loans

9 made in connection with such assistance, and an analysis

10 of the effectiveness of such assistance in assisting first11 time homebuyers.

12 ‘‘SEC. 308. DEFINITIONS.

13 ‘‘For purposes of this subtitle:

14 ‘‘(1) ASSISTANCE.—The term ‘assistance’

15 means—

16 ‘‘(A) any downpayment assistance provided

17 under section 303(1);

18 ‘‘(B) any second mortgage loan provided

19 under section 303(2);

20 ‘‘(C) any loan provided from a revolving

21 fund established under section 303(3); and

22 ‘‘(D) any payment for buydown of an in23 terest rate provided under section 303(4).

24 ‘‘(2) COMMUNITY LAND TRUST.—The term

25 ‘community land trust’ has the meaning given the
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1 term in section 233 of the Cranston-Gonzalez Na2 tional Affordable Housing Act.

3 ‘‘(3) DISPLACED HOMEMAKER.—The term ‘dis4 placed homemaker’ means an individual who—

5 ‘‘(A) is an adult;

6 ‘‘(B) has not worked full-time, full-year in

7 the labor force for a number of years, but has

8 during such years, worked primarily without re9 muneration to care for the home and family;

10 and

11 ‘‘(C) is unemployed or underemployed and

12 is experiencing difficulty in obtaining or up13 grading employment.

14 ‘‘(4) REVITALIZATION AREA.—The term ‘revi15 talization area’ means—

16 ‘‘(A) an empowerment zone or enterprise

17 community approved under Subchapter U of

18 Chapter 1 of the Internal Revenue Code of

19 1986, or an equivalent State-approved enter20 prise zone; and

21 ‘‘(B) a neighborhood that, in the deter22 mination of the Secretary, is targeted by a unit

23 of general local government for revitalization

24 using coordinated affordable housing programs

25 and enhanced supportive services.
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1 ‘‘(5) NONPROFIT HOUSING INTERMEDIARY.—

2 The term ‘nonprofit housing intermediary’ means a

3 nonprofit organization that the Secretary determines

4 has among its principal purposes activities described

5 in clauses (1) and (2) of section 802(a) of the Hous6 ing and Community Development Act of 1974.

7 ‘‘(6) SINGLE PARENT.—The term ‘single par8 ent’ means an individual who—

9 ‘‘(A) is unmarried or legally separated

10 from a spouse; and

11 ‘‘(B)(i) has 1 or more minor children for

12 whom the individual has custody or joint cus13 tody; or

14 ‘‘(ii) is pregnant.

15 ‘‘(7) SECRETARY.—The term ‘Secretary’ means

16 the Secretary of Housing and Urban Development.

17 ‘‘(8) STATE.—The term ‘State’ means the

18 States of the United States, the District of Colum19 bia, the Commonwealth of Puerto Rico, the Com20 monwealth of the Northern Mariana Islands, Guam,

21 the Virgin Islands, American Samoa, and any other

22 territory or possession of the United States.

23 ‘‘(9) STATE HOUSING FINANCE AGENCY.—The

24 term ‘State housing finance agency’ has the meaning
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1 given the term in section 802(b) of the Housing and

2 Community Development Act of 1974.

3 ‘‘(10) LOCAL HOUSING FINANCE AGENCY.—The

4 term ‘local housing finance agency’ means a housing

5 finance agency of any city, county, town, township,

6 parish, village, or other general purpose subdivision

7 of a State, or of any combination of such political

8 subdivisions recognized by the Secretary, or any

9 other agency or instrumentality of such an entity

10 that carries out activities described in section 303.

11 ‘‘SEC. 309. AUTHORIZATION OF APPROPRIATIONS.

12 ‘‘There are authorized to be appropriated for assist13 ance under this subtitle $115,000,000 for fiscal year 1995

14 and $215,000,000 for fiscal year 1996. Any amount ap15 propriated under this section shall remain available until

16 expended.

17 ‘‘SEC. 310. REGULATIONS.

18 ‘‘Not later than 10 days after the date of the enact19 ment of the Housing and Community Development Act

20 of 1994, the Secretary shall issue an interim rule to imple21 ment this subtitle. The Secretary shall issue final regula22 tions necessary to implement this subtitle not later than

23 90 days after issuance of such interim rule.’’.
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1 SEC. 173. SECTION 235 MORTGAGE REFINANCING.

2 Section 235(r) of the National Housing Act (12

3 U.S.C. 1715z(r)) is amended—

4 (1) in paragraph (2)(C), by inserting after ‘‘re5 financed’’ the following: ‘‘, plus the costs incurred in

6 connection with the refinancing as described in para7 graph (4)(B) to the extent that the amount for those

8 costs is not otherwise included in the interest rate

9 as permitted by subparagraph (E) or paid by the

10 Secretary as authorized by paragraph (4)(B)’’;

11 (2) in paragraph (4)—

12 (A) in the matter preceding subparagraph

13 (A), by inserting after ‘‘otherwise)’’ the follow14 ing: ‘‘and the mortgagee (with respect to the

15 amount described in subparagraph (A))’’; and

16 (B) in subparagraph (A), by inserting after

17 ‘‘mortgagor’’ the following: ‘‘and the mortga18 gee’’; and

19 (3) by amending paragraph (5) to read as fol20 lows:

21 ‘‘(5) The Secretary shall use amounts of budget au22 thority recaptured from assistance payments contracts re23 lating to mortgages that are being refinanced for assist24 ance payments contracts with respect to mortgages in25 sured under this subsection. The Secretary may also make

26 such recaptured amounts available for incentives under
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1 paragraph (4)(A) and the costs incurred in connection

2 with the refinancing under paragraph (4)(B). For pur3 poses of subsection (c)(3)(A), the amount of recaptured

4 budget authority that the Secretary commits for assist5 ance payments contracts relating to mortgages insured

6 under this subsection and for amounts paid under para7 graph (4) shall not be construed as unused.’’.

8 SEC. 174. HOUSING COUNSELING FOR HOMEOWNERSHIP

9 AND RENTAL HOUSING CHOICE.

10 (a) EXTENSIONS OF PROGRAMS.—

11 (1) EMERGENCY HOMEOWNERSHIP COUNSEL12 ING.—Section 106(c)(9) of the Housing and Urban

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

14 amended by striking ‘‘September 30, 1994’’ and in15 serting ‘‘September 30, 1996’’.

16 (2) PREPURCHASE AND FORECLOSURE-PREVEN17 TION COUNSELING DEMONSTRATION.—Section

18 106(d)(13) of the Housing and Urban Development

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

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

21 year 1996’’.

22 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

23 106 of the Housing and Urban Development Act of 1968

24 (12 U.S.C. 1701x) is amended—

25 (1) in subsection (a), by striking paragraph (3);
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1 (2) in subsection (c)—

2 (A) by striking paragraph (8); and

3 (B) by redesignating paragraph (9) (as

4 amended by subsection (a)) as paragraph (8);

5 (3) in subsection (d)—

6 (A) by striking paragraph (12); and

7 (B) by redesignating paragraph (13) (as

8 amended by subsection (a)) as paragraph (12);

9 (4) in subsection (f), by striking paragraph (7);

10 and

11 (5) by adding at the end the following new sub12 section:

13 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

14 are authorized to be appropriated to carry out this section

15 $62,000,000 for fiscal year 1995 and $65,000,000 for fis16 cal year 1996, of which amounts $30,000,000 shall be

17 available in each such fiscal year to carry out subsection

18 (c). Any amounts appropriated pursuant to this subsection

19 shall remain available until expended.’’.

20 (c) OUTREACH.—Section 106(a) of the Housing and

21 Urban Development Act of 1968 (12 U.S.C. 1701x(a)) is

22 amended—

23 (1) in paragraph (1)—

24 (A) by striking ‘‘The’’ and inserting ‘‘AC25 TIVITIES.—The’’;
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1 (B) in the matter preceding clause (i), by

2 inserting ‘‘or consortia of organizations’’ after

3 ‘‘organizations’’;

4 (C) in clause (iii), by striking ‘‘and’’ at the

5 end;

6 (D) in clause (iv), by striking the period at

7 the end and inserting a semicolon; and

8 (E) by inserting at the end the following

9 new clauses:

10 ‘‘(v) the provision of outreach activities de11 signed to improve the access of low- and moderate12 income households to homeownership and sources of

13 mortgage credit;

14 ‘‘(vi) the provision of counseling to applicants

15 for and recipients of tenant-based assistance to en16 able such families to move to areas of mixed in17 comes; and

18 ‘‘(vii) counseling and advice to tenants and

19 homeowners regarding understanding financial prac20 tices, matters, and transactions commonly engaged

21 in by, or involving, tenants and homeowners, includ22 ing activities and services provided by banks and

23 other financial institutions, extension of credit,

24 standard lending practices, checking accounts and

25 check cashing, and savings accounts, which shall be
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1 made available in such manners and languages ap2 propriate for low-income and disadvantaged families

3 residing in the area in which the entity providing the

4 counseling and advice is located.’’;

5 (2) in paragraph (2)—

6 (A) by striking ‘‘The’’ and inserting ‘‘ELI7 GIBLE HOMEOWNERS.—The’’; and

8 (B) in the second sentence, by inserting

9 ‘‘or consortia of organizations’’ after ‘‘organiza10 tions’’; and

11 (3) by inserting after paragraph (2) the follow12 ing new paragraphs:

13 ‘‘(3) HOMEOWNERSHIP COUNSELING.—The Sec14 retary of Housing and Urban Development may contract

15 with national, State, or community-based entities (includ16 ing local community action agencies receiving assistance

17 under the Community Services Block Grant Act), and con18 sortia of such entities, and local public or private organiza19 tions (including public housing agencies), to carry out ac20 tivities under paragraph (1)(v). Contractors shall be se21 lected on a competitive basis, in accordance with selection

22 criteria determined by the Secretary. The contractors shall

23 carry out activities prescribed by the Secretary, including

24 activities such as—
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1 ‘‘(A) assisting homebuyers by working with

2 mortgage lending entities to make mortgage credit

3 available to low- and moderate-income homebuyers;

4 ‘‘(B) leveraging Federal funds with other

5 sources of funding to support activities under its

6 counseling program, including leveraging private,

7 community-based resources for the purpose of assist8 ing prospective mortgagors achieve homeownership;

9 ‘‘(C) conducting outreach and marketing to

10 prospective homebuyers, particularly homebuyers in

11 targeted neighborhoods with a high proportion of

12 low- and moderate-income and minority renter

13 households;

14 ‘‘(D) coordinating a prepurchase homeowner15 ship strategy that includes linking other counseling

16 providers and community-based organizations ap17 proved by the Secretary, assisting prospective home18 buyers to repair credit, educating potential home19 buyers on the requirements of homeownership, pro20 viding technical assistance, assisting in the packag21 ing of mortgage loan applications, and matching a

22 family’s resources with appropriate government and

23 private sector homeownership assistance programs;

24 and
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1 ‘‘(E) creating post-purchase counseling pro2 grams that include default-prevention counseling to

3 assist homebuyers to retain their homes.

4 ‘‘(4) RENTAL COUNSELING.—The Secretary of Hous5 ing and Urban Development may contract with national,

6 State, or community-based entities (including local com7 munity action agencies receiving assistance under the

8 Community Services Block Grant Act), and consortia of

9 such entities, and local public or private organizations (in10 cluding public housing agencies), to carry out activities

11 under paragraph (1)(vi). Contractors shall be selected on

12 a competitive basis, in accordance with selection criteria

13 determined by the Secretary. The contractors shall carry

14 out activities prescribed by the Secretary, including activi15 ties such as—

16 ‘‘(A) advising families on strategies for obtain17 ing appropriate housing;

18 ‘‘(B) providing transportation assistance and

19 other services to give families access to areas with20 out high concentrations of persons living in poverty;

21 ‘‘(C) continuing advice and counseling to assist

22 families after moving to areas without high con23 centrations of persons living in poverty; and

24 ‘‘(D) undertaking aggressive outreach to poten25 tial owners to expand the availability of housing in
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1 areas without high concentrations of persons living

2 in poverty.

3 Each entity receiving assistance pursuant to this para4 graph shall make counseling and assistance under this

5 paragraph available to low-income families who are re6 ferred to the entity pursuant to section 8(s)(2) of the

7 United States Housing Act of 1937, including counseling

8 and assistance regarding housing opportunities in the area

9 of jurisdiction of the public housing agency involved and

10 assistance in obtaining new rental residences in areas

11 within such jurisdiction not having high concentrations of

12 persons living in poverty.’’.

13 (d) NOTIFICATION.—Subparagraph (C) of section

14 106(c)(5) of the Housing and Urban Development Act of

15 1968 is amended to read as follows:

16 ‘‘(C) NOTIFICATION.—Notification under

17 subparagraph (A) shall not be required with re18 spect to any loan for which the eligible home19 owner pays the amount overdue before the expi20 ration of the 45-day period under subparagraph

21 (B)(ii).’’.

22 Subtitle F—Other Programs

23 SEC. 181. COMMUNITY PARTNERSHIPS AGAINST CRIME.

24 (a) SHORT TITLE, PURPOSES, AND AUTHORITY TO

25 MAKE GRANTS.—Chapter 2 of subtitle C of title V of the
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1 Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.)

2 is amended by striking the chapter heading and all that

3 follows through section 5123 and inserting the following:

4 ‘‘CHAPTER 2—COMMUNITY

5 PARTNERSHIPS AGAINST CRIME

6 ‘‘SEC. 5121. SHORT TITLE.

7 ‘‘This chapter may be cited as the ‘Community Part8 nerships Against Crime Act of 1994’.

9 ‘‘SEC. 5122. PURPOSES.

10 ‘‘The purposes of this chapter are to—

11 ‘‘(1) improve the quality of life for the vast ma12 jority of law-abiding public housing residents by re13 ducing the levels of fear, violence, and crime in their

14 communities;

15 ‘‘(2) substantially expand and enhance the Fed16 eral Government’s commitment to eliminating crime

17 in and around public housing and other federally as18 sisted low-income housing;

19 ‘‘(3) broaden the scope of the Public and As20 sisted Housing Drug Elimination Act of 1990 to

21 apply to all types of crime, and not simply crime

22 that is drug-related;

23 ‘‘(4) encourage the involvement of a broad

24 range of community-based groups and residents of

25 neighboring housing that is owned or assisted by the
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1 Secretary in the development and implementation of

2 anti-crime plans;

3 ‘‘(5) reduce crime and disorder in and around

4 public housing through the expansion of community5 oriented policing activities and problem solving;

6 ‘‘(6) provide training, information services, and

7 other technical assistance to program participants;

8 and

9 ‘‘(7) establish a standardized assessment sys10 tem to evaluate need among public housing agencies

11 and to measure progress in reaching crime reduction

12 goals.

13 ‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.

14 ‘‘The Secretary of Housing and Urban Development

15 may make grants in accordance with the provisions of this

16 chapter for use in eliminating crime in and around public

17 housing and other federally assisted low-income housing

18 projects to (1) public housing agencies, and (2) private,

19 for-profit and nonprofit owners of federally assisted low20 income housing. In designing the program for grants

21 under this chapter, the Secretary shall consult with the

22 Attorney General.’’.

23 (b) ELIGIBLE ACTIVITIES.—
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1 (1) IN GENERAL.—Section 5124(a) of the Anti2 Drug Abuse Act of 1988 (42 U.S.C. 11903(a)) is

3 amended—

4 (A) in the matter preceding paragraph (1),

5 by inserting ‘‘and around’’ after ‘‘used in’’;

6 (B) in paragraph (3), by inserting before

7 the semicolon the following: ‘‘, including fenc8 ing, lighting, locking, and surveillance systems’’;

9 (C) in paragraph (4), by striking subpara10 graph (A) and inserting the following new sub11 paragraph:

12 ‘‘(A) to investigate crime; and’’;

13 (D) in paragraph (6)—

14 (i) by striking ‘‘in and around public

15 or other federally assisted low-income

16 housing projects’’; and

17 (ii) by striking ‘‘and’’ after the semi18 colon; and

19 (E) by striking paragraph (7) and insert20 ing the following new paragraphs:

21 ‘‘(7) providing funding to nonprofit public hous22 ing resident management corporations and resident

23 councils to develop security and crime prevention

24 programs involving site residents;
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1 ‘‘(8) the employment or utilization of one or

2 more individuals, including law enforcement officers,

3 made available by contract or other cooperative ar4 rangement with State or local law enforcement agen5 cies, to engage in community- and problem-oriented

6 policing involving interaction with members of the

7 community in proactive crime control and prevention

8 activities;

9 ‘‘(9) programs and activities for or involving

10 youth, including training, education, recreation and

11 sports, career planning, and entrepreneurship and

12 employment activities and after school and cultural

13 programs; and

14 ‘‘(10) service programs for residents that ad15 dress the contributing factors of crime, including

16 programs for job training, education, drug and alco17 hol treatment, and other appropriate social serv18 ices.’’.

19 (2) OTHER PHA-OWNED HOUSING.—Section

20 5124(b) of the Anti-Drug Abuse Act of 1988 (42

21 U.S.C. 11903(b)) is amended—

22 (A) in the matter preceding paragraph

23 (1)—

24 (i) by striking ‘‘drug-related crime in’’

25 and inserting ‘‘crime in and around’’; and
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1 (ii) by striking ‘‘paragraphs (1)

2 through (7)’’ and inserting ‘‘paragraphs

3 (1) through (10)’’; and

4 (B) in paragraph (2), by striking ‘‘drug-re5 lated’’ and inserting ‘‘criminal’’.

6 (c) GRANT PROCEDURES.—Section 5125 of the Anti7 Drug Abuse Act of 1988 (42 U.S.C. 11904) is amended

8 to read as follows:

9 ‘‘SEC. 5125. GRANT PROCEDURES.

10 ‘‘(a) PHA’S WITH 250 OR MORE UNITS.—

11 ‘‘(1) GRANTS.—In each fiscal year, the Sec12 retary shall make a grant under this chapter from

13 any amounts available under section 5131(b)(1) for

14 the fiscal year to each of the following public hous15 ing agencies:

16 ‘‘(A) NEW APPLICANTS.—Each public

17 housing agency that owns or operates 250 or

18 more public housing dwelling units and has—

19 ‘‘(i) submitted an application to the

20 Secretary for a grant for such fiscal year,

21 which includes a 5-year crime deterrence

22 and reduction plan under paragraph (2);

23 and

24 ‘‘(ii) had such application and plan

25 approved by the Secretary.
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1 ‘‘(B) RENEWALS.—Each public housing

2 agency that owns or operates 250 or more pub3 lic housing dwelling units and for which—

4 ‘‘(i) a grant was made under this

5 chapter for the preceding Federal fiscal

6 year;

7 ‘‘(ii) the term of the 5-year crime de8 terrence and reduction plan applicable to

9 such grant includes the fiscal year for

10 which the grant under this subsection is to

11 be made; and

12 ‘‘(iii) the Secretary has determined,

13 pursuant to a performance review under

14 paragraph (4), that during the preceding

15 fiscal year the agency has substantially ful16 filled the requirements under subpara17 graphs (A) and (B) of paragraph (4).

18 ‘‘(2) 5-YEAR CRIME DETERRENCE AND REDUC19 TION PLAN.—Each application for a grant under

20 this subsection shall contain a 5-year crime deter21 rence and reduction plan. The plan shall describe,

22 for the public housing agency submitting the plan—

23 ‘‘(A) the nature of the crime problem in

24 public housing owned or operated by the public

25 housing agency;
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1 ‘‘(B) the building or buildings of the public

2 housing agency affected by the crime problem;

3 ‘‘(C) the impact of the crime problem on

4 residents of such building or buildings; and

5 ‘‘(D) the actions to be taken during the

6 term of the plan to reduce and deter such

7 crime, which shall include actions involving resi8 dents, law enforcement, and service providers.

9 The term of a plan shall be the period consisting of

10 5 consecutive fiscal years, which begins with the first

11 fiscal year for which funding under this chapter is

12 provided to carry out the plan.

13 ‘‘(3) AMOUNT.—In any fiscal year, the amount

14 of the grant for a public housing agency receiving a

15 grant pursuant to paragraph (1) shall be the

16 amount that bears the same ratio to the total

17 amount made available under section 5131(b)(1) as

18 the total number of public dwelling units owned or

19 operated by such agency bears to the total number

20 of dwelling units owned or operated by all public

21 housing agencies that own or operate 250 or more

22 public housing dwelling units that are approved for

23 such fiscal year.

24 ‘‘(4) PERFORMANCE REVIEW.—For each fiscal

25 year, the Secretary shall conduct a performance re-
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1 view of the activities carried out by each public

2 housing agency receiving a grant pursuant to this

3 subsection to determine whether the agency—

4 ‘‘(A) has carried out such activities in a

5 timely manner and in accordance with its 5-

6 year crime deterrence and reduction plan; and

7 ‘‘(B) has a continuing capacity to carry

8 out such plan in a timely manner.

9 ‘‘(5) SUBMISSION OF APPLICATIONS.—The Sec10 retary shall establish such deadlines and require11 ments for submission of applications under this sub12 section as the Secretary determines appropriate for

13 timely and orderly allocation and disbursement of

14 amounts made available for grants under this sub15 section.

16 ‘‘(6) REVIEW AND DETERMINATION.—The Sec17 retary shall review each application submitted under

18 this subsection upon submission and shall approve

19 the application unless the application and the 5-year

20 crime deterrence and reduction plan are inconsistent

21 with the purposes of this chapter or any require22 ments established by the Secretary or the informa23 tion in the application or plan is not substantially

24 complete. Upon approving or determining not to ap25 prove an application and plan submitted under this
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1 subsection, the Secretary shall notify the public

2 housing agency submitting the application and plan

3 of such approval or disapproval.

4 ‘‘(7) DISAPPROVAL OF APPLICATIONS.—If the

5 Secretary notifies an agency that the application and

6 plan of the agency is not approved, not later than

7 the expiration of the 15-day period beginning upon

8 such notice of disapproval, the Secretary shall also

9 notify the agency, in writing, of the reasons for the

10 disapproval, the actions that the agency could take

11 to comply with the criteria for approval, and the

12 deadlines for such actions.

13 ‘‘(8) FAILURE TO APPROVE OR DISAPPROVE.—

14 If the Secretary fails to notify an agency of approval

15 or disapproval of an application and plan submitted

16 under this subsection before the expiration of the

17 60-day period beginning upon the submission of the

18 plan or fails to provide notice under paragraph (7)

19 within the 15-day period under such paragraph to

20 an agency whose application has been disapproved,

21 the application and plan shall be considered to have

22 been approved for purposes of this section.

23 ‘‘(b) PHA’S WITH FEWER THAN 250 UNITS AND

24 OWNERS OF FEDERALLY ASSISTED LOW-INCOME HOUS25 ING.—
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1 ‘‘(1) APPLICATIONS AND PLANS.—To be eligible

2 to receive a grant under this chapter, a public hous3 ing agency that owns or operates fewer than 250

4 public housing dwelling units or an owner of feder5 ally assisted low-income housing shall submit an ap6 plication to the Secretary at such time, in such man7 ner, and accompanied by such additional information

8 as the Secretary may require. The application shall

9 include a plan for addressing the problem of crime

10 in and around the housing for which the application

11 is submitted, describing in detail activities to be con12 ducted during the fiscal year for which the grant is

13 requested.

14 ‘‘(2) GRANTS FOR PHA’S WITH FEWER THAN

15 250 UNITS.—In each fiscal year the Secretary may,

16 to the extent amounts are available under section

17 5131(b)(2), make grants under this chapter to pub18 lic housing agencies that own or operate fewer than

19 250 public housing dwelling units and have submit20 ted applications under paragraph (1) that the Sec21 retary has approved pursuant to the criteria under

22 paragraph (4).

23 ‘‘(3) GRANTS FOR FEDERALLY ASSISTED LOW24 INCOME HOUSING.—In each fiscal year the Secretary

25 may, to the extent amounts are available under sec-
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1 tion 5131(b)(3), make grants under this chapter to

2 owners of federally assisted low-income housing that

3 have submitted applications under paragraph (1)

4 that the Secretary has approved pursuant to the cri5 teria under paragraphs (4) and (5).

6 ‘‘(4) CRITERIA FOR APPROVAL OF APPLICA7 TIONS.—The Secretary shall determine whether to

8 approve each application under this subsection on

9 the basis of—

10 ‘‘(A) the extent of the crime problem in

11 and around the housing for which the applica12 tion is made;

13 ‘‘(B) the quality of the plan to address the

14 crime problem in the housing for which the ap15 plication is made;

16 ‘‘(C) the capability of the applicant to

17 carry out the plan; and

18 ‘‘(D) the extent to which the tenants of the

19 housing, the local government, local community20 based nonprofit organizations, local tenant or21 ganizations representing residents of neighbor22 ing projects that are owned or assisted by the

23 Secretary, and the local community support and

24 participate in the design and implementation of
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1 the activities proposed to be funded under the

2 application.

3 In each fiscal year, the Secretary may give pref4 erence to applications under this subsection for

5 housing made by applicants who received a grant for

6 such housing for the preceding fiscal year under this

7 subsection or under the provisions of this chapter as

8 in effect immediately before the date of the enact9 ment of the Housing and Community Development

10 Act of 1994.

11 ‘‘(5) ADDITIONAL CRITERIA FOR FEDERALLY

12 ASSISTED LOW-INCOME HOUSING.—In addition to

13 the selection criteria under paragraph (4), the Sec14 retary may establish other criteria for evaluating ap15 plications submitted by owners of federally assisted

16 low-income housing, except that such additional cri17 teria shall be designed only to reflect—

18 ‘‘(A) relevant differences between the fi19 nancial resources and other characteristics of

20 public housing authorities and owners of feder21 ally assisted low-income housing; or

22 ‘‘(B) relevant differences between the prob23 lem of crime in public housing administered by

24 such public housing agencies and the problem
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1 of crime in federally assisted low-income hous2 ing.’’.

3 (d) DEFINITIONS.—Section 5126 of the Anti-Drug

4 Abuse Act of 1988 (42 U.S.C. 11905) is amended—

5 (1) by striking paragraphs (1) and (2);

6 (2) in paragraph (4), by striking ‘‘section’’ be7 fore ‘‘221(d)(4)’’;

8 (3) by redesignating paragraphs (3) and (4) (as

9 so amended) as paragraphs (1) and (2), respectively;

10 and

11 (4) by adding at the end the following new

12 paragraph:

13 ‘‘(3) PUBLIC HOUSING AGENCY.—The term

14 ‘public housing agency’ has the meaning given the

15 term in section 3(b) of the United States Housing

16 Act of 1937.’’.

17 (e) IMPLEMENTATION.—Section 5127 of the Anti18 Drug Abuse Act of 1988 (42 U.S.C. 11906) is amended

19 by striking ‘‘Cranston-Gonzalez National Affordable

20 Housing Act’’ and inserting ‘‘Housing and Community

21 Development Act of 1994’’.

22 (f) REPORTS.—Section 5128 of the Anti-Drug Abuse

23 Act of 1988 (42 U.S.C. 11907) is amended—

24 (1) by striking ‘‘The Secretary’’ and inserting

25 the following:
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1 ‘‘(a) REPORTS BY GRANTEES.—The Secretary’’;

2 (2) by striking ‘‘drug-related crime in’’ and in3 serting ‘‘crime in and around’’;

4 (3) by striking ‘‘described in section 5125(a)’’

5 and inserting ‘‘for the grantee submitted under sub6 section (a) or (b) of section 5125, as applicable’’;

7 and

8 (4) by adding at the end the following new sub9 section:

10 ‘‘(b) REPORTS BY SECRETARY.—For each fiscal year

11 in which the Secretary makes grants under this chapter,

12 the Secretary shall submit a report to the Congress de13 scribing the progress achieved in crime deterrence and re14 duction in the public housing and federally assisted low15 income housing for which such grant assistance has been

16 provided. The report shall include any recommendations

17 of the Secretary for changes in the program of assistance

18 under this chapter.’’.

19 (g) TECHNICAL ASSISTANCE AND FUNDING.—Chap20 ter 2 of subtitle C of title V of the Anti-Drug Abuse Act

21 of 1988 is amended by striking section 5130 (42 U.S.C.

22 11909) and inserting the following new sections:

23 ‘‘SEC. 5130. TECHNICAL ASSISTANCE.

24 ‘‘(a) IN GENERAL.—To the extent amounts are made

25 available under section 5131(c), the Secretary may provide
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1 training, information services, and other technical assist2 ance to public housing agencies and other entities with re3 spect to their participation in the program under this

4 chapter, which shall include activities under subsection (b)

5 of this section. Such technical assistance may be provided

6 directly by the Secretary or indirectly pursuant to grants,

7 contracts, or cooperative agreements.

8 ‘‘(b) USE.—The Secretary may use amounts available

9 for use under this section—

10 ‘‘(1) to establish and operate the clearinghouse

11 on drug abuse in public housing and the regional

12 training program on drug abuse in public housing

13 under sections 5143 and 5144 of this Act;

14 ‘‘(2) to obtain assistance in establishing and

15 managing assessment and evaluation criteria and

16 specifications and to obtain the opinions of experts

17 in relevant fields; and

18 ‘‘(3) upon the request of a public housing agen19 cy, to assist the agency in evaluating the extent of

20 the crime problem in any public housing adminis21 tered by the agency and preparing a 5-year crime

22 deterrence and reduction plan under section 5125(a)

23 or an application and plan under section 5125(b)(1),

24 which assistance may include providing personnel
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1 and funding to identify and secure local resources to

2 assist in deterring and reducing crime.

3 ‘‘(c) PRIORITY.—In selecting entities to receive tech4 nical assistance under this section, the Secretary shall give

5 priority to public housing agencies that have submitted ap6 plications and plans under section 5125 that the Secretary

7 has determined do not meet the requirements for approval

8 for assistance under this chapter.

9 ‘‘SEC. 5131. FUNDING.

10 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There

11 is authorized to be appropriated to carry out this chapter

12 $300,000,000 for fiscal year 1995 and $325,000,000 for

13 fiscal year 1996. Any amount appropriated under this sub14 section shall remain available until expended.

15 ‘‘(b) ALLOCATION.—Of any amounts available, or

16 that the Secretary is authorized to use, to carry out this

17 chapter in any fiscal year that remain after reserving

18 amounts for use under subsection (c)—

19 ‘‘(1) 85 percent shall be available only for as20 sistance pursuant to section 5125(a) to public hous21 ing agencies that own or operate 250 or more public

22 housing dwelling units;

23 ‘‘(2) 10 percent shall be available only for as24 sistance pursuant to section 5125(b)(2) to public
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1 housing agencies that own or operate fewer than 250

2 public housing dwelling units; and

3 ‘‘(3) 5 percent shall be available only for assist4 ance to federally assisted low-income housing pursu5 ant to section 5125(b)(3).

6 Any other provision of law enacted before or after the date

7 of the enactment of the Housing and Community Develop8 ment Act of 1994 that limits the authority of the Sec9 retary to use amounts to carry out this chapter upon the

10 apportionment of such amounts in a manner not provided

11 for in this subsection shall not be effective.

12 ‘‘(c) SET-ASIDE FOR TECHNICAL ASSISTANCE.—Of

13 any amount made available in fiscal years 1994 and 1995

14 to carry out this chapter, the Secretary shall use not more

15 than $10,000,000 in each such fiscal year to provide tech16 nical assistance under section 5130.’’.

17 (h) CONFORMING AMENDMENTS.—The table of con18 tents in section 5001 of the Anti-Drug Abuse Act of 1988

19 (Public Law 100–690; 102 Stat. 4295) is amended—

20 (1) by striking the item relating to the heading

21 for chapter 2 of subtitle C and inserting the follow22 ing:

‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;

23 (2) by striking the item relating to section 5122

24 and inserting the following new item:

‘‘Sec. 5122. Purposes.’’;
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1 (3) by striking the item relating to section 5125

2 and inserting the following new item:

‘‘Sec. 5125. Grant procedures.’’;

3 and

4 (4) by striking the item relating to section 5130

5 and inserting the following new items:

‘‘Sec. 5130. Technical Assistance.

‘‘Sec. 5131. Funding.’’.

6 SEC. 182. LOW-INCOME HOUSING PRESERVATION.

7 (a) ASSISTANCE AND INCENTIVES.—Section 234 of

8 the Housing and Community Development Act of 1987

9 (12 U.S.C. 4124) is amended to read as follows:

10 ‘‘SEC. 234. AUTHORIZATION OF APPROPRIATIONS.

11 ‘‘(a) IN GENERAL.—There are authorized to be ap12 propriated for assistance and incentives authorized under

13 this subtitle $358,000,000 for fiscal year 1995 and

14 $450,000,000 for fiscal year 1996.

15 ‘‘(b) GRANTS.—Subject to approval in appropriation

16 Acts, not more than $40,000,000 of the amounts made

17 available under subsection (a) for fiscal year 1995, and

18 not more than $40,000,000 of the amounts made available

19 under subsection (a) for fiscal year 1996, shall be available

20 for grants under section 221(d)(2).’’.

21 (b) TECHNICAL ASSISTANCE AND CAPACITY BUILD22 ING.—The first sentence of section 257 of the Housing

23 and Community Development Act of 1987 (12 U.S.C.
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1 4147) is amended to read as follows: ‘‘The Secretary shall

2 use not more than $20,000,000 of the amounts made

3 available under section 234(a) for fiscal year 1995, and

4 not more than $20,000,000 of the amounts made available

5 under section 234(a) for fiscal year 1996, to carry out

6 this subtitle.’’.

7 (c) REPEAL OF RENT LIMITATIONS.—The National

8 Housing Act is amended—

9 (1) in section 221 (12 U.S.C. 1715l), by strik10 ing subsection (l).

11 (2) in section 236(f) (12 U.S.C. 1715z–1(f)),

12 by striking paragraph (6).

13 (d) EQUITY LOANS.—Section 241(f)(2)(B)(ii) of the

14 National Housing Act (12 U.S.C. 1715z–6(f)(2)(B)(ii)) is

15 amended by inserting ‘‘(excluding the amount of rehabili16 tation costs required by the plan of action and related

17 charges)’’ after ‘‘loan amount’’.

18 (e) TREATMENT AS ELIGIBLE HOUSING.—Notwith19 standing section 229(1)(B) of the Housing and Commu20 nity Development Act of 1987, the Northwest Towers

21 project, located at 1170 West Erie, in Chicago, Illinois,

22 shall be considered eligible low-income housing for pur23 poses of title II of such Act, except that—

24 (1) the Secretary of Housing and Urban Devel25 opment may approve a plan of action under such
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1 title for the project only if the plan of action (A)

2 provides for transfer of the ownership of the project

3 (i) in accordance with section 226 of such title to a

4 resident council of the project, or (ii) in accordance

5 with section 220 of such title to a community-based

6 nonprofit organization approved by the residents of

7 the project, and (B) otherwise complies with the re8 quirements of such title; and

9 (2) the Secretary of Housing and Urban Devel10 opment shall reduce the aggregate amount of any in11 centives otherwise to be provided under such title for

12 the project by the amount of any outstanding in13 debtedness on the loan for the project under section

14 201 of the Housing and Community Development

15 Amendments of 1978.

16 SEC. 183. FLEXIBLE SUBSIDY PROGRAM.

17 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

18 201(j)(5) of the Housing and Community Development

19 Amendments of 1978 (12 U.S.C. 1715z–1a(j)(5)) is

20 amended to read as follows:

21 ‘‘(5) There are authorized to be appropriated for as22 sistance under the flexible subsidy fund not to exceed

23 $50,000,000 for fiscal year 1995 and $55,000,000 for fis24 cal year 1996.’’.
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1 (b) ALLOCATION.—Section 201(n)(2)(B)(ii) of the

2 Housing and Community Development Amendments of

3 1978 (12 U.S.C. 1715z–1a(n)(2)(B)(ii)) is amended by in4 serting ‘‘and federally assisted’’ before ‘‘mortgages’’.

5 (c) USE OF SECTION 236 RENTAL ASSISTANCE

6 FUND AMOUNTS.—Section 236(f)(3) of the National

7 Housing Act (12 U.S.C. 1715z–1(f)(3)) is amended by

8 striking ‘‘September 30, 1994’’ and inserting ‘‘September

9 30, 1996’’.

10 SEC. 184. YOUTHBUILD PROGRAM.

11 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

12 402 of the Cranston-Gonzalez National Affordable Hous13 ing Act (42 U.S.C. 12870), as amended by the preceding

14 provisions of this title, is amended by inserting after sub15 section (a) the following new subsection:

16 ‘‘(b) YOUTHBUILD PROGRAM.—There are authorized

17 to be appropriated for activities under subtitle D

18 $50,000,000 for fiscal year 1995 and $50,000,000 for fis19 cal year 1996. Any amounts appropriated pursuant to this

20 subsection shall remain available until expended.’’.

21 (b) ELIGIBLE ACTIVITIES.—Section 454(b) of the

22 Cranston-Gonzalez National Affordable Housing Act (42

23 U.S.C. 12899c(b)) is amended—

24 (1) in paragraph (2), by striking ‘‘Acquisition’’

25 and all that follows through ‘‘facilities’’ and insert-
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1 ing ‘‘Acquisition, rehabilitation, or acquisition and

2 rehabilitation of housing and related facilities, or

3 construction of new housing and related facilities

4 (including community facilities designed to serve the

5 needs of low- and very low-income families),’’;

6 (2) by striking paragraph (6); and

7 (3) by redesignating paragraphs (7) and (8) as

8 paragraphs (6) and (7), respectively.

9 (c) PRIORITY FOR APPLICANTS SUPPLEMENTING

10 GRANT AMOUNTS.—Section 454(e) of the Cranston-Gon11 zalez National Affordable Housing Act (42 U.S.C.

12 12899c(e)) is amended to read as follows:

13 ‘‘(e) PRIORITY FOR APPLICANTS WHO OBTAIN PRO14 GRAM FUNDS FROM OTHER SOURCES.—The Secretary

15 shall give priority in the award of grants under this section

16 to applicants to the extent that they have obtained

17 amounts or in-kind contributions, or commitments to pro18 vide such amounts or contributions, from Federal, State,

19 local, or private sources other than assistance under this

20 subtitle in an amount constituting not less than 10 percent

21 of the total budget of the applicant for the Youthbuild pro22 gram, that will be used for carrying out any aspect of the

23 Youthbuild program of the applicant.’’.

24 (d) RESIDENTIAL RENTAL HOUSING REQUIRE25 MENTS.—Section 455(a) of the Cranston-Gonzalez Na-
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1 tional Affordable Housing Act (42 U.S.C. 12899d(a)) is

2 amended—

3 (1) in the matter preceding paragraph (1), by

4 inserting after ‘‘subtitle’’ the following: ‘‘for costs

5 such as construction, rehabilitation, and acquisi6 tion’’; and

7 (2) in paragraph (1), by striking subparagraph

8 (A) and inserting the following new subparagraph:

9 ‘‘(A) at least 80 percent of the units shall

10 be occupied, or available for occupancy, by indi11 viduals and families with incomes that do not

12 exceed 50 percent of the area median income,

13 adjusted for family size; and’’.

14 (e) RESERVATION OF FUNDS.—Section 458(d) of the

15 Cranston-Gonzalez National Affordable Housing Act (42

16 U.S.C. 12899g(d)) is amended by inserting before the pe17 riod at the end the following: ‘‘and not more than 1 per18 cent of such available amounts to implement, pursuant to

19 subsection (a) of this section, a management information

20 system to gather and analyze information necessary to as21 sess the quality and effects of the program under this sub22 title and to monitor Youthbuild programs funded under

23 this subtitle’’.

24 (f) PROGRAM NAME.—The heading for subtitle D of

25 title IV of the Cranston-Gonzalez National Affordable
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1 Housing Act (42 U.S.C. 12899 et seq.) is amended to read

2 as follows:

3 ‘‘Subtitle D—Youthbuild’’.

4 SEC. 185. DISPOSITION OF HUD-OWNED MULTIFAMILY

5 HOUSING PROPERTIES.

6 Section 203(g) of the Housing and Community De7 velopment Amendments of 1978 (12 U.S.C. 1701z–11(g))

8 is amended—

9 (1) in paragraph (2), by striking ‘‘and’’ at the

10 end;

11 (2) in paragraph (3), by striking the period at

12 the end and inserting ‘‘; and’’;

13 (3) by redesignating paragraphs (2) and (3) (as

14 so amended) as paragraphs (3) and (4), respectively;

15 (4) by inserting after paragraph (1) the follow16 ing new paragraph:

17 ‘‘(2) upon the conclusion of the first year of

18 such 2-year period, the Secretary shall examine the

19 income and rent of the family and of other very low20 income families who are preexisting tenants of the

21 project and the rents charged for units in the project

22 and for similar units in the market area in which

23 the project is located, to determine whether upon the

24 expiration of such 2-year period the rent charged for

25 the unit occupied by the family and for similar units
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1 in the same market area will be significantly more

2 than the amount charged for the unit occupied by

3 the family during such 2-year period;’’; and

4 (5) by adding at the end the following new

5 paragraph:

6 ‘‘(5) if the Secretary determines pursuant to

7 paragraph (2) that, upon the expiration of the 2-

8 year period, the family will not be able to rent a unit

9 in the project or a similar unit in the market area

10 in which the project is located without paying in rent

11 significantly more than the amount charged for the

12 unit occupied by the family during such 2-year pe13 riod, the Secretary shall, to the extent budget au14 thority is available, provide tenant-based assistance

15 on behalf of the family under a contract under sec16 tion 8 of the United States Housing Act of 1937

17 having a 5-year term.’’.

18 SEC. 186. GUIDELINES FOR SCREENING, ADMISSION, AND

19 EVICTIONS IN PUBLIC AND ASSISTED HOUS20 ING.

21 Not later than December 31, 1994, the Secretary of

22 Housing and Urban Development shall issue guidelines for

23 owners and managers of public and assisted housing with

24 respect to screening applicants for occupancy in such

25 housing, admissions to such housing, and evictions of resi-
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1 dents of such housing who are users or former users of

2 illegal drugs or who violate lease provisions because of al3 cohol use. The Secretary shall issue such guidelines based

4 on the report to the Congress issued by the Public and

5 Assisted Housing Occupancy Task Force on April 7, 1994,

6 pursuant to section 643(a)(7) of the Housing and Commu7 nity Development Act of 1992.

8 SEC. 187. METROPOLITAN AREA-WIDE STRATEGY DEM9 ONSTRATION.

10 (a) IN GENERAL.—The Secretary of Housing and

11 Urban Development (in this section referred to as the

12 ‘‘Secretary’’) shall carry out, through consortia of units

13 of general local government, a demonstration program to

14 make assisted housing available in 3 metropolitan areas

15 on a metropolitan, area-wide basis.

16 (b) PURPOSE.—The demonstration program under

17 this section shall be designed to determine the most effec18 tive manner to—

19 (1) affirmatively further fair housing and ad20 dress the problem of racial segregation in metropoli21 tan areas;

22 (2) achieve the goal of overcoming spatial sepa23 ration and segregation of families by race, which

24 shall include testing the effect of filling vacancies in
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1 assisted housing by use of a consolidated waiting

2 list;

3 (3) enlist cooperation of units of general local

4 government, public housing agencies, and private

5 owners of assisted housing in achieving such goals;

6 (4) make public housing facilitate social and

7 economic mobility;

8 (5) eliminate housing discrimination; and

9 (6) accomplish related objectives determined by

10 the Secretary.

11 (c) ELIGIBILITY OF CONSORTIA.—The Secretary

12 shall select the consortia of units of general local govern13 ment to participate in the demonstration program on a

14 competitive basis and make a grant to each consortia se15 lected. The Secretary may select only consortia that dem16 onstrate to the Secretary, as the Secretary shall require,

17 that a sufficient number of units of general local govern18 ment, public housing agencies, and private owners of as19 sisted housing are committed to participate in the dem20 onstration to make the demonstration feasible, which shall

21 include commitment to comply with alternative program

22 requirements specified by the Secretary.

23 (d) DURATION.—The demonstration program shall

24 be carried out for a period of 3 years with respect to each

25 site selected.
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1 (e) WAIVERS.—The Secretary may waive, or specify

2 alternative requirements for, any provision of any statute

3 or regulation that the Secretary administers if the Sec4 retary finds that the waiver or alternative requirement (1)

5 is necessary to facilitate the demonstration program, and

6 (2) would not be inconsistent with the overall purpose of

7 the statute or regulation affected. In no event may the

8 Secretary waive, or specify alternative requirements for,

9 any provision of the Internal Revenue Code of 1986, or

10 statutory requirements related to nondiscrimination, fair

11 housing, labor standards, or the environment, except that

12 the Secretary may waive affirmative marketing require13 ments for participants in the demonstration program.

14 (f) AUTHORIZATION OF APPROPRIATIONS.—There

15 are authorized to be appropriated for the costs related to

16 regional planning, housing counseling, development of a

17 model consolidated waiting list, and administration under

18 the demonstration established by this section, such sums

19 as may be necessary for each of fiscal years 1995 and

20 1996.

21 SEC. 188. CERTAIN REVITALIZATION AND RELOCATION AS22 SISTANCE.

23 There are authorized to be appropriated for revital24 ization and relocation activities for the Windsor Park Sub-
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1 division in Las Vegas, Nevada, such sums as may be nec2 essary for fiscal year 1995.

3 TITLE II—HOME INVESTMENT

4 PARTNERSHIPS

5 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

6 (a) IN GENERAL.—Section 205 of the Cranston-Gon7 zalez National Affordable Housing Act (42 U.S.C. 12724)

8 is amended to read as follows:

9 ‘‘SEC. 205. AUTHORIZATION.

10 ‘‘There are authorized to be appropriated to carry out

11 this title $1,700,000,000 for fiscal year 1995, and

12 $2,000,000,000 for fiscal year 1996, of which—

13 ‘‘(1) not more than $25,000,000 for fiscal year

14 1995, and $25,000,000 for fiscal year 1996, shall be

15 for community housing partnership activities author16 ized under section 233; and

17 ‘‘(2) not more than $22,000,000 for fiscal year

18 1995, and $22,000,000 for fiscal year 1996, shall be

19 for activities in support of State and local housing

20 strategies authorized under subtitle C.’’.

21 (b) NOTICE OF FUNDING AVAILABILITY.—For each

22 of fiscal years 1995 and 1996, the Secretary shall cause

23 to be published in the Federal Register notice of the avail24 ability of any amounts made available under section

25 205(1) of the Cranston-Gonzalez National Affordable
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1 Housing Act (as amended by subsection (a)) that are

2 available for community housing partnership activities au3 thorized under section 233. Each such notice shall be pub4 lished not later than the expiration of the 90-day period

5 beginning on the date that amounts are appropriated for

6 each of such fiscal years to carry out the program under

7 title II of the Cranston-Gonzalez National Affordable

8 Housing Act.

9 SEC. 202. ELIGIBLE USES OF INVESTMENT.

10 Section 212(a)(1) of the Cranston-Gonzalez National

11 Affordable Housing Act (42 U.S.C. 12742(a)(1)) is

12 amended by striking ‘‘financing costs’’ and inserting

13 ‘‘costs of financing (including credit enhancements, loan

14 guarantees, and debt service reserves)’’.

15 SEC. 203. QUALIFICATION AS AFFORDABLE RENTAL HOUS16 ING.

17 Section 215(a) of the Cranston-Gonzalez National

18 Affordable Housing Act (42 U.S.C. 12742(a)) is amend19 ed—

20 (1) in paragraph (1)(A), by striking ‘‘bears

21 rents not greater than’’ and inserting ‘‘is occupied

22 by tenants who pay as rent’’;

23 (2) in paragraph (3), by inserting after the pe24 riod at the end of the first sentence the following

25 new sentence: ‘‘A tenant occupying a rental unit as-
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1 sisted with amounts provided under this title shall

2 be considered to be a very low-income family until

3 the household’s income increases to more than 140

4 percent of the applicable income limitation under

5 paragraph (1)(B).’’; and

6 (3) by adding at the end the following new

7 paragraph:

8 ‘‘(6) RENTAL SUBSIDIES.—Notwithstanding

9 paragraph (1), housing shall not be considered to

10 fail to qualify as affordable housing under this title

11 because it includes units for which—

12 ‘‘(A) payments are made under section 8

13 of the United States Housing Act of 1937 or

14 any comparable rental assistance program; and

15 ‘‘(B) because of increases in the income of

16 tenants of the housing, the rent paid by the

17 tenants under the assistance program with re18 spect to such unit exceeds 30 percent of the ad19 justed income of a family whose income equals

20 65 percent of the median income for the area.’’.

21 SEC. 204. REPAYMENT OF INVESTMENT.

22 Section 219 of the Cranston-Gonzalez National Af23 fordable Housing Act (42 U.S.C. 12749) is amended by

24 adding at the end the following new subsection:
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1 ‘‘(d) REPAYMENT OF MATCHING AMOUNTS.—

2 Amounts provided by a participating jurisdiction pursuant

3 to section 220 for housing not assisted under this title

4 shall be recognized for purposes of section 220(a), not5 withstanding that such amounts are not repaid to the ju6 risdiction’s HOME Investment Trust Fund, if such

7 amounts are drawn from an affordable housing program

8 operated by the jurisdiction, repaid to the program, and

9 available for use only for the program or for providing

10 housing that qualifies as affordable housing.’’.

11 SEC. 205. MATCHING REQUIREMENTS.

12 Section 220 of the Cranston-Gonzalez National Af13 fordable Housing Act (42 U.S.C. 12750) is amended—

14 (1) in the first sentence of subsection (a), by in15 serting ‘‘the participating jurisdiction certifies’’ be16 fore ‘‘qualifies’’; and

17 (2) in subsection (b)(1)—

18 (A) in subparagraph (A), by striking ‘‘or’’;

19 (B) in subparagraph (B), by striking the

20 period at the end and inserting ‘‘; or’’; and

21 (C) by adding at the end the following new

22 subparagraph:

23 ‘‘(C) is made with respect to housing that

24 is substantially equivalent to housing that quali25 fies as affordable housing under section 215.’’.
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1 SEC. 206. SUPPORT FOR STATE AND LOCAL HOUSING

2 STRATEGIES.

3 Subtitle C of title II of the Cranston-Gonzalez Na4 tional Affordable Housing Act (42 U.S.C. 12781 et seq.)

5 is amended by adding at the end the following new section:

6 ‘‘SEC. 246. STRATEGIC PLANNING AND URBAN DESIGN.

7 ‘‘The Secretary may use amounts available under this

8 subtitle to provide grants to States, units of general local

9 government, and metropolitan, non-metropolitan, and re10 gional planning agencies, for the following activities:

11 ‘‘(1) Urban design and the development of pub12 lic amenities in low-income neighborhoods that serve

13 as a catalyst for the renewal of the neighborhood.

14 ‘‘(2) Development and implementation of com15 prehensive plans that focus on local and metropoli16 tan strategies which create sustainable community

17 development at the neighborhood, city, and metro18 politan level.

19 ‘‘(3) Expanding economic opportunities for low20 and moderate-income families through areawide

21 planning approaches that provide educational and

22 employment opportunities for such persons.

23 ‘‘(4) Coordinated efforts that stimulate fair

24 housing, further the deconcentration of the poor and

25 minorities, reduce the isolation of income groups

26 within communities, remove barriers to affordable
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1 housing development, and expand housing opportuni2 ties for low- and moderate-income families.

3 ‘‘(5) The conservation of important historic, vis4 ual, and cultural features.

5 ‘‘(6) The development and implementation of

6 comprehensive approaches that integrate poorer,

7 inner-city neighborhoods into the greater metropoli8 tan region.

9 ‘‘(7) Any other activities the Secretary deter10 mines will further the purposes of this section.’’.

11 SEC. 207. LABOR REQUIREMENTS.

12 Section 286(b) of the Cranston-Gonzalez National

13 Affordable Housing Act (42 U.S.C. 12836(b)) is amended

14 by adding at the end the following new sentence: ‘‘Sub15 section (a) shall not apply in the case of housing for which

16 a site is acquired or for which the homebuyer is assisted,

17 but which is not constructed, using funds made available

18 under this subtitle.’’.

19 TITLE III—SUPPORTIVE

20 HOUSING PROGRAMS

21 SEC. 301. FUNDING FOR SUPPORTIVE HOUSING FOR THE

22 ELDERLY AND FOR PERSONS WITH DISABIL23 ITIES.

24 Section 601 of the Housing and Community Develop25 ment Act of 1992 (Public Law 102–550; 106 Stat. 3802)
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1 is amended by striking subsection (a) and inserting the

2 following new subsection:

3 ‘‘(a) AGGREGATE FUNDING.—There are authorized

4 to be appropriated for the purpose of providing assistance

5 in accordance with section 202 of the Housing Act of 1959

6 and section 811 of the Cranston-Gonzalez National Af7 fordable Housing Act, $1,948,000,000 for fiscal year 1995

8 and $1,954,000,000 for fiscal year 1996.’’.

9 SEC. 302. SUPPORTIVE HOUSING FOR THE ELDERLY.

10 (a) ELDER COTTAGE HOUSING UNITS.—Section

11 202(b) of the Housing Act of 1959 (12 U.S.C. 1701q(b))

12 is amended by inserting after the second sentence the fol13 lowing new sentence: ‘‘Such assistance may also be used

14 to finance the acquisition and installation of elder cottage

15 housing units that are small, freestanding, barrier-free,

16 energy efficient, removable and designed to be installed

17 adjacent to existing 1- to 4-family dwellings and are used

18 as supportive housing for the elderly in accordance with

19 this section.’’.

20 (b) DEFINITION OF ‘‘FRAIL ELDERLY’’.—Section

21 202(k)(3) of the Housing Act of 1959 (12 U.S.C.

22 1701q(k)(3)) is amended by striking the first sentence and

23 inserting the following new sentences: ‘‘The term ‘frail el24 derly’ means an elderly person whose level of functional

25 disability jeopardizes her or his ability to continue to live
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1 independently. The Secretary shall, to the extent possible,

2 develop assessment measures of functional disability that

3 are appropriate for purposes of this section and will pro4 vide for effective use of the program under this section

5 with other programs providing supportive services.’’.

6 (c) REPEAL OF DEMONSTRATION.—Section 806 of

7 the Cranston-Gonzalez National Affordable Housing Act

8 (12 U.S.C. 1701q note) is hereby repealed.

9 SEC. 303. SUPPORTIVE HOUSING FOR PERSONS WITH DIS10 ABILITIES.

11 (a) PHA’S AS ELIGIBLE SPONSORS.—Section 811 of

12 the Cranston-Gonzalez National Affordable Housing Act

13 (42 U.S.C. 8013) is amended—

14 (1) in the first sentence of subsection (f), by in15 serting ‘‘and public housing agencies’’ after ‘‘private

16 nonprofit organizations’’; and

17 (2) in subsection (k)—

18 (A) in paragraph (5), by striking ‘‘private

19 nonprofit organization’’ and inserting ‘‘eligible

20 sponsor’’; and

21 (B) by adding at the end the following new

22 paragraph:

23 ‘‘(10) The term ‘eligible sponsor’ means—
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1 ‘‘(A) in the case of capital advances under

2 subsection (b)(2) and project rental assistance

3 under subsections (b) (2) and (3)—

4 ‘‘(i) a private nonprofit organization;

5 and

6 ‘‘(ii) a public housing agency, but only

7 in the case of a jurisdiction for which the

8 Secretary determines that, during the 3-

9 year period ending upon the date of the

10 application of the agency for assistance

11 under subsection (b) (2) or (3)—

12 ‘‘(I) no private nonprofit organi13 zation has submitted an application

14 under subsection (f) for assistance for

15 a project located in such area; and

16 ‘‘(II) no private nonprofit organi17 zation has had such an application ap18 proved for a project located in such

19 area; and

20 ‘‘(B) in the case of tenant-based rental as21 sistance under subsection (b)(1)—

22 ‘‘(i) a private nonprofit organization;

23 and

24 ‘‘(ii) a public housing agency, but only

25 to the extent that such assistance is used
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1 for providing assistance in accordance with

2 an allocation plan for the agency under

3 section 7(f) of the United States Housing

4 Act of 1937.’’.

5 (b) RENTAL ASSISTANCE FOR EXISTING BUILD6 INGS.—Section 811 of the Cranston-Gonzalez National

7 Affordable Housing Act is amended—

8 (1) in subsection (d)(2), by adding at the end

9 the following new sentence: ‘‘The Secretary may

10 enter into contracts with private, nonprofit organiza11 tions to provide project rental assistance for sup12 portive housing for persons with disabilities, regard13 less of whether the housing is developed with capital

14 advances under this section.’’;

15 (2) in subsection (e)(1), by inserting ‘‘with cap16 ital advances’’ after ‘‘assisted’’;

17 (3) by striking the first 2 sentences of sub18 section (e)(2) and inserting the following new sen19 tences: ‘‘The initial term of a contract entered into

20 under subsection (d)(2) shall be 240 months for

21 housing developed with a capital advance, and shall

22 be not more than 60 months for housing not devel23 oped with a capital advance. The Secretary shall, to

24 the extent approved in appropriation Acts, extend
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1 any expiring contracts for a term of not less than 60

2 months.’’;

3 (4) in subsection (g)(1), by inserting ‘‘(if appli4 cable)’’ after ‘‘develop’’;

5 (5) in subsections (g)(3) and (g)(5), by insert6 ing ‘‘design or’’ before ‘‘proposed’’ each place it ap7 pears;

8 (6) in subsection (j), by striking paragraph (3)

9 and inserting the following new paragraph:

10 ‘‘(3) SITE CONTROL.—

11 ‘‘(A) CAPITAL ADVANCES.—In the case of

12 housing to be assisted with capital advances

13 under this section, an applicant may obtain

14 ownership or control of a suitable site different

15 from the site specified in the initial application.

16 If an applicant fails to obtain ownership or con17 trol of the site within 1 year after notification

18 of an award for assistance, the assistance shall

19 be recaptured and reallocated.

20 ‘‘(B) PROJECT RENTAL ASSISTANCE.—In

21 the case of housing to be assisted only with

22 project rental assistance, the applicant shall

23 have ownership or control of a suitable site at

24 the time of application. The Secretary may ap25 prove a change in site at any time from the
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1 date the application is submitted to the expira2 tion date of the rental assistance contract.’’;

3 (7) in subsection (j)(4), by striking ‘‘The’’ and

4 inserting the following: ‘‘In the case of housing as5 sisted with capital advances under this section, the’’;

6 (8) in the second sentence of subsection (k)(1),

7 by striking ‘‘the development of’’;

8 (9) in subsection (k)(5), by inserting before the

9 period at the end the following: ‘‘, or that receives

10 rental assistance under this section to operate a

11 project for supportive housing for persons with dis12 abilities’’; and

13 (10) in subsection (m)(3), by striking ‘‘(1)’’ and

14 inserting ‘‘(2)’’.

15 (c) AUTHORITY TO PROVIDE ASSISTANCE.—Section

16 811 of the Cranston-Gonzalez National Affordable Hous17 ing Act is amended—

18 (1) by striking subsection (b) and inserting the

19 following new subsection:

20 ‘‘(b) GENERAL AUTHORITY.—The Secretary may

21 provide assistance to eligible sponsors to expand the sup22 ply of supportive housing for persons with disabilities.

23 Such assistance shall be provided as—
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1 ‘‘(1) tenant-based rental assistance on behalf of

2 eligible persons with disabilities, in accordance with

3 subsection (d)(4);

4 ‘‘(2) capital advances in accordance with sub5 section (d)(1), together with contracts for project

6 rental assistance in accordance with subsection

7 (d)(2); or

8 ‘‘(3) contracts for project rental assistance in

9 accordance with subsection (d)(2).’’;

10 (2) in subsection (d)(1), by adding at the end

11 the following new sentences: ‘‘Capital advances may

12 be used to finance the acquisition, acquisition and

13 moderate rehabilitation, construction, reconstruction,

14 or moderate or substantial rehabilitation of housing,

15 including the acquisition from the Resolution Trust

16 Corporation, to be used as supportive housing for

17 persons with disabilities and may include real prop18 erty acquisition, site improvement, conversion, demo19 lition, relocation, and other expenses that the Sec20 retary determines are necessary to expand the sup21 ply of supportive housing for persons with disabil22 ities. Such assistance may also be used to finance

23 the acquisition and installation of cottage housing

24 units that are small, freestanding, barrier-free, en25 ergy efficient, removable and designed to be installed
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1 adjacent to existing 1- to 4-family dwellings and are

2 used as supportive housing for the persons with dis3 abilities in accordance with this section.’’;

4 (3) in subsections (d)(3), (e)(1), and (f), by in5 serting ‘‘or (3)’’ after ‘‘subsection (b)(2)’’ each place

6 it appears; and

7 (4) by striking paragraph (4) of subsection (d)

8 and inserting the following new paragraph:

9 ‘‘(4) TENANT-BASED RENTAL ASSISTANCE.—

10 ‘‘(A) ADMINISTRATION.—Tenant-based

11 rental assistance that is provided under sub12 section (b)(1) shall be administered under the

13 same rules governing rental assistance made

14 available under section 8 of the United States

15 Housing Act of 1937.

16 ‘‘(B) PUBLIC HOUSING AGENCIES.—A pub17 lic housing agency may provide tenant-based

18 rental assistance under subsection (b)(1) only if

19 the public housing agency has submitted, and

20 had approved, an allocation plan under section

21 7(f) of the United States Housing Act of 1937

22 and any such assistance made available to a

23 public housing agency shall be provided by the

24 agency in accordance with such allocation plan.

25 In determining the amount of assistance pro-
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1 vided under subsection (b)(1) for a public hous2 ing agency, the Secretary shall consider the

3 needs of the agency as described in the alloca4 tion plan.’’.

5 (d) TECHNICAL CHANGES.—Section 811(k)(6) of the

6 Cranston-Gonzalez National Affordable Housing Act is

7 amended by striking subparagraph (A) and inserting the

8 following new subparagraph:

9 ‘‘(A) that has received tax-exempt status

10 under section 501(c) (3) or (4) of the Internal

11 Revenue Code of 1986;’’.

12 SEC. 304. REVISED CONGREGATE SERVICES.

13 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

14 802(n)(1) of the Cranston-Gonzalez National Affordable

15 Housing Act (42 U.S.C. 8011(n)(1)) is amended by strik16 ing the matter preceding subparagraph (A) and inserting

17 the following:

18 ‘‘(1) AUTHORIZATION AND USE.—There are au19 thorized to be appropriated to carry out this section

20 $25,000,000 for fiscal year 1995, and $26,000,000

21 for fiscal year 1996, of which not more than—’’.

22 (b) MEAL FEES AND MATCHING AMOUNTS.—Section

23 802 of the Cranston-Gonzalez National Affordable Hous24 ing Act (42 U.S.C. 8011) is amended—
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1 (1) in subparagraph (A) of subsection (d)(7),

2 by striking ‘‘The fees for meals shall be in the fol3 lowing amounts:’’ and all that follows through the

4 end of the subparagraph; and

5 (2) in subsection (i)(1)—

6 (A) in subparagraph (A)(i), by striking

7 ‘‘50 percent’’ and inserting ‘‘25 percent’’;

8 (B) in subparagraph (A)(ii), by striking

9 ‘‘40 percent’’ and inserting ‘‘65 percent’’; and

10 (C) in subparagraph (C), by striking ‘‘10

11 percent’’ and inserting ‘‘25 percent’’.

12 (c) DEFINITION OF ‘‘FRAIL ELDERLY’’.—Section

13 802(k)(8) of the Cranston-Gonzalez National Affordable

14 Housing Act is amended by striking the first sentence and

15 inserting the following new sentences: ‘‘The term ‘frail el16 derly’ means an elderly person whose level of functional

17 disability jeopardizes her or his ability to continue to live

18 independently. The Secretary shall, to the extent possible,

19 develop assessment measures of functional disability that

20 are appropriate for purposes of this section and will pro21 vide for effective use of the program under this section

22 with other programs providing supportive services.’’.
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1 SEC. 305. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER2 LY INDEPENDENCE.

3 (a) SECTION 8 ASSISTANCE.—The first sentence of

4 section 803(j) of the Cranston-Gonzalez National Afford5 able Housing Act (42 U.S.C. 8012(j)) is amended to read

6 as follows: ‘‘The budget authority available under section

7 5(c) of the United States Housing Act of 1937 for assist8 ance under section 8 of such Act is authorized to be in9 creased by $25,000,000 on or after October 1, 1994, and

10 by $25,000,000 on or after October 1, 1995.’’.

11 (b) SUPPORTIVE SERVICES AUTHORIZATION.—The

12 first sentence of section 803(k) of the Cranston-Gonzalez

13 National Affordable Housing Act (42 U.S.C. 8012(k)) is

14 amended to read as follows: ‘‘There are authorized to be

15 appropriated for the Secretary to carry out the responsibil16 ities for supportive services under the demonstrations

17 under this section $7,000,000 to become available in fiscal

18 year 1995, and $7,000,000 to become available in fiscal

19 year 1996.’’.

20 (c) SUPPORTIVE SERVICES CONTRIBUTIONS.—Sec21 tion 803(c)(1) of the Cranston-Gonzalez National Afford22 able Housing Act is amended—

23 (1) in subparagraph (A), by striking ‘‘40 per24 cent’’ and inserting ‘‘65 percent’’; and

25 (2) in subparagraph (B), by striking ‘‘50 per26 cent’’ and inserting ‘‘25 percent’’.
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1 (d) DEFINITION OF ‘‘FRAIL ELDERLY’’.—Section

2 803(g)(3) of the Cranston-Gonzalez National Affordable

3 Housing Act is amended by striking the first sentence and

4 inserting the following new sentences: ‘‘The term ‘frail el5 derly person’ means an elderly person whose level of func6 tional disability jeopardizes her or his ability to continue

7 to live independently. The Secretary shall, to the extent

8 possible, develop assessment measures of functional dis9 ability that are appropriate for purposes of this section

10 and will provide for effective use of the program under

11 this section with other programs providing supportive

12 services.’’.

13 (e) AMENDMENT TO HEADING.—Section 803 of the

14 Cranston-Gonzalez National Affordable Housing Act (42

15 U.S.C. 8012) is amended by striking the section designa16 tion and heading and inserting the following:

17 ‘‘SEC. 803. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER18 LY INDEPENDENCE.’’.

19 SEC. 306. HOUSING OPPORTUNITIES FOR PERSONS WITH

20 AIDS.

21 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

22 863 of the Cranston-Gonzalez National Affordable Hous23 ing Act (42 U.S.C. 12912) is amended to read as follows:
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1 ‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated to carry out

3 this subtitle $212,000,000 for fiscal year 1995 and

4 $225,000,000 for fiscal year 1996.’’.

5 (b) TECHNICAL ASSISTANCE.—Section 854(c)(3) of

6 the Cranston-Gonzalez National Affordable Housing Act

7 (42 U.S.C. 12903(c)(3)) is amended—

8 (1) in subparagraph (A)—

9 (A) in clause (i), by striking ‘‘and’’ at the

10 end;

11 (B) in clause (ii), by striking the period at

12 the end and inserting ‘‘; and’’; and

13 (C) by adding at the end the following new

14 clause:

15 ‘‘(iii) nonprofit organizations that pro16 vide technical assistance on a national, re17 gional, or State-wide basis to nonprofit or18 ganizations carrying out eligible activities

19 under section 855 for eligible persons, to

20 provide such technical assistance, except

21 that not more than 2 percent of the

22 amounts available in any fiscal year for al23 location under this paragraph shall be used

24 as provided in this clause.’’; and
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1 (2) in subparagraph (B), by striking ‘‘this para2 graph’’ and inserting ‘‘clauses (i) and (ii) of sub3 paragraph (A)’’.

4 (c) COOPERATION.—

5 (1) IN GENERAL.—Section 856(c) of the Cran6 ston-Gonzalez National Affordable Housing Act (42

7 U.S.C. 12905(c)) is amended by striking ‘‘The recip8 ient’’ and all that follows and inserting the following:

9 ‘‘The recipient shall establish and implement a proc10 ess for ensuring coordination and community input

11 in planning for and providing services assisted with

12 amounts provided under this subtitle. The planning

13 process shall include consultation and coordination

14 with the agencies of the relevant State and local gov15 ernments responsible for services for eligible persons

16 in the area served by the applicant and with other

17 public and private organizations and agencies pro18 viding services for such eligible persons (including

19 individuals with human immunodeficiency virus dis20 ease), including community-based and AIDS service

21 organizations, providers of social services, providers

22 of mental health care, providers of substance abuse

23 treatment services, nonprofit providers of housing

24 for eligible persons, and affected communities.’’.
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1 (2) APPLICATION.—Section 854(d) of the Cran2 ston-Gonzalez National Affordable Housing Act (42

3 U.S.C. 12903(d)) is amended—

4 (A) in paragraph (5), by striking ‘‘and’’ at

5 the end;

6 (B) by redesignating paragraph (6) as

7 paragraph (7); and

8 (C) by inserting after paragraph (5) the

9 following new paragraph:

10 ‘‘(6) a description of the activities to be under11 taken in fulfilling the requirements under section

12 856(c); and’’.

13 (d) ADMINISTRATIVE EXPENSES.—Section 856(g)(2)

14 of the Cranston-Gonzalez National Affordable Housing

15 Act (42 U.S.C. 12905(g)(2)) is amended—

16 (1) by striking ‘‘title’’ and inserting ‘‘subtitle’’;

17 and

18 (2) by striking ‘‘, including the costs of staff

19 necessary to carry out eligible activities’’.

20 SEC. 307. SERVICE COORDINATORS.

21 (a) PUBLIC HOUSING.—Section 9 of the United

22 States Housing Act of 1937 (42 U.S.C. 1437g) is amend23 ed in subsection (a)(1)(B)(ii)—

24 (1) in the 1st sentence, by striking ‘‘Annual’’

25 and all that follows through ‘‘such project,’’ and in-
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1 serting ‘‘To the extent amounts are made available

2 pursuant to section 5(c) for carrying out this clause,

3 the Secretary may increase the annual contributions

4 provided under this section to any public housing

5 agency for any project to provide’’; and

6 (2) by striking the last 2 sentences.

7 (b) OTHER FEDERALLY ASSISTED MULTIFAMILY

8 HOUSING.—Section 676(c) of the Housing and Commu9 nity Development Act of 1992 (42 U.S.C. 13632(c)) is

10 amended to read as follows:

11 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There

12 are authorized to be appropriated for grants under this

13 section such sums as may be necessary for each of fiscal

14 years 1995 and 1996.’’.

15 TITLE IV—MORTGAGE INSUR16 ANCE AND SECONDARY

17 MORTGAGE MARKET

18 Subtitle A—Mortgage Insurance

19 and Loan Guarantee Programs

20 SEC. 401. LIMITATION ON INSURANCE AUTHORITY.

21 Section 531(b) of the National Housing Act (12

22 U.S.C. 1735f–9(b)) is amended to read as follows:

23 ‘‘(b) Notwithstanding any other provision of law and

24 subject only to the absence of qualified requests for insur25 ance, to the authority provided in this Act, and to the limi-
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1 tation in subsection (a), the Secretary shall enter into

2 commitments to insure mortgages under this Act with an

3 aggregate principal amount of $105,000,000,000 during

4 fiscal year 1995 and $91,000,000,000 during fiscal year

5 1996.’’.

6 SEC. 402. FEDERAL HOUSING ADMINISTRATION ADVISORY

7 BOARD.

8 Section 202(b)(11) of the National Housing Act (12

9 U.S.C. 1708(b)(11)) is amended by striking ‘‘January 1,

10 1995.’’ and inserting ‘‘January 1, 1997.’’.

11 SEC. 403. MAXIMUM MORTGAGE AMOUNT CEILING FOR SIN12 GLE FAMILY MORTGAGES.

13 Subparagraph (A) of the first sentence of section

14 203(b)(2) of the National Housing Act (12 U.S.C.

15 1709(b)(2)(A)) is amended by striking clause (ii) and in16 serting the following new clause:

17 ‘‘(ii) 85 percent of the dollar amount

18 limitation determined under section

19 305(a)(2) of the Federal Home Loan

20 Mortgage Corporation Act (as adjusted an21 nually under such section) for a residence

22 of the applicable size;’’.
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1 SEC. 404. MAXIMUM MORTGAGE AMOUNT FLOOR FOR SIN2 GLE FAMILY MORTGAGE INSURANCE.

3 Subparagraph (A) of the first sentence of section

4 203(b)(2) of the National Housing Act (12 U.S.C.

5 1709(b)(2)(A)) is amended by striking ‘‘the dollar amount

6 limitation in effect under this section for the area on May

7 12, 1992’’ and inserting the following: ‘‘50 percent of the

8 dollar amount limitation determined under section

9 305(a)(2) of the Federal Home Loan Mortgage Corpora10 tion Act (as adjusted annually under such section) for a

11 residence of the applicable size’’.

12 SEC. 405. CALCULATION OF DOWNPAYMENT.

13 Section 203(b)(2) of the National Housing Act (12

14 U.S.C. 1709(b)(2)) is amended—

15 (1) by striking subparagraph (B) and inserting

16 the following new subparagraph:

17 ‘‘(B) except as otherwise provided in this

18 paragraph (2), not in excess of—

19 ‘‘(i) in the case of a mortgage for a

20 property with an appraised value equal to

21 or less than $50,000, 98.75 percent of the

22 appraised value of the property,

23 ‘‘(ii) in the case of a mortgage for a

24 property with an appraised value in excess

25 of $50,000 but not in excess of $125,000,
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1 97.65 percent of the appraised value of the

2 property,

3 ‘‘(iii) in the case of a mortgage for a

4 property with an appraised value in excess

5 of $125,000, 97.15 percent of the ap6 praised value of the property, or

7 ‘‘(iv) notwithstanding clauses (ii) and

8 (iii), in the case of a mortgage for a prop9 erty with an appraised value in excess of

10 $50,000 and which is located in a State for

11 which the average closing cost exceeds 3.25

12 percent of the average, for the State, of

13 the sale price of properties located in the

14 State for which mortgages have been exe15 cuted, 97.75 percent of the appraised value

16 of the property,

17 plus the amount of the mortgage insurance pre18 mium paid at the time the mortgage is in19 sured.’’;

20 (2) in the 1st sentence of the matter following

21 subparagraph (B), by inserting before the period at

22 the end the following: ‘‘, and the term ‘average clos23 ing cost’ means, with respect to a State, the average,

24 for mortgages executed for properties that are lo25 cated within the State, of the total amounts (as de-
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1 termined by the Secretary) of initial service charges,

2 appraisal, inspection, and other fees (as the Sec3 retary shall approve) that are paid in connection

4 with such mortgages’’;

5 (3) by striking the 2d sentence of the matter

6 following subparagraph (B); and

7 (4) in penultimate undesignated paragraph—

8 (A) in the 2d sentence, by striking ‘‘the

9 preceding sentence’’ and inserting ‘‘this sub10 section’’; and

11 (B) by striking the 1st sentence.

12 SEC. 406. ELIMINATION OF RESTRICTIONS REGARDING

13 NEW CONSTRUCTION.

14 (a) IN GENERAL.—Section 203(b)(2) of the National

15 Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the

16 matter following subparagraph (B)—

17 (1) in the 1st undesignated paragraph, by strik18 ing ‘‘Notwithstanding any other provision of this

19 section,’’ and all that follows through ‘‘beginning of

20 construction.’’; and

21 (2) by striking the 2d undesignated paragraph

22 (relating to mortgage insurance amounts for resi23 dences having solar energy systems).

24 (b) REPEAL OF AUTHORITY TO EXPEND AMOUNTS

25 FROM INSURANCE FUND TO CORRECT SUBSTANTIAL DE-
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1 FECTS.—Section 518 of the National Housing Act (12

2 U.S.C. 1735b) is hereby repealed.

3 SEC. 407. AUTHORITY TO USE AMOUNTS BORROWED FROM

4 FAMILY MEMBERS FOR DOWNPAYMENTS.

5 (a) IN GENERAL.—Section 203(b)(9) of the National

6 Housing Act (12 U.S.C. 1709(b)(9)) is amended by insert7 ing before the period at the end the following: ‘‘: Provided

8 further, That for purposes of this paragraph, the Secretary

9 shall consider as cash or its equivalent any amounts bor10 rowed from a family member (as such term is defined in

11 section 201), subject only to the requirements that, in any

12 case in which the repayment of such borrowed amounts

13 is secured by a lien against the property, such lien shall

14 be subordinate to the mortgage and the sum of the prin15 cipal obligation of the mortgage and the obligation secured

16 by such lien may not exceed 100 percent of the appraised

17 value of the property plus any initial service charges, ap18 praisal, inspection, and other fees in connection with the

19 mortgage’’.

20 (b) DEFINITION OF FAMILY MEMBER.—Section 201

21 of the National Housing Act (12 U.S.C. 1707) is amended

22 by adding at the end the following new subsections:

23 ‘‘(e) The term ‘family member’ means, with respect

24 to a mortgagor under such section, a child, parent, or

25 grandparent of the mortgagor (or the mortgagor’s
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1 spouse). In determining whether any of the relationships

2 referred to in the preceding sentence exist, a legally adopt3 ed son or daughter of an individual (and a child who is

4 a member of an individual’s household, if placed with such

5 individual by an authorized placement agency for legal

6 adoption by such individual), and a foster child of an indi7 vidual, shall be treated as a child of such individual by

8 blood.

9 ‘‘(f) The term ‘child’ means, with respect to a mort10 gagor under such section, a son, stepson, daughter, or

11 stepdaughter of such mortgagor.’’.

12 SEC. 408. INDEMNIFICATION FOR MULTIFAMILY HOUSING

13 PROJECT MANAGERS.

14 Section 207(l) of the National Housing Act (12

15 U.S.C. 1713(l)) is amended by inserting before the period

16 at the end the following: ‘‘: Provided further, That, for

17 properties acquired by the Secretary under this section

18 and for properties secured by any mortgage assigned and

19 transferred to or held by the Secretary, the Secretary may

20 indemnify management contractors against claims by

21 third persons for death, bodily injury, or loss of or damage

22 to property on such terms as the Secretary determines ap23 propriate’’.
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1 SEC. 409. EXTENSION OF MULTIFAMILY HOUSING MORT2 GAGE AUCTION PROVISIONS.

3 (a) EXTENSION.—The first sentence of section

4 221(g)(4)(C)(viii) of the National Housing Act (12 U.S.C.

5 1715l(g)(4)(C)(viii)) is amended by striking ‘‘September

6 30, 1995’’ and inserting ‘‘December 31, 2005’’.

7 (b) BUDGET COMPLIANCE.—Section 221(g)(4)(C) of

8 the National Housing Act (12 U.S.C. 1715l(g)(4)(C)) is

9 amended by adding at the end the following new clause:

10 ‘‘(ix) This subparagraph shall be effective for

11 any fiscal year only to such extent or in such

12 amounts as are or have been provided in appropria13 tion Acts for such fiscal year.’’.

14 SEC. 410. STREAMLINED REFINANCING FOR HUD-HELD

15 MORTGAGES.

16 (a) IN GENERAL.—Section 223(a) of the National

17 Housing Act (12 U.S.C. 1715n) is amended—

18 (1) in paragraph (7), by striking the colon pre19 ceding ‘‘Provided further,’’ and all that follows

20 through ‘‘and the mortgagee’’;

21 (2) by redesignating paragraph (8) as para22 graph (9);

23 (3) by inserting after paragraph (7) the follow24 ing new paragraph:

25 ‘‘(8) given to refinance a mortgage held by the

26 Secretary, upon such terms and conditions as the
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1 Secretary may prescribe, covering property on which

2 there is located a 1- to 4-family residence, or a 1-

3 family unit in a condominium project, which mort4 gage was formerly insured under this Act and subse5 quently assigned to the Secretary: Provided, That

6 the mortgagor has not previously refinanced a mort7 gage pursuant to this paragraph: Provided further,

8 That the mortgagor has made all payments due

9 under the note secured by the existing mortgage and

10 all payments due under the note for at least the pre11 vious 6 months, or the mortgagor is under a forbear12 ance agreement and has made all payments due

13 under the note secured by the existing mortgage for

14 at least the previous 6 months: Provided further,

15 That the principal amount of the refinancing mort16 gage may not exceed the outstanding principal bal17 ance of the existing mortgage by more than addi18 tional amounts owed by the mortgagor due to the

19 delinquency and to the receipt of assignment assist20 ance under section 230: Provided further, That the

21 monthly payment due under the refinancing mort22 gage may not exceed the monthly payment due

23 under the existing mortgage: Provided further, That

24 the refinancing mortgage may have a term not more

25 than 12 years in excess of the unexpired term of the
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1 assigned mortgage: Provided further, That the refi2 nancing mortgage may be insured under section

3 203(b) or 221(d)(2) of this Act, at the option of the

4 mortgagee, or under section 234(c) of this Act in the

5 case of a condominium: Provided further, That a re6 financing mortgage insured under section 221(d)(2)

7 shall involve a principal obligation in an amount not

8 to exceed 50 percent of the applicable dollar limita9 tion for a 1- to 4-family residence under section

10 203(b)(2): Provided further, That the authority

11 under this paragraph to refinance a mortgage shall

12 terminate 30 months after the date of enactment of

13 this Act: Provided further, That the total number of

14 mortgages refinanced under this paragraph may not

15 exceed 20,000; or’’; and

16 (4) by adding at the end the following new

17 flush material:

18 ‘‘A mortgage of the character described in paragraphs (1)

19 through (6) of this subsection shall have a maturity and

20 a principal obligation not in excess of the maximums pre21 scribed under the applicable section or title of this Act,

22 except that in no case may the principal obligation of a

23 mortgage referred to in paragraph (5) of this subsection

24 exceed 90 percent of the appraised value of the mortgage
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1 property, and shall bear interest at such rate as may be

2 agreed upon by the mortgagor and the mortgagee.’’.

3 (b) IMPLEMENTATION.—The Secretary of Housing

4 and Urban Development may implement the authority to

5 refinance a mortgage held by the Secretary under section

6 223(a)(8) of the National Housing Act, as added by the

7 amendment made by subsection (a)(3) of this section, by

8 notice published in the Federal Register setting forth such

9 requirements as may be necessary.

10 SEC. 411. HOME EQUITY CONVERSION MORTGAGES FOR EL11 DERLY HOMEOWNERS.

12 (a) EXTENSION OF PROGRAM.—The first sentence of

13 section 255(g) of the National Housing Act (12 U.S.C.

14 1715z–20(g)) is amended by striking ‘‘September 30,

15 1995’’ and inserting ‘‘September 30, 2000’’.

16 (b) ELIGIBLE RESIDENCES.—Section 255(d)(3) of

17 the National Housing Act (12 U.S.C. 1715z–20(d)(3)) is

18 amended to read as follows:

19 ‘‘(3) be secured by a dwelling that is designed

20 principally for a 1- to 4-family residence in which

21 the mortgagor occupies 1 of the units;’’.

22 (c) EXPANSION OF PROGRAM.—The second sentence

23 of section 255(g) of the National Housing Act (12 U.S.C.

24 1715z–20(g)) is amended by striking ‘‘25,000’’ and insert25 ing ‘‘50,000’’.
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1 (d) REPORTS.—Section 255(k) of the National Hous2 ing Act is amended by adding at the end the following

3 new sentences: ‘‘Each biennial report shall also include the

4 results of a survey conducted during the period since the

5 most recent report under this subsection to determine (A)

6 the financial and other needs of elderly homeowners that

7 cause such homeowners to consider obtaining home equity

8 conversion mortgages, and (B) the extent of consumer sat9 isfaction regarding the program under this section and

10 counseling provided pursuant to the requirements of this

11 section. In conducting the survey, the Secretary shall con12 sult a representative sample of mortgagors of mortgages

13 insured under this section and of elderly homeowners who

14 have expressed interest in obtaining, but did not obtain,

15 such mortgages.’’.

16 (e) AVOIDANCE OF PREEMPTION OF STATE LAW.—

17 Section 255(b)(3) of the National Housing Act is amend18 ed—

19 (1) in clause (B), by striking ‘‘, notwithstand20 ing any State constitution, law, or regulation’’; and

21 (2) by adding at the end the following new sen22 tence: ‘‘Notwithstanding any other provision of this

23 section, the Secretary may not provide insurance for

24 a home equity conversion mortgage in the State of

25 Texas if under the State constitution, or a law or
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1 regulation of such State, such mortgages are prohib2 ited or foreclosure or forced sale of the property sub3 ject to such a mortgage is prohibited.’’.

4 SEC. 412. SINGLE FAMILY RISK-SHARING MORTGAGE IN5 SURANCE PROGRAM.

6 (a) IN GENERAL.—Title II of the National Housing

7 Act (12 U.S.C. 1707 et seq.) is amended by adding at

8 the end the following new section:

9 ‘‘SINGLE FAMILY RISK-SHARING WITH STATE AND LOCAL

10 AGENCIES

11 ‘‘SEC. 256. (a) PURPOSES.—The purposes of the pro12 gram under this section are (1) to increase the availability

13 of single family mortgage financing in areas where there

14 is need for mortgage insurance under this Act that cannot

15 be met due to particularly high average median house

16 prices in the area, and (2) to foster arrangements with

17 State and local agencies to share the risk of mortgage in18 surance.

19 ‘‘(b) AUTHORITY.—Notwithstanding any other provi20 sion of this Act inconsistent with this section, the Sec21 retary may insure and make commitments to insure under

22 this section mortgages on single family properties under

23 risk-sharing mortgage insurance programs established

24 with 1 or more States or agencies. Under such programs,

25 the Secretary shall insure a portion of the mortgage, and

26 the State or local agency shall insure the remainder or
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1 (at the discretion of the agency) a portion of the remain2 der and provide for private mortgage insurance companies

3 to insure any portion of the remainder not insured by the

4 agency. The portion of the mortgage insured under this

5 section by the Secretary and the State or local agency,

6 in the aggregate, may not exceed 35 percent of the out7 standing principal obligation of the mortgage (and such

8 fees, interest, and other expenses determined by the Sec9 retary to be appropriate).

10 ‘‘(c) ELIGIBLE MORTGAGES.—The Secretary may in11 sure under this section, and make commitments to insure

12 under this section, only mortgages that—

13 ‘‘(1) are executed—

14 ‘‘(A) in connection with the acquisition of

15 a single family property; or

16 ‘‘(B) for the refinancing of a mortgage

17 that was previously insured under this section;

18 and

19 ‘‘(2) involve a property located in an area—

20 ‘‘(A) for which the amount under clause

21 (ii) of section 203(b)(2)(A) is less than the

22 amount determined under clause (i) of such sec23 tion for a residence of the applicable size; and

24 ‘‘(B) that has a State agency that—
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1 ‘‘(i) is fully authorized under State

2 and local laws and is adequately capital3 ized, in the determination of the Secretary,

4 to carry out this section; and

5 ‘‘(ii)(I) carries the designation of ‘top

6 tier’ or its equivalent, as evaluated by

7 Standard and Poors or any other nation8 ally recognized rating agency; or

9 ‘‘(II) receives a rating of ‘A’ for its

10 general obligation bonds from a nationally

11 recognized rating agency.

12 ‘‘(d) APPLICATIONS.—

13 ‘‘(1) APPROVAL.—The Secretary may approve

14 an application submitted by a State or local agency

15 to establish a risk-sharing program under this sec16 tion, only if the Secretary determines that the State

17 or local agency has demonstrated that—

18 ‘‘(A) it has the legal authority under State

19 law and, where applicable, local law, to partici20 pate in the program under this section;

21 ‘‘(B) it has carried out, or has the poten22 tial to carry out, a financially sound, efficient,

23 and effective mortgage insurance program; and
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1 ‘‘(C) it has the ongoing administrative and

2 financial capacity necessary to carry out a pro3 gram under this section.

4 ‘‘(2) CANCELLATION OF APPROVAL.—The Sec5 retary may cancel approval of a State or local agen6 cy under this section for a violation of requirements

7 and procedures under the risk-sharing agreement be8 tween the State or local agency and the Secretary or

9 for other good cause, by giving notice to the State

10 or local agency. The cancellation shall be effective

11 upon receipt of the notice by the agency or at a later

12 date specified by the Secretary. A decision by the

13 Secretary to cancel approval shall be final and con14 clusive and shall not be subject to judicial review.

15 ‘‘(e) DELEGATION OF AUTHORITY TO INSURE TO

16 STATE AND LOCAL AGENCIES.—Pursuant to a risk-shar17 ing agreement with a State or local agency, the Secretary

18 shall delegate the authority to insure and make commit19 ments to insure the portion of mortgages to be insured

20 by the Secretary under this section to the State or local

21 agency. The risk-sharing agreement shall contain such

22 other matters as the Secretary and the State or local agen23 cy agree.

24 ‘‘(f) UNDERWRITING STANDARDS AND LOAN TERMS

25 AND CONDITIONS.—The State or local agency shall adopt
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1 underwriting standards and loan terms and conditions for

2 purposes of underwriting loans to be insured under this

3 section. Such standards shall be at least as stringent as

4 the standards pursuant to this Act for mortgages insured

5 under section 203 and shall be subject to review and ap6 proval by the Secretary.

7 ‘‘(g) MORTGAGE INSURANCE PREMIUMS.—

8 ‘‘(1) REQUIREMENT.—The State or local agen9 cy shall require the payment of mortgage insurance

10 premiums by mortgagors.

11 ‘‘(2) SHARES.—The Secretary shall establish

12 policies and procedures for the sharing of premiums

13 between the Secretary and the State or local agency,

14 based on the relative risk to, and administrative

15 costs of, the Secretary and the State or local agency.

16 The share paid to the Secretary shall not be less

17 than an amount necessary to cover the risk to, and

18 administrative costs of, the Secretary.

19 ‘‘(h) LIMITATIONS ON PRINCIPAL MORTGAGE

20 AMOUNT.—

21 ‘‘(1) INSURED PORTION.—The portion of the

22 mortgage insured under this section by the Sec23 retary may not exceed an amount equal to the lesser

24 of (A) 80 percent of the appraised value of the prop25 erty, or (B) the maximum amount the Secretary
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1 may insure under section 203(b) of this Act for the

2 area (but not including any amount for a mortgage

3 insurance premium).

4 ‘‘(2) TOTAL PRINCIPAL AMOUNT.—The total

5 principal amount of a mortgage insured under this

6 section by the Secretary and the State or local agen7 cy (A) shall exceed the maximum amount the Sec8 retary may insure under subparagraph (A) of the

9 first sentence of section 203(b)(2) for the area, and

10 (B) may not exceed the conforming loan limitation

11 determined under section 305(a)(2) of the Federal

12 Home Loan Mortgage Corporation Act for a resi13 dence of the applicable size, as adjusted annually.

14 ‘‘(3) LOAN-TO-VALUE RATIO.—The principal

15 obligation of a mortgage may not exceed an amount

16 determined in accordance with subparagraph (B) of

17 the first sentence of section 203(b)(2) plus the mort18 gage insurance premium.

19 ‘‘(4) REFINANCING MORTGAGES.—Notwith20 standing paragraph (2)(A) or (3), in the case of refi21 nancing of an existing mortgage that was previously

22 insured under this section, the principal obligation of

23 a refinancing mortgage may not exceed the out24 standing principal balance of the existing mortgage

25 plus any mortgage insurance premium.
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1 ‘‘(i) INSURANCE CLAIMS.—

2 ‘‘(1) PROCEDURE.—In the case of a default and

3 foreclosure of a mortgage insured under this section,

4 the mortgagee may file a claim with the State or

5 local agency for insurance benefits in accordance

6 with requirements established by the State or local

7 agency and approved by the Secretary. The agency

8 shall pay the full amount of the claim owed to the

9 mortgagee. If the loss on the insured mortgage ex10 ceeds the amount of insurance by the agency, the

11 Secretary shall reimburse the agency for the dif12 ference.

13 ‘‘(2) MUTUAL MORTGAGE INSURANCE FUND.—

14 The insurance of a mortgage under this section by

15 the Secretary shall be an obligation of the Mutual

16 Mortgage Insurance Fund created pursuant to sec17 tion 205.

18 ‘‘(j) INAPPLICABILITY OF THE ASSIGNMENT PRO19 GRAM.—Section 230 shall not apply to mortgages insured

20 under the program authorized by this section.

21 ‘‘(k) RESTRICTION ON GNMA SECURITIZATION.—

22 The Government National Mortgage Association shall not

23 securitize any loans insured under this section.

24 ‘‘(l) DEFINITIONS.—For purposes of this section, the

25 following definitions shall apply:
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1 ‘‘(1) The term ‘local agency’ means an agency

2 of a unit of general local government, as defined by

3 the Secretary, that has the authority to insure mort4 gages and to participate with the Secretary in the

5 single family risk-sharing program under this sec6 tion, or an agency or instrumentality of a local agen7 cy if the agency or instrumentality has such author8 ity.

9 ‘‘(2) The term ‘State agency’ means an agency

10 of a State that has the authority to insure mort11 gages and to participate with the Secretary in the

12 single family risk-sharing program under this sec13 tion, or an agency or instrumentality of a State

14 agency if the agency or instrumentality has such au15 thority.

16 ‘‘(3) The term ‘single family property’ means a

17 property upon which there is located a dwelling de18 signed principally for occupancy by 1 family, and in19 cludes a condominium and a cooperative.

20 ‘‘(4) The term ‘State’ means the several States,

21 the Commonwealth of Puerto Rico, the District of

22 Columbia, Guam, the Commonwealth of the North23 ern Mariana Islands, American Samoa, and the Vir24 gin Islands.’’.
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1 (b) REGULATIONS.—The Secretary of Housing and

2 Urban Development shall issue any regulations necessary

3 to implement the amendment made by subsection (a).

4 SEC. 413. DELEGATION OF SINGLE FAMILY MORTGAGE IN5 SURING AUTHORITY TO DIRECT ENDORSE6 MENT MORTGAGEES.

7 Title II of the National Housing Act (12 U.S.C. 1707

8 et seq.), as amended by the preceding provisions of this

9 Act, is further amended by adding at the end the following

10 new section:

11 ‘‘DELEGATION OF INSURING AUTHORITY TO DIRECT

12 ENDORSEMENT MORTGAGEES

13 ‘‘SEC. 257. (a) AUTHORITY.—The Secretary may del14 egate, to one or more mortgagees approved by the Sec15 retary under the direct endorsement program, the author16 ity of the Secretary under this Act to insure mortgages

17 involving property upon which there is located a dwelling

18 designed principally for occupancy by 1 to 4 families.

19 ‘‘(b) CONSIDERATIONS.—In determining whether to

20 delegate authority to a mortgagee under this section, the

21 Secretary shall consider the experience and performance

22 of the mortgagee under the direct endorsement program,

23 the default rate of insured mortgages originated by the

24 mortgagee compared to the default rate of all insured

25 mortgages in comparable markets, and such other factors
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1 as the Secretary determines appropriate to minimize risk

2 of loss to the insurance funds under this Act.

3 ‘‘(c) ENFORCEMENT OF INSURANCE REQUIRE4 MENTS.—

5 ‘‘(1) IN GENERAL.—If the Secretary determines

6 that a mortgage insured by a mortgagee pursuant to

7 delegation of authority under this section was not

8 originated in accordance with the requirements es9 tablished by the Secretary, and the Secretary pays

10 an insurance claim with respect to the mortgage

11 within a reasonable period specified by the Sec12 retary, the Secretary may require the mortgagee ap13 proved under this section to indemnify the Secretary

14 for the loss.

15 ‘‘(2) FRAUD OR MISREPRESENTATION.—If

16 fraud or misrepresentation was involved in connec17 tion with the origination, the Secretary may require

18 the mortgagee approved under this section to indem19 nify the Secretary for the loss regardless of when an

20 insurance claim is paid.

21 ‘‘(d) TERMINATION OF MORTGAGEE’S AUTHORITY.—

22 If a mortgagee to which the Secretary has made a delega23 tion under this section violates the requirements and pro24 cedures established by the Secretary or the Secretary de25 termines that other good cause exists, the Secretary may
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1 cancel a delegation of authority under this section to the

2 mortgagee by giving notice to the mortgagee. Such a can3 cellation shall be effective upon receipt of the notice by

4 the mortgagee or at a later date specified by the Secretary.

5 A decision by the Secretary to cancel a delegation shall

6 be final and conclusive and shall not be subject to judicial

7 review.

8 ‘‘(e) REQUIREMENTS AND PROCEDURES.—Before ap9 proving a delegation under this section, the Secretary shall

10 issue regulations establishing appropriate requirements

11 and procedures, including requirements and procedures

12 governing the indemnification of the Secretary by the

13 mortgagee.’’.

14 SEC. 414. ELIGIBILITY OF MORTGAGES ON HOMES ON

15 LEASED LAND OWNED BY COMMUNITY LAND

16 TRUSTS.

17 Title II of the National Housing Act (12 U.S.C. 1707

18 et seq.), as amended by the preceding provisions of this

19 Act, is further amended by adding at the end the following

20 new section:

21 ‘‘ELIGIBILITY OF MORTGAGES ON HOMES ON LEASED

22 LAND OWNED BY COMMUNITY LAND TRUSTS

23 ‘‘SEC. 258. (a) ELIGIBILITY FOR INSURANCE.—In

24 providing mortgage insurance under any provision of this

25 title for a mortgage covering a 1- to 4-family residence,

26 the Secretary may insure a mortgage covering such a resi-
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1 dence which is located on property owned by a community

2 land trust without regard to the extent to which the resale

3 price of the residence is restricted or the manner in which

4 such price is established.

5 ‘‘(b) LIMITATION ON RESTRICTIONS.—The Secretary

6 may not, as a condition of such insurance, establish any

7 requirements regarding the resale price of residences on

8 land owned by a community land trust, except that the

9 Secretary may require that a ground lease or other docu10 ment establishing legally enforceable restrictions or limita11 tions on the resale price provide that the restrictions or

12 limitations be cancelable in the event of foreclosure or de13 livery of a deed in lieu of foreclosure (or assignment).

14 ‘‘(c) DEFINITION OF ‘COMMUNITY LAND TRUST’.—

15 For purposes of this section, the term ‘community land

16 trust’ has the meaning given the term in section 233 of

17 the Cranston-Gonzalez National Affordable Housing

18 Act.’’.

19 SEC. 415. INSURANCE OF 2-STEP SINGLE FAMILY MORT20 GAGES.

21 Title II of the National Housing Act (12 U.S.C. 1701

22 et seq.), as amended by the preceding provisions of this

23 Act, is further amended by adding at the end the following

24 new section:
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1 ‘‘2-STEP SINGLE FAMILY MORTGAGES

2 ‘‘SEC. 259. (a) AUTHORITY.—After making the find3 ing required under subsection (d), the Secretary may in4 sure under any provision of this title a mortgage involving

5 property upon which there is located a dwelling designed

6 principally for occupancy by 1 to 4 families, where the

7 mortgage provides that the effective rate of interest

8 charged is—

9 ‘‘(1) fixed for the duration of a specified period

10 that consists of not less than the first 5 years of the

11 mortgage term;

12 ‘‘(2) adjusted by the mortgagee upon the expi13 ration of the specified period referred to in para14 graph (1) for the mortgage; and

15 ‘‘(3) for the term of the mortgage remaining

16 after such adjustment—

17 ‘‘(A) fixed at the adjusted rate established

18 pursuant to paragraph (2); or

19 ‘‘(B) periodically adjusted by the mortga20 gee.

21 ‘‘(b) REDETERMINATION OF RATE.—For each mort22 gage insured pursuant to this section, the adjustment of

23 the effective rate of interest pursuant to subsection (a)(2)

24 may be accomplished through adjustments in the monthly

25 payment amount, the outstanding principal balance, or the
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1 mortgage term, or a combination of such factors, except

2 that in no case may any extension of a mortgage term

3 result in a total term in excess of 40 years. The adjust4 ment in the effective rate of interest shall correspond to

5 a specified national interest rate index that is approved

6 in regulations issued by the Secretary and information on

7 which is readily accessible to the mortgagors from gen8 erally available published sources.

9 ‘‘(c) LIMITATIONS ON SECOND-STEP PERIODIC

10 RATES.—For each mortgage insured pursuant to this sec11 tion for which the effective rate of interest charged pursu12 ant to subsection (a)(3) is periodically adjusted under sub13 paragraph (B) of such subsection, such adjustments in the

14 interest rate—

15 ‘‘(1) may be accomplished through adjustments

16 in the monthly payment amount, the outstanding

17 principal balance, or the mortgage term, or a com18 bination of such factors, except that in no case may

19 any extension of a mortgage term result in a total

20 term in excess of 40 years;

21 ‘‘(2) shall correspond to a specified national in22 terest rate index that is approved in regulations is23 sued the Secretary and information on which is

24 readily accessible to the mortgagors from generally

25 available published sources;
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1 ‘‘(3) shall be made on an annual basis;

2 ‘‘(4) shall be limited, with respect to any single

3 interest rate increase, to no more than 1 percent on

4 the outstanding loan balance; and

5 ‘‘(5) be limited to a maximum increase of 5 per6 centage points above the initial contract interest rate

7 over the term of the mortgage.

8 ‘‘(d) CONDITIONS ON INSURING AUTHORITY.—The

9 Secretary may insure mortgages pursuant to this section

10 only after determining that the risk posed by such insur11 ance to the financial safety and soundness of the insurance

12 fund of which the mortgage insurance is an obligation does

13 not exceed such risk posed by insurance of mortgages of

14 equivalent terms having fixed interest rates over such

15 terms.

16 ‘‘(e) DESCRIPTION OF FEATURES.—The Secretary

17 shall issue regulations requiring that the mortgagee make

18 available to the mortgagor, at the time of loan application,

19 a written explanation of the features of the 2-step mort20 gage insured pursuant to this section.

21 ‘‘(f) LIMITATION OF TOTAL NUMBER OF MORTGAGES

22 INSURED.—The aggregate number of mortgages and

23 loans insured pursuant to this section in any fiscal year

24 may not exceed 10 percent of the aggregate number of
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1 mortgages and loans insured by the Secretary under this

2 title during the preceding fiscal year.’’.

3 SEC. 416. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS

4 IN HIGH-COST AREAS.

5 (a) IN GENERAL.—Each of the provisions under sub6 section (b) is amended by striking ‘‘140 percent’’ and in7 serting ‘‘152 percent’’.

8 (b) PROVISIONS AMENDED.—The provisions under

9 this subsection are the following sections of title II of the

10 National Housing Act (12 U.S.C. 1707 et seq.):

11 (1) Section 207(c)(3).

12 (2) Section 213(b)(2).

13 (3) Section 220(d)(3)(B)(iii).

14 (4) Section 221(d)(3)(ii).

15 (5) Section 221(d)(4)(ii).

16 (6) Section 231(c)(2).

17 (7) Section 234(e)(3).

18 SEC. 417. APPROVAL OF POINT-OF-USE PURIFICATION SYS19 TEMS AND TESTING OF SYSTEMS.

20 (a) IN GENERAL.—Section 424 of the Housing and

21 Community Development Act of 1987 (12 U.S.C. 1701z–

22 15) is amended—

23 (1) in subsection (a), by inserting after the pe24 riod at the end the following new sentence: ‘‘The

25 Secretary of Housing and Urban Development shall
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1 provide for the approval under subsection (c) of both

2 point-of-use and point-of-entry water treatment

3 equipment and water purification systems that meet

4 the standards established under this section.’’;

5 (2) in the first sentence of subsection (b), by

6 striking ‘‘general standards recognized by the De7 partment as modified for local or regional condi8 tions’’ and inserting the following: ‘‘standards for

9 testing using (1) industry-accepted product testing

10 protocols, or (2) protocols that utilize technically

11 valid methodology using analytical testing methods

12 of the Environmental Protection Agency for drinking

13 water quality and maximum contaminant levels or

14 equivalent methods’’;

15 (3) by redesignating subsection (b) (as amended

16 by paragraph (2) of this section) as subsection (c);

17 and

18 (4) by inserting after subsection (a) the follow19 ing new subsection:

20 ‘‘(b) POINT-OF-USE EQUIPMENT.—For any property

21 in which the water treatment or purification system in op22 eration employs point-of-use equipment, the Secretary

23 may not require that a treatment or purification system

24 be employed on any water supply source serving the prop-
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1 erty that provides water that will not be used primarily

2 for human consumption.’’.

3 (b) REGULATIONS.—The Secretary of Housing and

4 Urban Development shall issue any regulations necessary

5 to carry out section 424 of the Housing and Community

6 Development Act of 1987, as amended by subsection (a)

7 of this section, not later than the expiration of the 6-

8 month period beginning on the date of the enactment of

9 this Act.

10 SEC. 418. ENERGY EFFICIENT MORTGAGES PILOT PRO11 GRAM.

12 Section 106 of the Energy Policy Act of 1992 (42

13 U.S.C. 12712 note) is amended—

14 (1) in subsection (a)(2)—

15 (A) in subparagraph (A), by inserting

16 ‘‘(which may be an adjustable rate mortgage in17 sured under section 251 of such Act and may

18 be a mortgage for a property that is not the

19 principal or secondary residence of the mortga20 gor to the extent provided in section 203(g) of

21 such Act)’’ after ‘‘Act’’; and

22 (B) by adding at the end the following new

23 subparagraph:

24 ‘‘(D) RATING AND INSTALLATION.—The

25 program shall provide that the person conduct-
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1 ing the home energy rating report under sub2 section (c)(2) for the property subject to the en3 ergy efficient mortgage may also, subject only

4 to the approval of the mortgagee and mortga5 gor, install the energy efficiency improve6 ments.’’; and

7 (2) in subsection (c)—

8 (A) in paragraph (1), by inserting ‘‘(in9 cluding an adjustable rate mortgage loan eligi10 ble for insurance under section 251 of such

11 Act)’’ after ‘‘Act’’; and

12 (B) in the first sentence of paragraph (2),

13 by striking ‘‘the total present value cost’’ and

14 all that follows through the end of the sentence

15 and inserting the following: ‘‘energy improve16 ments that generate energy savings in the first

17 year after improvement that are greater than

18 the increase in the amount of the loan payment

19 for such first-year due to the energy improve20 ments. In the case of a base loan insured under

21 section 251 of the National Housing Act, the

22 interest rate used to determine the amount of

23 such increase in the loan payment shall be the

24 maximum allowable interest rate under the

25 mortgage.’’.
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1 SEC. 419. EXTENSION OF MULTIFAMILY MORTGAGE CREDIT

2 DEMONSTRATIONS.

3 Section 542 of the Housing and Community Develop4 ment Act of 1992 (12 U.S.C. 1707 note) is amended—

5 (1) in subsection (b)(5), by striking ‘‘1993 and

6 1994’’ and inserting ‘‘1995 and 1996’’; and

7 (2) in subsection (c)(4), by striking ‘‘1993,

8 1994, and 1995’’ and inserting ‘‘1995, 1996, and

9 1997’’.

10 SEC. 420. INDIAN HOUSING LOAN GUARANTEES.

11 (a) LIMITATION ON OUTSTANDING AGGREGATE

12 PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the Hous13 ing and Community Development Act of 1992 (12 U.S.C.

14 1515z–13a(i)(5)(C)) is amended by striking ‘‘fiscal years

15 1993 and 1994’’ and inserting ‘‘fiscal years 1995 and

16 1996’’.

17 (b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR18 ANTEE FUND.—Section 184(i)(7) of the Housing and

19 Community Development Act of 1992 (12 U.S.C. 1515z–

20 13a(i)(7)) is amended to read as follows:

21 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

22 There are authorized to be appropriated to the

23 Guarantee Fund to carry out this section

24 $50,000,000 for fiscal year 1995 and $50,000,000

25 for fiscal year 1996.’’.
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1 SEC. 421. NATIONAL COMMISSION ON THE FUTURE OF THE

2 FEDERAL HOUSING ADMINISTRATION.

3 (a) PURPOSE.—The purpose of this section is to es4 tablish a national commission to develop recommendations

5 regarding the appropriate future role of the Federal Gov6 ernment in providing mortgage insurance, for modernizing

7 and improving the structure and operations of the Federal

8 Housing Administration, for protecting the safety and

9 soundness of the insurance funds of the FHA, and for

10 serving families currently underserved by the mortgage fi11 nance system.

12 (b) ESTABLISHMENT.—There is hereby established a

13 commission to be known as the National Commission on

14 the Future of the Federal Housing Administration.

15 (c) MEMBERSHIP.—

16 (1) IN GENERAL.—The Commission shall con17 sist of the Secretary of Housing and Urban Develop18 ment and 16 members appointed, not later than 60

19 days after amounts to carry out this section are

20 made available under subsection (h), as follows:

21 (A) 4 members shall be appointed by the

22 Chairman of the Committee on Banking, Hous23 ing, and Urban Affairs of the Senate and 4

24 members shall be appointed by the Ranking Mi25 nority Member of such Committee.
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1 (B) 4 members shall be appointed by the

2 Chairman of the Committee on Banking, Fi3 nance and Urban Affairs of the House of Rep4 resentatives and 4 members shall be appointed

5 by the Ranking Minority Member of such Com6 mittee.

7 (2) QUALIFICATIONS.—The 8 members of the

8 Commission appointed under each of subparagraphs

9 (A) and (B) of paragraph (1) shall include—

10 (A) 1 individual who represents the mort11 gage finance industry;

12 (B) 1 individual with knowledge and expe13 rience from a secondary mortgage market en14 tity;

15 (C) 1 individual with knowledge and expe16 rience concerning home sales or multifamily

17 housing management;

18 (D) 1 individual who represents the private

19 mortgage insurance industry;

20 (E) 1 individual with knowledge and expe21 rience concerning single family or multifamily

22 housing asset management;

23 (F) 1 individual who represents a State or

24 local housing agency active in single family or

25 multifamily housing activities;
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1 (G) 1 individual who represents the inter2 ests of consumers or communities, in single

3 family or multifamily housing; and

4 (H) 1 individual who represents or resides

5 in an urban or rural neighborhood whose resi6 dents consist predominantly of members of mi7 norities.

8 (3) CHAIRPERSON.—The Commission shall elect

9 a chairperson from among members of the Commis10 sion.

11 (4) QUORUM.—A majority of the members of

12 the Commission shall constitute a quorum for the

13 transaction of business.

14 (5) VOTING.—Each member of the Commission

15 shall be entitled to 1 vote, and all votes shall be

16 given equal weight.

17 (6) VACANCIES.—Any vacancy on the Commis18 sion shall not affect the powers of the Commission

19 and shall be filled in the manner in which the origi20 nal appointment was made.

21 (7) PROHIBITION ON ADDITIONAL PAY.—Mem22 bers of the Commission shall serve without com23 pensation, but shall be reimbursed for travel, sub24 sistence, and other necessary expenses incurred in
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1 the performance of their duties as members of the

2 Commission.

3 (d) SUBCOMMITTEES.—In carrying out its duties

4 under subsection (e), the Commission shall establish 2

5 subcommittees, 1 of which shall carry out such duties with

6 respect to issues relating to mortgage insurance for multi7 family housing and 1 of which shall carry out such duties

8 with respect to issues relating to mortgage insurance for

9 single family housing.

10 (e) DUTIES.—

11 (1) IN GENERAL.—The Commission shall con12 duct a study of the existing operations of the FHA

13 and shall make recommendations regarding the fu14 ture mission, organization, responsibilities, and func15 tion of the FHA. In conducting the study and for16 mulating recommendations, the Commission shall—

17 (A) determine the most appropriate role

18 for the Federal Government in extending the

19 availability of mortgage credit and review var20 ious alternative mortgage products and, with

21 regard to the mission and functions of the

22 FHA, the appropriateness of the use of such

23 products by the FHA;

24 (B) determine whom FHA programs are

25 intended to serve;
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1 (C) consider whether the FHA could func2 tion more effectively if organized as a govern3 ment corporation, a government-sponsored en4 terprise, or with any other organizational struc5 ture different from the existing structure;

6 (D) consider whether the personnel, pro7 curement, budgeting, and other requirements

8 generally applicable to the Federal agencies

9 should be modified in their applicability to the

10 FHA;

11 (E) review the laws establishing and relat12 ing to the FHA and determine whether amend13 ments to such law would be appropriate to re14 structure the FHA, or to provide new authority

15 or increased flexibility for the operations of the

16 FHA;

17 (F) determine ways in which the FHA can

18 more effectively contribute to the revitalization

19 of inner cities and increase housing opportuni20 ties for low-income families;

21 (G) determine ways to improve the man22 agement and sale of assets owned by the FHA;

23 (H) determine ways to reduce the risk of

24 future insurance losses from the existing inven-
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1 tory of outstanding mortgages insured by the

2 FHA; and

3 (I) determine ways to improve the private

4 management of multifamily properties insured

5 by the FHA.

6 (2) INTERIM REPORT.—Not later than the expi7 ration of the 10-month period beginning upon the

8 appointment of all of the members of the Commis9 sion under subsection (c), the Commission shall sub10 mit to the Secretary of Housing and Urban Develop11 ment and to the Congress an interim report contain12 ing the preliminary information and evaluations

13 specified in paragraph (1) and initial recommenda14 tions for legislative and administrative actions to

15 carry out the determinations made pursuant to para16 graph (1).

17 (3) REPORT.—Not later than the expiration of

18 the 18-month period beginning upon the appoint19 ment of all of the members of the Commission under

20 subsection (c), the Commission shall submit to the

21 Secretary of Housing and Urban Development and

22 to the Congress a report containing the information

23 and evaluations specified in paragraph (1) and spe24 cific recommendations for legislative and administra-
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1 tive actions to carry out the determinations made

2 pursuant to paragraph (1).

3 (f) POWERS.—

4 (1) HEARINGS.—The Commission may, for the

5 purpose of carrying out this section, hold such hear6 ings and sit and act at such times and places as the

7 Commission considers appropriate.

8 (2) RULES AND REGULATIONS.—The Commis9 sion may adopt such rules and regulations as may

10 be necessary to establish its procedures and to gov11 ern the manner of its operations, organization, and

12 personnel.

13 (3) ASSISTANCE FROM FEDERAL AGENCIES.—

14 (A) INFORMATION.—The Commission may

15 secure directly from any department or agency

16 of the United States such data and information

17 as the Commission may require for the purpose

18 of carrying out this section. Upon request of

19 the Commission, any such department or agen20 cy shall furnish such data or information. The

21 Commission may acquire data or information

22 directly from such departments or agencies to

23 the same extent that the Secretary may acquire

24 such data or information.
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1 (B) ADMINISTRATIVE SUPPORT.—The

2 General Services Administration shall provide to

3 the Commission, on a reimbursable basis, ad4 ministrative support services requested by the

5 Commission.

6 (C) PERSONNEL DETAILS.—Upon the re7 quest of the chairperson of the Commission, the

8 Secretary shall, to the extent possible and sub9 ject to the discretion of the Secretary, detail

10 any of the personnel of the Department of

11 Housing and Urban Development, on a

12 nonreimbursable basis, to assist the Commis13 sion in carrying out its duties under this

14 section.

15 (4) MAILS.—The Commission may use the

16 United States mails in the same manner and under

17 the same conditions as other Federal agencies.

18 (5) CONTRACTING.—The Commission may, to

19 such extent and in such amounts as are provided in

20 appropriations Acts, enter into contracts necessary

21 to carry out its duties under this section.

22 (6) ADVISORY COMMITTEE.—The Commission

23 shall be considered an advisory committee within the

24 meaning of the Federal Advisory Committee Act.

25 (7) STAFF.—
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1 (A) EXECUTIVE DIRECTOR.—The Commis2 sion shall appoint an executive director of the

3 Commission who shall be compensated at a rate

4 fixed by the Commission, but which may not ex5 ceed the rate established for level V of the Ex6 ecutive Schedule under title 5, United States

7 Code.

8 (B) PERSONNEL.—In addition to the exec9 utive director, the Commission may appoint and

10 fix the compensation of such personnel as the

11 Commission considers appropriate, in accord12 ance with the provisions of title 5, United

13 States Code, governing appointments in the

14 competitive service, and the provisions of chap15 ter 51 and subchapter III of chapter 53 of such

16 title, relating to classification and General

17 Schedule pay rates.

18 (C) LIMITATION.—This paragraph shall be

19 effective only to the extent amounts are made

20 available in appropriation Acts.

21 (g) DEFINITIONS.—For purposes of this section, the

22 following definitions shall apply:

23 (1) The term ‘‘Commission’’ means the Na24 tional Commission on the Future of the Federal

25 Housing Administration.
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1 (2) The term ‘‘FHA’’ means the Federal Hous2 ing Administration of the Department of Housing

3 and Urban Development.

4 (3) The term ‘‘Secretary’’ means the Secretary

5 of Housing and Urban Development.

6 (h) FUNDING.—Of any amounts appropriated pursu7 ant to section 501 of the Housing and Urban Development

8 Act of 1970, the Secretary shall set aside to carry out

9 this section $1,000,000 for fiscal year 1995. Any amounts

10 made available pursuant to this subsection shall remain

11 available until expended.

12 (i) SUNSET.—The Commission shall terminate upon

13 the expiration of the 18-month period that begins upon

14 the appointment of all of the members of the Commission

15 under subsection (c).

16 SEC. 422. ACTION AND REPORT ON COOPERATIVE HOME17 OWNERSHIP FOR LOW- AND MODERATE-IN18 COME FAMILIES.

19 (a) REVIEW.—The Secretary of Housing and Urban

20 Development, acting through the Assistant Secretary who

21 is the Federal Housing Commissioner, shall review the re22 port of The Urban Institute, dated May 1994 and entitled

23 ‘‘Performance of HUD Subsidized Loans: Does Coopera24 tive Housing Matter?’’.
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1 (b) ACTION.—Not later than 9 months after the date

2 of the enactment of this Act, the Secretary shall imple3 ment any recommendations made in the report referred

4 to in subsection (a) that (1) the Secretary considers appro5 priate and feasible, (2) are within the jurisdiction of the

6 Assistant Secretary referred to in subsection (a), and (3)

7 the Secretary has authority under law to implement.

8 (c) REPORT.—The Secretary shall submit a report to

9 the Congress not later than 9 months after the date of

10 the enactment of this Act, which shall—

11 (1) evaluate the report referred to in subsection

12 (a);

13 (2) describe any action taken under subsection

14 (b);

15 (3) identify and proposes the elimination of any

16 Federal housing policies or programs that, in the de17 termination of the Secretary, inhibit the development

18 of cooperative homeownership for low- and mod19 erate-income families; and

20 (4) recommend any legislative action necessary

21 to eliminate the policies or programs identified

22 under paragraph (3).
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1 SEC. 423. STUDY OF ACTIVITY OF PRIVATE MORTGAGE

2 BANKERS AND INSURERS.

3 (a) STUDY.—The Secretary of Housing and Urban

4 Development shall conduct a study to determine the pat5 terns of lending and insurance activity of private mortgage

6 lenders and private mortgage insurers, respectively. The

7 study shall be designed to determine—

8 (1) the geographical areas in which properties

9 are located for which loans are made by private

10 mortgage lenders and the characteristics of such

11 areas;

12 (2) the extent of lending activity by private

13 mortgage lenders, in terms of number of loans and

14 principal amount, in areas having a low median in15 come, a moderate median income, and other areas;

16 (3) the types of loans made by private mortgage

17 lenders, and the extent of lending activity, in each

18 of the areas described in paragraph (2), which shall

19 include the types and extent of any lending activity

20 made in connection with economic development of

21 low- and moderate-income areas;

22 (4) the geographical areas in which properties

23 are located for which mortgage insurance is provided

24 by private mortgage insurers and the characteristics

25 of such areas;
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1 (5) the extent of insurance activity by private

2 mortgage insurers, in terms of number of loans in3 sured and principal amount insured, in areas having

4 a low median income, a moderate median income,

5 and other areas; and

6 (6) the types of loans insured and extent of in7 surance activity by private mortgage insurers in each

8 of the areas described in paragraph (5), which shall

9 include the types and extent of any insurance activ10 ity made in connection with mortgages or loans for

11 economic development activity in low- and moderate12 income areas.

13 (b) REPORT.—The Secretary shall submit a report to

14 the Congress describing the results of the study under this

15 section not later than the expiration of the 6-month period

16 beginning on the date of the enactment of this Act.

17 (c) DEFINITIONS.—For purposes of this section—

18 (1) the term ‘‘private mortgage insurer’’ means

19 a person who provides insurance against the

20 nonpayment of, or default on, a mortgage or loan

21 for residential or commercial property that is not in22 surance made available under the National Housing

23 Act, title 38 of the United States Code, or title V

24 of the Housing Act of 1949; and
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1 (2) the term ‘‘private mortgage lender’’ means

2 any lender that is not subject to the supervision, ap3 proval, regulation, or insuring of the Board of Gov4 ernors of the Federal Reserve System, the Federal

5 Deposit Insurance Corporation, the Comptroller of

6 the Currency, the Office of Thrift Supervision, the

7 National Credit Union Administration, or any other

8 Federal agency that regulates lending activity. The

9 term does not include institutions engage primarily

10 in the purchase of mortgage loans.

11 Subtitle B—Secondary Mortgage

12 Market Programs

13 SEC. 441. LIMITATION ON GNMA GUARANTEES OF MORT14 GAGE-BACKED SECURITIES.

15 Section 306(g)(2) of the Federal National Mortgage

16 Association Charter Act (12 U.S.C. 1721(g)(2)) is amend17 ed to read as follows:

18 ‘‘(2) Notwithstanding any other provision of law and

19 subject only to the absence of qualified requests for guar20 antees, to the authority provided in this subsection, and

21 to the extent of or in such amounts as any funding limita22 tion approved in appropriation Acts, the Association shall

23 enter into commitments to issue guarantees under this

24 subsection in an aggregate amount of $130,000,000,000

25 during fiscal year 1995 and $130,000,000,000 during fis-
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1 cal year 1996. There are authorized to be appropriated

2 to cover the costs (as such term is defined in section 502

3 of the Congressional Budget Act of 1974) of guarantees

4 issued under this Act by the Association such sums as may

5 be necessary for each of fiscal years 1995 and 1996.’’.

6 SEC. 442. ASSESSMENT COLLECTION DATES FOR OFFICE

7 OF FEDERAL HOUSING ENTERPRISE OVER8 SIGHT.

9 Section 1316(b) of the Housing and Community De10 velopment Act of 1992 (12 U.S.C. 4516(b)) is amended

11 by striking paragraph (2) and inserting the following new

12 paragraph:

13 ‘‘(2) TIMING OF PAYMENT.—The annual assess14 ment shall be payable semiannually for each fiscal

15 year, on October 1st and April 1st.’’.

16 Subtitle C—Emergency Mortgage

17 Relief

18 SEC. 461. AMENDMENTS TO EMERGENCY HOMEOWNERS’

19 RELIEF ACT.

20 (a) FINDINGS.—Section 102(a) of the Emergency

21 Homeowners’ Relief Act (12 U.S.C. 2701(a)) is amend22 ed—

23 (1) by striking paragraph (1) and inserting the

24 following new paragraph:
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1 ‘‘(1) certain homeowners in the United States

2 are encountering severe economic hardships as a re3 sult of unemployment or a reduction in income;’’;

4 (2) in paragraph (2), by striking ‘‘adverse eco5 nomic conditions’’ and inserting ‘‘economic hard6 ships’’; and

7 (3) in paragraph (3), by striking ‘‘economic

8 conditions’’ and inserting ‘‘their economic condi9 tions’’.

10 (b) MORTGAGES ELIGIBLE FOR ASSISTANCE.—Sec11 tion 103 of the Emergency Homeowners’ Relief Act (12

12 U.S.C. 2702) is amended—

13 (1) in paragraph (5), by striking ‘‘and’’ at the

14 end;

15 (2) in paragraph (6)—

16 (A) by inserting ‘‘a 1- to 4-family resi17 dence that is’’ after ‘‘is’’; and

18 (B) by striking the period at the end and

19 inserting ‘‘; and’’; and

20 (3) by adding at the end the following new

21 paragraph:

22 ‘‘(7) the delinquency for which the holder of the

23 mortgage intends to foreclose commenced after the

24 date of the enactment of the Housing and Commu25 nity Development Act of 1994.’’.
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1 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

2 109(a) of the Emergency Homeowners’ Relief Act (12

3 U.S.C. 2708(a)) is amended by striking ‘‘, except that’’

4 and all that follows through ‘‘$500,000,000’’ and inserting

5 ‘‘for fiscal years 1995 and 1996’’.

6 (d) EXPIRATION DATE.—Section 109(b) of the

7 Emergency Homeowners’ Relief Act (12 U.S.C. 2708(b))

8 is amended by striking ‘‘September 30, 1977’’ and insert9 ing ‘‘September 30, 1996’’.

10 (e) NOTIFICATION.—Section 110 of the Emergency

11 Homeowners’ Relief Act (12 U.S.C. 2709) is amended—

12 (1) in paragraph (1) of the 1st sentence—

13 (A) by striking ‘‘October 1, 1977’’ and in14 serting ‘‘September 30, 1996’’; and

15 (B) by inserting ‘‘single family’’ before

16 ‘‘residential’’;

17 (2) in paragraph (2) of the 1st sentence, by

18 striking ‘‘until one year from the date of the enact19 ment of this title’’ and inserting ‘‘during fiscal years

20 1995 and 1996’’; and

21 (3) in the 2d sentence, by striking ‘‘Federal

22 Home Loan Bank Board, the Federal Savings and

23 Loan Insurance Corporation’’ and inserting ‘‘Office

24 of Thrift Supervision’’.
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1 (f) REPORTS.—Section 111 of the Emergency Home2 owners’ Relief Act (12 U.S.C. 2710) is amended—

3 (1) by striking ‘‘Within’’ and all that follows

4 through ‘‘Congress on’’ and inserting the following:

5 ‘‘For fiscal year 1995 and each fiscal year thereafter

6 that begins before the date in section 109(b), the

7 Secretary shall submit a report under this section to

8 the Congress. The report for a fiscal year shall be

9 submitted not later than 60 days after the end of

10 the fiscal year and shall describe’’;

11 (2) by striking ‘‘purposes’’ and inserting ‘‘pur12 pose’’;

13 (3) by inserting ‘‘and’’ before ‘‘(4)’’; and

14 (4) by striking ‘‘; and (5)’’ and all that follows

15 and inserting a period.

16 Subtitle D—Nonjudicial Fore17 closure of Defaulted Single

18 Family Mortgages

19 SEC. 481. SHORT TITLE.

20 This subtitle may be cited as the ‘‘Single Family

21 Mortgage Foreclosure Act of 1994’’.

22 SEC. 482. FINDINGS AND PURPOSE.

23 (a) FINDINGS.—The Congress finds that—

24 (1) disparate State laws under which mortgages

25 are foreclosed on behalf of the Secretary of Housing
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1 and Urban Development covering one- to four-family

2 residential properties burden certain programs ad3 ministered by the Secretary, increase the costs of

4 collecting these obligations, and cause detriment to

5 the community generally;

6 (2) long periods to complete the foreclosure of

7 these mortgages under certain State laws lead to de8 terioration in the condition of the properties in9 volved; necessitate substantial Federal holding ex10 penditures; increase the risk of vandalism, fire loss,

11 depreciation, damage, and waste with respect to the

12 properties; and adversely affect the neighborhoods in

13 which the properties are located;

14 (3) these conditions seriously impair the Sec15 retary’s ability to protect the Federal financial inter16 est in the affected properties and frustrate attain17 ment of the objectives of the underlying Federal pro18 gram authority;

19 (4) the availability of a uniform and more expe20 ditious procedure, with no right of redemption in the

21 mortgagor or others, for the foreclosure of these

22 mortgages by the Secretary will tend to ameliorate

23 these conditions; and

24 (5) providing the Secretary with a nonjudicial

25 foreclosure procedure will reduce unnecessary litiga-
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1 tion by removing many foreclosures from the courts

2 where they contribute to overcrowded calendars.

3 (b) PURPOSE.—The purpose of this subtitle is to cre4 ate a uniform Federal foreclosure remedy for single family

5 mortgages that (1) are held by the Secretary of Housing

6 and Urban Development pursuant to title I or title II of

7 the National Housing Act or (2) secure loans obligated

8 by the Secretary under section 312 of the Housing Act

9 of 1964.

10 SEC. 483. DEFINITIONS.

11 As used in this subtitle—

12 (1) the term ‘‘bona fide purchaser’’ means a

13 purchaser for value in good faith and without notice

14 of any adverse claim, who will, therefore, acquire the

15 security property free of any adverse claim;

16 (2) the term ‘‘mortgage’’ means a deed of trust,

17 mortgage, deed to secure debt, security agreement,

18 or any other form of instrument under which any in19 terest in property, real, personal or mixed, or any in20 terest in property including leaseholds, life estates,

21 reversionary interests, and any other estates under

22 applicable State law, is conveyed in trust, mort23 gaged, encumbered, pledged, or otherwise rendered

24 subject to a lien for the purpose of securing the pay25 ment of money or the performance of an obligation;
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1 (3) the term ‘‘single family mortgage’’ means a

2 mortgage that covers property on which there is lo3 cated a one- to four-family residence, which mort4 gage—

5 (A) is held by the Secretary pursuant to

6 title I or title II of the National Housing Act,

7 or

8 (B) secures a loan obligated by the Sec9 retary under section 312 of the Housing Act of

10 1964, as it existed before its repeal by section

11 289 of the Cranston-Gonzalez National Afford12 able Housing Act (except that a mortgage se13 curing such a loan that covers property contain14 ing non-residential space and a one- to four15 family dwelling shall not be subject to this Act);

16 (4) the term ‘‘mortgage agreement’’ means the

17 note or debt instrument and the mortgage instru18 ment, deed of trust instrument, trust deed, or in19 strument or instruments creating the mortgage, in20 cluding any instrument incorporated by reference

21 therein and any instrument or agreement amending

22 or modifying any of the foregoing;

23 (5) the term ‘‘mortgagor’’ means the obligor,

24 grantor, or trustor named in the mortgage agree25 ment and, unless the context otherwise indicates, in-
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1 cludes the current owner of record of the security

2 property whether or not personally liable on the

3 mortgage debt;

4 (6) the term ‘‘owner’’ means any person who

5 has an ownership interest in property and includes

6 heirs, devisees, executors, administrators, and other

7 personal representatives, and trustees of testa8 mentary trusts if the owner of record is deceased;

9 (7) the term ‘‘person’’ includes any individual,

10 group of individuals, association, partnership, cor11 poration, or organization;

12 (8) the terms ‘‘record’’ and ‘‘recorded’’ include

13 ‘‘register’’ and ‘‘registered’’ in the instance of reg14 istered land;

15 (9) the term ‘‘security property’’ means the

16 property (real, personal or mixed) or an interest in

17 property (including leaseholds, life estates, reversion18 ary interests, and any other estates under applicable

19 State law), together with fixtures and other interests

20 subject to the lien of the mortgage under applicable

21 State law;

22 (10) the term ‘‘State’’ means the several States,

23 the District of Columbia, the Commonwealth of

24 Puerto Rico, the United States Virgin Islands,

25 Guam, American Samoa, the Northern Mariana Is-
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1 lands, the Trust Territory of the Pacific Islands, and

2 Indian tribes as defined by the Secretary;

3 (11) the term ‘‘county’’ means county as de4 fined in section 2 of title I, United States Code; and

5 (12) the term ‘‘Secretary’’ means the Secretary

6 of Housing and Urban Development.

7 SEC. 484. APPLICABILITY.

8 Single family mortgages encumbering real estate lo9 cated in any State may be foreclosed by the Secretary in

10 accordance with this subtitle, or pursuant to other fore11 closure procedures available, at the option of the Sec12 retary.

13 SEC. 485. DESIGNATION OF FORECLOSURE COMMISSIONER.

14 A foreclosure commissioner or commissioners des15 ignated pursuant to this subtitle shall have a nonjudicial

16 power of sale as provided in this subtitle. Where the Sec17 retary wishes to foreclose upon a single family mortgage,

18 the Secretary may designate a foreclosure commissioner

19 and, with or without cause, may designate a substitute

20 foreclosure commissioner to replace a previously des21 ignated foreclosure commissioner, by executing a duly ac22 knowledged, written designation stating the name and

23 business or residential address of the commissioner or sub24 stitute commissioner. The designation shall be effective

25 upon execution. The foreclosure commissioner, if a natural
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1 person, shall be a resident of the State in which the secu2 rity property is located and, if not a natural person, the

3 foreclosure commissioner must be duly authorized to

4 transact business under the laws of the State in which

5 the security property is located. The foreclosure commis6 sioner shall be a person who is responsible, financially

7 sound, and competent to conduct the foreclosure. More

8 than one foreclosure commissioner may be designated. If

9 a natural person is designated as foreclosure commissioner

10 or substitute foreclosure commissioner, such person shall

11 be designated by name, except that where such person is

12 designated in his or her capacity as an official or employee

13 of a government or corporate entity, such person may be

14 designated by his or her unique title or position instead

15 of by name.

16 SEC. 486. PREREQUISITES TO FORECLOSURE.

17 Foreclosure by the Secretary under this subtitle of

18 a single family mortgage may be commenced, as provided

19 in section 488, upon the breach of a covenant or condition

20 in the mortgage agreement for which foreclosure is au21 thorized under the mortgage, except that no such fore22 closure may be commenced unless any previously pending

23 proceeding, judicial or nonjudicial, separately instituted by

24 the Secretary to foreclose the mortgage other than under

25 this subtitle has been withdrawn, dismissed, or otherwise
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1 terminated. No such separately instituted foreclosure pro2 ceeding on the mortgage shall be instituted by the Sec3 retary during the pendency of foreclosure pursuant to this

4 subtitle. Nothing in this subtitle shall preclude the Sec5 retary from enforcing any right, other than foreclosure,

6 under applicable Federal or State law, including any right

7 to obtain a monetary judgment. Nothing in this subtitle

8 shall preclude the Secretary from foreclosing under this

9 subtitle where the Secretary has obtained or is seeking any

10 other remedy available pursuant to Federal or State law

11 or under the mortgage agreement, including, but not lim12 ited to, the appointment of a receiver, mortgagee-in-pos13 session status, or relief under an assignment of rents.

14 SEC. 487. NOTICE OF FORECLOSURE SALE.

15 The notice of foreclosure sale to be served in accord16 ance with this subtitle shall be subscribed with the name

17 and address of the foreclosure commissioner and the date

18 on which subscribed, and shall set forth the following in19 formation:

20 (1) The names of the Secretary, the original

21 mortgagee (if other than the Secretary), and the

22 original mortgagor.

23 (2) The street address or a description of the

24 location of the security property, and a description
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1 of the security property, sufficient to identify the

2 property to be sold.

3 (3) The date of the mortgage, the office in

4 which the mortgage is recorded, and the liber and

5 folio or other description of the location of recorda6 tion of the mortgage.

7 (4) The failure to make payment, including the

8 due date of the earliest installment payment remain9 ing wholly unpaid as of the date the notice is sub10 scribed, or the description of other default or de11 faults upon which foreclosure is based, and the ac12 celeration of the secured indebtedness.

13 (5) The date, time, and place of the foreclosure

14 sale.

15 (6) A statement that the foreclosure is being

16 conducted pursuant to this subtitle.

17 (7) The types of costs, if any, to be paid by the

18 purchaser upon transfer of title.

19 (8) The amount and method of deposit to be re20 quired at the foreclosure sale (except that no deposit

21 shall be required of the Secretary), the time and

22 method of payment of the balance of the foreclosure

23 purchase price, and other appropriate terms of sale.
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1 SEC. 488. COMMENCEMENT OF FORECLOSURE.

2 (a) REQUEST.—If the Secretary as holder of a single

3 family mortgage determines that the prerequisites to fore4 closure set forth in section 486 are satisfied, the Secretary

5 may request the foreclosure commissioner to commence

6 foreclosure of a single family mortgage. Upon such re7 quest, the foreclosure commissioner shall commence fore8 closure of the mortgage, by commencing service of a notice

9 of default and foreclosure sale in accordance with section

10 489.

11 (b) SUBSTITUTE COMMISSIONER.—After commence12 ment of a foreclosure under this subtitle, the Secretary

13 may designate a substitute foreclosure commissioner at

14 any time before the time of foreclosure sale, and the fore15 closure shall continue without prejudice, unless the sub16 stitute commissioner, in his or her sole discretion, finds

17 that continuation of the foreclosure sale will unfairly affect

18 the interests of the mortgagor. If the substitute commis19 sioner makes such a finding, the substitute commissioner

20 shall cancel the foreclosure sale, or adjourn such sale in

21 the manner provided in section 491(c). Upon designation

22 of a substitute foreclosure commissioner, a copy of the

23 written notice of such designation referred to in section

24 485 shall be served (1) by mail, as provided in such section

25 489 (except that the minimum time periods between mail26 ing and the date of foreclosure sale prescribed in such sec-
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1 tion shall not apply), or (2) in any other manner which,

2 in the substitute commissioner’s sole discretion, is condu3 cive to achieving timely notice of such substitution.

4 SEC. 489. SERVICE OF NOTICE OF FORECLOSURE.

5 The foreclosure commissioner shall serve the notice

6 of foreclosure sale provided for in section 487 upon the

7 following persons and in the following manner, and no ad8 ditional notice shall be required to be served, notwith9 standing any notice requirements of any State or local law:

10 (1) TIMING.—At least 45 days prior to the date

11 of the foreclosure sale, the notice of foreclosure sale

12 required by section 488 of this subtitle shall be filed

13 in the manner authorized for filing a notice of an ac14 tion concerning real property according to the law of

15 the State where the security property is located or,

16 if none, in the manner authorized by section 3201

17 of title 28, United States Code.

18 (2) NOTICE BY MAIL.—The notice of fore19 closure sale shall be sent by certified or registered

20 mail, postage prepaid and return receipt requested

21 to the following:

22 (A) The current security property owner of

23 record, as the record exists 60 days before the

24 date originally set for foreclosure sale, whether
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1 or not the notice describes a sale adjourned as

2 provided in this subtitle.

3 (B) All mortgagors of record or other per4 sons who appear of record or in the mortgage

5 agreement to be liable for part or all of the

6 mortgage debt, as the record exists 60 days be7 fore the date originally set for foreclosure sale,

8 whether or not the notice describes a sale ad9 journed as provided in this subtitle, except any

10 such mortgagors or persons who have been re11 leased.

12 (C) All dwelling units in the security prop13 erty, whether or not the notice describes a sale

14 adjourned as provided in this subtitle.

15 (D) All persons holding liens of record

16 upon the security property, as the record exists

17 60 days before the date originally set for fore18 closure sale, whether or not the notice describes

19 a sale adjourned as provided in this subtitle.

20 Notice under subparagraphs (A) and (B) of this

21 paragraph shall be mailed at least 45 days before

22 the date of foreclosure sale, and shall be mailed to

23 the owner or mortgagor at the last known address

24 of the owner or mortgagor, or, if none, to the ad25 dress of the security property, or, at the discretion
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1 of the foreclosure commissioner, to any other ad2 dress believed to be that of such owner or mortga3 gor. Notice under subparagraph (C) of this para4 graph shall be mailed at least 45 days before the

5 date of foreclosure sale. If the names of the occu6 pants of the security property are not known to the

7 Secretary, or the security property has more than

8 one dwelling, the notice shall be posted at the secu9 rity property at least 45 days prior to the fore10 closure sale. Notice under subparagraph (D) of this

11 paragraph shall be mailed at least 45 days before

12 the date of foreclosure sale, and shall be mailed to

13 each such lienholder’s address as stated of record or,

14 at the discretion of the foreclosure commissioner, to

15 any other address believed to be that of such

16 lienholder. Notice by mail pursuant to this sub17 section or section 488(b) shall be deemed duly given

18 upon mailing, whether or not received by the ad19 dressee and whether or not a return receipt is re20 ceived or the letter is returned.

21 (3) PUBLICATION.—A copy of the notice of de22 fault and foreclosure sale shall be published, as pro23 vided herein, once a week during three successive

24 calendar weeks before the sale date. Such publica25 tion shall be in a newspaper or newspapers having
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1 general circulation in the county or counties in

2 which the security property being sold is located. To

3 the extent practicable, the newspaper or newspapers

4 chosen shall be a newspaper or newspapers, if any

5 is available, having circulation conducive to achiev6 ing notice of foreclosure by publication. A legal

7 newspaper that is accepted as a newspaper of legal

8 record in the county or counties in which the secu9 rity property being sold is located shall be considered

10 a newspaper having general circulation for the pur11 poses of this paragraph. Should there be no news12 paper published at least weekly which has a general

13 circulation in one of the counties in which the secu14 rity property being sold is located, copies of the no15 tice of default and foreclosure sale shall be posted at

16 the courthouse of any county or counties in which

17 the security property is located and at the place

18 where the sale is to be held at least 21 days before

19 the date of sale.

20 SEC. 490. PRESALE REINSTATEMENT.

21 (a) IN GENERAL.—Except as provided in sections

22 488(b) and 491(c), the foreclosure commissioner shall

23 withdraw the security property from foreclosure and can24 cel the foreclosure sale only if—
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1 (1) the Secretary so directs the commissioner

2 prior to or at the time of sale;

3 (2) the commissioner finds, upon application of

4 the mortgagor at least three days before the date of

5 sale, that the default or defaults upon which the

6 foreclosure is based did not exist at the time of serv7 ice of the notice of default and foreclosure sale; or

8 (3)(A) in the case of a foreclosure involving a

9 monetary default, there is tendered to the fore10 closure commissioner before public auction is com11 pleted the entire amount of principal and interest

12 which would be due if payments under the mortgage

13 had not been accelerated;

14 (B) in the case of a foreclosure involving a

15 nonmonetary default, the foreclosure commissioner,

16 upon application of the mortgagor before the date of

17 foreclosure sale, finds that such default is cured; and

18 (C) there is tendered to the foreclosure commis19 sioner before public auction is completed all amounts

20 due under the mortgage agreement (excluding addi21 tional amounts which would have been due if mort22 gage payments had been accelerated), all amounts of

23 expenditures secured by the mortgage, and all costs

24 of foreclosure incurred for which payment from the

25 proceeds of foreclosure is provided in section 492,
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1 except that the Secretary shall have discretion to

2 refuse to cancel a foreclosure pursuant to this para3 graph if the current mortgagor or owner of record

4 has on one or more previous occasions caused a fore5 closure of the mortgage, commenced pursuant to

6 this subtitle or otherwise, to be canceled by curing

7 a default.

8 (b) OPPORTUNITY TO SECRETARY.—Before with9 drawing the security property from foreclosure in the cir10 cumstances described in subsection (a)(2) or (a)(3), the

11 foreclosure commissioner shall afford the Secretary a rea12 sonable opportunity to demonstrate why the security prop13 erty should not be so withdrawn.

14 (c) EFFECT ON MORTGAGE.—In any case in which

15 a foreclosure commenced under this subtitle is canceled,

16 the mortgage shall continue in effect as though accelera17 tion had not occurred.

18 (d) EFFECT ON SUBSEQUENT FORECLOSURE.—If

19 the foreclosure commissioner cancels a foreclosure sale

20 under this subtitle a new foreclosure may be subsequently

21 commenced as provided in this subtitle.

22 (e) NOTICE OF CANCELLATION.—The foreclosure

23 commissioner shall file a notice of cancellation in the same

24 place and manner provided for filing the notice of fore25 closure sale in section 489.
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1 SEC. 491. CONDUCT OF SALE AND ADJOURNMENT.

2 (a) TIME AND LOCATION.—Foreclosure sale pursu3 ant to this subtitle shall be at public auction, and shall

4 be scheduled to begin between the hours of 9 a.m. and

5 4 p.m. local time. The foreclosure sale shall be held at

6 a location specified in the notice of default and foreclosure

7 sale, which shall be a location where foreclosure real estate

8 auctions are customarily held in the county or one of the

9 counties in which the property to be sold is located, or

10 at a courthouse therein, or at or on the property to be

11 sold. Sale of security property situated in two or more

12 counties may be held in any one of the counties in which

13 any part of the security property is situated. The fore14 closure commissioner may designate the order in which

15 multiple tracts of security are sold.

16 (b) SALE PROCEDURES.—The foreclosure commis17 sioner shall conduct the foreclosure sale in accordance

18 with the provisions of this subtitle and in a manner fair

19 to both the mortgagor and the Secretary. Written one20 price sealed bids shall be accepted by the foreclosure com21 missioner from the Secretary and other persons for entry

22 by announcement by the commissioner at the sale. The

23 Secretary and any other person may bid at the foreclosure

24 sale, including the Secretary or any other person who has

25 submitted a written one-price bid. The foreclosure com26 missioner or any relative, related business entity, or em-
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1 ployee of such commissioner or entity shall not be per2 mitted to bid in any manner on the security property sub3 ject to foreclosure sale, except that the foreclosure com4 missioner or an auctioneer may be directed by the Sec5 retary to enter a bid on the Secretary’s behalf. The fore6 closure commissioner may serve as auctioneer, or, in ac7 cordance with regulations of the Secretary, may employ

8 an auctioneer to be paid from the commission provided

9 for in section 492(5).

10 (c) ADJOURNMENT OR CANCELLATION.—The fore11 closure commissioner shall have discretion, prior to or at

12 the time of sale to adjourn or cancel the foreclosure sale

13 if the commissioner determines, in the commissioner’s dis14 cretion, that circumstances are not conducive to a sale

15 which is fair to the mortgagor and the Secretary or that

16 additional time is necessary to determine whether the se17 curity property should be withdrawn from foreclosure as

18 provided in section 490. The foreclosure commissioner

19 may adjourn a sale to a later hour the same day by an20 nouncing or posting the new time and place of the fore21 closure sale, or may adjourn the foreclosure sale for not

22 less than 9 nor more than 31 days, in which case the com23 missioner shall serve a notice of default and foreclosure

24 sale revised to recite that the foreclosure sale has been

25 adjourned to a specified date and to include any correc-
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1 tions the foreclosure commissioner deems appropriate.

2 Such notice shall be served by publication and mailing in

3 accordance with section 489, except that publication may

4 be made on any of 3 separate days before the revised date

5 of foreclosure sale, and mailing may be made at any time

6 at least 7 days before the date to which the foreclosure

7 sale has been adjourned.

8 (d) DEPOSIT.—The foreclosure commissioner may re9 quire a bidder to make a cash deposit in an amount or

10 percentage set by him and stated in the notice of fore11 closure sale before the bid is accepted. A successful bidder

12 at the foreclosure sale who fails to comply with the terms

13 of the sale may be required to forfeit the cash deposit or,

14 at the election of the foreclosure commissioner after con15 sultation with the Secretary, shall be liable to the agency

16 for any costs incurred by the agency as a result of such

17 failure.

18 (e) PRESUMPTION.—Any foreclosure sale held in ac19 cordance with this subtitle shall be conclusively presumed

20 to have been conducted in a legal, fair, and reasonable

21 manner. The sale price shall be conclusively presumed to

22 be reasonable and equal to the fair market value of the

23 property.
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1 SEC. 492. FORECLOSURE COSTS.

2 The following foreclosure costs shall be paid from the

3 sale proceeds before satisfaction of any other claim to such

4 sale proceeds:

5 (1) Necessary advertising costs and postage in6 curred in giving notice pursuant to sections 489 and

7 491.

8 (2) Mileage for posting notices and for the fore9 closure commissioner’s or auctioneer’s attendance at

10 the sale as provided in section 1921 of title 28,

11 United States Code, for mileage by the most reason12 able road distance.

13 (3) Reasonable and necessary costs actually in14 curred in connection with any necessary search of

15 title and lien records.

16 (4) Necessary out-of-pocket costs incurred by

17 the foreclosure commissioner to record documents.

18 (5) A commission for the foreclosure commis19 sioner other than an employee of the United States

20 for the conduct of the foreclosure to the extent au21 thorized by the Secretary.

22 SEC. 493. DISPOSITION OF SALE PROCEEDS.

23 Money realized from a foreclosure sale shall be made

24 available for obligation and expenditure—

25 (1) first, to cover the costs of foreclosure pro26 vided for in section 492;
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1 (2) then, to pay valid tax liens or assessments

2 if required by the notice of foreclosure sale;

3 (3) then, to pay any liens recorded before the

4 recording of the mortgage which are required to be

5 paid in conformity with the terms of sale in the no6 tice of foreclosure sale;

7 (4) then, to service charges and advances for

8 taxes, assessments, and property insurance pre9 miums;

10 (5) then, to the interest;

11 (6) then, to the principal balance secured by the

12 mortgage (including expenditures for the necessary

13 protection, preservation, and repair of the security

14 property as authorized under the mortgage agree15 ment and interest thereon if provided for in the

16 mortgage agreement); and

17 (7) then, to late charges.

18 Any surplus after payment of the foregoing shall be paid

19 to holders of liens recorded after the mortgage in the order

20 of priority under Federal law or the law of the State where

21 the security property is located and then to the appro22 priate mortgagor. If the person to whom such surplus is

23 to be paid cannot be located, or if the surplus available

24 is insufficient to pay all claimants and the claimants can25 not agree on the allocation of the surplus, or if any person
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1 claiming an interest in the mortgage proceeds does not

2 agree that some or all of the sale proceeds should be paid

3 to a claimant as provided in this section, that part of the

4 sale proceeds in question may be deposited by the fore5 closure commissioner with an appropriate official or court

6 authorized under law to receive disputed funds in such cir7 cumstances. If such a procedure for the deposit of dis8 puted funds is not available, and the foreclosure commis9 sioner files a bill of interpleader or is sued as a stakeholder

10 to determine entitlement to such funds, the foreclosure

11 commissioner’s necessary costs in taking or defending

12 such action shall be deductible from the disputed funds.

13 SEC. 494. TRANSFER OF TITLE AND POSSESSION.

14 (a) DELIVERY OF DEED.—The foreclosure commis15 sioner shall deliver a deed or deeds to the purchaser or

16 purchasers without warranty or covenants to the pur17 chaser or purchasers and obtain the balance of the pur18 chase price in accordance with the terms of sale provided

19 in the notice of default and foreclosure sale. Notwithstand20 ing State law to the contrary, the commissioner’s deed

21 shall be a conveyance of property, and no judicial proceed22 ing shall be required ancillary or supplementary to the

23 procedures provided in this subtitle to assure the validity

24 of the conveyance or confirmation of such conveyance.
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1 (b) POSSESSION.—A purchaser at a foreclosure sale

2 held pursuant to this subtitle shall be entitled to posses3 sion upon passage of title to the mortgaged property, sub4 ject to an interest or interests not barred under section

5 496. Any person remaining in possession after the passage

6 of title shall be deemed a tenant at sufferance subject to

7 eviction under local law.

8 (c) DEATH OF PURCHASER.—If a purchaser dies be9 fore execution and delivery of the deed conveying the prop10 erty to the purchaser, the foreclosure commissioner shall

11 execute and deliver the deed to the representative of the

12 purchaser’s estate upon payment of the purchase price in

13 accordance with the terms of sale. Such delivery to the

14 representative of the purchaser’s estate shall have the

15 same effect as if accomplished during the lifetime of the

16 purchaser.

17 (d) BONA FIDE PURCHASER.—The purchaser of

18 property under this subtitle shall be presumed to be a

19 bona fide purchaser without notice of defects, if any, in

20 the title conveyed to said purchaser if the purchaser would

21 have been considered a bona fide purchaser without notice

22 had the sale been made voluntarily and in person by the

23 debtor.

24 (e) NULLIFICATION OF RIGHT OF REDEMPTION.—

25 There shall be no right of redemption, or right of posses-
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1 sion based upon right of redemption, in the mortgagor or

2 others subsequent to a foreclosure pursuant to this sub3 title. Section 204(l) of the National Housing Act and sec4 tion 701 of the Department of Housing and Urban Devel5 opment Reform Act of 1989 shall not apply to mortgages

6 foreclosed under this subtitle.

7 (f) TAX.—When conveyance is made to the Secretary,

8 no tax of any State, county, municipality, or local taxing

9 authority shall be imposed or collected with respect to the

10 foreclosure commissioner’s deed, whether as a tax upon

11 the instrument or upon the privilege of conveying or trans12 ferring title to the property. Failure to collect or pay a

13 tax of the type and under the circumstances stated in the

14 preceding sentence shall not be grounds for refusing to

15 record such a deed, for failing to recognize such recorda16 tion as imparting notice, or for denying the enforcement

17 of such a deed and its provisions in any State or Federal

18 court.

19 SEC. 495. RECORD OF FORECLOSURE AND SALE.

20 (a) RECORD.—To establish a sufficient record of

21 foreclosure and sale, the foreclosure commissioner shall in22 clude in the recitals of the deed to the purchaser or pre23 pare an affidavit or addendum to the deed stating—

24 (1) the date, time and place of sale;
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1 (2) that the mortgage was held by the Sec2 retary, the date of the mortgage, the office in which

3 the mortgage was recorded, and the liber and folio

4 or other description of the recordation of the mort5 gage;

6 (3) the particulars of the foreclosure commis7 sioner’s service of notice of default and foreclosure

8 sale in accordance with sections 489 and 491;

9 (4) the date and place of filing the notice of

10 foreclosure sale;

11 (5) that the foreclosure was conducted in ac12 cordance with the provisions of this subtitle and with

13 the terms of the notice of default and foreclosure

14 sale; and

15 (6) the sale amount.

16 (b) EFFECT OF STATEMENTS.—The statements set

17 forth in subsection (a) shall be prima facie evidence of the

18 truth of such recitals and statement of facts in any Fed19 eral or State court; and shall be a conclusive presumption

20 in favor of bona fide purchasers and encumbrancers for

21 value without notice. Encumbrancers for value include

22 liens placed by lenders who provide the purchaser with

23 purchase money in exchange for a security interest in the

24 newly-conveyed property.
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1 (c) RECORDATION.—The deed executed by the fore2 closure commissioner, the foreclosure commissioner’s affi3 davit and any other instruments submitted for recordation

4 in relation to the foreclosure of the security property

5 under this subtitle shall be accepted for recordation by the

6 registrar of deeds or other appropriate official of the coun7 ty or counties in which the security property is located

8 upon tendering of payment of the usual recording fees for

9 such instruments without regard to the compliance of

10 those instruments with local filing requirements.

11 SEC. 496. EFFECT OF SALE.

12 A sale, made and conducted as prescribed in this sub13 title to a bona fide purchaser, shall be an entire bar of

14 all claims upon, or with respect to, the property sold, of

15 each of the following persons:

16 (1) Any person to whom the notice of fore17 closure sale was mailed as provided in this subtitle,

18 and the heir, devisee, executor, administrator, suc19 cessor or assignee claiming under any such person.

20 (2) Any person claiming any interest in the

21 property subordinate to that of the mortgage, if such

22 person had actual knowledge of the sale.

23 (3) Each person, claiming any interest in the

24 property, whose assignment, mortgage, or other con25 veyance was not duly recorded or filed in the proper
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1 place for recording or filing, or whose judgment or

2 decree was not duly docketed or filed in the proper

3 place for docketing or filing, prior to the date on

4 which the notice of sale was first served by publica5 tion, as required by section 489(2); and the execu6 tor, administrator, or assignee of such a person.

7 (4) Every other person claiming under a statu8 tory lien or encumbrance created subsequent to the

9 recording or filing of the mortgage being foreclosed,

10 attaching to the title or interest of any person des11 ignated in any of the foregoing subsections of this

12 section.

13 SEC. 497. COMPUTATION OF TIME.

14 Periods of time provided for in this subtitle shall be

15 calculated in consecutive calendar days including the day

16 or days on which the actions or events occur or are to

17 occur for which the period of time is provided and includ18 ing the day on which an event occurs or is to occur from

19 which the period is to be calculated.

20 SEC. 498. SEPARABILITY.

21 If any clause, sentence, paragraph, or part of this

22 subtitle shall, for any reason, be adjudged by a court of

23 competent jurisdiction to be invalid or invalid as applied

24 to a class of cases, such judgment shall not affect, impair,

25 or invalidate the remainder thereof and of this subtitle,
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1 but shall be confined in its operation to the clause, sen2 tence, paragraph, or part thereof directly involved in the

3 controversy in which such judgment shall have been

4 rendered.

5 SEC. 499. DEFICIENCY JUDGMENT.

6 (a) IN GENERAL.—If after deducting the disburse7 ments provided for in section 493 of this subtitle, the price

8 at which the security property is sold at a foreclosure sale

9 is less than the unpaid balance of the debt secured by the

10 security property, resulting in a deficiency, the Secretary

11 may refer the matter to the Attorney General who may

12 commence an action or actions against any or all debtors

13 to recover the deficiency, unless specifically prohibited by

14 the mortgage. The United States is also entitled to recover

15 any amount authorized by section 3011 of title 28, United

16 States Code, and costs of the action.

17 (b) LIMITATION.—Any action commenced to recover

18 the deficiency must be brought within 6 years of the last

19 sale of the security property.

20 TITLE V—RURAL HOUSING

21 SEC. 501. PROGRAM AUTHORIZATIONS.

22 (a) INSURANCE AND GUARANTEE AUTHORITY.—Sec23 tion 513(a) of the Housing Act of 1949 (42 U.S.C.

24 1483(a)) is amended to read as follows:

25 ‘‘(a) INSURANCE AND GUARANTEE AUTHORITY.—
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1 ‘‘(1) IN GENERAL.—The Secretary may, to the

2 extent approved in appropriation Acts, insure and

3 guarantee loans under this title during fiscal years

4 1995 and 1996, in aggregate amounts not to exceed

5 $3,231,103,950 and $3,360,037,069, respectively, as

6 follows:

7 ‘‘(A) For insured or guaranteed loans

8 under section 502 on behalf of low-income bor9 rowers receiving assistance under section

10 521(a)(1), $1,802,500,000 for fiscal year 1995

11 and $1,856,575,000 for fiscal year 1996.

12 ‘‘(B) For guaranteed loans under section

13 502(h) on behalf of low- and moderate-income

14 borrowers, $772,500,000 for fiscal year 1995

15 and $795,675,000 for fiscal year 1996.

16 ‘‘(C) For loans under section 504,

17 $36,050,000 for fiscal year 1995 and

18 $37,131,500 for fiscal year 1996.

19 ‘‘(D) For insured loans under section 514,

20 $18,053,950 for fiscal year 1995 and

21 $18,595,569 for fiscal year 1996.

22 ‘‘(E) For insured loans under section 515,

23 $600,000,000 for fiscal year 1995 and

24 $650,000,000 for fiscal year 1996.
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1 ‘‘(F) For loans under section

2 523(b)(1)(B), $1,000,000 for fiscal year 1995

3 and $1,030,000 for fiscal year 1996.

4 ‘‘(G) For site loans under section 524,

5 $1,000,000 for fiscal year 1995 and $1,030,000

6 for fiscal year 1996.

7 ‘‘(2) LIMITATION ON USE.—Notwithstanding

8 any other provision of law, insured or guaranteed

9 loan authority in this title for any fiscal year shall

10 not be transferred or used for any purpose not speci11 fied in this title.’’.

12 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

13 513(b) of the Housing Act of 1949 (42 U.S.C. 1483(b))

14 is amended to read as follows:

15 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There

16 are authorized to be appropriated for fiscal years 1995

17 and 1996, and to remain available until expended, the fol18 lowing amounts:

19 ‘‘(1) For grants under section 502(c)(5)(C)(i),

20 $10,000,000 for fiscal year 1995, and $10,000,000

21 for fiscal year 1996.

22 ‘‘(2) For grants under section 504,

23 $31,000,000 for fiscal year 1995 and $31,930,000

24 for fiscal year 1996.
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1 ‘‘(3) For purposes of section 509(c),

2 $1,000,000 for fiscal year 1995 and $1,030,000 for

3 fiscal year 1996.

4 ‘‘(4) For project preparation grants under sec5 tion 509(f)(6), $5,688,278 for fiscal year 1995 and

6 $5,858,926 for fiscal year 1996.

7 ‘‘(5) In fiscal years 1995 and 1996, such sums

8 as may be necessary to meet payments on notes or

9 other obligations issued by the Secretary under sec10 tion 511 equal to—

11 ‘‘(A) the aggregate of the contributions

12 made by the Secretary in the form of credits on

13 principal due on loans made pursuant to section

14 503; and

15 ‘‘(B) the interest due on a similar sum

16 represented by notes or other obligations issued

17 by the Secretary.

18 ‘‘(6) For grants for service coordinators under

19 section 515(y), $1,073,260 for fiscal year 1995 and

20 $1,105,458 for fiscal year 1996.

21 ‘‘(7) For financial assistance under section

22 516—

23 ‘‘(A) for low-rent housing and related fa24 cilities for domestic farm labor under sub25 sections (a) through (j) of such section,
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1 $15,000,000 for fiscal year 1995 and

2 $18,000,000 for fiscal year 1996; and

3 ‘‘(B) for housing for rural homeless and

4 migrant farmworkers under subsection (k) of

5 such section, $10,269,230 for fiscal year 1995

6 and $11,407,307 for fiscal year 1996.

7 ‘‘(8) For grants under section 523(f),

8 $14,918,314 for fiscal year 1995 and $15,365,863

9 for fiscal year 1996.

10 ‘‘(9) For grants under section 533,

11 $33,056,408 for fiscal year 1993 and $34,048,100

12 for fiscal year 1994.

13 ‘‘(10) For grants under section 538,

14 $10,000,000 for fiscal year 1995, which shall remain

15 available until the end of fiscal year 1997.

16 ‘‘(11) For assistance under section 539,

17 $10,000,000 for fiscal year 1995 and $12,000,000

18 for fiscal year 1996.’’.

19 (c) RENTAL ASSISTANCE PAYMENT CONTRACTS.—

20 Section 513(c) of the Housing Act of 1949 (42 U.S.C.

21 1483(c)(1)) is amended by striking ‘‘(c)’’ and all that fol22 lows through the end of paragraph (1) and inserting the

23 following:

24 ‘‘(c) RENTAL AND OPERATING ASSISTANCE.—(1)

25 The Secretary, to the extent approved in appropriations
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1 Acts for fiscal years 1995 and 1996, may enter into rental

2 assistance payment contracts under section 521(a)(2)(A)

3 and contracts for operating assistance under section

4 521(a)(5), aggregating $454,079,620 for fiscal year 1995

5 and $467,702,009 for fiscal year 1996.’’.

6 (d) SUPPLEMENTAL RENTAL ASSISTANCE PAYMENT

7 CONTRACTS.—Section 513(d) of the Housing Act of 1949

8 (42 U.S.C. 1483(d)) is amended to read as follows:

9 ‘‘(d) SUPPLEMENTAL RENTAL ASSISTANCE CON10 TRACTS.—The Secretary, to the extent approved in appro11 priations Acts for fiscal years 1995 and 1996, may enter

12 into 5-year supplemental rental assistance contracts under

13 section 502(c)(5)(D) aggregating $13,070,160 for fiscal

14 year 1995 and $13,462,265 for fiscal year 1996.’’.

15 (e) RURAL HOUSING VOUCHER AUTHORITY.—Sec16 tion 513(e) of the Housing Act of 1949 (42 U.S.C.

17 1483(e)) is amended to read as follows:

18 ‘‘(e) RURAL HOUSING VOUCHERS.—There are au19 thorized to be appropriated for rural housing vouchers

20 under section 542, $30,000,000 for fiscal year 1995 and

21 $40,000,000 for fiscal year 1996.’’.

22 (f) RENTAL HOUSING LOAN AUTHORITY.—Section

23 515(b) of the Housing Act of 1949 (42 U.S.C. 1485(b))

24 is amended—

25 (1) by striking paragraph (4); and
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1 (2) by redesignating paragraphs (5) and (6) as

2 paragraphs (4) and (5), respectively.

3 SEC. 502. ELIGIBILITY OF NATIVE AMERICANS FOR RURAL

4 HOUSING PROGRAMS.

5 Section 501(b)(6) of the Housing Act of 1949 (42

6 U.S.C. 1471(b)(6)) is amended by adding at the end the

7 following new sentence: ‘‘In any case in which assistance

8 made available under this title may be provided to a State

9 or State agency or in which a State or State agency is

10 eligible to participate in a program or activity under this

11 title, such assistance may also be provided to Indian tribes

12 and tribal agencies and Indian tribes and tribal agencies

13 shall be eligible to participate, respectively.’’.

14 SEC. 503. ESCROW FUND.

15 Section 501(e) of the Housing Act of 1949 (42

16 U.S.C. 1471(e)) is amended by striking the third and

17 fourth sentences and inserting the following: ‘‘The Sec18 retary may establish in the Treasury of the United States

19 an escrow fund for the deposit of such periodic payments.

20 The Secretary may direct the Secretary of the Treasury

21 to invest and reinvest amounts in the escrow fund in pub22 lic debt securities with maturities suitable for the needs

23 of the escrow fund and bearing interest at rates deter24 mined by the Secretary of the Treasury, taking into con25 sideration the current average market yield on outstand-
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1 ing marketable obligations of the United States of com2 parable maturities. Any interest earned shall be credited

3 to the escrow fund. The Secretary shall disburse amounts

4 at the appropriate time or times for the purposes for which

5 the amounts were escrowed in the fund. The Secretary

6 shall pay a uniform rate of interest on escrowed amounts.

7 The interest rate to be paid on such amounts shall be de8 termined by the Secretary based on the interest earned

9 less an amount not to exceed 1 percent to be used to offset

10 expenses in carrying out the provisions of this title.’’.

11 SEC. 504. SECTION 502 HOMEOWNERSHIP LOANS.

12 (a) REMOTE RURAL AREAS.—Section 502(f) of the

13 Housing Act of 1949 (42 U.S.C. 1472(f)) is amended—

14 (1) by striking paragraph (1);

15 (2) by redesignating paragraph (2) as para16 graph (1); and

17 (3) by adding at the end the following new

18 paragraph:

19 ‘‘(2) SECURITY.—In making a loan under this

20 section for housing located in a rural area that is a

21 remote rural area (which shall include tribal allotted

22 or Indian trust land) where the borrower resides or

23 is employed, the Secretary shall consider the actual

24 replacement cost of the property and structure for
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1 which the loan is made as adequate security for the

2 loan required under subsection (b).’’.

3 (b) PERMANENT DEFERRED MORTGAGE PRO4 GRAM.—Section 502(g) of the Housing Act of 1949 (42

5 U.S.C. 1472(g)) is amended to read as follows:

6 ‘‘(g) DEFERRED MORTGAGE PROGRAM.—With re7 spect to families or persons otherwise eligible for assist8 ance under subsection (d) but having incomes below the

9 amount determined to qualify for a loan under this sec10 tion, the Secretary may defer mortgage payments beyond

11 the amount affordable at 1 percent interest, taking into

12 consideration income, taxes and insurance. Deferred

13 amounts shall not exceed 25 percent of the amount of the

14 payment due at 1 percent interest and shall be subject

15 to recapture.’’.

16 (c) REAMORTIZATION.—Section 505 of the Housing

17 Act of 1949 (42 U.S.C. 1475) is amended—

18 (1) in the section heading, by inserting ‘‘,

19 REAMORTIZATION,’’ after ‘‘MORATORIUM’’;

20 (2) in subsection (a), by inserting before the

21 last sentence the following: ‘‘The Secretary may not

22 foreclose such a mortgage securing such a loan upon

23 which a moratorium has been granted solely because

24 the borrower does not have the ability to repay the

25 loan. Upon the expiration of a moratorium, the Sec-
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1 retary shall, subject to the availability of amounts

2 for assistance under this title, enter into an agree3 ment with the borrower providing to the borrower

4 such assistance as the Secretary is authorized to

5 provide under this title and may foreclose with re6 spect to the loan only if the borrower fails to make

7 3 monthly payments required under such agree8 ment.’’;

9 (3) by redesignating subsection (b) as sub10 section (c); and

11 (4) by inserting after subsection (a) the follow12 ing new subsection:

13 ‘‘(b) REAMORTIZATION.—

14 ‘‘(1) AUTHORITY.—With respect to a loan made

15 under section 502, after a moratorium under sub16 section (a) of this section for the loan or at any

17 other time the Secretary considers appropriate, the

18 Secretary may reamortize the outstanding indebted19 ness, including principal and interest, under the loan

20 for a period not to exceed 38 years from the date

21 of the making of the loan, subject to the provisions

22 of paragraph (2). The authority of the Secretary

23 under this subsection to modify loans shall be effec24 tive for any fiscal year only to such extent or in such
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1 amounts as are or have been provided for such costs

2 in appropriation Acts for such fiscal year.

3 ‘‘(2) GRADUATED REPAYMENT AGREEMENT.—

4 In reamortizing a loan pursuant to paragraph (1),

5 the Secretary may lower the interest rate to the ex6 isting lending rate for loans under section 502 or es7 tablish a schedule of payments under the loan that

8 provides, after the application of interest credit, for

9 payments in an amount less than the amount of the

10 payments originally provided for under the loan

11 agreement for a period not exceeding that required

12 to amortize the loan over its term, except that such

13 period may not exceed 3 years.’’.

14 (d) ELIGIBILITY OF AREA.—Section 502 of the

15 Housing Act of 1949 (42 U.S.C. 1472) is amended by

16 adding at the end the following new subsection:

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

18 make loans under this section for properties in the Pine

19 View West Subdivision, located in Gibsonville, North Caro20 lina, in the same manner as provided under this section

21 for properties in rural areas.’’.

22 SEC. 505. LOAN GUARANTEES.

23 Section 502(h)(11) of the Housing Act of 1949 (42

24 U.S.C. 1472(h)(11)) is amended by adding at the end the

25 following new sentence: ‘‘The Secretary may not pool or
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1 reallocate any authority to guarantee loans under this sec2 tion that was allocated for use in any State before August

3 1 of the fiscal year in which such authority was allo4 cated.’’.

5 SEC. 506. PREPAYMENT OF RURAL RENTAL HOUSING

6 LOANS.

7 (a) TECHNICAL ASSISTANCE GRANTS AND LOANS

8 FOR NONPROFIT AND PUBLIC AGENCY PURCHASERS OF

9 PREPAYMENT PROPERTIES.—Section 502(c)(5)(C)(i) of

10 the Housing Act of 1949 (42 U.S.C. 1472(c)(5)(C)(i)) is

11 amended to read as follows:

12 ‘‘(i) to the extent provided in appropriation

13 Acts, make a grant or predevelopment loan in an

14 amount not exceeding $50,000 to the nonprofit or15 ganization or public agency whose offer to purchase

16 is accepted under this paragraph to cover reasonable

17 costs, as determined by the Secretary and not in18 cluding the purchase price, incurred by the organiza19 tion or agency in purchasing and assuming respon20 sibilities for the housing and related facilities in21 volved, which may include costs for pursuing acquisi22 tion, appraisals, financing fees, accounting, adminis23 tration, consultants, legal assistance, architectural

24 assistance, engineering assistance, application fees,

25 overhead, and other expenses;’’.
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1 (b) EQUITY TAKEOUT LOANS.—

2 (1) AUTHORITY AND LIMITATION.—Section

3 502(c)(4)(B)(iv) of the Housing Act of 1949 (42

4 U.S.C. 1472(c)(4)(B)(iv)) is amended by inserting

5 before the period at the end the following: ‘‘or under

6 paragraphs (1) and (2) of section 514(j), except that

7 an equity loan referred to in this clause may not be

8 made available after the date of the enactment of

9 the Housing and Community Development Act of

10 1994 unless the Secretary determines that the other

11 incentives available under this subparagraph are not

12 adequate to provide a fair return on the investment

13 of the borrower, to prevent prepayment of the loan

14 insured under section 514 or 515, or to prevent the

15 displacement of tenants of the housing for which the

16 loan was made’’.

17 (2) APPROVAL OF ASSISTANCE.—Subparagraph

18 (C) of section 502(c)(4) of the Housing Act of 1949

19 is amended by striking the matter preceding clause

20 (i) and inserting the following:

21 ‘‘(C) APPROVAL OF ASSISTANCE.—The Secretary

22 may approve assistance under subparagraph (B) for as23 sisted housing only if the restrictive period has expired for

24 any loan for the housing made or insured under section

25 514 or 515 pursuant to a contract entered into after De-
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1 cember 21, 1979, but before the date of the enactment

2 of the Department of Housing and Urban Development

3 Reform Act of 1989, and the Secretary determines that

4 the combination of assistance provided—’’.

5 (3) LOAN TERMS.—Section 514 of the Housing

6 Act of 1949 (42 U.S.C. 1484) is amended by adding

7 at the end the following new subsection:

8 ‘‘(j) EQUITY TAKEOUT LOANS FOR PRESERVATION

9 OF LOW-INCOME HOUSING.—With respect to a loan in10 sured under subsection (a), the Secretary may—

11 ‘‘(1) make or insure an equity loan in the form

12 of a supplemental loan for the purpose of equity

13 takeout to the owner of housing financed with a loan

14 insured under this section pursuant to a contract en15 tered into before December 15, 1989, for the pur16 pose of extending the affordability of the housing for

17 low-income families or persons and very low-income

18 families or persons for not less than 20 years, except

19 that such loan may not exceed 90 percent of the

20 value of the equity in the project as determined by

21 the Secretary;

22 ‘‘(2) transfer and reamortize an existing loan in

23 connection with assistance provided under paragraph

24 (1); and
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1 ‘‘(3) make or insure a loan to enable a non2 profit organization or public agency to make a pur3 chase described in section 502(c)(5).’’.

4 (4) TECHNICAL CORRECTION RELATING TO

5 SECTION 515 HOUSING.—Section 515(c)(1) of the

6 Housing Act of 1949 (42 U.S.C. 1485(c)(1)) is

7 amended by striking ‘‘December 21, 1979’’ and in8 serting ‘‘December 15, 1989’’.

9 (c) PHASE-IN OF RENT INCREASES.—Section

10 502(c)(4)(B)(vi) of the Housing Act of 1949 (42 U.S.C.

11 1472(c)(4)(B)(vi)) is amended by inserting before the pe12 riod at the end the following: ‘‘, except that any such in13 crease in rents for current tenants (except for increases

14 made necessary by increases in operating costs) shall (I)

15 be phased in equally over a period of not less than 3 years,

16 if such increase is 30 percent or more, and (II) be limited

17 to not more than 10 percent per year if such increase is

18 more than 10 percent but less than 30 percent’’.

19 (d) TREATMENT OF ACCELERATION UPON DE20 FAULT.—Section 502 of the Housing Act of 1949 (42

21 U.S.C. 1472) is amended—

22 (1) in subsection (b)(2), by inserting ‘‘or any

23 payment in the case of acceleration of the amount

24 due under such a loan pursuant to any default,’’

25 after ‘‘515’’; and
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1 (2) in subsection (c)—

2 (A) in paragraph (1)(A), by inserting be3 fore the 1st comma the following: ‘‘, accept any

4 payment tendered in the case of acceleration of

5 the amount due pursuant to any default on’’;

6 (B) in paragraph (1)(B), by inserting be7 fore the 1st comma the following: ‘‘, accept any

8 payment tendered in the case of acceleration of

9 the amount due pursuant to any default on’’;

10 (C) in paragraph (2)—

11 (i) by inserting after ‘‘prepaid’’ the

12 following: ‘‘, paid in full pursuant to accel13 eration of the amount due resulting from

14 default,’’; and

15 (ii) by inserting ‘‘, payment,’’ after

16 ‘‘prepayment’’;

17 (D) in paragraph (4)(A), by inserting after

18 ‘‘prepay,’’ the following: ‘‘accepting any pay19 ment tendered in the case of acceleration of the

20 amount due pursuant to any default on,’’; and

21 (E) in paragraph (5)—

22 (i) in subparagraph (A)(ii), by insert23 ing after ‘‘prepay,’’ the following: ‘‘accept

24 the payment tendered in the case of accel-
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1 eration of the amount due pursuant to de2 fault on,’’;

3 (ii) in the 1st sentence of subpara4 graph (F), by inserting after ‘‘prepay,’’ the

5 following: ‘‘accept payment tendered in the

6 case of acceleration of the amount due pur7 suant to default on,’’;

8 (iii) in the 2d sentence of subpara9 graph (F), by inserting after ‘‘prepay,’’ the

10 following: ‘‘payment tendered in the case

11 of acceleration of the amount due pursuant

12 to default,’’;

13 (iv) in the last sentence of subpara14 graph (F), by striking ‘‘offers to prepay,’’

15 and inserting the following: ‘‘such offers to

16 prepay, payments in the case of accelera17 tion of the amount due pursuant to de18 fault,’’; and

19 (v) in the matter in subparagraph (G)

20 that precedes clause (i), by inserting after

21 ‘‘prepay,’’ the following: ‘‘any payment ten22 dered in the case of acceleration of the

23 amount due pursuant to default on,’’.
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1 (e) TEST FOR ALLOWABLE PREPAYMENT.—Section

2 502(c)(5)(G)(ii) of the Housing Act of 1949 (42 U.S.C.

3 1472(c)(5)(G)(ii)) is amended to read as follows:

4 ‘‘(ii) the Secretary makes a written finding

5 that—

6 ‘‘(I) prepayment, payment in the case of

7 acceleration, or refinancing will not (a) materi8 ally increase economic hardship for current ten9 ants, and (b) involuntarily displace current ten10 ants (except for good cause), where comparable

11 and affordable housing is not readily available

12 at the time of displacement, determined without

13 regard to the availability of Federal housing as14 sistance that would address any such hardship

15 or involuntary displacement; and

16 ‘‘(II) the supply of vacant, comparable

17 housing is sufficient to ensure that such pre18 payment will not materially affect (a) the avail19 ability of decent, safe, and sanitary housing af20 fordable to low-income and very low-income

21 families or persons in the area that the housing

22 could reasonably be expected to serve, (b) the

23 ability of low-income and very low-income fami24 lies or persons to find affordable, decent, safe,

25 and sanitary housing near employment opportu-
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1 nities, or (c) the housing opportunities of mi2 norities in the community within which the

3 housing is located.’’.

4 SEC. 507. DESIGNATION OF UNDERSERVED AREAS AND

5 RESERVATION OF ASSISTANCE.

6 (a) REAUTHORIZATION AND SET-ASIDE.—Section

7 509(f)(4) of the Housing Act of 1949 (42 U.S.C.

8 1479(f)(4)) is amended—

9 (1) in subparagraph (A)—

10 (A) in the first sentence—

11 (i) by striking ‘‘5.0 percent in fiscal

12 years 1993 and 1994’’ and inserting ‘‘not

13 less than 5 percent or more than 10 per14 cent for each of fiscal years 1995 and

15 1996’’; and

16 (ii) by striking ‘‘514, 515, and 524’’

17 and inserting ‘‘and 515’’; and

18 (B) in the second sentence, by striking

19 ‘‘sections 514 and 515’’ and inserting ‘‘section

20 515’’; and

21 (2) in subparagraph (B)(ii), by striking ‘‘5 per22 cent’’ and inserting ‘‘10 percent’’.

23 (b) POVERTY LEVEL FOR DESIGNATION.—Section

24 509(f)(1) of the Housing Act of 1949 is amended—
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1 (1) in subparagraph (A), by striking ‘‘20 per2 cent’’ and inserting ‘‘15 percent’’; and

3 (2) in subparagraph (B), by striking ‘‘10 per4 cent’’ and inserting ‘‘5 percent’’.

5 (c) POVERTY LEVEL FOR PREFERENCE.—Section

6 509(f)(2) of the Housing Act of 1949 is amended—

7 (1) in subparagraph (A), by striking ‘‘28 per8 cent’’ and inserting ‘‘20 percent’’; and

9 (2) in subparagraph (B), by striking ‘‘13 per10 cent’’ and inserting ‘‘7 percent’’.

11 (d) ADDITIONAL QUALIFICATION AS UNDERSERVED

12 AREA.—Section 509(f)(1) of the Housing Act of 1949 is

13 amended by inserting after subparagraph (B) the follow14 ing new flush sentence:

15 ‘‘The Secretary may also designate a county or com16 munity as a targeted underserved area if the Sec17 retary determines that the county or community has

18 severe unmet housing needs, including needs caused

19 by severe economic and social dislocation such as

20 natural disasters, structural employment changes, or

21 persistent poverty, or has experienced long-term pop22 ulation and job losses.’’.

23 (e) GEOGRAPHICAL DIVERSITY.—Section 509(f)(1)

24 of the Housing Act of 1949 is amended by adding at the

25 end the following: ‘‘In designating targeted underserved
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1 areas under this paragraph for any fiscal year, the Sec2 retary may not designate more than 10 counties and com3 munities located in any single State or in the Common4 wealth of Puerto Rico. If more than 10 counties and com5 munities in any single State or the Commonwealth of

6 Puerto Rico qualify under this paragraph for designation

7 as an underserved area, the Secretary shall designate the

8 counties and communities for which the sum of the per9 centages under subparagraphs (A) and (B) are the great10 est.’’.

11 (f) 2-YEAR AND 3-YEAR DESIGNATIONS.—Section

12 509(f) of the Housing Act of 1949 (42 U.S.C. 1479(f))

13 is amended—

14 (1) in paragraph (1)—

15 (A) in the 1st sentence, by striking ‘‘in

16 each fiscal year’’; and

17 (B) in the 2d sentence, by striking ‘‘year

18 in’’ and inserting ‘‘first year for’’;

19 (2) in paragraph (2)—

20 (A) in the first sentence, by striking

21 ‘‘paragraph (4)’’ and inserting ‘‘paragraph

22 (5)’’; and

23 (B) by striking the last sentence;

24 (3) in paragraph (3)(B), by striking ‘‘para25 graph (2)’’ and inserting ‘‘paragraph (3)’’;
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1 (4) in paragraph (4)(A), by striking ‘‘paragraph

2 (7)’’ and inserting ‘‘paragraph (8)’’;

3 (5) by redesignating paragraphs (2) through

4 (8) as paragraphs (3) through (9), respectively; and

5 (6) by inserting after paragraph (1) the follow6 ing new paragraph:

7 ‘‘(2) TIMING AND DURATION OF DESIGNA8 TIONS.—

9 ‘‘(A) IN GENERAL.—Except as provided in

10 subparagraph (B), the Secretary shall redesig11 nate the targeted underserved areas under this

12 subsection once every 2 fiscal years and such

13 designations shall remain in effect for a period

14 of 2 fiscal years. The first such 2-year designa15 tion shall be made for fiscal years 1995 and

16 1996.

17 ‘‘(B) DESIGNATIONS FOR INDIAN AREAS.—

18 The Secretary shall ensure that, at all times,

19 not less than 5 counties or communities that

20 contain tribal allotted or Indian trust land are

21 included among the 100 counties and commu22 nities designated as targeted underserved areas.

23 The Secretary shall redesignate the counties or

24 communities designated as a targeted under25 served area in compliance with this subpara-
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1 graph once every 3 fiscal years and such des2 ignations shall remain in effect for 3 fiscal

3 years. The first such 3-year designation shall be

4 made for fiscal years 1995 through 1997. Upon

5 designation, the Secretary shall specify any tar6 geted underserved area designated in compli7 ance with this subparagraph.’’.

8 SEC. 508. ADMINISTRATIVE APPEALS.

9 (a) APPEALS.—Section 510(g) of the Housing Act of

10 1949 (42 U.S.C. 1480(g)) is amended—

11 (1) by inserting after ‘‘termination and’’ the

12 following: ‘‘, in the case of any eviction not related

13 to any drug-related or criminal activity, nonpayment

14 of rent, or activity that threatens the health, safety,

15 or right to peaceful enjoyment of the premises by

16 other residents,’’; and

17 (2) by inserting after ‘‘reverse the decision’’ the

18 following: ‘‘and is mutually selected within a reason19 able period of time by the person adversely affected

20 by the reduction or termination of assistance and

21 the person reducing or terminating assistance’’.

22 (b) ATTORNEYS.—Section 510(d)(1) of the Housing

23 Act of 1949 is amended—

24 (1) in the matter preceding subparagraph (A),

25 by inserting ‘‘or 515’’ after ‘‘502’’; and
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1 (2) in subparagraph (C)(ii), by inserting ‘‘with

2 respect to litigation under section 502,’’ before ‘‘rep3 resentation’’.

4 SEC. 509. SECTION 515 RURAL RENTAL HOUSING.

5 (a) LOAN TERM.—Section 515(a)(2) of the Housing

6 Act of 1949 (42 U.S.C. 1485(a)(2)) is amended by insert7 ing before the semicolon the following: ‘‘, except that the

8 Secretary may also make loans for a period of up to 30

9 years from the making of the loan’’.

10 (b) DEVELOPMENT COST.—Section 515(e)(4) of the

11 Housing Act of 1949 is amended by inserting ‘‘franchise

12 fees,’’ after ‘‘impact fees,’’.

13 (c) LIMITATION ON PROJECT TRANSFERS.—Section

14 515 of the Housing Act of 1949 (42 U.S.C. 1485) is

15 amended by inserting after subsection (g) the following

16 new subsection:

17 ‘‘(h) PROJECT TRANSFERS.—After the date of the

18 enactment of the Housing and Community Development

19 Act of 1994, any interest in the ownership of a project

20 for which a loan is made or insured under this section

21 may be transferred only if the Secretary determines that

22 such transfer would be in the best interests of the tenants

23 of the housing for which the loan was made or insured

24 and of the Federal Government.’’.
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1 (d) EQUITY LOANS.—Section 515(t) of the Housing

2 Act of 1949 is amended—

3 (1) by striking paragraphs (4) and (5); and

4 (2) by redesignating paragraphs (6) through

5 (8) as paragraphs (4) through (6), respectively.

6 (e) SET-ASIDE FOR NONPROFIT ENTITIES.—The

7 first sentence of section 515(w)(1) of the Housing Act of

8 1949 (42 U.S.C. 1485(w)(1)) is amended by striking ‘‘fis9 cal years 1993 and 1994’’ and inserting ‘‘fiscal years 1995

10 and 1996’’.

11 (f) AUTHORITY FOR STREAMLINED MORTGAGE

12 MODIFICATIONS.—Section 515 of the Housing Act of

13 1949 (42 U.S.C. 1485) is amended by adding at the end

14 the following new subsection:

15 ‘‘(aa) MORTGAGE MODIFICATIONS.—

16 ‘‘(1) PURPOSE AND AUTHORITY.—In order to

17 reduce the amount of debt service payments and op18 erating costs of borrowers under loans made or in19 sured under this section, reduce rents paid by resi20 dents of housing financed with such loans, and re21 duce the amount of rental assistance necessary for

22 such housing, the Secretary may refinance the out23 standing principal obligation of a loan made under

24 this subsection in accordance with the provisions ap25 plicable (at the time of such refinancing) to loans
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1 made under this section that the Secretary deter2 mines are appropriate for purposes of this sub3 section and the terms and conditions of the original

4 loan. The authority of the Secretary under this sub5 section to modify loans shall be effective for any fis6 cal year only to such extent or in such amounts as

7 are or have been provided for such costs in appro8 priation Acts for such fiscal year.

9 ‘‘(2) USE OF HOUSING.—Any terms of the

10 original loan relating to use of the housing and re11 lated facilities for the purposes specified in this sec12 tion shall continue to apply to the housing in the

13 same manner as if the loan were not modified under

14 this subsection.

15 ‘‘(3) TREATMENT OF MODIFIED MORTGAGE

16 UNDER PREPAYMENT RESTRICTIONS.—Any loan

17 modified under this subsection shall be considered a

18 loan originally made under this section, for purposes

19 of the limitations under subsection (c) on prepay20 ment and refinancing under subsection (b)(3). For

21 purposes of determining the financial status of the

22 loan or the housing securing the loan, the Secretary

23 may consider the terms of the refinancing.

24 ‘‘(4) TERMS.—The Secretary shall, by regula25 tion, establish any requirements and conditions the
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1 Secretary considers appropriate to provide for refi2 nancing under this subsection, including any limita3 tions on term of the refinancing loan.

4 ‘‘(5) EXPEDITED PROCEDURE.—The Secretary

5 shall establish an expedited procedure for providing

6 refinancing under this subsection, which—

7 ‘‘(A) shall not require application under

8 the same procedures applicable to loans made

9 under subsection (a); and

10 ‘‘(B) shall take into consideration any in11 formation obtained by the Secretary in making

12 and servicing the loan under subsection (a) for

13 which refinancing under this subsection is re14 quested.’’.

15 (g) REPEAL OF PROHIBITIONS.—Section 515 of the

16 Housing Act of 1949 is amended by striking subsection

17 (z).

18 (h) LOCATION OF PROJECTS.—Section 532 of the

19 Housing Act of 1949 (42 U.S.C. 1490l) is amended—

20 (1) in subsection (a), by inserting ‘‘other than

21 assistance under section 515’’ after ‘‘in making as22 sistance’’; and

23 (2) by adding at the end the following new sub24 section:

25 ‘‘(c) ALLOCATION OF SECTION 515 LOANS.—
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1 ‘‘(1) PROCEDURE.—The Secretary shall make

2 assistance under section 515 available pursuant to

3 an objective procedure established by the Secretary,

4 under which the Secretary shall identify counties

5 and communities having the greatest need for such

6 assistance and designate such counties and commu7 nities to receive such assistance. Under such proce8 dure, the Secretary shall use objective measures to

9 determine the need for rental housing assistance,

10 which may include the incidence of poverty, sub11 standard housing, lack of mortgage credit, lack or

12 insufficient amount of affordable housing, and other

13 factors demonstrating a need for affordable housing.

14 ‘‘(2) INFORMATION.—The Secretary shall use

15 information from the decennial censuses of the Unit16 ed States, relevant comprehensive affordable housing

17 strategies under section 105 of the Cranston-Gon18 zalez National Affordable Housing Act, and other

19 reliable sources obtained by the Secretary which

20 demonstrate the need for affordable rental housing

21 in rural areas.

22 ‘‘(3) DESIGNATION.—A designation under para23 graph (1) shall not be effective for a period of more

24 than 3 years, but may be renewed by the Secretary

25 under the procedure under paragraph (1). The Sec-
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1 retary shall cause to be published in the Federal

2 Register a list of areas designated under paragraph

3 (1) and a reasonable timetable for submission of

4 preapplications. The Secretary shall take such other

5 reasonable actions as the Secretary considers appro6 priate to notify the public of such designations.’’.

7 SEC. 510. OPTIONAL CONVERSION OF RENTAL ASSISTANCE

8 PAYMENTS TO OPERATING SUBSIDY FOR MI9 GRANT FARMWORKER PROJECTS.

10 (a) IN GENERAL.—Section 521(a) of the Housing

11 Act of 1949 (42 U.S.C. 1490a(a)) is amended by adding

12 at the end the following new paragraph:

13 ‘‘(5) OPERATING ASSISTANCE FOR MIGRANT FARM14 WORKER PROJECTS.—

15 ‘‘(A) AUTHORITY.—In the case of housing (and

16 related facilities) for migrant farmworkers provided

17 or assisted with a loan under section 514 or a grant

18 under section 516, the Secretary may, at the request

19 of the owner of the project, use amounts provided

20 for rental assistance payments under paragraph (2)

21 to provide assistance for the costs of operating the

22 project. Any project assisted under this paragraph

23 may not receive rental assistance under paragraph

24 (2).
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1 ‘‘(B) AMOUNT.—In any fiscal year, the assist2 ance provided under this paragraph for any project

3 shall not exceed an amount equal to 90 percent of

4 the operating costs for the project for the year, as

5 determined by the Secretary. The amount of assist6 ance to be provided for a project under this para7 graph shall be an amount that makes units in the

8 project available to migrant farmworkers in the area

9 of the project at rates generally not exceeding 30

10 percent of the monthly adjusted incomes of such

11 farmworkers, based on the prevailing incomes of

12 such farmworkers in the area.

13 ‘‘(C) SUBMISSION OF INFORMATION.—The

14 owner of a project assisted under this paragraph

15 shall be required to provide to the Secretary, at least

16 annually, a budget of operating expenses and esti17 mated rental income, which the Secretary shall use

18 to determine the amount of assistance for the

19 project.

20 ‘‘(D) DEFINITIONS.—For purposes of this

21 paragraph, the following definitions shall apply:

22 ‘‘(i) The term ‘migrant farmworker’ shall

23 have the same meaning given the term in sec24 tion 516(k)(7).
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1 ‘‘(ii) The term ‘operating cost’ means ex2 penses incurred in operating a project, includ3 ing expenses for—

4 ‘‘(I) administration, maintenance, re5 pair, and security of the project;

6 ‘‘(II) utilities, fuel, furnishings, and

7 equipment for the project; and

8 ‘‘(III) maintaining adequate reserve

9 funds for the project.’’.

10 (b) CONFORMING AMENDMENTS.—Title V of the

11 Housing Act of 1949 (42 U.S.C. 1471 et seq.) is amend12 ed—

13 (1) in section 502—

14 (A) in subsection (c)(1)(A)(i), by striking

15 ‘‘or (a)(2)’’ and inserting ‘‘, (a)(2), or (5)’’;

16 (B) in subsection (c)(4)(B)(ii), by inserting

17 before the period at the end the following: ‘‘, or

18 additional assistance or an increase in assist19 ance provided under section 521(a)(5)’’;

20 (C) in subsection (c)(4)(B)(iii), by insert21 ing before the period at the end the following:

22 ‘‘, or current tenants of projects not assisted

23 under section 521(a)(5)’’;

24 (D) in subsection (c)(5)(C)(iii)—

25 (i) by striking the 2d comma; and
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1 (ii) by inserting ‘‘or any assistance

2 payments received under section

3 521(a)(5),’’ before ‘‘with respect’’; and

4 (E) in subsection (c)(5)(D), by inserting

5 before the period at the end the following: ‘‘or,

6 in the case of housing assisted under section

7 521(a)(5), does not exceed the rents established

8 for the project under such section’’;

9 (2) in the second sentence of section 509(f)(5)

10 (as redesignated by the preceding provisions of this

11 title), by striking ‘‘an amount of section 521 rental

12 assistance’’ and inserting ‘‘, from amounts available

13 for assistance under paragraphs (2) and (5) of sec14 tion 521(a), an amount’’;

15 (3) in section 513(c)(2)—

16 (A) in the matter preceding subparagraph

17 (A), by inserting ‘‘or contracts for operating as18 sistance under section 521(a)(5)’’ after

19 ‘‘521(a)(2)(A)’’;

20 (B) in subparagraph (A), by inserting ‘‘or

21 operating assistance contracts’’ after ‘‘con22 tracts’’;

23 (C) in subparagraph (B), by striking

24 ‘‘rental’’ each place it appears; and
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1 (D) in subparagraph (C), by inserting ‘‘or

2 operating assistance contracts’’ after ‘‘con3 tracts’’;

4 (4) in section 521(a)(2)(B)—

5 (A) by inserting ‘‘or paragraph (5)’’ after

6 ‘‘this paragraph’’; and

7 (B) by striking ‘‘which shall’’ and all that

8 follows through the period at the end and in9 serting the following: ‘‘. The budget (and the

10 income, in the case of a project assisted under

11 this paragraph) shall be used to determine the

12 amount of the assistance for each project.’’;

13 (5) in section 521(c), by striking ‘‘subsection

14 (a)(2)’’ and inserting ‘‘subsections (a)(2) and

15 (a)(5)’’;

16 (6) in section 521(e), by inserting after ‘‘recipi17 ent’’ the following: ‘‘or any tenant in a project as18 sisted under subsection (a)(5)’’; and

19 (7) in section 530, by striking ‘‘rental assist20 ance payments with respect to such project under

21 section 521(a)(2)(A)’’ and inserting ‘‘assistance pay22 ments with respect to such project under section

23 521(a)(2)(A) or 521(a)(5)’’.
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1 SEC. 511. DEFINITION OF RURAL AREA.

2 The last sentence of section 520 of the Housing Act

3 of 1949 (42 U.S.C. 1490) is amended by striking ‘‘city

4 of’’ and inserting ‘‘cities of South Tucson, Arizona, and’’.

5 SEC. 512. ELIGIBILITY OF MANUFACTURED HOME PARKS

6 FOR BUILDING SITE LOANS FOR COOPERA7 TIVES.

8 The first sentence of section 524(a)(1) of the Hous9 ing Act of 1949 (42 U.S.C. 1490d(a)(1)) is amended by

10 inserting before the period at the end the following: ‘‘, and

11 for the acquisition and development of manufactured home

12 parks owned by nonprofit organizations for future owner13 ship by low- and moderate-income residents of the park’’.

14 SEC. 513. RURAL HOUSING ASSISTANCE TARGETING RE15 PORT.

16 Section 532(a) of the Housing Act of 1949 (42

17 U.S.C. 1490l) is amended by adding at the end the follow18 ing new flush material:

19 ‘‘The Secretary shall submit a report to the Congress for

20 each fiscal year describing the geographical distribution

21 of housing for which eligible loan applications for assist22 ance under this title are submitted in such year and for

23 which amounts are obligated in such year. The report shall

24 describe the areas in which the housing to be assisted

25 under the applications is located, the number of eligible

26 applications received for housing in such areas, the num-
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1 ber of eligible applications for housing in such areas that

2 were approved and funded and the amounts of such fund3 ing, the extent of the rural character of such areas, and

4 any actions taken by the Secretary to comply with the re5 quirement under paragraph (3). The report for a fiscal

6 year shall be submitted not later than 180 days after the

7 conclusion of such fiscal year.’’.

8 SEC. 514. PRIORITY FOR RURAL HOUSING VOUCHER AS9 SISTANCE.

10 Section 542 of the Housing Act of 1949 (42 U.S.C.

11 1490r) is amended by adding at the end the following new

12 subsection:

13 ‘‘(c) PRIORITY.—

14 ‘‘(1) REQUIREMENT.—In providing assistance

15 under this section, the Secretary shall give pref16 erence to providing assistance for rental housing

17 that—

18 ‘‘(A) is financed or assisted with a loan,

19 guarantee, insurance, or other assistance pro20 vided under this title; and

21 ‘‘(B)(i) has a significant number of units,

22 as determined by the Secretary, that have been

23 vacant for extended periods; or

24 ‘‘(ii) is occupied by a significant number of

25 families, as determined by the Secretary, who
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1 pay as rent for a unit in the housing an amount

2 exceeding 30 percent of the family’s monthly

3 adjusted income.

4 ‘‘(2) PROJECT-BASED ASSISTANCE.—To provide

5 assistance according to the preference under para6 graph (1), the Secretary may enter into contracts

7 with owners of housing described in paragraph (1)

8 to provide voucher assistance payments that are at9 tached to such housing on behalf of very low-income

10 families who reside in such housing.’’.

11 SEC. 515. NATIVE AMERICAN RURAL HOUSING CAPACITY

12 DEMONSTRATION PROGRAM.

13 Title V of the Housing Act of 1949 is amended by

14 inserting after section 537 (42 U.S.C. 1490p–1) the fol15 lowing new section:

16 ‘‘SEC. 538. RURAL HOUSING CAPACITY DEMONSTRATION

17 PROGRAM FOR NATIVE AMERICANS AND

18 ALASKAN NATIVES.

19 ‘‘(a) AUTHORITY.—The Secretary shall carry out a

20 program under this section to demonstrate the effective21 ness of assisting Native Americans and Alaskan Natives

22 in underserved areas to apply for, obtain, and use housing

23 assistance under this title.

24 ‘‘(b) GRANTS.—Under the demonstration under this

25 section, the Secretary shall make grants to technical as-
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1 sistance providers selected under subsection (f) to carry

2 out activities under subsection (c) with respect to tribes

3 selected under subsection (e) (and members of the tribes)

4 in the selected areas. Of the amounts provided to a tech5 nical assistance provider under a grant under this section,

6 40 percent shall be disbursed to the technical assistance

7 provider in fiscal year 1995, 30 percent shall be so dis8 bursed in fiscal year 1996, and 30 percent shall be so dis9 bursed in fiscal year 1997.

10 ‘‘(c) USE OF ASSISTANCE.—

11 ‘‘(1) ELIGIBLE ACTIVITIES.—Any amounts pro12 vided to a technical assistance provider under a

13 grant under this section shall be used by the tech14 nical assistance provider only—

15 ‘‘(A) to train individuals for employment

16 as local project coordinators under paragraph

17 (2), which shall include training regarding the

18 availability, application for, and use of housing

19 assistance under this title with respect to tribes

20 and members of tribes;

21 ‘‘(B) to provide ongoing technical assist22 ance and training to local project coordinators;

23 ‘‘(C) to provide assistance to the tribes se24 lected under subsection (e) in the selected

25 areas, or to Native American or Alaskan Native
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1 housing organizations serving such tribes, to

2 employ local project coordinators trained pursu3 ant to subparagraph (A); and

4 ‘‘(D) to establish a revolving fund to pro5 vide loans to tribes and members of tribes for

6 customary and reasonable costs incurred in pre7 paring and submitting applications for housing

8 assistance under this title to be used in the se9 lected areas (including costs of credit reports),

10 except that not more than $1,500 may be pro11 vided for the purpose under this subparagraph

12 to any single tribe or Native American or Alas13 kan Native housing organization.

14 ‘‘(2) LOCAL PROJECT COORDINATOR.—For pur15 poses of this section, a local project coordinator shall

16 be an individual who—

17 ‘‘(A) is employed by a tribe selected under

18 subsection (e) in, or Native American or Alas19 kan Native housing organization serving, the

20 selected area;

21 ‘‘(B) provides advice and assistance to the

22 tribe or the tribes served by the organization

23 (and members of such tribes), regarding the

24 availability, application for, and use of housing

25 assistance under this title;
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1 ‘‘(C) otherwise facilitates the use of such

2 assistance by the tribes and their members; and

3 ‘‘(D) assists the tribes and their members

4 in obtaining loans from the revolving fund es5 tablished under paragraph (1)(D).

6 ‘‘(d) TRIBAL CONTRIBUTIONS TO DEMONSTRATION

7 PROGRAM.—Each tribe selected under subsection (e) for

8 participation in the demonstration program under this

9 section shall enter into an agreement with the technical

10 assistance provider to provide in-kind or financial assist11 ance, in addition to amounts provided under this section,

12 for activities under the demonstration program, in an

13 amount determined by the tribe and the technical assist14 ance provider. The assistance provided pursuant to such

15 agreement may include assistance in the form of office

16 space, equipment, transportation, salary enhancement,

17 and fringe benefits, and other forms of assistance.

18 ‘‘(e) SELECTION OF TRIBES AND AREAS.—

19 ‘‘(1) ELIGIBILITY.—The Secretary shall provide

20 for the technical assistance providers receiving

21 grants under this section to select for participation

22 in the demonstration under this section not more

23 than a total of 15 tribes—

24 ‘‘(A) that are located in counties or com25 munities—
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1 ‘‘(i) that are eligible for designation

2 as targeted underserved areas under sec3 tion 509(f); or

4 ‘‘(ii) that include tribal allotted or In5 dian trust land; and

6 ‘‘(B) that—

7 ‘‘(i) have agreed to participate in the

8 demonstration under this section by des9 ignating individuals for training as local

10 project coordinators under subsection (c);

11 or

12 ‘‘(ii) are located in a county or com13 munity within which is located a Native

14 American or Alaskan Native housing orga15 nization that has so agreed to participate

16 in the demonstration under this section.

17 ‘‘(2) CRITERIA FOR SELECTION.—Each tech18 nical assistance provider selecting tribes pursuant to

19 paragraph (1) shall make such selections according

20 to criteria that include—

21 ‘‘(A) the extent of substandard housing on

22 the reservation of the tribe;

23 ‘‘(B) the extent of the waiting list for

24 housing assistance under Federal housing pro-
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1 grams in the community or community under

2 paragraph (1)(A);

3 ‘‘(C) the extent of interest in and willing4 ness to participate in the demonstration pro5 gram under this section for a 3-year period;

6 and

7 ‘‘(D) the extent of willingness to provide

8 in-kind or financial assistance in addition to

9 amounts provided under this section for activi10 ties under the demonstration program.

11 ‘‘(3) TREATMENT AS TARGETED UNDERSERVED

12 AREAS.—Notwithstanding the designation of coun13 ties and communities as targeted underserved areas

14 under section 509(f)(1) and the provisions of section

15 520, any selected area under this section shall be

16 considered a targeted underserved area for fiscal

17 years 1995, 1996, and 1997, for purposes of eligi18 bility for assistance with amounts reserved under

19 section 509(f)(4)(A).

20 ‘‘(f) SELECTION OF TECHNICAL ASSISTANCE PRO21 VIDERS.—

22 ‘‘(1) ELIGIBILITY.—The Secretary may make a

23 grant under this section only to a nonprofit organi24 zation having experience in or capable of providing

25 training and technical assistance regarding the use
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1 of housing assistance under this title and in admin2 istering revolving loan funds for costs relating to

3 housing assistance programs under this title.

4 ‘‘(2) APPLICATION.—The Secretary shall pro5 vide for nonprofit organizations meeting the require6 ments under paragraph (1) to submit applications

7 for a grant under this section during a period of not

8 more than 45 days that begins upon publication of

9 the notice of funding availability under subsection

10 (i).

11 ‘‘(3) SELECTION.—Not more than 30 days

12 after expiration of such period, the Secretary shall

13 select, to receive grants under this section, 1 or

14 more nonprofit organizations submitting applications

15 that are—

16 ‘‘(A) capable of carrying out the duties of

17 technical assistance providers under this sec18 tion;

19 ‘‘(B) knowledgeable and experienced re20 garding housing needs and issues of Native

21 Americans and Alaskan Natives and housing

22 assistance programs under this title; and

23 ‘‘(C) agree to comply with the provisions of

24 this section.

25 ‘‘(g) REPORTS.—
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1 ‘‘(1) LOCAL PROJECT COORDINATORS.—Each

2 local project coordinator trained or assisted by a

3 technical assistance provider with amounts from a

4 grant under this section shall submit a report to the

5 technical assistance provider for each of fiscal years

6 1995 through 1997, regarding the activities of the

7 coordinator. The report shall be submitted not later

8 than 30 days after the conclusion of the fiscal year

9 for which the report is made.

10 ‘‘(2) TECHNICAL ASSISTANCE PROVIDERS.—

11 Each technical assistance provider receiving a grant

12 under this section shall submit a report to the Sec13 retary for each of fiscal years 1995 through 1997,

14 summarizing the information submitted under para15 graph (1) for the fiscal year and describing the ac16 tivities of the technical assistance provider under the

17 demonstration under this section during the fiscal

18 year. The report shall be submitted not later than

19 60 days after the conclusion of the fiscal year for

20 which the report is made.

21 ‘‘(3) SECRETARY.—The Secretary shall submit

22 a report to the Congress for each of fiscal years

23 1995 through 1997 describing the demonstration

24 under this section and the findings of the Secretary

25 as a result of the demonstration. The report shall be
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1 submitted not later than 90 days after the conclu2 sion of the fiscal year for which the report is made.

3 ‘‘(h) DEFINITIONS.—For purposes of this section:

4 ‘‘(1) ALASKAN NATIVE VILLAGE.—The term

5 ‘Alaskan Native Village’ has the same meaning given

6 the term ‘Native village’ in section 3 of the Alaska

7 Native Claims Settlement Act.

8 ‘‘(2) NATIVE AMERICAN OR ALASKAN NATIVE

9 HOUSING ORGANIZATION.—The term ‘Native Amer10 ican or Alaskan Native housing organization’ means

11 a nonprofit organization that primarily serves a tribe

12 or tribes, and includes Indian housing authorities

13 and other housing entities of a tribe.

14 ‘‘(3) NONPROFIT ORGANIZATION.—The term

15 ‘nonprofit organization’ means any private, nonprofit

16 organization that—

17 ‘‘(A) is organized or chartered under State,

18 tribal, or local laws;

19 ‘‘(B) has no part of its net earning inuring

20 to the benefit of any member, founder, contrib21 utor, or individual;

22 ‘‘(C) complies with standards of financial

23 accountability acceptable to the Secretary; and

24 ‘‘(D) through its articles of incorporation

25 or through resolution of the governing body of
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1 a tribe, has among its purposes significant ac2 tivities related to the provision of decent hous3 ing that is affordable to low- and moderate-in4 come families.

5 ‘‘(4) SELECTED AREA.—The term ‘selected

6 area’ means, with respect to any tribe selected under

7 subsection (e), the county or community meeting the

8 requirements of subsection (e)(1) in which the tribe

9 selected is located.

10 ‘‘(5) TECHNICAL ASSISTANCE PROVIDER.—The

11 term ‘technical assistance provider’ means a non12 profit organization (including a tribe and an Indian

13 housing authority) that is selected under subsection

14 (f) to receive a grant under this section.

15 ‘‘(6) TRIBE.—The term ‘tribe’ means any In16 dian tribe, band, group, or nation, including Alaska

17 Indians, Aleuts, and Eskimos, and any Alaskan Na18 tive Village, of the United States, that is considered

19 an eligible recipient under the Indian Self-Deter20 mination and Education Assistance Act or was con21 sidered an eligible recipient under chapter 67 of title

22 31, United States Code, prior to the repeal of such

23 chapter.

24 ‘‘(i) NOTICE OF FUNDING AVAILABILITY.—
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1 ‘‘(1) PUBLICATION.—The Secretary shall cause

2 to be published in the Federal Register notice of the

3 availability of any amounts made available for

4 grants under this section. Such notice shall be pub5 lished not later than the expiration of the 90-day pe6 riod beginning on the date that amounts are appro7 priated to carry out this section.

8 ‘‘(2) CONTENTS.—The notice referred to in

9 paragraph (1) shall—

10 ‘‘(A) describe the requirements for eligi11 bility to receive a grant, the purposes of the

12 grant, and the permissible uses of grant

13 amounts;

14 ‘‘(B) contain an address to which requests

15 for additional information regarding the dem16 onstration under this section may be made; and

17 ‘‘(C) state the deadline established by the

18 Secretary pursuant to subsection (f)(2) for the

19 submission of applications for a grant.’’.

20 SEC. 516. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

21 Title V of the Housing Act of 1949 (42 U.S.C. 1471

22 et seq.) is amended by inserting after section 538 (as

23 added by the preceding provisions of this title) the follow24 ing new section:
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1 ‘‘SEC. 539. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

2 ‘‘(a) IN GENERAL.—The Secretary is authorized to

3 provide assistance to develop the capacity and ability of

4 community development corporations, community housing

5 development organizations, and other nonprofit organiza6 tions to undertake community development and affordable

7 housing projects and programs in rural areas.

8 ‘‘(b) FORM OF ASSISTANCE.—Assistance under this

9 section may be used for—

10 ‘‘(1) training, education, support, and advice to

11 enhance the technical and administrative capabilities

12 of community development corporations, local com13 munity action agencies receiving assistance under

14 the Community Services Block Grant Act, commu15 nity housing development organizations, and non16 profit organizations in rural areas;

17 ‘‘(2) loans, grants, or predevelopment assistance

18 to community development corporations, community

19 housing development organizations, and nonprofit

20 organizations to carry out community development

21 and affordable housing activities that benefit low-in22 come families in rural areas; and

23 ‘‘(3) such other activities for rural areas as may

24 be determined by the Secretary.

25 ‘‘(c) MATCHING REQUIREMENT.—Assistance pro26 vided under this section shall be matched from private
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1 sources in an amount equal to 3 times the amount made

2 available under this section.

3 ‘‘(d) IMPLEMENTATION.—The Secretary shall by no4 tice establish such requirements as may be necessary to

5 carry out the provisions of this section. The notice shall

6 take effect upon issuance.’’.

7 SEC. 517. LOAN GUARANTEES FOR MULTIFAMILY RENTAL

8 HOUSING IN RURAL AREAS.

9 Title V of the Housing Act of 1949 (42 U.S.C. 1471

10 et seq.) is amended by inserting after section 539 (as

11 added by the preceding provision of this title) the following

12 new section:

13 ‘‘SEC. 540. LOAN GUARANTEES FOR MULTIFAMILY RENTAL

14 HOUSING IN RURAL AREAS.

15 ‘‘(a) AUTHORITY.—The Secretary may make commit16 ments to guarantee eligible loans for the development costs

17 of eligible housing and related facilities, and may guaran18 tee such eligible loans, in accordance with this section.

19 ‘‘(b) EXTENT OF GUARANTEE.—A guarantee made

20 under this section shall guarantee repayment of an

21 amount not exceeding the total of the amount of the un22 paid principal and interest of the loan for which the guar23 antee is made. The liability of the United States under

24 any guarantee under this section shall decrease or increase
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1 pro rata with any decrease or increase of the amount of

2 the unpaid portion of the obligation.

3 ‘‘(c) ELIGIBLE BORROWERS.—A loan guaranteed

4 under this section may be made to a nonprofit organiza5 tion, an agency or body of any State government or politi6 cal subdivision thereof, or a private entity.

7 ‘‘(d) ELIGIBLE HOUSING.—A loan may be guaran8 teed under this section only if the loan is used for the

9 development costs of housing and related facilities (as

10 such terms are defined in section 515(e)) that—

11 ‘‘(1) consists of 5 or more adequate dwellings;

12 ‘‘(2) is available for occupancy only by low or

13 moderate income families or persons, whose incomes

14 at the time of initial occupancy do not exceed 115

15 percent of the median income of the area, as deter16 mined by the Secretary;

17 ‘‘(3) will remain available as provided in para18 graph (2), according to such binding commitments

19 as the Secretary may require, for the period of the

20 original term of the loan guaranteed, unless the

21 housing is acquired by foreclosure (or instrument in

22 lieu of foreclosure) or the Secretary waives the appli23 cability of such requirement for the loan only after

24 determining, based on objective information, that—
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1 ‘‘(A) there is no longer a need for low- and

2 moderate-income housing in the market area in

3 which the housing is located;

4 ‘‘(B) housing opportunities for low-income

5 households and minorities will not be reduced

6 as a result of the waiver; and

7 ‘‘(C) additional Federal assistance will not

8 be necessary as a result of the waiver; and

9 ‘‘(4) is located in a rural area.

10 ‘‘(e) ELIGIBLE LENDERS.—

11 ‘‘(1) REQUIREMENT.—A loan may be guaran12 teed under this subsection only if the loan is made

13 by a lender that the Secretary determines—

14 ‘‘(A) meets the qualifications, and has been

15 approved by the Secretary of Housing and

16 Urban Development, to make loans for multi17 family housing that are to be insured under the

18 National Housing Act;

19 ‘‘(B) meets the qualifications, and has

20 been approved by the Federal National Mort21 gage Association and the Federal Home Loan

22 Mortgage Corporation, to make loans for multi23 family housing that are to be sold to such cor24 porations; or
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1 ‘‘(C) meets any qualifications that the Sec2 retary may, by regulation, establish for partici3 pation of lenders in the loan guarantee program

4 under this section.

5 ‘‘(2) ELIGIBILITY LIST AND ANNUAL AUDIT.—

6 The Secretary shall establish a list of eligible lenders

7 and shall annually conduct an audit of each lender

8 included in the list for purposes of determining

9 whether such lender continues to be an eligible

10 lender.

11 ‘‘(f) LOAN TERMS.—Each loan guaranteed pursuant

12 to this subsection shall—

13 ‘‘(1) provide for complete amortization by peri14 odic payments to be made for a term not to exceed

15 40 years;

16 ‘‘(2) involve a rate of interest agreed upon by

17 the borrower and the lender that does not exceed the

18 maximum allowable rate established by the Secretary

19 for purposes of this section and is fixed over the

20 term of the loan;

21 ‘‘(3) involve a principal obligation (including

22 initial service charges, appraisal, inspection, and

23 other fees as the Secretary may approve) not to

24 exceed—
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1 ‘‘(A) in the case of a borrower that is a

2 nonprofit organization or an agency or body of

3 any State or local government, 97 percent of

4 the development costs of the housing and relat5 ed facilities or the value of the housing and fa6 cilities, whichever is less;

7 ‘‘(B) in the case of a borrower that is a

8 for-profit entity not referred to in subparagraph

9 (A), 90 percent of the development costs of the

10 housing and related facilities or the value of the

11 housing and facilities, whichever is less; and

12 ‘‘(C) in the case of any borrower, for such

13 part of the property as may be attributable to

14 dwelling use, the applicable maximum per unit

15 dollar amount limitations under section 207(c)

16 of the National Housing Act;

17 ‘‘(4) be secured by a first mortgage on the

18 housing and related facilities for which the loan is

19 made, or otherwise, as the Secretary may determine

20 necessary to ensure repayment of the obligation; and

21 ‘‘(5) for at least 20 percent of the loans made

22 under this section, the Secretary shall provide the

23 borrower with assistance in the form of credits pur24 suant to section 521(a)(1)(B) to the extent nec25 essary to reduce the rate of interest under para-
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1 graph (2) to the applicable Federal rate, as such

2 term is used in section 42(i)(2)(D) of the Internal

3 Revenue Code of 1986.

4 ‘‘(g) GUARANTEE FEE.—At the time of issuance of

5 a loan guaranteed under this section, the Secretary may

6 collect from the lender a fee equal to not more than 1

7 percent of the principal obligation of the loan.

8 ‘‘(h) AUTHORITY FOR LENDERS TO ISSUE CERTIFI9 CATES OF GUARANTEE.—The Secretary may authorize

10 certain eligible lenders to determine whether a loan meets

11 the requirements for guarantee under this section and,

12 subject to the availability of authority to enter into guar13 antees under this section, execute a firm commitment for

14 a guarantee binding upon the Secretary and issue a certifi15 cate of guarantee evidencing a guarantee, without review

16 and approval by the Secretary of the specific loan. The

17 Secretary may establish standards for approving eligible

18 lenders for a delegation of authority under this subsection.

19 ‘‘(i) PAYMENT UNDER GUARANTEE.—

20 ‘‘(1) NOTICE OF DEFAULT.—In the event of de21 fault by the borrower on a loan guaranteed under

22 this section, the holder of the guarantee certificate

23 for the loan shall provide written notice of the de24 fault to the Secretary.
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1 ‘‘(2) FORECLOSURE.—After receiving notice

2 under paragraph (1) and providing written notice of

3 action under this paragraph to the Secretary, the

4 holder of the guarantee certificate for the loan may

5 initiate foreclosure proceedings for the loan in a

6 court of competent jurisdiction, in accordance with

7 regulations issued by the Secretary, to obtain posses8 sion of the security property. After the court issues

9 a final order authorizing foreclosure on the property,

10 the holder of the certificate shall be entitled to pay11 ment by the Secretary under the guarantee (in the

12 amount provided under subsection (b)) upon (A)

13 conveyance to the Secretary of title to the security

14 property, (B) submission to the Secretary of a claim

15 for payment under the guarantee, and (C) assign16 ment to the Secretary of all the claims of the holder

17 of the guarantee against the borrower or others aris18 ing out of the loan transaction or foreclosure pro19 ceedings, except claims released with the consent of

20 the Secretary.

21 ‘‘(3) ASSIGNMENT BY SECRETARY.—After re22 ceiving notice under paragraph (1), the Secretary

23 may accept assignment of the loan if the Secretary

24 determines that the assignment is in the best inter25 ests of the United States. Assignment of a loan
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1 under this paragraph shall include conveyance to the

2 Secretary of title to the security property, assign3 ment to the Secretary of all rights and interests

4 arising under the loan, and assignment to the Sec5 retary of all claims against the borrower or others

6 arising out of the loan transaction. Upon assignment

7 of a loan under this paragraph, the holder of a guar8 antee certificate for the loan shall be entitled to pay9 ment by the Secretary under the guarantee (in the

10 amount provided under subsection (b)).

11 ‘‘(4) REQUIREMENTS.—Before any payment

12 under a guarantee is made under paragraph (2) or

13 (3), the holder of the guarantee certificate shall ex14 haust all reasonable possibilities of collection on the

15 loan guaranteed. Upon payment, in whole or in part,

16 to the holder, the note or judgment evidencing the

17 debt shall be assigned to the United States and the

18 holder shall have no further claim against the bor19 rower or the United States. The Secretary shall then

20 take such action to collect as the Secretary deter21 mines appropriate.

22 ‘‘(j) VIOLATION OF GUARANTEE REQUIREMENTS BY

23 LENDERS ISSUING GUARANTEES.—

24 ‘‘(1) INDEMNIFICATION.—If the Secretary de25 termines that a loan guaranteed by an eligible lender
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1 pursuant to delegation of authority under subsection

2 (h) was not originated in accordance with the re3 quirements under this section and the Secretary

4 pays a claim under the guarantee for the loan, the

5 Secretary may require the eligible lender authorized

6 under subsection (h) to issue the guarantee certifi7 cate for the loan—

8 ‘‘(A) to indemnify the Secretary for the

9 loss, if the payment under the guarantee was

10 made within a reasonable period specified by

11 the Secretary; or

12 ‘‘(B) to indemnify the Secretary for the

13 loss regardless of when payment under the

14 guarantee was made, if the Secretary deter15 mines that fraud or misrepresentation was in16 volved in connection with the origination of the

17 loan.

18 ‘‘(2) TERMINATION OF AUTHORITY TO ISSUE

19 GUARANTEES.—The Secretary may cancel a delega20 tion of authority under subsection (h) to an eligible

21 lender if the Secretary determines that the lender

22 has violated the requirements and procedures for

23 guaranteed loans under this section or for other

24 good cause. Any such cancellation shall be made by

25 giving notice to the eligible lender and shall take ef-
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1 fect upon receipt of the notice by the mortgagee or

2 at a later date, as the Secretary may provide. A de3 cision by the Secretary to cancel a delegation shall

4 be final and conclusive and shall not be subject to

5 judicial review.

6 ‘‘(k) REFINANCING.—Any loan guaranteed under this

7 section may be refinanced and extended in accordance

8 with terms and conditions that the Secretary shall pre9 scribe, but in no event for an additional amount or term

10 that exceeds the limitations under subsection (f).

11 ‘‘(l) NONASSUMPTION.—The borrower under a loan

12 that is guaranteed under this section and under which any

13 portion of the principal obligation or interest remains out14 standing may not be relieved of liability with respect to

15 the loan, notwithstanding the transfer of property for

16 which the loan was made.

17 ‘‘(m) GEOGRAPHICAL TARGETING.—

18 ‘‘(1) STUDY.—The Secretary shall provide for

19 an independent entity to conduct a study to deter20 mine the extent to which borrowers in the United

21 States will utilize loan guarantees under this section,

22 the rural areas in the United States in which bor23 rowers can best utilize and most need loans guaran24 teed under this section, and the rural areas in the

25 United States in which housing of the type eligible
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1 for a loan guarantee under this section is most need2 ed by low- and moderate-income families. The Sec3 retary shall require the independent entity conduct4 ing the study to submit a report to the Secretary

5 and to the Congress describing the results of the

6 study not later than the expiration of the 90-day pe7 riod beginning on the date of the enactment of the

8 Housing and Community Development Act of 1994.

9 ‘‘(2) TARGETING.—In providing loan guaran10 tees under this section, the Secretary shall establish

11 standards to target and give priority to rural areas

12 in which borrowers can best utilize and most need

13 loans guaranteed under this section, as determined

14 by the Secretary based on the results of the study

15 under paragraph (1) and any other information the

16 Secretary considers appropriate.

17 ‘‘(n) INAPPLICABILITY OF CREDIT-ELSEWHERE

18 TEST.—Section 501(c) shall not apply to guarantees, or

19 loans guaranteed, under this section.

20 ‘‘(o) TENANT PROTECTIONS.—The Secretary shall

21 establish standards for the treatment of tenants of hous22 ing developed using amounts from a loan guaranteed

23 under this section, which shall incorporate, to the extent

24 applicable, existing standards applicable to tenants of

25 housing developed with loans made under section 515.
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1 Such standards shall include standards for fair housing

2 and equal opportunity, lease and grievance procedures,

3 and tenant appeals of adverse actions.

4 ‘‘(p) HOUSING STANDARDS.—The standards estab5 lished under section 515(m) for housing and related facili6 ties assisted under section 515 shall apply to housing and

7 related facilities the development costs of which are fi8 nanced in whole or in part with a loan guaranteed under

9 this section.

10 ‘‘(q) LIMITATION ON COMMITMENTS TO GUARANTEE

11 LOANS.—

12 ‘‘(1) REQUIREMENT OF APPROPRIATIONS.—The

13 authority of the Secretary to enter into commit14 ments to guarantee loans under this section, and to

15 guarantee loans, shall be effective for any fiscal year

16 only to the extent or in such amounts as are or have

17 been provided in appropriations Acts for such fiscal

18 year.

19 ‘‘(2) LIMITATION ON PROJECTS AND OUT20 STANDING AGGREGATE PRINCIPAL AMOUNT.—Sub21 ject to the limitation in paragraph (1), the Secretary

22 may enter into commitments to guarantee loans

23 under this section for not more than 25 housing

24 projects in each of fiscal years 1995 and 1996, hav-
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1 ing an aggregate outstanding principal amount not

2 exceeding $50,000,000 in each of such fiscal years.

3 ‘‘(r) REPORT.—

4 ‘‘(1) IN GENERAL.—The Secretary shall submit

5 a report to the Congress, not later than the expira6 tion of the 2-year period beginning on the date of

7 the enactment of the Housing and Community De8 velopment Act of 1994, describing the program

9 under this section for guaranteeing loans.

10 ‘‘(2) CONTENTS.—The report shall—

11 ‘‘(A) describe the types of borrowers pro12 viding housing with loans guaranteed under this

13 section, the areas served by the housing pro14 vided and the geographical distribution of the

15 housing, the levels of income of the residents of

16 the housing, the number of dwelling units pro17 vided, the extent to which borrowers under such

18 loans have obtained other financial assistance

19 for development costs of housing provided with

20 the loans, and the extent to which borrowers

21 under such loans have used low-income housing

22 tax credits provided under section 42 of the In23 ternal Revenue Code of 1986 in connection with

24 the housing provided with the loans;
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1 ‘‘(B) analyze the financial viability of the

2 housing provided with loans guaranteed under

3 this section and the need for project-based rent4 al assistance for such housing;

5 ‘‘(C) include any recommendations of the

6 Secretary for expanding or improving the pro7 gram under this section for guaranteeing loans;

8 and

9 ‘‘(D) include any other information regard10 ing the program for guaranteeing loans under

11 this section that the Secretary considers appro12 priate.

13 ‘‘(s) DEFINITIONS.—For purposes of this subsection,

14 the following definitions shall apply:

15 ‘‘(1) The term ‘development cost’ has the mean16 ing given the term in section 515(e).

17 ‘‘(2) The term ‘eligible lender’ means a lender

18 determined by the Secretary to meet the require19 ments of subparagraph (A), (B), (C), or (D) of sub20 section (e)(1).

21 ‘‘(3) The terms ‘housing’ and ‘related facilities’

22 have the meanings given such terms in section

23 515(e).

24 ‘‘(t) AUTHORIZATION OF APPROPRIATIONS.—There

25 are authorized to be appropriated for fiscal years 1995
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1 and 1996 such sums as may be necessary for costs (as

2 such term is defined in section 502 of the Congressional

3 Budget Act of 1974) of loan guarantees made under this

4 section.

5 ‘‘(u) TERMINATION DATE.—A loan may not be guar6 anteed under this section after September 30, 1996.’’.

7 SEC. 518. RURAL HOUSING LOAN DELEGATED PROCESSING

8 DEMONSTRATION.

9 (a) AUTHORITY.—Not later than the expiration of

10 the 180-day period beginning on the date of enactment

11 of this Act, the Secretary of Agriculture shall implement

12 a system for making, processing, and servicing loans

13 under section 502 of the Housing Act of 1949 that dele14 gates such functions to nonprofit organizations approved

15 by the Secretary of Agriculture. Under the system, the

16 Secretary shall retain the authority to approve loan

17 amounts and interest credit agreements and to execute

18 binding loan commitments and credit agreements.

19 (b) USE IN TARGETED UNDERSERVED AREAS.—The

20 Secretary of Agriculture shall carry out the delegated

21 processing system under subsection (a) only with respect

22 to loans for housing located in, and amounts reserved for

23 use in, areas for which a designation under section 509(f)

24 is in effect.
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1 (c) REPORT.—The Secretary of Agriculture shall sub2 mit an interim report to the Congress not later than 12

3 months after the date of the initial implementation of the

4 delegated processing system under this section describing

5 the activities taken under the system and evaluating the

6 effectiveness of the system.

7 (d) TERMINATION OF AUTHORITY.—The Secretary of

8 Agriculture may not carry out the delegated processing

9 system under this section after September 30, 1996.

10 TITLE VI—COMMUNITY

11 DEVELOPMENT

12 Subtitle A—Community

13 Development Block Grant Program

14 SEC. 601. AUTHORIZATION OF APPROPRIATIONS AND

15 GUARANTEE AUTHORITY.

16 (a) COMMUNITY DEVELOPMENT BLOCK GRANTS.—

17 The second sentence of section 103 of the Housing and

18 Community Development Act of 1974 (42 U.S.C. 5303)

19 is amended to read as follows: ‘‘For purposes of assistance

20 under section 106, there are authorized to be appropriated

21 $4,400,000,000 for fiscal year 1995 and $4,500,000,000

22 for fiscal year 1996.’’.

23 (b) LIMITATION ON LOAN GUARANTEES.—The fifth

24 sentence of section 108(a) of the Housing and Community

25 Development Act of 1974 (42 U.S.C. 5308(a)) is amended
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1 to read as follows: ‘‘Notwithstanding any other provision

2 of law and subject only to the absence of qualified appli3 cants or proposed activities and to the authority provided

4 in this section, to the extent approved or provided in ap5 propriation Acts, the Secretary shall enter into commit6 ments to guarantee notes and obligations under this sec7 tion with an aggregate principal amount of

8 $2,054,000,000 for fiscal year 1995 and $2,054,000,000

9 for fiscal year 1996.’’.

10 (c) SPECIAL PURPOSE GRANTS.—Section 107 of the

11 Housing and Community Development Act of 1974 (42

12 U.S.C. 5307) is amended—

13 (1) by striking ‘‘SEC. 107’’ and all that follows

14 through the end of paragraph (1) of subsection (a)

15 and inserting the following:

16 ‘‘SEC. 107. (a) AUTHORIZATION OF APPROPRIA17 TIONS.—

18 ‘‘(1) IN GENERAL.—There are authorized to be

19 appropriated for each of fiscal years 1995 and 1996,

20 $60,000,000, for grants under subsection (b). Of

21 such amounts—

22 ‘‘(A) $7,000,000 shall be available in each

23 such year for grants under subsection (b)(1);
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1 ‘‘(B) such sums as may be necessary shall

2 be available in each such year for grants under

3 subsection (b)(2);

4 ‘‘(C) $7,000,000 shall be available in each

5 such year for grants under subsection (b)(3);

6 ‘‘(D) $28,000,000 shall be available in

7 each such year for grants under subsection

8 (b)(4);

9 ‘‘(E) $6,000,000 shall be available in each

10 such year for grants under subsection (b)(5);

11 ‘‘(F) $2,000,000 shall be available in each

12 such year for grants under subsection (b)(6);

13 ‘‘(G) $8,000,000 shall be available in each

14 such year for grants under subsection (b)(7);

15 ‘‘(H) such sums as may be necessary shall

16 be available in each such year for grants under

17 subsection (b)(8);

18 ‘‘(I) $3,000,000 shall be available in each

19 such year for grants under subsection (c); and

20 ‘‘(J) such sums as may be necessary shall

21 be available in fiscal year 1995 for a grant to

22 the City of Bridgeport, Connecticut, subject to

23 binding commitments made by the City of

24 Bridgeport and the State of Connecticut that

25 the amount made available pursuant to this
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1 subparagraph will be supplemented with an ad2 ditional amount equal to such amount under

3 this subparagraph, which shall be provided by

4 the city and the State in equal amounts.’’; and

5 (2) in subsection (b)—

6 (A) in paragraph (6), by striking ‘‘and’’ at

7 the end;

8 (B) in paragraph (7), by striking the pe9 riod at the end and inserting a semicolon; and

10 (C) by adding at the end the following new

11 paragraph:

12 ‘‘(8) to 10 metropolitan cities and urban coun13 ties that receive grants under section 106, have high

14 rates of fire incidents, a substantial number of low15 income residents, and a high rate of death and seri16 ous injury caused by fire among youth, elderly, and

17 minorities, for obtaining a nitrogen enhanced, bio18 degradable, noncorrosive fire suppression liquid and

19 for training firefighters to use such liquid; and in

20 any year in which grants are made under this para21 graph, the Secretary shall include in the report re22 quired under section 113 a description of the effec23 tiveness of grants made under this paragraph in pre24 venting loss of life and property; and’’.
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1 SEC. 602. DEFINITION OF METROPOLITAN CITY.

2 Section 102(a)(4) of the Housing and Community

3 Development Act of 1974 (42 U.S.C. 5302(a)(4)) is

4 amended—

5 (1) in the second sentence, by striking ‘‘2

6 years’’ and inserting ‘‘1 year after September 30,

7 1989,’’; and

8 (2) by striking the fifth sentence and inserting

9 the following new sentence: ‘‘Notwithstanding that

10 the population of a unit of general local government

11 was included, after September 30, 1989, with the

12 population of an urban county for purposes of quali13 fying for assistance under section 106, the unit of

14 general local government may apply for assistance

15 under section 106 as a metropolitan city if the unit

16 meets the requirements of the second sentence of

17 this paragraph.’’.

18 SEC. 603. MANAGEMENT INFORMATION SYSTEMS.

19 Section 103 of the Housing and Community Develop20 ment Act of 1974 (42 U.S.C 5303) is amended—

21 (1) by inserting ‘‘(a) IN GENERAL.—’’ after

22 ‘‘103.’’; and

23 (2) by adding at the end the following new sub24 section:

25 ‘‘(b) RESERVATION FOR MANAGEMENT INFORMA26 TION SYSTEMS.—Of the amount approved in an appro-
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1 priation Act for each of fiscal years 1995 and 1996 under

2 this section, the Secretary may reserve not more than 0.5

3 percent for improving management information systems

4 used by the Secretary and recipients under this title.’’.

5 SEC. 604. ELIGIBLE ACTIVITIES.

6 (a) RECONSTRUCTION ACTIVITIES AND REMOVAL OF

7 TOXIC MATERIALS.—Section 105(a) of the Housing and

8 Community Development Act of 1974 (42 U.S.C.

9 5305(a)) is amended—

10 (1) in paragraph (4), by striking ‘‘, demolition,

11 removal,’’ and inserting ‘‘(including the removal of

12 toxic materials and other contaminants from prop13 erties), demolition, removal, reconstruction,’’;

14 (2) in paragraph (8)—

15 (A) by striking ‘‘and’’ after ‘‘under this

16 paragraph,’’;

17 (B) by striking ‘‘fiscal year 1994’’ and in18 serting ‘‘fiscal years 1994, 1995, and 1996’’;

19 and

20 (C) by inserting before the semicolon at

21 the end the following: ‘‘, and except that of any

22 amount of assistance under this title (including

23 program income) to the Cities of Vallejo and

24 Benecia and to Napa County, in California,

25 such cities and county may use not more than
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1 20 percent in fiscal year 1995 and 25 percent

2 in fiscal year 1996 for activities under this

3 paragraph’’;

4 (3) in paragraph (13), by striking ‘‘and’’ at the

5 end;

6 (4) by striking paragraph (19);

7 (5) in paragraph (24), by striking ‘‘and’’ at the

8 end;

9 (6) in paragraph (25), by striking the period at

10 the end and inserting ‘‘; and’’;

11 (7) by redesignating paragraphs (20) through

12 (25) as paragraphs (19) through (24), respectively;

13 and

14 (8) by redesignating paragraph (21) (as added

15 by section 1012(f)(3) of the Housing and Commu16 nity Development Act of 1992 (Public Law 102–

17 550; 106 Stat. 3905) as paragraph (25).

18 (b) HOMEOWNERSHIP ACTIVITIES.—Section

19 907(b)(2) of the Cranston-Gonzalez National Affordable

20 Housing Act (42 U.S.C. 5305 note) is hereby repealed.

21 SEC. 605. REALLOCATIONS.

22 Section 106(c) of the Housing and Community Devel23 opment Act of 1974 (42 U.S.C. 5304(c)) is amended by

24 striking paragraph (4).
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1 SEC. 606. PROHIBITION OF USE OF CDBG ASSISTANCE FOR

2 EMPLOYMENT RELOCATION ACTIVITIES.

3 Section 105 of the Housing and Community Develop4 ment Act of 1974 (42 U.S.C. 5305) is amended by adding

5 at the end the following new subsection:

6 ‘‘(h) PROHIBITION OF USE OF ASSISTANCE FOR EM7 PLOYMENT RELOCATION ACTIVITIES.—Notwithstanding

8 any other provision of law, no amounts from a grant under

9 section 106 made in fiscal year 1994 or any succeeding

10 fiscal year may be used for any activity (including any in11 frastructure improvement) that is intended, or likely, to

12 facilitate the relocation or expansion of any industrial or

13 commercial plant, facility, or operation, from one area to

14 another area, if the relocation or expansion will result in

15 a loss of employment in the area from which the relocation

16 or expansion occurs.’’.

17 SEC. 607. LIMITATION ON EXTENT OF USE OF LOAN GUAR18 ANTEES FOR HOUSING PURPOSES.

19 Section 108 of the Housing and Community Develop20 ment Act of 1974 (42 U.S.C. 5308) is amended by insert21 ing after subsection (h) the following new subsection:

22 ‘‘(i) LIMITATION ON USE.—Of any amounts obtained

23 from notes or other obligations issued by an eligible public

24 entity or public agency designated by an eligible public en25 tity and guaranteed under this section pursuant to an ap26 plication for a guarantee submitted after the date of the
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1 enactment of the Housing and Community Development

2 Act of 1992, the aggregate amount used for the purposes

3 described in clauses (2) and (4) of subsection (a), and for

4 other housing activities under the purposes described in

5 clauses (1) and (3) of subsection (a), may not exceed 10

6 percent of such amounts obtained by the eligible public

7 entity or agency.’’.

8 SEC. 608. ECONOMIC DEVELOPMENT GRANTS.

9 (a) ELIGIBLE ACTIVITIES.—Section 108(q)(2) of the

10 Housing and Community Development Act of 1974 (42

11 U.S.C. 5308(q)(2)) is amended by inserting before the pe12 riod at the end the following: ‘‘and for the construction,

13 rehabilitation, or financing of retail and service facilities,

14 mixed-use projects, projects that link economic develop15 ment and housing, community centers, farmers’ markets,

16 and community-based business expansions’’.

17 (b) ELIGIBLE PUBLIC ENTITIES.—Section 108(q)(1)

18 of the Housing and Community Development Act of 1974

19 is amended by inserting after ‘‘eligible public entities’’ the

20 following: ‘‘, and to eligible public entities in conjunction

21 with community- or neighborhood-based organizations,’’.

22 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

23 108(q) of the Housing and Community Development Act

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

25 new paragraph:
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1 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—

2 There are authorized to be appropriated for grants

3 under this subsection $100,000,000 for fiscal year

4 1995 and $100,000,000 for fiscal year 1996. Using

5 any amounts appropriated for grants under this sub6 section for fiscal years 1995 and 1996, the Secretary

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

8 each such fiscal year to the Earth Conservancy in

9 Luzerne County, Pennsylvania, which shall be used

10 for carrying out a demonstration of using innovative

11 environmental technologies to reclaim land used for

12 community and economic development purposes that

13 has been damaged by anthracite coal mining activi14 ties.’’.

15 SEC. 609. USE OF UDAG RECAPTURES.

16 Section 119(o) of the Housing and Community De17 velopment Act of 1974 (42 U.S.C. 5318(o)) is amended

18 by striking ‘‘October 1, 1993’’ and inserting in lieu thereof

19 ‘‘April 11, 1994’’.

20 SEC. 610. EXTENSION OF CERTAIN CDBG ASSISTANCE.

21 (a) EXTENSION.—Section 916(f) of the Cranston22 Gonzalez National Affordable Housing Act (42 U.S.C.

23 5306 note) is amended by striking ‘‘1991’’ and all that

24 follows through ‘‘1994’’ and inserting ‘‘beginning before

25 the commencement of fiscal year 1998’’.
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1 (b) ELIGIBILITY.—Section 916(e)(4) of the Cran2 ston-Gonzalez National Affordable Housing Act (42

3 U.S.C. 5306 note) is amended by inserting ‘‘other than

4 Riverside County, California,’’ after ‘‘area’’.

5 Subtitle B—Other Community

6 Development Programs

7 SEC. 631. NEIGHBORHOOD REINVESTMENT CORPORATION.

8 The first sentence of section 608(a)(1) of the Neigh9 borhood Reinvestment Corporation Act (42 U.S.C.

10 8107(a)) is amended to read as follows: ‘‘There are au11 thorized to be appropriated to the corporation to carry out

12 this title $35,000,000 for fiscal year 1995 and

13 $35,000,000 for fiscal year 1996.’’.

14 SEC. 632. JOHN HEINZ NEIGHBORHOOD DEVELOPMENT

15 PROGRAM.

16 Section 123(g) of the Housing and Urban-Rural Re17 covery Act of 1983 (42 U.S.C. 5318 note) is amended to

18 read as follows:

19 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

20 are authorized to be appropriated to carry out this section

21 $10,000,000 for fiscal year 1995 and $10,000,000 for fis22 cal year 1996.’’.
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1 SEC. 633. CAPACITY BUILDING FOR COMMUNITY DEVELOP2 MENT AND AFFORDABLE HOUSING.

3 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

4 4 of the HUD Demonstration Act of 1993 (42 U.S.C.

5 9816 note) is amended by striking subsection (e) and in6 serting the following new subsection:

7 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

8 are authorized to be appropriated to carry out this section

9 $60,000,000 for fiscal year 1995 and $60,000,000 for fis10 cal year 1996.’’.

11 (b) DELIVERY OF ASSISTANCE.—Section 4 of the

12 HUD Demonstration Act of 1993 (42 U.S.C. 9816 note)

13 is amended—

14 (1) in subsection (a)—

15 (A) by inserting ‘‘and directly to commu16 nity-based organizations and capacity-building

17 organizations’’ after ‘‘Initiative’’;

18 (B) by inserting ‘‘neighborhood’’ after ‘‘un19 dertake’’; and

20 (C) by striking ‘‘and affordable housing’’

21 and inserting ‘‘, affordable housing, revitaliza22 tion, economic development, youth and family

23 support, and community service’’;

24 (2) in subsection (b)—

25 (A) in paragraph (1), by striking ‘‘and

26 community housing development organizations’’
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1 and inserting ‘‘, community housing develop2 ment organizations, and community-based orga3 nizations (including local community action

4 agencies receiving assistance under the Commu5 nity Services Block Grant Act)’’ before the

6 semicolon at the end;

7 (B) in paragraph (2)—

8 (i) by striking ‘‘and community hous9 ing development organizations’’ and insert10 ing ‘‘, community housing development or11 ganizations, and community-based organi12 zations (including local community action

13 agencies receiving assistance under the

14 Community Services Block Grant Act)’’;

15 (ii) by inserting ‘‘neighborhood’’ after

16 ‘‘carry out’’; and

17 (iii) by striking ‘‘low-income’’ and in18 serting ‘‘low- and moderate-income’’; and

19 (C) in paragraph (3), by inserting ‘‘or the

20 community-based organization’’ after ‘‘Initia21 tive’’;

22 (3) in subsection (c), by inserting ‘‘to the Na23 tional Community Development Initiative’’ after

24 ‘‘provided’’;
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1 (4) by redesignating subsection (d) as sub2 section (e); and

3 (5) by inserting after subsection (c) the follow4 ing new subsection:

5 ‘‘(d) SELECTION CRITERIA.—The Secretary shall se6 lect community-based organizations and capacity-building

7 organizations to receive assistance under this section

8 based upon selection criteria established by the Secretary,

9 which shall include the extent to which the activities pro10 posed to be conducted by the organization with assistance

11 under this section will—

12 ‘‘(1) develop new community-based organiza13 tions in unorganized or underserved areas;

14 ‘‘(2) assist eligible private nonprofit community15 based organizations located in low- or moderate-in16 come neighborhoods or areas having a concentration

17 of low- and moderate-income persons;

18 ‘‘(3) be targeted to areas in economic distress;

19 ‘‘(4) be conducted by an organization that pro20 vides for neighborhood resident participation in the

21 activities of the organization (including participation

22 of low- and moderate-income residents) and the ex23 tent to which the households and businesses in the

24 area served are members of the organization;
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1 ‘‘(5) benefit low- and moderate-income persons

2 residing in the area served by the applicant;

3 ‘‘(6) encourage linking and coordinating hous4 ing, economic, and human development;

5 ‘‘(7) be coordinated with local law enforcement

6 agencies, local public housing agencies, and local

7 public housing resident management corporations

8 and resident councils, with respect to anti crime ini9 tiatives; and

10 ‘‘(8) leverage contributions to support a wide

11 variety of community development initiatives from

12 the private sector, foundations, colleges and univer13 sities, civic groups, social, cultural, religious, and

14 other institutions, and the national service program,

15 in a manner that achieves the greatest long-term

16 private sector support.’’.

17 (c) GENO BARONI RECOGNITION AWARDS FOR

18 NEIGHBORHOOD SELF-HELP ORGANIZATIONS.—Section

19 4 of the HUD Demonstration Act of 1993 is amended by

20 inserting after subsection (e) (as so redesignated by sub21 section (b) of this section) the following new subsection:

22 ‘‘(f) GENO BARONI RECOGNITION AWARDS FOR

23 NEIGHBORHOOD SELF-HELP ORGANIZATIONS.—

24 ‘‘(1) AUTHORITY.—The Secretary shall estab25 lish an award to be known as the Geno Baroni Rec-
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1 ognition Award for Neighborhood Self-Help Organi2 zations, and shall select community-based organiza3 tions and capacity-building organizations for such

4 award annually pursuant to the criteria under para5 graph (3).

6 ‘‘(2) PURPOSE.—The purpose of the awards

7 under this subsection shall be—

8 ‘‘(A) to focus attention on and provide

9 monetary compensation to successful self-help

10 organizations that have established and imple11 mented effective strategies to restore economic

12 vitality to neighborhoods in the United States;

13 and

14 ‘‘(B) to facilitate training and other forms

15 of capacity-building assistance to improve and

16 expand the ability of community-based organi17 zations to carry out activities referred in sub18 paragraph (A).

19 ‘‘(3) CRITERIA.—The Secretary shall prescribe

20 criteria for the selection of community-based organi21 zations and capacity-building organizations for the

22 award as the Secretary considers appropriate, which

23 shall include the extent to which the activities of an

24 organization meet the criteria under subsection (d)

25 and the extent to which an organization has—
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1 ‘‘(A) promoted, implemented and sup2 ported self-help neighborhood activities that in3 tegrate poorer, inner-city neighborhoods into

4 the greater metropolitan region;

5 ‘‘(B) furthered sustainable community de6 velopment by expanding fair housing opportuni7 ties, furthering economic revitalization, reduc8 ing economic isolation of income groups within

9 communities, expanding housing, education,

10 and employment opportunities for persons of

11 low or moderate income, and providing other

12 amenities in low-income neighborhoods;

13 ‘‘(C) promoted and supported neighbor14 hood leadership and responsibility;

15 ‘‘(D) leveraged private contributions to

16 support a wide variety of community develop17 ment initiatives on a long-term basis; and

18 ‘‘(E) established and enhanced the mana19 gerial, financial, and administrative capacity of

20 the organization.

21 ‘‘(4) MONETARY AWARD.—In connection with

22 each award made under this subsection to a commu23 nity-based organization or capacity-building organi24 zation, the Secretary shall, to the extent amounts

25 are available pursuant to paragraph (6), provide a
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1 monetary award to the organization in the amount

2 of $50,000.

3 ‘‘(5) USE OF FUNDS FOR ADMINISTRATIVE PUR4 POSES.—The Secretary may use amounts made

5 available to carry out this subsection to defray the

6 costs of the Secretary in connection with making

7 awards under this section, including costs for—

8 ‘‘(A) printing and disseminating informa9 tion;

10 ‘‘(B) holding conferences;

11 ‘‘(C) holding competition for awards, in12 cluding travel and per diem costs; and

13 ‘‘(D) travel costs of award winners to at14 tend follow-up conferences endorsed by the Sec15 retary and to provide peer-to-peer assistance to

16 other appropriate individuals and entities.

17 ‘‘(6) FUNDING.—

18 ‘‘(A) IN GENERAL.—Of any amounts ap19 propriated for fiscal year 1995 to carry out this

20 section 4, 10 percent shall be used to carry out

21 this subsection. Of any amounts appropriated

22 for fiscal year 1996 to carry out this section,

23 such sums as may be necessary shall be used to

24 carry out this subsection. The provisions of sub-
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1 section (c) shall not apply to any amounts used

2 to carry out this subsection.

3 ‘‘(B) SET-ASIDE FOR ADMINISTRATIVE

4 PURPOSES.—Of amounts available for any fiscal

5 year to carry out this subsection pursuant to

6 subparagraph (A), not more than 2 percent

7 may be used for the purposes in paragraph

8 (5).’’.

9 SEC. 634. COLONIAS ASSISTANCE PROGRAM.

10 (a) GRANT AUTHORITY.—The Secretary may make

11 grants in accordance with the provisions of this section

12 to units of general local government, States, nonprofit or13 ganizations, or entities or instrumentalities established

14 under the authority of any of such entities, for use in ad15 dressing the community development and housing needs

16 of colonias.

17 (b) ELIGIBLE ACTIVITIES.—Assistance under this

18 section may be used only to carry out the following activi19 ties:

20 (1) Any activity eligible under section 105 of

21 the Housing and Community Development Act of

22 1974 or section 212(a) of the HOME Investment

23 Partnerships Act.
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1 (2) Refinancing the existing debt of home2 owners to convert existing land transactions and in3 terests into mortgages.

4 (3) Constructing new housing, including self5 help, energy-efficient, and innovative housing design

6 initiatives.

7 (4) Developing new subdivisions for affordable

8 housing.

9 (5) Re-platting and redeveloping existing sub10 divisions.

11 (6) Planning for and constructing infrastruc12 ture necessary for the development of housing, eco13 nomic development, and community facilities and

14 amenities.

15 (7) Such other activities as the Secretary deems

16 appropriate to further the purposes of this section.

17 (c) MODEL PROGRAMS.—

18 (1) IN GENERAL.—Of amounts allocated under

19 subsection (j)(2), the Secretary shall make grants

20 under this subsection to the entities referred to in

21 subsection (a) for the purpose of establishing model

22 programs of assistance for addressing the commu23 nity development, housing, and other needs of the

24 residents of the colonias.

25 (d) SELECTION OF GRANTEES.—
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1 (1) GEOGRAPHIC DISTRIBUTION.—The Sec2 retary shall designate—

3 (A) at least one project in each State to re4 ceive a grant under this subsection; and

5 (B) at least one project within a metropoli6 tan area in any State to receive a grant under

7 this subsection.

8 (2) SELECTION PROCESS.—The Secretary shall

9 select grantees under this subsection on a non10 competitive basis, through negotiation with the

11 grantee.

12 (3) SELECTION CRITERIA.—In selecting

13 projects for grants under this subsection, the Sec14 retary shall consider—

15 (A) the extent of need in the colonia;

16 (B) the likely effectiveness of the proposed

17 approach in addressing identified needs;

18 (C) the extent to which funding for the

19 project is committed from sources other than

20 under this section;

21 (D) the need to consider a variety of solu22 tions to a variety of needs situations; and

23 (E) such other factors as the Secretary

24 deems appropriate to carry out the objectives of

25 this section.
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1 (e) COMPETITIVE GRANTS.—

2 (1) PURPOSE.—Grants under this subsection

3 shall be made, in accordance with paragraph (2), to

4 the entities referred to in subsection (a) for the pur5 pose of assisting the community development and

6 housing needs of the residents of one or more

7 colonias in an area or region.

8 (2) RESERVATION OF FUNDS.—Of amounts al9 located under subsection (j)(2), the Secretary shall

10 reserve a target amount for grants under this sub11 section for use in colonias in each State. The Sec12 retary shall determine the amount be reserved based

13 on such objective factors of need as the Secretary

14 deems appropriate, which may include rates of pov15 erty in, and the population of, colonias. The Sec16 retary shall reallocate any amounts set-aside under

17 this paragraph for which the Secretary determines

18 there will not be sufficient approvable applications in

19 a fiscal year.

20 (3) USE OF FUNDS.—Any amount not reserved

21 or reallocated under paragraph (2) may be used in

22 colonias in any State.

23 (4) APPLICATIONS.—Applications for grants

24 under this subsection shall be submitted at such

25 time and in accordance with such procedures, as the
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1 Secretary shall prescribe. Applications shall contain

2 the following information, which the Secretary shall

3 consider in selecting projects for grants under this

4 subsection:

5 (A) The extent of need in the colonia.

6 (B) An estimate of the likely effectiveness

7 of the proposed approach in addressing identi8 fied needs.

9 (C) A description of the extent to which

10 funding for the project is committed from

11 sources other than under this section.

12 (D) Any other information that the Sec13 retary deems appropriate to carry out the objec14 tives of this section.

15 (5) SELECTION OF GRANTEES.—The Secretary

16 shall select grantees for grants under this subsection

17 on the basis of a competition, following publication

18 of a notice of funding availability in the Federal

19 Register.

20 (f) RECORDS, REPORTS, AND AUDITS.—

21 (1) KEEPING OF RECORDS.—Each grantee

22 under this section shall keep such records as may be

23 reasonably necessary to disclose the amounts and

24 the disposition of grant amounts received under this
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1 section and to ensure compliance with the require2 ments of this section.

3 (2) GRANTEE REPORTS.—Each grantee under

4 this section shall submit to the Secretary a report,

5 or series of reports, in a form and at a time speci6 fied by the Secretary. Each report shall—

7 (A) describe the use of funds made avail8 able to the grantee under this section; and

9 (B) describe and analyze the effect of as10 sisted activities in addressing the community

11 development and housing needs of the residents

12 of colonias.

13 (g) ACCESS TO DOCUMENTS BY SECRETARY.—The

14 Secretary shall have access for the purpose of audit and

15 examination to any books, documents, papers, and records

16 of a grantee that are pertinent to assistance received in

17 connection with, and the requirements of, this section.

18 (h) ACCESS TO DOCUMENTS BY COMPTROLLER GEN19 ERAL.—The Comptroller General of the United States, or

20 any of the duly authorized representatives of the Comp21 troller General, shall have access for the purpose of audit

22 and examination to any books, documents, papers, and

23 records of a grantee that are pertinent to assistance re24 ceived under, and the requirements of, this section.
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1 (i) DEFINITIONS.—For purposes of this section, the

2 following definitions shall apply:

3 (1) The terms ‘‘colonia’’ and ‘‘United States4 Mexico Border Region’’ have the meanings given the

5 terms in section 916(e) of the Cranston-Gonzalez

6 National Affordable Housing Act.

7 (2) The term ‘‘metropolitan area’’ has the

8 meaning given the term in section 102(a) of the

9 Housing and Community Development Act of 1974.

10 (3) The term ‘‘nonprofit organization’’ means—

11 (A) an organization—

12 (i) that is described in section 501(c)

13 of the Internal Revenue Code of 1986; and

14 (ii) is exempt from taxation under

15 section 501(a) of such Code; or

16 (B) an organization—

17 (i) no part of the net earnings of

18 which inures to the benefit of any member,

19 founder, contributor, or individual;

20 (ii) that in the case of a private non21 profit organization, has a voluntary board;

22 (iii) that has an accounting system, or

23 has designated a fiscal agent in accordance

24 with requirements established by the Sec25 retary; and
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1 (iv) that practices nondiscrimination

2 in the provision of assistance.

3 (4) The term ‘‘Secretary’’ means the Secretary

4 of Housing and Urban Development.

5 (5) The term ‘‘State’’ means the States of Cali6 fornia, Arizona, New Mexico, and Texas.

7 (6) The term ‘‘unit of general local govern8 ment’’ means—

9 (A) a city, town, township, county, parish,

10 village, or other general purpose political sub11 division of a State; and

12 (B) any agency or instrumentality thereof

13 that is established pursuant to legislation and

14 designated by the chief executive to act on be15 half of the jurisdiction with regard to provisions

16 of this section.

17 The term includes a consortium of geographically

18 contiguous units of general local government, if the

19 Secretary determines that the consortium—

20 (i) has sufficient authority and administra21 tive capability to carry out the purposes of this

22 section on behalf of its member jurisdictions;

23 and

24 (ii) meets such other requirements as the

25 Secretary may prescribe.
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1 (j) FUNDING.—

2 (1) AUTHORIZATION OF APPROPRIATIONS.—

3 There are authorized to be appropriated for grants

4 under this section $100,000,000 for each of fiscal

5 years 1995 and 1996. Any amount appropriated to

6 carry out this section shall remain available until ex7 pended.

8 (2) ALLOCATION OF FUNDS.—Of the amounts

9 appropriated under paragraph (1) for any fiscal

10 year—

11 (A) 80 percent shall be available for grants

12 to establish model programs under subsection

13 (c); and

14 (B) 20 percent shall be available for com15 petitive grants under subsection (e).

16 SEC. 635. GRANTS FOR EMPOWERMENT ZONES AND ENTER17 PRISE COMMUNITIES.

18 (a) GRANT AUTHORITY.—The Secretary of Housing

19 and Urban Development may make grants to units of gen20 eral local government in which empowerment zones and

21 enterprise communities have been designated pursuant to

22 section 1391 of the Internal Revenue Code of 1986.

23 (b) USE.—Grants under this section may be used

24 only to assist units of general local government in imple25 menting the strategic plan for community revitalization re-
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1 quired for each designated empowerment zone and enter2 prise community by expanding business opportunities and

3 job creation through economic development activities and

4 by stimulating the use of project-based rental assistance

5 certificates and other activities to construct or rehabilitate

6 rental housing, as follows:

7 (1) ECONOMIC DEVELOPMENT ACTIVITIES.—

8 Grants amounts under this section used for eco9 nomic development activities may be used only for

10 activities eligible to be carried out with amounts pro11 vided under title I of the Housing and Community

12 Development Act of 1974.

13 (2) ASSISTED HOUSING.—Grant amounts under

14 this section used for housing activities may be used

15 for—

16 (A) project-based assistance activities eligi17 ble under section 8 of the United States Hous18 ing Act of 1937 or similar State and local pro19 grams;

20 (B) activities eligible for assistance under

21 title II of the Cranston-Gonzalez National Af22 fordable Housing Act or a similar local afford23 able housing program; and
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1 (C) other housing activities that meet the

2 requirements of this subsection, as the Sec3 retary may approve.

4 (3) PROHIBITION OF USE OF ASSISTANCE FOR

5 EMPLOYMENT RELOCATION ACTIVITIES.—Notwith6 standing any other provision of this section, no

7 grant amounts under this section may be used for

8 any activity (including any infrastructure improve9 ment) that is intended, or likely, to facilitate the re10 location or expansion of any industrial or commer11 cial plant, facility, or operation, from one area to an12 other area, if the relocation or expansion will result

13 in a loss of employment in the area from which the

14 relocation or expansion occurs.

15 (c) TECHNICAL ASSISTANCE.—From amounts re16 served under subsection (i)(2), the Secretary shall carry

17 out, directly or through contracts, training and informa18 tion activities in connection with the program under this

19 section.

20 (d) APPLICATIONS.—A locality in which an

21 empowerment zone or enterprise community has been des22 ignated, which designation remains in effect, may submit

23 an application to the Secretary for a grant under this sec24 tion. The application shall contain such information and

25 certifications as the Secretary may require, including a
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1 certification that the grant will be used in accordance with

2 the approved strategic plan. Where a zone or community

3 is within the jurisdiction of more than one unit of general

4 local government, the application shall be submitted joint5 ly by the units of general local government and shall speci6 fy whether and, if so, how the grant is to be divided among

7 the units.

8 (e) FUNDING.—To the extent amounts are available

9 to carry out this section, for applications approved by the

10 Secretary the amount of a grant under this section for

11 a fiscal year shall be—

12 (1) $50,000,000 for each urban empowerment

13 zone;

14 (2) $20,000,000 for each rural empowerment

15 zone; and

16 (3) $1,400,000 for each enterprise community.

17 (f) TERMS AND CONDITIONS.—Grants made under

18 this section shall be subject to such terms and conditions

19 as the Secretary may establish.

20 (g) USE IN CONJUNCTION WITH LOAN GUARAN21 TEES.—Grants made under this section may be used in

22 conjunction with loans guaranteed under section 108 of

23 the Housing and Community Development Act of 1974

24 and the Home Investment Partnerships Act.

25 (h) RECORDS, REPORTS, AND AUDITS.—
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1 (1) KEEPING OF RECORDS.—Each grantee

2 under this section shall keep such records as may be

3 reasonably necessary to disclose the amounts and

4 the disposition of grant amounts received under this

5 subtitle and to ensure compliance with the require6 ments of this section.

7 (2) GRANTEE REPORTS.—Each grantee under

8 this section shall submit to the Secretary a report,

9 or series of reports, in a form and at a time speci10 fied by the Secretary. Each report shall—

11 (A) describe the use of amounts made

12 available under this section; and

13 (B) describe and analyze the effect of as14 sisted activities in addressing the objectives of

15 this section.

16 (3) ACCESS TO DOCUMENTS BY SECRETARY.—

17 The Secretary shall have access for the purpose of

18 audit and examination to any books, documents, pa19 pers, and records of the grantee that are pertinent

20 to assistance received in connection with, and the re21 quirements of, this section.

22 (4) ACCESS TO DOCUMENTS BY COMPTROLLER

23 GENERAL.—The Comptroller General of the United

24 States, or any of the duly authorized representatives

25 of the Comptroller General, shall have access for the
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1 purpose of audit and examination to any books, doc2 uments, papers, and records of the grantee that are

3 pertinent to assistance received under, and the re4 quirements of, this section.

5 (i) FUNDING.—

6 (1) AUTHORIZATION OF APPROPRIATIONS.—

7 There are authorized to be appropriated for pur8 poses of this section $250,000,000 for fiscal year

9 1995 and $250,000,000 for fiscal year 1996. Any

10 amount appropriated to carry out this section shall

11 remain available until expended.

12 (2) RESERVATION OF AMOUNTS FOR TRAINING

13 AND INFORMATION ACTIVITIES.—Of the amounts

14 appropriated pursuant to paragraph (1) for any fis15 cal year, the Secretary shall reserve not more than

16 0.5 percent for use only to carry out the training

17 and information activities referred to in subsection

18 (c).

19 SEC. 636. USE OF GRANT AMOUNTS.

20 (a) BUFFALO, NEW YORK.—Notwithstanding any

21 other provision of law, the City of Buffalo, New York, may

22 retain amounts provided under an urban development ac23 tion grant under section 119 of the Housing and Commu24 nity Development Act of 1974 for Project No. B–87–AA–

25 36–0540 and use such funds for the Towne Gardens Plaza
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1 project, and may retain amounts provided under such a

2 grant for Project No. B–87–AA–36–0521 and use such

3 funds for the American Axle project, if such projects are

4 commenced not later than 6 months after the date of the

5 enactment of this Act.

6 (b) PITTSBURGH, PENNSYLVANIA.—Notwithstanding

7 any other provision of law, the city of Pittsburgh, Penn8 sylvania, may retain any amounts provided under an

9 urban development action grant for Project No. B–86–

10 AA–42–0275 and use such funds for the Central Pitts11 burgh Plaza project, if such project is commenced not

12 later than 6 months after the date of the enactment of

13 this Act.

14 (c) WILKES-BARRE, PENNSYLVANIA.—Notwithstand15 ing any other provision of law, the city of Wilkes-Barre,

16 Pennsylvania, may retain any amounts provided under an

17 urban development action grant for Project No. B–87–

18 AA–42–1211 and use such funds for the Northeastern

19 Pennsylvania Economic Development project, if such

20 project is commenced not later than 6 months after the

21 date of enactment of this Act.

22 (d) RICHMOND, VIRGINIA.—The Secretary of Hous23 ing and Urban Development shall cancel the indebtedness

24 of the city of Richmond, Virginia, relating to the categor25 ical program settlement grant provided to the city to settle
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1 four urban renewal programs (Project No. B–78–UR–51–

2 0019). The city of Richmond, Virginia, is hereby relieved

3 of all liability to the Federal Government for such grant

4 and any fees and charges payable in connection with such

5 grant.

6 (e) LOCKPORT TOWNSHIP, ILLINOIS.—The Secretary

7 of Housing and Urban Development shall cancel the in8 debtedness of Lockport Township, Illinois, relating to the

9 public facilities loan for Project No. ILL–11–PFL0112.

10 Lockport Township, Illinois, is hereby relieved of all liabil11 ity to the Federal Government for the outstanding prin12 cipal balance on such loan, the amount of accrued interest

13 on such loan, and any other fees and charges payable in

14 connection with such loan.

15 (f) BINGHAMTON, NEW YORK.—Notwithstanding any

16 other provision of law, the City of Binghamton, New York,

17 may retain amounts provided under an urban development

18 action grant under section 119 of the Housing and Com19 munity Development Act of 1974 for Project No. B–88–

20 AA–36–0535 and use such funds for the High Technology

21 Center project, if such project is commenced not later than

22 6 months after the date of the enactment of this Act.

23 (g) BUDGET COMPLIANCE.—Subsections (d) and (e)

24 of this section shall be effective only to the extent, or in

25 such amounts, as are provided in appropriation Acts.
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1 TITLE VII—REGULATORY AND

2 MISCELLANEOUS PROGRAMS

3 SEC. 701. FAIR HOUSING INITIATIVES PROGRAM.

4 Section 561(g) of the Housing and Community De5 velopment Act of 1987 (42 U.S.C. 3616 note) is amended

6 to read as follows:

7 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

8 are authorized to be appropriated to carry out the provi9 sions of this section $26,000,000 for fiscal year 1995 and

10 $27,000,000 for fiscal year 1996, of which—

11 ‘‘(1) not less than $9,000,000 for fiscal year

12 1995 and $9,000,000 for fiscal year 1996 shall be

13 for private enforcement initiatives authorized under

14 subsection (b), divided equally between activities

15 specified under subsection (b)(1) and those specified

16 under subsection (b)(2);

17 ‘‘(2) not less than $3,000,000 for fiscal year

18 1995 and $3,000,000 for fiscal year 1996 shall be

19 for qualified fair housing enforcement organizations

20 authorized under subsection (c)(1);

21 ‘‘(3) not less than $7,000,000 for fiscal year

22 1995 and $7,000,000 for fiscal year 1996 shall be

23 for the creation of new fair housing enforcement or24 ganizations authorized under subsection (c)(2); and
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1 ‘‘(4) not less than $7,000,000 for fiscal year

2 1995 and $7,000,000 for fiscal year 1996 shall be

3 for education and outreach programs authorized

4 under subsection (d), to be divided equally between

5 activities specified under subsection (d)(1) and those

6 specified under subsections (d)(2) and (d)(3).

7 Any amount appropriated under this section shall remain

8 available until expended.’’.

9 SEC. 702. HUD PROGRAM MONITORING AND EVALUATION.

10 The first sentence of section 7(r)(6) of the Depart11 ment of Housing and Urban Development Act (42 U.S.C.

12 3535(r)(6)) is amended to read as follows: ‘‘There are au13 thorized to be appropriated to carry out this subsection

14 such sums as may be necessary for fiscal years 1995 and

15 1996.’’.

16 SEC. 703. HUD SALARIES AND EXPENSES.

17 Section 7(s) of the Department of Housing and

18 Urban Development Act (42 U.S.C. 3535(s)) is amended

19 to read as follows:

20 ‘‘(s) AUTHORIZATION OF APPROPRIATIONS FOR SAL21 ARIES AND EXPENSES.—Notwithstanding any other provi22 sion of law, there are authorized to be appropriated such

23 sums as may be necessary for each of fiscal years 1995

24 and 1996 for salaries and expenses to carry out the pur25 poses of this section. There is also authorized to be appro-
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1 priated for fiscal year 1996, $40,000,000, for the training,

2 travel to training, continuing education, professional de3 velopment, and improvement of skills of employees of the

4 Department.’’.

5 SEC. 704. USE OF TECHNICAL ASSISTANCE AMOUNTS BY OR

6 FOR HUD STAFF.

7 Section 7 of the Department of Housing and Urban

8 Development Act (42 U.S.C. 3535) is amended by adding

9 at the end the following new subsection:

10 ‘‘(t) USE OF TECHNICAL ASSISTANCE AMOUNTS.—

11 The Secretary may transfer to any of the accounts of the

12 Department for salaries and expenses from any other ac13 count from which amounts may be drawn for technical as14 sistance such amounts as the Secretary determines are

15 reasonable to reimburse such salaries and expenses ac16 count, but only if such reimbursement is made for expend17 itures for the costs of personal services, travel, and trans18 portation, and other object classifications that are in19 curred for the technical assistance, training, and related

20 activities provided by or to officials and employees of the

21 Department for a program that is funded from such other

22 account and in which the costs of technical assistance are

23 otherwise eligible for expenditure. Up to 10 percent of the

24 amount transferred may be used for technical assistance,

25 training, travel, and related expenses provided to officials
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1 and employees of the Department. The authority under

2 this subsection to transfer amounts shall be in addition

3 to any other authority of the Secretary to transfer funds

4 among accounts which exists on the date of the enactment

5 of the Housing and Community Development Act of 1992

6 or is provided after such date.’’.

7 SEC. 705. ANNUAL REPORT REGARDING REPEAL OF UN8 FUNDED PROGRAMS.

9 Section 8 of the Department of Housing and Urban

10 Development Act (42 U.S.C. 3536) is amended—

11 (1) by inserting ‘‘(a) IN GENERAL.—’’ after

12 ‘‘SEC. 8.’’; and

13 (2) by adding at end the following new sub14 section:

15 ‘‘(b) UNFUNDED PROGRAMS.—In each annual report

16 under this section, the Secretary shall—

17 ‘‘(1) identify each program under the jurisdic18 tion of the Department for which amounts have been

19 authorized to be appropriated for each of the 3 most

20 recently completed fiscal years but for which, for all

21 3 of such years, amounts have not been appro22 priated; and

23 ‘‘(2) include proposed legislation repealing the

24 provisions of Federal law authorizing the programs

25 identified pursuant to paragraph (1) and providing
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1 requirements for the treatment, after such repeal, of

2 any assistance provided under such provisions before

3 the repeal.’’.

4 SEC. 706. REQUIREMENTS FOR PARTICIPATION OF WOMEN

5 IN CONSTRUCTION ASSISTED UNDER HUD

6 PROGRAMS.

7 The Department of Housing and Urban Development

8 Act (42 U.S.C. 3531 et seq.) is amended by adding at

9 the end the following new section:

10 ‘‘SEC. 15. REQUIREMENTS FOR PARTICIPATION OF WOMEN

11 IN CONSTRUCTION ASSISTED UNDER HUD

12 PROGRAMS.

13 ‘‘(a) BIDS.—Except as provided in subsection (c),

14 each contractor submitting a bid or contract proposal for

15 a covered construction contract (and each applicant for

16 construction assistance that will carry out construction)

17 shall include in the bid or proposal (or application for con18 struction assistance) documentation sufficient to ensure

19 that the contractor will comply with the requirements of

20 this section or certifications that the contractor will make

21 a good faith effort to comply with such requirements. The

22 Secretary shall, by regulation, establish standards for such

23 documentation and certifications and shall provide for con24 tractors (and applicants) making certifications to periodi-
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1 cally provide to the Secretary evidence of such good faith

2 efforts.

3 ‘‘(b) PARTICIPATION REQUIREMENTS.—Any contrac4 tor who enters into a covered construction contract (and

5 any recipient of construction assistance carrying out con6 struction), and any subcontractor thereof, shall employ

7 and maintain the employment of construction trades work8 ers in construction covered by the covered construction

9 contract (or assisted with the construction assistance)—

10 ‘‘(1) for any contractor or subcontractor (or re11 cipient of construction assistance) whose total num12 ber of employees is not less than 6 and not more

13 than 19, not less than 1 woman; and

14 ‘‘(2) for any contractor or subcontractor (or re15 cipient of construction assistance) whose total num16 ber of employees is 20 or more, a number of women

17 that is not less than 10 percent of the positions in

18 each of the construction trades performed by the

19 contractor or subcontractor (or recipient of construc20 tion assistance).

21 ‘‘(c) EXEMPTION FOR SMALL CONTRACTORS.—Any

22 contractor (or recipient) whose total number of employees

23 is 5 or less shall not be subject to the requirements of

24 this section.

25 ‘‘(d) DEFINITIONS.—For purposes of this section:
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1 ‘‘(1) The term ‘construction assistance’ means

2 any assistance provided under any program adminis3 tered by the Secretary that is used for any construc4 tion, but does not include mortgage insurance under

5 the National Housing Act.

6 ‘‘(2) The term ‘construction trades workers’

7 means workers in any construction trade, includ8 ing—

9 ‘‘(A) brickmasons, stonemasons, and tile

10 setters;

11 ‘‘(B) carpenters;

12 ‘‘(C) electricians and power transmission

13 installers;

14 ‘‘(D) painters, paperhangers, and plaster15 ers;

16 ‘‘(E) plumbers, pipefitters, and steam17 fitters;

18 ‘‘(F) carpet installers;

19 ‘‘(G) drywall installers and drywall finish20 ers;

21 ‘‘(H) concrete and terrazzo finishers;

22 ‘‘(I) glaziers;

23 ‘‘(J) insulation workers;

24 ‘‘(K) paving, surfacing, and tamping

25 equipment operators;
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1 ‘‘(L) roofers;

2 ‘‘(M) sheetmetal duct installers;

3 ‘‘(N) structural metal workers;

4 ‘‘(O) power equipment operators (including

5 truck drivers, and backhoe, bulldozer, crane,

6 loader, and grader operators);

7 ‘‘(P) sprinkler installers;

8 ‘‘(Q) elevator installers;

9 ‘‘(R) laborers; and

10 ‘‘(S) landscapers.

11 ‘‘(3) The term ‘contractor’ includes firms, part12 nerships, corporations, and any other persons, and

13 any combination thereof.

14 ‘‘(4) The term ‘covered construction contract’

15 means an agreement to provide labor and related

16 materials, supplies, or services for any construction

17 that—

18 ‘‘(A) involves any construction assistance;

19 and

20 ‘‘(B) if such construction assistance is pro21 vided—

22 ‘‘(i) under the community develop23 ment block grant program under title I of

24 the Housing and Community Development

25 Act of 1974 or the HOME Investment
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1 Partnerships Act, involves a total project

2 cost of not less than $100,000; or

3 ‘‘(ii) under any other program admin4 istered by the Secretary, involves a total

5 project cost of not less than $200,000.

6 ‘‘(5) The term ‘subcontractor’ means any firm,

7 partnership, corporation, or any other person, or any

8 combination thereof, who enters into a contract or

9 agreement with a contractor to perform a substan10 tial specified portion of a covered construction con11 tract.’’.

12 SEC. 707. NOTIFICATION OF HUD FUNDING AWARDS.

13 Section 102(a)(1) of the Department of Housing and

14 Urban Development Reform Act of 1989 (42 U.S.C.

15 3545(a)(1)) is amended by adding at the end the following

16 new sentence: ‘‘Each notice of the availability of assistance

17 shall include an estimate of the date by which the Depart18 ment will notify applicants for such assistance whose ap19 plications or requests for assistance are approved of such

20 approval.’’.

21 SEC. 708. EXCLUSION OF GNMA FROM HUD PERSONNEL

22 CEILINGS.

23 Section 502(a) of the Housing Act of 1948 (12

24 U.S.C. 1701c(a)) is amended by adding at the end the

25 following new sentence: ‘‘Notwithstanding any other provi-
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1 sion of law, employees of the Government National Mort2 gage Association Department in the Department of Hous3 ing and Urban Development shall not be considered em4 ployees of the Department for purposes of any limitation

5 on the number of employees of the Department.’’.

6 SEC. 709. HUD RESEARCH AND DEVELOPMENT.

7 The second sentence of section 501 of the Housing

8 and Urban Development Act of 1970 (12 U.S.C. 1701z–

9 1) is amended to read as follows: ‘‘There are authorized

10 to be appropriated to carry out this title $40,000,000 for

11 fiscal year 1995 and $42,000,000 for fiscal year 1996.’’.

12 SEC. 710. PREVENTING FRAUD AND ABUSE IN RURAL RENT13 AL HOUSING PROGRAM.

14 Section 904 of the Stewart B. McKinney Homeless

15 Assistance Amendments Act of 1988 (42 U.S.C. 3544) is

16 amended—

17 (1) in the heading for the section, by inserting

18 ‘‘AND RURAL RENTAL HOUSING PROGRAM’’ be19 fore the period at the end;

20 (2) by striking paragraph (1) of subsection (a)

21 and inserting the following new paragraph:

22 ‘‘(1) SECRETARY CONCERNED.—The term ‘Sec23 retary concerned’ means—

24 ‘‘(A) the Secretary of Housing and Urban

25 Development, with respect to programs of the
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1 Department of Housing and Urban Develop2 ment; and

3 ‘‘(B) the Secretary of Agriculture, with re4 spect to the program for rural rental housing

5 under section 515 of the Housing Act of

6 1949.’’;

7 (3) in subsection (b), in the matter preceding

8 paragraph (1), by inserting after ‘‘income,’’ the fol9 lowing: ‘‘and as a condition of initial or continuing

10 eligibility for participation in the program for rural

11 rental housing under section 515 of the Housing Act

12 of 1949,’’;

13 (4) in subsection (c)(2)(A)—

14 (A) by inserting before ‘‘from the im15 proper’’ the following: ‘‘or the program for

16 rural rental housing under section 515 of the

17 Housing Act of 1949’’; and

18 (B) by inserting before ‘‘and (in’’ the fol19 lowing: ‘‘and the Department of Agriculture’’;

20 (5) in the last sentence of subsection (c)(3)(A),

21 by inserting ‘‘an officer or employee of the Depart22 ment of Agriculture,’’ after ‘‘Development,’’;

23 (6) in subsection (e), by inserting after ‘‘Devel24 opment’’ the following: ‘‘or the program for rural
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1 rental housing under section 515 of the Housing Act

2 of 1949,’’;

3 (7) in subsection (a)(2), in the matter in sub4 section (b) that precedes paragraph (1), and in

5 paragraphs (1) and (2) of subsection (b), by striking

6 ‘‘the Secretary’’ each place it appears and inserting

7 ‘‘the Secretary concerned’’; and

8 (8) in subsection (b)(3)—

9 (A) by striking ‘‘the Secretary authorizing

10 the Secretary’’ and inserting ‘‘the Secretary

11 concerned authorizing the Secretary con12 cerned’’; and

13 (B) by striking ‘‘of the Secretary’’ and in14 serting ‘‘of the Secretary concerned’’.

15 SEC. 711. NATIONAL INSTITUTE OF BUILDING SCIENCES.

16 The second sentence of section 809(i) of the Housing

17 and Community Development Act of 1974 (12 U.S.C.

18 1701j–2(i)) is amended to read as follows: ‘‘In addition

19 to the amounts authorized to be appropriated under the

20 first sentence of this subsection, there are authorized to

21 be appropriated to the Institute to carry out the provisions

22 of this section $2,000,000 for fiscal year 1995 and

23 $2,000,000 for fiscal year 1996.’’.
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1 SEC. 712. RESIDENTIAL LEAD-BASED PAINT HAZARD RE2 DUCTION.

3 (a) TARGET HOUSING HAZARD REDUCTION.—

4 (1) AUTHORIZATION OF APPROPRIATIONS.—

5 Section 1011(p) of the Housing and Community De6 velopment Act of 1992 (42 U.S.C. 4852(p)) is

7 amended to read as follows:

8 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—For the

9 purposes of carrying out this Act, there are authorized to

10 be appropriated $100,000,000 for fiscal year 1995 and

11 $110,000,000 for fiscal year 1996.’’.

12 (2) TECHNICAL ASSISTANCE AND CAPACITY

13 BUILDING.—Section 1011(g) of the Housing and

14 Community Development Act of 1992 (42 U.S.C.

15 4852(g)) is amended—

16 (A) in paragraph (1)—

17 (i) in the first sentence, by inserting

18 before the period at the end the following:

19 ‘‘, by providing technical assistance, either

20 directly, or indirectly under contracts or

21 otherwise’’; and

22 (ii) by striking the second sentence;

23 and

24 (B) by striking paragraph (2) and insert25 ing the following new paragraph:
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1 ‘‘(2) SET-ASIDE.—Of the total amount ap2 proved in appropriation Acts under subsection (p),

3 there shall be set aside to carry out this subsection

4 $3,000,000 for fiscal year 1995 and $3,000,000 for

5 fiscal year 1996.’’.

6 (3) ELIGIBLE HOUSING.—Section 1011 of the

7 Housing and Community Development Act of 1992

8 (42 U.S.C. 4852) is amended—

9 (A) by striking subsection (a) and insert10 ing the following new subsection:

11 ‘‘(a) AUTHORITY AND ELIGIBLE HOUSING.—

12 ‘‘(1) AUTHORITY.—The Secretary may provide

13 grants to eligible applicants to evaluate and reduce

14 lead-based paint hazards in housing that meets the

15 requirements under paragraphs (2) and (3) and is

16 not federally assisted housing, federally owned hous17 ing, or public housing, in accordance with the provi18 sions of this section.

19 ‘‘(2) ELIGIBLE HOUSING.—Housing that meets

20 the requirements under this paragraph is the follow21 ing housing:

22 ‘‘(A) RENTAL HOUSING.—In the case of

23 rental housing, housing in which at least 50

24 percent of the dwelling units are occupied by or

25 available to households with incomes not ex-
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1 ceeding 50 percent of the median income for

2 the area, as defined by the Secretary, and the

3 remainder of the dwelling units are occupied by

4 or available to households with incomes not ex5 ceeding 80 percent of the median income for

6 the area, as defined by the Secretary.

7 ‘‘(B) OWNER-OCCUPIED HOUSING.—In the

8 case of owner-occupied housing, a dwelling that

9 is the principal residence of a household with an

10 income not exceeding 80 percent of the median

11 income for the area, as defined by the Sec12 retary.

13 ‘‘(3) LIMITATIONS ON USE OF AMOUNTS.—

14 ‘‘(A) RENTAL HOUSING.—In the case of

15 rental housing for which lead hazard reduction

16 activities are conducted using grant amounts

17 under this section—

18 ‘‘(i) notwithstanding paragraph

19 (2)(A), for housing with 5 or more dwell20 ing units, not more than 20 percent of

21 such remaining dwelling units may be oc22 cupied by households with incomes exceed23 ing 80 percent of the median income for

24 the area, as defined by the Secretary; and
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1 ‘‘(ii) all vacant dwelling units for

2 which such activities have been conducted

3 shall be made available only to households

4 with a child or children under 6 years of

5 age, and among such households priority

6 shall be given to households with incomes

7 not exceeding 50 percent of the median in8 come for the area, as defined by the Sec9 retary.

10 ‘‘(B) OWNER-OCCUPIED HOUSING.—In the

11 case of owner-occupied housing for which lead

12 hazard reduction activities are conducted using

13 grant amounts under this section, 90 percent of

14 the dwelling units for which such activities are

15 conducted shall be dwelling units occupied by a

16 household with a child or children under 6

17 years of age or dwelling units in which a child

18 of such age regularly spends a substantial por19 tion of his or her time.

20 ‘‘(4) EXCEPTION TO ELIGIBLE HOUSING RE21 QUIREMENTS.—Notwithstanding paragraph (2),

22 housing that qualifies as affordable housing under

23 section 215 of the Cranston-Gonzalez National Af24 fordable Housing Act (including housing that re25 ceives assistance under section 8 of the United
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1 States Housing Act of 1937) and for which activities

2 assisted under this section are to be conducted using

3 amounts made available to carry out this section for

4 fiscal year 1993 shall be considered housing that

5 meets the requirements of paragraph (2) and shall

6 not be subject to the requirements of paragraph (3),

7 but only if the recipient of such assistance elects, be8 fore commencing such activities with such assist9 ance, to be subject to the provisions of this para10 graph and the Secretary approves such election. Any

11 such recipient making such an election may not use

12 such assistance to carry out activities under this sec13 tion with respect to housing that meets the require14 ments of paragraphs (2) and (3).’’; and

15 (B) by striking ‘‘priority housing’’ each

16 place it appears and inserting ‘‘housing that

17 meets the requirements under subsection (a)’’.

18 (b) HUD RESEARCH.—

19 (1) CONDUCTING OF RESEARCH.—Section 1052

20 of the Housing and Community Development Act of

21 1992 (42 U.S.C. 4854a) is amended by inserting

22 after ‘‘other Federal agencies,’’ the following: ‘‘either

23 directly, or indirectly under contract or otherwise,’’.
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1 (2) FUNDING.—Section 1053 of the Housing

2 and Community Development Act of 1992 (42

3 U.S.C. 4854b) is amended to read as follows:

4 ‘‘SEC. 1054. FUNDING.

5 ‘‘Of the total amount approved in appropriation Acts

6 under section 1011(p), there shall be set aside to carry

7 out this part $5,000,000 for fiscal year 1995 and

8 $5,000,000 for fiscal year 1996.’’.

9 (3) OTHER ACTIVITIES.—Part 1 of subtitle D

10 of title X of the Housing and Community Develop11 ment Act of 1992 (42 U.S.C. 4854 et seq.) is

12 amended by inserting after section 1052 the follow13 ing new section:

14 ‘‘SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVI15 TIES.

16 ‘‘The Secretary may use amounts available to carry

17 out this part to undertake, either directly, or indirectly

18 under contract or otherwise, pursuant to title V of the

19 Housing and Urban Development Act of 1970, such stud20 ies, tests (including pilot tests of new or revised pro21 grams), evaluations, demonstrations, education of the pub22 lic, and preparation of training materials, as are consist23 ent with the purposes of this Act.’’.
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1 (c) DEFINITIONS.—Section 1004 of the Housing and

2 Community Development Act of 1992 (42 U.S.C. 4851b)

3 is amended—

4 (1) by striking paragraph (20); and

5 (2) by redesignating paragraphs (21) through

6 (27) as paragraphs (20) through (26), respectively.

7 SEC. 713. GAO STUDY OF LEAD-BASED PAINT DETECTION

8 TECHNOLOGIES AND TENANT NOTIFICATION

9 PROCEDURES.

10 (a) IN GENERAL.—The Comptroller General of the

11 United States shall conduct a study of the lead-based

12 paint detection and abatement programs of the Depart13 ment of Housing and Urban Development, which shall in14 clude—

15 (1) analysis of existing lead-based paint detec16 tion technologies including an analysis of the effec17 tiveness of x-ray fluorescence analyzers (in this sec18 tion referred to as ‘‘XRF’’);

19 (2) evaluation of the qualifications of XRF con20 tractors and whether national certification standards

21 should be imposed;

(3) analysis of whether the 1.0 mg/cm2 22 action

23 level for lead paint, as directed in section 302 of the

24 Lead-Based Paint Poisoning Prevention Act, is too

25 high to adequately protect tenant health, and in con-
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1 duction such analysis, the Comptroller General shall

2 consult with the Consumer Product Safety Commis3 sion, the Department of Health and Human Serv4 ices, and the Environmental Protection Agency; and

5 (4) evaluation of the effectiveness of tenant no6 tification procedures of the Department of Housing

7 and Urban Development pursuant to a finding of

8 lead-based paint in public housing.

9 (b) REPORT.—Not later than the expiration of the

10 6-month period beginning on the date of the enactment

11 of this Act, the Comptroller General shall submit to the

12 Congress a report describing the results of the study re13 quired by subsection (a).

14 SEC. 714. CIVIL MONEY PENALTIES FOR VIOLATIONS OF

15 HOME MORTGAGE DISCLOSURE ACT BY

16 NONSUPERVISED MORTGAGEES.

17 Section 305 of the Home Mortgage Disclosure Act

18 of 1975 (12 U.S.C. 2804) is amended—

19 (1) in subsection (b)—

20 (A) in paragraph (2), by inserting ‘‘and’’

21 at the end;

22 (B) in paragraph (3), by striking ‘‘; and’’

23 at the end and inserting a period; and

24 (C) by striking paragraph (4);
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1 (2) by redesignating subsection (c) as sub2 section (d); and

3 (3) by inserting after subsection (b) the follow4 ing new subsection:

5 ‘‘(c) POWERS OF THE SECRETARY OF HOUSING AND

6 URBAN DEVELOPMENT.—

7 ‘‘(1) IN GENERAL.—The Secretary of Housing

8 and Urban Development (in this subsection referred

9 to as the ‘Secretary’) shall enforce compliance with

10 the requirements imposed under this title with re11 gard to lending institutions not described in sub12 section (b).

13 ‘‘(2) CIVIL MONEY PENALTIES.—Pursuant to

14 paragraph (1) of this subsection, the Secretary may

15 impose a civil money penalty for failure to comply

16 with the requirements of this title.

17 ‘‘(3) AMOUNT OF PENALTY.—The amount of

18 the penalty, as determined by the Secretary, may

19 not exceed $5,000 for each violation, except that the

20 maximum penalty for all violations by any particular

21 lending institution during any 1-year period shall

22 not exceed $1,000,000.

23 ‘‘(4) VIOLATIONS FOR WHICH A PENALTY MAY

24 BE IMPOSED.—A civil money penalty may be im25 posed for the late submission of a report, failure to
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1 submit a report, submission of an illegible report,

2 submission of an erroneous report, and failure to

3 submit a corrected report for a report that was illeg4 ible or erroneous.

5 ‘‘(5) AGENCY PROCEDURES.—

6 ‘‘(A) ESTABLISHMENT.—The Secretary

7 shall establish standards and procedures gov8 erning the imposition of civil money penalties

9 under this section. The standards and proce10 dures shall provide for the Secretary to make

11 the determination to impose the penalty or to

12 use an administrative entity (such as the Mort13 gagee Review Board, established pursuant to

14 section 202(c) of the National Housing Act) to

15 make the determination; shall provide for the

16 imposition of a penalty only after the lending

17 institution has been given an opportunity for a

18 hearing on the record; and may provide for re19 view by the Secretary of a determination or

20 order, or interlocutory ruling, arising from a

21 hearing.

22 ‘‘(B) FINAL ORDERS.—If no hearing is re23 quested within 15 days of receipt of the notice

24 of opportunity for hearing, the imposition of the

25 penalty shall constitute a final and
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1 unappealable determination. If the Secretary re2 views the determination or order, the Secretary

3 may affirm, modify, or reverse that determina4 tion or order. If the Secretary does not review

5 the determination or order within 90 days of

6 the issuance of the determination or order, the

7 determination or order shall be final.

8 ‘‘(C) FACTORS IN DETERMINING AMOUNT

9 OF PENALTY.—In determining the amount of a

10 penalty under this subsection, consideration

11 shall be given to such factors as the gravity of

12 the offense, any history of prior offenses, ability

13 to pay the penalty, deterrence of future viola14 tions, and such other factors as the Secretary

15 may determine to be appropriate.

16 ‘‘(D) REVIEWABILITY OF IMPOSITION OF

17 PENALTY.—The Secretary’s determination or

18 order imposing a penalty under this subsection

19 shall not be subject to review, except as pro20 vided in this subsection.

21 ‘‘(6) JUDICIAL REVIEW OF AGENCY DETER22 MINATION.—

23 ‘‘(A) IN GENERAL.—After exhausting all

24 administrative remedies established by the Sec25 retary under this subsection, a lending institu-
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1 tion against whom the Secretary has imposed a

2 civil money penalty under this subsection may

3 obtain a review of the penalty as may be ad4 dressed in the notice of determination to impose

5 a penalty in the appropriate court of appeals of

6 the United States, by filing in such court, with7 in 20 days after the entry of such order or de8 termination, a written petition praying that the

9 Secretary’s determination or order be modified

10 or set aside in whole or in part.

11 ‘‘(B) OBJECTIONS NOT RAISED IN HEAR12 ING.—The court shall not consider any objec13 tion that was not raised in the hearing con14 ducted pursuant to this subsection unless a

15 demonstration is made of extraordinary cir16 cumstances causing the failure to raise the ob17 jection. If any party demonstrates to the satis18 faction of the court that additional evidence not

19 presented at the hearing is material and that

20 there were reasonable grounds for the failure to

21 present such evidence at the hearing, the court

22 shall remand the matter to the Secretary for

23 consideration of the additional evidence.

24 ‘‘(C) SCOPE OF REVIEW.—The decisions,

25 findings, and determinations of the Secretary
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1 shall be reviewed pursuant to section 706 of

2 title 5, United States Code.

3 ‘‘(D) ORDER TO PAY PENALTY.—Notwith4 standing any other provision of law, in any such

5 review, the court shall have the power to order

6 payment of the penalty imposed by the Sec7 retary.

8 ‘‘(7) ACTION TO COLLECT PENALTY.—If a lend9 ing institution fails to comply with the Secretary’s

10 determination or order imposing a civil money pen11 alty under this subsection, after the determination

12 or order is no longer subject to review as provided

13 by this subsection, the Secretary may bring an ac14 tion in an appropriate United States district court to

15 obtain a monetary judgment against the lending in16 stitution. In such an action, the validity and appro17 priateness of the Secretary’s determination or order

18 imposing the penalty shall not be subject to review.

19 The monetary judgment may, in the court’s discre20 tion, include the attorneys fees and other expenses

21 incurred by the United States in connection with the

22 action.

23 ‘‘(8) SETTLEMENT BY SECRETARY.—The Sec24 retary may compromise, modify, or remit any civil
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1 money penalty which may be imposed under this

2 subsection.

3 ‘‘(9) REGULATIONS.—The Secretary shall issue

4 such regulations as the Secretary deems appropriate

5 to implement this subsection.

6 ‘‘(10) DEPOSIT OF PENALTIES IN TREASURY.—

7 All civil money penalties collected under this sub8 section shall be deposited in the Miscellaneous Re9 ceipts Account of the Treasury.’’.

10 SEC. 715. REMOVAL OF REGULATORY BARRIERS TO AF11 FORDABLE HOUSING.

12 (a) PURPOSES.—Section 1202 of the Housing and

13 Community Development Act of 1992 (42 U.S.C. 12705a)

14 is amended—

15 (1) in paragraph (1), by striking ‘‘State and

16 local governments to further identify and remove’’

17 and inserting ‘‘the further identification and removal

18 of’’; and

19 (2) by striking paragraph (2) and inserting the

20 following new paragraph:

21 ‘‘(2) to encourage the establishment of partner22 ships between local governments and builders and

23 developers of affordable housing to facilitate develop24 ment of innovative land use and building practices to

25 overcome regulatory barriers.’’.
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1 (b) GRANTS.—Section 1204 of the Housing and

2 Community Development Act of 1992 (42 U.S.C. 12705c)

3 is amended—

4 (1) by striking subsection (a) and inserting the

5 following new subsection:

6 ‘‘(a) IN GENERAL.—The amounts available for use

7 under this Act may be used for grants under subsections

8 (b) and (c), for evaluation of grantees, and for contracts

9 with intermediaries for the administration of such

10 grants.’’;

11 (2) in subsection (b)—

12 (A) in the heading for the subsection, by

13 striking ‘‘GRANTS’’ and inserting ‘‘AND RE14 GIONAL STRATEGIES FOR BARRIER REMOVAL’’;

15 (B) in matter preceding paragraph (1), by

16 inserting after ‘‘States’’ the following: ‘‘, con17 sortia of units of general local government, as18 sociations of units of general local government,

19 and metropolitan or regional governments’’;

20 (C) in paragraph (3), by striking ‘‘a State

21 program to reduce State and local’’ and insert22 ing ‘‘State or regional programs to reduce’’;

23 (D) in paragraph (4), by inserting ‘‘or

24 local’’ after ‘‘State’’;
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1 (E) in paragraph (5), by striking ‘‘State’’;

2 and

3 (F) by striking paragraph (6) and insert4 ing the following new paragraph:

5 ‘‘(6) developing proposed legislation or adminis6 trative policies for enactment by the State or local

7 government addressing expanded housing oppor8 tunity and barrier removal, including implementation

9 of active programs encouraging housing opportuni10 ties for low- and moderate-income families through

11 activities such as comprehensive planning require12 ments, metropolitan fair-share requirements for af13 fordable housing, inclusionary zoning legislation, es14 tablishment of new land development standards, and

15 review of zoning standards and plans.’’;

16 (3) by striking subsection (c) and inserting the

17 following new subsection:

18 ‘‘(c) BARRIER REMOVAL DEMONSTRATION.—The

19 Secretary may make grants to units of general local gov20 ernment to encourage the establishment of partnerships

21 between local governments and builders and developers

22 under which the local government commits to modify exist23 ing land use and building practices and the builder or de24 veloper agrees to use innovative land planning and devel25 opment approaches to build affordable housing in ways
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1 which would overcome regulatory barriers. Assistance

2 under this subsection may be used to assist the builder

3 or developer obtain additional architectural, engineering,

4 and land planning services to build affordable housing and

5 to provide assistance to the locality in providing special6 ized review and in meeting technical responsibilities result7 ing from the removal of the regulatory barriers. During

8 and after completion of these demonstration projects, the

9 Secretary may evaluate the cost impact of the modified

10 regulations and the long-term impact of the project on

11 regulatory reform.’’;

12 (4) by striking subsections (d) through (g) and

13 inserting the following new subsection:

14 ‘‘(d) APPLICATION AND SELECTION.—

15 ‘‘(1) APPLICATION.—The Secretary shall pro16 vide for the form and manner of applications for

17 grants under this section, which in the case of

18 grants under subsection (c), shall include resolutions

19 and other evidence by the applicable regulating bod20 ies evidencing commitments—

21 ‘‘(A) to waive or modify existing applicable

22 zoning, building code, site planning, and other

23 related development requirements;

24 ‘‘(B) to approve the project based upon an

25 individual review of the technical data, site
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1 plans, and architectural submissions of the

2 project, utilizing the most recent research and

3 practices of building engineering and land de4 velopment; and

5 ‘‘(C) to accelerate development review and

6 processing.

7 ‘‘(2) CRITERIA FOR APPROVAL.—The Secretary

8 shall establish criteria for approval of applications

9 under this subsection and for the competitive selec10 tion of grantees under this section.’’;

11 (5) in subsection (h), by striking ‘‘State and

12 unit of general local government receiving’’ and in13 serting ‘‘recipient of’’; and

14 (6) by redesignating subsections (h) and (i) as

15 subsections (e) and (f), respectively.

16 (c) REPORTS.—Section 1207 of the Housing and

17 Community Development Act of 1992 (42 U.S.C. 12705a

18 note) is amended by striking ‘‘this Act’’ and inserting ‘‘the

19 Housing and Community Development Act of 1994’’.

20 (d) CDBG SPECIAL PURPOSE GRANTS.—Section

21 107(b) of the Housing and Community Development Act

22 of 1974 (42 U.S.C. 5307(b)) is amended by inserting at

23 the end the following new paragraph:
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1 ‘‘(9) to eligible grantees, and for other pur2 poses, under the Removal for Regulatory Barriers to

3 Affordable Housing Act of 1992.’’.

4 SEC. 716. NEW TOWNS DEMONSTRATION PROGRAM FOR

5 EMERGENCY RELIEF OF LOS ANGELES.

6 (a) INSURANCE AUTHORITY.—The first sentence of

7 section 1104(d) of the Housing and Community Develop8 ment Act of 1992 (42 U.S.C. 5318 note) is amended to

9 read as follows: ‘‘To the extent provided in appropriation

10 Acts, the Secretary shall use any authority provided pur11 suant to section 531(b) of the National Housing Act to

12 enter into commitments to insure loans and mortgages

13 under this section in fiscal years 1995 and 1996 with an

14 aggregate principal amount not exceeding such sums as

15 may be necessary to carry out the demonstration under

16 this title.’’.

17 (b) SECOND MORTGAGE ASSISTANCE.—Section

18 1105(e) of the Housing and Community Development Act

19 of 1992 (42 U.S.C. 5318 note) is amended to read as fol20 lows:

21 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There

22 are authorized to be appropriated for fiscal years 1995

23 and 1996 such sums as may be necessary for providing

24 assistance under this section.’’.
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1 (c) COMMUNITY DEVELOPMENT ASSISTANCE.—Sec2 tion 1106(h) of the Housing and Community Development

3 Act of 1992 (42 U.S.C. 5318 note) is amended to read

4 as follows:

5 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

6 are authorized to be appropriated for fiscal years 1995

7 and 1996 such sums as may be necessary for assistance

8 under this section.’’.

9 SEC. 717. AUTHORIZATION OF APPROPRIATIONS FOR PUB10 LIC SERVICES FACILITY.

11 (a) AUTHORIZATION OF APPROPRIATIONS.—There

12 are authorized to be appropriated for fiscal year 1995

13 such sums as may be necessary for a grant by the Sec14 retary of Housing and Urban Development to the City of

15 Springfield, Massachusetts (in this section referred to as

16 the ‘‘City’’), for the redevelopment of a facility formerly

17 used as a United States Post Office for use as a consoli18 dated facility for city public services in accordance with

19 the plans, budgets, and timetables for such facility devel20 oped by the City.

21 (b) CITY CONTRIBUTION.—Notwithstanding any

22 other provision of this section, the Secretary may not

23 make any amount provided pursuant to this section avail24 able to the City unless the City contributes for redevelop25 ment of the facility referred to in subsection (a) an
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1 amount constituting not less than 25 percent of the total

2 cost of the redevelopment project.

3 (c) AVAILABILITY OF AMOUNTS.—Of any amounts

4 appropriated pursuant to this section, the Secretary shall

5 provide $2,500,000 to the City in fiscal year 1995 and

6 the remainder shall remain available until the end of fiscal

7 1996 and shall be provided to the City in such year.

8 (d) REPORTS.—The Secretary may require the City

9 to submit such reports and other information as the Sec10 retary considers necessary to ensure that the amounts pro11 vided under this section are used in accordance with this

12 section and that amounts are provided by the City in ac13 cordance with subsection (b).

14 SEC. 718. NATIONAL AMERICAN INDIAN HOUSING COUNCIL.

15 There is authorized to be appropriated for assistance

16 for the National American Indian Housing Council

17 $1,000,000 for fiscal year 1995 and $1,000,000 for fiscal

18 year 1996, for providing training and technical assistance

19 to Indian Housing Authorities.

20 SEC. 719. HOUSING ASSISTANCE COUNCIL.

21 There is authorized to be appropriated for assistance

22 for the Housing Assistance Council $5,000,000 for fiscal

23 year 1995 and $5,000,000 for fiscal year 1996, for provid24 ing training, technical assistance, and financial assistance

25 to develop affordable housing in rural areas.
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1 SEC. 720. DEMONSTRATION PROGRAM FOR OUTREACH TO

2 AVOID DISCONNECTION OF UTILITIES.

3 (a) ACTION OF SECRETARY.—The Secretary of Hous4 ing and Urban Development shall provide technical advice

5 and assistance to Maryland Energy Advocates to establish

6 and carry out a program under (b).

7 (b) OUTREACH PROGRAM.—The program under this

8 subsection shall be a program, carried out by Maryland

9 Energy Advocates, to—

10 (1) identify low-income families living in Balti11 more, Maryland, and the surrounding areas, includ12 ing low-income families residing in housing for which

13 assistance is provided by the Federal Government,

14 whose electricity or other utility services have been

15 disconnected because of failure to pay amounts

16 owed;

17 (2) provide counseling and advice to such fami18 lies regarding utility payments, family budgeting,

19 sources and programs of assistance for utility pay20 ments, and such other matters as may be necessary

21 to avoid the disconnection of utility service in the fu22 ture; and

23 (3) determine the most effective manners of

24 identifying low-income families in need of advice or

25 assistance to avoid disconnection of utility services
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1 and the most effective actions to help low-income

2 families avoid such disconnection.

3 (c) REPORT.—After consultation with Maryland En4 ergy Advocates regarding the implementation and results

5 of the program under subsection (b), but not later than

6 the expiration of the 18-month period beginning on the

7 date of the enactment of this Act, the Secretary of Hous8 ing and Urban Development shall submit a report to the

9 Congress that—

10 (1) describes the program and the activities

11 carried out under the program;

12 (2) describes the extent to which the utility

13 services of low-income families are disconnected; and

14 (3) identifies the most effective manners of

15 identifying low-income families in need of advice or

16 assistance to avoid disconnection of utility services

17 and the most effective actions to help low-income

18 families avoid such disconnection, including any such

19 actions appropriate for the Federal Government.

20 SEC. 721. FEDERAL DEPOSIT INSURANCE CORPORATION

21 AFFORDABLE HOUSING PROGRAM.

22 (a) REAUTHORIZATION.—Section 40(b) of the Fed23 eral Deposit Insurance Act (12 U.S.C. 1831q(b)) is

24 amended—
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1 (1) in paragraph (1), by striking ‘‘during’’ and

2 all that follows through ‘‘paragraph (2)(A)’’ and in3 serting ‘‘until the end of fiscal year 1997’’;

4 (2) in paragraph (2)(A), in the matter preced5 ing clause (i), by striking ‘‘3-year’’; and

6 (3) in paragraph (2)(C), by striking ‘‘3-year’’.

7 (b) FACILITATION OF PROGRAM.—Section 40 of the

8 Federal Deposit Insurance Act is amended by adding at

9 the end the following new subsection:

10 ‘‘(r) FACILITATION OF PROGRAM.—Notwithstanding

11 any provision of this section or any other provision of law,

12 the Corporation shall be considered to be in compliance

13 with this section if (in the sole discretion of the Corpora14 tion) the Corporation at any time modifies, amends, or

15 waives any provisions of this section to maximize the effi16 cient use of amounts appropriated to carry out this sec17 tion. The Corporation shall not be subject to suit for any

18 failure to comply with the requirements of this section.’’.

19 SEC. 722. STATE AGENCIES AS SURETIES.

20 Section 9304 of title 31, United States Code, is

21 amended by adding at the end the following new sub22 section:

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

24 any financing authority established by any State, which

25 meets the requirements of paragraphs (2) and (3) of sub-
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1 section (a) may be treated as a surety corporation for pur2 poses of this chapter. Notwithstanding any other provision

3 of law, user fees collected by the Financial Management

4 Services incident to sections 9304 through 9309 of this

5 title shall be credited to the appropriation of that agency

6 and may be retained without fiscal year limitation to carry

7 out the provisions of such sections.’’.

8 SEC. 723. INSURED COMMUNITY DEVELOPMENT FINANCIAL

9 INSTITUTION ACCESS TO FEDERAL HOME

10 LOAN BANK ADVANCES.

11 (a) IN GENERAL.—Section 10 of the Federal Home

12 Loan Bank Act (12 U.S.C. 1430) is amended by adding

13 at the end the following new subsection:

14 ‘‘(k) COMMUNITY DEVELOPMENT FINANCIAL INSTI15 TUTION ACCESS TO ADVANCES.—Any insured community

16 development financial institution (as defined in section

17 3(e) of the Community Development Banking and Finan18 cial Institutions Act of 1993) which meets the require19 ments of subparagraphs (A) and (B) of section 4(a)(1)

20 may obtain advances from the appropriate Federal home

21 loan bank in accordance with this section in the same

22 manner and to the same extent as members of such bank

23 without regard to any stock purchase requirement imposed

24 on members under this Act.’’.

25 (b) INCREASE IN LENDING CAP.—
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1 (1) IN GENERAL.—Paragraph (2) of the 1st

2 subsection (e) of section 10 of the Federal Home

3 Loan Bank Act (12 U.S.C. 1430(e)(2)) is amended

4 by striking ‘‘30 percent’’ and inserting ‘‘40 per5 cent’’.

6 (2) EFFECTIVE DATE.—The amendment made

7 by paragraph (1) shall apply after October 1, 1995.

8 SEC. 724. PURCHASE OF AMERICAN-MADE EQUIPMENT AND

9 PRODUCTS.

10 (a) IN GENERAL.—It is the sense of the Congress

11 that, to the greatest extent practicable, all equipment and

12 products purchased with amounts made available under

13 this Act should be American-made.

14 (b) NOTICE REQUIREMENT.—In providing financial

15 assistance to, or entering into any contract with, any en16 tity using amounts made available under this Act, the

17 head of each Federal agency shall, to the greatest extent

18 practicable, provide to such entity a notice describing the

19 statement of the sense of the Congress under subsection

20 (a).
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1 TITLE VIII—HOUSING PRO2 GRAMS UNDER STEWART B.

3 MCKINNEY HOMELESS AS4 SISTANCE ACT

5 SEC. 801. SHORT TITLE.

6 This title may be cited as the ‘‘Stewart B. McKinney

7 Homeless Housing Assistance Amendments Act of 1994’’.

8 Subtitle A—Housing Assistance

9 CHAPTER 1—REORGANIZATION OF CER10 TAIN MCKINNEY ACT HOUSING PROVI11 SIONS

12 SEC. 811. FLEXIBLE GRANT PROGRAM.

13 Title IV of the Stewart B. McKinney Homeless As14 sistance Act (42 U.S.C. 11361 et seq.) is amended—

15 (1) by striking subtitles A, B, C, D, and F;

16 (2) by striking the headings for subtitles E and

17 G;

18 (3) by redesignating sections 441 (as amended

19 by the preceding provisions of this Act), 491, and

20 592 (as added by section 1414 of the Housing and

21 Community Development Act of 1992) as sections

22 451, 453, and 454, respectively;

23 (4) by striking sections 442 and 443; and

24 (5) by inserting after the heading for the title

25 the following:
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1 ‘‘Subtitle A—Flexible Grant

2 Program

3 ‘‘CHAPTER 1—GENERAL PROVISIONS

4 ‘‘SEC. 401. PURPOSES.

5 ‘‘The purposes of this subtitle are to—

6 ‘‘(1) expand and reorganize the Federal com7 mitment to alleviate homelessness by providing

8 States, Indian tribes, and localities with the re9 sources to more efficiently and effectively design a

10 comprehensive system to address the shelter, service,

11 and permanent housing needs of homeless individ12 uals and families in the United States;

13 ‘‘(2) help very low-income families avoid becom14 ing homeless;

15 ‘‘(3) meet the emergency shelter needs of home16 less persons and families;

17 ‘‘(4) provide transitional or specialized perma18 nent housing to facilitate the movement of homeless

19 persons and families to independent living;

20 ‘‘(5) provide supportive services to help home21 less persons and families lead independent and dig22 nified lives;

23 ‘‘(6) encourage the cooperation and participa24 tion of the States and units of general local govern25 ment, together with private nonprofit organizations,
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1 in planning and implementing comprehensive home2 less assistance programs;

3 ‘‘(7) reduce the costs to States, units of general

4 local government, and private nonprofit organiza5 tions in applying for and using Federal housing as6 sistance for families and persons who are homeless;

7 and

8 ‘‘(8) begin meeting the needs of most of the

9 Nation’s homeless population through the existing

10 Federal programs providing basic assistance for low11 income families and persons.

12 ‘‘SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

13 ‘‘There are authorized to be appropriated—

14 ‘‘(1) $735,000,000 for fiscal year 1995 for

15 grants in accordance with section 812(b) of the

16 Housing and Community Development Act of 1994;

17 and

18 ‘‘(2) $925,000,000 for fiscal year 1996 for

19 grants under this subtitle.

20 Any amounts appropriated pursuant to this section shall

21 remain available until expended.

22 ‘‘SEC. 403. DEFINITIONS.

23 ‘‘For purposes of this subtitle, the following defini24 tions shall apply:
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1 ‘‘(1) The term ‘allocation unit of general local

2 government’ means a metropolitan city and an

3 urban county.

4 ‘‘(2) The term ‘applicant’ means an eligible

5 grantee that submits an application under section

6 408 for a grant under this subtitle.

7 ‘‘(3) The term ‘disability’ means—

8 ‘‘(A) a disability as defined in section 223

9 of the Social Security Act;

10 ‘‘(B) to be determined to have, pursuant to

11 regulations issued by the Secretary, a physical,

12 mental, or emotional impairment which (i) is

13 expected to be a long-continued and indefinite

14 duration, (ii) substantially impedes an individ15 ual’s ability to live independently, and (iii) of

16 such a nature that such ability could be im17 proved by more suitable housing conditions;

18 ‘‘(C) a developmental disability as defined

19 in section 102 of the Developmental Disabilities

20 Assistance and Bill of Rights Act; or

21 ‘‘(D) the disease of acquired

22 immunodeficiency syndrome or any conditions

23 arising from the etiologic agency for acquired

24 immunodeficiency syndrome.
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1 Subparagraph (D) shall not be construed to limit eli2 gibility under subparagraphs (A) through (C) or the

3 provisions referred to in subparagraphs (A) through

4 (C).

5 ‘‘(4) The term ‘eligible grantee’ means—

6 ‘‘(A) an allocation unit of general local

7 government, Indian Tribe, or insular area, or a

8 consortium of such entities, that elects to ad9 minister a grant under section 410(a)(1);

10 ‘‘(B) a public agency or a private nonprofit

11 organization (or a consortium of such organiza12 tions) designated by the Secretary under section

13 410(a)(3) to administer grant amounts for an

14 allocation unit of general local government, In15 dian tribe, or insular area;

16 ‘‘(C) an entity eligible to receive grant

17 amounts from the Secretary under section

18 410(a)(4);

19 ‘‘(D) a State that elects under section

20 410(b)(1)(A) to administer a grant;

21 ‘‘(E) a unit of general local government se22 lected under section 410(b)(5) to receive grant

23 amounts from the Secretary; and
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1 ‘‘(F) a private nonprofit organization se2 lected under section 410(b)(4) to receive grant

3 amounts from the Secretary.

4 ‘‘(5) The term ‘families’ has the same meaning

5 given the term under section 3(b) of the United

6 States Housing Act of 1937.

7 ‘‘(6) The term ‘grantee’ means—

8 ‘‘(A) an allocation unit of general local

9 government, Indian tribe, or insular area, or a

10 consortium of such entities, that receives a

11 grant under this subtitle and administers the

12 grant under section 410(a)(1);

13 ‘‘(B) an allocation unit of general local

14 government, Indian tribe, or insular area that

15 receives a grant under this subtitle and des16 ignates a public agency or private nonprofit or17 ganization (or a consortium of such organiza18 tions) to administer grant amounts for the ju19 risdiction under section 410(a)(2);

20 ‘‘(C) a public agency or a private nonprofit

21 organization (or a consortium or such organiza22 tions) designated by the Secretary under section

23 410(a)(3) to administer grant amounts for an

24 allocation unit of general local government, In-
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1 dian tribe, or insular area, and that receives

2 grant amounts under this subtitle;

3 ‘‘(D) an entity that receives grant amounts

4 from the Secretary under section 410(a)(4);

5 ‘‘(E) a State that receives grant amounts

6 under this subtitle and administers such

7 amounts under section 410(b)(1)(A);

8 ‘‘(F) a unit of general local government

9 that receives grant amounts from the Secretary

10 under section 410(b)(5); and

11 ‘‘(G) a private nonprofit organization that

12 receives grant amounts from the Secretary

13 under section 410(b)(4).

14 ‘‘(7) The term ‘homeless family’ means a group

15 of one or more related individuals who are homeless

16 individuals.

17 ‘‘(8) The term ‘Indian tribe’ means any Indian

18 tribe, band, group, and nation, including Alaska In19 dians, Aleuts, and Eskimos, and any Alaskan Native

20 Village, of the United States, which is considered an

21 eligible recipient under the Indian Self-Determina22 tion and Education Assistance Act or was considered

23 an eligible recipient under chapter 67 of title 31,

24 United States Code, before the repeal of such

25 chapter.
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1 ‘‘(9) The term ‘insular area’ means the Virgin

2 Islands, Guam, American Samoa, and the Common3 wealth of the Northern Mariana Islands.

4 ‘‘(10) The term ‘low-demand services and refer5 rals’ means the provision of health care, mental

6 health, substance abuse, and other supportive serv7 ices and referrals for services in a noncoercive man8 ner, which may include medication management,

9 education, counseling, job training, and assistance in

10 obtaining entitlement benefits and in obtaining other

11 supportive service including mental health treatment

12 and substance abuse treatment.

13 ‘‘(11) The term ‘metropolitan city’ has the

14 meaning given the term in section 102(a) of the

15 Housing and Community Development Act of 1974.

16 ‘‘(12) The term ‘operating costs’ means ex17 penses of operating any housing assisted under this

18 subtitle with respect to—

19 ‘‘(A) the administration, maintenance, re20 pair, and security of such housing;

21 ‘‘(B) utilities, fuels, furnishings, and equip22 ment for such housing; and

23 ‘‘(C) the conducting of the assessments of

24 and the provision of supportive services to the

25 residents of such housing.
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1 ‘‘(13) The term ‘outpatient health services’

2 means outpatient health care, outpatient mental

3 health services, outpatient substance abuse services,

4 case management services and child immunization.

5 ‘‘(14) The term ‘private nonprofit organization’

6 means an organization—

7 ‘‘(A) no part of the net earnings of which

8 inures to the benefit of any member, founder,

9 contributor, or individual;

10 ‘‘(B) that has a voluntary board;

11 ‘‘(C) that has an accounting system or has

12 designated a fiscal agent in accordance with re13 quirements established by the Secretary; and

14 ‘‘(D) that practices nondiscrimination in

15 the provision of assistance.

16 ‘‘(15) The term ‘project’ means a structure or

17 a portion of a structure that is acquired or rehabili18 tated with assistance provided under this subtitle or

19 with respect to which the Secretary provides tech20 nical assistance or annual payments for operation

21 costs.

22 ‘‘(16) The term ‘project sponsor’ means an en23 tity that—

24 ‘‘(A) provides housing or assistance for

25 homeless individuals or families by carrying out
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1 eligible activities under chapter 2 that are as2 sisted under this subtitle; and

3 ‘‘(B) meets such minimum standards as

4 the Secretary considers appropriate.

5 ‘‘(17) The term ‘recipient’ means a grantee

6 (other than a State distributing grant amounts to

7 State recipients) and a State recipient.

8 ‘‘(18) The term ‘Secretary’ means the Secretary

9 of Housing and Urban Development.

10 ‘‘(19) The term ‘State’ means a State of the

11 United States and the Commonwealth of Puerto

12 Rico, or any agency or instrumentality thereof that

13 is established pursuant to legislation and designated

14 by the chief executive to act on behalf of the juris15 diction with regard to provisions of this subtitle.

16 ‘‘(20) The term ‘State recipient’ means—

17 ‘‘(A) a unit of general local government

18 within a State (other than an allocation unit of

19 general local government) that receives grant

20 amounts from the State under section

21 410(b)(3); and

22 ‘‘(B) a private nonprofit organization that

23 receives grant amounts from a State under sec24 tion 410(b)(4).
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1 ‘‘(21)(A) The term ‘supportive services’ means

2 assistance that—

3 ‘‘(i) addresses the special needs of home4 less person, such as deinstitutionalized persons,

5 families with children, persons with mental dis6 abilities, other persons with disabilities, the el7 derly, and veterans intended to be served by a

8 project; and

9 ‘‘(ii) assists in accomplishing the purposes

10 of the different types of housing for the home11 less eligible for assistance under this subtitle.

12 ‘‘(B) Such term includes—

13 ‘‘(i) food services, child care, substance

14 abuse treatment, assistance in obtaining perma15 nent housing, outpatient health services, em16 ployment counseling, nutritional counseling, se17 curity arrangements for the protection of resi18 dents of facilities to assist the homeless, and

19 such other services essential for maintaining or

20 moving toward independent living as the Sec21 retary determines to be appropriate; and

22 ‘‘(ii) assistance to homeless persons in ob23 taining other Federal, State, and local assist24 ance available for such individuals, including

25 public assistance benefits, mental health bene-
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1 fits, employment counseling, and medical assist2 ance.

3 ‘‘(C) Such term does not include the provi4 sion of major medical equipment.

5 ‘‘(D) All or part of the supportive services

6 may be provided directly by the project sponsor

7 or by arrangements with other public or private

8 service providers.

9 ‘‘(22) The term ‘unit of general local govern10 ment’ means—

11 ‘‘(A) a city, town, township, county, parish,

12 village, or other general purpose political sub13 division of a State;

14 ‘‘(B) the District of Columbia; and

15 ‘‘(C) any agency or instrumentality thereof

16 that is established pursuant to legislation and

17 designated by the chief executive to act on be18 half of the jurisdiction with regard to provisions

19 of this subtitle.

20 The term includes a consortium of geographically

21 contiguous units of general local government if the

22 Secretary determines that the consortium—

23 ‘‘(i) has sufficient authority and adminis24 trative capability to carry out the purposes of
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1 this subtitle on behalf of its member jurisdic2 tions; and

3 ‘‘(ii) will, according to a written certifi4 cation by the State (or State, if the consortium

5 includes jurisdictions in more than one State),

6 direct its activities to alleviation of problems of

7 homeless individuals or families within the

8 State or States.

9 ‘‘(23) The term ‘urban county’ has the meaning

10 given the term in section 102(a) of the Housing and

11 Community Development Act of 1974.

12 ‘‘(24) The term ‘very low-income families’ has

13 the same meaning given the term under section 104

14 of the Cranston-Gonzalez National Affordable Hous15 ing Act.

16 ‘‘SEC. 404. PROVISION OF GRANTS.

17 ‘‘(a) AUTHORITY AND USE.—The Secretary may

18 make grants to eligible grantees in accordance with the

19 provisions of this subtitle. Grants under this subtitle may

20 be used only—

21 ‘‘(1) to carry out activities under chapter 2 for

22 assisting homeless individuals and families that are

23 conducted to provide comprehensive homeless assist24 ance required under section 405; and
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1 ‘‘(2) for administrative expenses, to the extent

2 provided in section 436.

3 ‘‘(b) GENERAL RULE FOR AWARD OF GRANTS.—Ex4 cept as provided in subsection (c), the Secretary shall

5 make grants using amounts appropriated under section

6 402 in the manner provided in this subtitle.

7 ‘‘(c) INSUFFICIENT APPROPRIATIONS.—

8 ‘‘(1) TRIGGER.—If the amounts appropriated

9 pursuant to section 402 for any fiscal year are less

10 than 50 percent of the amount authorized to be ap11 propriated under such section for the year, the Sec12 retary shall use such amounts to make grants under

13 the provisions of this title as in effect immediately

14 before the enactment of the Housing and Commu15 nity Development Act of 1994.

16 ‘‘(2) GRANT REQUIREMENTS.—The Secretary

17 shall establish requirements for grants made under

18 this subsection, as the Secretary considers appro19 priate, that are additional or alternative to the re20 quirements under the provisions of this title as in ef21 fect immediately before the enactment of the Hous22 ing and Community Development Act of 1994.

23 ‘‘(3) GRANT CRITERIA.—The criteria for award24 ing grants under this subsection shall include—
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1 ‘‘(A) the extent to which there is a need

2 for assistance for homeless individuals and fam3 ilies in the jurisdiction in which the grant will

4 be used;

5 ‘‘(B) the extent to which the activities pro6 posed to be carried out with grant amounts will

7 further the provision of comprehensive homeless

8 assistance required under section 405(b)(1);

9 ‘‘(C) the extent to which private nonprofit

10 organizations providing assistance to homeless

11 individuals and families in the jurisdiction have

12 been, and will be, included in planning for the

13 receipt of assistance under this subtitle, the de14 velopment of the application under section 408,

15 and the execution of the proposed activities;

16 and

17 ‘‘(D) such other criteria as the Secretary

18 considers appropriate to further the purposes of

19 this subsection and this subtitle.

20 ‘‘(4) SET ASIDE FOR INDIAN TRIBES AND INSU21 LAR AREAS.—In making grants under this sub22 section, the Secretary may to set aside such amounts

23 as the Secretary considers appropriate for grants for

24 Indian tribes and insular areas.
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1 ‘‘SEC. 405. COMPREHENSIVE HOMELESS ASSISTANCE.

2 ‘‘(a) ESTABLISHMENT AND MAINTENANCE.—Each

3 applicant shall, based on information provided in the cur4 rent comprehensive affordable housing strategy for the ap5 propriate jurisdiction under section 105 of the Cranston6 Gonzalez National Affordable Housing Act or such other

7 plan as the Secretary may prescribe, use assistance pro8 vided under this subtitle in a manner that ensures that

9 comprehensive homeless assistance is established and

10 maintained within the jurisdiction of the applicant.

11 ‘‘(b) REQUIREMENTS.—For purposes of this subtitle,

12 comprehensive homeless assistance required under this

13 section shall include—

14 ‘‘(1) providing a system of outreach and assess15 ment for—

16 ‘‘(A) determining whether an individual or

17 family is homeless, needs assistance to avoid

18 being homeless, or needs other assistance; and

19 ‘‘(B) ensuring that individuals and families

20 so identified receive appropriate housing and

21 supportive services;

22 ‘‘(2) providing assistance to the extent nec23 essary to avoid eviction (or foreclosure) and termi24 nation of utility services of low- and very low-income

25 families to prevent such families from becoming

26 homeless;
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1 ‘‘(3) making emergency shelters with appro2 priate supportive services available to the extent nec3 essary to ensure that homeless individuals and fami4 lies for which such housing is appropriate receive

5 adequate shelter, including during any period in

6 which an assessment referred to in paragraph (1) is

7 performed for such an individual or family;

8 ‘‘(4) making transitional housing with appro9 priate supportive services available to the extent nec10 essary to ensure that homeless individuals and fami11 lies for which such housing is appropriate are pre12 pared for increased responsibility and permanent

13 housing, or permanent supportive housing, after the

14 transition period;

15 ‘‘(5) making permanent supportive housing,

16 available to the extent necessary to meet the long17 term housing needs of all homeless individuals and

18 families;

19 ‘‘(6) providing assistance to meet specific needs

20 of various subpopulations of the homeless, especially

21 the unique needs of homeless veterans; and

22 ‘‘(7) providing for coordination of assistance

23 provided under this subtitle and assistance provided

24 under other Federal, State, and local programs that
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1 may be used to assist homeless individuals and fami2 lies, including—

3 ‘‘(A) assistance under the programs for

4 public and Indian housing and section 8 rental

5 assistance under the United States Housing Act

6 of 1937 (including the program for section 8

7 assistance for moderate rehabilitation under

8 section 451 of this Act and the shelter plus care

9 program for such assistance under section 452

10 of this Act), the HOME Investment Partner11 ships Act, the community development block

12 grant program under title I of the Housing and

13 Community Development Act of 1974, the pro14 gram for supportive housing for the elderly

15 under section 202 of the Housing Act of 1959,

16 the program for supportive housing for persons

17 with disabilities under section 811 of the Cran18 ston-Gonzalez National Affordable Housing Act,

19 and the program for housing opportunities for

20 persons with AIDS under subtitle D of title

21 VIII of the Cranston-Gonzalez National Afford22 able Housing Act;

23 ‘‘(B) programs administered by the Direc24 tor of the Federal Emergency Management

25 Agency;
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1 ‘‘(C) programs administered by the Sec2 retary of Labor, including programs for employ3 ment and training;

4 ‘‘(D) programs administered by the Sec5 retary of Health and Human Services, including

6 programs for health care, mental health care,

7 social services, income support services, run8 away youth, and unfit transient facilities;

9 ‘‘(E) programs administered by the Sec10 retary of Veterans Affairs (including programs

11 for compensation benefits, health care, and

12 mental health care, and other services and pro13 grams) that are specifically designed to assist

14 homeless veterans;

15 ‘‘(F) programs administered by the Sec16 retary of Education, including programs for

17 adult education and education for homeless

18 children and youth;

19 ‘‘(G) programs administered by the Cor20 poration for National and Community Service,

21 including programs for national service; and

22 ‘‘(H) such other assistance as the Sec23 retary shall prescribe upon consultation with

24 the Interagency Council on the Homeless.
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1 ‘‘SEC. 406. MATCHING REQUIREMENTS.

2 ‘‘(a) IN GENERAL.—Except as provided in subsection

3 (c), each recipient shall supplement the amount of grants

4 provided under this subtitle to the recipient with an equal

5 amount of funds from non-Federal sources, which shall

6 include funds from project sponsors receiving assistance

7 from the recipient.

8 ‘‘(b) SUPPLEMENTAL FUNDS.—Supplemental funds

9 may include (1) the value of any donated material or

10 building, the value of any lease on a building, (2) any sal11 ary paid to staff to carry out the program of a project

12 sponsor, (3) the value of the time and services contributed

13 by volunteers to carry out the program of project sponsor

14 at a rate determined by the Secretary, and (4) the pro15 ceeds from bond financing validly issued by a State or unit

16 of general local government, agency, or instrumentality

17 thereof, and repayable with revenues derived from a

18 project assisted under this subtitle, except that not more

19 than 25 percent of the contribution required may be de20 rived from the proceeds of such bond financings. Any

21 State or local government funds used independently from

22 the program under this title, or designated for such use,

23 to assist the homeless by carrying out activities that would

24 be eligible for assistance under this subtitle shall be con25 sidered supplemental funds under this section.

26 ‘‘(c) STATES.—
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1 ‘‘(1) REQUIRED SUPPLEMENTATION.—Except

2 as provided in paragraph (3), in the case of a State

3 administering grant amounts under section

4 410(b)(1)(A), in each fiscal year, the State shall

5 supplement the amount of grants provided under

6 this subtitle with an amount of funds from sources

7 other than this subtitle equal to the difference be8 tween the amount received under this subtitle and

9 $100,000.

10 ‘‘(2) BENEFIT OF MATCH.—Each grantee that

11 is a State shall obtain any supplemental amounts re12 quired under paragraph (1) from State recipients re13 ceiving amounts under the grant in a manner so

14 that the benefit of the $100,000 subtrahend under

15 paragraph (1) is appropriately divided among State

16 recipients for which providing such supplemental

17 amounts would—

18 ‘‘(A) create a significant hardship for the

19 recipient; or

20 ‘‘(B) interfere with the overall purpose of

21 the homeless assistance program of the recipi22 ent.

23 ‘‘(3) EXCEPTION.—If, in any fiscal year, a

24 State receives $100,000 or less in grant amounts
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1 under this subtitle, paragraph (1) shall not apply to

2 the State for the fiscal year.

3 ‘‘(d) PROHIBITION OF SUBSTITUTION OF FUNDS.—

4 Assistance provided under this subtitle may not be used

5 to replace other public funds previously used, or des6 ignated for use, to assist persons who are homeless.

7 ‘‘(e) CERTIFICATION.—Each recipient shall certify, to

8 the satisfaction of the Secretary, its compliance with the

9 provisions of this section, which shall describe the sources

10 and amounts of supplemental funds provided pursuant to

11 this section.

12 ‘‘SEC. 407. RESPONSIBILITIES OF RECIPIENTS AND

13 PROJECT SPONSORS.

14 ‘‘(a) USE OF ASSISTANCE THROUGH PRIVATE NON15 PROFIT ORGANIZATIONS.—Each recipient shall make

16 available more than 50 percent of the grant amounts it

17 receives for any fiscal year to project sponsors that are

18 private nonprofit organizations to carry out eligible activi19 ties under chapter 2, except that the Secretary may waive

20 the applicability of this requirement if the recipient dem21 onstrates to the Secretary that the requirement interferes

22 with the ability of the recipient to provide assistance under

23 this subtitle because of a paucity of qualified private non24 profit organizations in the jurisdiction of the recipient.
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1 ‘‘(b) HOUSING QUALITY.—Each recipient shall en2 sure that housing assisted with grant amounts provided

3 under this subtitle is decent, safe, and sanitary and, when

4 appropriate, complies with all applicable State and local

5 housing codes, building codes, and licensing requirements

6 in the jurisdiction in which the housing is located.

7 ‘‘(c) PREVENTION OF UNDUE BENEFIT.—The Sec8 retary may prescribe such terms and conditions as the

9 Secretary considers necessary to prevent project sponsors

10 from unduly benefiting from the sale or other disposition

11 of projects other than a sale or other disposition resulting

12 in the use of the project for the direct benefit of very low13 income families.

14 ‘‘(d) CONFIDENTIALITY.—Each recipient shall de15 velop and implement procedures to ensure the confiden16 tiality of records pertaining to any individual provided

17 family violence prevention or treatment services under any

18 project and to ensure that the address or location or any

19 family violence shelter project assisted with grant amounts

20 under this subtitle will, except with written authorization

21 of the person or person responsible for the operation of

22 such shelter, not be made public.

23 ‘‘(e) EMPLOYMENT OF HOMELESS INDIVIDUALS.—

24 To the maximum extent practicable, the Secretary shall

25 ensure that recipients involve, through employment, volun-
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1 teer services, or otherwise, homeless individuals and fami2 lies in constructing, renovating, maintaining, and operat3 ing facilities assisted with grant amounts under this sub4 title, in providing services so assisted, and in providing

5 services for occupants of facilities so assisted.

6 ‘‘(f) PARTICIPATION OF HOMELESS INDIVIDUALS.—

7 The Secretary shall, by regulation, provide that each recip8 ient shall require each project sponsor receiving assistance

9 under this subtitle from the recipient to provide for the

10 participation of not less than one homeless individual or

11 formerly homeless individual on the board of directors or

12 other equivalent policy making entity of the project spon13 sor, to the extent that such entity considers and makes

14 policies and decision regarding any project, facility, serv15 ices, or other activities assisted with grant amounts under

16 this subtitle. A recipient may grant waivers to project

17 sponsors unable to meet the requirement under the pre18 ceding sentence if the project sponsor agrees to otherwise

19 consult with homeless or formerly homeless individuals in

20 considering and making such policies and decisions.

21 ‘‘SEC. 408. APPLICATION.

22 ‘‘(a) REQUIREMENT.—Except as otherwise provided

23 in section 404(c), the Secretary may make a grant under

24 this subtitle only to an eligible grantee that submits an
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1 application under this section that is approved by the Sec2 retary.

3 ‘‘(b) FORM AND PROCEDURE.—Applications shall be

4 submitted in such form and in accordance with such proce5 dures as the Secretary shall, by regulation, establish.

6 ‘‘(c) CONTENT.—An application under this section

7 shall—

8 ‘‘(1) include a detailed description, based on in9 formation provided in the current comprehensive

10 housing affordability strategy under section 105 of

11 the Cranston-Gonzalez National Affordable Housing

12 Act for the appropriate jurisdiction or such other

13 plan as the Secretary may prescribe, of—

14 ‘‘(A) the existing population of homeless

15 individuals and families for the jurisdiction of

16 the applicant; and

17 ‘‘(B) the existing facilities and services de18 signed to assist such population;

19 ‘‘(2) include a detailed description of the com20 prehensive homeless assistance under section 405 to

21 be established and maintained within the jurisdiction

22 of the applicant;

23 ‘‘(3) provide an assessment of what is required

24 to establish and maintain the provision of com-
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1 prehensive homeless assistance required under sec2 tion 405 for the jurisdiction of the applicant;

3 ‘‘(4) set forth a multiyear strategy for estab4 lishing and maintaining the provision of comprehen5 sive homeless assistance for the jurisdiction, as de6 scribed pursuant to paragraph (2), and include time7 tables, goals, and budget estimates for accomplishing

8 each element of the strategy;

9 ‘‘(5) set forth a 1-year action plan that identi10 fies all activities to be carried out with assistance

11 under this subtitle and demonstrates how such ac12 tivities will further the strategy set forth pursuant to

13 paragraph (4);

14 ‘‘(6) except in the case of an application by a

15 State that elects under section 410(b)(1)(A) to ad16 minister grants under this subtitle, describe the

17 means the applicant will use to distribute grant

18 amounts to project sponsors and whether such

19 amounts will be awarded on a competitive or non20 competitive basis;

21 ‘‘(7) contain certifications or other such forms

22 of proof of commitments of financial and other re23 sources from each public agency or private nonprofit

24 organization that has a role in establishing and

25 maintaining the provision of comprehensive homeless
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1 assistance for the jurisdiction of the applicant, re2 quired under section 405;

3 ‘‘(8) contain assurances satisfactory to the Sec4 retary that activities carried out under chapter 2

5 with grant amounts under this subtitle will comply

6 with the requirements of this subtitle;

7 ‘‘(9) in the case of an application by a State

8 that elects to under section 410(b)(1)(A) administer

9 grants under this subtitle, describe the method of

10 distribution of such amounts to State recipients;

11 ‘‘(10) except with respect to an application by

12 a State that elects to under section 410(b)(1)(A) to

13 administer grants under this subtitle, contain a cer14 tification from the public official responsible for sub15 mitting the comprehensive housing affordability

16 strategy under section 105 of the Cranston-Gonzalez

17 National Affordable Housing Act for the State or

18 unit of general local government within which a

19 project is to be located (or such other plan as the

20 Secretary may require) that the proposed project is

21 consistent with the approved housing strategy of

22 such State or unit of general local government;

23 ‘‘(11) contain a certification that the applicant

24 will comply with the requirements of the Fair Hous25 ing Act, title VI of the Civil Rights Act of 1964, sec-
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1 tion 504 of the Rehabilitation Act of 1973, and the

2 Age Discrimination Act of 1975, and will affirma3 tively further fair housing; and

4 ‘‘(12) contain a certification that the applicant

5 will comply with the requirements of this subtitle

6 and other applicable laws.

7 ‘‘(d) RELATIONSHIP TO CHAS AND CONSOLIDATED

8 PLAN.—In establishing requirements for applications

9 under this section, the Secretary shall provide that if an

10 applicant includes in the application information also re11 quired under the comprehensive housing affordability

12 strategy for the appropriate jurisdiction under section 105

13 of the Cranston-Gonzalez National Affordable Housing

14 Act or such other plan as the Secretary may require, the

15 requirements under such subsection regarding such infor16 mation shall be considered to be fulfilled by the submission

17 of the application.

18 ‘‘SEC. 409. ALLOCATION AND DISTRIBUTION OF FUNDS.

19 ‘‘(a) INSULAR AREAS.—In each fiscal year, from any

20 amounts appropriated for such year to carry out this sub21 title, the Secretary shall allocate amounts to insular areas

22 in accordance with an allocation formula established by

23 the Secretary.

24 ‘‘(b) STATES AND ALLOCATION UNITS OF GENERAL

25 LOCAL GOVERNMENT.—
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1 ‘‘(1) FORMULA ALLOCATION.—

2 ‘‘(A) IN GENERAL.—For each fiscal year,

3 of the amounts that remain after amounts are

4 reserved for insular areas under subsection (a),

5 the Secretary shall allocate assistance according

6 to this paragraph.

7 ‘‘(B) FORMULA.—The Secretary shall allo8 cate amounts under this paragraph using a for9 mula established by the Secretary that allocates

10 amounts for allocation units of general local

11 government and States, and for Indian tribes,

12 in a manner that provides that the percentage

13 of the total amount referred to in subparagraph

14 (A) for any fiscal year that is allocated for any

15 State or allocation unit of general local govern16 ment, or for Indian tribes, is equal to the per17 centage of the total amount available for section

18 106 of the Housing and Community Develop19 ment Act of 1974 for the prior fiscal year that

20 was allocated for such State or allocation unit

21 of general local government, or for Indian

22 tribes.

23 ‘‘(C) MINIMUM AMOUNT.—If, in any fiscal

24 year, allocation under the provisions of subpara25 graphs (A) and (B) would result in any alloca-
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1 tion unit of general local government receiving

2 a grant of less than 0.05 percent of the

3 amounts appropriated to carry out this subtitle

4 for the fiscal year, such amount shall instead be

5 reallocated to the State for use under section

6 410(b).

7 ‘‘(D) 70 PERCENT FOR UNITS OF GENERAL

8 LOCAL GOVERNMENT.—In each fiscal year, the

9 amount allocated under this paragraph for each

10 allocation unit of general local government shall

11 be the amount that results from increasing all

12 of the amounts determined pursuant to the pre13 ceding subparagraphs for allocation units of

14 general local government on a pro rata basis so

15 that the sum of such amounts is equal to 70

16 percent of the remainder of the amount appro17 priated for the year to carry out this subtitle

18 after amounts are allocated for insular areas

19 under subsection (a).

20 ‘‘(E) 30 PERCENT FOR STATES.—In each

21 fiscal year, the amount allocated under this

22 paragraph for each State shall be the amount

23 that results from decreasing all of the amounts

24 determined pursuant to the preceding subpara25 graphs for States on a pro rata basis so that
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1 the sum of such amounts is equal to 30 percent

2 of the remainder of the amount appropriated

3 for the year to carry out this subtitle after

4 amounts are allocated for insular areas under

5 subsection (a).

6 ‘‘(2) GRANT AMOUNT FOR STATES AND ALLO7 CATION UNITS OF GENERAL LOCAL GOVERNMENT.—

8 ‘‘(A) IN GENERAL.—The amount allocated

9 for a fiscal year under paragraph (1) for an al10 location unit of general local government or a

11 State shall be the maximum amount that the

12 allocation unit or State may receive under this

13 subtitle for the fiscal year.

14 ‘‘(B) REDUCTION.—In any fiscal year, the

15 Secretary may provide a grant under this sub16 title for a State or for an allocation unit of gen17 eral local government in an amount less than

18 the amount allocated under paragraph (1), if

19 the Secretary determines based upon review of

20 the application of the jurisdiction under section

21 408 or as a result of the annual performance

22 review and audit under section 413, that the ju23 risdiction has failed to comply fully with the re24 quirements under section 408 or 411 or that

25 such action is otherwise appropriate.
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1 ‘‘(3) MINIMUM STATE ALLOCATION.—Notwith2 standing paragraph (2), if, in allocating amounts for

3 States under paragraph (1) for any fiscal year, the

4 amount allocated for the year for a State is less

5 than $2,000,000, the allocation for the State shall

6 instead be $2,000,000 and the increase shall be de7 ducted pro rata from the allocations of other States.

8 ‘‘(c) REALLOCATIONS.—Any amounts that a State or

9 an allocation unit of general local government is eligible

10 to receive for a fiscal year under subsection (b) that are

11 not received for use in the jurisdiction, as provided by sub12 sections (a) and (b) of section 410, or that become avail13 able as a result of actions under section 413(b), shall be

14 added to amounts available for allocation under this sec15 tion for the succeeding fiscal year.

16 ‘‘SEC. 410. ADMINISTRATION OF PROGRAM.

17 ‘‘(a) GRANTS TO ALLOCATION UNITS OF GENERAL

18 LOCAL GOVERNMENT, INDIAN TRIBES, AND INSULAR

19 AREAS.—

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graphs (2), (3), and (4), an allocation unit of gen22 eral local government, Indian tribe, or insular area

23 shall administer grant amounts for any fiscal year

24 received under section 409 by such grantees.
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1 ‘‘(2) ADMINISTRATION BY DESIGNEES OF JU2 RISDICTION.—

3 ‘‘(A) AUTHORITY TO ELECT.—An alloca4 tion unit of general local government, Indian

5 tribe, or insular area may elect for any fiscal

6 year to designate a public agency or a private

7 nonprofit organization (or a consortium of such

8 organizations) to administer grant amounts

9 under section 409 for the jurisdiction.

10 ‘‘(B) ELECTION REQUIREMENTS.—The

11 Secretary shall prescribe the manner and time

12 for making an election under subparagraph (A),

13 and shall establish criteria for the approval of

14 agencies and organizations designated, which

15 shall require such agencies and organizations to

16 demonstrate experience of the entity in provid17 ing assistance to homeless individuals and fami18 lies in the jurisdiction.

19 ‘‘(C) DIRECT PROVISION OF ASSIST20 ANCE.—The Secretary may, at the request of

21 the jurisdiction, provide grant amounts directly

22 to the agency or organization designated under

23 this paragraph.

24 ‘‘(3) ADMINISTRATION BY DESIGNEES OF SEC25 RETARY.—If an allocation unit of general local gov-
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1 ernment, Indian tribe, or insular area, or (if appro2 priate) a public agency or private nonprofit organi3 zation designated by the jurisdiction under para4 graph (2), does not receive a grant under section

5 409 for any fiscal year because of failure to meet the

6 application requirements of section 408, the Sec7 retary may designate an agency or organization

8 meeting the criteria established under paragraph

9 (2)(B) to receive the grant.

10 ‘‘(4) ADMINISTRATION BY SECRETARY.—If for

11 any fiscal year the Secretary determines that the

12 grant amounts allocated under section 409 for an al13 location unit of general local government, Indian

14 tribe, or insular area will not be used in the jurisdic15 tion as provided by the preceding provisions of this

16 subsection, the Secretary may administer such

17 amounts for the jurisdiction. The Secretary shall

18 prescribe such procedures and requirements as the

19 Secretary considers appropriate for administering

20 grant amounts under this paragraph.

21 ‘‘(b) GRANTS TO STATES.—

22 ‘‘(1) IN GENERAL.—To receive an allocation

23 under section 409, each State shall elect—
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1 ‘‘(A) to administer grant amounts received

2 under section 409, as provided in paragraphs

3 (2) and (3); or

4 ‘‘(B) to have the Secretary administer such

5 grant amounts for the State, as provided in

6 paragraph (5).

7 If a State elects to administer grant amounts under

8 subparagraph (A), the election shall be irrevocable.

9 ‘‘(2) STATE PROGRAM.—A State administering

10 grant amounts as provided in paragraph (1)(A)—

11 ‘‘(A) shall distribute the amounts remain12 ing after use in accordance with subparagraph

13 (B) to State recipients for use under this sub14 title;

15 ‘‘(B) may use up to 15 percent of the

16 grant amounts received under section 409 to

17 carry out its own homeless assistance program

18 under this subtitle, except that—

19 ‘‘(i) such amounts may only be used

20 for eligible activities under chapter 2 for

21 which States are eligible recipients under

22 this subtitle; and

23 ‘‘(ii) the Secretary may increase the

24 percentage limitation under this subpara25 graph in the case of any State homeless
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1 assistance program that is limited to pro2 viding assistance in areas of the State that

3 are not allocation units of general local

4 government; and

5 ‘‘(C) may retain not to exceed 5.0 percent

6 of the amount to be distributed under subpara7 graph (A) to State recipients to defray the cost

8 of carrying out its responsibilities under this

9 subtitle.

10 Unless a State demonstrates to the satisfaction of

11 the Secretary that the needs for assistance for ac12 tivities under this subtitle in areas of the State that

13 are not allocation units of general local government

14 have been fulfilled, grant amounts received by State

15 may only be used to carry out activities in areas of

16 the State that do not include allocation units of gen17 eral local government.

18 ‘‘(3) DISTRIBUTION OF AMOUNTS TO STATE RE19 CIPIENTS.—

20 ‘‘(A) CHOICE OF ADMINISTRATION.—A

21 State administering grant amounts as provided

22 in paragraph (1)(A) shall, for each fiscal year,

23 afford each such recipient the options of—

24 ‘‘(i) administering the grant amounts

25 on its own behalf;
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1 ‘‘(ii) designating a public agency or a

2 private nonprofit organization (as provided

3 by subsection (a)(2)) to administer the

4 grant amounts for the jurisdiction; or

5 ‘‘(iii) entering into an agreement with

6 the State, in consultation with private non7 profit organizations providing assistance to

8 homeless individuals and families in the ju9 risdiction, under which the State will ad10 minister the grant amounts for the juris11 diction.

12 A recipient may choose to exercise such options

13 at such time and in accordance with such cri14 teria as the Secretary may prescribe.

15 ‘‘(B) DIRECT PROVISION OF ASSIST16 ANCE.—A State may, at the request of the

17 State recipient, provide grant amounts directly

18 to the agency or organization designated under

19 subparagraph (A)(ii).

20 ‘‘(C) DISTRIBUTION OF AMOUNTS.—The

21 State shall distribute amounts to State recipi22 ents (or to agencies or organizations designated

23 under subparagraph (A)(ii), as appropriate) on

24 the basis of an application containing such in25 formation as the State may prescribe. Each ap-
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1 plication shall evidence an intent to establish

2 and maintain the provision of comprehensive

3 homeless assistance in the jurisdiction of the re4 cipient, except that the State may waive this re5 quirement with respect to one or more proposed

6 activities, where the State determines that—

7 ‘‘(i) the activities are necessary to

8 meet the needs of homeless individuals and

9 families within the jurisdiction; and

10 ‘‘(ii) comprehensive homeless assist11 ance is not necessary, due to the nature

12 and extent of homelessness in the jurisdic13 tion.

14 ‘‘(D) PREFERENCE FOR CERTAIN STATE

15 RECIPIENTS.—In selecting State recipients and

16 making awards under subparagraph (C), the

17 State shall give preference to applications that

18 demonstrate higher relative levels of homeless

19 need and fiscal distress.

20 ‘‘(4) STATE OR HUD ADMINISTRATION OF

21 GRANTS FOR INDIVIDUAL STATE RECIPIENTS.—If in

22 any fiscal year a State distributes grant amounts to

23 a State recipient, but the recipient fails to receive

24 the amounts pursuant to paragraph (3)(A), the Sec25 retary or the State, as the Secretary may provide,
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1 may distribute the amounts to private nonprofit or2 ganizations in the jurisdiction. If the Secretary dis3 tributes the amounts, the Secretary shall deduct the

4 amounts distributed from the grant provided to the

5 State for the fiscal year.

6 ‘‘(5) HUD ADMINISTRATION OF STATE PRO7 GRAM.—If a State elects pursuant to paragraph

8 (1)(B) to have the Secretary administer grant

9 amounts for the State received under section 409,

10 the Secretary may distribute grant amounts to State

11 recipients for the State, in accordance with require12 ments and procedures prescribed by the Secretary.

13 The Secretary shall establish criteria for selecting

14 recipients and making awards under this paragraph,

15 which shall include giving preference to applications

16 that demonstrate higher relative levels of homeless

17 need and fiscal distress.

18 ‘‘SEC. 411. CITIZEN PARTICIPATION.

19 ‘‘(a) IN GENERAL.—Each grantee who is not a State

20 recipient shall ensure that citizens, and appropriate pri21 vate nonprofit organizations and other interested groups

22 and entities, participate fully in developing and carrying

23 out the program for providing assistance under this sub24 title in the jurisdiction of the recipient. The Secretary

25 shall prescribe such requirements to carry out this section
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1 as the Secretary deems appropriate, which shall include

2 requirements applicable to the homeless assistance plan3 ning boards referred to in subsection (b) and the citizen

4 participation provisions of subsection (c), and the timing

5 of, and sequence for, carrying out the requirements of

6 such subsections.

7 ‘‘(b) HOMELESS ASSISTANCE PLANNING BOARDS.—

8 ‘‘(1) ESTABLISHMENT.—As a condition of a

9 grantee who is not a State recipient receiving assist10 ance under this subtitle, the chief executive officer of

11 the appropriate unit government in the jurisdiction

12 of the grantee shall establish and provide support

13 for the operation of a homeless assistance planning

14 board under this subsection.

15 ‘‘(2) FUNCTIONS.—Each board under this sub16 section shall assist the recipient in—

17 ‘‘(A) determining whether grant amounts

18 of the grantee should be administered by the

19 grantee, a public agency or private nonprofit or20 ganization, or the State or the Secretary, under

21 subsections (a) and (b) of section 410;

22 (B) developing the application under sec23 tion 408;

24 (C) overseeing the activities carried out

25 with assistance under this subtitle; and
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1 (D) evaluating the performance of the

2 grantee (and recipients of the grantee) in carry3 ing out such activities.

4 ‘‘(3) MEMBERSHIP.—Each board under this

5 subsection shall consist of members appointed by the

6 chief executive officer referred to in paragraph (1)

7 (subject to recommendations in accordance with

8 paragraph (4)), and shall include—

9 ‘‘(A) not less than one member represent10 ing homeless individuals and families;

11 ‘‘(B) not less than one member represent12 ing homeless advocates;

13 ‘‘(C) not less than one member represent14 ing individuals and entities providing assistance

15 to homeless individuals and families, including

16 agencies of units of general local government

17 providing Federal assistance;

18 ‘‘(D) not less than one member represent19 ing the business community;

20 ‘‘(E) not less than 1 member representing

21 labor;

22 ‘‘(F) not less than one member who is a

23 community representative;

24 ‘‘(G) not less than one member of the local

25 board established for the jurisdiction for pur-
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1 poses of allocating amounts under the emer2 gency food and shelter program of the Federal

3 Emergency Management Agency;

4 ‘‘(H) not less than one member represent5 ing the grantee; and

6 ‘‘(I) in the case of a grantee that is a

7 State—

8 ‘‘(i) one member representing the

9 State agency or instrumentality dealing

10 with mental health; and

11 ‘‘(ii) one member representing the

12 State agency or instrumentality dealing

13 with education.

14 ‘‘(4) DISTRIBUTION OF MEMBERSHIP.—Not less

15 than 50 percent of the members of each board under

16 this subsection (including the members required

17 under subparagraphs (A), (B), (C), and (G) of para18 graph (3)) shall be members of the board that rep19 resent homeless individuals and families, homeless

20 advocates, or nongovernmental entities that provide

21 assistance to homeless individuals and families. They

22 shall be individuals who were recommended for

23 membership by individuals and entities other than a

24 unit of general local government or any agency

25 thereof.
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1 ‘‘(5) BOARD REVIEW.—

2 ‘‘(A) APPLICANTS.—No eligible grantee

3 may submit an application to the Secretary

4 under section 408, and no grantee may submit

5 to the Secretary a performance report under

6 subsection 413(a), unless the board under this

7 subsection for the jurisdiction of the grantee

8 has reviewed, and been provided an opportunity

9 to include any comments of the board in, the

10 application or report.

11 ‘‘(B) STATE RECIPIENTS.—No State recip12 ient may submit an application under section

13 410(b)(3) or a performance report to a State,

14 unless the board under this subsection for the

15 jurisdiction has reviewed, and been provided an

16 opportunity to include any comments of the

17 board in, the application or report.

18 ‘‘(6) REVIEW BY SECRETARY.—A member or

19 members of the board under this subsection for a ju20 risdiction or other members of the community may

21 request the Secretary to review process for constitut22 ing or operating the board to determine whether the

23 process is fair. If the Secretary finds that the proc24 ess is unfair and submits a written justification to

25 the board within 15 days of the request for review,
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1 the Secretary may disapprove the application under

2 section 408 for the jurisdiction or refuse to accept

3 a performance report under section 413(a).

4 ‘‘(7) CONFLICTS OF INTEREST.—The Secretary

5 shall prescribe standards governing potential con6 flicts of interest under which members of boards

7 under this subsection may participate in activities

8 carried out under this subtitle.

9 ‘‘(c) INVOLVEMENT OF CITIZENS AND OTHERS.—

10 ‘‘(1) IN GENERAL.—Each recipient shall—

11 ‘‘(A) make available to its citizens, public

12 agencies, and other interested parties informa13 tion concerning the amount of assistance the ju14 risdiction expects to receive and the range of

15 activities that may be undertaken with the as16 sistance;

17 ‘‘(B) publish the proposed application in a

18 manner that, in the determination of the Sec19 retary, affords affected citizens, public agencies,

20 and other interested parties a reasonable oppor21 tunity to examine its content and to submit

22 comments on it;

23 ‘‘(C) hold one or more public hearings to

24 obtain the views of citizens, public agencies, and
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1 other interested parties on the housing needs of

2 the jurisdiction; and

3 ‘‘(D) provide citizens, public agencies, and

4 other interested parties with reasonable access

5 to records regarding any uses of any assistance

6 the recipient may have received under this sub7 title during the preceding 5 years.

8 ‘‘(2) NOTICE AND COMMENT.—Before submit9 ting any performance report under section 413(a) or

10 any substantial amendment to an application under

11 section 408, a recipient shall provide citizens with

12 reasonable notice of, and opportunity to comment

13 on, the performance report or application.

14 ‘‘(3) CONSIDERATION OF COMMENTS.—A recipi15 ent shall consider any comments or views of citizens

16 in preparing a final application, amendment to an

17 application, or performance report for submission. A

18 summary of such comments or views shall be at19 tached when an application, amendment to an appli20 cation, or performance report is submitted. The sub21 mitted application, amendment, or report shall be

22 made available to the public.

23 ‘‘(4) AUTHORITY OF SECRETARY.—The Sec24 retary shall establish procedures appropriate and

25 practicable for providing a fair hearing and timely
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1 resolution of citizen complaints related to applica2 tions or performance reports under this subtitle.

3 ‘‘(d) REQUIREMENTS FOR CITIZEN PARTICIPATION

4 FOR STATE RECIPIENTS AND RECIPIENTS OF AMOUNTS

5 FROM THE SECRETARY.—

6 ‘‘(1) STATE RECIPIENTS.—The State may pre7 scribe citizen participation requirements comparable

8 (to the extent appropriate) to the requirements

9 under the preceding provisions of this section for

10 cases in which a State distributes grant amounts to

11 State recipients, as provided in section 410(b)(2).

12 ‘‘(2) RECIPIENTS FROM SECRETARY.—The Sec13 retary may prescribe citizen participation require14 ments comparable (to the extent appropriate) to the

15 requirements under the preceding provisions of this

16 section for cases in which the Secretary—

17 ‘‘(A) administers the grant amounts of an

18 allocation unit of general local government, as

19 provided in section 410(a)(4); or

20 ‘‘(B) distributes grant amounts to recipi21 ents, as provided in paragraph (3), (4), or (5)

22 of section 410(b).

23 ‘‘(3) INAPPLICABLE LAWS.—The Federal Advi24 sory Committee Act and section 12 of the Depart25 ment of Housing and Urban Development Act shall
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1 not apply with respect to the actions of the Sec2 retary referred to in paragraph (2). The Secretary

3 shall establish appropriate standards under this

4 paragraph to ensure the integrity of the process for

5 awarding assistance.

6 ‘‘SEC. 412. APPLICABILITY OF OTHER PROVISIONS.

7 ‘‘(a) FLOOD ELEVATION REQUIREMENTS.—Flood

8 protection standards applicable to housing acquired, reha9 bilitated, or assisted under this subtitle shall be no more

10 restrictive than the standards applicable to any other pro11 gram administrated by the Secretary.

12 ‘‘(b) ENVIRONMENTAL PROTECTION.—The provi13 sions of, and regulations and procedures applicable under,

14 section 104(g) of the Housing and Community Develop15 ment Act of 1974 shall apply to assistance and projects

16 under this subtitle.

17 ‘‘(c) GAO AUDITS.—Insofar as they relate to funds

18 provided under this subtitle, the financial transactions of

19 grantees and project sponsors may be audited by the Gen20 eral Accounting Office under such rules and regulations

21 as may be prescribed by the Comptroller General of the

22 United States. The representatives of the General Ac23 counting Office shall have access to all books, accounts,

24 records, reports, files and other papers, things, or property

25 belonging to, or in use by such grantees, and project spon-
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1 sors pertaining to the financial transactions and necessary

2 to facilitate the audit.

3 ‘‘SEC. 413. REPORTS, REVIEWS, AND AUDITS.

4 ‘‘(a) GRANTEE PERFORMANCE REPORT.—Each

5 grantee shall submit to the Secretary a performance and

6 evaluation report concerning the use of funds made avail7 able under this subtitle. The report shall be submitted at

8 such time and contain such information as the Secretary

9 shall prescribe, and shall be made available to the relevant

10 boards referred to in section 411(b) and to citizens, public

11 agencies, and other interested parties in the jurisdiction

12 of the grantee in sufficient time to permit the board and

13 the citizens, public agencies, and other interested parties

14 to comment on the report before submission.

15 ‘‘(b) REVIEWS AND AUDITS.—The Secretary shall, at

16 least on an annual basis, make such reviews and audits

17 as may be necessary or appropriate to determine—

18 ‘‘(1) in the case of a grantee (other than a

19 grantee referred to in paragraph (2)), whether the

20 grantee—

21 ‘‘(A) has carried out its activities in a

22 timely manner;

23 ‘‘(B) has made progress toward establish24 ing and maintaining the comprehensive home-
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1 less assistance system in conformity with its ap2 plication under this subtitle;

3 ‘‘(C) has carried out its activities and cer4 tifications in accordance with the requirements

5 of this subtitle and other applicable laws; and

6 ‘‘(D) has a continuing capacity to carry

7 out its activities in a timely manner; and

8 ‘‘(2) in the case of States distributing grant

9 amounts to State recipients, whether the State—

10 ‘‘(A) has distributed amounts to State re11 cipients in a timely manner and in conformance

12 with the method of distribution described in its

13 application;

14 ‘‘(B) has carried out its activities and cer15 tifications in compliance with the requirements

16 of this subtitle and other applicable laws; and

17 ‘‘(C) has made such reviews and audits of

18 the State recipients as may be necessary or ap19 propriate to determine whether they have satis20 fied the applicable performance criteria con21 tained in paragraph (1).

22 The Secretary may make appropriate adjustments in the

23 amount of grants in accordance with the Secretary’s find24 ings under this subsection. With respect to assistance

25 made available for State recipients, the Secretary may ad-
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1 just, reduce, or withdraw such assistance, or take other

2 action as appropriate in accordance with the Secretary’s

3 reviews and audits under this subsection, except that

4 amounts already properly expended on eligible activities

5 under this subtitle shall not be recaptured or deducted

6 from future assistance to such recipients.

7 ‘‘SEC. 414. NONDISCRIMINATION IN PROGRAMS AND AC8 TIVITIES.

9 ‘‘(a) IN GENERAL.—No person in the United States

10 shall on the ground of race, color, national origin, religion,

11 or sex be excluded from participation in, be denied the

12 benefits of, or be subjected to discrimination under any

13 program or activity funded in whole or in part with funds

14 made available under this subtitle. Any prohibition against

15 discrimination on the basis of age under the Age Discrimi16 nation Act of 1975 or with respect to an otherwise quali17 fied handicapped individual, as provided in section 504 of

18 the Rehabilitation Act of 1973, shall also apply to any

19 such program or activity.

20 ‘‘(b) LIMITATIONS.—

21 ‘‘(1) INDIAN TRIBES.—No grant may be made

22 under this subtitle to an Indian tribe unless the ap23 plicant provides satisfactory assurances that its pro24 gram will be conducted and administered in con25 formity with title II of Public Law 90–284. The Sec-
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1 retary may waive, in connection with grants to In2 dian tribes, the provisions of subsection (a).

3 ‘‘(2) HAWAIIAN HOME LANDS.—The provisions

4 of this subtitle relating to discrimination on the

5 basis of race shall not apply to the provision of as6 sistance under this subtitle to the Hawaiian Home

7 Lands.

8 ‘‘SEC. 415. CONSULTATION.

9 ‘‘In carrying out the provisions of this subtitle, in10 cluding the issuance of regulations, the Secretary shall

11 consult with other Federal agencies administering pro12 grams affecting homeless individuals and families through

13 the Interagency Council on the Homeless established

14 under title II.

15 ‘‘SEC. 416. RECORDS, REPORTS, AND AUDITS.

16 ‘‘(a) KEEPING OF RECORDS.—Any recipient (includ17 ing a State distributing grant amounts to State recipients

18 as provided in section 410(b)(2)) shall keep such records

19 as may be reasonably necessary—

20 ‘‘(1) to disclose the amounts and the disposition

21 of the grant amounts; and

22 ‘‘(2) to ensure compliance with the require23 ments of this subtitle.

24 ‘‘(b) ACCESS TO DOCUMENTS BY SECRETARY.—The

25 Secretary shall have access for the purpose of audit and
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1 examination to any books, documents, papers, and records

2 of any recipient specified in subsection (a) that are perti3 nent to grant amounts received in connection with, and

4 the requirements of, this subtitle.

5 ‘‘(c) ACCESS TO DOCUMENTS BY COMPTROLLER

6 GENERAL.—The Comptroller General of the United

7 States, or any of the duly authorized representatives of

8 the Comptroller General, shall have access for the purpose

9 of audit and examination to any books, documents, papers,

10 and records of any recipient specified in subsection (a)

11 that are pertinent to grant amounts received in connection

12 with, and the requirements of, this subtitle.

13 ‘‘SEC. 417. REPORTS TO CONGRESS.

14 ‘‘The Secretary shall submit a report to the Congress

15 annually, summarizing the activities carried out under this

16 subtitle and setting forth the findings, conclusions, and

17 recommendations of the Secretary as a result of the activi18 ties. The report shall be submitted not later than 4

19 months after the end of each fiscal year (except that, in

20 the case of fiscal year 1995, the report shall be submitted

21 not later than 6 months after the end of the fiscal year).

22 ‘‘CHAPTER 2—ELIGIBLE ACTIVITIES

23 ‘‘SEC. 431. HOMELESSNESS PREVENTION.

24 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

25 grant amounts under this subtitle for activities designed
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1 to help persons and families described in subsection (b)

2 avoid becoming homeless, which shall include assistance

3 for making mortgage payments, rental payments, and util4 ity payments and any activities other than those found by

5 the Secretary to be inconsistent with the purposes of this

6 Act.

7 ‘‘(b) REQUIREMENTS FOR ASSISTANCE.—Assistance

8 may be provided under this section only to very low-income

9 persons and families who have received eviction (or mort10 gage delinquency or foreclosure) notices or notices of ter11 mination of utility services and who—

12 ‘‘(1) are unable to make the required payments

13 due to a sudden reduction in income;

14 ‘‘(2) need such assistance to avoid the eviction

15 or termination of services; and

16 ‘‘(3) have a reasonable prospect of being able to

17 resume payments within a reasonable period of time.

18 ‘‘SEC. 432. EMERGENCY SHELTER.

19 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

20 grant amounts under this subtitle for—

21 ‘‘(1) the renovation, major rehabilitation, or

22 conversion of a building or buildings to be used as

23 emergency shelters;

24 ‘‘(2) the provision of supportive services, if such

25 services do not supplant any services provided by the
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1 local government during any part of the 12-month

2 period ending on the date of the commencement of

3 the operation of the emergency shelter; and

4 ‘‘(3) maintenance, operation, insurance, utili5 ties, and furnishings for emergency shelters.

6 ‘‘(b) DEFINITION.—A project shall be considered

7 emergency shelter for purposes of this section if the

8 project is designed to provide overnight sleeping accom9 modations for homeless persons. An emergency shelter

10 may include appropriate eating and cooking accommoda11 tions.

12 ‘‘(c) PROGRAM REQUIREMENTS.—A recipient may

13 use grant amounts under this subtitle for an emergency

14 shelter project only if the project sponsor has agreed that

15 it will—

16 ‘‘(1) in the case of assistance involving major

17 rehabilitation or conversion of a building, maintain

18 the building as a shelter for homeless individuals

19 and families for not less than a 10-year period un20 less, within such 10-year period, the need for main21 taining the building as a full-time shelter ceases to

22 exist and the building is used for the remainder of

23 such period to carry out other eligible activities

24 under this subtitle;
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1 ‘‘(2) in the case of assistance involving rehabili2 tation (other than major rehabilitation or conversion

3 of a building), maintain the building as a shelter for

4 homeless individuals and families for not less than

5 a 3-year period; or

6 ‘‘(3) in the case of assistance involving only ac7 tivities described in paragraphs (2) and (3) of sub8 section (a), provide services or shelter to homeless

9 individuals and families at the original site or struc10 ture or other sites or structures serving the same

11 general population for the period during which such

12 assistance is provided;

13 ‘‘(4) comply with the standards of habitability

14 prescribed under subsection (d) by the Secretary and

15 (if applicable) the State or unit of general local gov16 ernment; and

17 ‘‘(5) assist homeless persons in obtaining—

18 ‘‘(A) appropriate supportive service, includ19 ing permanent housing, medical and mental

20 health treatment, counseling, supervision, and

21 other services essential for achieving independ22 ent living; and

23 ‘‘(B) other Federal, State, local, and pri24 vate assistance available for homeless persons.
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1 ‘‘(d) MINIMUM STANDARDS OF HABITABILITY.—The

2 Secretary shall prescribe such minimum standards of hab3 itability as the Secretary determines to be appropriate to

4 ensure that emergency shelters assisted under this section

5 are environments that provide appropriate privacy, safety,

6 and sanitary and other health-related conditions for home7 less persons and families. Grantees may establish stand8 ards of habitability in addition to those prescribed by the

9 Secretary.

10 ‘‘SEC. 433. SUPPORTIVE HOUSING FOR THE HOMELESS.

11 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

12 grant amounts under this subtitle to provide assistance to

13 a project sponsor of supportive housing in the following

14 manners:

15 ‘‘(1) ACQUISITION AND REHABILITATION.—As16 sistance may be provided in the form of an advance

17 in an amount not exceeding cost of acquisition, sub18 stantial rehabilitation, or acquisition and rehabilita19 tion of an existing structure for use as supportive

20 housing. The repayment of any outstanding debt

21 owed on a loan made to purchase an existing struc22 ture shall be considered to be a cost of acquisition

23 eligible for an advance under this paragraph if the

24 structure was not used as supportive housing before

25 the receipt of assistance.
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1 ‘‘(2) MODERATE REHABILITATION.—Assistance

2 may be provided in the form of a grant for moderate

3 rehabilitation of an existing structure for use as sup4 portive housing. Assistance under this paragraph

5 shall not preclude assistance under paragraph (1).

6 ‘‘(3) OPERATING COSTS.—Assistance may be

7 provided in the form of annual payments for operat8 ing costs of supportive housing (including supportive

9 housing that is newly constructed with assistance

10 provided from sources other than this subtitle) in an

11 amount not exceeding 75 percent of the annual oper12 ating costs of such housing.

13 ‘‘(4) TECHNICAL ASSISTANCE.—Technical as14 sistance may be provided in—

15 ‘‘(A) establishing supportive housing in an

16 existing structure;

17 ‘‘(B) operating supportive housing in exist18 ing structures and in structures that are newly

19 constructed with assistance provided from

20 sources other than this subtitle; and

21 ‘‘(C) providing supportive services to the

22 residents of supportive housing (including sup23 portive housing that is newly constructed with

24 assistance provided from sources other than

25 this subtitle).
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1 ‘‘(5) EMPLOYMENT ASSISTANCE PROGRAM.—

2 Assistance may be provided in the form of a grant

3 for establishing and operating an employment assist4 ance program for the residents of supportive hous5 ing, which shall include—

6 ‘‘(A) employment of residents in the oper7 ation and maintenance of the housing; and

8 ‘‘(B) the payment of the transportation

9 costs of residents to places of employment.

10 ‘‘(6) SUPPORTIVE SERVICES.—Assistance may

11 be provided in the form of a grant for costs of sup12 portive services provided to homeless individuals.

13 Any project sponsor, including program recipients

14 under title IV of this Act before the date of the en15 actment of the Housing and Community Develop16 ment Act of 1994, may reapply for such assistance

17 or for the renewal of such assistance to continue

18 services funded under prior grants or to provide

19 other services.

20 ‘‘(7) CHILD CARE SERVICES.—Assistance may

21 be provided in the form of a grant to establish and

22 operate a child care services program for homeless

23 families, which shall—

24 ‘‘(A) include—
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1 ‘‘(i) establishing, licensing, and oper2 ating an onsite child care facility for the

3 residents of transitional housing;

4 ‘‘(ii) making contributions for the

5 child care costs of residents of transitional

6 housing to existing community child care

7 programs and facilities; and

8 ‘‘(iii) counseling designed to inform

9 the residents of transitional housing of

10 public and private child care services for

11 which they are eligible; and

12 ‘‘(B) provide only child care services that

13 comply with any applicable State and local laws

14 and regulations.

15 A grant under this paragraph for any child care

16 services program may not exceed the amount equal

17 to 75 percent of the cost of operating the program

18 for a period not exceeding 5 years.

19 ‘‘(b) SUPPORTIVE HOUSING.—Housing for homeless

20 individuals shall be considered to be supportive housing

21 for purposes of this section if—

22 ‘‘(1) the housing is safe and sanitary and meets

23 any applicable State and local housing codes and li24 censing requirements in the jurisdiction in which the

25 housing is located;
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1 ‘‘(2) the housing is—

2 ‘‘(A) transitional housing;

3 ‘‘(B) permanent housing for homeless per4 sons with disabilities; or

5 ‘‘(C) a particularly innovative project for,

6 or alternative methods of, meeting the imme7 diate and long-term needs of homeless individ8 uals and families (or is part of such a project);

9 and

10 ‘‘(3) supportive services are provided in connec11 tion with the housing to address the special needs of

12 homeless individuals intended to be served by the

13 housing.

14 ‘‘(c) TRANSITIONAL HOUSING.—For purposes of this

15 section, the term ‘transitional housing’ means housing, the

16 purpose of which is to facilitate the movement of homeless

17 individuals and families to permanent housing within 24

18 months or such longer period as the Secretary determines

19 necessary.

20 ‘‘(d) PERMANENT HOUSING FOR HOMELESS PER21 SONS WITH DISABILITIES.—For purposes of this section,

22 the term ‘permanent housing for homeless persons with

23 disabilities’ means community-based housing for homeless

24 persons with disabilities that—
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1 ‘‘(1) is a home designed solely for housing

2 homeless persons with disabilities or dwelling units

3 in a multifamily housing project, condominium

4 project, or cooperative project;

5 ‘‘(2) in the case of a home, is located on a site

6 that does not contain another home used for the

7 same purposes and that is not contiguous to another

8 site containing a home used for the same purposes;

9 and

10 ‘‘(3) provides long-term housing and supportive

11 services for not more than—

12 ‘‘(A) 8 such persons in a single structure

13 or contiguous structures;

14 ‘‘(B) 16 such persons, but only if not more

15 than 20 percent of the units in a structure are

16 designated for such persons; or

17 ‘‘(C) more than 16 persons if the applicant

18 demonstrates that local market conditions dic19 tate the development of a large project and

20 such development will achieve the neighborhood

21 integration objectives of the program within the

22 context of the affected community.

23 ‘‘(e) PROGRAM REQUIREMENTS.—

24 ‘‘(1) REQUIRED AGREEMENTS.—A recipient

25 may use grant amounts under this subtitle for a
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1 supportive housing project under this section only if

2 the project sponsor for the project has agreed—

3 ‘‘(A) to operate the proposed project as

4 supportive housing for not less than 10 years;

5 ‘‘(B) to conduct an ongoing assessment of

6 the supportive services required by the residents

7 of the project;

8 ‘‘(C) to provide such residential supervision

9 as the Secretary determines is necessary to fa10 cilitate the adequate provision of supportive

11 services to the residents of the project; and

12 ‘‘(D) to comply with such other terms and

13 conditions as the Secretary or recipient may es14 tablish for purposes of carrying out this pro15 gram in an effective and efficient manner.

16 ‘‘(2) OCCUPANT CHARGE.—Each homeless indi17 vidual or family residing in a project assisted under

18 this section that provides supportive housing may be

19 required to pay an occupancy charge in an amount

20 determined by the project sponsor, which may not

21 exceed the amount determined under section 3(a) of

22 the United States Housing Act of 1937. Occupancy

23 charges paid may be reserved, in whole or in part,

24 to assist residents in moving to permanent housing.
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1 ‘‘(f) SINGLE ROOM OCCUPANCY DWELLINGS.—A

2 project assisted under this section may provide supportive

3 housing or supportive services in dwelling units that do

4 not contain bathrooms or kitchen facilities and are appro5 priate for use as supportive housing or in projects contain6 ing some or all such dwelling units.

7 ‘‘SEC. 434. SAFE HAVENS FOR HOMELESS INDIVIDUALS.

8 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

9 grant amounts under this subtitle for—

10 ‘‘(1) the construction of a structure for use in

11 providing a safe haven or the acquisition, rehabilita12 tion, or acquisition and rehabilitation of an existing

13 structure for use in providing a safe haven;

14 ‘‘(2) the leasing of an existing structure for use

15 in providing a safe haven;

16 ‘‘(3) operating costs of a safe haven;

17 ‘‘(4) costs of administering a safe haven pro18 gram, in an amount not exceeding 10 percent of the

19 amounts made available for activities under para20 graphs (1) through (3);

21 ‘‘(5) conducting outreach activities designed to

22 inform eligible persons about and attract them to a

23 safe haven program;

24 ‘‘(6) the provision of low-demand services and

25 referrals for residents of a safe haven; and
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1 ‘‘(7) conducting other activities that further the

2 purposes of this section, including the modification

3 of an existing facility to use a portion of a facility

4 to provide a safe haven.

5 ‘‘(b) DEFINITION.—For purposes of this section, the

6 term ‘safe haven’ means housing for homeless persons

7 who, at the time, are unwilling or unable to participate

8 in mental health treatment programs or to receive other

9 supportive services. Such a facility may provide—

10 ‘‘(1) 24-hour residence for eligible persons who

11 may reside for an unspecified duration;

12 ‘‘(2) private or semiprivate accommodations;

13 ‘‘(3) common use of kitchen facilities, dining

14 rooms, and bathrooms;

15 ‘‘(4) supportive services to eligible persons who

16 are not residents on a drop-in basis; and

17 ‘‘(5) overnight occupancy limited to no more

18 than 25 persons.

19 ‘‘SEC. 435. SHELTER PLUS CARE.

20 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

21 grant amounts under this subtitle to provide shelter plus

22 care for homeless persons with disabilities (primarily per23 sons who have severe and persistent mental or emotional

24 impairments that seriously limit a person’s ability to live

25 independently, have chronic programs with alcohol, drugs,
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1 or both, or have acquired immunodeficiency syndrome and

2 related diseases) and the families of such persons.

3 ‘‘(b) DEFINITION.—For purposes of this section, the

4 term ‘shelter plus care’ means rental housing assistance,

5 in connection with supportive services funded from sources

6 other than under this section. Such rental housing assist7 ance may be tenant-based, project-based, or sponsor8 based.

9 ‘‘SEC. 436. ADMINISTRATIVE AND CAPACITY-BUILDING EX10 PENSES.

11 ‘‘(a) AVAILABILITY OF GRANT AMOUNTS.—A recipi12 ent may use grant amounts under this subtitle for the fol13 lowing expenses:

14 ‘‘(1) ADMINISTRATIVE EXPENSES.—During—

15 ‘‘(A) the first year in which a recipient re16 ceives grant amounts under this subtitle, for

17 administrative expenses in connection with

18 planning the development of, and establishing,

19 its program under this subtitle;

20 ‘‘(B) subsequent years, to defray the cost

21 of administering the program; and

22 ‘‘(C) any year in which a recipient receives

23 grant amounts under this subtitle, to defray the

24 cost of establishing and operating the board re25 ferred to in section 411(b).
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1 Not more than 5 percent of any amounts provided

2 to a recipient under this subtitle for a fiscal year

3 may be used for activities under this paragraph.

4 ‘‘(2) CAPACITY BUILDING FOR NONPROFIT OR5 GANIZATIONS.—For building the capacity of private

6 nonprofit organizations to participate in the com7 prehensive homeless assistance system of the recipi8 ent, except that not more than 2 percent of any

9 amounts provided to a recipient under this subtitle

10 for a fiscal year may be used for activities under this

11 paragraph.

12 ‘‘(b) PROVISION OF ADMINISTRATIVE EXPENSES FOR

13 CERTAIN ENTITIES.—

14 ‘‘(1) PROVISION OF AMOUNTS.—Any recipient

15 under paragraph (2) shall make available, to defray

16 the administrative expenses of the designee or the

17 State, not more than 5 percent from amounts eligi18 ble for this purpose under subsection (a)(1).

19 ‘‘(2) RECIPIENTS COVERED.—The recipients

20 under this paragraph shall be—

21 ‘‘(A) any allocation unit of general local

22 government, Indian Tribe, or insular area, that

23 designates a public agency or a private non24 profit organization under section 410(a)(2);
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1 ‘‘(B) any State recipient that designates a

2 public agency or a private nonprofit organiza3 tion under section 410(b)(3)(A)(ii); and

4 ‘‘(C) any State recipient that enters into

5 an agreement under section 410(b)(3)(A)(iii)

6 with a State.

7 ‘‘SEC. 437. INNOVATIVE HOMELESS INITIATIVES.

8 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

9 grant amounts under this subtitle for—

10 ‘‘(1) establishing innovative programs to dem11 onstrate methods of undertaking comprehensive

12 strategies for assisting homeless individuals and

13 families (including homeless individuals who have

14 the disease of acquired immunodeficiency syndrome

15 or who are infected with HIV), through cooperative

16 efforts in partnership with other levels of govern17 ment and the private sector (including nonprofit or18 ganizations, foundations, and communities) and

19 through a variety of activities, including the coordi20 nation of efforts and the filling of gaps in available

21 services and resources; and

22 ‘‘(2) to obtain technical assistance in establish23 ing a program for providing homeless assistance in

24 accordance with the provisions of this subtitle, ex25 cept that not more than 10 percent of the amount
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1 provided to a recipient under this subtitle for a fiscal

2 year may be used under this paragraph.

3 ‘‘(b) REQUIREMENTS.—A recipient may use grant

4 amounts to establish an innovative program under sub5 section (a)(1) only if—

6 ‘‘(1) the existing public and private systems for

7 homelessness prevention, outreach, assessment, shel8 ter, services, transitional services, transitional hous9 ing, and permanent housing available within the ju10 risdiction of the recipient would benefit from addi11 tional resources to achieve a comprehensive ap12 proach to meeting the needs of individuals and fami13 lies who are homeless, or who are very low-income

14 and at risk of homelessness;

15 ‘‘(2) the recipient works cooperatively with the

16 Department of Housing and Urban Development,

17 nonprofit organizations, foundations, other private

18 entities, and the community, to the extent feasible,

19 to design and implement the program; and

20 ‘‘(3) the recipient obtains a commitment from

21 the jurisdiction to make necessary changes in policy

22 and procedure to provide sufficient flexibility and re23 sources as necessary to implement and sustain the

24 program.
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1 ‘‘SEC. 438. OTHER APPROVED ACTIVITIES.

2 ‘‘The Secretary, in cooperation with grantees, recipi3 ents, and other appropriate parties, shall develop addi4 tional activities to carry out the purposes of this subtitle.

5 A recipient may use grants amounts under this subtitle

6 to carry out any such activities developed and approved

7 by the Secretary.

8 ‘‘Subtitle B—Other Permanent

9 Housing Assistance Programs

10 for the Homeless’’.

11 SEC. 812. REGULATIONS AND TRANSITION PROVISIONS.

12 (a) IN GENERAL.—Not later than April 1, 1995, the

13 Secretary of Housing and Urban Development (in this sec14 tion referred to as the ‘‘Secretary’’) shall publish final reg15 ulations to implement the amendments made by this chap16 ter. The final rule shall be published after notice and op17 portunity for public comment in accordance with section

18 553 of title 5, United States Code.

19 (b) TRANSITION PROVISIONS.—

20 (1) EMERGENCY SHELTER GRANTS PROGRAM.—

21 Notwithstanding any other provision of law, during

22 fiscal year 1995, the Secretary shall allocate grants

23 from amounts available for such year under subtitle

24 A of title IV of the Stewart B. McKinney Homeless

25 Assistance Act (as amended by this Act) in accord26 ance with the provisions of subtitle B of title IV of
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1 the Stewart B. McKinney Homeless Assistance Act

2 (Emergency Shelter Grants), as such provisions ex3 isted immediately before the enactment of this Act.

4 (2) FAILURE TO PUBLISH REGULATIONS.—

5 (A) IN GENERAL.—If the Secretary fails to

6 publish final regulations as provided by sub7 section (a), the Secretary shall distribute the

8 amounts available for fiscal year 1995 under

9 subtitle A of title IV of the Stewart B. McKin10 ney Homeless Assistance Act (as amended by

11 this Act) (excluding amounts allocated under

12 paragraph (1)) in accordance with the following

13 provisions of title IV of the Stewart B. McKin14 ney Homeless Assistance Act, as such provi15 sions existed immediately before the enactment

16 of this Act—

17 (i) subtitle C (Supportive Housing);

18 (ii) subtitle D (Safe Havens); and

19 (iii) subtitle F (Shelter Plus Care).

20 (B) PROCEDURE.—For purposes of award21 ing assistance under this paragraph, the Sec22 retary may, as appropriate—

23 (i) provide for use of a single applica24 tion; and
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1 (ii) publish a single notice of funding

2 availability.

3 (3) MINIMUM AMOUNTS.—The Secretary shall

4 determine the amount to be allocated for each of the

5 programs referred to in this subsection, but the

6 amount so allocated for each such program shall not

7 be less than the amount appropriated for the pro8 gram for fiscal year 1994.

9 (c) TECHNICAL ASSISTANCE.—Of any amounts ap10 propriated to carry out section 2 of the HUD Demonstra11 tion Act of 1993 in fiscal year 1995, the Secretary may

12 use not more than 10 percent for providing technical as13 sistance to assist recipients under subtitle A of title IV

14 of the Stewart B. McKinney Homeless Assistance Act (as

15 amended by this chapter) to establish a program for pro16 viding homeless assistance in accordance with the provi17 sions of such subtitle.

18 SEC. 813. REPORT ON SINGLE ROOM OCCUPANCY ASSIST19 ANCE.

20 Not later than July 1, 1995, the Secretary shall sub21 mit a report to the Congress evaluating the effectiveness

22 of combining the programs for assistance for single room

23 occupancy dwellings under sections 451 and 452 of the

24 Stewart B. McKinney Homeless Assistance Act (as so re25 designated and amended by this Act) into the program
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1 for assistance under subtitle A of title IV of such Act and,

2 if effective, describing how to provide such assistance

3 under the program under such subtitle A.

4 CHAPTER 2—OTHER HOUSING ASSIST5 ANCE PROGRAMS FOR THE HOMELESS

6 UNDER MCKINNEY ACT

7 SEC. 821. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCU8 PANCY DWELLINGS.

9 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

10 451(a) of the Stewart B. McKinney Homeless Assistance

11 Act (42 U.S.C. 11401(a)), as so redesignated by section

12 811(3) of this Act, is amended to read as follows:

13 ‘‘(a) INCREASE IN BUDGET AUTHORITY.—The budg14 et authority available under section 5(c) of the United

15 States Housing Act of 1937 for assistance under section

16 8(e)(2) of such Act (as in effect immediately before Octo17 ber 1, 1991) is authorized to be increased by

18 $200,000,000 on or after October 1, 1994, and by

19 $200,000,000 on or after October 1, 1995.’’.

20 (b) PROGRAM CHANGES.—Section 451 of the Stewart

21 B. McKinney Homeless Assistance Act (42 U.S.C.

22 11401(a)), as so redesignated by section 811(3) of this

23 Act, is amended—

24 (1) in the second sentence of subsection (c), in

25 the matter preceding paragraph (1), by striking
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1 ‘‘containing’’ and inserting the following: ‘‘for the

2 provision of assistance under this section that is spe3 cifically provided for in the comprehensive homeless

4 assistance described in the application under section

5 408 of the relevant eligible grantee and that con6 tains’’; and

7 (2) in subsection (j)(1), by inserting ‘‘recipient

8 under subtitle A,’’ after ‘‘authority,’’.

9 SEC. 822. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE

10 SINGLE ROOM OCCUPANCY DWELLINGS.

11 Title IV of the Stewart B. McKinney Homeless As12 sistance Act (42 U.S.C. 11361 et seq.) is amended by in13 serting after section 451, as so redesignated by section

14 811(3) of this Act, the following new section:

15 ‘‘SEC. 452. SECTION 8 ASSISTANCE FOR SHELTER PLUS

16 CARE SINGLE ROOM OCCUPANCY DWELL17 INGS.

18 ‘‘(a) PURPOSE.—The purpose of the program under

19 this section is to provide assistance for the moderate reha20 bilitation of single room occupancy housing to be made

21 available for rental, in connection with supportive services

22 funded from sources other than this section, to homeless

23 persons with disabilities (primarily persons who are seri24 ously mentally ill, have chronic problems with alcohol,

25 drugs, or both, or have acquired immunodeficiency syn-
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1 drome and related diseases) and the families of such per2 sons.

3 ‘‘(b) MODERATE REHABILITATION ASSISTANCE.—

4 The Secretary may use amounts made available to carry

5 out this section for moderate rehabilitation of single room

6 occupancy housing described in section 8(l) of the United

7 States Housing Act of 1937 for occupancy by eligible per8 sons in accordance with this section. Such amounts may

9 be used in connection with the moderate rehabilitation of

10 efficiency units if the building owner agrees to pay the

11 additional cost of rehabilitating and operating the effi12 ciency units.

13 ‘‘(c) FUNDING LIMITATIONS.—

14 ‘‘(1) TARGETED POPULATIONS.—To the maxi15 mum extent practicable, the Secretary shall reserve

16 not less than 50 percent of all amounts made avail17 able to carry out this section for homeless individ18 uals who are seriously mentally ill or have chronic

19 problems with alcohol, drugs, or both.

20 ‘‘(2) GEOGRAPHICAL LIMITATION.—Of the as21 sistance made available under this section for any

22 fiscal year, not more than 10 percent may be used

23 for programs located within any one unit of general

24 local government.

25 ‘‘(d) SUPPORTIVE SERVICES REQUIREMENTS.—
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1 ‘‘(1) REQUIREMENT OF MATCHING AMOUNTS.—

2 Each recipient of assistance under this section shall

3 supplement the assistance provided under this sec4 tion with an equal amount of funds for supportive

5 services from sources other than this section. Each

6 recipient shall certify to the Secretary its compliance

7 with this paragraph, and shall include with the cer8 tification a description of the sources and amounts

9 of such supplemental funds.

10 ‘‘(2) DETERMINATION OF MATCHING

11 AMOUNTS.—In calculating the amount of supple12 mental funds provided under this section, a recipient

13 may include the value of any lease on a building, any

14 salary paid to staff to carry out the program of the

15 recipient, and the value of the time and services con16 tributed by volunteers to carry out the program of

17 the recipient at a rate determined by the Secretary.

18 ‘‘(3) RECAPTURE.—If the supportive services

19 and funding for the supportive services required by

20 this subsection are not provided by a recipient, the

21 Secretary may recapture any unexpended housing

22 assistance provided under this section to the recipi23 ent.

24 ‘‘(e) CONTRACT REQUIREMENTS.—Each contract for

25 annual contributions entered into by the Secretary with
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1 a public housing agency to obligate budget authority made

2 available to carry out this section shall—

3 ‘‘(1) commit the Secretary to make the author4 ity available to the public housing agency for an ag5 gregate period of 10 years, and require that any

6 amendments increasing the authority shall be avail7 able for the remainder of such 10-year period;

8 ‘‘(2) provide the Secretary with the option to

9 renew the contract for an additional period of 10

10 years, subject to the availability of authority;

11 ‘‘(3) provide that, notwithstanding any other

12 provision of law, first priority for occupancy of hous13 ing rehabilitated under this section shall be given to

14 homeless persons; and

15 ‘‘(4) require installation in the housing assisted

16 of a sprinkler system that protects all major spaces,

17 hard-wired smoke detectors, and any other fire safe18 ty improvements as may be required by State or

19 local law.

20 For purposes of this subsection, the term ‘major spaces’

21 means hallways, large common areas, and other areas

22 specified in local fire, building, or safety codes.

23 ‘‘(f) APPLICATIONS.—

24 ‘‘(1) IN GENERAL.—An application for rental

25 housing assistance under this section shall be sub-
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1 mitted by an applicant in such form and in accord2 ance with such procedures as the Secretary shall es3 tablish.

4 ‘‘(2) MINIMUM CONTENTS.—The Secretary

5 shall require that an application identify the need

6 for the assistance in the community to be served and

7 shall contain at a minimum—

8 ‘‘(A) a request for housing assistance

9 under this section specifying the number of

10 units requested and the amount of necessary

11 budget authority;

12 ‘‘(B) a description of the size and charac13 teristics of the population of eligible persons;

14 ‘‘(C) an identification of the need for the

15 program in the community to be served;

16 ‘‘(D) the identity of the proposed service

17 provider or providers (which may be, or include,

18 the applicant) and a statement of the qualifica19 tions of the provider or providers;

20 ‘‘(E) a description of the supportive serv21 ices that the applicant proposes to assure will

22 be available for eligible persons;

23 ‘‘(F) a description of the resources that

24 are expected to be made available to provide the

25 supportive services required by subsection (d);
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1 ‘‘(G) a description of the mechanisms for

2 developing a housing and supportive services

3 plan for each person and for monitoring each

4 person’s progress in meeting that plan;

5 ‘‘(H) reasonable assurances satisfactory to

6 the Secretary that the supportive services will

7 be provided for the full term of the housing as8 sistance under this section and a certification

9 from the applicant that it will fund the support10 ive services itself if the planned resources do

11 not become available for any reason;

12 ‘‘(I) a certification by the public official re13 sponsible for submitting the comprehensive

14 housing affordability strategy under section 105

15 of the Cranston-Gonzalez National Affordable

16 Housing Act that the proposed activities are

17 consistent with the approved housing strategy

18 of the unit of general local government within

19 which housing assistance under this section will

20 be provided; and

21 ‘‘(J) identification of the specific struc22 tures that the recipient is proposing for assist23 ance.
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1 ‘‘(g) SELECTION CRITERIA.—The Secretary shall es2 tablish selection criteria for a national competition for as3 sistance under this section which shall include—

4 ‘‘(1) the ability of the applicant to develop and

5 operate the proposed assisted housing and support6 ive services program, taking into account the quality

7 of any ongoing program of the applicant;

8 ‘‘(2) geographic diversity among the projects to

9 be assisted;

10 ‘‘(3) the need for a program providing housing

11 assistance and supportive services for eligible per12 sons in the area to be served;

13 ‘‘(4) the quality of the proposed program for

14 providing supportive services and housing assistance;

15 ‘‘(5) the extent to which the proposed funding

16 for the supportive services is or will be available;

17 ‘‘(6) the extent to which the project would meet

18 the needs of the homeless persons proposed to be

19 served by the program;

20 ‘‘(7) the extent to which the program integrates

21 program recipients into the community served by the

22 program;

23 ‘‘(8) the cost-effectiveness of the proposed pro24 gram; and
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1 ‘‘(9) such other factors as the Secretary speci2 fies in regulations to be appropriate for purposes of

3 carrying out the program established by this section

4 in an effective and efficient manner.

5 ‘‘(h) PARTICIPATION OF HOMELESS INDIVIDUALS.—

6 The Secretary shall, by regulation, require each recipient

7 of assistance under this section to provide for the consulta8 tion and participation of not less than one homeless indi9 vidual or former homeless individual on the board of direc10 tors or other equivalent policymaking entity of the recipi11 ent, to the extent that such entity considers and makes

12 policies and decisions regarding any housing assisted

13 under this section or services for such housing. The Sec14 retary may grant waivers to recipients unable to meet the

15 requirement under the preceding sentence if the recipient

16 agrees to otherwise consult with homeless or formerly

17 homeless individuals in considering and making such poli18 cies and decisions.

19 ‘‘(i) REQUIRED AGREEMENTS.—The Secretary may

20 not approve assistance under this section for an applicant

21 unless the applicant agrees—

22 ‘‘(1) to operate the proposed program in ac23 cordance with the provisions of this section;
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1 ‘‘(2) to conduct an ongoing assessment of the

2 housing assistance and supportive services required

3 by the participants in the program;

4 ‘‘(3) to ensure the adequate provision of sup5 portive services to the participants in the program;

6 ‘‘(4) to comply with such other terms and con7 ditions as the Secretary may establish for purposes

8 of carrying out the program in an effective and effi9 cient manner; and

10 ‘‘(5) to the maximum extent practicable, to in11 volve homeless individuals and families, through em12 ployment volunteer services, or otherwise, in con13 structing or rehabilitating housing assisted under

14 this section and in providing services required under

15 this section.

16 ‘‘(j) HOUSING STANDARDS AND RENT REASONABLE17 NESS.—

18 ‘‘(1) STANDARDS REQUIRED.—The Secretary

19 shall require that—

20 ‘‘(A) before any assistance may be pro21 vided to or on behalf of a person, each unit as22 sisted under this section shall be inspected by

23 the applicant directly or by another entity, in24 cluding the local public housing agency, to de25 termine that the unit meets the housing quality
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1 standards under section 8 of the United States

2 Housing Act of 1937 and that the occupancy

3 charge for the dwelling unit is reasonable; and

4 ‘‘(B) the recipient shall make at least an5 nual inspections of each unit assisted under this

6 section during the term of the contract for such

7 assistance.

8 ‘‘(2) PROHIBITION.—No assistance may be pro9 vided under this section for a dwelling unit (A) for

10 which the occupancy charge is not reasonable, or (B)

11 which fails to meet the housing standards, unless the

12 owner promptly corrects the deficiency and the re13 cipient verifies the correction.

14 ‘‘(k) TENANT RENT.—Each tenant of a dwelling unit

15 assisted under this section shall pay as rent an amount

16 determined in accordance with the provisions of section

17 3(a)(1) of the United States Housing Act of 1937.

18 ‘‘(l) ADMINISTRATIVE FEES.—From amounts made

19 available to carry out this section, the Secretary shall

20 make amounts available to pay the entity administering

21 the housing assistance an administrative fee in an amount

22 determined appropriate by the Secretary for the costs of

23 administering the housing assistance.

24 ‘‘(m) OCCUPANCY.—
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1 ‘‘(1) OCCUPANCY AGREEMENT.—The occupancy

2 agreement between a tenant and an owner of a

3 dwelling unit assisted under this section shall be for

4 at least 1 month.

5 ‘‘(2) VACANCY PAYMENTS.—If an eligible per6 son vacates a dwelling unit assisted under this sec7 tion before the expiration of the occupancy agree8 ment, no assistance payment may be made with re9 spect to the unit after the month that follows the

10 month during which the unit was vacated, unless it

11 is occupied by another eligible person.

12 ‘‘(n) TERMINATION OF ASSISTANCE.—

13 ‘‘(1) AUTHORITY.—If an eligible individual who

14 receives assistance under this section violates pro15 gram requirements, the recipient may terminate as16 sistance in accordance with the process established

17 pursuant to paragraph (2).

18 ‘‘(2) PROCEDURE.—In terminating assistance

19 under this paragraph, the recipient shall provide a

20 formal process that recognizes the rights of individ21 uals receiving such assistance to due process of law.

22 ‘‘(o) DEFINITIONS.—For purposes of this section, the

23 following definitions shall apply:

24 ‘‘(1) The term ‘acquired immunodeficiency syn25 drome and related diseases’ has the meaning given
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1 such term in section 853 of the Cranston-Gonzalez

2 National Affordable Housing Act.

3 ‘‘(2) The term ‘applicant’ means a State, unit

4 of general local government, Indian tribe, or public

5 housing agency.

6 ‘‘(3) The term ‘eligible person’ means a home7 less person with disabilities (primarily persons who

8 are seriously mentally ill, have chronic problems with

9 alcohol, drugs, or both, or have acquired

10 immunodeficiency syndrome and related diseases)

11 and the family of such a person.

12 ‘‘(4) The term ‘Indian tribe’ has the meaning

13 given such term in section 102 of the Housing and

14 Community Development Act of 1974.

15 ‘‘(5) The term ‘nonprofit organization’ has the

16 meaning given such term by section 104 of the

17 Cranston-Gonzalez National Affordable Housing

18 Act, and includes community mental health centers

19 established as public nonprofit organizations.

20 ‘‘(6) The term ‘person with disabilities’ has the

21 meaning given such term in section 811 of the Cran22 ston-Gonzalez National Affordable Housing Act.

23 ‘‘(7) The term ‘public housing agency’ has the

24 meaning given such term in section 3(b) of the Unit25 ed States Housing Act of 1937.
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1 ‘‘(8) The term ‘recipient’ means an applicant

2 approved for participation in the program to provide

3 assistance under this section.

4 ‘‘(9) The term ‘Secretary’ means the Secretary

5 of Housing and Urban Development.

6 ‘‘(10) The term ‘seriously mentally ill’ means

7 having a severe and persistent mental or emotional

8 impairment that seriously limits a person’s ability to

9 live independently.

10 ‘‘(11) The term ‘State’ means each of the sev11 eral States, the District of Columbia, the Common12 wealth of Puerto Rico, the Commonwealth of the

13 Northern Mariana Islands, the Virgin Islands,

14 Guam, American Samoa, and any other territory or

15 possession of the United States.

16 ‘‘(12) The term ‘supportive services’ means as17 sistance that the Secretary determines (A) addresses

18 the special needs of eligible persons; and (B) pro19 vides appropriate services or assists such persons in

20 obtaining appropriate services, including health care,

21 mental health services, substance and alcohol abuse

22 services, child care services, case management serv23 ices, counseling, supervision, education, job training,

24 and other services essential for achieving and main-
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1 taining independent living. Inpatient acute hospital

2 care shall not qualify as a supportive service.

3 ‘‘(13) The term ‘unit of general local govern4 ment’ has the meaning given such term in section

5 102 of the Housing and Community Development

6 Act of 1974.

7 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—For

8 purposes of providing assistance under this section, there

9 are authorized to be appropriated $75,000,000 for fiscal

10 year 1995 and $75,000,000 for fiscal year 1996.’’.

11 SEC. 823. RURAL HOMELESSNESS GRANT PROGRAM.

12 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

13 453(l)(1) of the Stewart B. McKinney Homeless Assist14 ance Act (42 U.S.C. 11408(l)(1)), as so redesignated by

15 section 811(3) of this Act, is amended to read as follows:

16 ‘‘(1) IN GENERAL.—There are authorized to be

17 appropriated to carry out this section $30,000,000

18 for fiscal year 1995 and $30,000,000 for fiscal year

19 1996.’’.

20 (b) TRANSFER TO DEPARTMENT OF AGRI21 CULTURE.—Section 453 of the Stewart B. McKinney

22 Homeless Assistance Act, as so redesignated by section

23 811(3) of this Act, is amended—
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1 (1) in subsection (a), by striking ‘‘Secretary of

2 Housing and Urban Development’’ and inserting

3 ‘‘Secretary of Agriculture’’; and

4 (2) in subsection (k), by striking paragraph (3)

5 and inserting the following new paragraph:

6 ‘‘(3) The term ‘Secretary’ means the Secretary

7 of Agriculture.’’.

8 SEC. 824. CLERICAL AMENDMENT.

9 The table of contents in section 101(b) of the Stewart

10 B. McKinney Homeless Assistance Act is amended by

11 striking the items relating to title IV and inserting the

12 following new items:

‘‘TITLE IV—HOUSING ASSISTANCE

‘‘Subtitle A—Flexible Grant Program

‘‘CHAPTER 1—GENERAL PROVISIONS

‘‘Sec. 401. Purposes.

‘‘Sec. 402. Authorization of appropriations.

‘‘Sec. 403. Definitions.

‘‘Sec. 404. Provision of grants.

‘‘Sec. 405. Comprehensive homeless assistance.

‘‘Sec. 406. Matching requirements.

‘‘Sec. 407. Responsibilities of grantees and project sponsors.

‘‘Sec. 408. Application.

‘‘Sec. 409. Allocation and distribution of funds.

‘‘Sec. 410. Administration of program.

‘‘Sec. 411. Citizen participation.

‘‘Sec. 412. Applicability of other provisions.

‘‘Sec. 413. Reports, reviews, and audits.

‘‘Sec. 414. Nondiscrimination in programs and activities.

‘‘Sec. 415. Consultation.

‘‘Sec. 416. Records, reports, and audits.

‘‘Sec. 417. Reports to Congress.

‘‘CHAPTER 2—ELIGIBLE ACTIVITIES

‘‘Sec. 431. Homelessness prevention.

‘‘Sec. 432. Emergency shelter.

‘‘Sec. 433. Supportive housing for the homeless.

‘‘Sec. 434. Safe havens for homeless individuals.
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‘‘Sec. 435. Shelter plus care.

‘‘Sec. 436. Administrative and capacity-building expenses.

‘‘Sec. 437. Innovative homeless initiatives.

‘‘Sec. 438. Other approved activities.

‘‘Subtitle B—Other Permanent Housing Assistance Programs for the

Homeless

‘‘Sec. 451. Section 8 assistance for single room occupancy dwellings.

‘‘Sec. 452. Section 8 assistance for shelter plus care single room occupancy

dwellings.

‘‘Sec. 453. Rural homelessness grant program.

‘‘Sec. 454. Use of FMHA inventory for transitional housing for homeless

persons and for turnkey housing.’’.

1 CHAPTER 3—MISCELLANEOUS HOMELESS

2 HOUSING PROVISIONS

3 SEC. 831. FHA SINGLE FAMILY PROPERTY DISPOSITION.

4 Section 1407 of the Housing and Community Devel5 opment Act of 1992 (Public Law 102–550; 106 Stat.

6 4034) is amended by adding at the end the following new

7 subsection:

8 ‘‘(d) DEMONSTRATION PROGRAM FOR IMMEDIATE

9 AVAILABILITY.—

10 ‘‘(1) AUTHORITY.—Notwithstanding sub11 sections (a) and (b), in carrying out the program re12 ferred to in subsection (a) in each of 3 States se13 lected by the Secretary of Housing and Urban De14 velopment, during the 18-month period beginning on

15 the date of the enactment of the Housing and Com16 munity Development Act of 1994 the Secretary shall

17 make any eligible property available for lease under

18 such program without listing and making such prop-
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1 erty generally available for sale for any intervening

2 period.

3 ‘‘(2) DISCOUNT.—Any property made available

4 for sale pursuant to this subsection under the pro5 gram referred to in subsection (a) shall be made

6 available at a price equal to the fair market value

7 of the property less a 20 percent discount.

8 ‘‘(3) STATE AND LOCAL TAXES.—The provi9 sions of subsection (c) shall apply to the demonstra10 tion program under this subsection.

11 ‘‘(4) REPORT.—Upon the expiration of the 18-

12 month period referred to in paragraph (1), the Sec13 retary of Housing and Urban Development shall

14 submit a report to the Congress analyzing the extent

15 to which single family properties are made available

16 for use by the homeless under the program referred

17 to in subsection (a), as carried out under subsections

18 (a) and (b) and as carried out under this subsection.

19 The report shall also analyze the effect of carrying

20 out the program under each of such provisions on

21 the Mutual Mortgage Insurance Fund.’’.
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1 SEC. 832. STRATEGY TO ELIMINATE UNFIT TRANSIENT FA2 CILITIES.

3 Section 825(b) of the Cranston-Gonzalez National

4 Affordable Housing Act (42 U.S.C. 11301 note) is amend5 ed—

6 (1) in paragraph (2), by striking ‘‘and’’ at the

7 end;

8 (2) in paragraph (3), by striking the period at

9 the end and inserting ‘‘; and’’; and

10 (3) by adding at the end the following new

11 paragraph:

12 ‘‘(4) that States and units of general local gov13 ernment shall eliminate the use of unfit transient fa14 cilities as housing for homeless families with children

15 not later than July 1, 1997, in the manner provided

16 under the strategy.’’.

17 Subtitle B—Interagency Council on

18 the Homeless

19 SEC. 841. AUTHORIZATION OF APPROPRIATIONS.

20 Section 208 of the Stewart B. McKinney Homeless

21 Assistance Act (42 U.S.C. 11318) is amended to read as

22 follows:

23 ‘‘SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

24 ‘‘There are authorized to be appropriated to carry out

25 this title $1,609,890 for fiscal year 1995 and $1,658,187

26 for fiscal year 1996.’’.
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1 SEC. 842. CHAIRPERSON.

2 Section 202(b) of the Stewart B. McKinney Homeless

3 Assistance Act (42 U.S.C. 11312(b) is amended to read

4 as follows:

5 ‘‘(b) CHAIRPERSON AND VICE CHAIRPERSON.—

6 ‘‘(1) CHAIRPERSON.—The Council shall elect a

7 Chairperson from among its members, who shall

8 have a term of 2 years. A member of the Council by

9 reason of any of paragraphs (1) through (16) of

10 subsection (a) who serves as Chairperson for a term

11 may not be elected to serve as Chairperson for the

12 succeeding term. The preceding sentence shall not

13 apply to any member serving as Chairperson on the

14 date of the enactment of the Housing and Commu15 nity Development Act of 1994.

16 ‘‘(2) VICE CHAIRPERSON.—The Vice Chair17 person of the Council shall have a term of 2 years

18 and shall be—

19 ‘‘(A) the Secretary of Housing and Urban

20 Development, if such Secretary is not elected as

21 the Chairperson of the Council; or

22 ‘‘(B) elected by the Council from among its

23 members, if the Secretary of Housing and

24 Urban Development is elected as the Chair25 person of the Council.’’.
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1 SEC. 843. EXTENSION.

2 Section 209 of the Stewart B. McKinney Homeless

3 Assistance Act (42 U.S.C. 11319) is amended by striking

4 ‘‘October 1, 1994’’ and inserting ‘‘October 1, 1996’’.

5 Subtitle C—Federal Emergency

6 Management Agency Food and

7 Shelter Program

8 SEC. 851. AUTHORIZATION OF APPROPRIATIONS.

9 Section 322 of the Stewart B. McKinney Homeless

10 Assistance Act (42 U.S.C. 11352) is amended to read as

11 follows:

12 ‘‘SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

13 ‘‘There are authorized to be appropriated to carry out

14 this title $130,000,000 for fiscal year 1995 and

15 $130,000,000 for fiscal year 1996.’’.

16 SEC. 852. PROHIBITION OF ASSISTANCE TO ILLEGAL

17 ALIENS.

18 Section 313 of the Stewart B. McKinney Homeless

19 Assistance Act (42 U.S.C. 11343) is amended by adding

20 at the end the following new subsection:

21 ‘‘(c) PROHIBITION OF ASSISTANCE TO ILLEGAL

22 ALIENS.—

23 ‘‘(1) IN GENERAL.—Notwithstanding any provi24 sion of law other than paragraph (2), no amounts

25 provided to carry out this title may be used to pro26 vide shelter, food, supportive services, or any other
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1 assistance to any person who, at the time the person

2 applies for, receives, or attempts to receive any as3 sistance from a program assisted under this title, is

4 not a citizen or national of the United States, a per5 manent resident alien, an asylee or asylee applicant,

6 a refugee, a parolee, a nonimmigrant in status under

7 the Immigration and Nationality Act, or admitted

8 with temporary protected status, a temporary resi9 dent, or a person granted family unity protection

10 status under such Act.

11 ‘‘(2) EXCEPTION.—The Director may authorize

12 the use of amounts provided to carry out this title

13 for providing shelter, food, supportive services, and

14 other assistance for persons described in paragraph

15 (1) in such instances as the Director considers ap16 propriate and such use shall be subject to any rules

17 or guidelines established by the Director, except

18 that—

19 ‘‘(A) such assistance may not be provided

20 for such a person for a period that exceeds 7

21 days; and

22 ‘‘(B) any local government, private non23 profit organization, or other service provider

24 providing such assistance under this paragraph

25 to such a person shall notify the Immigration
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1 and Naturalization Service of the identity and

2 location of the person during the 7-day period

3 beginning upon the initial provision of such as4 sistance for the person.

5 ‘‘(3) INAPPLICABILITY.—This subsection shall

6 not apply in the case of any disaster declared by the

7 President under the Robert T. Stafford Disaster Re8 lief and Emergency Assistance Act.’’.

9 Subtitle D—Availability of Prop10 erty at Military Bases for Rede11 velopment and Homeless Use

12 SEC. 861. AVAILABILITY OF PROPERTY AT MILITARY BASES

13 FOR REDEVELOPMENT AND HOMELESS USE.

14 (a) AVAILABILITY OF MILITARY PROPERTY TO AS15 SIST THE HOMELESS.—Title V of the Stewart B. McKin16 ney Homeless Assistance Act (42 U.S.C. 11411 et seq.)

17 is amended by adding at the end the following new section:

18 ‘‘SEC. 503. SPECIAL PROCEDURES GOVERNING AVAILABIL19 ITY OF PROPERTY AT CLOSED OR RE20 ALIGNED MILITARY BASES TO ASSIST THE

21 HOMELESS.

22 ‘‘(a) SOLE AUTHORITY FOR AVAILABILITY OF PROP23 ERTY.—(1) Property at a military installation closed or

24 realigned under a base closure law shall not be available
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1 for use to assist the homeless except as provided by this

2 section.

3 ‘‘(2) Until after the appropriate time periods set forth

4 in this section have expired, the Secretary of Housing and

5 Urban Development shall neither request information con6 cerning buildings or property covered by paragraph (1),

7 nor identify such buildings or property as suitable for use

8 to assist the homeless pursuant to section 501(a), other

9 than under the procedures set forth in this section.

10 ‘‘(3) For purposes of this section:

11 ‘‘(A) The term ‘base closure law’ means the De12 fense Authorization Amendments and Base Closure

13 and Realignment Act (title II of Public Law 100–

14 526; 10 U.S.C. 2687 note) and the Defense Base

15 Closure and Realignment Act of 1990 (part A of

16 title XXIX of Public Law 101–510; 10 U.S.C. 2687

17 note).

18 ‘‘(B) The term ‘community’ means the political

19 jurisdictions that comprise the redevelopment au20 thority established with respect to a military instal21 lation to be closed or realigned under a base closure

22 law.

23 ‘‘(b) IDENTIFICATION AND NOTIFICATION OF PROP24 ERTY FOR REDEVELOPMENT.—(1) Not later than the date

25 on which the Secretary of Defense completes the final de-
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1 termination under a base closure law regarding whether

2 another department or agency of the Federal Government

3 has identified a use for any portion of a military installa4 tion to be closed or realigned under such base closure law,

5 the Secretary of Defense shall—

6 ‘‘(A) complete any determinations or surveys

7 necessary to identify whether any building or prop8 erty described in paragraph (2) at such installation

9 is excess property, surplus property, or unutilized or

10 underutilized property;

11 ‘‘(B) submit to the Secretary of Housing and

12 Urban Development written notice containing infor13 mation on such buildings or property and specifying

14 the redevelopment authority that exists with respect

15 to the installation; and

16 ‘‘(C) submit to the redevelopment authority

17 with respect to the installation written notice of the

18 properties available for use in developing a reuse

19 plan pursuant to subsection (d).

20 ‘‘(2) The buildings and property referred to in para21 graph (1)(A) are any buildings or property located at the

22 installation involved for which no use is identified, or of

23 which no Federal department or agency will accept trans24 fer, pursuant to the final determination of transferability

25 referred to in paragraph (1).
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1 ‘‘(3) Notice submitted to the Secretary of Housing

2 and Urban Development under paragraph (1)(B) regard3 ing excess property, surplus property, or unutilized or

4 underutilized property at a military installation shall be

5 available only for the purpose of permitting the redevelop6 ment authority with respect to the installation to develop

7 a reuse plan for the property that makes available a rea8 sonable amount of property or assistance to the homeless

9 in the community.

10 ‘‘(4) Within 60 days after receiving a written notice

11 under paragraph (1)(B), the Secretary of Housing and

12 Urban Development shall publish in the Federal Register

13 information regarding the property described in the notice

14 and available for use to develop a reuse plan pursuant to

15 subsection (d) and information specifying the redevelop16 ment authority responsible for preparing the reuse plan

17 under subsection (d).

18 ‘‘(c) PERIOD FOR DEVELOPMENT OF REUSE PLAN.—

19 (1) The Secretary of Defense shall give each redevelop20 ment authority that receives a written notice under sub21 section (b)(1)(C) a one-year period from the date of the

22 receipt of the notice in which to develop a reuse plan under

23 subsection (d) for the buildings and property identified in

24 the notice.
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1 ‘‘(2) The Secretary of Defense may extend the period

2 provided under paragraph (1) for not more than an addi3 tional 6 months to permit a redevelopment authority to

4 complete its reuse plan.

5 ‘‘(d) REUSE PLAN TO MEET THE NEEDS OF THE

6 HOMELESS.—(1) Not later than the end of the period pro7 vided under subsection (c) to a redevelopment authority,

8 the redevelopment authority shall submit in writing to the

9 Secretary of Defense and the Secretary of Housing and

10 Urban Development a reuse plan for the buildings and

11 property identified in the written notice submitted to the

12 redevelopment authority under subsection (b)(1)(C) at the

13 military installation for which the redevelopment authority

14 is established. The reuse plan may be a part of, or a sup15 plement to, the redevelopment plan otherwise authorized

16 under a base closure law for a military installation.

17 ‘‘(2) The reuse plan shall include provisions for use

18 to assist the homeless, shall enumerate homeless providers

19 and public agencies consulted regarding the plan, and

20 shall include a commitment to enter into legally binding

21 agreements to make available a reasonable amount of

22 property or assistance to the homeless in the community.

23 Such property may consist of buildings and property lo24 cated at the military installation to be closed or realigned

25 or off of the installation.
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1 ‘‘(e) REVIEW OF REUSE PLAN BY SECRETARY OF

2 HOUSING AND URBAN DEVELOPMENT.—(1) The Sec3 retary of Defense shall consider a reuse plan submitted

4 under subsection (d) for purposes of disposal of property

5 at the military installation for which the reuse plan is de6 veloped unless the Secretary of Housing and Urban Devel7 opment, within 60 days of receipt of the reuse plan, deter8 mines under paragraph (2) that the reuse plan does not

9 make available a reasonable amount of property or assist10 ance to the homeless in the community involved.

11 ‘‘(2) The Secretary of Housing and Urban Develop12 ment shall determine that a reuse plan makes available

13 a reasonable amount of property and assistance to the

14 homeless within the community involved if—

15 ‘‘(A) the reuse plan includes a commitment to

16 enter into legally binding agreements to provide as17 sistance to the homeless within the community;

18 ‘‘(B) the reuse plan balances the need for pro19 viding property and assistance to the homeless with

20 the overall reuse plan for the military installation;

21 ‘‘(C) the reuse plan was developed in consulta22 tion with local representatives of the homeless, in23 cluding representatives of the applicable homeless

24 assistance planning board established under section
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1 411(b) and representatives of local nongovernmental

2 homeless providers;

3 ‘‘(D) the reuse plan is consistent with the com4 prehensive housing affordability strategy under sec5 tion 105 of the Cranston-Gonzalez National Afford6 able Housing Act; and

7 ‘‘(E) the reuse plan specifies the manner in

8 which property or assistance will be made available

9 for homeless assistance.

10 ‘‘(3) In making a determination under paragraph (2)

11 with respect to a reuse plan, the Secretary of Housing and

12 Urban Development shall—

13 ‘‘(A) consider the population of homeless in the

14 community involved, the extent of current services to

15 assist the homeless within the community, the extent

16 of the commitment of resources by local govern17 ments in the community to assist the homeless with18 in the community, the need for additional services to

19 assist the homeless within the community, and the

20 suitability of the property for serving the needs of

21 the homeless; and

22 ‘‘(B) solicit and consider comments on the

23 reuse plans from homeless persons or their rep24 resentatives in the community.
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1 ‘‘(f) EFFECT OF FAILURE TO MEET THE NEEDS OF

2 THE HOMELESS.—If the Secretary of Housing and Urban

3 Development determines under subsection (e) that a reuse

4 plan does not make available a reasonable amount of prop5 erty or assistance to the homeless in the community in6 volved, the Secretary shall submit to the redevelopment

7 authority submitting the reuse plan and to the Secretary

8 of Defense a report containing the reasons for the deter9 mination. The Secretary of Housing and Urban Develop10 ment shall submit the report within 30 days of making

11 the determination.

12 ‘‘(2) A redevelopment authority shall have an addi13 tional 6 months from the date of receipt of a report under

14 paragraph (1) to resubmit to the Secretary of Housing

15 and Urban Development and the Secretary of Defense a

16 final reuse plan which will reasonably address the needs

17 of the homeless, as identified by the Secretary of Housing

18 and Urban Development under paragraph (1).

19 ‘‘(3) If the Secretary of Housing and Urban Develop20 ment determines that a final reuse plan submitted under

21 paragraph (2) fails to reasonably address the needs of the

22 homeless, the Secretary shall, within 30 days of making

23 such determination, identify those buildings and other

24 property covered by the reuse plan that are suitable and

25 available for use to assist the homeless. The Secretary
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1 shall make such identification according to section 501(a).

2 Buildings and property identified as suitable and available

3 for use to assist the homeless under this paragraph shall

4 be made available for such purposes under section 501.

5 ‘‘(g) EFFECT OF ABSENCE OF REDEVELOPMENT AU6 THORITY OR EXCLUSION FROM REUSE PLAN.—In the

7 case of buildings or property to be disposed under a base

8 closure law, but for which no reuse authority is identified

9 by the Secretary of Defense or which are not included in

10 a final reuse plan submitted by a reuse authority, the Sec11 retary of Housing and Urban Development shall deter12 mine the suitability of such buildings or property for use

13 to assist the homeless according to section 501(a). Build14 ings and property identified as suitable and available for

15 use to assist the homeless under this paragraph shall be

16 made available for such purposes under section 501.

17 ‘‘(h) APPLICATION OF SECTION.—(1) Except as pro18 vided in paragraph (2), this section shall apply only with

19 respect to property, at a military installation to be closed

20 or realigned under a base closure law, that has not been

21 included, as of July 1, 1994, in a list published by the

22 Secretary of Housing and Urban Development under sec23 tion 501(c)(1)(A).

24 ‘‘(2) In the case of the military installations specified

25 in paragraph (3), this section shall apply with respect to
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1 the disposal of all property at the installations regardless

2 of the date on which property at such installations was

3 included in a list published by the Secretary of Housing

4 and Urban Development under section 501(c)(1)(A).

5 ‘‘(3) The military installations referred to in para6 graph (2) are as follows:

7 ‘‘(A) Cameron Station Military Garrison, Alex8 andria, Virginia.

9 ‘‘(B) Manhattan Beach, New York, New York.

10 ‘‘(C) Naval Station New York.’’.

11 (b) CONFORMING AMENDMENT TO BASE CLOSURE

12 LAWS.—(1) Section 204(b)(6) of the Defense Authoriza13 tion Amendments and Base Closure and Realignment Act

14 (title II of Public Law 100–526; 10 U.S.C. 2687 note)

15 is amended by adding at the end the following new sub16 paragraph:

17 ‘‘(H) This paragraph shall apply only with respect

18 to buildings and property at a military installation to be

19 closed or realigned under this title that has been included,

20 before July 1, 1994, in a list published by the Secretary

21 of Housing and Urban Development under section

22 501(c)(1)(A) of the Stewart B. McKinney Homeless As23 sistance Act (42 U.S.C. 11411(c)(1)(A)). This paragraph

24 shall not apply to property at an installation specified in

25 section 503(h)(3) of such Act.’’.
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1 (2) Section 2905(b)(6) of the Defense Base Closure

2 and Realignment Act of 1990 (part A of title XXIX of

3 Public Law 101–510; 10 U.S.C. 2687 note) is amended

4 by adding at the end the following new subparagraph:

5 ‘‘(H) This paragraph shall apply only with respect

6 to buildings and property at a military installation to be

7 closed or realigned under this part that has been included,

8 before July 1, 1994, in a list published by the Secretary

9 of Housing and Urban Development under section

10 501(c)(1)(A) of the Stewart B. McKinney Homeless As11 sistance Act (42 U.S.C. 11411(c)(1)(A)). This paragraph

12 shall not apply to property at an installation specified in

13 section 503(h)(3) of such Act.’’.

14 TITLE IX—ASSURANCE AGAINST

15 COST SHIFTING

16 SEC. 901. ASSURANCE AGAINST COST SHIFTING.

17 Notwithstanding section 852 of this Act, none of the

18 funds made available in this Act may be used to imple19 ment, administer, or enforce any requirement or restric20 tion established in this Act when the requirement or re21 striction—

22 (1) is based on immigration status; and

23 (2) either—

24 (A) imposes any additional administrative

25 burden on (i) the Federal Government; (ii) any
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1 State or local government; or (iii) any contrac2 tor or grantee receiving such funds; or

3 (B) shifts the cost of providing any service

4 from the Federal Government to (i) any State

5 or local government; or (ii) any contractor or

6 grantee receiving such funds.

7 There are authorized to be appropriated such sums as may

8 be necessary to carry out section 852 of this Act.

Passed the House of Representatives July 22, 1994.

Attest:

Clerk.

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