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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3838 Reported in House (RH)]

                                                 Union Calendar No. 332

103d CONGRESS

  2d Session

                               H. R. 3838

                          [Report No. 103-607]

_______________________________________________________________________

                                 A BILL

  To amend and extend certain laws relating to housing and community 
                  development, and for other purposes.

_______________________________________________________________________

                             July 15, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
                                                 Union Calendar No. 332
103d CONGRESS
  2d Session
                                H. R. 3838

                          [Report No. 103-607]

  To amend and extend certain laws relating to housing and community 
                  development, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 1994

 Mr. Gonzalez (for himself, Mrs. Roukema, Mr. Neal of North Carolina, 
Mr. LaFalce, Mr. Vento, Mr. Frank of Massachusetts, Mr. Kanjorski, Mr. 
Kennedy, Mr. Flake, Mr. Mfume, Ms. Waters, Mr. Bacchus of Florida, Mr. 
 Klein, Mr. Deutsch, Mr. Gutierrez, Mr. Rush, Ms. Velazquez, Mr. Wynn, 
    Mr. Fields of Louisiana, Mr. Watt, Mr. Hinchey, and Ms. Furse) 
 introduced the following bill; which was referred to the Committee on 
                   Banking, Finance and Urban Affairs

                             April 25, 1994

Additional sponsors: Mr. Neal of Massachusetts, Mr. Foglietta, and Mr. 
                                Sanders

                             July 15, 1994

     Additional sponsors: Mr. Boucher, and Mr. Johnston of Florida

                             July 15, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           February 10, 1994]

_______________________________________________________________________

                                 A BILL

 
  To amend and extend certain laws relating to housing and community 
                  development, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Housing and 
Community Development Act of 1994''.
    (b) Table of Contents.--The table of contents for 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. Demolition and disposition of public housing.
Sec. 125. Public housing resident opportunity.
Sec. 126. Public housing family investment centers.
Sec. 127. Revitalization of severely distressed public housing.
Sec. 128. Program monitoring and technical assistance.
Sec. 129. Applicability of public housing amendments to Indian housing.
Sec. 130. Early childhood development program.
Sec. 131. Indian housing childhood development services.
Sec. 132. Public housing one-stop perinatal services demonstration.
Sec. 133. Sale of certain scattered site public housing.
Sec. 134. Eligibility of certain public housing for demolition.
Sec. 135. Demonstration program for innovative public housing agencies 
                            and resident management corporations.
Sec. 136. Demonstration program for occupancy of otherwise vacant 
                            public housing units by moderate-income 
                            families.
Sec. 137. Study of adequacy of payment in lieu of taxes.

                    Subtitle C--Section 8 Assistance

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.
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.

                 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.

                 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. Elimination of restrictions regarding new construction.
Sec. 406. Authority to use amounts borrowed from family members for 
                            downpayments.
Sec. 407. Indemnification for multifamily housing project managers.
Sec. 408. Extension of multifamily housing mortgage auction provisions.
Sec. 409. Streamlined refinancing for HUD-held mortgages.
Sec. 410. Home equity conversion mortgages for elderly homeowners.
Sec. 411. Single family risk-sharing mortgage insurance program.
Sec. 412. Delegation of single family mortgage insuring authority to 
                            direct endorsement mortgagees.
Sec. 413. Eligibility of mortgages on homes on leased land owned by 
                            community land trusts.
Sec. 414. Insurance of 2-step single family mortgages.
Sec. 415. Mortgage limits for multifamily projects in high-cost areas.
Sec. 416. Calculation of credit subsidy for FHA refinancings and offset 
                            of negative subsidies.
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

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. Management information systems.
Sec. 603. Eligible activities.
Sec. 604. Reallocations.
Sec. 605. Limitation on extent of use of loan guarantees for housing 
                            purposes.
Sec. 606. Economic development grants.
Sec. 607. Use of UDAG recaptures.
Sec. 608. 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.

    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.
Sec. 813. Transition provisions.

  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. Innovative homeless program.
Sec. 832. FHA single family property disposition.

            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. 2. EFFECTIVE DATE.

    The provisions of this Act and the amendments made by this Act 
shall take effect and shall apply upon the date of the enactment of 
this Act, unless such provisions or amendments specifically provide for 
effectiveness or applicability upon another date certain.

                      TITLE I--HOUSING ASSISTANCE

                     Subtitle A--General Provisions

SEC. 101. LOW-INCOME HOUSING AUTHORIZATION.

    (a) Aggregate Budget Authority.--Section 5(c)(6) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(c)(6)) is amended by adding 
at the end the following new sentence: ``The aggregate amount of budget 
authority that may be obligated for assistance referred to in paragraph 
(7) is increased (to the extent approved in appropriation Acts) by the 
sum of the amounts provided in paragraph (7)(A) on October 1, 1994, and 
by the sum of the amounts provided in paragraph (7)(B) on October 1, 
1995.''.
    (b) Utilization of Budget Authority.--Section 5(c)(7) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(c)(7)) is amended by 
striking the paragraph designation and all that follows through the end 
of subparagraph (B) and inserting the following:
    ``(7)(A) Using the additional budget authority provided under 
paragraph (6) and the balances of budget authority that become 
available during fiscal year 1995, the Secretary shall, to the extent 
approved in appropriation Acts, reserve authority to enter into 
obligations aggregating--
            ``(i) for public housing grants under subsection (a)(2), 
        not more than $861,000,000, of which amount not more than 
        $263,000,000 shall be available for Indian housing;
            ``(ii) for assistance under section 8, not more than 
        $2,674,000,000, of which not more than $75,000,000 shall be 
        available for assistance under section 8 for family unification 
        under subsection (q)(3) of such section;
            ``(iii) for assistance under section 5(j)(2) for 
        substantial redesign, reconstruction, and redevelopment of 
        existing obsolete public housing projects and buildings, not 
        more than $114,000,000;
            ``(iv) for comprehensive improvement assistance grants 
        under section 14(k), not more than $3,230,000,000;
            ``(v) for assistance under section 8 for property 
        disposition, not more than $733,000,000;
            ``(vi) for assistance under section 8 for loan management, 
        not more than $150,000,000;
            ``(vii) for extensions of contracts expiring under section 
        8, $5,092,000,000 which shall be for 5-year contracts for 
        assistance under section 8 and vouchers under section 8(o) (as 
        in effect before the date of the enactment of this Act) and for 
        loan management assistance under such section;
            ``(viii) for amendments to contracts under section 8, such 
        sums as may be necessary;
            ``(ix) for public housing lease adjustments and amendments, 
        such sums as may be necessary;
            ``(x) for assistance under section 18(g) for replacement 
        housing for units demolished or disposed of under section 18, 
        not more than $333,450,000;
            ``(xi) for conversions from leased housing contracts under 
        section 23 of this Act (as in effect immediately before the 
        enactment of the Housing and Community Development Act of 1974) 
        to assistance under section 8, such sums as may be necessary; 
        and
            ``(xii) for grants under section 24 for revitalization of 
        severely distressed public housing, not more than $500,000,000.
    ``(B) Using the additional budget authority provided under 
paragraph (6) and the balances of budget authority that become 
available during fiscal year 1996, the Secretary shall, to the extent 
approved in appropriation Acts, reserve authority to enter into 
obligations aggregating--
            ``(i) for public housing grants under subsection (a)(2), 
        not more than $862,000,000, of which amount not more than 
        $264,000,000 shall be available for Indian housing;
            ``(ii) for assistance under section 8, not more than 
        $2,800,000,000, of which not more than $75,000,000 shall be 
        available for assistance under section 8 for family unification 
        under subsection (q)(3) of such section;
            ``(iii) for assistance under section 5(j)(2) for 
        substantial redesign, reconstruction, and redevelopment of 
        existing obsolete public housing projects and buildings, not 
        more than $120,000,000;
            ``(iv) for comprehensive improvement assistance grants 
        under section 14(k), not more than $3,241,000;
            ``(v) for assistance under section 8 for property 
        disposition, not more than $800,000,000;
            ``(vi) for assistance under section 8 for loan management, 
        not more than $155,000,000;
            ``(vii) for extensions of contracts expiring under section 
        8, $6,000,000,000 which shall be for 5-year contracts for 
        assistance under section 8 and vouchers under section 8(o) (as 
        in effect before the date of the enactment of the Housing and 
        Community Development Act of 1994) and for loan management 
        assistance under such section;
            ``(viii) for amendments to contracts under section 8, such 
        sums as may be necessary;
            ``(ix) for public housing lease adjustments and amendments, 
        such sums as may be necessary;
            ``(x) for assistance under section 18(g) for replacement 
        housing for units demolished or disposed of under section 18, 
        not more than $273,600,000;
            ``(xi) for conversions from leased housing contracts under 
        section 23 of this Act (as in effect immediately before the 
        enactment of the Housing and Community Development Act of 1974) 
        to assistance under section 8, such sums as may be necessary; 
        and
            ``(xii) for grants under section 24 for revitalization of 
        severely distressed public housing, not more than 
        $550,000,000.''.

SEC. 102. RESIDENT REPRESENTATION IN PUBLIC HOUSING AGENCIES.

    (a) Representation.--Section 2 of the United States Housing Act of 
1937 (42 U.S.C. 1437) is amended--
            (1) by inserting ``(a) Policy.--'' after ``Sec. 2.'';
            (2) by striking the last sentence; and
            (3) by adding at the end the following new subsection:
    ``(b) Governance of Public Housing Agencies.--
            ``(1) Prohibition.--No person may be barred from serving on 
        the board of directors or other similar governing body of a 
        local public housing agency because of his or her tenancy in a 
        low-income project.
            ``(2) Resident membership.--Each public housing agency 
        shall have a board of directors or other similar governing 
        body, of which not less than one-quarter of the members shall 
        be residents of housing units administered or assisted by the 
        agency.
            ``(3) Conflicts of interest.--The Secretary shall establish 
        guidelines to prevent conflicts of interest on the part of 
        resident members of the board or directors or governing body of 
        a public housing agency. Such guidelines shall ensure that 
        resident members are able to participate fully in policy and 
        financial matters within the control of the board or body.
            ``(4) Full participation.--No public housing agency may 
        limit or restrict the capacity or offices in which a member of 
        such board or body may serve on such board or body solely 
        because of the member's status as a resident member.
            ``(5) Definition.--For purposes of this subsection, the 
        term `resident member' means a member of the board of directors 
        or other similar governing body of a public housing agency who 
        is a resident of a housing unit administered or assisted by the 
        agency.''.
    (b) Conforming Amendment.--The first sentence of section 3(b)(6) of 
the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(6)) is 
amended by inserting before the period at the end the following: ``and 
complies with the requirements under section 2(b)''.

SEC. 103. DETERMINATION OF MEDIAN INCOME.

    (a) In General.--Section 3(b)(2) of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(b)(2)) is amended--
            (1) in the 4th sentence--
                    (A) by striking ``County'' and inserting ``and 
                Rockland Counties''; and
                    (B) by inserting ``each'' before ``such county''; 
                and
            (2) in the last sentence--
                    (A) by striking ``County'' the 1st place it appears 
                and inserting ``or Rockland Counties''; and
                    (B) by striking ``County'' the 2d place it appears 
                and inserting ``and Rockland Counties''.
    (b) Regulations and Effective Date.--The Secretary of Housing and 
Urban Development shall issue regulations implementing the amendments 
made by subsection (a) not later than the expiration of the 90-day 
period beginning on the date of the enactment of this Act. The 
regulations may not take effect until after September 30, 1993.

SEC. 104. DEFINITION OF FAMILIES.

    The first sentence of section 3(b)(3)(B) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is amended by inserting 
``or, in the case of disabled families, other household members'' after 
``spouses''.

SEC. 105. FAMILY SELF-SUFFICIENCY PROGRAM.

    (a) Scope.--Section 23(b)(3) of the United States Housing Act of 
1937 (42 U.S.C. 1437u(b)(3)) is amended to read as follows:
            ``(3) Scope.--Each public housing agency required to carry 
        out a local program under this section shall make assistance 
        under the program available in a fiscal year, subject only to 
        the availability of amounts for such assistance, to a number of 
        families who are assisted by the agency under section 8 or 
        reside in public housing of the agency that is equivalent to 
        the sum of--
                    ``(A) the increase for such year in the number of 
                families assisted under section 8 (as compared to the 
                preceding year); and
                    ``(B) the increase for such year in the number of 
                public housing dwelling units made available by the 
                agency (as compared to the preceding year).''.
    (b) Voluntary Escrow Savings Account.--Section 23(d) of the United 
States Housing Act of 1937 (42 U.S.C. 1437u(d)) is amended--
            (1) in paragraph (2)--
                    (A) in the 1st sentence, by striking ``shall'' and 
                inserting ``may'';
                    (B) in the 2d sentence, by inserting after ``area 
                median income'' the following: ``that choose to escrow 
                amounts under this paragraph'';
                    (C) in the 2d sentence, by striking ``shall'' and 
                inserting ``may''; and
                    (D) by striking the 3d and 4th sentences and 
                inserting the following new sentence: ``Amounts in the 
                escrow account may be withdrawn by the participating 
                family upon the successful performance of the 
                obligations of the family under the contract of 
                participation entered into by the family under 
                subsection (c), as determined according to the specific 
                goals and terms included in the contract, and under 
                other circumstances, as determined by the public 
                housing agency with the approval of the Secretary.''; 
                and
            (2) by striking the 2d sentence of paragraph (3) and 
        inserting the following new sentence: ``The plan may require 
        the establishment of escrow savings accounts under paragraph 
        (2), a description of the procedures for release of escrowed 
        amounts, and any other incentives designed by the public 
        housing agency.''.
    (c) Service Coordinators.--Section 23 of the United States Housing 
Act of 1937 (42 U.S.C. 1437u) is amended--
            (1) in the last sentence of subsection (b)(1), by inserting 
        ``under section 671 of the Housing and Community Development 
        Act of 1992'' after ``service coordinator''; and
            (2) in subsection (h)--
                    (A) in paragraph (2), by striking ``(including the 
                costs of employing a full-time service coordinator)''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Contract adjustments for service coordinators.--If, 
        in providing rental assistance under section 8 of the United 
        States Housing Act of 1937 for a public housing agency carrying 
        out a local program under this section in any fiscal year, the 
        Secretary increases the amount provided for the agency so that 
        the number of families assisted by the agency in the year is 
        greater than the number of families assisted in the preceding 
        year, the Secretary may increase the amount annually provided 
        for the agency to provide for the costs of employing or 
        otherwise retaining the services of one or more service 
        coordinators referred to in subsection (b)(1) of this section. 
        The Secretary may also, under any existing contract for 
        assistance under section 8, include the cost of employing such 
        service coordinators to the extent that amounts for amendments 
        to such contracts are available.''.
    (d) Repeal of Incentive Award Allocation.--Section 23 of the United 
States Housing Act of 1937 (42 U.S.C. 1437u) is amended--
            (1) by striking subsection (i); and
            (2) by redesignating subsections (j) through (o) as 
        subsections (i) through (n), respectively.
    (e) Technical Amendment.--Section 23(h)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437u(h)(2)) is amended by striking the 
last sentence.

SEC. 106. USE OF AMOUNTS IN HEADQUARTERS RESERVE.

    (a) Use for Fair Housing Activities.--Section 213(d)(4)(A) of the 
Housing and Community Development Act of 1974 (42 U.S.C. 1439(d)(4)(A)) 
is amended--
            (1) in clause (iii), by striking ``and'' at the end;
            (2) in clause (iv) by striking the period at the end and 
        inserting a semicolon; and
            (3) by inserting after clause (iv) the following new 
        clauses:
            ``(v) fair housing activities and cash payments, in 
        connection with the settlement of civil rights litigation 
        (excluding litigation brought by an employee or former employee 
        of the Secretary); and
            ``(vi) in the case of financial assistance under the rental 
        housing assistance program under section 8 of the United States 
        Housing Act of 1937, providing assistance pursuant to section 
        8(q)(4) of such Act.''.
    (b) Availability of Public Housing and Section 8 Amounts.--Section 
5 of the United States Housing Act of 1937 (42 U.S.C. 1437c) is amended 
by adding at the end the following new subsection:
    ``(m) Use of Amounts Under Headquarters Reserve.--Any amounts 
appropriated for public housing development or assistance under section 
8, that are retained by the Secretary in accordance with section 
213(d)(4)(A) of the Housing and Community Development Act of 1974, may 
be used for any of the activities specified in clauses (i) through (v) 
of such section.''.
    (c) Use of Section 8 Assistance for Portability and Neighborhood 
Crime Fighters.--Section 213(d)(4) of the Housing and Community 
Development Act of 1974 is amended by adding at the end the following 
new subparagraphs:
    ``(C) Of any financial assistance for the rental housing assistance 
program under section 8 of the United States Housing Act of 1937 that 
is reserved pursuant to subparagraph (A), 5 percent shall be reserved 
for use only for the purposes of providing assistance pursuant to 
section 8(o)(6) of such Act.
    ``(D) In addition to any financial assistance for the rental 
housing assistance program under section 8 of the United States Housing 
Act of 1937 that is reserved pursuant to subparagraphs (A) and (C), the 
Secretary shall reserve not more than an additional $15,000,000 of any 
financial assistance that becomes available under such program during 
each of fiscal years 1995 and 1996 and such additional amounts may be 
used only for the purpose under clause (vi) of subparagraph (A).''.

                 Subtitle B--Public and Indian Housing

SEC. 111. PUBLIC HOUSING RENT REFORM.

    (a) Ceiling Rents.--Section 3(a)(2) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(a)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by striking ``and approved by 
                the Secretary''; and
                    (B) by striking clause (iii) and inserting the 
                following new clause:
            ``(iii) at the election of such agency, is--
                    ``(I) not less than the average monthly amount of 
                debt service and operating expenses attributable to 
                dwelling units of similar size in public housing 
                projects owned and operated by such agency;
                    ``(II) not less than the reasonable rental value of 
                the unit, as determined by the agency; or
                    ``(III) not less than the local market rent 
                determined by the agency for comparable units of 
                similar size pursuant to the procedures prescribed by 
                the Secretary for determining rent reasonableness under 
                the program for rental certificate assistance under 
                section 8(b).'';
            (2) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraphs:
    ``(B) Any ceiling rents established by a public housing agency 
pursuant to this paragraph may be adjusted by the agency.
    ``(C)(i) Any ceiling rents established pursuant to subclause (I) or 
(III) of subparagraph (A)(iii) shall take effect at the discretion of 
the public housing agency.
    ``(ii) Any ceiling rents established pursuant to subclause (II) of 
subparagraph (A)(iii) may not take effect before the issuance of 
regulations to carry out such subclause, which shall be issued by the 
Secretary not later than 180 days after the date of the enactment of 
the Housing and Community Development Act of 1994.
    ``(iii) Before the effectiveness of regulations under clause (ii), 
an agency shall determine the reasonable rental value of unit for 
purposes of subclause (II) of subparagraph (A)(iii) based upon (I) in a 
project of 50 or more units for which such ceiling rents are being 
established, the 95th percentile of rents paid for all units in the 
project, (II) in a group of comparable projects for which such ceiling 
rents are being established that consists of a total of 50 or more 
units, all units in the projects, and (III) in a group of at least 50 
comparable units for which such ceiling rents are being established, 
all units in the group.''.
    (b) Exclusions From Adjusted Income.--Section 3(b)(5) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended--
            (1) in subparagraph (C)--
                    (A) by striking ``and'' before ``(ii)''; and
                    (B) by inserting before the semicolon at the end 
                the following; ``; and (iii) to the extent documented 
                by the family, the amount paid by the family for health 
                insurance coverage and any other nonreimbursed out-of-
                pocket medical expenses for any members of the family 
                residing in the household who, at the time, are not 
                receiving or approved to receive any assistance for 
                health care from the Federal Government or any State 
                government, except that this clause shall apply only to 
                families residing in public housing'';
            (2) in subparagraph (E), by inserting before the semicolon 
        at the end the following: ``, except that in the case of a 
        family residing in public housing the amount excluded under 
        this subparagraph shall be 20 percent of the earned income of 
        the family remaining after excluding any amounts pursuant to 
        subparagraph (H)'';
            (3) in subparagraph (F), by striking ``and'' at the end;
            (4) in subparagraph (G), by striking the period at the end 
        and inserting a semicolon; and
            (5) by adding at the end the following new subparagraphs:
            ``(H) in the case of a family residing in public housing, 
        any earned income of any formerly dependent child who is a 
        member of the family residing in the family's dwelling unit 
        during the period beginning on the date of the first 
        redetermination of the rent for and family composition of the 
        family that occurs after the child reaches 18 years of age and 
        ending upon the date of the first such redetermination 
        occurring after he or she reaches 21 years of age; and
            ``(I) in the case of 2-parent families with children (as 
        defined by the Secretary by regulation) who reside in public 
        housing, an amount (in addition to any amounts excluded under 
        subparagraphs (E) and (H)) not to exceed 10 percent of any 
        earned income of the family.''.
    (c) Exclusion of Earned Income of Residents Who Obtain Employment 
From Rent Determinations.--
            (1) In general.--Section 3(a) of the United States Housing 
        Act of 1937 (42 U.S.C. 1437a(a)) is amended--
                    (A) in the third sentence of paragraph (1), by 
                striking ``paragraph (2)'' and inserting ``paragraphs 
                (2) and (3)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3) Optional Exclusion of Earned Income From Rent Determination 
for Families Previously Unemployed.--Notwithstanding any other 
provision of law, a public housing agency may provide (at the option of 
a public housing agency) that, for all units in public housing 
administered by the agency, the rent payable under subsection (b) for 
any such unit occupied by a family whose income increases as a result 
of employment of a member of the family who was previously unemployed 
for 1 or more years, may not--
            ``(A) be increased as a result of the increased income due 
        to such employment during the period that begins upon the 
        commencement of such employment and ends upon the second annual 
        redetermination of the rent for and family composition of the 
        family occurring thereafter;
            ``(B) during any 12-month period occurring during the 36 
        months succeeding the expiration of the period under 
        subparagraph (A) for the family, be increased due to the 
        continued employment of such family member by more than one-
        third of the difference between (i) the rent being paid by the 
        family upon expiration of such period, and (ii) the amount of 
        rent that the family would pay but for the applicability of 
        this paragraph; and
            ``(C) in any case, exceed the amount determined under 
        paragraph (1) or (2).'';
    (d) Exclusion From Income of Earnings From Job Training and Self-
Sufficiency Programs.--Section 3 of the United States Housing Act of 
1937 (42 U.S.C. 1437a) is amended--
            (1) in subsection (b)(4), by inserting before the period at 
        the end the following: ``, and except that the earnings of and 
        benefits to any public housing resident resulting from 
        enrollment and participation in a program providing employment 
        training and supportive services in accordance with the Family 
        Support Act of 1988, section 22 of this Act, the Job Training 
        Partnership Act, Subtitle D of title IV of the Cranston-
        Gonzalez National Affordable Housing Act, part F of title IV of 
        the Social Security Act, or any comparable Federal, State, or 
        local law shall not be considered as income for the purposes of 
        determining a limitation on the amount of rent paid by the 
        resident during the period that the resident enrolls and 
        participates in such program''; and
            (2) by striking the undesignated paragraph at the end of 
        subsection (c)(3) (as added by section 515(b) of the Cranston-
        Gonzalez National Affordable Housing Act).
    (e) Applicability.--Notwithstanding the amendments made by this 
section, any resident of public housing participating in the program 
under the authority contained in the undesignated paragraph at the end 
of section 3(c)(3) of the United States Housing Act of 1937 (as added 
by section 515(b) of the Cranston-Gonzalez National Affordable Housing 
Act (Public Law 101-625; 104 Stat. 4199)), as such paragraph existed 
before the date of enactment of this Act, shall continue to be governed 
by such authority.
    (f) Performance Funding System.--Section 9(a)(3)(B) of the United 
States Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(B)) is amended--
            (1) in clause (iv), by striking ``and'' at the end;
            (2) in (v), by striking the period at the end and inserting 
        a semicolon; and
            (3) by adding at the end the following new clause:
            ``(vi) the amount of any reduced revenue resulting from the 
        exclusion of income of public housing residents pursuant to 
        section 3(b)(5)(E) shall be calculated and included in the 
        amount of the payment received under this section by the public 
        housing agency administering the public housing in which such 
        residents reside;''.
    (g) Effective Date.--The amendments under this section shall take 
effect on the earlier of--
            (1) date of the effectiveness of the regulations under 
        subsection (i); or
            (2) the expiration of the 120-day period beginning on the 
        date of the enactment of this Act.
    (h) Regulations.--The Secretary shall issue any final regulations 
necessary to implement the amendments made by this section, which shall 
take effect not later than the expiration of the 120-day period 
beginning on the date of the enactment of this Act. The regulations 
shall be issued after notice and opportunity for public comment in 
accordance with the procedures under section 553 of title 5, United 
States Code, applicable to substantive rules (notwithstanding 
subsections (a)(2), (b)(B), and (d)(3) of such section).

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

    The first sentence of section 5(h) of the United States Housing Act 
of 1937 (42 U.S.C. 1437c(h)) is amended by striking ``its lower income 
tenants'' and inserting: ``low-income families residing in public 
housing or to non-profit organizations for resale to low-income 
families residing in public housing''.

SEC. 113. MAJOR RECONSTRUCTION OF OBSOLETE PROJECTS.

    (a) Assistance for Reconstruction.--Section 5(j)(2) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(j)(2)) is amended--
            (1) in subparagraph (A), by striking ``Notwithstanding'' 
        and all that follows through ``fiscal year'' and inserting the 
        following: ``The Secretary may provide assistance under this 
        paragraph'';
            (2) in subparagraph (C), by striking ``reserved'' and 
        inserting ``made available for assistance'';
            (3) in subparagraph (F)(i), by striking ``reserved or''; 
        and
            (4) in subparagraph (G)(i), by striking ``reserved under 
        subparagraph (A)'' and inserting ``made available for use under 
        this paragraph''.
    (b) Set-Aside for Disabled Families.--Section 5(j)(2)(G)(i) of the 
United States Housing Act of 1937 (42 U.S.C. 1437c(j)(2)(G)(i)) is 
amended by striking ``fiscal years 1993 and 1994'' and inserting 
``fiscal years 1995 and 1996''.

SEC. 114. NEW CONSTRUCTION OF PROJECTS FOR DISABLED FAMILIES.

    Section 5(j)(3)(A) of the United States Housing Act of 1937 (42 
U.S.C. 1437c(j)(3)(A)) is amended by striking ``fiscal years 1993 and 
1994'' and inserting ``fiscal years 1995 and 1996''.

SEC. 115. RECAPTURE OF PUBLIC HOUSING DEVELOPMENT AMOUNTS.

    Section 5(k) of the United States Housing Act of 1937 (42 U.S.C. 
1437c(k)) is amended by adding before the period at the end of the 
first sentence the following: ``, unless the Secretary finds that there 
is no feasible way for the agency to begin construction or 
rehabilitation, or to complete acquisition, within such period''.

SEC. 116. REPEAL OF LEAST-COST LIMITATION ON PUBLIC HOUSING NEW 
              CONSTRUCTION.

    Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d) is amended by striking subsection (h).

SEC. 117. REGULATORY RELIEF AND PAPERWORK REDUCTION FOR HIGH-PERFORMING 
              PUBLIC HOUSING AGENCIES.

    (a) Waiver of Rules and Reports.--Section 6(j) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(j)) is amended by adding at the 
end the following new paragraph:
    ``(5)(A) Except as provided in subparagraph (B), the Secretary may, 
for public housing agencies designated pursuant to this subsection as 
high performing public housing agencies with respect to a fiscal year, 
waive (by regulation issued under subparagraph (C)) the applicability 
for the ensuing fiscal year of regulatory requirements otherwise 
applicable to public housing agencies to the extent appropriate, as 
determined by the Secretary, to facilitate more efficient operation of 
such agencies.
    ``(B) The Secretary may not waive the applicability of any 
provision--
            ``(i) limiting occupancy of public housing to low-income 
        families;
            ``(ii) under section 18 requiring replacement of units in 
        the case of demolition or disposition;
            ``(iii) under the Uniform Relocation Assistance and Real 
        Property Acquisition Policies Act of 1970;
            ``(iv) that prohibits, or the purpose of which is to 
        protect persons against, discrimination on the basis of race, 
        color, religion, sex, marital status, national origin, age, or 
        handicap, or that relates to fair housing or equal opportunity; 
        or
            ``(v) under chapter 75 of title 31, United States Code.
    ``(C) During fiscal year 1995, the Secretary shall publish in the 
Federal Register a proposed rule providing for the waiver of the 
regulations to be waived pursuant to this paragraph and identifying 
such regulations. The Secretary shall publish such proposed rule at a 
time determined by the Secretary to be sufficient to provide notice and 
an opportunity for public comment before issuance of a final rule under 
this paragraph. Such final rule shall be issued not later than August 
31, 1995.''.
    (b) Retention by PHA's of Savings From Efficient Management.--
Section 6(e) of the United States Housing Act of 1937 (42 U.S.C. 
1437d(e)) is amended to read as follows:
    ``(e) Treatment of Savings.--
            ``(1) In general.--Any income generated by a high-
        performing public housing agency that exceeds the income 
        estimated by the agency to be generated, according to the 
        agency's annual operating budget, shall be excluded in 
        subsequent years in calculating the amount of the operating 
        subsidy provided under section 9 to the high-performing public 
        housing agency. Such savings shall be retained by the agency 
        for other housing purposes.
            ``(2) High-performing public housing agency.--For purposes 
        of paragraph (1), the term `high-performing public housing 
        agency' means, with respect to a year, a public housing agency 
        that has been designated pursuant to subsection (j) as a high 
        performing public housing agency for the last fiscal year 
        ending before the commencement of such year.''.

SEC. 118. STANDARDS FOR LEASE TERMINATION AND EXPEDITED GRIEVANCE 
              PROCEDURE.

    Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d) is amended--
            (1) in subsection (k), in the first sentence of the matter 
        following paragraph (6), by striking ``criminal'' the first 
        place it appears; and
            (2) in subsection (l)(5), by striking ``criminal'' the 
        first place it appears.

SEC. 119. AVAILABILITY OF CRIMINAL CONVICTION INFORMATION FOR SCREENING 
              AND EVICTIONS.

    Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d) is amended by adding at the end the following new subsection:
    ``(q) Availability of Criminal Records.--
            ``(1) Availability.--Notwithstanding any other provision of 
        Federal, State, or local law, upon the request of any public 
        housing agency, the National Crime Information Center, police 
        departments, and any other law enforcement entities shall 
        provide information to the agency regarding the criminal 
        convictions of applicants for, or residents of, public housing 
        for the purpose of applicant screening, lease enforcement, and 
        eviction. A public housing agency may pay a reasonable fee for 
        such information.
            ``(2) Content.--The information provided under paragraph 
        (1) shall include information regarding convictions for any 
        felony and convictions for certain misdemeanors, including 
        crimes of violence, destruction of property, use, sale, or 
        distribution of controlled substances, illegal possession or 
        use of firearms, and hate crimes. Such information may not 
        include information regarding any criminal conviction of such 
        an applicant or resident for any act (or failure to act) 
        occurring before the applicant or resident reached 18 years of 
        age or information regarding any criminal conviction of such an 
        applicant or resident occurring more than 10 years before the 
        request under this subsection is made by the public housing 
        agency.
            ``(3) Use.--A public housing agency receiving information 
        under this subsection may use such information only for the 
        purposes provided in this subsection and such information may 
        not be disclosed to any person who is not an officer or 
        employee of the public housing agency. The Secretary shall, by 
        regulation, establish procedures necessary to ensure that 
        information provided to a public housing agency under this 
        subsection is used, and confidentiality of such information is 
        maintained, as required under this subsection.
            ``(4) Penalty.--Any person who knowingly and willfully 
        requests or obtains any information concerning an applicant 
        for, or resident of, public housing pursuant to the authority 
        under this subsection under false pretenses, or any person who 
        knowingly and willfully discloses any such information in any 
        manner to any individual not entitled under any law to receive 
        it, shall be guilty of a misdemeanor and fined not more than 
        $5,000. The term `person' as used in this paragraph shall 
        include an officer or employee of any public housing agency.
            ``(5) Civil action.-- Any applicant for, or resident of, 
        public housing affected by (A) a negligent or knowing 
        disclosure of information referred to in this section about 
        such person by an officer or employee of any public housing 
        agency, which disclosure is not authorized by this subsection, 
        or (B) any other negligent or knowing action that is 
        inconsistent with this subsection, may bring a civil action for 
        damages and such other relief as may be appropriate against any 
        officer or employee of any public housing agency responsible 
        for such unauthorized action. The district court of the United 
        States in the district in which the affected applicant or 
        resident resides, in which such unauthorized action occurred, 
        or in which the officer or employee alleged to be responsible 
        for any such unauthorized action resides, shall have 
        jurisdiction in such matters. Appropriate relief that may be 
        ordered by such district courts shall include reasonable 
        attorney's fees and other litigation costs.''.

SEC. 120. DESIGNATED HOUSING.

    Section 7(e)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437e(e)(1)) is amended--
            (1) in the first sentence, by striking ``and the Secretary 
        approves an application under this subsection for such 
        designation''; and
            (2) in the second sentence, by inserting before the period 
        at the end the following: ``, which shall provide that an 
        application for a project (or portion of a project) shall be 
        submitted and considered for approval in conjunction with 
        submission and approval of the allocation plan for the project 
        (or portion) under section 7(f)''.

SEC. 121. PUBLIC HOUSING OPERATING SUBSIDIES.

    (a) Authorization of Appropriations.--Section 9(c) of the United 
States Housing Act of 1937 (42 U.S.C. 1437g(c)) is amended--
            (1) in paragraph (1), by striking ``There'' and all that 
        follows and inserting the following new sentence: ``There are 
        authorized to be appropriated for purposes of providing annual 
        contributions under this section $3,146,000,000 for fiscal year 
        1995 and $3,208,000,000 for fiscal year 1996.''.
            (2) in paragraph (2), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''; and
            (3) in paragraph (3), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''.
    (b) Eligibility of Severely Distressed Public Housing.--Section 
9(a)(2) of the United States Housing Act of 1937 is amended--
            (1) by striking ``one'' and inserting ``that is (A)''; and
            (2) by inserting after ``section 8,'' the following: ``or 
        (B) assisted under section 24 or the program authorized under 
        (i) the third paragraph of the head, homeownership and 
        opportunity for people everywhere grants (hope grants), of 
        title II of the Departments of Veterans Affairs and Housing and 
        Urban Development, and Independent Agencies Appropriations Act, 
        1993, or (ii) the head, severely distressed public housing 
        projects, of title II of the Department of Veterans Affairs and 
        Housing and Urban Development, and Independent Agencies 
        Appropriations Act, 1994;''.
    (c) Included Costs.--Section 9(a)(3)(B) of the United States 
Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(B)), as amended by the 
preceding provisions of this Act, is further amended by adding at the 
end the following new clauses:
            ``(vii) the amount of the payment received under this 
        section by public housing agencies shall be calculated to 
        include--
                    ``(I) benefits (including health care and pensions, 
                annuities, and other retirement benefits) of employees 
                of the agency;
                    ``(II) the amount of any reduced revenue resulting 
                from the amendments made by subsections (b) and (c) of 
                section 573 of the Cranston-Gonzalez National 
                Affordable Housing Act;
                    ``(III) maintenance deferred;
                    ``(IV) utility costs attributable to air 
                conditioning; and
                    ``(V) any increased costs of security for the 
                public housing, attributable to increases in the number 
                of incidents of vandalism and crime in the housing; and
            ``(viii) the amount of the payment received under this 
        section by a public housing agency for a fiscal year shall be 
        determined taking into consideration the actual expenses for 
        the agency for the preceding fiscal year.''.

SEC. 122. ELIGIBLE USES OF EMERGENCY MODERNIZATION FUNDS.

    Section 14(k)(1) of the United States Housing Act of 1937 (42 
U.S.C. 1437l(k)(1)) is amended--
            (1) in the first sentence, by striking ``$75,000,000'' and 
        inserting ``$50,000,000''; and
            (2) by adding at the end the following new sentence: ``The 
        Secretary shall make any amounts reserved under this paragraph 
        for any fiscal year that remain unobligated on September 1 of 
        such fiscal year available for modernization needs in 
        connection with the settlement of litigation and desegregation 
        of public housing. Of the amounts reserved each year under this 
        paragraph, the Secretary shall make available to the Inspector 
        General of the Department of Housing and Urban Development not 
        more than $5,000,000 for cost in connection with efforts to 
        combat violent crime in public housing. Using amounts made 
        available pursuant to the preceding sentence during fiscal 
        years 1995 and 1996, the Secretary shall provide amounts in 
        each such fiscal year for the continuation of the drug 
        elimination activities under Project Nos. IA05PO98003004 and 
        IA05DEP0980193.''.

SEC. 123. USE OF MODERNIZATION FUNDS FOR REPLACEMENT HOUSING.

    (a) In General.--Section 14 of the United States Housing Act of 
1937 (42 U.S.C. 1437l) is amended by adding at the end the following 
new subsection:
    ``(q) Use of Amounts for Replacement Housing.--
            ``(1) Authority.--A public housing agency may use 
        assistance under this section to provide replacement housing as 
        required by section 18 by developing additional housing under 
        this Act, in accordance with requirements applicable to the 
        development of public housing, but only if the cost of 
        providing such housing (not including costs of demolition) is 
        more cost effective than the cost of modernization of the 
        housing proposed to be replaced.
            ``(2) Limitation on amount.--In any fiscal year, a public 
        housing agency may not use more than 50 percent of any 
        assistance provided to the agency under this section for the 
        fiscal year for providing replacement housing pursuant to this 
        section.
            ``(3) Requirements.--A public housing agency may use 
        assistance under this section as provided in subsection (a) 
        only if the replacement of units is included in the replacement 
        plan of the agency.''.
    (b) Available Replacement Housing.--Section 14(c)(1) of the United 
States Housing Act of 1937 is amended by inserting before the semicolon 
the following: ``or, only in the case of assistance used as provided 
under subsection (q), housing or units in housing owned (or leased for 
a period to be determined by the Secretary) by a partnership of a 
public housing agency and other entity in which the agency has a 
controlling interest''.

SEC. 124. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

    Section 18 of the United States Housing Act of 1937 (42 U.S.C. 
1437p) is amended to read as follows:

             ``demolition and disposition of public housing

    ``Sec. 18. (a) Condition of Housing.--The Secretary may approve an 
application by a public housing agency for permission to demolish or 
dispose of a public housing project or a portion of a public housing 
project only if the Secretary has determined that--
            ``(1) in the case of--
                    ``(A) an application proposing demolition of a 
                public housing project or a portion of a public housing 
                project, the project or portion of the project is 
                obsolete as to physical condition, location, or other 
                factors, and it is more cost effective to replace the 
                project or portion of the project than to rehabilitate 
                the project or portion of the project; or
                    ``(B) an application proposing the demolition of 
                only a portion of a project, the demolition will help 
                to assure the remaining useful life of the remaining 
                portion of the project;
            ``(2) in the case of an application proposing disposition 
        of real property of a public housing agency by sale or other 
        transfer--
                    ``(A)(i) the property's retention is not in the 
                best interests of the tenants or the public housing 
                agency because (I) developmental changes in the area 
                surrounding the project adversely affect the health or 
                safety of the tenants or the feasible operation of the 
                project by the public housing agency, (II) disposition 
                will allow the acquisition, development, or 
                rehabilitation of other properties which will be more 
                efficiently or effectively operated as low-income 
                housing and which will preserve the total amount of 
                low-income housing stock available in the community or 
                housing sufficient to address the needs of the 
                community as described in the comprehensive housing 
                affordability strategy under section 105 of the 
                Cranston-Gonzalez National Affordable Housing Act, or 
                (III) because of other factors which the Secretary 
                determines are consistent with the best interests of 
                the tenants and public housing agency and which are not 
                inconsistent with other provisions of this Act; and
                    ``(ii) for property other than dwelling units, the 
                property is excess to the needs of a project or the 
                disposition is incidental to, or does not interfere 
                with, continued operation of a project; and
                    ``(B) the net proceeds of the disposition will be 
                used for (i) the payment of development costs for the 
                replacement housing and for the retirement of 
                outstanding obligations issued to finance original 
                development or modernization of the project, which, in 
                the case of scattered-site housing of a public housing 
                agency, shall be in an amount that bears the same ratio 
                to the total of such costs and obligations as the 
                number of units disposed of bears to the total number 
                of units of the project at the time of disposition, and 
                (ii) to the extent that any proceeds remain after the 
                application of proceeds in accordance with clause (i), 
                the provision of housing assistance for low-income 
                families through such measures as modernization of low-
                income housing, or the acquisition, development, or 
                rehabilitation of other properties to operate as low-
                income housing; or
            ``(3) in the case of an application proposing demolition or 
        disposition of any portion of a public housing project, 
        assisted at any time under section 5(j)(2)--
                    ``(A) such assistance has not been provided for the 
                portion of the project to be demolished or disposed 
                within the 10-year period ending upon submission of the 
                application; or
                    ``(B) the property's retention is not in the best 
                interest of the tenants or the public housing agency 
                because of changes in the area surrounding the project 
                or other circumstances of the project, as determined by 
                the Secretary.
    ``(b) Tenant Involvement and Replacement Housing.--The Secretary 
may approve an application or furnish assistance under this section or 
under this Act only if the following requirements are met:
            ``(1) Tenant consultation and employment.--The application 
        from the public housing agency--
                    ``(A) has been developed in consultation with 
                tenants and tenant councils, if any, who will be 
                affected by the demolition or disposition;
                    ``(B) includes a plan to employ public housing 
                tenants in construction or rehabilitation to the extent 
                practicable, pursuant to section 3 of the Housing and 
                Urban Development Act of 1968; and
                    ``(C) contains a certification by appropriate local 
                government officials that the proposed activity is 
                consistent with the applicable comprehensive housing 
                affordability strategy under section 105 of the 
                Cranston-Gonzalez National Affordable Housing Act.
            ``(2) Relocation assistance.--All tenants to be relocated 
        as a result of the demolition or disposition will be provided 
        assistance by the public housing agency and are relocated to 
        other decent, safe, sanitary, and affordable housing, which is, 
        to the maximum extent practicable, housing of their choice, 
        including housing assisted under section 8 of this Act.
            ``(3) Replacement housing.--The public housing agency has 
        developed a plan that provides for additional decent, safe, 
        sanitary, and affordable dwelling unit for each public housing 
        dwelling unit to be demolished or disposed under such 
        application or provides additional dwelling units sufficient to 
        address the needs and demographic characteristics of the number 
        of applicants on the waiting list of the agency equal to the 
        number of units to be demolished or disposed of or the needs of 
        the community as described in the comprehensive housing 
        affordability strategy under section 105 of the Cranston-
        Gonzalez National Affordable Housing Act, which plan--
                    ``(A) provides for the provision of such additional 
                dwelling units through--
                            ``(i) the acquisition or development of 
                        additional public housing dwelling units, which 
                        may be units in housing owned (or leased for a 
                        period to be determined by the Secretary) by a 
                        partnership of a public housing agency and 
                        other entity in which the agency has a 
                        controlling interest;
                            ``(ii) the use of 15-year project-based 
                        assistance under section 8;
                            ``(iii) in the case of an application 
                        proposing demolition or disposition of 200 or 
                        more units, the use of tenant-based assistance 
                        under section 8 having a term of not less than 
                        5 years;
                            ``(iv) units acquired or otherwise provided 
                        for homeownership (including cooperative and 
                        condominium interests) by public housing 
                        residents under section 5(h), subtitle B or C 
                        of title IV of the Cranston-Gonzalez National 
                        Affordable Housing Act, or other programs for 
                        homeownership that have program requirements 
                        substantially equivalent to the requirements 
                        established under section 605 of the Housing 
                        and Community Development Act of 1987;
                            ``(v) affordable housing homeownership 
                        units assisted under title II of the Cranston-
                        Gonzalez National Affordable Housing Act and 
                        sold to public housing residents;
                            ``(vi) rental units that are (I) assisted 
                        under title II of the Cranston-Gonzalez 
                        National Affordable Housing Act 
                        (notwithstanding section 212(d)(2) of such 
                        Act), or (II) assisted under a State or local 
                        rental assistance program that provides for 
                        rental assistance over a term of not less than 
                        15 years that is comparable in terms of 
                        eligibility and contribution to rent to 
                        assistance under section 8, except that this 
                        subclause shall only apply in cases provided 
                        under subparagraph (C);
                            ``(vii) housing assisted by a tax credit 
                        under section 42 of the Internal Revenue Code;
                            ``(viii) housing acquired from the 
                        Resolution Trust Corporation or the Federal 
                        Deposit Insurance Corporation;
                            ``(ix) housing acquired under section 203 
                        of the Housing and Community Development 
                        Amendments of 1978;
                            ``(x) other manners approved by the 
                        Secretary; or
                            ``(xi) any combination of such methods;
                    ``(B) in the case of an application proposing 
                demolition or disposition of 200 or more units, shall 
                provide that--
                            ``(i) not less than 50 percent of such 
                        additional dwelling units shall be provided 
                        through the acquisition or development of 
                        additional dwelling units or through project-
                        based assistance; and
                            ``(ii) not more than 50 percent of such 
                        additional dwelling units shall be provided 
                        through tenant-based assistance under section 8 
                        having a term of not less than 5 years;
                    ``(C) if it provides for the use of tenant-based 
                assistance provided under section 8 or otherwise, may 
                be approved--
                            ``(i) only after a finding by the Secretary 
                        that replacement with project-based assistance 
                        is not feasible, and the supply of private 
                        rental housing actually available to those who 
                        would receive such assistance under the plan is 
                        sufficient for the total number of families in 
                        the community assisted with tenant-based 
                        assistance after implementation of the plan and 
                        that such supply is likely to remain available 
                        for the full term of the assistance; and
                            ``(ii) only if such finding is based on 
                        objective information, which shall include 
                        rates of participation by landlords in the 
                        section 8 program, size, conditions and rent 
                        levels of available rental housing as compared 
                        to section 8 standards, the supply of vacant 
                        existing housing meeting the section 8 housing 
                        quality standards with rents at or below the 
                        fair market rental, the number of eligible 
                        families waiting for public housing or housing 
                        assistance under section 8, and the extent of 
                        discrimination against the types of individuals 
                        or families to be served by the assistance;
                    ``(D) may provide that all or part of such 
                additional dwelling units may be located outside the 
                jurisdiction of the public housing agency (in this 
                subparagraph referred to as the `original agency') if--
                            ``(i) the location is in the same housing 
                        market area as the original agency, as 
                        determined by the Secretary; and
                            ``(ii) the plan contains an agreement 
                        between the original agency and the public 
                        housing agency in the alternate location or 
                        other public or private entity that will be 
                        responsible for providing the additional units 
                        in the alternate location that such alternate 
                        agency or entity will, with respect to the 
                        dwelling units involved--
                                    ``(I) provide the dwelling units in 
                                accordance with subparagraph (A);
                                    ``(II) complete the plan on 
                                schedule in accordance with 
                                subparagraph (F);
                                    ``(III) meet the requirements of 
                                subparagraph (G) of this paragraph and 
                                the maximum rent provisions of 
                                subparagraph (H);
                                    ``(IV) not impose a local residency 
                                preference on any resident of the 
                                jurisdiction of the original agency for 
                                purposes of admission to any such 
                                units; and
                                    ``(V) allow that preference for 
                                admission to any such additional units 
                                may be provided to residents of the 
                                severely distressed public housing 
                                dwelling units replaced under this 
                                subparagraph pursuant to section 24;
                    ``(E) includes a schedule for completing the plan 
                within a period consistent with the size of the 
                proposed demolition or disposition and replacement 
                plan, which--
                            ``(i) shall not exceed 6 years, except that 
                        the Secretary may extend the schedule to not 
                        more than 10 years if the Secretary determines 
                        that good cause exists to extend the 
                        implementation of the replacement plan under 
                        this subsection; and
                            ``(ii) the demolition or disposition under 
                        the plan can occur in phases necessary to 
                        provide for relocation of tenants under 
                        paragraph (2);
                    ``(F) includes a method of ensuring that the same 
                number of individuals and families will be provided 
                housing;
                    ``(G) provides for the payment of the relocation 
                expenses of each tenant to be displaced and ensures 
                that the rent paid by the tenant following relocation 
                will not exceed the amount permitted under this Act; 
                and
                    ``(H) prevents the taking of any action to demolish 
                or dispose of any unit until the tenant of the unit is 
                relocated to decent, safe, sanitary, and affordable 
                housing; and
                    ``(I) permits the Secretary to intervene and take 
                any actions necessary to complete the plan if the 
                public housing agency fails, without good cause, to 
                carry out its obligations under the plan.
    ``(c) Limitation on Demolition and Exemption.--
            ``(1) Maximum percentage.--Notwithstanding any other 
        provision of this section, in any 5-year period a public 
        housing agency may demolish not more than the lesser of 5 
        dwelling units or 5 percent of the total dwelling units owned 
        and operated by the public housing agency, without providing an 
        additional dwelling unit for each such public housing dwelling 
        unit to be demolished, but only if the space occupied by the 
        demolished unit is used for meeting the service or other needs 
        of public housing residents.
            ``(2) Site and neighborhood standards exemption.--
        Notwithstanding any other provision of law, a replacement plan 
        under subsection (b)(3) may provide for demolition of public 
        housing units and replacement of such units on site or in the 
        same neighborhood if the number of replacement units provided 
        in the same neighborhood is fewer than the number of units 
        demolished and the balance of replacement units are provided 
        elsewhere in the jurisdiction or pursuant to subsection 
        (b)(3)(D).
    ``(d) Treatment of Replacement Units.--With respect to any dwelling 
units developed, acquired, or leased by a public housing agency 
pursuant to a replacement plan under subsection (b)(3)--
            ``(1) assistance may be provided under section 9 for such 
        units; and
            ``(2) such units shall be available for occupancy, operated 
        and managed in the manner required for public housing, and 
        shall be subject to the other requirements applicable to public 
        housing dwelling units.
    ``(e) Approval of Applications.--
            ``(1) In general.--The Secretary shall notify a public 
        housing agency submitting an application under this section for 
        demolition or disposition and replacement of a public housing 
        project or portion of a project of the approval or disapproval 
        of the application not later than 60 days after receiving the 
        application. If the Secretary does not notify the public 
        housing agency as required under this paragraph or paragraph 
        (2), the application shall be considered to have been approved.
            ``(2) Disapproval and resubmission.--If the Secretary 
        disapproves an application, the Secretary shall specify in the 
        notice of disapproval the reasons for the disapproval and the 
        agency may resubmit the application as amended or modified.
            ``(3) Annual report.--The Secretary shall submit a report 
        to the Congress annually describing for the year the 
        applications under this section approved and disapproved, the 
        number, general condition, and location of units demolished or 
        disposed of, and the number, general condition, location and 
        method of provision of units of replacement housing provided 
        pursuant to this section.
    ``(f) Action Before Approval of Application.--
            ``(1) Prohibited action.--A public housing agency shall not 
        take any action to demolish or dispose of a public housing 
        project or a portion of a public housing project without 
        obtaining the approval of the Secretary and satisfying the 
        conditions specified in subsections (a) and (b).
            ``(2) Allowable relocation.--A public housing agency may 
        relocate tenants of public housing into other dwelling units 
        before the approval of an application under this section for 
        demolition or disposition or prior to implementing a plan for 
        modernization under section 14 or 24, if units to be demolished 
        or disposed of are not decent, safe, and sanitary, or if the 
        units to be rehabilitated can not be maintained cost-
        effectively in a decent, safe, and sanitary condition.
    ``(g) Assistance for Replacement Housing.--The Secretary may 
provide assistance under this subsection for--
            ``(1) providing replacement public housing units pursuant 
        to subsection (b)(3)(A) for units demolished or disposed of 
        pursuant to this section; and
            ``(2) providing assistance under section 8 for replacement 
        housing pursuant to subsection (b)(3)(A) for units demolished 
        or disposed of pursuant to this section.
    ``(h) Inapplicability to Public Housing Homeownership Program.--The 
provisions of this section shall not apply to the disposition of a 
public housing project in accordance with an approved homeownership 
program under title III of this Act.
    ``(i) Exception to Replacement Rule.--
            ``(1) Requirements for waiver.--The Secretary shall waive 
        the applicability of the provisions of subsection (b)(3) with 
        respect to any application under this section by a public 
        housing agency for the demolition or disposition of public 
        housing dwelling units if--
                    ``(A) the Secretary determines, based on 
                information provided by the public housing agency in 
                the application and the request under paragraph (2), 
                that--
                            ``(i) the requirements under subsection 
                        (b)(3) are preventing or interfering with the 
                        development or acquisition of new public 
                        housing dwelling units by the agency;
                            ``(ii) the long-term goal of the agency in 
                        requesting the waiver under this subsection is 
                        to increase the number of habitable public 
                        housing dwelling units of the agency;
                            ``(iii) maintaining and operating the 
                        dwelling units to be demolished or disposed of 
                        is not cost effective; and
                            ``(iv) sufficient financial assistance is 
                        not, and will not be, available to the public 
                        housing agency to rehabilitate or replace all 
                        or some of the units;
                    ``(B) the Secretary determines that replacing the 
                dwelling units to be demolished or disposed under the 
                application is unnecessary because other affordable 
                housing is available in the area in which the units are 
                located, and in making such determination the Secretary 
                shall consider the assessment submitted by the public 
                housing agency under paragraph (2)(C); and
                    ``(C) the public housing agency requests a waiver 
                under this subsection in accordance with the 
                requirements under paragraph (2).
            ``(2) Request for waiver.--To be eligible for a waiver 
        under this subsection, a public housing agency shall submit to 
        the Secretary a request for a waiver under this subsection that 
        includes--
                    ``(A) a comprehensive plan for demolition, 
                disposition, and replacement that describes additional 
                dwelling units to be made available by the public 
                housing agency;
                    ``(B) an identification of the dwelling units for 
                which the waiver is requested; and
                    ``(C) an assessment of the need of replacing such 
                dwelling units including the unit size, age, general 
                condition, and length of time such units have been 
                vacant, the condition of the neighborhood in which the 
                dwelling units are located, and the availability of 
                dwelling units affordable to low-income families within 
                the jurisdiction in which the dwelling units are 
                located, during the implementation of the replacement 
                plan.
            ``(3) Submission to secretary.--A request for a waiver 
        under this subsection may be submitted at any time. The request 
        shall be submitted to the Secretary by certified mail or any 
        other equivalent means that provides notification to the public 
        housing agency making the request of the date of receipt by the 
        Secretary.
            ``(4) Notice of disposition of request.--Except as provided 
        in paragraph (5), the Secretary shall notify a public housing 
        agency requesting a waiver under this section of the approval 
        or disapproval of the request not later than 45 days after 
        receiving the request. If the Secretary does not notify the 
        public housing agency as required under this paragraph or 
        paragraph (5), the request for a waiver shall be considered to 
        have been approved.
            ``(5) Request for additional information.--If the Secretary 
        determines that more information is needed to make the 
        determinations under paragraph (1) than has been provided by 
        the public housing agency, the Secretary shall notify the 
        agency in writing not later 30 days after receiving the request 
        for the waiver that additional information is necessary. Such 
        notice shall describe specifically the additional information 
        required for the determinations and establish a deadline for 
        the submission of the information by the agency, which shall be 
        determined based on the difficulty of obtaining the information 
        requested. If the agency submits such additional information 
        requested before the deadline established in the notice under 
        this paragraph, the Secretary shall notify the agency 
        requesting the waiver that the request is approved or 
        disapproved not later than 30 days after the submission of such 
        additional information.
            ``(6) Statement of reasons for denying or approving 
        request.--The Secretary shall include, in each notice under 
        paragraph (4) or (5) of the denial or approval of a request for 
        a waiver under this subsection, the specific reasons for 
        denying or approving the request. The denial of any request for 
        a waiver for public housing dwelling units shall not prejudice 
        the consideration of any other subsequent request for such a 
        waiver for any of such dwelling units.''.

SEC. 125. PUBLIC HOUSING RESIDENT OPPORTUNITY.

    Section 20 of the United States Housing Act of 1937 (42 U.S.C. 
1437r) is amended--
            (1) by striking the section heading and inserting the 
        following new section heading:

                   ``resident opportunity program'';

            (2) in the first 2 sentences of subsection (b), by striking 
        ``resident management program'' each place it appears and 
        inserting ``resident opportunity program''; and
            (3) in subsection (f)--
                    (A) by striking ``Resident Management Technical 
                Assistance and Training'' and inserting ``Resident 
                Opportunity Assistance'';
                    (B) in paragraph (1), by adding at the end the 
                following new sentence: ``In addition, the Secretary 
                may provide financial assistance to resident management 
                corporations or resident councils for activities 
                sponsored by resident organizations for job training, 
                economic development, security, and other self-
                sufficiency activities beyond those related to the 
                management of public housing.'';
                    (C) in paragraph (2), by striking ``$100,000'' and 
                inserting ``$250,000'';
                    (D) by striking paragraph (3) and inserting the 
                following new paragraph:
            ``(3) Funding.--Of any amounts made available for financial 
        assistance under section 14, the Secretary may use to carry out 
        this subsection $25,000,000 for fiscal year 1995 and 
        $25,000,000 for fiscal year 1996.'';
                    (E) by redesignating paragraphs (2) through (4) as 
                paragraphs (3) through (5), respectively;
                    (F) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Other uses of assistance.--The Secretary may use 
        amounts available to carry out this subsection to enter into 
        contracts with--
                    ``(A) various entities for monitoring, evaluation, 
                technical assistance, and information dissemination in 
                connection with activities under this subsection; and
                    ``(B) resident organizations and public or private 
                entities for activities that support the economic 
                development and increased self-sufficiency of public 
                housing residents.
        Eligible activities related to economic development and self-
        sufficiency may include programs for counseling, treatment for 
        substance abuse, child care, remedial education, job training, 
        and development of resident businesses.''.

SEC. 126. PUBLIC HOUSING FAMILY INVESTMENT CENTERS.

    (a) Authorization of Appropriations.--Section 22(k) of the United 
States Housing Act of 1937 (42 U.S.C. 1437t(k)) is amended to read as 
follows:
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for fiscal year 1995 
and $50,000,000 for fiscal year 1996.''.
    (b) Purposes.--Section 22(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437t(a)) is amended--
            (1) in the matter preceding paragraph (1) by inserting 
        before ``to provide'' the following: ``to provide job training 
        and employment services to public housing residents in 
        connection with public and private sector jobs generated by 
        construction, modernization, maintenance, and supportive 
        service activities of public housing and other housing projects 
        and programs assisted by the Department of Housing and Urban 
        Development and'';
            (2) by redesignating paragraphs (2), (3), and (4), as 
        paragraphs (3), (4), and (5), respectively;
            (3) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) operating job banks, assisting employers to develop 
        training and apprenticeship programs, assisting businesses of 
        public housing residents, and other employment-related 
        activities;''; and
            (4) by adding at the end the following new flush sentence:
``The provision of services under this section shall be considered the 
provision of housing for purposes of section 3 of the Housing and Urban 
Development Act of 1968.''.
    (c) Elimination of Supportive Services Cap.--Section 22(c)(4) of 
the United States Housing Act of 1937 is amended by striking ``not more 
than 15 percent of''.
    (d) Economic Opportunity Activities.--Section 22 of the United 
States Housing Act of 1937 is amended--
            (1) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Grant Authority.--The Secretary may make grants to public 
housing agencies to adapt and provide sites in or near public housing 
for providing services to help families residing in the public housing 
gain better access to educational and job opportunities to achieve 
self-sufficiency and independence, and to provide such services. 
Assistance under this section may be made available only to public 
housing agencies that demonstrate to the satisfaction of the Secretary 
that supportive services (as such term is defined in subsection (j)) 
will be made available. Facilities assisted under this section shall be 
located in or near the premises of public housing.'';
            (2) in subsection (c)(3), by striking ``the renovation of 
        facilities located near the premises of 1 or more public 
        housing projects'' and inserting the following: ``the 
        acquisition of facilities located near the premises of 1 or 
        more public housing projects, the acquisition and renovation of 
        such facilities, or the renovation of such facilities,''; and
            (3) in subsection (j)--
                    (A) in the first sentence, by inserting before the 
                period at the end the following: ``(including 
                opportunities under a Family Self-Sufficiency program 
                under section 23 of this Act, subtitle D of title IV of 
                the Cranston-Gonzalez National Affordable Housing Act, 
                and the Job Training Partnership Act) and to 
                facilitating participation in such opportunities'';
                    (B) in paragraph (5), by striking ``and'' at the 
                end;
                    (C) by redesignating paragraphs (4), (5), and (6) 
                as paragraphs (5), (6), and (15), respectively; and
                    (D) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) English language education for persons having no or 
        limited proficiency in English;''; and
                    (E) by inserting after paragraph (6) (as so 
                redesignated) the following new paragraphs:
            ``(7) providing a job bank of available employment 
        positions;
            ``(8) assisting contractors, contractor associations, and 
        joint labor-management committees to develop and assist 
        training and apprenticeship programs;
            ``(9) funding start-up costs of business employing, or 
        owned by, public housing residents;
            ``(10) providing coordination with related government and 
        private programs;
            ``(11) carrying out job-related activities necessary to 
        establish and operate a family investment center, including 
        training, supervision of trainees, and job recruitment;
            ``(12) apprenticeship training of public housing residents 
        in job skills used in the construction modernization, 
        maintenance, and operation of public housing and other housing 
        assisted by the Department of Housing and Urban Development;
            ``(13) employing public housing residents in modernization, 
        maintenance, and operation of public housing and other housing 
        assisted by the Department of Housing and Urban Development;
            ``(14) training and employing public housing residents in 
        jobs providing supportive services to residents participating 
        in the program for family self-sufficiency and other economic 
        independence; and''.

SEC. 127. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.

    (a) Planning Grants.--Subsection (c) of section 24 of the United 
States Housing Act of 1937 (42 U.S.C. 1437v(c)) is amended--
            (1) in paragraph (2) by striking ``$200,000'' and inserting 
        ``$300,000'';
            (2) in paragraph (3)--
                    (A) in subparagraph (G), by striking ``designing a 
                suitable replacement housing plan'' and inserting 
                ``designing suitable relocation and replacement housing 
                plans'';
                    (B) by redesignating subparagraphs (E) through (I) 
                as subparagraphs (F) through (J), respectively; and
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) planning for community service activities to 
                be carried out by residents, other members of the 
                community, and other persons willing to contribute to 
                the social, economic, or physical improvement of the 
                community;'';
            (3) in paragraph (4)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) to the extent the applicant is requesting 
                amounts for community service activities, a description 
                of the planning activities for community service to be 
                carried out by residents, other members of the 
                community, and other persons willing to contribute to 
                the social, economic, or physical improvement of the 
                community;''; and
            (5) in paragraph (5)--
                    (A) in subparagraph (F), by inserting before the 
                semicolon at the end the following: ``, taking into 
                consideration the condition of the public housing of 
                the public housing agency as a whole'';
                    (B) by striking subparagraph (E);
                    (C) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (E) and (F), respectively; and
                    (D) by adding at the end the following new flush 
                material:
        ``In making grants under this subsection, the Secretary may 
        select a lower-rated application that meets the requirements 
        pursuant to this section instead of a higher-rated application 
        to increase the national geographic diversity among 
        applications approved under this section.''.
    (b) Implementation Grants.--Subsection (d) of section 24 of the 
United States Housing Act of 1937 is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (I), by striking ``except 
                that'' and all that follows and inserting the 
                following: ``except that--
                            ``(i) not more than 20 percent of any grant 
                        under this subsection may be used for such 
                        purpose; and
                            ``(ii) an amount equal to 15 percent of the 
                        amount of any grant under this subsection used 
                        for such purposes shall be contributed from 
                        non-Federal sources, and may be in the form of 
                        cash, administrative costs, and the reasonable 
                        value of in-kind contributions, and may include 
                        funding under title I of the Housing and 
                        Community Development Act of 1974.'';
                    (B) by redesignating subparagraphs (E) through (I) 
                (as so amended) as subparagraphs (G) through (K), 
                respectively; and
                    (C) by inserting after subparagraph (D) the 
                following new subparagraphs:
                    ``(E) community service activities to be carried 
                out by residents, other members of the community, and 
                other persons willing to contribute to the social, 
                economic, or physical improvement of the community;
                    ``(F) replacement of public housing units;'';
            (2) in paragraph (3)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) to the extent the applicant is requesting 
                amounts for community service activities, a description 
                of the community service activities to be carried out 
                by residents, other members of the community, and other 
                persons willing to contribute to the social, economic, 
                or physical improvement of the community;''; and
            (3) in paragraph (4)--
                    (A) by striking subparagraph (D) and inserting the 
                following new subparagraph:
                    ``(D) the quality of the proposed revitalization 
                program and the suitability of the project for such a 
                program;'';
                    (B) in subparagraph (F), by inserting before the 
                semicolon at the end the following: ``, taking into 
                consideration the condition of the public housing of 
                the applicant as a whole''; and
                    (C) by striking subparagraph (E);
                    (D) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (E) and (F), respectively; and
                    (E) by adding at the end the following new flush 
                material:
        ``In making grants under this subsection, the Secretary may 
        select a lower-rated application that meets the requirements 
        pursuant to this section instead of a higher-rated application 
        to increase the national geographic diversity among 
        applications approved under this section.''.
    (c) Exceptions to General Program Requirements.--Section 24(e) of 
the United States Housing Act of 1937 is amended--
            (1) by striking the first sentence of paragraph (2) and 
        inserting the following new sentence: ``For projects 
        revitalized under this section, a public housing agency may--
                    ``(A) in lieu of selecting tenants pursuant to the 
                preferences specified under section 6(c)(4)(A)(i), 
                select tenants pursuant to a local system of 
                preferences;
                    ``(B) in making dwelling units in such projects 
                available for occupancy, disregard the order in which 
                applications were made for residency in public housing 
                dwelling units or any waiting lists established for 
                such residency to provide for substantial variation in 
                the incomes of families residing in the project, 
                subject to the provisions of this Act relating to 
                income eligibility in public housing projects (as 
                modified under subparagraph (C));
                    ``(C) notwithstanding section 16 of this Act, 
                provide for low-income families to occupy not more than 
                50 percent of the dwelling units in a project, and
                    ``(D) establish ceiling rents under section 
                3(a)(2).''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Demolition and replacement.--
                    ``(A) In general.--Notwithstanding any other 
                applicable law or regulation, a revitalization plan 
                under this section may include demolition of public 
                housing units and replacement of such units on site or 
                in the same neighborhood if the number of replacement 
                units provided in the same neighborhood is fewer than 
                the number of units demolished as a result of the 
                revitalization effort.
                    ``(B) Tenant-based assistance.--Notwithstanding the 
                limitation in subparagraph (C) of section 18(b)(3), a 
                public housing agency may replace not more than one-
                third of the units demolished or disposed of through a 
                revitalization project under this section with tenant-
                based assistance under section 8, but only if the 
                public housing agency demonstrates to the satisfaction 
                of the Secretary that the local housing market in which 
                the assistance is to be used has had a vacancy rate, 
                among units whose rent does not exceed the fair market 
                rental for the area established under section 8(e), of 
                more than 3 percent for at least 6 consecutive months.
                    ``(C) Alternative methods of replacement.--A 
                revitalization plan under this section may provide for 
                replacement of public housing units in the manners 
                under subparagraph (D) of this paragraph (and not 
                subject to the requirements of subparagraph (B) of 
                section 18(b)(3)) if the agency or corporation enters 
                into such agreements as the Secretary considers 
                necessary to ensure that the replacement units will 
                remain affordable to families eligible for residency in 
                public housing for the remaining useful life of the 
                units, as determined by the Secretary.
                    ``(D) Certificate and new unit mix.--Each such 
                dwelling unit demolished, disposed of, or otherwise 
                eliminated pursuant to this paragraph shall be replaced 
                with an additional dwelling unit through any 
                combination of--
                            ``(i) additional public housing dwelling 
                        units;
                            ``(ii) units or housing described in clause 
                        (iv), (v), (vii), (viii), or (ix) of section 
                        18(b)(3)(A);
                            ``(iii) rental units that are (I) assisted 
                        under title II of the Cranston-Gonzalez 
                        National Affordable Housing Act 
                        (notwithstanding section 212(d)(2) of such 
                        Act), or (II) assisted under a State or local 
                        rental assistance program that provides for 
                        rental assistance over a term of not less than 
                        5 years that is comparable in terms of 
                        eligibility and contribution to rent to 
                        assistance under section 8; but this clause 
                        shall apply to a revitalization program only if 
                        the agency demonstrates to the satisfaction of 
                        the Secretary that the local housing market in 
                        which the assistance is to be used has had a 
                        vacancy rate, among units whose rent does not 
                        exceed the fair market rental for the area 
                        established under section 8(e), of more than 3 
                        percent for at least 6 consecutive months; or
                            ``(iv) other manners approved by the 
                        Secretary.''.
    (d) Definitions.--Subsection (h) of section 24 of the United States 
Housing Act of 1937 is amended--
            (1) by striking paragraph (5) and inserting the following 
        new paragraphs:
            ``(6) Severely distressed public housing.--The term 
        `severely distressed public housing' means a public housing 
        project or building in a project that--
                    ``(A) requires major redesign, reconstruction, or 
                redevelopment, or partial or total demolition, to 
                correct serious deficiencies in the original design 
                (including inappropriately high population density), 
                deferred maintenance, physical deterioration or 
                obsolescence of major systems, and other deficiencies 
                in the physical plant of the project;
                    ``(B) is--
                            ``(i)(I) occupied predominantly by families 
                        with children which have extremely low incomes, 
                        high rates of unemployment, and extensive 
                        dependency on various forms of public 
                        assistance; and
                            ``(II) has high rates of vandalism and 
                        criminal activity (including drug-related 
                        criminal activity) in comparison to other 
                        housing in the area; or
                            ``(ii) has a vacancy rate, as determined by 
                        the Secretary, of 50 percent or more;
                    ``(C) can not be revitalized through assistance 
                under other programs, such as the programs under 
                sections 9 and 14, or through other administrative 
                means because of the inadequacy of available amounts; 
                and
                    ``(D) in the case of an individual building, the 
                building is (in the determination of the Secretary) 
                sufficiently separable from the remainder of the 
                project of which the building is part to make use of 
                the building feasible for purposes of this section.
            ``(7) Support services.--The term `support services' 
        includes all activities which will promote upward mobility, 
        self-sufficiency, and improved quality of life for the 
        residents of the public housing project involved, and shall 
        include literacy training, job training, day care, and economic 
        development activities. Support services may be provided to 
        residents of the neighborhood in which the public housing 
        project involved is located.'';
            (2) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5), respectively; and
            (3) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Community service.--The term `community service' 
        means services provided on a volunteer or limited stipend basis 
        for the social, economic, or physical improvement of the 
        community to be served, including opportunity for the upward 
        mobility of participants providing the community service, 
        through completion of education requirements, job training, or 
        alternative methods of developing skills and job readiness.''.
    (e) Reports.--Section 24(i) of the United States Housing Act of 
1937 is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively.
    (f) Repeal.--Section 24 of the United States Housing Act of 1937 
(42 U.S.C. 1437v) is amended by striking subsection (b).
    (g) Applicability.--Section 24 of the United States Housing Act of 
1937 is amended by adding at the end the following new subsection:
    ``(j) Applicability.--Notwithstanding any provision of this Act, 
with respect to a public housing project that (1) has been selected for 
funding under this section 24 or through the urban revitalization 
demonstration program under the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1993 (Public Law 102-389, 106 Stat. 1579; 42 U.S.C. 1437l note) or 
the Departments of Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1994 (Public Law 103-124, 
107 Stat. 1285; 42 U.S.C. 1437l note), and (2) has an approved 
comprehensive plan under section 14 of this Act, the Secretary may 
apply any provision of this section and the regulations hereunder to 
all activities undertaken at such projects only during revitalization 
(including activities relating to demolition, modernization, 
reconstruction, site improvement, and replacement housing).''.
    (h) Conforming Amendment.--The first sentence of section 25(m)(1) 
of the United States Housing Act of 1937 (42 U.S.C. 1437w(m)(1)) is 
amended to read as follows: ``The term `eligible housing' means a 
public housing project, or one or more buildings within a project, that 
is owned or operated by a troubled public housing agency that has been 
troubled for not less than 3 years and that, as determined by the 
Secretary, has failed to make substantial progress toward effective 
management.''.
    (i) Applicability to Certain Project.--The amendments made by this 
section shall apply with respect to assistance provided before the date 
of the enactment of this Act under section 24 of the United States 
Housing Act of 1937 for the Desire Housing Development, located in New 
Orleans, Louisiana, but only to the extent that the Housing Authority 
of New Orleans submits to the Secretary of Housing and Urban 
Development a description of the revitalization program for such 
project describing the use of such assistance under the provisions of 
such section 24, as amended, which is approved by the Secretary.

SEC. 128. PROGRAM MONITORING AND TECHNICAL ASSISTANCE.

    (a) Definition.--Section 3 of the United States Housing Act of 1937 
(42 U.S.C. 1437a), as amended by adding at the end the following new 
subsection:
    ``(e) Technical Assistance and Services.--As used in sections 
5(c)(9) and 14(k)(1)(B), the term `technical assistance and services' 
shall include any or all undertakings by the Secretary, directly using 
officials and employees of the Secretary, or indirectly under contract 
or otherwise, related to the inspection or oversight of project or 
program development or implementation, training and technical 
assistance, public housing agency or Indian housing authority program, 
project, or general management, crisis management and operations, 
survey research, and the preparation of reports or recommendations to 
the Secretary.''.
    (b) Availability of Development Amounts.--Section 5(c) of the 
United States Housing Act of 1937 (42 U.S.C. 1437c(c)) is amended by 
adding at the end the following new paragraph:
    ``(9) Of any amounts appropriated pursuant to this Act in fiscal 
year 1995 for public housing development (including Indian housing 
development), the Secretary may use not more than 0.5 percent for 
technical assistance and services.''.
    (c) Availability of Modernization Amounts.--Section 14(k)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 1437l(k)(1)), as amended 
by the preceding provisions of this Act, is amended--
            (1) by inserting ``(A)'' before the first sentence; and
            (2) by adding at the end the following new subparagraph:
    ``(B) Of any amounts approved in appropriation Acts for grants 
under this section in fiscal year 1995, the Secretary may use not more 
than 1 percent for technical assistance and services.''.

SEC. 129. APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO INDIAN HOUSING.

    (a) Amendment.--Section 201(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437aa(b)) is amended to read as follows:
    ``(b) Applicability of Title I.--Except as otherwise provided by 
law, the provisions of title I shall apply to low-income housing 
developed or operated pursuant to a contract between the Secretary and 
an Indian housing authority.''.
    (b) Applicability of Amendment.--The amendment made by subsection 
(a) shall not affect provisions of the United States Housing Act of 
1937 that were made applicable to public housing developed or operated 
pursuant to a contract between the Secretary and an Indian housing 
authority in accordance with section 201(b)(2) of such Act, as such 
section existed before the effective date of this section.
    (c) Applicability of Housing and Community Development Act of 
1992.--The provisions of, and the amendments made by, sections 
103(a)(1), 112, 114, 116, 118, 903, and 927 of the Housing and 
Community Development Act of 1992 and sections 301, 302, 303, and 304 
of the Multifamily Housing Property Disposition Reform Act of 1994 
shall apply to public housing developed or operated pursuant to a 
contract between the Secretary and an Indian housing authority.

SEC. 130. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 222(g) of the Housing 
and Urban-Rural Recovery Act of 1983 (12 U.S.C. 1701z-6 note) is 
amended by striking the first two sentences and inserting the following 
new sentence: ``There are authorized to be appropriated to carry out 
this section $35,000,000 for fiscal year 1995 and $35,000,000 for 
fiscal year 1996.''.
    (b) Eligibility for Assistance.--Section 222(b)(1) of the Housing 
and Urban-Rural Recovery Act of 1983 is amended by inserting before the 
semicolon at the end the following: ``, except that the Secretary may 
make a grant to provide additional assistance for an existing child 
care center assisted under this section or to expand an existing child 
care center regardless of whether such center was previously assisted 
under this section''.
    (c) Assistance for Homeless Families.--Section 222(a)(1) of the 
Housing and Urban-Rural Recovery Act of 1983 amended by inserting 
before the period at the end the following: ``(including, for purposes 
of this section, homeless families with children, as defined by the 
Secretary)''.
    (d) Clerical Amendment.--The heading for section 222 of the Housing 
and Urban-Rural Recovery Act of 1983 is amended to read as follows: 
``early childhood development programs''.

SEC. 131. INDIAN HOUSING CHILDHOOD DEVELOPMENT SERVICES.

    (a) Funding.--Section 518(a) of the Cranston-Gonzalez National 
Affordable Housing Act (12 U.S.C. 1701z-6 note) is amended by striking 
the first and second sentences and inserting the following new 
sentence: ``There are authorized to be appropriated to carry out the 
demonstration program under this section $6,000,000 for fiscal year 
1995 and $6,000,000 for fiscal year 1996.''.

SEC. 132. PUBLIC HOUSING ONE-STOP PERINATAL SERVICES DEMONSTRATION.

    Section 521(g) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 1437t note) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated for carrying out the demonstration program under this 
section such sums as may be necessary for each of fiscal years 1995 and 
1996.''.

SEC. 133. SALE OF CERTAIN SCATTERED SITE PUBLIC HOUSING.

    Section 131 of the Housing and Community Development Act of 1992 
(Public Law 102-550; 106 Stat. 3712) is amended by adding at the end 
the following new sentence: ``During the term of the annual 
contributions contract relating to the scattered-site public housing 
originally sold under this section, any proceeds from the disposition 
of replacement scattered-site dwellings purchased with (1) the proceeds 
from such original disposition, or (2) the proceeds from the 
disposition of any replacement scattered-site dwellings, shall be used 
to purchase additional replacement scattered site dwellings, which 
shall be considered public housing for the purposes of such Act and for 
which the Secretary shall provide annual contributions for operation, 
using amounts made available under section 9(c) of such Act.''.

SEC. 134. ELIGIBILITY OF CERTAIN PUBLIC HOUSING FOR DEMOLITION.

    Section 415 of the Department of Housing and Urban Development--
Independent Agencies Appropriations Act, 1988 (Public Law 100-202; 101 
Stat. 1329-213), is amended by striking ``George Loving Place, at 3320 
Rupert Street, Edgar Ward Place, at 3901 Holystone, Elmer Scott Place, 
at 2600 Morris, in Dallas, Texas, or''.

SEC. 135. DEMONSTRATION PROGRAM FOR INNOVATIVE PUBLIC HOUSING AGENCIES 
              AND RESIDENT MANAGEMENT CORPORATIONS.

    (a) Authority.--The Secretary may authorize public housing agencies 
and resident management corporations to carry out demonstrations for 
public housing that--
          (1) test the extent to which aspects of the public housing 
        program may be exempt from certain statutory requirements while 
        continuing to serve eligible families, and
            (2) permit agencies and resident management corporations to 
        establish policies for the operation, maintenance, management, 
        and development (including modernization) of one or more 
        projects, without regard to the requirements applicable to 
        public housing in the United States Housing Act of 1937.
In establishing such policies, public housing agencies and resident 
management corporations shall be subject to any applicable State or 
local law.
    (b) Waiver of Provisions of 1937 Act.--For any demonstration 
authorized under this section, the Secretary may waive the 
applicability of any requirements of the United States Housing Act of 
1937 that the Secretary determines are not consistent with the purposes 
of a demonstration, except requirements--
            (1) limiting occupancy of public housing to low-income 
        families, as defined in section 3 of the United States Housing 
        Act of 1937;
            (2) under section 18 of such Act requiring replacement of 
        units in the case of demolition or disposition (except that the 
        limitation on the use of tenant-based assistance to 
        applications proposing demolition or disposition of 200 or more 
        units may be waived); and
            (3) relating to labor standards.
    (c) Replacement Housing.--
            (1) Authority.--In authorizing a demonstration under this 
        section, the Secretary may authorize a public housing agency to 
        demolish or dispose of public housing units and replace such 
        units on site or in the same neighborhood if the number of 
        replacement units provided in the same neighborhood is fewer 
        than the number of units demolished under the demonstration.
            (2) Tenant-based assistance.--Notwithstanding the 
        limitations in subparagraphs (A)(v) and (C) of section 
        18(b)(3), a public housing agency may replace not more than 
        one-third of the units demolished or disposed of under a 
        demonstration under this section with tenant-based assistance 
        under section 8, but only if the public housing agency 
        demonstrates to the satisfaction of the Secretary that the 
        local housing market in which the assistance is to be used has 
        had a vacancy rate, among units whose rent does not exceed the 
        fair market rental for the area established under section 8(e), 
        of more than 3 percent for at least 6 consecutive months.
            (3) Alternative methods of replacement.--In authorizing a 
        demonstration under this section, the Secretary may authorize a 
        public housing agency to provide for replacement of public 
        housing units in the manners under paragraph (4) of this 
        subsection rather than in the manners specified under the 
        various clauses of section 18(b)(3)(A) (and not subject to the 
        requirements of subparagraph (B) of section 18(b)(3)) if the 
        agency enters into such agreements as the Secretary considers 
        necessary to ensure that the replacement units will remain 
        affordable to families eligible for residency in public housing 
        for the remaining useful life of the units, as determined by 
        the Secretary.
            (4) Certificate and new unit mix.--Each such dwelling unit 
        demolished, disposed of, or otherwise eliminated pursuant to 
        this subsection shall be replaced with an additional dwelling 
        unit through any combination of--
                    (A) additional public housing dwelling units;
                    (B) units acquired or otherwise provided for 
                homeownership (including cooperative and condominium 
                interests) by public housing residents under section 
                5(h), subtitle B or C of title IV of the Cranston-
                Gonzalez National Affordable Housing Act, or other 
                programs for homeownership that have program 
                requirements substantially equivalent to the 
                requirements established under section 605 of the 
                Housing and Community Development Act of 1987;
                    (C) affordable housing homeownership units assisted 
                under title II of the Cranston-Gonzalez National 
                Affordable Housing Act and sold to public housing 
                residents;
                    (D) rental units that are (i) assisted under title 
                II of the Cranston-Gonzalez National Affordable Housing 
                Act (notwithstanding section 212(d)(2) of such Act), or 
                (ii) assisted under a State or local rental assistance 
                program that provides for rental assistance over a term 
                of not less than 5 years that is comparable in terms of 
                eligibility and contribution to rent to assistance 
                under section 8; but this subparagraph shall apply to a 
                public housing agency only if the agency demonstrates 
                to the satisfaction of the Secretary that the local 
                housing market in which the assistance is to be used 
                has had a vacancy rate, among units whose rent does not 
                exceed the fair market rental for area established 
                under section 8(e), of more than 3 percent for at least 
                6 consecutive months;
                    (E) housing assisted by a tax credit under section 
                42 of the Internal Revenue Code;
                    (F) housing acquired from the Resolution Trust 
                Corporation or the Federal Deposit Insurance 
                Corporation;
                    (G) housing acquired under section 203 of the 
                Housing and Community Development Amendments of 1978; 
                or
                    (H) other manners approved by the Secretary.
    (d) Waiver of Other Statutory Requirements.--For any demonstration 
authorized under this section, the Secretary may also waive the 
applicability of any provision of law that applies to the projects 
under the demonstration and that the Secretary determines is not 
consistent with the purposes of a demonstration, except that the 
Secretary may not waive any provision of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 or any 
other provision of law relating to equal opportunity, 
nondiscrimination, or the environment.
    (e) Selection of Demonstrations.--
            (1) Scope.--The Secretary may select not more than 25 
        public housing agencies or resident management corporations (or 
        a combination of both) to carry out not more than 25 
        demonstrations under this section. Not more than 5 of the 
        agencies selected may be agencies designated pursuant to 
        section 6(j) of the United States Housing Act of 1937 as 
        troubled or troubled with respect to the public housing 
        modernization program under section 14 of such Act.
            (2) Criteria.--The Secretary shall select agencies and 
        corporations based on selection criteria established by the 
        Secretary, which shall include the following factors:
                    (A) The need for a range of project sizes.
                    (B) The need for a range of types of public housing 
                agencies and resident management corporations.
                    (C) The potential effects and benefits that the 
                variations proposed by the agency or corporation could 
                have on the public housing program if the variations 
                were adopted for the whole program.
    (f) Requirements.--The Secretary may authorize a demonstration 
program under this section only if the Secretary determines that the 
demonstration--
            (1) would not, over the term of the demonstration, result 
        in the Federal Government incurring greater costs than the 
        government would otherwise incur if the demonstration were not 
        authorized;
            (2) is consistent with the overall purposes of the public 
        housing program;
            (3) is evaluated by an independent party; and
            (4) is consistent with the Fair Housing Act, title VI of 
        the Civil Rights Act of 1964, section 504 of the Rehabilitation 
        Act of 1973, the Age Discrimination Act of 1975, and the 
        National Environmental Policy Act of 1969.
    (g) Authority to Establish Additional Requirements.--In authorizing 
a demonstration under this section, the Secretary may impose such 
requirements as the Secretary considers to be appropriate to further 
the purposes of the demonstration.
    (h) Reports.--
            (1) Report on demonstration.--For each demonstration site, 
        the public housing agency or resident management corporation 
        carrying out the demonstration shall submit an annual progress 
        report to the Secretary. For each demonstration carried out 
        under this section, the Secretary shall submit a report to 
        Congress not later than 1 year after completion of the 
        demonstration, describing the results of the demonstration and 
        making any recommendations for legislation.
            (2) Report on waiver for new york city.--The Secretary 
        shall conduct a study of the advisability, practicality, and 
        effects of exempting the New York City Housing Authority from 
        any provisions of law or regulation establishing requirements 
        for the site on which, and neighborhood in which, public 
        housing is developed. The Secretary shall submit a report to 
        the Congress not later than 6 months after the date of the 
        enactment of this Act describing the results of the study and 
        making a recommendation with respect to such exemption.
    (i) Term of Demonstrations.--The authority to carry out a 
demonstration program under this section shall be effective only for 
the period specified by the Secretary in authorizing the demonstration 
program, which may not exceed 5 years.
    (j) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) The terms ``public housing agency'' and ``agency'' mean 
        a public housing agency, as such term is defined in section 
        3(b) of the United States Housing Act of 1937.
            (2) The terms ``resident management corporation'' and 
        ``corporation'' mean a resident management corporation 
        established in accordance with requirements of the Secretary 
        under section 20 of the United States Housing Act of 1937.
            (3) The term ``Secretary'' means the Secretary of Housing 
        and Urban Development.
    (k) Authorization of Appropriations.--There is authorized to be 
appropriated $1,000,000 for the evaluation of demonstrations under this 
section.

SEC. 136. DEMONSTRATION PROGRAM FOR OCCUPANCY OF OTHERWISE VACANT 
              PUBLIC HOUSING UNITS BY MODERATE-INCOME FAMILIES.

    (a) Authority.--The Secretary of Housing and Urban Development may 
carry out a demonstration program under which public housing agencies 
may lease units in public housing projects assisted under the United 
States Housing Act of 1937 to moderate-income families, as such term is 
defined by the Secretary.
    (b) Requirements for Participation.--The Secretary may approve a 
request by a public housing agency to participate in the demonstration 
program only if the Secretary determines that--
            (1) the units proposed for leasing to moderate-income 
        families would otherwise remain vacant;
            (2) the agency has demonstrated that it has actively 
        marketed the units to eligible families and that eligible 
        families are not available to fill the units covered by the 
        application and are not expected to be available for at least 
        12 months; and
            (3) the agency has agreed not to provide tenant-based 
        assistance under the United States Housing Act of 1937 for unit 
        sizes available for occupancy under the demonstration.
    (c) Duration.--The Secretary may authorize a public housing agency 
to participate in the demonstration for up to a 2-year term and may 
extend the term for additional periods of up to 2 years, if the agency 
submits another application that meets the requirements of this 
section.

SEC. 137. STUDY OF ADEQUACY OF PAYMENT IN LIEU OF TAXES.

    The Comptroller General of the United States shall conduct a study 
of the payments made during recent years by public housing agencies to 
State and local governments in lieu of taxes, pursuant to section 6(d) 
of the United States Housing Act of 1937, to determine whether such 
payments adequately compensate for the amount of taxes foregone by such 
governments pursuant to such section. The Comptroller General shall 
submit a report to the Congress describing the results of the study not 
later than the expiration of the 1-year period beginning on the date of 
the enactment of this Act.

                    Subtitle C--Section 8 Assistance

SEC. 141. COMMUNITY INVESTMENT DEMONSTRATION PROGRAM.

    Section 6(j) of the HUD Demonstration Act of 1993 (42 U.S.C. 1437f 
note) is amended to read as follows:
    ``(j) Authorization of Appropriations.--Of any amounts appropriated 
for incremental assistance under section 8 of the United States Housing 
Act of 1937, the Secretary may use not more than $150,000,000 in fiscal 
year 1995 and $200,000,000 in fiscal year 1996 to carry out this 
section.''.

SEC. 142. MERGER OF SECTION 8 RENTAL ASSISTANCE PROGRAMS.

    (a) In General.--Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f) is amended to read as follows:

          ``rental housing assistance for low-income families

    ``Sec. 8. (a) Authority and Purpose.--
            ``(1) In general.--For the purposes of aiding low-income 
        families in obtaining a decent place to live and promoting 
        economically mixed housing, the Secretary may provide 
        assistance payments with respect to existing housing in 
        accordance with the provisions of this section.
            ``(2) Elderly housing.--Notwithstanding any other provision 
        of this Act, assistance payments under this section may be 
        provided, in accordance with regulations prescribed by the 
        Secretary, with respect to some or all of the units in any 
        project approved pursuant to section 202 of the Housing Act of 
        1959 (as in effect before October 1, 1991).
    ``(b) Annual Contributions Contracts for Rental Assistance.--
            ``(1) In general.--The Secretary may enter into annual 
        contributions contracts under this subsection with public 
        housing agencies to provide rental housing assistance under 
        this section for low-income families. Such annual contributions 
        contracts shall bind the Secretary to make such authority, and 
        any amendments increasing such authority, available to the 
        public housing agency for a specified period.
            ``(2) Secretary acting as pha.--In areas where no public 
        housing agency has been organized or where the Secretary 
        determines that a public housing agency is unable to implement 
        the provisions of this section, the Secretary may enter into 
        such contracts and perform the other functions assigned to a 
        public housing agency by this section.
            ``(3) Treatment of assistance for supportive housing for 
        the disabled.--The Secretary may not consider the receipt by a 
        public housing agency of assistance under section 811(b)(1) of 
        the Cranston-Gonzalez National Affordable Housing Act, or the 
        amount received, in approving assistance under this section for 
        the agency or in determining the amount of such assistance to 
        be provided to the agency.
    ``(c) Assistance Contracts.--
            ``(1) In general.--Each public housing agency that receives 
        amounts under an annual contributions contract may enter into 
        assistance contracts to make rental assistance payments to 
        owners of existing dwelling units in accordance with the 
        provisions of this section.
            ``(2) PHA acting as owner.--A public housing agency may 
        contract to make rental assistance payments under this section 
        to itself (or any agency or instrumentality thereof) as the 
        owner of dwelling units, and the agency shall be subject to the 
        same program requirements as are applied to other owners. In 
        such cases, the Secretary may establish initial rents within 
        applicable limits.
            ``(3) Inapplicable provisions.--Sections 5(e) and 6 and any 
        other provisions of this Act that are inconsistent with the 
        provisions of this section shall not apply to assistance 
        contracts entered into pursuant to this section.
    ``(d) Maximum Monthly Rent.--
            ``(1) In general.--Each assistance contract entered into 
        pursuant to this section shall establish the maximum monthly 
        rent (including utilities and all maintenance and management 
        charges) that the owner is entitled to receive for each 
        dwelling unit for which rental assistance payments are to be 
        made under the contract. Except as provided in paragraph (2), 
        the maximum monthly rent shall not exceed by more than 10 
        percent the fair market rental under subsection (e) for the 
        market area in which the dwelling unit is located. If units 
        assisted under this section are exempt from local rent control 
        while they are so assisted or otherwise, the maximum monthly 
        rent for such units shall be reasonable in comparison with 
        other units in the market area that are exempt from local rent 
        control.
            ``(2) Exception.--The maximum monthly rent may exceed the 
        fair market rental--
                    ``(A) by more than 10 but not more than 20 percent, 
                but only if the Secretary determines that special 
                circumstances warrant such higher maximum rent or that 
                such higher rent is necessary to the implementation of 
                a comprehensive housing affordability strategy under 
                section 105 of the Cranston-Gonzalez National 
                Affordable Housing Act; or
                    ``(B) by such higher amount, only if requested by 
                the low-income family assisted and approved by the 
                public housing agency in accordance with subsection 
                (f)(2).
            ``(3) Annual adjustments.--Each assistance contract shall 
        provide for adjustment in the maximum monthly rents for units 
        covered by the contract not less than annually to reflect 
        changes in the fair market rentals established under subsection 
        (e) for the housing area for similar types and sizes of 
        dwelling units or, if the Secretary determines, on the basis of 
        a reasonable formula.
            ``(4) Adjustments due to expenses.--Each assistance 
        contract shall further provide for the Secretary to make 
        additional adjustments in the maximum monthly rent for units 
        assisted under the contract to the extent the Secretary 
        determines such adjustments are necessary to reflect increases 
        in the actual and necessary expenses of owning and maintaining 
        the units that have resulted from substantial general increases 
        in real property taxes, utility rates, or similar costs that 
        are not adequately compensated for by the adjustment in the 
        maximum monthly rent authorized by paragraph (3). The Secretary 
        shall make additional adjustments in the maximum monthly rent 
        for units under contract (subject to the availability of 
        appropriations for contract amendments) to the extent the 
        Secretary determines such adjustments are necessary to reflect 
        increases in the actual and necessary expenses of owning and 
        maintaining the units that have resulted from the expiration of 
        a real property tax exemption.
            ``(5) Adjustments due to criminal activity.--If the 
        Secretary determines that a project assisted under this section 
        is located in a community where criminal activity is generally 
        prevalent and the operating, maintenance, and capital repair 
        expenses for the project have been substantially increased 
        primarily as a result of the prevalence of such activity, the 
        Secretary may (at the discretion of the Secretary and subject 
        to the availability of appropriations for contract amendments 
        for this purpose), on a project-by-project basis, provide 
        adjustments to the maximum monthly rents, to a level not 
        exceeding 120 percent of the project rents, to cover the costs 
        of maintenance, security, capital repairs, and reserves 
        required for the owner to carry out a strategy acceptable to 
        the Secretary for addressing the problem of criminal activity. 
        The Secretary may waive the applicability of any rent 
        comparability standard required under this subsection to 
        implement this paragraph.
            ``(6) Adjustments due to lead-based paint reduction for 
        housing receiving project-based assistance.--The Secretary may 
        (at the discretion of the Secretary and subject to the 
        availability of appropriations for contract amendments), on a 
        project-by-project basis for projects receiving project-based 
        assistance, provide adjustments to the maximum monthly rents to 
        cover the costs of evaluating and reducing lead-based paint 
        hazards, as defined in section 1004 of the Residential Lead-
        Based Paint Hazard Reduction Act of 1992.
            ``(7) Limitations on adjustments.--
                    ``(A) General comparability rule.--Adjustments in 
                the maximum rents under paragraphs (3) through (6) 
                shall not result in material differences between the 
                rents charged for assisted units and unassisted units 
                of similar quality, type, and age in the same market 
                area, as determined by the Secretary.
                    ``(B) Comparability studies.--
                            ``(i) To carry out subparagraph (A), the 
                        Secretary shall issue regulations to provide 
                        for conducting comparability studies for 
                        projects where the Secretary has reason to 
                        believe that the application of the formula 
                        adjustments under paragraph (3) would result in 
                        such material differences. The Secretary shall 
                        conduct such studies upon the request of any 
                        owner of any project, or as the Secretary 
                        determines to be appropriate by establishing, 
                        to the extent practicable, a modified annual 
                        adjustment factor for such market area, as the 
                        Secretary shall designate, that is 
                        geographically smaller than the applicable 
                        housing area used for the establishment of the 
                        annual adjustment factor under paragraph (3). 
                        The Secretary shall establish such modified 
                        annual adjustment factor on the basis of the 
                        results of a study conducted by the Secretary 
                        of the rents charged, and any change in such 
                        rents over the previous year, for assisted 
                        units and unassisted units of similar quality, 
                        type, and age in the smaller market area. Where 
                        the Secretary determines that such modified 
                        annual adjustment factor cannot be established 
                        or that such factor when applied to a 
                        particular project would result in material 
                        differences between the rents charged for 
                        assisted units and unassisted units of similar 
                        quality, type, and age in the same market area, 
                        the Secretary may apply an alternative 
                        methodology for conducting comparability 
                        studies in order to establish rents that are 
                        not materially different from rents charged for 
                        comparable unassisted units.
                            ``(ii) If the Secretary or appropriate 
                        State agency does not complete and submit to 
                        the project owner a comparability study not 
                        later than 60 days before the anniversary date 
                        of the assistance contract under this section, 
                        the automatic annual adjustment factor shall be 
                        applied. The Secretary may not reduce the 
                        contract rents in effect on or after April 15, 
                        1987, for newly constructed, substantially 
                        rehabilitated, or moderately rehabilitated 
                        projects assisted under this section (including 
                        projects assisted under this section as in 
                        effect prior to November 30, 1983), unless the 
                        project has been refinanced in a manner that 
                        reduces the periodic payments of the owner. Any 
                        maximum monthly rent that has been reduced by 
                        the Secretary after April 14, 1987, and prior 
                        to November 7, 1988, shall be restored to the 
                        maximum monthly rent in effect on April 15, 
                        1987.
                            ``(iii) For any project which has had its 
                        maximum monthly rents reduced after April 14, 
                        1987, the Secretary shall make assistance 
                        payments (from amounts reserved for the 
                        original contract) to the owner of such project 
                        in an amount equal to the difference between 
                        the maximum monthly rents in effect on April 
                        15, 1987, and the reduced maximum monthly 
                        rents, multiplied by the number of months that 
                        the reduced maximum monthly rents were in 
                        effect.
    ``(e) Fair Market Rentals.--
            ``(1) In general.--The Secretary shall establish fair 
        market rentals under this subsection periodically, but not less 
        than annually, for existing rental dwelling units suitable for 
        occupancy by low-income families assisted under this section. 
        The Secretary shall establish the fair market rental by market 
        area for various sizes and types of dwelling units. For a 
        market area, the fair market rental for any size and type of 
        dwelling unit shall be a dollar amount not less than the amount 
        that results in the rents charged for 45 percent of the 
        standard quality rental units of such size and type in the 
        market area being less than such dollar amount. For purposes of 
        determining the dollar amount under the preceding sentence, the 
        Secretary shall consider only rental units occupied by 
        households whose initial occupancy in their current units 
        commenced not more than 15 months before the determination and 
        shall not consider public housing units and units constructed 
        less than 24 months before the determination.
            ``(2) Effectiveness and adjustment.--The Secretary shall 
        publish proposed fair market rentals for each area in the 
        Federal Register with reasonable time for public comment, and 
        such fair market rentals shall become effective upon the date 
        of publication in final form in the Federal Register. Each fair 
        market rental in effect under this subsection shall be adjusted 
        to be effective on October 1 of each year to reflect changes, 
        based on the most recent available data trended so the rentals 
        will be current for the year to which they apply, of rents for 
        existing rental dwelling units, as the case may be, of various 
        sizes and types in the market area suitable for occupancy by 
        families assisted under this section.
            ``(3) Certain areas.--The Secretary shall establish 
        separate fair market rentals under this subsection for 
        Westchester County in the State of New York. The Secretary 
        shall also establish separate fair market rentals under this 
        paragraph for Monroe County in the Commonwealth of 
        Pennsylvania. In establishing fair market rentals for the 
        remaining portion of the market areas in which Monroe County is 
        located, the Secretary shall establish the fair market rentals 
        as if such portion included Monroe County.
            ``(4) Required review.--If at any time, for any public 
        housing agency, more than 50 percent of the families on behalf 
        of whom assistance is provided under this section by the agency 
        are paying as rent more than the amount specified under section 
        3(a) (as authorized in subsection (f)(2)), the agency shall 
        review the fair market rentals established under this 
        subsection for the market areas in the jurisdiction of the 
        public housing agency.
    ``(f) Amount of Monthly Assistance Payment and Due Process 
Rights.--
            ``(1) In general.--The amount of the monthly assistance 
        payment under this section with respect to any dwelling unit 
        shall be the difference between the maximum monthly rent that 
        the contract provides that the owner is to receive for the unit 
        and the rent the family is required to pay under section 3(a).
            ``(2) Increased family payment.--A family on behalf of whom 
        tenant-based assistance payments are made under this section 
        may pay as rent for a dwelling unit assisted under this section 
        more than the amount specified under section 3(a), but only 
        if--
                    ``(A) the family notifies the public housing agency 
                of its interest in a unit renting for an amount that 
                exceeds the permissible maximum monthly rent 
                established for the market area under subsection (d);
                    ``(B) such agency determines that the rent for the 
                unit and the rental payments of the family are 
                reasonable, after taking into account other family 
                expenses (including child care, unreimbursed medical 
                expenses, transportation, and other appropriate family 
                expenses; and
                    ``(C) such amount does not exceed 40 percent of the 
                family's monthly adjusted income.
            ``(3) Increases in assistance payments.--The Secretary 
        shall take any action necessary, including making contracts for 
        assistance payments in amounts exceeding the amounts required 
        upon the initial renting of dwelling units, reserving annual 
        contributions authority for the purpose of amending assistance 
        contracts, or allocating a portion of new authorizations for 
        the purpose of amending assistance contracts, to ensure that 
        assistance payments are increased on a timely basis to cover 
        increases in maximum monthly rents or decreases in family 
        incomes.
            ``(4) Reviews of family incomes.--
                    ``(A) In general.--Reviews of family incomes for 
                purposes of this section shall be made annually and 
                shall be subject to the provisions of section 904(e) of 
                the Stewart B. McKinney Homeless Assistance Amendments 
                Act of 1988. For families for whom an increased rental 
                payment has been approved under paragraph (2), such 
                review shall include determining whether the rent for 
                the unit and the rental payments of the family continue 
                to be reasonable, in accordance with subparagraphs (B) 
                and (C) of paragraph (2).
                    ``(B) Procedures.--The Secretary shall establish 
                procedures that are appropriate and necessary to ensure 
                that income data provided to public housing agencies 
                and owners by families applying for or receiving 
                assistance under this section is complete and accurate.
                    ``(C) Confidentiality.--Any income information 
                received pursuant to this paragraph shall remain 
                confidential and shall be used only for the purpose of 
                verifying incomes in order to determine eligibility of 
                families for benefits (and the amount of such benefits, 
                if any) under this section.
            ``(5) Due process rights in cases of adverse action.--In 
        the case of any action proposed to be taken by a public housing 
        agency, any family receiving assistance under this section 
        adversely affected by such action shall have the right to at 
        least the basic elements of due process with regard to such 
        action, as follows:
                    ``(A) Written notice of the intended adverse action 
                and the reason for such action shall be provided to the 
                family not less than 30 days before the action is to be 
                taken, or, in a case where the health or safety of 
                other families is threatened, a reasonable period of 
                time considering the seriousness of the situation (but 
                not to exceed 30 days).
                    ``(B) The family shall have the right to request a 
                hearing within 30 days after receipt of the notice.
                    ``(C) The family shall have the right to a hearing 
                before an impartial hearing officer.
                    ``(D) The family shall have the right to be 
                represented at the hearing by an attorney or other 
                advocate.
                    ``(E) The family shall have the right to examine 
                the evidence supporting the action and all evidence 
                that the public housing agency intends to use.
                    ``(F) The family shall have the right to present 
                testimonial and documentary evidence and to cross-
                examine adverse witnesses.
                    ``(G) The hearing officer shall issue a written 
                decision, which shall be based solely upon the evidence 
                introduced at the hearing and which shall state the 
                basis of the decision.
    ``(g) Eligibility of Units for Assistance.--
            ``(1) Occupancy status.--Each assistance contract shall 
        provide that assistance payments may be made only with respect 
        to the following dwelling units:
                    ``(A) Occupied units.--A dwelling unit under lease 
                for occupancy by a family determined to be a low-income 
                family at the time it initially occupies the dwelling 
                unit or by a family that qualifies to receive 
                assistance under this section pursuant to section 223 
                or 226 of the Low-Income Housing Preservation and 
                Resident Homeownership Act of 1990.
                    ``(B) Unoccupied units.--An unoccupied dwelling 
                unit, but only if--
                            ``(i)(I) a family vacates the dwelling unit 
                        before the expiration date of the lease for 
                        occupancy, or (II) a good faith effort is being 
                        made to fill the unoccupied unit; and
                            ``(ii) the costs of such vacancy are not 
                        charged to or paid by the family vacating the 
                        dwelling unit.
                Payments for units referred to in this subparagraph may 
                be made only for a period not exceeding 60 days, except 
                that such payments may be made, in the case of a newly 
                constructed or substantially rehabilitated project, 
                after the expiration of such 60-day period in an amount 
                equal to the debt service attributable to such an 
                unoccupied dwelling unit for a period not to exceed one 
                year, if a good faith effort is being made to fill the 
                unit and the unit provides decent, safe, and sanitary 
                housing. No such payment may be made after the 
                expiration of such 60-day period if the Secretary 
                determines that the dwelling unit is in a project which 
                provides the owner with revenues exceeding the costs 
                incurred by such owner with respect to such project.
            ``(2) Owner's status.--A public housing agency shall not 
        approve the rental of a dwelling unit if--
                    ``(A) the owner--
                            ``(i) is debarred, suspended, or subject to 
                        limited denial of participation under part 24 
                        of title 24, Code of Federal Regulations; or
                            ``(ii) has been convicted of drug 
                        trafficking;
                    ``(B) the owner owns any other dwelling unit in the 
                same project, which is assisted under this section and 
                at such time, such unit is not in compliance in any 
                material respect with standards for housing quality for 
                units so assisted, but the public housing agency shall 
                provide an owner of any such dwelling unit a reasonable 
                opportunity to correct the noncompliance before denying 
                approval; or
                    ``(C) the owner owns or has owned dwelling units in 
                the same project, which are assisted under this section 
                (or any other program of the Federal Government for 
                housing assistance) and such units have repeatedly or 
                regularly failed to comply with the housing quality 
                standards applicable to such units.
    ``(h) Other Provisions of Assistance Contracts.--Contracts to make 
assistance payments entered into by any public housing agency (or by 
the Secretary) with an owner of existing housing units shall meet the 
following requirements:
            ``(1) Contract term.--Each assistance contract shall have a 
        term of not less than one month nor more than 180 months. The 
        Secretary shall permit public housing agencies to enter into 
        assistance contracts having terms of less than 12 months to the 
        extent necessary to avoid disruption in assistance to eligible 
        families if the annual contributions contract for the agency 
        under subsection (b) will expire within 1 year.
            ``(2) Preferences.--Each assistance contract shall provide 
        that, in making assistance available pursuant to the contract--
                    ``(A) for not less than 70 percent of the families 
                who initially receive project-based assistance, and
                    ``(B) for not less than 90 percent of the families 
                who initially receive tenant-based assistance in any 1-
                year period,
        preference shall be given to families that (i) occupy 
        substandard housing (including families that are homeless or 
        living in a shelter for homeless families), (ii) are paying 
        more than 50 percent of family income for rent, or (iii) are 
        involuntarily displaced (including displacement because of 
        disposition of a multifamily housing project under section 203 
        of the Housing and Community Development Amendments of 1978) at 
        the time they are seeking assistance under this section.
            ``(3) Secondary preferences.--Each assistance contract 
        shall provide that, for any assistance remaining in any 1-year 
        period after assistance is made available pursuant to paragraph 
        (2), preference for such assistance shall be given to families 
        who qualify under a system of local preferences established by 
        the public housing agency in writing and after public hearing 
        to respond to local housing needs and priorities, which may 
        include--
                    ``(A) assisting very low-income families who either 
                reside in transitional housing assisted under title IV 
                of the Stewart B. McKinney Homeless Assistance Act or 
                participate in a program designed to provide public 
                assistance recipients with greater access to employment 
                and educational opportunities;
                    ``(B) assisting families in accordance with 
                subsection (q)(1)(B);
                    ``(C) assisting families identified by local public 
                agencies involved in providing for the welfare of 
                children as having a lack of adequate housing that is a 
                primary factor in the imminent placement of a child in 
                foster care, or in preventing the discharge of a child 
                from foster care and reunification with his or her 
                family;
                    ``(D) assisting youth, upon discharge from foster 
                care, in cases in which return to the family or 
                extended family or adoption is not available;
                    ``(E) assisting veterans who are eligible and have 
                applied for assistance, will use the assistance for a 
                dwelling unit designed for the handicapped, and, upon 
                discharge or eligibility for discharge from a hospital 
                or nursing home, have physical disability which, 
                because of the configuration of their homes, prevents 
                them from access to or use of their homes; and
                    ``(F) achieving other objectives of national 
                housing policy as established by law.
        A public housing agency may not establish a preference for 
        assistance that provides preference based on residency in the 
        jurisdiction of the public housing agency.
            ``(4) Tenant selection.--Each assistance contract shall 
        provide that the selection of tenants for such dwelling units 
        shall be the function of the owner, subject to any provisions 
        of the annual contributions contract between the Secretary and 
        the agency. The owner shall use tenant selection criteria, 
        which shall provide as follows:
                    ``(A) Prohibition of persons engaged in drug 
                activity.--The criteria shall prohibit any individual 
                or family evicted from housing assisted under this Act 
                by reason of drug-related criminal activity from having 
                a preference under any provision of this paragraph for 
                3 years unless the evicted tenant successfully 
                completes a rehabilitation program approved by the 
                agency or owner. The agency or the owner may waive the 
                application of the preceding sentence under standards 
                established by the Secretary, which shall provide for 
                such waiver for any member of a family of an individual 
                prohibited from tenancy under this subparagraph who the 
                agency or owner determines clearly did not participate 
                in and had no knowledge of such criminal activity or 
                when circumstances leading to eviction no longer exist.
                    ``(B) Other requirements for project-based 
                assistance.--With respect only to project-based 
                assistance, the criteria shall--
                            ``(i) be consistent with the purpose of 
                        improving housing opportunities for very low-
                        income families;
                            ``(ii) be reasonably related to program 
                        eligibility and an applicant's ability to 
                        perform the obligations of the assisted lease;
                            ``(iii) be established in writing; and
                            ``(iv) provide for the owner to promptly 
                        provide to any rejected applicant (I) written 
                        notice of the grounds for the rejection, and 
                        (II) an opportunity to meet with the decision 
                        maker to evaluate the validity of the reasons 
                        for rejection and rectify any erroneous 
                        decisions.
            ``(5) Lease provisions.--Each assistance contract shall 
        provide that the lease between the tenant of any unit and the 
        owner--
                    ``(A) shall be for at least one year or the term of 
                such assistance contract, whichever is shorter;
                    ``(B) shall contain other terms and conditions 
                specified by the Secretary, including provisions 
                meeting the requirements of paragraphs (6), (7), and 
                (8); and
                    ``(C) shall be in a standard form which is used in 
                the local housing market area by the owner and which 
                applies generally to tenants in the property who are 
                not assisted under this section, together with any 
                addendum necessary to include in the lease the 
                provisions required under subparagraph (B).
            ``(6) General grounds for termination of tenancy.--Each 
        assistance contract shall provide that the owner shall not 
        terminate the tenancy of the tenant of any unit except for 
        serious or repeated violation of the terms and conditions of 
        the lease, for violation of applicable Federal, State, or local 
        law, or for other good cause. The withholding of assistance 
        payments for a dwelling unit pursuant to paragraph (10) shall 
        not constitute good cause for termination of the tenancy of the 
        tenant of the unit.
            ``(7) Termination for activity.--Each assistance contract 
        shall provide that any activity that threatens the health, 
        safety, or right to peaceful enjoyment of the premises by other 
        tenants, any activity that threatens the health, safety, or 
        right to peaceful enjoyment of their residences by persons 
        residing in the immediate vicinity of the premises, or any 
        drug-related criminal activity on or near such premises, 
        engaged in by a tenant of any unit, any member of the tenant's 
        household, or any guest or other person under the tenant's 
        control, shall be cause for termination of tenancy.
            ``(8) Notice of termination of tenancy.--Each assistance 
        contract shall provide that before terminating the tenancy of 
        any tenant, the owner shall provide written notice to the 
        tenant specifying the legal and factual grounds for such 
        action, which shall be provided in accordance with any 
        requirements under State or local law.
            ``(9) Maintenance and replacement.--Each assistance 
        contract shall provide that maintenance and replacement 
        (including redecoration) shall be performed in accordance with 
        the standard practice for the building concerned as established 
        by the owner and agreed to by the agency (or the Secretary). 
        With the approval of the Secretary, the public housing agency 
        administering a contract under this section with respect to 
        existing housing units may exercise all management and 
        maintenance responsibilities with respect to the units pursuant 
        to a contract between such agency and the owner of such units.
            ``(10) Enforcement of housing quality standards.--
                    ``(A) In general.--Each assistance contract shall 
                provide for action under this paragraph if a unit 
                assisted under this section fails to comply with the 
                standards for housing quality for units so assisted.
                    ``(B) Notification.--If the agency (or the 
                Secretary) determines that a unit assisted under this 
                section fails to comply in any material respect with 
                the standards for housing quality for units so 
                assisted, the agency (or the Secretary) shall notify 
                the tenant and owner of the unit of the noncompliance 
                and the possible actions under this paragraph.
                    ``(C) Correction of noncompliance.--The agency may 
                approve the dwelling unit for assistance under this 
                section, on the condition that the noncompliance is 
                corrected, if (i) the agency determines that the 
                noncompliance is minor and can be corrected within 15 
                days, (ii) the agency provides notice of the 
                conditional approval to the owner, (ii) the owner 
                provides a written commitment to the agency to correct 
                the noncompliance within the time period required by 
                the agency, not to exceed 15 days, and (iii) the 
                conditional approval will expedite the occupancy of an 
                eligible tenant with assistance under this section. The 
                agency shall reinspect any unit for which conditional 
                approval is made under this subparagraph within the 
                period referred to in clause (ii) of the preceding 
                sentence, and if the agency determines that the 
                noncompliance is not corrected, the agency may take 
                action under subparagraph (D).
                    ``(D) Failure to correct serious noncompliance.--If 
                any serious noncompliance with such standards is not 
                corrected within a reasonable period of time after such 
                notification, the agency (or the Secretary) shall 
                withhold some or all of the assistance amounts under 
                this section with respect to the unit and promptly--
                            ``(i) use such amounts to make necessary 
                        repairs or contract to have such repairs made;
                            ``(ii) release any withheld amounts to the 
                        owner after repairs are made by the owner, in 
                        an amount not exceeding the cost of the 
                        repairs;
                            ``(iii) release any withheld amounts to the 
                        applicable State or local housing agency after 
                        repairs are made by such agency, in an amount 
                        not exceeding the cost of the repairs; or
                            ``(iv) upon the request of the tenant, 
                        release any withheld amounts to--
                                    ``(I) the tenant to reimburse the 
                                tenant for the reasonable cost of any 
                                necessary repairs performed or paid for 
                                by the tenant; or
                                    ``(II) such person secured by the 
                                tenant and approved by the agency (or 
                                the Secretary) to make such necessary 
                                repairs.
                If an agency (or the Secretary) withholds any 
                assistance amounts pursuant to this subparagraph, the 
                agency (or the Secretary) shall promptly notify the 
                tenant of the unit for which assistance is withheld of 
                the withholding and may not terminate the assistance 
                contract unless and until the tenant has relocated to 
                decent, safe, and sanitary housing.
            ``(11) Standards and obligations of residency in housing 
        receiving project-based assistance.--Each assistance contract 
        for project-based assistance under subsection (i) shall provide 
        that the owner shall ensure and maintain compliance with 
        subtitle C of title VI of the Housing and Community Development 
        Act of 1992 and any regulations issued under such subtitle.
            ``(12) Service coordinators.--In determining the amount of 
        assistance provided under an assistance contract for tenant-
        based assistance under this paragraph, the Secretary may 
        increase the amount annually provided with respect to such 
        project to provide for the costs of employing or otherwise 
        retaining the services of one or more service coordinators 
        under section 671 of the Housing and Community Development Act 
        of 1992 to coordinate the provision of any services within the 
        project for residents of the project who are elderly or 
        disabled families.
            ``(13) Other.--Each assistance contract shall provide that 
        the agency and the owner shall carry out such other appropriate 
        terms and conditions as may be mutually agreed to by the agency 
        and owner.
    ``(i) Project-Based Assistance.--
            ``(1) Authority.--Pursuant to an annual contributions 
        contract entered into under subsection (b), a public housing 
        agency may enter into a assistance contract providing for 
        assistance payments under this section that are attached to a 
        structure.
            ``(2) Requirements.--Any public housing agency may approve 
        project-based assistance under this subsection with respect to 
        any or all of the assistance provided by the public housing 
        agency if--
                    ``(A) the owner agrees to rehabilitate the 
                structure other than with assistance under this Act and 
                the owner otherwise complies with the requirements of 
                this section; and
                    ``(B) in the case of any newly constructed 
                structure, the owner or prospective owner agrees to 
                construct the structure other than with assistance 
                under this Act and otherwise complies with the 
                requirements of this section.
            ``(3) Long-term affordability.--
                    ``(A) In general.--In the case of an assistance 
                contract for project-based assistance under this 
                subsection, a public housing agency shall enter into a 
                contract with an owner, contingent upon the future 
                availability of appropriations for the purpose of 
                renewing expiring contracts for assistance payments as 
                provided in appropriations Acts, to extend the term of 
                the underlying assistance contract for such period or 
                periods as the Secretary determines to be appropriate 
                to achieve long-term affordability of the housing. The 
                contract shall obligate the owner to have the 
                extensions of the assistance contract accepted by the 
                owner and the owner's successors in interest.
                    ``(B) Term of assistance for low-income housing 
                preservation.--The contract for assistance may, at the 
                option of the public housing agency, have an initial 
                term not exceeding 15 years for any assistance that is 
                attached--
                            ``(i) to projects assisted under a State 
                        program that permits the owner of the projects 
                        to prepay a State assisted or subsidized 
                        mortgage on the structure; and
                            ``(ii) for the purpose of providing 
                        incentives to owners to preserve such projects 
                        for occupancy by low- and moderate-income 
                        families (for the period that assistance under 
                        this subparagraph is available) and assisting 
                        low-income tenants to afford any increases in 
                        rent that may be required to induce the owner 
                        to maintain occupancy in the project by low- 
                        and moderate-income tenants.
                Any assistance provided to low-income tenants in the 
                manner described in this subparagraph shall not be 
                considered for purposes of the limitation under 
                subsection (h)(2) regarding the percentage of families 
                that may receive assistance under this section who do 
                not qualify for preferences under such subsection.
            ``(4) Service coordinators.--In determining the amount of 
        assistance provided under an assistance contract for project-
        based assistance under this subsection or a contract for 
        assistance for housing constructed or substantially 
        rehabilitated pursuant to assistance provided under section 
        8(b)(2) of this Act (as such section existed before October 1, 
        1983), the Secretary may increase the amount annually provided 
        with respect to such project to provide for the costs of 
        employing or otherwise retaining the services of one or more 
        service coordinators under section 671 of the Housing and 
        Community Development Act of 1992 to coordinate the provision 
        of any services within the project for residents of the project 
        who are elderly or disabled families.
    ``(j) Termination of Assistance Contracts.--
            ``(1) Termination of tenant-based assistance.--
                    ``(A) Notice by owner.--Any owner terminating any 
                assistance contract under this section for tenant-based 
                assistance shall provide written notice to the public 
                housing agency and the tenants involved of the proposed 
                termination not less than 90 days before the 
                termination of the contract. The notice shall specify 
                the date of the termination and the reasons for the 
                termination, with detail sufficient to enable the 
                agency to evaluate whether the termination is lawful.
                    ``(B) Review of notice by pha.--The public housing 
                agency shall review the notice and issue a written 
                finding of the legality of the termination and the 
                reasons for the termination. Within 30 days after 
                issuance of the findings, the owner shall provide 
                written notice to each tenant of the decision, together 
                with the written findings of the agency regarding the 
                termination.
            ``(2) Termination of project-based assistance contracts.--
                    ``(A) Notice by owner.--Any owner terminating any 
                assistance contract under subsection (i) for project-
                based assistance shall provide written notice to the 
                Secretary and the tenants involved of the proposed 
                termination not less than one year before the 
                termination of the contract. The notice shall specify 
                the date of the termination and the reasons for the 
                termination, with detail sufficient to enable the 
                Secretary to evaluate whether the termination is lawful 
                and whether additional actions can be taken by the 
                Secretary to avoid the termination. The notice shall 
                include a statement that the owner and the Secretary 
                may agree to a renewal of the contract, thus avoiding 
                the termination.
                    ``(B) Review of notice by secretary.--The Secretary 
                shall review the notice, shall consider whether 
                additional actions can be taken by the Secretary to 
                avoid the termination, and shall ensure a proper 
                adjustment of the contract rents for the project in 
                compliance with the requirements of subsection (d) and 
                subparagraph (C) of this subsection. The Secretary 
                shall issue a written finding of the legality of the 
                termination and the reasons for the termination, 
                including the actions considered or taken to avoid the 
                termination. Within 30 days after issuance of the 
                findings, the owner shall provide written notice to 
                each tenant of the decision, together with the written 
                findings of the Secretary regarding the termination. 
                The Secretary and the owner shall complete the actions 
                under this paragraph not later than the expiration of 
                the 9-month period beginning upon the date that the 
                owner provides written notice of termination under 
                subparagraph (A).
            ``(3) Adjustment of contract rent.--If an owner provides 
        notice of proposed termination under paragraph (1)(A) or (2)(A) 
        and the contract rent is less than the maximum monthly rent for 
        units assisted under this section, the Secretary shall adjust 
        the contract rent based on the maximum monthly rent for units 
        assisted under this section and the value of the low-income 
        housing.
            ``(4) Notice of rent increases.--Each assistance contract 
        for assistance under this section shall require the owner to 
        notify tenants at least 90 days before the expiration of the 
        contract of any rent increase which may occur as a result of 
        the expiration of such contract.
            ``(5) Definition of termination.--For purposes of this 
        subsection, the term `termination' means the expiration of the 
        assistance contract or the refusal of the owner to renew an 
        assistance contract, which shall include the termination of 
        tenancy by an owner for business reasons.
    ``(k) Rental Assistance for Manufactured Housing.--
            ``(1) In general.--The Secretary may enter into contracts 
        to make assistance payments under this subsection to assist 
        low-income families by making rental assistance payments on 
        behalf of any such family that utilizes a manufactured home as 
        its principal place of residence. In carrying out this 
        subsection, the Secretary may--
                    ``(A) enter into annual contributions contracts 
                with public housing agencies pursuant to which such 
                agencies may enter into assistance contracts to make 
                such assistance payments to the owners of such real 
                property, if such owners agree to make good faith 
                efforts to ensure that such property complies with 
                local health and safety standards for water and sewage 
                systems; or
                    ``(B) enter into such contracts directly with the 
                owners of such real property, if such owners agree to 
                make good faith efforts to ensure that such property 
                complies with local health and safety standards for 
                water and sewage systems.
            ``(2) Use of assistance.--Rental assistance payments under 
        this subsection may be made with respect to the rental of the 
        real property on which is located a manufactured home that is 
        owned by a low-income family or with respect to the rental by 
        such a family of a manufactured home and the real property on 
        which it is located.
            ``(3) Assistance for rental of manufactured home site.--
                    ``(A) Maximum monthly rent.--A contract entered 
                into pursuant to this paragraph shall establish the 
                maximum monthly rent (including maintenance and 
                management charges) that the owner is entitled to 
                receive for the space on which a manufactured home is 
                located and with respect to which assistance payments 
                are to be made. The maximum monthly rent shall not 
                exceed an amount approved or established by the 
                Secretary.
                    ``(B) Amount of monthly assistance payment.--The 
                amount of any monthly assistance payment with respect 
                to any family that rents real property that is assisted 
                under this paragraph, and on which is located a 
                manufactured home that is owned by such family shall be 
                the difference between the rent the family is required 
                to pay under section 3(a) and the sum of--
                            ``(i) the monthly payment made by such 
                        family to amortize the cost of purchasing the 
                        manufactured home;
                            ``(ii) the monthly utility payments made by 
                        such family, subject to reasonable limitations 
                        prescribed by the Secretary; and
                            ``(iii) the maximum monthly rent permitted 
                        with respect to the real property which is 
                        rented by such family for the purpose of 
                        locating its manufactured home;
                except that in no case may such assistance exceed the 
                total amount of such maximum monthly rent.
            ``(4) Assistance for rental of manufactured home and 
        site.--
                    ``(A) Maximum monthly rent.--Contracts entered into 
                pursuant to this paragraph shall establish the maximum 
                monthly rent permitted with respect to the manufactured 
                home and the real property on which it is located and 
                with respect to which assistance payments are to be 
                made. The maximum monthly rent shall not exceed an 
                amount approved or established by the Secretary.
                    ``(B) Amount of monthly assistance payment.--The 
                amount of any monthly assistance payment with respect 
                to any family that rents a manufactured home and the 
                real property on which it is located and that is 
                assisted under this paragraph shall be the difference 
                between the rent the family is required to pay under 
                section 3(a) and the sum of--
                            ``(i) the monthly utility payments made by 
                        such family, subject to reasonable limitations 
                        prescribed by the Secretary; and
                            ``(ii) the maximum monthly rent permitted 
                        with respect to the manufactured home and real 
                        property on which it is located.
            ``(5) Adjustment of maximum monthly rents.--The provisions 
        of paragraphs (3) through (7) of subsection (d) shall apply to 
        the adjustments of maximum monthly rents under this subsection.
            ``(6) Contract term.--Each contract entered into under the 
        subsection shall be for a term of not less than one month and 
        not more than 180 months; except that in any case in which the 
        manufactured home park is substantially rehabilitated or newly 
        constructed, such term may not be less than 240 months, nor 
        more than the maximum term for a manufactured home loan 
        permitted under section 2(b) of the National Housing Act.
            ``(7) Applicability.--The Secretary may carry out this 
        subsection without regard to whether the manufactured home park 
        is existing, substantially rehabilitated, or newly constructed.
            ``(8) Limitation on substantially rehabilitated and newly 
        constructed manufactured home parks.--In the case of any 
        substantially rehabilitated or newly constructed manufactured 
        home park containing spaces with respect to which assistance is 
        made under this subsection, the principal amount of the 
        mortgage attributable to the rental spaces within the park may 
        not exceed an amount established by the Secretary which is 
        equal to or less than the limitation for manufactured home 
        parks described in section 207(c)(3) of the National Housing 
        Act, and the Secretary may increase such limitation in high 
        cost areas in the manner described in such section.
            ``(9) Other requirements.--The Secretary may prescribe 
        other terms and conditions necessary for the purpose of 
        carrying out this subsection and that are consistent with the 
        purposes of this subsection.
    ``(l) Single Room Occupancy Facilities.--
            ``(1) Authority.--In making assistance available under this 
        section and assistance under section 441 and part V of subtitle 
        F of title IV of the Stewart B. McKinney Homeless Assistance 
        Act, the Secretary may provide assistance with respect to 
        residential properties in which some or all of the dwelling 
        units do not contain bathroom or kitchen facilities, if the 
        unit of general local government in which the property is 
        located and the local public housing agency certify to the 
        Secretary that the property complies with local health and 
        safety standards.
            ``(2) Waiver of limitations on assistance for single 
        persons.--The Secretary may waive, in appropriate cases, the 
        limitation and preference in section 3(b)(3)(A) with respect to 
        the assistance made available under this subsection.
    ``(m) Housing for Elderly and Disabled Families.--
            ``(1) Shared housing.--To assist elderly families and 
        disabled families (as defined in section 3(b)) who elect to 
        live in a shared housing arrangement in which they benefit as a 
        result of sharing the facilities of a dwelling with others in a 
        manner that effectively and efficiently meets their housing 
        needs and thereby reduces their costs of housing, the Secretary 
        shall permit assistance provided under this section to be used 
        by such families in such arrangements. In carrying out this 
        subsection, the Secretary shall issue minimum habitability 
        standards for the purpose of ensuring decent, safe, and 
        sanitary housing for such families while taking into account 
        the special circumstances of shared housing.
            ``(2) Priority for nonelderly disabled families.--In 
        allocating assistance under this section, a public housing 
        agency that serves more than one unit of general local 
        government may, at the discretion of the agency, give priority 
        to disabled families that are not elderly families.
            ``(3) Authority to provide preferences for the elderly and 
        reserve units for the disabled.--Notwithstanding subsection 
        (h)(2) or (3), an owner of a covered section 8 housing project 
        (as such term is defined in section 659 of the Housing and 
        Community Development Act of 1992) may give preference for 
        occupancy of dwelling units in the project, and reserve units 
        for occupancy, in accordance with subtitle D of title VI of the 
        Housing and Community Development Act of 1992.
    ``(n) Administrative Fees.--
            ``(1) Basic fee for tenant-based rental program.--The 
        Secretary shall establish a fee for the costs incurred by a 
        public housing agency in administering the program for rental 
        assistance under this section, which shall be, together with 
        other fees authorized under this subsection, included in any 
        amounts provided to the public housing agency under the annual 
        contributions contract for the agency. The amount of the fee 
        for each month for which a dwelling unit is covered by an 
        assistance contract shall be 8.2 percent of the fair market 
        rental established under subsection (e) for a 2-bedroom 
        existing rental dwelling unit in the market area of the public 
        housing agency. The Secretary may increase the fee if necessary 
        to reflect the higher costs of administering small programs and 
        programs operating over large geographic areas.
            ``(2) Other fees.--The Secretary shall also establish 
        reasonable fees (as determined by the Secretary) for--
                    ``(A) the costs of preliminary expenses that a 
                public housing agency documents it has incurred in 
                connection with new allocations of assistance under the 
                program for rental assistance under this section, which 
                shall not exceed $275 per unit assisted;
                    ``(B) the costs incurred in assisting families who 
                experience difficulty (as determined by the Secretary) 
                in obtaining appropriate housing under the program; and
                    ``(C) extraordinary costs approved by the 
                Secretary.
            ``(3) Budget compliance.--The Secretary may establish or 
        increase a fee in accordance with this subsection only to such 
        extent or in such amounts as are provided in appropriation 
        Acts.
            ``(4) Fees for 1995 and 1996.--Notwithstanding any other 
        provision of this subsection, the basic fee for the costs 
        incurred by a public housing agency in administering the 
        program for rental assistance under this section during fiscal 
        years 1995 and 1996 shall be equal to the fee determined for 
        fiscal year 1994 under section 11(a) of the HUD Demonstration 
        Act of 1993.
    ``(o) Portability of Assistance.--
            ``(1) Authority.--Except as provided in paragraphs (3) and 
        (4), any family on behalf of whom is provided tenant-based 
        rental assistance under this section and who moves to an 
        eligible dwelling unit located within the same State, or the 
        same or a contiguous metropolitan statistical area, as the 
        metropolitan statistical area within which is located the area 
        of jurisdiction of the public housing agency approving the 
        assistance for the family, may use such assistance to rent such 
        eligible dwelling unit.
            ``(2) Administration.--The public housing agency having 
        authority with respect to the dwelling unit to which a family 
        moves under this subsection shall have the responsibility of 
        carrying out the provisions of this section with respect to the 
        family. If no public housing agency has authority with respect 
        to the dwelling unit to which a family moves under this 
        subsection, the public housing agency approving the assistance 
        shall have such responsibility.
            ``(3) Local option to ensure minimum area residency.--At 
        the discretion of a public housing agency, the agency may 
        provide that a family may use tenant-based rental assistance 
        under this section to rent an eligible dwelling unit that is 
        not located within the area of jurisdiction of the agency 
        approving the assistance only if, before such use, the family 
        has rented and occupied an eligible dwelling unit within such 
        original jurisdiction for not less than 12 consecutive months 
        using assistance provided by such agency.
            ``(4) Prohibition of portability in cases of lease 
        violation.--A family may not use tenant-based rental assistance 
        as provided in paragraph (1) if the family has moved from a 
        dwelling unit in violation of the lease for the dwelling unit.
            ``(5) Allocations due to portability.--In determining the 
        amount of rental assistance provided under an annual 
        contributions contract for any fiscal year, the Secretary shall 
        consider any reduction in the number of resident families 
        incurred by a public housing agency in the preceding fiscal 
        year as a result of the provisions of this subsection.
            ``(6) Provision of rental assistance for portability 
        purposes.--
                    ``(A) Amount.--To the extent amounts for assistance 
                under this section that are reserved under section 
                213(d)(4) of the Housing and Community Development Act 
                of 1974 are available in a fiscal year, the Secretary 
                shall provide rental assistance under this section in 
                accordance with this paragraph.
                    ``(B) Use.--Amounts provided for use under this 
                paragraph shall be used only to provide a public 
                housing agency with additional amounts (as determined 
                under subparagraph (C)) to provide assistance for 
                families on behalf of whom assistance is provided under 
                this section by another public housing agency and who 
                move into an eligible dwelling unit located within the 
                area of jurisdiction of the agency to receive 
                assistance under this paragraph.
                    ``(C) Requirement.--Amounts provided for use under 
                this paragraph may be made available to a public 
                housing agency in a fiscal year only if, during such 
                fiscal year, the agency has provided assistance 
                pursuant to the first sentence of paragraph (2) on 
                behalf of families who have moved into eligible 
                dwelling units located within the area of jurisdiction 
                of the agency in an amount not less than the lesser of 
                (i) 5 percent of total amount received by the agency 
                for assistance under this section for the fiscal year, 
                or (ii) the amount necessary to assist 25 percent of 
                average annual number of families previously assisted 
                by the agency who relinquish such assistance in a year 
                (based on the preceding 3 calendar years).
    ``(p) Prohibition of Discrimination.--In selecting families for the 
provision of assistance under this section, a public housing agency may 
not exclude or penalize a family solely because the family resides in a 
public housing project.
    ``(q) Special Uses of Rental Assistance.--
            ``(1) Assistance for residents of rehabilitated projects.--
        In the case of low-income families living in rental projects 
        rehabilitated under section 17 of this Act or section 533 of 
        the Housing Act of 1949 before rehabilitation--
                    ``(A) tenant-based rental assistance under this 
                section shall be provided for families who are required 
                to move out of their dwelling units because of the 
                physical rehabilitation activities or because of 
                overcrowding;
                    ``(B) at the discretion of each public housing 
                agency, tenant-based rental assistance under this 
                section may be provided for families who would have to 
                pay more than 30 percent of their adjusted income for 
                rent after rehabilitation whether they choose to remain 
                in, or to move from, the project; and
                    ``(C) the Secretary shall allocate tenant-based 
                rental assistance provided under this section to ensure 
                that sufficient resources are available to address the 
                physical or economic displacement, or potential 
                economic displacement, of existing tenants pursuant to 
                subparagraphs (A) and (B).
            ``(2) Loan management assistance.--
                    ``(A) In general.--The Secretary may provide 
                assistance under this section through a loan management 
                program to assist financially troubled multifamily 
                residential housing projects (i) subject to mortgages 
                that are insured under the National Housing Act or 
                mortgages that have been assigned to the Secretary, 
                (ii) that were held by the Secretary and have been 
                sold, and (iii) that were assisted under section 202 of 
                the Housing Act of 1959.
                    ``(B) Eligibility.--The eligibility of a 
                multifamily residential project for loan management 
                assistance under this paragraph shall be determined 
                without regard to whether the project is subsidized or 
                unsubsidized.
                    ``(C) Extension of contract.--The Secretary shall 
                extend any expiring contract entered into under this 
                section for loan management assistance or execute a new 
                contract for project-based loan management assistance, 
                if the owner agrees to continue providing housing for 
                low-income families during the term of the contract.
            ``(3) Assistance for family unification.--
                    ``(A) In general.--The Secretary may provide 
                assistance under this section to be used only in 
                connection with tenant-based assistance under this 
                section on behalf of any family (i) who is otherwise 
                eligible for such assistance, and (ii) who the public 
                child welfare agency for the jurisdiction has certified 
                is a family for whom the lack of adequate housing is a 
                primary factor in the imminent placement of the 
                family's child or children in out-of-home care or the 
                delayed discharge of a child or children to the family 
                from out-of-home care.
                    ``(B) Allocation.--Any amounts made available under 
                this paragraph shall be allocated by the Secretary 
                through a national competition among applicants based 
                on demonstrated need for assistance under this 
                paragraph. To be considered for assistance, an 
                applicant shall submit to the Secretary a written 
                proposal containing a report from the public child 
                welfare agency serving the jurisdiction of the 
                applicant that describes how a lack of adequate housing 
                in the jurisdiction is resulting in the initial or 
                prolonged separation of children from their families, 
                and how the applicant will coordinate with the public 
                child welfare agency to identify eligible families and 
                provide the families with assistance under this 
                paragraph.
                    ``(C) Definitions.--For purposes of this paragraph:
                            ``(i) Applicant.--The term `applicant' 
                        means a public housing agency.
                            ``(ii) Public child welfare agency.--The 
                        term `public child welfare agency' means the 
                        public agency responsible under applicable 
                        State law for determining that a child is at 
                        imminent risk of placement in out-of-home care 
                        or that a child in out-of-home care under the 
                        supervision of the public agency may be 
                        returned to his or her family.
            ``(4) Neighborhood crime fighters assistance.--
                    ``(A) Assistance.--To the extent amounts for 
                assistance under this section are reserved under 
                section 213(d)(4)(A) of the Housing and Community 
                Development Act of 1974 for use under this paragraph, 
                the Secretary may provide such amounts to any public 
                housing agency approved under subparagraph (C) to make 
                assistance payments under this paragraph on behalf of 
                any family described under subparagraph (B) for the 
                rental of a dwelling unit for the family that, in the 
                determination of the public housing agency (after 
                consultation with law enforcement agency concerned) 
                provides for the protection of the family.
                    ``(B) Eligible families.--A family referred to in 
                subparagraph (A) shall be any family that--
                            ``(i) contains a member that has provided 
                        information to any Federal, State, or local law 
                        enforcement agency that such law enforcement 
                        agency determines substantially contributes to 
                        the arrest, criminal prosecution, or conviction 
                        of any person for any criminal activity in or 
                        near the area or neighborhood in which the 
                        person providing the information resides;
                            ``(ii) is likely, in the determination of 
                        such law enforcement agency, to be subject to a 
                        crime of violence directed at the family on 
                        account of providing the information referred 
                        to in clause (i);
                            ``(iii) is legally residing, at the time 
                        such information is provided to the law 
                        enforcement agency, in a dwelling unit in a 
                        public housing project administered by a public 
                        housing agency meeting the requirements of 
                        subparagraph (C) or in a dwelling unit assisted 
                        under this section by such a public housing 
                        agency; and
                            ``(iv) is not protected or assisted, or to 
                        be protected or assisted, under chapter 224 of 
                        title 18, United States Code.
                    ``(C) Eligible pha's.--The Secretary may provide 
                amounts reserved for use under this paragraph only to 
                public housing agencies approved by the Secretary under 
                this subparagraph. The Secretary may approve only 
                agencies that the Secretary determines have--
                            ``(i) established sufficient cooperation 
                        with local law enforcement agencies to make 
                        determinations to provide assistance under this 
                        paragraph; and
                            ``(ii) coordinated with local law 
                        enforcement agencies to promptly inform the 
                        public housing agency and the Secretary of any 
                        determination that assistance under this 
                        paragraph is appropriate for a family, except 
                        that such coordination shall be subject to the 
                        procedures established under subparagraph 
                        (F)(iii) to ensure confidentiality.
                    ``(D) Guidelines.--
                            ``(i) Determination of need and 
                        coordination.--The Secretary shall establish 
                        guidelines jointly with the Attorney General 
                        that--
                                    ``(I) describe the types of 
                                situations under clauses (i) and (ii) 
                                of subparagraph (B) in which assistance 
                                may be provided under this paragraph, 
                                which shall include situations in which 
                                the information referred to in 
                                subparagraph (B)(i) is information 
                                regarding any crime that is detrimental 
                                to the health, safety, peace, or 
                                security of the area or neighborhood in 
                                which the family providing the 
                                information resides; and
                                    ``(II) describe elements of 
                                sufficient cooperation between public 
                                housing agencies and law enforcement 
                                agencies for purposes of subparagraph 
                                (C)(i).
                            ``(ii) Procedures.--The Secretary shall 
                        establish procedures for public housing 
                        agencies approved under subparagraph (C)--
                                    ``(I) to apply for, obtain, and 
                                administer amounts reserved for 
                                providing assistance under this 
                                paragraph on behalf of families 
                                eligible under subparagraph (B); and
                                    ``(II) to provide for the 
                                termination of the tenancy of any 
                                family assisted under this paragraph 
                                from the dwelling unit in which the 
                                family is residing so that such 
                                assistance may be utilized.
                    ``(E) PHA actions.--Each public housing agency 
                approved by the Secretary under subparagraph (C) 
                shall--
                            ``(i) periodically notify Federal, State, 
                        and local law enforcement agencies in the area 
                        of jurisdiction of the public housing agency of 
                        the availability of assistance under this 
                        paragraph;
                            ``(ii) take such actions as may be 
                        appropriate to inform residents of public 
                        housing projects administered by the agency and 
                        dwelling units assisted under this section by 
                        the agency of the availability of such 
                        assistance; and
                            ``(iii) coordinate with such law 
                        enforcement agencies to promptly inform the 
                        public housing agency and the Secretary of any 
                        determination that assistance under this 
                        paragraph is appropriate for a family, except 
                        that such coordination shall be subject to the 
                        procedures established under subparagraph 
                        (F)(iii) to ensure confidentiality.
                    ``(F) Notice and confidentiality.--The Secretary 
                shall--
                            ``(i) periodically notify public housing 
                        agencies of the availability of assistance 
                        under this paragraph;
                            ``(ii) encourage public housing agencies to 
                        cooperate and coordinate with law enforcement 
                        agencies to encourage residents of public 
                        housing projects and dwelling units assisted 
                        under this section to provide information to 
                        law enforcement agencies regarding criminal 
                        activity; and
                            ``(iii) develop and implement procedures to 
                        ensure the confidentiality of the identity and 
                        new location of any family assisted under this 
                        paragraph.
                    ``(G) Other assistance.--A public housing agency 
                that provides assistance under subparagraph (A) for a 
                family and the law enforcement agency involved shall 
                ensure that the family is provided access to other 
                assistance and services appropriate to ensure that the 
                relocation of the family to the dwelling unit assisted 
                under subparagraph (A) and the neighborhood of such 
                dwelling unit occurs with the minimum possible amount 
                of disruption to the life of the family.
                    ``(H) Liability.--The United States, and its 
                officers and employees, shall not be subject to any 
                civil liability on account of any decision to provide 
                or not to provide protection under this paragraph.
    ``(r) Renewal of Expiring Contracts.--
            ``(1) 5-year plan.--Not later than 30 days after the 
        beginning of each fiscal year, the Secretary shall publish in 
        the Federal Register a plan for reducing, to the extent 
        feasible, year-to-year fluctuations in the levels of budget 
        authority that will be required over the succeeding 5-year 
        period to renew expiring assistance contracts entered into 
        under this section after the enactment of the Housing and 
        Community Development Act of 1974. To the extent necessary to 
        carry out such plan and to the extent approved in 
        appropriations Acts, the Secretary is authorized to enter into 
        annual contributions contracts with terms of less than 60 
        months.
            ``(2) New construction and substantial rehabilitation 
        projects.--Subject only to the availability of budget authority 
        to carry out this paragraph and to the absence of owners 
        agreeing to enter into new contracts, the Secretary shall enter 
        into new contracts under subtitle D of title I of the Housing 
        and Community Development Act of 1994 to provide project-based 
        assistance for qualified housing (as such term is defined in 
        section 163 of such subtitle) to owners of such housing.
    ``(s) General Provisions.--
            ``(1) Pledging assistance contracts as security.--An owner 
        may pledge, or offer as security for any loan or obligation, an 
        assistance contract entered into pursuant to this section, but 
        only if such security is in connection with a project 
        constructed or rehabilitated pursuant to authority under this 
        section and the terms of the financing or any refinancing have 
        been approved by the Secretary.
            ``(2) Housing counseling for rental choice.--Each public 
        housing agency that provides rental housing assistance under 
        this section on behalf of low-income families shall notify such 
        assisted families of the availability of any entity in the 
        jurisdiction of the agency providing rental housing counseling 
        under section 106(a)(4) of the Housing and Urban Development 
        Act of 1968.
    ``(t) Homeownership Option.--A public housing agency providing 
assistance under this section may, at the option of the agency, provide 
assistance for homeownership under this subsection as follows:
            ``(1) Use of assistance for homeownership.--A family 
        receiving tenant-based assistance under this section may 
        receive assistance for occupancy of a dwelling owned by one or 
        more members of the family if the family--
                    ``(A) is a first-time homeowner;
                    ``(B)(i) participates in the family self-
                sufficiency program under section 23 of the public 
                housing agency providing the assistance; or
                    ``(ii) demonstrates that the family has income from 
                employment or other sources (other than public 
                assistance), as determined in accordance with 
                requirements of the Secretary, that is not less than 
                twice the fair market rental for the area established 
                under subsection (e)(1) (or such other amount as may be 
                established by the Secretary);
                    ``(C) except as provided by the Secretary, 
                demonstrates at the time the family initially receives 
                tenant-based assistance under this subsection that one 
                or more adult members of the family have achieved 
                employment for the period as the Secretary shall 
                require;
                    ``(D) participates in a homeownership and housing 
                counseling program provided by the agency; and
                    ``(E) meets any other initial or continuing 
                requirements established by the public housing agency 
                in accordance with requirements established by the 
                Secretary.
            ``(2) Monthly assistance payment.--
                    ``(A) In general.--Notwithstanding any other 
                provisions of this section governing determination of 
                the amount of assistance payments under this section on 
                behalf of a family, the monthly assistance payment for 
                any family assisted under this subsection shall be the 
                amount by which the fair market rental for the area 
                established under subsection (e)(1) exceeds 30 percent 
                of the family's monthly adjusted income; except that 
                the monthly assistance payment shall not exceed the 
                amount by which the monthly homeownership expenses, as 
                determined in accordance with requirements established 
                by the Secretary, exceeds 10 percent of the family's 
                monthly income.
                    ``(B) Exclusion of equity from income.--For 
                purposes of determining the monthly assistance payment 
                for a family, the Secretary shall not include in family 
                income an amount imputed from the equity of the family 
                in a dwelling occupied by the family with assistance 
                under this subsection.
            ``(3) Recapture of certain amounts.--Upon sale of the 
        dwelling by the family, the Secretary shall recapture from any 
        net proceeds the amount of additional assistance (as determined 
        in accordance with requirements established by the Secretary) 
        paid to or on behalf of the eligible family as a result of 
        paragraph (2)(B).
            ``(4) Downpayment requirement.--Each public housing agency 
        providing assistance under this subsection shall ensure that 
        each family assisted shall provide from its own resources not 
        less than 80 percent of any downpayment in connection with a 
        loan made for the purchase of a dwelling. Such resources may 
        include amounts from any escrow account for the family 
        established under section 23(d). Not more than 20 percent of 
        the downpayment may be provided from other sources, such as 
        from nonprofit entities and programs of States and units of 
        general local government.
            ``(5) Ineligibility under other programs.--A family may not 
        receive assistance under this subsection during any period when 
        assistance is being provided for the family under other Federal 
        homeownership assistance programs, as determined by the 
        Secretary, which shall include assistance under the HOME 
        Investment Partnerships Act, the Homeownership and Opportunity 
        Through HOPE Act, title II of the Housing and Community 
        Development Act of 1987, and section 502 of the Housing Act of 
        1949.
            ``(6) Inapplicability of certain provisions.--Assistance 
        under this subsection shall not be subject to the requirements 
        of the following provisions:
                    ``(A) Subsection (h)(5) of this section.
                    ``(B) Any other provisions of this section 
                governing maximum amounts payable to owners and amounts 
                payable by assisted families.
                    ``(C) Any other provisions of this section 
                concerning contracts between public housing agencies 
                and owners.
                    ``(D) Any other provisions of this Act that are 
                inconsistent with the provisions of this subsection.
            ``(7) Reversion to rental status.--
                    ``(A) FHA-insured mortgages.--If a family receiving 
                assistance under this subsection for occupancy of a 
                dwelling defaults under a mortgage for the dwelling 
                insured by the Secretary under the National Housing 
                Act, the family may not continue to receive rental 
                assistance under this section unless the family (i) 
                transfers to the Secretary marketable title to the 
                dwelling, (ii) moves from the dwelling within the 
                period established or approved by the Secretary, and 
                (iii) agrees that any amounts the family is required to 
                pay to reimburse the escrow account under section 
                23(d)(3) may be deducted by the public housing agency 
                from the assistance payment otherwise payable on behalf 
                of the family.
                    ``(B) Other mortgages.--If a family receiving 
                assistance under this subsection defaults under a 
                mortgage not insured under the National Housing Act, 
                the family may not continue to receive rental 
                assistance under this section unless it complies with 
                requirements established by the Secretary.
                    ``(C) All mortgages.--A family receiving assistance 
                under this subsection that defaults under a mortgage 
                may not receive assistance under this subsection for 
                occupancy of another dwelling owned by one or more 
                members of the family.
            ``(8) Definition of first-time homeowner.--For purposes of 
        this subsection, the term `first-time homeowner' means--
                    ``(A) a family, no member of which has had a 
                present ownership interest in a principal residence 
                during the 3 years preceding the date on which the 
                family initially receives assistance for homeownership 
                under this subsection; and
                    ``(B) any other family, as the Secretary may 
                prescribe.
    ``(u) Definitions.--For purposes of this section:
            ``(1) Annual contributions contract.--The term `annual 
        contributions contract' means a contract under subsection (b) 
        between the Secretary and a public housing agency to provide 
        amounts for rental assistance payments under this section to 
        the public housing agency.
            ``(2) Assistance contract.--The term `assistance contract' 
        means a contract under subsection (c) between a public housing 
        agency (or the Secretary) and an owner to make rental 
        assistance payments under this section to the owner.
            ``(3) Debt service.--The term `debt service' means the 
        required payments for principal and interest made with respect 
        to a mortgage secured by housing assisted under this Act.
            ``(4) Drug-related criminal activity.--The term `drug-
        related criminal activity' means the illegal manufacture, sale, 
        distribution, use, or possession with intent to manufacture, 
        sell, distribute, or use, of a controlled substance (as such 
        term is defined in section 102 of the Controlled Substances 
        Act).
            ``(5) Owner.--The term `owner' means any private person or 
        entity, including a cooperative, an agency of the Federal 
        Government, or a public housing agency, having the legal right 
        to lease or sublease dwelling units, and such term shall 
        include any principals, general partners, primary shareholders, 
        and other similar participants in any entity owning a 
        multifamily housing project (as such term is defined in 
        subsection (p)(3)), as well as the entity itself.
            ``(6) Participating jurisdiction.--The term `participating 
        jurisdiction' means a State or unit of general local government 
        designated by the Secretary to be a participating jurisdiction 
        under title II of the Cranston-Gonzalez National Affordable 
        Housing Act.
            ``(7) Project-based assistance.--The term `project-based 
        assistance' means rental assistance under this section that is 
        attached to a structure pursuant to subsection (i).
            ``(8) Rent.--The terms `rent' and `rental' include, with 
        respect to members of a cooperative, the charges under the 
        occupancy agreements between such members and the cooperative.
            ``(9) Rental assistance.--The term `rental assistance' 
        means assistance provided under this section on behalf of low-
        income families for the rental of a dwelling unit.
            ``(10) Tenant-based assistance.--The term `tenant-based 
        assistance' means rental assistance under this section that is 
        not project-based assistance.''.
    (b) Conforming Amendments.--
            (1) United states housing act of 1937.--The United States 
        Housing Act of 1937 is amended--
                    (A) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), by 
                striking ``(other than a family assisted under section 
                8(o) or (y) or paying rent under section 8(c)(3)(B))'' 
                and inserting ``(other than a family assisted under 
                section 8(t) or paying rent under section 8(f)(2))'';
                    (B) in section 5 (42 U.S.C. 1437c)--
                            (i) in subsection (c)(7)(C), by striking 
                        ``section 8(b)(1)'' each place it appears and 
                        inserting ``section 8'';
                            (ii) in subsection (j)(1)(B)(i), by 
                        striking ``section 8(o)(6)'' and inserting 
                        ``section 8''; and
                            (iii) in subsection (j)(1)(D), by striking 
                        ``subsection (b) or (o) of'';
                    (C) in section 6(p)(1)(B) (42 U.S.C. 
                1437d(p)(1)(B)), by striking ``holding certificates and 
                vouchers'' and inserting ``eligible and approved for 
                assistance'';
                    (D) in section 21(b)(3)--
                            (i) by striking ``a certificate under 
                        section 8(b)(1) or a housing voucher under 
                        section 8(o)'' and inserting ``tenant-based 
                        assistance under section 8''; and
                            (ii) by striking ``such certificate'' and 
                        inserting ``such assistance'';
                    (E) in section 23--
                            (i) in subsection (a), by striking 
                        ``assistance under the certificate and voucher 
                        programs'' and inserting ``tenant-based 
                        assistance'';
                            (ii) in subsection (b)--
                                    (I) in paragraph (1), by striking 
                                ``assistance under subsection (b) or 
                                (o) of'' and inserting ``tenant-based 
                                assistance under''; and
                                    (II) in paragraph (4), by striking 
                                ``Assistance under the certificate or 
                                voucher programs'' and inserting 
                                ``Tenant-based assistance'';
                            (iii) in subsection (c)(1), by striking 
                        ``assistance under the certificate and voucher 
                        programs of'' and inserting ``tenant-based 
                        assistance from'';
                            (iv) in subsection (d)(3) (as added by 
                        section 185(b) of the Housing and Community 
                        Development Act of 1992 (Public Law 102-550; 
                        106 Stat. 3747)), by striking ``section 8(y)'' 
                        and inserting ``section 8(t)''; and
                            (v) in subsection (h)(1)--
                                    (I) by striking ``section 8(q) for 
                                the costs incurred in administering the 
                                provision of certificate and voucher'' 
                                and inserting ``section 8(n) for the 
                                costs incurred in administering the 
                                provision of tenant-based''; and
                                    (II) by striking ``section 
                                8(q)(2)(A)(i)'' and inserting ``section 
                                8(n)(2)(A)''; and
                    (G) in section 304(g)(3) (42 U.S.C. 1437aaa-
                3(g)(3)), by striking ``section 8(b)(2) and section 
                8(o)(9)'' and inserting ``section 8''.
            (2) Allocation of assisted housing funds.--Section 213 of 
        the Housing and Community Development Act of 1974 (42 U.S.C. 
        1439) is amended--
                    (A) in subsection (d)--
                            (i) in paragraph (1)(A)(ii), by striking 
                        ``section 8(b)(1)'' each place it appears and 
                        inserting ``section 8''; and
                            (ii) in paragraph (2), by striking 
                        ``section 8(d)'' and inserting ``section 
                        8(i)'';
                    (B) in subsection (e), by striking ``section 
                8(b)(1)'' and inserting ``section 8''.
            (3) Supportive housing for elderly families.--Section 
        801(d)(1)(B) of the Cranston-Gonzalez National Affordable 
        Housing Act (12 U.S.C. 1701q note) is amended by striking 
        ``section 8(c)(1)'' and inserting ``section 8(e)''.
            (4) Elderly independence.--Section 803 of the Cranston-
        Gonzalez National Affordable Housing Act (42 U.S.C. 8012) is 
        amended--
                    (A) in subsection (a), by striking ``housing 
                certificates and vouchers'' and inserting ``assistance 
                under section 8 of the United States Housing Act of 
                1937''; and
                    (B) in subsection (b)--
                            (i) in the 1st sentence, by striking ``not 
                        more than 1,500 incremental vouchers and 
                        certificates under sections 8(b) and 8(o) of 
                        the United States Housing Act of 1937'' and 
                        inserting ``incremental assistance under 
                        section 8 of the United States Housing Act of 
                        1937 on behalf of not more than 1,500 frail 
                        elderly persons'';
                            (ii) in the 3rd sentence, by striking ``the 
                        housing certificate or voucher program of the 
                        agency'' and inserting ``the agency's program 
                        for assistance under such section 8''; and
                            (iii) in the last sentence, by striking 
                        ``sections 8(b) and 8(o)'' and inserting 
                        ``section 8''.
            (5) Revised congregate housing services.--Section 
        802(k)(6)(B) of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 8011(k)(6)(B)) is amended by striking 
        ``subsection (d)(2)'' and inserting ``subsection (i)''.
            (6) Housing for persons with aids.--Subtitle D of title 
        VIII of the Cranston-Gonzalez National Affordable Housing Act 
        is amended--
                    (A) in section 859(a)(2) (42 U.S.C. 12908(a)(2)) by 
                striking ``section 8(p)'' each place it appears and 
                inserting ``section 8(m)(1)''; and
                    (B) in section 860(a) (42 U.S.C. 12909(a)), by 
                striking ``section 8(n)'' and inserting ``section 
                8(l)''.
            (7) Mc kinney act.--Section 441(b) of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11401(b)) is 
        amended--
                    (A) by striking ``section 8(n)'' and inserting 
                ``section 8(l)''; and
                    (B) by adding at the end the following new 
                sentence: ``Moderate rehabilitation under this section 
                shall be carried out in the manner provided under the 
                provisions of section 8(e) of the United States Housing 
                Act of 1937, as such section was in effect (pursuant to 
                section 289(b)(2) of the Cranston-Gonzalez National 
                Affordable Housing Act) immediately before the 
                enactment of the Housing and Community Development Act 
                of 1994.''.
            (8) Flexible subsidy program.--Section 201 of the Housing 
        and Community Development Amendments of 1978 (12 U.S.C. 1715z-
        1a) is amended--
                    (A) in subsection (m)(2)(A), by striking ``section 
                8(b)(1)'' and inserting ``section 8''; and
                    (B) in subsection (o), by striking ``section 8(v)'' 
                and inserting ``section 8(q)(2)''.
            (9) Hud-owned projects.--Section 203 of the Housing and 
        Community Development Amendments of 1978 (12 U.S.C. 1701z-11) 
        is amended--
                    (A) in subsection (e)(1)(D)--
                            (i) in clause (i)(IV), by inserting before 
                        the semicolon the following: ``, as such 
                        section was in effect (pursuant to section 
                        289(b)(2) of the Cranston-Gonzalez National 
                        Affordable Housing Act) immediately before the 
                        enactment of the Housing and Community 
                        Development Act of 1994''; and
                            (ii) in clause (ii), by striking ``section 
                        8(b)'' and inserting ``section 8'';
                    (B) in subsection (g)(2), by striking ``, 
                8(d)(1)(A)(i), and 8(o)(3)(B)'' and inserting `` and 
                8(h)(2)(iii)''; and
                    (C) in subsection (h)(2), by striking ``section 
                8(c)'' and inserting ``section 8(e)''.
            (10) Housing access.--Section 204 of the Housing and 
        Community Development Amendments of 1978 (12 U.S.C. 1701z-12) 
        is amended by striking ``to a holder of a certificate of 
        eligibility under that section solely because of such 
        prospective tenant's status as a certificate holder'' and 
        inserting ``to a family that is approved for assistance under 
        such section solely because of such the family's status as 
        assisted under such section''.
            (11) ELIHPA of 1987.--The references in sections 
        225(b)(3)(D), 226(a)(3), and 228(a)(4) of the Emergency Low 
        Income Housing Preservation Act of 1987 (as in effect 
        immediately before the enactment of the Cranston-Gonzalez 
        National Affordable Housing Act) to section 8(b) of the United 
        States Housing Act of 1937 shall be considered to refer to 
        section 8(e) of the United States Housing Act of 1937 (as 
        amended by the Housing and Community Development Act of 1994).
            (12) LIHPRHA of 1990.--Title II of the Housing and 
        Community Development Act of 1987 (42 U.S.C. 4101 et seq.) is 
        amended--
                    (A) in section 215(a)--
                            (i) in paragraph (1), by striking ``section 
                        8(c)'' and inserting ``section 8(e)''; and
                            (ii) in paragraph (2), by striking 
                        ``section 8(c)(1)'' and inserting ``section 
                        8(e)(1)'';
                    (B) in section 220(d)(3)(B), by striking ``section 
                8(c)'' and inserting ``section 8(e)'';
                    (C) in section 222--
                            (i) in subsection (a)(2)(D), by striking 
                        ``section 8(c)'' and inserting ``section 
                        8(e)''; and
                            (ii) in subsection (d)(2)(C)(i), by 
                        striking ``sections 8(b) and 8(o) of the United 
                        States Housing Act of 1937 (other than project-
                        based assistance attached to the housing)'' and 
                        inserting ``tenant-based assistance under 
                        section 8 of the United States Housing Act of 
                        1937'';
                    (D) in section 223(a), by striking ``the 
                certificate and voucher programs under sections 8(b) 
                and 8(o)'' and inserting ``section 8''; and
                    (E) in section 226(b)(6)(B), by striking ``sections 
                8(d)(1)(A) and 8(o)(3)'' and inserting ``section 
                8(h)(2)''.
            (13) Disaster relief.--
                    (A) Tenant-based assistance.--Section 931 of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 1437c note) is amended--
                            (i) in the section heading, by striking 
                        ``certificates and vouchers'' and inserting 
                        ``tenant-based assistance''; and
                            (ii) by striking ``assistance under the 
                        certificate and voucher programs under sections 
                        8 (b) and (o)'' and inserting ``tenant-based 
                        assistance under section 8''.
                    (B) Moderate rehabilitation assistance.--Section 
                932 of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 1437c note) is amended by 
                inserting after ``such Act'' the following: ``, as such 
                section was in effect (pursuant to section 289(b)(2) of 
                the Cranston-Gonzalez National Affordable Housing Act) 
                immediately before the enactment of the Housing and 
                Community Development Act of 1994,''.
            (14) Public housing mincs demonstration.--Section 
        522(f)(6)(B) of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 1437f note) is amended--
                    (A) by striking ``assistance under section 8(b)'' 
                and inserting ``tenant-based assistance under section 
                8''; and
                    (B) by striking ``section 8(d)(1)(A)(i)'' and 
                inserting ``section 8(h)(2)''.
            (15) Public housing new construction income eligibility.--
        Section 545(c)(2) of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 1437f note) is amended by striking 
        ``section 8(d)(1)(A)(ii)'' and inserting ``section 8(h)(3)''.
            (16) Section 8 excessive rent burden data.--Section 550(b) 
        of the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 1437f note) is amended--
                    (A) in paragraph (1), by striking ``under the 
                certificate and voucher programs established'' and 
                inserting ``with tenant-based assistance'';
                    (B) in the first sentence of paragraph (2), by 
                striking ``, for each'' and all that follows through 
                ``participating in the program'' and inserting ``the 
                percentage of families receiving tenant-based 
                assistance''; and
                    (C) in paragraph (3), by striking ``assistance 
                under the certicate or voucher program'' and inserting 
                ``tenant-based assistance under section 8 of the United 
                States Housing Act of 1937''.
            (17) Rural housing preservation grants.--Section 533(a) of 
        the Housing Act of 1949 (42 U.S.C. 1490m) is amended by 
        striking ``assistance payments as provided by section 8(o)'' 
        and inserting ``tenant-based assistance payments under section 
        8 (including assistance in accordance with section 8(f)(2)''.
            (18) Federally assisted housing occupancy standards.--
        Section 643(b)(2) of the Housing and Community Development Act 
        of 1992 (42 U.S.C. 13603(b)(2)) is amended by striking 
        ``section 8(d)(1)'' and inserting ``section 8(h)''.
            (19) Reservation of section 8 units for disabled 
        families.--Section 655 of the Housing and Community Development 
        Act of 1992 (42 U.S.C. 13615) is amended by striking ``section 
        8(d)(1)(A)(i) of the United States Housing Act of 1937 and the 
        first sentence of section 8(o)(3)(B) of such Act'' and 
        inserting ``section 8(h)(2) of the United States Housing Act of 
        1937''.
            (20) GAO report on lead exposure.--Section 1056(a) of the 
        Housing and Community Development Act of 1992 (42 U.S.C. 4855) 
        is amended by striking ``subsections (b) and (o) of''.
            (21) National housing act.--The National Housing Act is 
        amended--
                    (A) in section 203(v) (12 U.S.C. 1709(v)), as added 
                by section 185(c)(1)(B) of the Housing and Community 
                Development Act of 1992, by striking ``section 8(y)'' 
                and inserting ``section 8(t)''; and
                    (B) in section 236(f)(5)(A)(i) (12 U.S.C. 1715z-
                1(f)(5)(A)(i)), by striking ``section 8(c)'' and 
                inserting ``section 8(e)''.
    (c) Applicability.--The amendments under this section are made on 
the date of the enactment of this Act, but shall apply on and after 
October 1, 1995, only to assistance under section 8 of the United 
States Housing Act of 1937 provided pursuant to an assistance contract 
entered into or renewed on or after such date. Any such assistance 
provided pursuant to an assistance contract entered into before such 
date shall be subject to the provisions of such section 8 as in effect 
immediately before the enactment of this Act or otherwise applicable to 
such assistance.
    (d) Transition.--
            (1) Conversion.--The Secretary may provide for the 
        conversion of assistance under the certificate and voucher 
        programs, as such programs existed before the date of the 
        enactment of this Act, to the certificate program established 
        under the amendments under this section.
            (2) Continuation of assistance.--The Secretary of Housing 
        and Urban Development shall take any action necessary to ensure 
        that the provision of assistance under section 8 of the United 
        States Housing Act of 1937 to families receiving assistance 
        under such section on the date of the enactment of this Act is 
        not interrupted because of the amendments under this section.
    (e) Regulations.--The Secretary shall implement the amendments 
under this section by regulation issued after notice and opportunity 
for public comment.

SEC. 143. INCENTIVES TO REFINANCE HIGH INTEREST MORTGAGES FOR SECTION 8 
              PROJECTS.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:
    ``(v) Refinancing Incentive.--For a project that (1) was 
constructed, substantially rehabilitated, or moderately rehabilitated 
under this section, (2) is subject to an assistance contract under this 
section, and (3) was subject to a mortgage that has been refinanced 
under section 223(a)(7) or section 223(f) of the National Housing Act 
to lower the periodic debt service payments of the owner, the Secretary 
may pay the owner the amount of the up front costs to the owner of 
refinancing. The Secretary may make such payments only from savings in 
the amount of assistance payments, as determined by the Secretary on a 
project-by-project basis and after application of amounts in accordance 
with section 1012 of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988, that result from the refinancing during the 
first year after the refinancing.''.

SEC. 144. DEMONSTRATION PROGRAM FOR USE OF EXCESS RESIDUAL RECEIPTS.

    (a) In General.--The Secretary of Housing and Urban Development 
shall carry out a demonstration program, in conjunction with State 
housing agencies, under which the Secretary, at the request of owners 
of qualified projects, makes amounts in the account for residual 
receipts or excess amounts for the qualified projects available for use 
under model programs to expand the supply of affordable housing.
    (b) Limitation.--The Secretary may not make any amounts available 
for use under the demonstration program under this section from the 
account of a qualified project for residual receipts or excess amounts 
unless the amount remaining in the account, together with replacement 
reserves for the project, is sufficient (in the determination of the 
Secretary) to maintain, manage, and preserve the project as affordable 
housing.
    (c) Qualified Projects.--For purposes of this section, the term 
``qualified project'' means a housing project--
            (1) assisted with project-based assistance under section 8 
        of the United States Housing Act of 1937; or
            (2) constructed or substantially rehabilitated pursuant to 
        assistance provided under section 8(b)(2) of the United States 
        Housing Act of 1937, as such section existed before November 
        30, 1983.

SEC. 145. TREATMENT OF CERTAIN PROJECTS.

    (a) Conversion of Section 23 Project.--From amounts available for 
the conversion of the Tamaqua Highrise project in the Borough of 
Tamaqua, Pennsylvania, from a leased housing contract under section 23 
of the United States Housing Act of 1937 to tenant-based assistance 
under section 8 of such Act, the Secretary of Housing and Urban 
Development shall, to the extent such amounts are made available in 
appropriation Acts, enter into an obligation for the conversion of the 
project to a project-based rental assistance contract under section 8 
of such Act, notwithstanding the requirement for rehabilitation or the 
percentage limitations under section 8(d)(2) of such Act (as in effect 
before the date of the enactment of this Act) and subparagraph (A) of 
section 8(i)(2) of such Act (as amended by section 143 of this Act).
    (b) Compliance With Rehabilitation Requirement.--Rehabilitation 
activities undertaken by E.T.C. Enterprises in connection with 16 
scattered-site dwelling units that were rehabilitated to provide 
housing for low-income families and are located in Perth Amboy, New 
Jersey, are hereby deemed to have been conducted pursuant to an 
agreement with the Secretary of Housing and Urban Development under 
clause (ii) of the third sentence of section 8(d)(2)(A) of the United 
States Housing Act of 1937 (as in effect before the date of the 
enactment of this Act) and subparagraph (A) of section 8(i)(2) of such 
Act (as amended by section 143 of this Act).

SEC. 146. STUDY OF EXTENT OF NONPARTICIPATION OF OWNERS AND LANDLORDS 
              IN SECTION 8 RENTAL ASSISTANCE PROGRAM.

    The Secretary of Housing and Urban Development shall conduct a 
study--
            (1) to determine the extent to which the requirements of 
        section 8(p)(2) of the United States Housing Act of 1937 (as 
        amended by this Act) and section 8(t) of such Act (as in effect 
        before the enactment of this Act) cause owners of multifamily 
        rental housing to abstain from entering into contracts for 
        housing assistance payments under such section; and
            (2) to identify other factors causing owners of such 
        housing to abstain from entering into such contracts.
In conducting the study, the Secretary shall consult a significant 
number of owners in a wide range of areas. The Secretary shall submit a 
report to the Congress describing the results of the study not later 
than February 1, 1996.

SEC. 147. STUDY OF SECTION 8 HOUSING QUALITY STANDARDS.

    The Secretary of Housing and Urban Development shall conduct a 
study of the existing standards for housing quality for dwelling units 
assisted under the program for rental assistance under section 8 of the 
United States Housing Act of 1937. The study shall determine--
            (1) whether the standards are effective in ensuring decent, 
        safe, and sanitary housing;
            (2) how, and the extent to which, the standards are 
        enforced; and
            (3) how the standards or the enforcement of the standards 
        may be improved.
    The Secretary shall submit a report to the Congress not later than 
2 years after the date of the enactment of this Act describing the 
results of the study and containing any recommendations of the 
Secretary to carry out paragraph (3).

      Subtitle D--Renewal of Expiring Contracts for Section 8 New 
          Construction and Substantial Rehabilitation Projects

SEC. 151. FINDINGS AND PURPOSE.

    (a) Congressional Findings.--The Congress finds that--
            (1) housing built or substantially rehabilitated pursuant 
        to section 8 of the United States Housing Act of 1937 is an 
        important national resource that has provided decent, safe, and 
        affordable housing to hundreds of thousands of low-income 
        families who otherwise would not have obtained affordable 
        housing;
            (2) the Federal Government is the steward of this assisted 
        housing stock and has an affirmative obligation to preserve it 
        as housing for low-income families, consistent with 
        considerations of fairness to all interested parties, including 
        owners, residents, property managers, the community in which 
        the housing is located, and taxpayers;
            (3) because section 8(e)(1) of the United States Housing 
        Act of 1937 (as in effect prior to November 30, 1983) provided, 
        for the most part, that contracts to make assistance payments 
        to owners of newly constructed or substantially rehabilitated 
        housing financed with assistance of a loan made by, or insured, 
        guaranteed or intended for purchase by the Federal Government, 
        other than pursuant to section 244 of the National Housing Act, 
        could not exceed 20 years and because such housing was 
        constructed or substantially rehabilitated during the period 
        from 1975 to 1985, a substantial number of contracts that 
        provide for such assistance will soon expire (with other 
        housing constructed or substantially rehabilitated pursuant to 
        such section of law supported through housing assistance 
        contracts of longer duration, which will expire at a later 
        time);
            (4) failure to enter into new housing assistance contracts 
        under equitable and financially sound terms and conditions will 
        reduce the supply of decent, safe, and affordable housing for 
        low-income Americans, while the demonstrated need for such 
        housing remains great;
            (5) in order for the urban and rural population centers of 
        the United States to regain their viability, the housing stock 
        in such population centers must be preserved, which includes 
        preserving housing built or substantially rehabilitated under 
        section 8 of the United States Housing Act of 1937;
            (6) assisted housing projects located in areas of relative 
        affluence can promote racial, social, and economic integration, 
        and such projects should be maintained as part of the 
        affordable housing inventory to the maximum extent practicable;
            (7) the number of units of housing currently receiving 
        project-based section 8 assistance should not be reduced as a 
        result of the expiration of any current contracts; and
            (8) the number of households currently assisted by reason 
        of residence in housing projects receiving project-based 
        section 8 assistance should not be reduced as a result of the 
        expiration of any current contracts to provide project-based 
        assistance, though some of the specific families currently 
        living in such housing may either receive such assistance in 
        another location or become recipients of tenant-based 
        assistance under appropriate circumstances (with the 
        preference, as a matter of public policy, to the continued 
        assistance of such households through project-based 
        assistance).
    (b) Purpose.--It is the purpose of this subtitle to provide for the 
preservation of affordable housing constructed or substantially 
rehabilitated pursuant to section 8 of the United States Housing Act of 
1937, and to provide affordable housing opportunities for at least the 
same number of families as are provided such housing by reason of their 
residence in housing projects receiving project-based assistance under 
such section, in a manner that is administratively efficient, cost-
effective, and fair to all interested parties, including owners, 
residents, property managers and the communities in which the housing 
is located.

SEC. 152. NOTICES OF CONTRACT EXPIRATION AND INTENTION TO RENEW.

    (a) Notice to Owner.--Not later than 27 months before the date of 
expiration of an expiring contract (or, in the case of a qualified 
project subject to an expiring contract for which the date of 
expiration occurs less than 27 months after the date of the enactment 
of this Act, not later than 6 months after the date of enactment of 
this Act), the Secretary shall notify the owner of the qualified 
project, in writing, that the owner has an affirmative obligation 
pursuant to subsection (b).
    (b) Notice by Owner to Secretary.--Not later than 24 months before 
the date of expiration of an expiring contract (or, in the case of a 
qualified project subject to an expiring contract for which the date of 
expiration occurs less than 27 months after the date of the enactment 
of this Act, not later than 9 months after the date of enactment of 
this Act), the owner of the qualified project shall simultaneously--
            (1) submit to the Secretary written notice stating whether 
        or not the owner intends to enter into a new contract pursuant 
        to this subtitle for project-based assistance for the qualified 
        project; and
            (2) submit a copy of the notice to the chief executive 
        officer of the State or unit of general local government for 
        the jurisdiction within which the project is located, any 
        mortgagee of the project, the tenants of the project (including 
        any resident council for the project), and such other 
        individuals or entities as the Secretary may require.
    (c) Submission of Proposal To Enter Into New Contract.--If in the 
notice required by subsection (b) the owner indicates an intention to 
enter into a new contract for assistance for the qualified project, not 
later than 3 months after submitting such notice to the Secretary, the 
owner shall simultaneously--
            (1) submit to the Secretary a proposal specifying terms and 
        conditions for the new contract, which shall comply with the 
        requirements for new contracts under this subtitle; and
            (2) submit a copy of the notice to the chief executive 
        officer of the State or unit of general local government for 
        the jurisdiction within which the project is located, any 
        mortgagee of the project, the tenants of the project (including 
        any resident council for the project), and such other 
        individuals or entities as the Secretary may require.
    (d) Capital Needs Assessment.--
            (1) Requirement.--Within a reasonable period of time after 
        receiving a proposal under subsection (c) to enter into a new 
        contract for a qualified project, the Secretary shall conduct a 
        comprehensive assessment of the needs of the project to 
        determine the rehabilitation needs and replacement reserves 
        necessary to preserve the project during the ensuing 10-year 
        period.
            (2) Content.--The assessment shall obtain the same 
        information regarding the qualified project that is required to 
        be contained in a comprehensive needs assessment under section 
        403 of the Housing and Community Development Act of 1992 for a 
        covered multifamily housing property subject to title IV of 
        such Act, shall assess the management performance for the 
        project, and shall obtain any other information as the 
        Secretary considers appropriate for purposes of this subtitle 
        regarding the project, tenants, and market area in which the 
        project is located.
    (e) Tenant and Community Participation.--
            (1) Establishment of procedures.--The Secretary shall 
        establish procedures that provide an opportunity for tenants of 
        a qualified project (including any resident council) and other 
        affected parties to participate effectively in the process 
        established under this section and section 153 to determine 
        whether and under what terms and conditions a new contract will 
        be provided for the project or other assistance will be made 
        available.
            (2) Content of procedures.-- The procedures established 
        under this subsection shall include providing timely and 
        adequate written notice of the proposed decisions of the owner 
        and the Secretary regarding the qualified project, timely 
        access to all relevant information (not including information 
        determined to be proprietary under standards established by the 
        Secretary), an adequate period to analyze such information and 
        submit comments to the Secretary (which the Secretary shall 
        take into consideration in carrying out this subtitle), and, if 
        requested, arranging meetings with representatives of the 
        Secretary and the owner.
            (3) Applicability.--The procedures established under this 
        subsection shall provide for the participation of tenants of a 
        qualified project and other affected parties in at least the 
        following actions:
                    (A) Physical inspection of the qualified property 
                under section 155(b) and determination of capital needs 
                of a property pursuant to subsection (d).
                    (B) Any determination under section 154 regarding 
                the owner of the project.
                    (C) Review of notice and any proposal submitted by 
                the owner under subsections (b) and (c) of this 
                section.
                    (D) Determination of the response of the Secretary 
                under section 153.
                    (E) Determination of the terms of any new contract 
                for the project.
                    (F) Establishing and carrying out any plan for sale 
                of the project under section 157(c)(1).
                    (G) Establishing and carrying out of any plan to 
                provide assistance under subsection (d) or (f) of 
                section 157.
            (4) Minimum period for tenant notification.--The Secretary 
        shall notify tenants of a qualified project of any agreement to 
        enter into a new contract for the project or of the failure to 
        enter into a new contract for the project, as the case may be, 
        not less than 12 months before the expiration of expiring 
        contract. If, in the case of a failure to enter into a new 
        contract for a qualified project, the Secretary fails to comply 
        with the requirement under the preceding sentence, the 
        Secretary shall (subject only to the availability of budget 
        authority) provide such additional assistance as may be 
        necessary to extend the contract for such 12-month period.

SEC. 153. SECRETARY'S RESPONSE TO OWNER'S PROPOSAL.

    (a) Requirement.--Except in the case of an owner who submits a 
notice under section 152(b) stating an intention not to enter into a 
new contract and in the case of rejection of an owner's proposal under 
subsection (c), not later than 90 days after an owner submits a 
proposal under section 152(c) for a qualified project (or not later 
than 30 days after the expiration of the period under section 152(b), 
in the case of an owner failing to provide notice under such 
subsection), the Secretary shall take action under subsection (b) to 
enter into a new contract.
    (b) Response to Owner's Proposal.--Subject only to the availability 
of budget authority, the Secretary shall take the following actions:
            (1) Status quo contracts.--In the case of a qualified 
        project for which the maximum monthly rents for units in the 
        project that are assisted under the expiring contract do not 
        (24 months before the date of the expiration of the contract) 
        exceed 110 percent of the fair market rentals for dwelling 
        units of the applicable sizes and types of dwelling units in 
        the market area in which the qualified housing is located and a 
        qualified project for which the owner agrees to reduce the 
        maximum monthly rents so that the rents do not exceed 110 
        percent of such fair market rentals--
                    (A) if the owner's proposal under section 152(c) 
                provides for establishing maximum monthly rents under 
                the contract for dwelling units in the project pursuant 
                to the procedure under section 156(a) and otherwise 
                complies with the requirements of this subtitle, the 
                Secretary shall agree to the owner's proposal and shall 
                enter into a new contract for the project; and
                    (B) if the owner's proposal under section 152(c) 
                does not provide for establishing maximum monthly rents 
                under the contract for dwelling units in the project 
                pursuant to the procedure under section 156(a) or 
                otherwise fails to comply with the requirements of this 
                title, or the owner has failed to submit a proposal, 
                the Secretary shall make an offer to enter into a new 
                contract for the project (by modifying the owner's 
                proposal under section 152(c), if the owner has 
                submitted a proposal) and, if the owner accepts, the 
                Secretary shall enter into such a new contract for the 
                project.
        The Secretary may not offer or agree to enter into a new 
        contract for a qualified project, or enter into such a 
        contract, that establishes maximum monthly rents under the 
        contract for dwelling units in the project pursuant to the 
        procedure under section 156(a) unless the maximum monthly rents 
        under the expiring contract for the project meet the 
        requirements of the matter in this paragraph preceding 
        subparagraph (A).
            (2) Budget-based contracts.--In the case of a qualified 
        project for which the maximum monthly rents for units in the 
        project that are assisted under the expiring contract (24 
        months before the date of the expiration of the contract) 
        exceed 110 percent of the fair market rentals for dwelling 
        units of the applicable sizes and types of dwelling units in 
        the market area in which the qualified housing is located--
                    (A) if the owner's proposal under section 152(c) 
                provides for establishing maximum monthly rents under 
                the contract for dwelling units in the project pursuant 
                to the procedure under section 156(b) and otherwise 
                complies with the requirements of this subtitle, the 
                Secretary shall agree to the owner's proposal under 
                section 152(c) and shall enter into a new contract for 
                the project; and
                    (B) if the owner's proposal under section 152(c) 
                does not provide for establishing maximum monthly rents 
                under the contract for dwelling units in the project 
                pursuant to the procedure under section 156(b) or 
                otherwise fails to comply with the requirements of this 
                title, or the owner has failed to submit a proposal, 
                the Secretary shall make an offer to enter into a new 
                contract for the project (by modifying the owner's 
                proposal under section 152(c), if the owner has 
                submitted a proposal) and, if the owner accepts, the 
                Secretary shall enter into such a new contract for the 
                project.
            (3) Avoiding overconcentration of low-income housing.--
        Notwithstanding paragraphs (1) and (2), with respect to a 
        qualified project for which the Secretary is to provide a new 
        contract under either such paragraph, the Secretary may reduce 
        the number of dwelling units otherwise required to be assisted 
        under the new contract (pursuant to section 155(a)(3)) if--
                    (A) the Secretary determines that the project is 
                located in a market area in which there is a high 
                concentration of dwelling units occupied by or 
                affordable to very low-income families;
                    (B) the Secretary consults with the owner of the 
                project, the tenants of the project (including any 
                resident council), and representatives of the community 
                in which the project is located regarding such 
                reduction and action under subparagraph (D);
                    (C) the owner and affected tenants consent to the 
                reduction and action under subparagraph (D);
                    (D) the Secretary provides project-based assistance 
                for a number of dwelling units that is not less than 
                the difference between the number of units otherwise 
                required to be assisted under the new contract and the 
                number actually assisted under the new contract; and
                    (E) the dwelling units assisted under subparagraph 
                (D) are located in market areas other than the area in 
                which the qualified project is located and such areas 
                do not have a high concentration of dwelling units 
                occupied by or affordable to very low-income families.
        The Secretary shall determine the maximum monthly rents for 
        dwelling units assisted under subparagraph (D) using the 
        procedures under paragraph (2) of this subsection and section 
        156. In determining the maximum monthly rents under the new 
        contract for any dwelling units in the qualified project, the 
        allowance under section 156(b)(1)(G) may be increased to 
        reflect higher costs per unit assisted attributable to 
        assisting less units.
    (c) Rejection of Owner's Proposal.--The Secretary may reject a 
proposal submitted pursuant to section 152(c) only for a reason 
contained in the regulations issued under section 154.
    (d) Notice of Secretary's Action.--The Secretary shall 
simultaneously--
            (1) submit written notice of any action under subsection 
        (b) or (c) to the owner of the qualified project for which such 
        action is taken; and
            (2) submit a copy of the notice to the chief executive 
        officer of the appropriate State or unit of general local 
        government for the jurisdiction within which the project is 
        located, any mortgagee of the project, the tenants of the 
        project (including any resident council for the project), and 
        such other individuals or entities as the Secretary may 
        require.
Notice under this subsection shall be submitted not later than the 
expiration of the period for the qualified project referred to in 
subsection (a). If the Secretary does not provide notice to the owner 
as required under this subsection, the proposal of the owner shall be 
considered to have been accepted without modification. Any notice 
rejecting a proposal by the owner shall clearly state the reason for 
rejecting the proposal.
    (e) Modifications to Owner's Proposal.--The Secretary may propose 
modifications to an owner's proposal submitted pursuant to section 
152(c) only to the extent necessary to make the proposal comply with 
the requirements under this subtitle for acceptance by the Secretary.
    (f) Limitation on Secretary's Authority to Reject or Modify.--The 
Secretary may not reject or propose modifications to a proposal 
submitted pursuant to section 152(c) because an enforcement action is 
pending against the owner. Notwithstanding any other provision of this 
subtitle, in such event, the Secretary shall, subject only to the 
availability of budget authority, extend the applicable expiring 
contract for the period until the enforcement action is concluded.

SEC. 154. LIMITATION ON NEW CONTRACTS.

    (a) In General.--The Secretary may refuse to enter into a new 
contract with the owner of a qualified project if the Secretary 
determines that the owner of the project submitting the proposal has 
committed--
            (1) violations of laws, regulations, regulatory agreements, 
        or other agreements for which the Secretary may impose 
        suspension, debarment, civil money penalties, and such other 
        major forms of enforcement action available to the Secretary 
        under law; or
            (2) other substantial and repeated violations of laws, 
        regulations, regulatory agreements or other agreements that 
        have not been cured within a reasonable period of time after 
        notice was provided to the owner.
    (b) Regulations.--Not later than 45 days after the date of 
enactment of this Act, the Secretary shall publish for comment proposed 
regulations identifying the violations that, under subsection (a), 
prohibit the Secretary from entering into a new contract.

SEC. 155. REQUIRED TERMS OF NEW CONTRACTS.

    (a) In General.--The Secretary may accept the proposal of an owner 
(made under section 152(c) or negotiations pursuant to such a 
proposal), and may propose modifications to such a proposal and make an 
offer to enter into a new contract for qualified housing, only if the 
agreement provides for a new contract for the qualified housing that 
complies with the following requirements:
            (1) Renewal for remaining useful life of property.--A new 
        contract shall contain binding commitments necessary to ensure 
        that--
                    (A) the contract shall be renewed as provided in 
                paragraph (5) upon expiration for the entire remaining 
                useful life of the qualified project subject to the 
                contract, subject only to the availability of budget 
                authority, the provisions of this subtitle, and the 
                provisions of the contract or law regarding termination 
                of the contract for cause; and
                    (B) renewal of the contract under paragraph (5) 
                shall not alter or affect the terms of the contract.
            (2) Project-based assistance.--A new contract shall provide 
        that the Secretary shall provide project-based assistance under 
        this subtitle for dwelling units in the qualified project 
        subject to the contract based upon maximum monthly rents 
        (including utilities and all maintenance and management 
        charges) that the owner may receive for the dwelling units.
            (3) Low-income occupancy.--A new contract shall provide 
        that, during the term of the contract, the owner shall make 
        available for occupancy only by families that (at the time of 
        their initial occupancy) are low-income families or very low-
        income families (as the contract shall provide) the number of 
        dwelling units in the qualified project subject to the contract 
        for which assistance is provided under the expiring contract.
            (4) Maintenance of housing.--The new contract shall require 
        the owner of the qualified project to maintain the housing in 
        compliance with housing quality standards established by the 
        Secretary for housing assisted under section 8 of the United 
        States Housing Act of 1937.
            (5) Contract term.--A new contract shall have a term of 60 
        months and shall be renewable for additional 60-month terms 
        without limitation.
            (6) Section 8 requirements.--A new contract shall provide 
        that the qualified project subject to the contract shall be 
        subject to the requirements applicable to housing assisted 
        under section 8(i) of the United States Housing Act of 1937.
            (7) Capital needs.--A new contract shall contain such terms 
        as the Secretary and the owner agree to regarding conducting 
        rehabilitation and replacement activities for the project and 
        may provide amounts to the owner for meeting immediate 
        rehabilitation and replacement needs of the qualified project 
        if the Secretary determines that providing such amounts would 
        be more cost effective to the Secretary than financing such 
        activities through increased project debt.
            (8) Maximum monthly rents.--A new contract shall provide 
        that the maximum monthly rents for the project under the 
        contract shall be the amount determined under section 156 upon 
        entering into the contract, and shall be adjusted annually as 
        provided under such section, except that--
                    (A) the maximum monthly rents shall be redetermined 
                in the manner provided under sections 153(b) and 156 
                upon each renewal of the contract; and
                    (B) the owner of the project may, at any time, 
                submit a written request to the Secretary for a 
                redetermination of the maximum monthly rents for the 
                project using the procedure under section 156(b) and, 
                after such request, the rents shall be determined using 
                such method for the remainder of the term of the 
                contract.
            (9) Consideration of tenant concerns.--A new contract shall 
        provide that the owner of the qualified housing shall--
                    (A) establish and, in good faith, carry out a 
                procedure, acceptable to the tenants (including any 
                resident council) of the project, for tenants to submit 
                to the owner comments, questions, and requests 
                regarding any issues concerning the project (including 
                the condition, management, and ownership of the 
                project); and
                    (B) make a good faith effort to respond to such 
                comments, questions, and requests within a reasonable 
                period of time.
    (b) Property Inspections and Management Reviews Required by 
Secretary.--The Secretary shall conduct an inspection of the physical 
condition of each qualified project for which a new contract is entered 
into under this subtitle and shall conduct a review of the management 
of each such qualified project, not less than once every 3 years. The 
Secretary may conduct such an inspection or review more often, as the 
Secretary considers appropriate, taking into consideration requests and 
comments from tenants of the qualified project (including any resident 
council) and from representatives of the unit of general local 
government for the jurisdiction in which the project is located.

SEC. 156. MAXIMUM MONTHLY RENT UNDER NEW CONTRACTS.

    (a) Status Quo Rent Determination.--
            (1) Procedure.--If the maximum monthly rents under a new 
        contract for a qualified project are to be established under 
        this subsection, the rents shall be established at the amount 
        equal to the maximum monthly rents under the expiring contract 
        existing at the time 24 months before the date of the 
        expiration of the contract (or an amount mutually agreed to by 
        the Secretary and the owner that is less than such amount).
            (2) Rent adjustments.--Annual increases in the maximum 
        monthly rents for any qualified project for which the rents 
        under a new contract are to be determined under this subsection 
        shall be based on the application of the annual adjustment 
        factor, pursuant to section 8(d)(3) of the United States 
        Housing Act of 1937.
            (3) Service coordinators.--Notwithstanding paragraph (1), 
        the maximum monthly rents established (and adjusted) under this 
        subsection for a qualified project shall be increased to the 
        extent necessary to provide for the total costs of a service 
        coordinator under section 161 for the project.
    (b) Budget-Based Rent Determination.--
            (1) Procedure.--If the maximum monthly rents under a new 
        contract for a qualified project are to be established under 
        this subsection, the rents shall be established at such a level 
        or levels that would provide income sufficient to support the 
        following actual and projected costs of operating the project:
                    (A) Debt service.--The debt service on any 
                federally-insured or assisted loans for the qualified 
                project or any other loans for the project approved by 
                the Secretary at the time the loans were entered into 
                or subsequently, except that the Secretary may provide 
                that such debt service shall not include--
                            (i) any debt service attributable to any 
                        equity loan insured under section 241(f) of the 
                        National Housing Act or any similar loan made 
                        for the purposes of liquidating the equity of 
                        the owner in the qualified project; and
                            (ii) if the Secretary requires refinancing 
                        of debt under section 159 and the owner does 
                        not refinance as provided in such section, any 
                        debt service relating to such debt in excess of 
                        the amount that the Secretary determines is 
                        appropriate under prevailing market conditions 
                        at the time such refinancing was required to 
                        occur.
                    (B) Operating expenses.--Operating expenses for the 
                qualified project, including costs of measures to 
                reduce or control crime, and the total costs of a 
                service coordinator under section 161 for the project.
                    (C) Reserves.--Adequate reserves for the qualified 
                project, as determined pursuant to a comprehensive 
                needs assessment for the project prepared and approved 
                in accordance with title IV of the Housing and 
                Community Development Act of 1992 or in such other 
                manner as the Secretary may require.
                    (D) Allowance for losses.--An allowance for 
                potential operating losses of the qualified project 
                caused by vacancies and failure to collect rents, which 
                shall be an amount equal to 5 percent of any rental 
                income from the project (including any amounts paid in 
                rent for utilities).
                    (E) Distribution to owner.--An allowance for a 
                distribution to the owner of the qualified project, 
                which shall be an amount per dwelling unit in the 
                project per year that is determined by the Secretary 
                taking into consideration the size, location, and 
                amount of rents of the project. The allowance shall be 
                adjusted upon any renewal of the new contract, in the 
                manner determined by the Secretary, to provide for 
                inflation.
                    (F) Tenant organization.--An amount for technical 
                assistance to the resident council (if any) of the 
                qualified project or for technical assistance in 
                organizing or operating a resident council, which shall 
                be an amount equal to $20 per dwelling unit in the 
                project per year. The Secretary shall provide that such 
                amounts shall not be made available to the owner but 
                shall be accessible only by resident councils or by 
                tenants for establishment or operation of resident 
                councils.
                    (G) Allowance for unique costs.--An allowance for 
                unique costs specific to and characteristic of 
                qualified housing or other housing for low-income 
                families receiving project-based assistance from the 
                Secretary, in the amount agreed to by the Secretary and 
                the owner.
                    (H) Allowance for high-rent areas.--If the 
                Secretary determines that the prevailing rents in the 
                market area in which a qualified project is located 
                exceed the fair market rentals for dwelling units of 
                the applicable sizes and types of dwelling units in the 
                market area in which the qualified housing is located--
                            (i) an allowance may be provided (at the 
                        discretion of the Secretary) in an amount 
                        necessary to provide maximum monthly rents 
                        under this subsection in an amount equal to the 
                        prevailing market rents in the area; and
                            (ii) an allowance in the amount referred to 
                        in clause (i) shall be provided if the 
                        Secretary determines that there is a lack of 
                        sufficient housing in the market area in which 
                        the project is located that is affordable to 
                        low-income families.
            (2) Rent adjustments.--
                    (A) In general.--Annual increases in the maximum 
                monthly rents for any qualified project for which the 
                rents under a new contract are to be determined under 
                this subsection shall be based on the application of 
                the operating cost adjustment factor, pursuant to 
                section 8(d)(3) of the United States Housing Act of 
                1937.
                    (B) Excessive adjustments.--The Secretary may 
                require the owner of a qualified project for which a 
                new contract has been provided to submit a proposal in 
                the manner provided under paragraph (3) for 
                redetermination of maximum monthly rents for the 
                project if--
                            (i) not less than 2 rent adjustments have 
                        been made pursuant to subparagraph (A) for the 
                        project;
                            (ii) an intervening redetermination of 
                        maximum monthly rents for the project pursuant 
                        to paragraph (1) has not occurred; and
                            (iii) the Secretary determines that the 
                        rents resulting from the rent adjustments are 
                        materially in excess of the rents necessary to 
                        support the costs for the project described in 
                        paragraph (1).
                If pursuant to such a redetermination the Secretary 
                determines that the rents for the project are greater 
                than the amount described in clause (iii), the 
                Secretary may reduce the maximum monthly rents for the 
                project to the amount described in clause (iii), 
                effective on the first day of the month following 
                written notification by the Secretary to the owner of 
                such new rents.
            (3) Timing.--If the Secretary requests an owner of a 
        qualified project or a project for which a new contract is to 
        be provided to submit a proposal for maximum monthly rents 
        based on costs described in paragraph (1) and the owner fails 
        to submit such a proposal during the 90-day period beginning 
        upon receipt of such request, the Secretary may establish the 
        maximum monthly rents for the project based on such information 
        as is available to the Secretary from the owner's most recent 
        audited financial statements, without the agreement of the 
        owner.
            (4) Additional information from owner.--The owner of a 
        qualified project (including a project for which a new contract 
        has been provided) may, at any time, submit to the Secretary 
        information regarding prevailing rent levels for comparable 
        dwelling units in the market area in which the project is 
        located and the Secretary shall consider such information in 
        making any determinations or agreements under this subsection 
        regarding the project.

SEC. 157. ACTIONS IN CASES OF FAILURE TO ENTER INTO NEW CONTRACT.

    (a) Notice.--If--
            (1) the owner of a qualified project indicates, in the 
        notice required under section 152(b), an intention not to enter 
        into a new contract,
            (2) the Secretary and the owner fail to agree to enter into 
        a new contract after a reasonable period of negotiation, or
            (3) the Secretary refuses to enter into a new contract with 
        the owner pursuant to section 154,
the Secretary shall provide notice containing the information under 
subsection (b) to the owner, the chief executive officer of the State 
or unit of general local government for the jurisdiction within which 
the project is located, any mortgagee of the project, the tenants of 
the project (including any resident council for the project), and such 
other individuals or entities as the Secretary considers appropriate.
    (b) Contents of Notice.--Notice under subsection (a) shall identify 
the qualified project, state the intention of the Secretary to enter 
into a new contract for the project with an owner of the project 
acceptable to the Secretary, state that the Secretary may take either 
of the actions authorized under subsection (c) with respect to the 
project, and propose maximum monthly rents for the project subject to 
the requirements of sections 153(b) and 156.
    (c) Attempted Sale of Project.--After providing notice under 
subsection (b) for a qualified project--
            (1) the Secretary shall negotiate with the owner and other 
        interested parties to develop a plan for sale of the project in 
        a timely manner to a new owner who agrees to enter into a new 
        contract with the Secretary and who may be a nonprofit or for-
        profit entity, a State or local governmental entity, a tenant 
        (or group of tenants) or a resident council; a new contract 
        under this paragraph may be provided pursuant to the loan 
        management program under section 8(q)(2) of the United States 
        Housing Act of 1937 or a contract through a public housing 
        agency for project-based assistance under section 8(i) of such 
        Act; and
            (2) notwithstanding paragraph (1), the Secretary may 
        acquire the qualified project by condemnation, under judicial 
        process, pursuant to the first section of the Act of August 1, 
        1888 (Chapter 728, 25 Stat. 357; 40 U.S.C. 257).
    (d) Failure to Sell Project.--
            (1) Transfer of project-based assistance to other 
        housing.--If, after providing notice under subsection (b) for a 
        qualified project and making reasonable efforts under 
        subsection (c)(1) the Secretary fails to enter into a new 
        contract for the project (and determines that action under 
        subsection (c)(2) is not appropriate), the Secretary shall, 
        subject only to the availability of budget authority and the 
        absence of qualified requests for such assistance, provide 
        project-based rental assistance for at least the same number of 
        dwelling units in housing located within the same market area 
        as the qualified project as were assisted under the expiring 
        contract for the project. Tenants of the qualified project 
        shall be offered initial occupancy in dwelling units assisted 
        pursuant to this paragraph.
            (2) Consultation.--In providing project-based assistance 
        under this subsection, the Secretary shall consult with 
        nonprofit and for-profit entities, State and local governmental 
        entities, and tenants and any resident council of the project, 
        regarding acquisition and operation of housing to be assisted 
        under this subsection.
    (e) Technical Assistance.--Using a portion of any amounts in an 
account for residual receipts established for a qualified project and 
any amounts made available for new contracts under this subtitle, the 
Secretary shall (subject to the availability of such amounts) provide 
for technical assistance for tenants of the project (including any 
resident councils), nonprofit organizations, nonprofit developers of 
affordable housing, and State and local governmental agencies to the 
extent necessary to--
            (1) develop the capacity and ability of such entities to 
        carry out activities pursuant to subsections (c)(1) and (d); 
        and
            (2) assist such entities in preparing submissions, 
        proposals, and such other documents and entering into 
        contracts, agreements, and other arrangements involved in such 
        activities.
    (f) Assistance for Project Tenants.--
            (1) Right to receive assistance.--If, in the notice 
        required by section 152(b), the owner indicates a preference 
        not to enter into a new contract or the Secretary fails to 
        enter into a new contract for the project, the Secretary shall 
        provide assistance under paragraphs (2) and (3), subject only 
        to the availability of budget authority, for each family who on 
        the date of the expiration of the expiring contract resides in 
        a dwelling unit in the project that is assisted under the 
        expiring contract.
            (2) Type of assistance.--Assistance required under this 
        paragraph shall be provided, as determined by the Secretary, in 
        one of the following forms:
                    (A) Tenant-based assistance.--Assistance may be 
                provided as tenant-based rental assistance under the 
                provisions of section 8(b) of the United States Housing 
                Act of 1937, as in effect on June 1, 1994, except that 
                in providing such assistance the Secretary may increase 
                the maximum monthly rental amount to the extent 
                necessary to permit families remain in the dwelling 
                unit they occupy in the qualified project or to obtain 
                a comparable dwelling unit in the same market area.
                    (B) Occupancy in a unit receiving project-based 
                assistance.--The family may be offered occupancy of an 
                available dwelling unit that is assisted under a 
                contract pursuant to subsection (c)(1) or (d).
            (3) Relocation assistance.--Assistance required under this 
        section is assistance to the tenant of a qualified project in 
        the amount of the total cost of relocating to a unit assisted 
        under paragraph (2).

SEC. 158. CONTRACT EXTENSION.

    Subject to the availability of budget authority, the Secretary may 
extend any expiring contract in force on the date of enactment of this 
Act, under identical terms and conditions, for not more than 24 months 
if the Secretary determines that such extension is necessary to protect 
tenants of the qualified project subject to the contract or the General 
Insurance Fund established under section 519 of the National Housing 
Act, except that--
            (1) the authority under this section may be exercised only 
        once for any contract or qualified project; and
            (2) such authority may not be exercised for a qualified 
        project for which the owner has provided timely notification 
        under section 152(b) indicating an intention not to enter into 
        a new contract for the project, unless the owner expressly 
        agrees to the extension or the Secretary is taking action 
        pursuant to section 152(e)(5) or 153(f).

SEC. 159. FINANCING AND RESTRUCTURING UNDERLYING DEBT AND TREATMENT OF 
              RESIDUAL RECEIPTS.

    (a) In General.--Before entering into a new contract with a present 
or future owner of a qualified project, the Secretary shall encourage 
and, subject to the exceptions in subsection (d), may require--
            (1) the restructuring of debt if the costs to the Federal 
        Government of such restructuring are less than the costs 
        incurred by the Federal Government under a contract for 
        assistance under section 8 of the United States Housing Act of 
        1937 at the project's current debt level; and
            (2) the refinancing of all debt that is financed at a rate 
        250 basis points in excess of prevailing market rates for debt 
        with a similar maturity.
Any project refinancing or debt restructuring shall be accompanied by a 
corresponding reduction in the maximum monthly rents for the project.
    (b) FHA-Insured Projects.--Subject to the exceptions set forth in 
subsection (d), the Secretary shall require an owner of a project 
subject to a mortgage insured by the Secretary which is to be assisted 
under a new contract to certify that any debt that meets the conditions 
of paragraph (1) or (2) of subsection (a) will be restructured or 
refinanced, as applicable.
    (c) State-Financed Projects.--The Secretary shall establish 
procedures to inform State agencies that insure or finance mortgages of 
the provisions of this subtitle, and shall encourage such agencies to 
refinance or otherwise restructure debt which meets the conditions of 
paragraph (1) or (2) of subsection (a).
    (d) Exceptions.--The Secretary shall not require the refinancing or 
debt restructuring of any project, if--
            (1) the project was financed through obligations issued by 
        a State or local housing agency or the Government National 
        Mortgage Association and such refinancing or debt restructuring 
        is inconsistent with applicable law or agreements governing 
        such financing; and
            (2) in the Secretary's determination, the refinancing will 
        not result in significant savings to the Department of Housing 
        and Urban Development or to the mortgagor.
    (e) Discretionary Assistance.--To facilitate renewal consistent 
with this section and section 156(b), the Secretary may, from amounts 
appropriated under this subtitle--
            (1) pay the owner's nonmortgageable transaction costs;
            (2) provide the State insuring agency or the mortgagee with 
        an equitable share of the savings recaptured from the 
        refinancing;
            (3) apply a share of the savings recaptured from the 
        refinancing to the project's reserves or capital expenses;
            (4) bifurcate the note to leave a first note serviceable 
        within rents reflective of the local market; and
            (5) assist in financing a project's rehabilitation needs 
        through the provision of up-front grants from--
                    (A) residual receipts distributed to the Secretary;
                    (B) the budget authority provided for increases in 
                new contracts to pay for rehabilitation, if the 
                Secretary determines that the provision of such grants 
                in addition to rental assistance under section 8 of the 
                United States Housing Act of 1937 would be cost-
                effective; and
                    (C) savings resulting from refinancing or otherwise 
                restructuring the debt.
    (f) Residual Receipts.--
            (1) In general.--Residual receipts distributed to the 
        Secretary shall be retained by the Secretary for use under this 
        subtitle.
            (2) Expedited acquisition.--The Secretary may expedite the 
        acquisition of residual receipts by entering into agreements 
        with owners of housing covered by an expiring contract to 
        provide such owner with a share of the receipts, not to exceed 
        15 percent, only if the share will be applied to the project or 
        to its reserves.

SEC. 160. RETENTION OF PROGRAM SAVINGS BY SECRETARY.

    Any savings achieved through implementation of the provisions of 
this Act, except for such savings made available to State or local 
housing agencies pursuant to section 159, shall be retained by the 
Secretary to increase affordable housing opportunities, in such manner 
as may be determined by statute, or as may be determined by the 
Secretary.

SEC. 161. SUPPORTIVE SERVICES.

    (a) Provision of Service Coordinator.--Each owner of qualified 
project or a project for which a new contract has been provided shall 
provide, to the extent amounts are available pursuant to subsection (b) 
or another provision of this subtitle, that the project is served (on a 
full- or part-time basis in a manner approved by the Secretary) by a 
service coordinator under section 671 of the Housing and Community 
Development Act of 1992. The preceding sentence shall apply only after 
the expiration of the 270-day period beginning on the date of the 
enactment of this Act.
    (b) Payment of Costs.--Notwithstanding any other provision of law, 
the salary and other costs associated with employing a service 
coordinator shall be considered an eligible project expense for a 
qualified project which may be fully funded under the expiring 
contract, as provided by the Secretary.

SEC. 162. DELEGATION OF AUTHORITY.

    The Secretary may delegate the authority of the Secretary under 
this subtitle, as the Secretary considers appropriate, to officials of 
States and units of general local government, who may also act as 
contract administrators under applicable law.

SEC. 163. DEFINITIONS.

    For purposes of this subtitle--
            (1) the term ``expiring contract'' means any contract for 
        assistance under section 8 of the United States Housing Act of 
        1937 pursuant to the authority referred to in paragraph (4)(A) 
        of this subsection;
            (2) the term ``fair market rental'' means the fair market 
        rental established pursuant to the authority under--
                    (A) section 8(c)(1) of the United States Housing 
                Act of 1937, as such section existed before the date of 
                the enactment of this Act; or
                    (B) section 8(e) of the United States Housing Act 
                of 1937, as in effect after the date of the enactment 
                of this Act;
            (3) the terms ``low-income family'' and ``very low-income 
        family'' have the meanings given the terms in section 3 of the 
        United States Housing Act of 1937;
            (4) the term ``maximum monthly rents'' means, with respect 
        to a new contract for a qualified project, the maximum monthly 
        rent that the owner is entitled to receive for dwelling units 
        in the project assisted under the new contract;
            (5) the term ``new contract'' means--
                    (A) a contract pursuant to this subtitle to provide 
                project-based assistance for a qualified project; and
                    (B) a contract pursuant to the provisions of 
                subsection (d) or (f)(2)(B) of section 157 or section 
                153(b)(3);
            (6) the term ``owner'' includes the current or subsequent 
        owner or owners of a qualified project;
            (7) the terms ``qualified project'' and ``project'' mean a 
        multifamily housing project that--
                    (A) was constructed or substantially rehabilitated 
                pursuant to assistance provided under section 8(b)(2) 
                of the United States Housing Act of 1937, as such 
                section existed before November 30, 1983; and
                    (B) is assisted under an expiring contract;
            (8) the term ``resident council'' means any democratically 
        operated organization of tenants of a qualified project; and
            (9) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development.

SEC. 164. REGULATIONS.

    The Secretary shall issue any final regulations necessary to carry 
out this subtitle, which shall take effect not later than 6 months 
after the date of the enactment of this Act. The regulations shall be 
issued after notice and opportunity for public comment in accordance 
with the procedure under section 553 of title 5, United States Code, 
applicable to substantive rules (notwithstanding subsections (a)(2), 
(b)(B), and (d)(3) of such section).

SEC. 165. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this subtitle for which 
amounts are not provided under section 5(c) of the United States 
Housing Act of 1937.

                   Subtitle E--Homeownership Programs

SEC. 171. HOPE HOMEOWNERSHIP PROGRAMS.

    (a) Authorization of Appropriations and Technical Assistance.--
            (1) In general.--Section 402 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12870) is amended by 
        striking subsections (a) and (b) and inserting the following 
        new subsection:
    ``(a) Homeownership Programs.--There are authorized to be 
appropriated for grants under this title $100,000,000 for fiscal year 
1995 and $100,000,000 for fiscal year 1996, which shall be available 
for activities authorized under subtitles B and C. Any amounts 
appropriated pursuant to this subsection shall remain available until 
expended.''.
    (b) HOPE II Matching Requirements.--Section 423(c)(1) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12873(c)) 
is amended by striking ``33 percent'' and inserting ``25 percent''.
    (c) Eligibility Under HOPE III of Homes on Leased Land Owned by 
Community Land Trusts.--Section 446(4) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12896(4)) is amended--
            (1) by inserting ``(A)'' before ``owned''; and
            (2) by inserting before the period at the end the 
        following: ``, or (B) located on leased land owned by a 
        community land trust (as such term is defined in section 233 of 
        the HOME Investment Partnerships Act)''.

SEC. 172. NATIONAL HOMEOWNERSHIP FUND.

    Subtitle A of title III of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12701 note) is amended to read as 
follows:

               ``Subtitle A--National Homeownership Fund

``SEC. 301. SHORT TITLE.

    ``This subtitle may be cited as the `National Homeownership Fund 
Act'.

``SEC. 302. AUTHORITY.

    ``The Secretary of Housing and Urban Development may make grants 
under this subtitle to States (including State housing finance 
agencies), local housing finance agencies, and nonprofit housing 
intermediaries to provide assistance, in accordance with the provisions 
of this subtitle, for the acquisition of principal residences for 
first-time homebuyers (including homebuyers buying shares in limited 
equity cooperatives).

``SEC. 303. ELIGIBLE ASSISTANCE.

    ``A grantee may use amounts received under this subtitle only to 
provide assistance to first-time homebuyers in the following manners:
            ``(1) Downpayment assistance.--Assistance payments to 
        provide amounts for the downpayment (including closing costs 
        and other costs payable at the time of closing) on a mortgage 
        for the homebuyer.
            ``(2) Second mortgage assistance.--Assistance payments to 
        provide loans that have such terms for payment of interest and 
        principal as may be determined by the grantee.
            ``(3) Capitalization of revolving loan funds.--To establish 
        revolving loan funds (or to make grants to public organizations 
        or agencies to establish such funds) to provide homeownership 
        assistance to eligible first-time homebuyers in accordance with 
        the provisions of this subtitle. Any grantee under this 
        subtitle (and any subgrantee of such a grantee) shall provide 
        an equal amount of local investment for such revolving loan 
        fund and any proceeds or repayments from loans made under this 
        paragraph shall be returned to the revolving loan fund 
        established under this paragraph to be used for purposes 
        related to this section.
            ``(4) Interest rate buydowns.--Assistance payments so that 
        the rate of interest payable on a mortgage by the homebuyer 
        does not exceed 6 percent.

``SEC. 304. ELIGIBILITY REQUIREMENTS.

    ``(a) Homebuyer.--Assistance may be provided only to homebuyers 
meeting the following requirements:
            ``(1) First-time homebuyer.--The homebuyer is an individual 
        who--
                    ``(A)(i) (and whose spouse) has had no ownership in 
                a principal residence during the 3-year period ending 
                on the date of purchase of the property with respect to 
                which assistance payments are made under this subtitle;
                    ``(ii) is a displaced homemaker who, except for 
                owning a home with his or her spouse or residing in a 
                home owned by the spouse, meets the requirements of 
                clause (i); or
                    ``(iii) is a single parent who, except for owning a 
                home with his or her spouse or residing in a home owned 
                by the spouse while married, meets the requirements of 
                clause (i); and
                    ``(B) meets the requirements of subparagraph 
                (A)(i), (ii), or (iii), except for owning, as a 
                principal residence, a dwelling unit whose structure is 
                not permanently affixed to a permanent foundation in 
                accordance with local or other applicable regulations.
            ``(2) Maximum income of homebuyer.--The aggregate annual 
        income of the homebuyer and the members of the family of the 
        homebuyer residing with the homebuyer, for the 12-month period 
        preceding the date of the application of the homebuyer for 
        assistance under this subtitle, does not exceed 115 percent of 
        the median income for a family of 4 persons (adjusted by family 
        size) in the applicable metropolitan statistical area (or such 
        other area that the Secretary determines for areas outside of 
        metropolitan statistical areas). The Secretary shall provide 
        for certification of such income for purposes of initial 
        eligibility for assistance payments under this subtitle.
    ``(b) Mortgage.--Assistance may be provided only for mortgages 
meeting the following requirements:
            ``(1) Principal residence.--The property subject to the 
        mortgage is a single-family residence or unit in a cooperative 
        (including any manufactured home park owned by residents or 
        owned by nonprofit organizations for future ownership by 
        residents) or condominium, or a single family residence located 
        on leased land owned by a community land trust, and is the 
        principal residence of the homebuyer.
            ``(2) Maximum mortgage amount.--The principal obligation of 
        the first mortgage and any second mortgage assistance provided 
        under this subtitle does not exceed the principal amount that 
        could be insured under section 203(b) of the National Housing 
        Act with respect to a property having the same number of 
        dwelling units.
    ``(c) Minimum Downpayment.--For first-time homebuyers to receive 
downpayment assistance under section 303(a)(1), the homebuyer shall 
have paid not less than 1 percent of the cost of acquisition of the 
property (excluding any mortgage insurance premiums paid at the time 
the mortgage is insured), as such cost is estimated by the Secretary.

``SEC. 305. COUNSELING REQUIREMENTS.

    ``Each grantee under this subtitle shall ensure that each homebuyer 
receiving assistance under this subtitle from the grantee (or any 
subgrantee of such grantee) shall be provided prepurchase and 
postpurchase homeownership counseling from individuals certified by the 
Secretary under section 106(e) of the Housing and Urban Development Act 
of 1968.

``SEC. 306. ALLOCATION OF GRANT AMOUNTS.

    ``(a) In General.--The Secretary may make a grant under this 
subtitle only to a State (including a State housing finance agency), 
local housing finance agency, or nonprofit housing intermediary that 
submits to the Secretary an application under this section that is 
approved by the Secretary. Applications shall be made in such form and 
in accordance with such procedures as the Secretary shall establish.
    ``(b) Minimum Requirements.--An application under this section 
shall contain a plan that describes how the applicant will achieve the 
objectives of this subtitle. The application shall include--
            ``(1) a description of the geographic area, including the 
        revitalization area included, to be covered by the program to 
        provide assistance under this subtitle;
            ``(2) the characteristics of the households to be served by 
        the program;
            ``(3) a description and evidence of the commitment of other 
        public and private resources to be made available in the 
        revitalization area and other areas in which homebuyers receive 
        assistance under this subtitle;
            ``(4) a description of any secondary market and private 
        mortgage insurance involvement and commitment in connection 
        with assistance under this subtitle;
            ``(5) a description of how prepurchase and postpurchase 
        counseling will be provided to homebuyers assisted under this 
        subtitle;
            ``(6) a description of any restrictions on resale and 
        profits;
            ``(7) a description of existing affordable housing programs 
        and resources available to undertake rehabilitation of 
        properties when needed;
            ``(8) a description of the process for award and 
        disbursement of assistance to homebuyers; and
            ``(9) a description of the history of the applicant in 
        undertaking similar projects.
    ``(c) Selection.--The Secretary shall allocate amounts available in 
any fiscal year for assistance under this subtitle to States (including 
State housing finance agencies), local housing finance agencies, or 
nonprofit housing intermediaries for homebuyers through a national 
competition in accordance with criteria established by the Secretary. 
The criteria shall include the extent to which the applicant has 
experience in providing homeownership opportunities for low- and 
moderate-income households.
    ``(d) Targeting for Revitalization Areas.--Each grantee under this 
subtitle shall use not more than 50 percent of any amounts received 
under this subtitle for assistance under section 303(a) for homebuyers 
purchasing residences in revitalization areas using mortgages insured 
under section 203(b) of the National Housing Act.

``SEC. 307. REPORT.

    ``Not later than 18 months after the date of the issuance of final 
regulations pursuant to section 310, the Secretary shall submit to the 
Congress a report stating the amount of loans made in revitalization 
areas and in other areas, the amount of loans insured under the 
National Housing Act made in connection with assistance under this 
section and the amount of privately insured loans made in connection 
with such assistance, and an analysis of the effectiveness of such 
assistance in assisting first-time homebuyers.

``SEC. 308. DEFINITIONS.

    ``For purposes of this subtitle:
            ``(1) Assistance.--The term `assistance' means--
                    ``(A) any downpayment assistance provided under 
                section 303(1);
                    ``(B) any second mortgage loan provided under 
                section 303(2);
                    ``(C) any loan provided from a revolving fund 
                established under section 303(3); and
                    ``(D) any payment for buydown of an interest rate 
                provided under section 303(4).
            ``(2) Community land trust.--The term `community land 
        trust' has the meaning given the term in section 233 of the 
        Cranston-Gonzalez National Affordable Housing Act.
            ``(3) Displaced homemaker.--The term `displaced homemaker' 
        means an individual who--
                    ``(A) is an adult;
                    ``(B) has not worked full-time, full-year in the 
                labor force for a number of years, but has during such 
                years, worked primarily without remuneration to care 
                for the home and family; and
                    ``(C) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or upgrading 
                employment.
            ``(4) Revitalization area.--The term `revitalization area' 
        means--
                    ``(A) an empowerment zone or enterprise community 
                approved under Subchapter U of Chapter 1 of the 
                Internal Revenue Code of 1986, or an equivalent State-
                approved enterprise zone; and
                    ``(B) a neighborhood that, in the determination of 
                the Secretary, is targeted by a unit of general local 
                government for revitalization using coordinated 
                affordable housing programs and enhanced supportive 
                services.
            ``(5) Nonprofit housing intermediary.--The term `nonprofit 
        housing intermediary' means a nonprofit organization that the 
        Secretary determines has among its principal purposes 
        activities described in clauses (1) and (2) of section 802(a) 
        of the Housing and Community Development Act of 1974.
            ``(6) Single parent.--The term `single parent' means an 
        individual who--
                    ``(A) is unmarried or legally separated from a 
                spouse; and
                    ``(B)(i) has 1 or more minor children for whom the 
                individual has custody or joint custody; or
                    ``(ii) is pregnant.
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(8) State.--The term `State' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, and any other 
        territory or possession of the United States.
            ``(9) State housing finance agency.--The term `State 
        housing finance agency' has the meaning given the term in 
        section 802(b) of the Housing and Community Development Act of 
        1974.
            ``(10) Local housing finance agency.--The term `local 
        housing finance agency' means a housing finance agency of any 
        city, county, town, township, parish, village, or other general 
        purpose subdivision of a State, or of any combination of such 
        political subdivisions recognized by the Secretary, or any 
        other agency or instrumentality of such an entity that carries 
        out activities described in section 303.

``SEC. 309. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for assistance under this 
subtitle $115,000,000 for fiscal year 1995 and $215,000,000 for fiscal 
year 1996. Any amount appropriated under this section shall remain 
available until expended.

``SEC. 310. REGULATIONS.

    ``Not later than 10 days after the date of the enactment of the 
Housing and Community Development Act of 1994, the Secretary shall 
issue an interim rule to implement this subtitle. The Secretary shall 
issue final regulations necessary to implement this subtitle not later 
than 90 days after issuance of such interim rule.''.

SEC. 173. SECTION 235 MORTGAGE REFINANCING.

    Section 235(r) of the National Housing Act (12 U.S.C. 1715z(r)) is 
amended--
            (1) in paragraph (2)(C), by inserting after ``refinanced'' 
        the following: ``, plus the costs incurred in connection with 
        the refinancing as described in paragraph (4)(B) to the extent 
        that the amount for those costs is not otherwise included in 
        the interest rate as permitted by subparagraph (E) or paid by 
        the Secretary as authorized by paragraph (4)(B)'';
            (2) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting after ``otherwise)'' the following: ``and the 
                mortgagee (with respect to the amount described in 
                subparagraph (A))''; and
                    (B) in subparagraph (A), by inserting after 
                ``mortgagor'' the following: ``and the mortgagee''; and
            (3) by amending paragraph (5) to read as follows:
    ``(5) The Secretary shall use amounts of budget authority 
recaptured from assistance payments contracts relating to mortgages 
that are being refinanced for assistance payments contracts with 
respect to mortgages insured under this subsection. The Secretary may 
also make such recaptured amounts available for incentives under 
paragraph (4)(A) and the costs incurred in connection with the 
refinancing under paragraph (4)(B). For purposes of subsection 
(c)(3)(A), the amount of recaptured budget authority that the Secretary 
commits for assistance payments contracts relating to mortgages insured 
under this subsection and for amounts paid under paragraph (4) shall 
not be construed as unused.''.

SEC. 174. HOUSING COUNSELING FOR HOMEOWNERSHIP AND RENTAL HOUSING 
              CHOICE.

    (a) Extensions of Programs.--
            (1) Emergency homeownership counseling.--Section 106(c)(9) 
        of the Housing and Urban Development Act of 1968 (12 U.S.C. 
        1701x(c)(9)) is amended by striking ``September 30, 1994'' and 
        inserting ``September 30, 1996''.
            (2) Prepurchase and foreclosure-prevention counseling 
        demonstration.--Section 106(d)(13) of the Housing and Urban 
        Development Act of 1968 (12 U.S.C. 1701x(d)(13)) is amended by 
        striking ``fiscal year 1994'' and inserting ``fiscal year 
        1996''.
    (b) Authorization of Appropriations.--Section 106 of the Housing 
and Urban Development Act of 1968 (12 U.S.C. 1701x) is amended--
            (1) in subsection (a), by striking paragraph (3)
            (2) in subsection (c)--
                    (A) by striking paragraph (8); and
                    (B) by redesignating paragraph (9) (as amended by 
                subsection (a)) as paragraph (8);
            (3) in subsection (d)--
                    (A) by striking paragraph (12); and
                    (B) by redesignating paragraph (13) (as amended by 
                subsection (a)) as paragraph (12);
            (4) in subsection (f), by striking paragraph (7); and
            (5) by adding at the end the following new subsection:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $62,000,000 for fiscal year 1995 
and $65,000,000 for fiscal year 1996, of which amounts $30,000,000 
shall be available in each such fiscal year to carry out subsection 
(c). Any amounts appropriated pursuant to this subsection shall remain 
available until expended.''.
    (c) Outreach.--Section 106(a) of the Housing and Urban Development 
Act of 1968 (12 U.S.C. 1701x(a)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The'' and inserting 
                ``Activities.--The'';
                    (B) in the matter preceding clause (i), by 
                inserting ``or consortia of organizations'' after 
                ``organizations'';
                    (C) in clause (iii), by striking ``and'' at the 
                end;
                    (D) in clause (iv), by striking the period at the 
                end and inserting a semicolon; and
                    (E) by inserting at the end the following new 
                clauses:
            ``(v) the provision of outreach activities designed to 
        improve the access of low- and moderate-income households to 
        homeownership and sources of mortgage credit;
            ``(vi) the provision of counseling to applicants for and 
        recipients of tenant-based assistance to enable such families 
        to move to areas of mixed incomes; and
            ``(vii) counseling and advice to tenants and homeowners 
        regarding understanding financial practices, matters, and 
        transactions commonly engaged in by, or involving, tenants and 
        homeowners, including activities and services provided by banks 
        and other financial institutions, extension of credit, standard 
        lending practices, checking accounts and check cashing, and 
        savings accounts, which shall be made available in such manners 
        and languages appropriate for low-income and disadvantaged 
        families residing in the area in which the entity providing the 
        counseling and advice is located.'';
            (2) in paragraph (2)--
                    (A) by striking ``The'' and inserting ``Eligible 
                Homeowners.--The''; and
                    (B) in the second sentence, by inserting ``or 
                consortia of organizations'' after ``organizations''; 
                and
            (3) by inserting after paragraph (2) the following new 
        paragraphs:
    ``(3) Homeownership counseling.--The Secretary of Housing and Urban 
Development may contract with national, State, or community-based 
entities, and consortia of such entities, and local public or private 
organizations (including public housing agencies), to carry out 
activities under paragraph (1)(v). Contractors shall be selected on a 
competitive basis, in accordance with selection criteria determined by 
the Secretary. The contractors shall carry out activities prescribed by 
the Secretary, including activities such as--
            ``(A) assisting homebuyers by working with mortgage lending 
        entities to make mortgage credit available to low- and 
        moderate-income homebuyers;
            ``(B) leveraging Federal funds with other sources of 
        funding to support activities under its counseling program, 
        including leveraging private, community-based resources for the 
        purpose of assisting prospective mortgagors achieve 
        homeownership;
            ``(C) conducting outreach and marketing to prospective 
        homebuyers, particularly homebuyers in targeted neighborhoods 
        with a high proportion of low- and moderate-income and minority 
        renter households;
            ``(D) coordinating a prepurchase homeownership strategy 
        that includes linking other counseling providers and community-
        based organizations approved by the Secretary, assisting 
        prospective homebuyers to repair credit, educating potential 
        homebuyers on the requirements of homeownership, providing 
        technical assistance, assisting in the packaging of mortgage 
        loan applications, and matching a family's resources with 
        appropriate government and private sector homeownership 
        assistance programs; and
            ``(E) creating post-purchase counseling programs that 
        include default- prevention counseling to assist homebuyers to 
        retain their homes.
    ``(4) Rental counseling.--The Secretary of Housing and Urban 
Development may contract with national, State, or community-based 
entities, and consortia of such entities, and local public or private 
organizations (including public housing agencies), to carry out 
activities under paragraph (1)(vi). Contractors shall be selected on a 
competitive basis, in accordance with selection criteria determined by 
the Secretary. The contractors shall carry out activities prescribed by 
the Secretary, including activities such as--
            ``(A) advising families on strategies for obtaining 
        appropriate housing;
            ``(B) providing transportation assistance and other 
        services to give families access to areas without high 
        concentrations of persons living in poverty;
            ``(C) continuing advice and counseling to assist families 
        after moving to areas without high concentrations of persons 
        living in poverty; and
            ``(D) undertaking aggressive outreach to potential owners 
        to expand the availability of housing in areas without high 
        concentrations of persons living in poverty.
Each entity receiving assistance pursuant to this paragraph shall make 
counseling and assistance under this paragraph available to low-income 
families who are referred to the entity pursuant to section 8(s)(2) of 
the United States Housing Act of 1937, including counseling and 
assistance regarding housing opportunities in the area of jurisdiction 
of the public housing agency involved and assistance in obtaining new 
rental residences in areas within such jurisdiction not having high 
concentrations of persons living in poverty.''.
    (d) Notification.--Section 106(c)(5)(C) of the Housing and Urban 
Development Act of 1968 is amended by adding at the end the following 
new flush sentence:
                ``Except as provided in clauses (i) and (ii), this 
                subparagraph may not be construed to apply to any other 
                loan for which the borrower is a veteran.''.

                       Subtitle F--Other Programs

SEC. 181. COMMUNITY PARTNERSHIPS AGAINST CRIME.

    (a) Short Title, Purposes, and Authority to Make Grants.--Chapter 2 
of subtitle C of title V of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 
11901 et seq.) is amended by striking the chapter heading and all that 
follows through section 5123 and inserting the following:

           ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

``SEC. 5121. SHORT TITLE.

    ``This chapter may be cited as the `Community Partnerships Against 
Crime Act of 1994'.

``SEC. 5122. PURPOSES.

    ``The purposes of this chapter are to--
            ``(1) improve the quality of life for the vast majority of 
        law-abiding public housing residents by reducing the levels of 
        fear, violence, and crime in their communities;
            ``(2) substantially expand and enhance the Federal 
        Government's commitment to eliminating crime in and around 
        public housing and other federally assisted low-income housing;
            ``(3) broaden the scope of the Public and Assisted Housing 
        Drug Elimination Act of 1990 to apply to all types of crime, 
        and not simply crime that is drug-related;
            ``(4) encourage the involvement of a broad range of 
        community-based groups and residents of neighboring housing 
        that is owned or assisted by the Secretary in the development 
        and implementation of anti-crime plans;
            ``(5) reduce crime and disorder in and around public 
        housing through the expansion of community-oriented policing 
        activities and problem solving;
            ``(6) provide training, information services, and other 
        technical assistance to program participants; and
            ``(7) establish a standardized assessment system to 
        evaluate need among public housing agencies and to measure 
        progress in reaching crime reduction goals.

``SEC. 5123. AUTHORITY TO MAKE GRANTS.

    ``The Secretary of Housing and Urban Development may make grants in 
accordance with the provisions of this chapter for use in eliminating 
crime in and around public housing and other federally assisted low-
income housing projects to (1) public housing agencies, and (2) 
private, for-profit and nonprofit owners of federally assisted low-
income housing. In designing the program for grants under this chapter, 
the Secretary shall consult with the Attorney General.''.
    (b) Eligible Activities.--
            (1) In general.--Section 5124(a) of the Anti-Drug Abuse Act 
        of 1988 (42 U.S.C. 11903(a)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``and around'' after ``used in'';
                    (B) in paragraph (3), by inserting before the 
                semicolon the following: ``, including fencing, 
                lighting, locking, and surveillance systems'';
                    (C) in paragraph (4), by striking subparagraph (A) 
                and inserting the following new subparagraph:
                    ``(A) to investigate crime; and'';
                    (D) in paragraph (6)--
                            (i) by striking ``in and around public or 
                        other federally assisted low-income housing 
                        projects''; and
                            (ii) by striking ``and'' after the 
                        semicolon; and
                    (E) by striking paragraph (7) and inserting the 
                following new paragraphs:
            ``(7) providing funding to nonprofit public housing 
        resident management corporations and resident councils to 
        develop security and crime prevention programs involving site 
        residents;
            ``(8) the employment or utilization of one or more 
        individuals, including law enforcement officers, made available 
        by contract or other cooperative arrangement with State or 
        local law enforcement agencies, to engage in community- and 
        problem-oriented policing involving interaction with members of 
        the community in proactive crime control and prevention 
        activities;
            ``(9) programs and activities for or involving youth, 
        including training, education, recreation and sports, career 
        planning, and entrepreneurship and employment activities and 
        after school and cultural programs; and
            ``(10) service programs for residents that address the 
        contributing factors of crime, including programs for job 
        training, education, drug and alcohol treatment, and other 
        appropriate social services.''.
            (2) Other pha-owned housing.--Section 5124(b) of the Anti-
        Drug Abuse Act of 1988 (42 U.S.C. 11903(b)) is amended--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``drug-related crime in'' 
                        and inserting ``crime in and around''; and
                            (ii) by striking ``paragraphs (1) through 
                        (7)'' and inserting ``paragraphs (1) through 
                        (10)''; and
                    (B) in paragraph (2), by striking ``drug-related'' 
                and inserting ``criminal''.
    (c) Grant Procedures.--Section 5125 of the Anti-Drug Abuse Act of 
1988 (42 U.S.C. 11904) is amended to read as follows:

``SEC. 5125. GRANT PROCEDURES.

    ``(a) PHA's With 250 or More Units.--
            ``(1) Grants.--In each fiscal year, the Secretary shall 
        make a grant under this chapter from any amounts available 
        under section 5131(b)(1) for the fiscal year to each of the 
        following public housing agencies:
                    ``(A) New applicants.--Each public housing agency 
                that owns or operates 250 or more public housing 
                dwelling units and has--
                            ``(i) submitted an application to the 
                        Secretary for a grant for such fiscal year, 
                        which includes a 5-year crime deterrence and 
                        reduction plan under paragraph (2); and
                            ``(ii) had such application and plan 
                        approved by the Secretary.
                    ``(B) Renewals.--Each public housing agency that 
                owns or operates 250 or more public housing dwelling 
                units and for which--
                            ``(i) a grant was made under this chapter 
                        for the preceding Federal fiscal year;
                            ``(ii) the term of the 5-year crime 
                        deterrence and reduction plan applicable to 
                        such grant includes the fiscal year for which 
                        the grant under this subsection is to be made; 
                        and
                            ``(iii) the Secretary has determined, 
                        pursuant to a performance review under 
                        paragraph (4), that during the preceding fiscal 
                        year the agency has substantially fulfilled the 
                        requirements under subparagraphs (A) and (B) of 
                        paragraph (4).
            ``(2) 5-year crime deterrence and reduction plan.--Each 
        application for a grant under this subsection shall contain a 
        5-year crime deterrence and reduction plan. The plan shall 
        describe, for the public housing agency submitting the plan--
                    ``(A) the nature of the crime problem in public 
                housing owned or operated by the public housing agency;
                    ``(B) the building or buildings of the public 
                housing agency affected by the crime problem;
                    ``(C) the impact of the crime problem on residents 
                of such building or buildings; and
                    ``(D) the actions to be taken during the term of 
                the plan to reduce and deter such crime, which shall 
                include actions involving residents, law enforcement, 
                and service providers.
        The term of a plan shall be the period consisting of 5 
        consecutive fiscal years, which begins with the first fiscal 
        year for which funding under this chapter is provided to carry 
        out the plan.
            ``(3) Amount.--In any fiscal year, the amount of the grant 
        for a public housing agency receiving a grant pursuant to 
        paragraph (1) shall be the amount that bears the same ratio to 
        the total amount made available under section 5131(b)(1) as the 
        total number of public dwelling units owned or operated by such 
        agency bears to the total number of dwelling units owned or 
        operated by all public housing agencies that own or operate 250 
        or more public housing dwelling units that are approved for 
        such fiscal year.
            ``(4) Performance review.--For each fiscal year, the 
        Secretary shall conduct a performance review of the activities 
        carried out by each public housing agency receiving a grant 
        pursuant to this subsection to determine whether the agency--
                    ``(A) has carried out such activities in a timely 
                manner and in accordance with its 5-year crime 
                deterrence and reduction plan; and
                    ``(B) has a continuing capacity to carry out such 
                plan in a timely manner.
            ``(5) Submission of applications.--The Secretary shall 
        establish such deadlines and requirements for submission of 
        applications under this subsection as the Secretary determines 
        appropriate for timely and orderly allocation and disbursement 
        of amounts made available for grants under this subsection.
            ``(6) Review and determination.--The Secretary shall review 
        each application submitted under this subsection upon 
        submission and shall approve the application unless the 
        application and the 5-year crime deterrence and reduction plan 
        are inconsistent with the purposes of this chapter or any 
        requirements established by the Secretary or the information in 
        the application or plan is not substantially complete. Upon 
        approving or determining not to approve an application and plan 
        submitted under this subsection, the Secretary shall notify the 
        public housing agency submitting the application and plan of 
        such approval or disapproval.
            ``(7) Disapproval of applications.--If the Secretary 
        notifies an agency that the application and plan of the agency 
        is not approved, not later than the expiration of the 15-day 
        period beginning upon such notice of disapproval, the Secretary 
        shall also notify the agency, in writing, of the reasons for 
        the disapproval, the actions that the agency could take to 
        comply with the criteria for approval, and the deadlines for 
        such actions.
            ``(8) Failure to approve or disapprove.--If the Secretary 
        fails to notify an agency of approval or disapproval of an 
        application and plan submitted under this subsection before the 
        expiration of the 60-day period beginning upon the submission 
        of the plan or fails to provide notice under paragraph (7) 
        within the 15-day period under such paragraph to an agency 
        whose application has been disapproved, the application and 
        plan shall be considered to have been approved for purposes of 
        this section.
    ``(b) PHA's With Fewer Than 250 Units and Owners of Federally 
Assisted Low-Income Housing.--
            ``(1) Applications and plans.--To be eligible to receive a 
        grant under this chapter, a public housing agency that owns or 
        operates fewer than 250 public housing dwelling units or an 
        owner of federally assisted low-income housing shall submit an 
        application to the Secretary at such time, in such manner, and 
        accompanied by such additional information as the Secretary may 
        require. The application shall include a plan for addressing 
        the problem of crime in and around the housing for which the 
        application is submitted, describing in detail activities to be 
        conducted during the fiscal year for which the grant is 
        requested.
            ``(2) Grants for pha's with fewer than 250 units.--In each 
        fiscal year the Secretary may, to the extent amounts are 
        available under section 5131(b)(2), make grants under this 
        chapter to public housing agencies that own or operate fewer 
        than 250 public housing dwelling units and have submitted 
        applications under paragraph (1) that the Secretary has 
        approved pursuant to the criteria under paragraph (4).
            ``(3) Grants for federally assisted low-income housing.--In 
        each fiscal year the Secretary may, to the extent amounts are 
        available under section 5131(b)(3), make grants under this 
        chapter to owners of federally assisted low-income housing that 
        have submitted applications under paragraph (1) that the 
        Secretary has approved pursuant to the criteria under 
        paragraphs (4) and (5).
            ``(4) Criteria for approval of applications.--The Secretary 
        shall determine whether to approve each application under this 
        subsection on the basis of--
                    ``(A) the extent of the crime problem in and around 
                the housing for which the application is made;
                    ``(B) the quality of the plan to address the crime 
                problem in the housing for which the application is 
                made;
                    ``(C) the capability of the applicant to carry out 
                the plan; and
                    ``(D) the extent to which the tenants of the 
                housing, the local government, local community-based 
                nonprofit organizations, local tenant organizations 
                representing residents of neighboring projects that are 
                owned or assisted by the Secretary, and the local 
                community support and participate in the design and 
                implementation of the activities proposed to be funded 
                under the application.
        In each fiscal year, the Secretary may give preference to 
        applications under this subsection for housing made by 
        applicants who received a grant for such housing for the 
        preceding fiscal year under this subsection or under the 
        provisions of this chapter as in effect immediately before the 
        date of the enactment of the Housing and Community Development 
        Act of 1994.
            ``(5) Additional criteria for federally assisted low-income 
        housing.--In addition to the selection criteria under paragraph 
        (4), the Secretary may establish other criteria for evaluating 
        applications submitted by owners of federally assisted low-
        income housing, except that such additional criteria shall be 
        designed only to reflect--
                    ``(A) relevant differences between the financial 
                resources and other characteristics of public housing 
                authorities and owners of federally assisted low-income 
                housing; or
                    ``(B) relevant differences between the problem of 
                crime in public housing administered by such public 
                housing agencies and the problem of crime in federally 
                assisted low-income housing.''.
    (d) Definitions.--Section 5126 of the Anti-Drug Abuse Act of 1988 
(42 U.S.C. 11905) is amended--
            (1) by striking paragraphs (1) and (2);
            (2) in paragraph (4), by striking ``section'' before 
        ``221(d)(4)'';
            (3) by redesignating paragraphs (3) and (4) (as so amended) 
        as paragraphs (1) and (2), respectively; and
            (4) by adding at the end the following new paragraph:
            ``(3) Public housing agency.--The term `public housing 
        agency' has the meaning given the term in section 3(b) of the 
        United States Housing Act of 1937.''.
    (e) Implementation.--Section 5127 of the Anti-Drug Abuse Act of 
1988 (42 U.S.C. 11906) is amended by striking ``Cranston-Gonzalez 
National Affordable Housing Act'' and inserting ``Housing and Community 
Development Act of 1994''.
    (f) Reports.--Section 5128 of the Anti-Drug Abuse Act of 1988 (42 
U.S.C. 11907) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
    ``(a) Reports by Grantees.--The Secretary'';
            (2) by striking ``drug-related crime in'' and inserting 
        ``crime in and around'';
            (3) by striking ``described in section 5125(a)'' and 
        inserting ``for the grantee submitted under subsection (a) or 
        (b) of section 5125, as applicable''; and
            (4) by adding at the end the following new subsection:
    ``(b) Reports by Secretary.--For each fiscal year in which the 
Secretary makes grants under this chapter, the Secretary shall submit a 
report to the Congress describing the progress achieved in crime 
deterrence and reduction in the public housing and federally assisted 
low-income housing for which such grant assistance has been provided. 
The report shall include any recommendations of the Secretary for 
changes in the program of assistance under this chapter.''.
    (g) Technical Assistance and Funding.--Chapter 2 of subtitle C of 
title V of the Anti-Drug Abuse Act of 1988 is amended by striking 
section 5130 (42 U.S.C. 11909) and inserting the following new 
sections:

``SEC. 5130. TECHNICAL ASSISTANCE.

    ``(a) In General.--To the extent amounts are made available under 
section 5131(c), the Secretary may provide training, information 
services, and other technical assistance to public housing agencies and 
other entities with respect to their participation in the program under 
this chapter, which shall include activities under subsection (b) of 
this section. Such technical assistance may be provided directly by the 
Secretary or indirectly pursuant to grants, contracts, or cooperative 
agreements.
    ``(b) Use.--The Secretary may use amounts available for use under 
this section--
            ``(1) to establish and operate the clearinghouse on drug 
        abuse in public housing and the regional training program on 
        drug abuse in public housing under sections 5143 and 5144 of 
        this Act;
            ``(2) to obtain assistance in establishing and managing 
        assessment and evaluation criteria and specifications and to 
        obtain the opinions of experts in relevant fields; and
            ``(3) upon the request of a public housing agency, to 
        assist the agency in evaluating the extent of the crime problem 
        in any public housing administered by the agency and preparing 
        a 5-year crime deterrence and reduction plan under section 
        5125(a) or an application and plan under section 5125(b)(1), 
        which assistance may include providing personnel and funding to 
        identify and secure local resources to assist in deterring and 
        reducing crime.
    ``(c) Priority.--In selecting entities to receive technical 
assistance under this section, the Secretary shall give priority to 
public housing agencies that have submitted applications and plans 
under section 5125 that the Secretary has determined do not meet the 
requirements for approval for assistance under this chapter.

``SEC. 5131. FUNDING.

    ``(a) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this chapter $300,000,000 for fiscal year 
1995 and $325,000,000 for fiscal year 1996. Any amount appropriated 
under this subsection shall remain available until expended.
    ``(b) Allocation.--Of any amounts appropriated to carry out this 
chapter in any fiscal year that remain after reserving amounts for use 
under subsection (c)--
            ``(1) 85 percent shall be available only for assistance 
        pursuant to section 5125(a) to public housing agencies that own 
        or operate 250 or more public housing dwelling units;
            ``(2) 10 percent shall be available only for assistance 
        pursuant to section 5125(b)(2) to public housing agencies that 
        own or operate fewer than 250 public housing dwelling units; 
        and
            ``(3) 5 percent shall be available only for assistance to 
        federally assisted low-income housing pursuant to section 
        5125(b)(3).
    ``(c) Set-Aside for Technical Assistance.--Of any amount made 
available in fiscal years 1994 and 1995 to carry out this chapter, the 
Secretary shall use not more than $10,000,000 in each such fiscal year 
to provide technical assistance under section 5130.''.
    (h) Conforming Amendments.--The table of contents in section 5001 
of the Anti-Drug Abuse Act of 1988 (Public Law 100-690; 102 Stat. 4295) 
is amended--
            (1) by striking the item relating to the heading for 
        chapter 2 of subtitle C and inserting the following:

          ``Chapter 2--Community Partnerships Against Crime'';

            (2) by striking the item relating to section 5122 and 
        inserting the following new item:

``Sec. 5122. Purposes.'';
            (3) by striking the item relating to section 5125 and 
        inserting the following new item:

``Sec. 5125. Grant procedures.'';
        and
            (4) by striking the item relating to section 5130 and 
        inserting the following new items:

``Sec. 5130. Technical Assistance.
``Sec. 5131. Funding.''.

SEC. 182. LOW-INCOME HOUSING PRESERVATION.

    (a) Assistance and Incentives.--Section 234 of the Housing and 
Community Development Act of 1987 (12 U.S.C. 4124) is amended to read 
as follows:

``SEC. 234. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated for 
assistance and incentives authorized under this subtitle $400,000,000 
for fiscal year 1995 and $450,000,000 for fiscal year 1996.
    ``(b) Grants.--Subject to approval in appropriation Acts, not more 
than $40,000,000 of the amounts made available under subsection (a) for 
fiscal year 1995, and not more than $40,000,000 of the amounts made 
available under subsection (a) for fiscal year 1996, shall be available 
for grants under section 221(d)(2).''.
    (b) Technical Assistance and Capacity Building.--The first sentence 
of section 257 of the Housing and Community Development Act of 1987 (12 
U.S.C. 4147) is amended to read as follows: ``The Secretary shall use 
not more than $20,000,000 of the amounts made available under section 
234(a) for fiscal year 1995, and not more than $20,000,000 of the 
amounts made available under section 234(a) for fiscal year 1996, to 
carry out this subtitle.''.
    (c) Repeal of Rent Limitations.--The National Housing Act is 
amended--
            (1) in section 221 (12 U.S.C. 1715l), by striking 
        subsection (l).
            (2) in section 236(f) (12 U.S.C. 1715z-1(f)), by striking 
        paragraph (6).
    (d) Equity Loans.--Section 241(f)(2)(B)(ii) of the National Housing 
Act (12 U.S.C. 1715z-6(f)(2)(B)(ii)) is amended by inserting 
``(excluding the amount of rehabilitation costs required by the plan of 
action and related charges)'' after ``loan amount''.
    (e) Treatment as Eligible Housing.--Notwithstanding section 
229(1)(B) of the Housing and Community Development Act of 1987, the 
Northwest Towers project, located at 1170 West Erie, in Chicago, 
Illinois, shall be considered eligible low-income housing for purposes 
of title II of such Act, except that--
            (1) the Secretary of Housing and Urban Development may 
        approve a plan of action under such title for the project only 
        if the plan of action (A) provides for transfer of the 
        ownership of the project (i) in accordance with section 226 of 
        such title to a resident council of the project, or (ii) in 
        accordance with section 220 of such title to a community-based 
        nonprofit organization approved by the residents of the 
        project, and (B) otherwise complies with the requirements of 
        such title; and
            (2) the Secretary of Housing and Urban Development shall 
        reduce the aggregate amount of any incentives otherwise to be 
        provided under such title for the project by the amount of any 
        outstanding indebtedness on the loan for the project under 
        section 201 of the Housing and Community Development Amendments 
        of 1978.

SEC. 183. FLEXIBLE SUBSIDY PROGRAM.

    (a) Authorization of Appropriations.--Section 201(j)(5) of the 
Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z-
1a(j)(5)) is amended to read as follows:
    ``(5) There are authorized to be appropriated for assistance under 
the flexible subsidy fund not to exceed $50,000,000 for fiscal year 
1995 and $55,000,000 for fiscal year 1996.''.
    (b) Allocation.--Section 201(n)(2)(B)(ii) of the Housing and 
Community Development Amendments of 1978 (12 U.S.C. 1715z-
1a(n)(2)(B)(ii)) is amended by inserting ``and federally assisted'' 
before ``mortgages''.
    (c) Use of Section 236 Rental Assistance Fund Amounts.--Section 
236(f)(3) of the National Housing Act (12 U.S.C. 1715z-1(f)(3)) is 
amended by striking ``September 30, 1994'' and inserting ``September 
30, 1996''.

SEC. 184. YOUTHBUILD PROGRAM.

    (a) Authorization of Appropriations.--Section 402 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12870), as amended 
by the preceding provisions of this title, is amended by inserting 
after subsection (a) the following new subsection:
    ``(b) Youthbuild Program.--There are authorized to be appropriated 
for activities under subtitle D $50,000,000 for fiscal year 1995 and 
$50,000,000 for fiscal year 1996. Any amounts appropriated pursuant to 
this subsection shall remain available until expended.''.
    (b) Eligible Activities.--Section 454(b) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12899c(b)) is amended--
            (1) in paragraph (2), by striking ``Acquisition'' and all 
        that follows through ``facilities'' and inserting 
        ``Acquisition, rehabilitation, or acquisition and 
        rehabilitation of housing and related facilities, or 
        construction of new housing and related facilities (including 
        community facilities designed to serve the needs of low- and 
        very low-income families),'';
            (2) by striking paragraph (6); and
            (3) by redesignating paragraphs (7) and (8) as paragraphs 
        (6) and (7), respectively.
    (c) Priority for Applicants Supplementing Grant Amounts.--Section 
454(e) of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12899c(e)) is amended to read as follows:
    ``(e) Priority for Applicants Who Obtain Program Funds From Other 
Sources.--The Secretary shall give priority in the award of grants 
under this section to applicants to the extent that they have obtained 
amounts or in-kind contributions, or commitments to provide such 
amounts or contributions, from Federal, State, local, or private 
sources other than assistance under this subtitle in an amount 
constituting not less than 10 percent of the total budget of the 
applicant for the Youthbuild program, that will be used for carrying 
out any aspect of the Youthbuild program of the applicant.''.
    (d) Residential Rental Housing Requirements.--Section 455(a) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899d(a)) 
is amended--
            (1) in the matter preceding paragraph (1), by inserting 
        after ``subtitle'' the following: ``for costs such as 
        construction, rehabilitation, and acquisition''; and
            (2) in paragraph (1), by striking subparagraph (A) and 
        inserting the following new subparagraph:
                    ``(A) at least 80 percent of the units shall be 
                occupied, or available for occupancy, by individuals 
                and families with incomes that do not exceed 50 percent 
                of the area median income, adjusted for family size; 
                and''.
    (e) Reservation of Funds.--Section 458(d) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12899g(d)) is amended by 
inserting before the period at the end the following: ``and not more 
than 1 percent of such available amounts to implement, pursuant to 
subsection (a) of this section, a management information system to 
gather and analyze information necessary to assess the quality and 
effects of the program under this subtitle and to monitor Youthbuild 
programs funded under this subtitle''.
    (f) Program Name.--The heading for subtitle D of title IV of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et 
seq.) is amended to read as follows:

                      ``Subtitle D--Youthbuild''.

SEC. 185. DISPOSITION OF HUD-OWNED MULTIFAMILY HOUSING PROPERTIES.

    Section 203(g) of the Housing and Community Development Amendments 
of 1978 (12 U.S.C. 1701z-11(g)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and'';
            (3) by redesignating paragraphs (2) and (3) (as so amended) 
        as paragraphs (3) and (4), respectively; and
            (4) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) upon the conclusion of the first year of such 2-year 
        period, the Secretary shall examine the income and rent of the 
        family and of other very low-income families who are 
        preexisting tenants of the project and the rents charged for 
        units in the project and for similar units in the market area 
        in which the project is located, to determine whether upon the 
        expiration of such 2-year period the rent charged for the unit 
        occupied by the family and for similar units in the same market 
        area will be significantly more than the amount charged for the 
        unit occupied by the family during such 2-year period;''; and
            (5) by adding at the end the following new paragraph:
            ``(5) if the Secretary determines pursuant to paragraph (2) 
        that, upon the expiration of the 2-year period, the family will 
        not be able to rent a unit in the project or a similar unit in 
        the market area in which the project is located without paying 
        in rent significantly more than the amount charged for the unit 
        occupied by the family during such 2-year period, the Secretary 
        shall, to the extent budget authority is available, provide 
        tenant-based assistance on behalf of the family under a 
        contract under section 8 of the United States Housing Act of 
        1937 having a 5-year term.''.

SEC. 186. GUIDELINES FOR SCREENING, ADMISSION, AND EVICTIONS IN PUBLIC 
              AND ASSISTED HOUSING.

    Not later than December 31, 1994, the Secretary of Housing and 
Urban Development shall issue guidelines for owners and managers of 
public and assisted housing with respect to screening applicants for 
occupancy in such housing, admissions to such housing, and evictions of 
residents of such housing who are users or former users of illegal 
drugs or who violate lease provisions because of alcohol use. The 
Secretary shall issue such guidelines based on the report to the 
Congress issued by the Public and Assisted Housing Occupancy Task Force 
on April 7, 1994, pursuant to section 643(a)(7) of the Housing and 
Community Development Act of 1992.

SEC. 187. METROPOLITAN AREA-WIDE STRATEGY DEMONSTRATION.

    (a) In General.--The Secretary of Housing and Urban Development (in 
this section referred to as the ``Secretary'') shall carry out, through 
consortia of units of general local government, a demonstration program 
to make assisted housing available in 3 metropolitan areas on a 
metropolitan, area-wide basis.
    (b) Purpose.--The demonstration program under this section shall be 
designed to determine the most effective manner to--
            (1) affirmatively further fair housing and address the 
        problem of racial segregation in metropolitan areas;
            (2) achieve the goal of overcoming spatial separation and 
        segregation of families by race, which shall include testing 
        the effect of filling vacancies in assisted housing by use of a 
        consolidated waiting list;
            (3) enlist cooperation of units of general local 
        government, public housing agencies, and private owners of 
        assisted housing in achieving such goals;
            (4) make public housing facilitate social and economic 
        mobility;
            (5) eliminate housing discrimination; and
            (6) accomplish related objectives determined by the 
        Secretary.
    (c) Eligibility of Consortia.--The Secretary shall select the 
consortia of units of general local government to participate in the 
demonstration program on a competitive basis and make a grant to each 
consortia selected. The Secretary may select only consortia that 
demonstrate to the Secretary, as the Secretary shall require, that a 
sufficient number of units of general local government, public housing 
agencies, and private owners of assisted housing are committed to 
participate in the demonstration to make the demonstration feasible, 
which shall include commitment to comply with alternative program 
requirements specified by the Secretary.
    (d) Duration.--The demonstration program shall be carried out for a 
period of 3 years with respect to each site selected.
    (e) Waivers.--The Secretary may waive, or specify alternative 
requirements for, any provision of any statute or regulation that the 
Secretary administers if the Secretary finds that the waiver or 
alternative requirement (1) is necessary to facilitate the 
demonstration program, and (2) would not be inconsistent with the 
overall purpose of the statute or regulation affected. In no event may 
the Secretary waive, or specify alternative requirements for, statutory 
requirements related to nondiscrimination, fair housing, labor 
standards, or the environment, except that the Secretary may waive 
affirmative marketing requirements for participants in the 
demonstration program.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated for the costs related to regional planning, housing 
counseling, development of a model consolidated waiting list, and 
administration under the demonstration established by this section, 
such sums as may be necessary for each of fiscal years 1995 and 1996.

                 TITLE II--HOME INVESTMENT PARTNERSHIPS

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 205 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12724) is amended to read as follows:

``SEC. 205. AUTHORIZATION.

    ``There are authorized to be appropriated to carry out this title 
$1,775,000,000 for fiscal year 1995, and $2,000,000,000 for fiscal year 
1996, of which--
            ``(1) not more than $25,000,000 for fiscal year 1995, and 
        $25,000,000 for fiscal year 1996, shall be for community 
        housing partnership activities authorized under section 233; 
        and
            ``(2) not more than $22,000,000 for fiscal year 1995, and 
        $22,000,000 for fiscal year 1996, shall be for activities in 
        support of State and local housing strategies authorized under 
        subtitle C.''.
    (b) Notice of Funding Availability.--For each of fiscal years 1995 
and 1996, the Secretary shall cause to be published in the Federal 
Register notice of the availability of any amounts made available under 
section 205(1) of the Cranston-Gonzalez National Affordable Housing Act 
(as amended by subsection (a)) that are available for community housing 
partnership activities authorized under section 233. Each such notice 
shall be published not later than the expiration of the 90-day period 
beginning on the date that amounts are appropriated for each of such 
fiscal years to carry out the program under title II of the Cranston-
Gonzalez National Affordable Housing Act.

SEC. 202. ELIGIBLE USES OF INVESTMENT.

    Section 212(a)(1) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12742(a)(1)) is amended by striking ``financing 
costs'' and inserting ``costs of financing (including credit 
enhancements, loan guarantees, and debt service reserves)''.

SEC. 203. QUALIFICATION AS AFFORDABLE RENTAL HOUSING.

    Section 215(a) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12742(a)) is amended--
            (1) in paragraph (1)(A), by striking ``bears rents not 
        greater than'' and inserting ``is occupied by tenants who pay 
        as rent'';
            (2) in paragraph (3), by inserting after the period at the 
        end of the first sentence the following new sentence: ``A 
        tenant occupying a rental unit assisted with amounts provided 
        under this title shall be considered to be a very low-income 
        family until the household's income increases to more than 140 
        percent of the applicable income limitation under paragraph 
        (1)(B).''; and
            (3) by adding at the end the following new paragraph:
            ``(6) Rental subsidies.--Notwithstanding paragraph (1), 
        housing shall not be considered to fail to qualify as 
        affordable housing under this title because it includes units 
        for which--
                    ``(A) payments are made under section 8 of the 
                United States Housing Act of 1937 or any comparable 
                rental assistance program; and
                    ``(B) because of increases in the income of tenants 
                of the housing, the rent paid by the tenants under the 
                assistance program with respect to such unit exceeds 30 
                percent of the adjusted income of a family whose income 
                equals 65 percent of the median income for the area.''.

SEC. 204. REPAYMENT OF INVESTMENT.

    Section 219 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12749) is amended by adding at the end the following new 
subsection:
    ``(d) Repayment of Matching Amounts.--Amounts provided by a 
participating jurisdiction pursuant to section 220 for housing not 
assisted under this title shall be recognized for purposes of section 
220(a), notwithstanding that such amounts are not repaid to the 
jurisdiction's HOME Investment Trust Fund, if such amounts are drawn 
from an affordable housing program operated by the jurisdiction, repaid 
to the program, and available for use only for the program or for 
providing housing that qualifies as affordable housing.''.

SEC. 205. MATCHING REQUIREMENTS.

    Section 220 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12750) is amended--
            (1) in the first sentence of subsection (a), by inserting 
        ``the participating jurisdiction certifies'' before 
        ``qualifies''; and
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``or'';
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) is made with respect to housing that is 
                substantially equivalent to housing that qualifies as 
                affordable housing under section 215.''.

SEC. 206. SUPPORT FOR STATE AND LOCAL HOUSING STRATEGIES.

    Subtitle C of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12781 et seq.) is amended by adding at the end 
the following new section:

``SEC. 246. STRATEGIC PLANNING AND URBAN DESIGN.

    ``The Secretary may use amounts available under this subtitle to 
provide grants to States, units of general local government, and 
metropolitan, non-metropolitan, and regional planning agencies, for the 
following activities:
            ``(1) Urban design and the development of public amenities 
        in low-income neighborhoods that serve as a catalyst for the 
        renewal of the neighborhood.
            ``(2) Development and implementation of comprehensive plans 
        that focus on local and metropolitan strategies which create 
        sustainable community development at the neighborhood, city, 
        and metropolitan level.
            ``(3) Expanding economic opportunities for low- and 
        moderate-income families through areawide planning approaches 
        that provide educational and employment opportunities for such 
        persons.
            ``(4) Coordinated efforts that stimulate fair housing, 
        further the deconcentration of the poor and minorities, reduce 
        the isolation of income groups within communities, remove 
        barriers to affordable housing development, and expand housing 
        opportunities for low- and moderate-income families.
            ``(5) The conservation of important historic, visual, and 
        cultural features.
            ``(6) The development and implementation of comprehensive 
        approaches that integrate poorer, inner-city neighborhoods into 
        the greater metropolitan region.
            ``(7) Any other activities the Secretary determines will 
        further the purposes of this section.''.

SEC. 207. LABOR REQUIREMENTS.

    Section 286(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12836(b)) is amended by adding at the end the following 
new sentence: ``Subsection (a) shall not apply in the case of housing 
for which a site is acquired, but which is not constructed, using funds 
made available under this subtitle.''.

                 TITLE III--SUPPORTIVE HOUSING PROGRAMS

SEC. 301. FUNDING FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND FOR 
              PERSONS WITH DISABILITIES.

    Section 601 of the Housing and Community Development Act of 1992 
(Public Law 102-550; 106 Stat. 3802) is amended by striking subsection 
(a) and inserting the following new subsection:
    ``(a) Aggregate Funding.--There are authorized to be appropriated 
for the purpose of providing assistance in accordance with section 202 
of the Housing Act of 1959 and section 811 of the Cranston-Gonzalez 
National Affordable Housing Act, $1,948,000,000 for fiscal year 1995 
and $1,954,000,000 for fiscal year 1996.''.

SEC. 302. SUPPORTIVE HOUSING FOR THE ELDERLY.

    (a) Elder Cottage Housing Units.--Section 202(b) of the Housing Act 
of 1959 (12 U.S.C. 1701q(b)) is amended by inserting after the second 
sentence the following new sentence: ``Such assistance may also be used 
to finance the acquisition and installation of elder cottage housing 
units that are small, freestanding, barrier-free, energy efficient, 
removable and designed to be installed adjacent to existing 1- to 4-
family dwellings and are used as supportive housing for the elderly in 
accordance with this section.''.
    (b) Definition of ``Frail Elderly''.--Section 202(k)(3) of the 
Housing Act of 1959 (12 U.S.C. 1701q(k)(3)) is amended by striking the 
first sentence and inserting the following new sentences: ``The term 
`frail elderly' means an elderly person whose level of functional 
disability jeopardizes her or his ability to continue to live 
independently. The Secretary shall, to the extent possible, develop 
assessment measures of functional disability that are appropriate for 
purposes of this section and will provide for effective use of the 
program under this section with other programs providing supportive 
services.''.
    (c) Repeal of Demonstration.--Section 806 of the Cranston-Gonzalez 
National Affordable Housing Act (12 U.S.C. 1701q note) is hereby 
repealed.

SEC. 303. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.

    (a) PHA's as Eligible Sponsors.--Section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended--
            (1) in the first sentence of subsection (f), by inserting 
        ``and public housing agencies'' after ``private nonprofit 
        organizations''; and
            (2) in subsection (k)--
                    (A) in paragraph (5), by striking ``private 
                nonprofit organization'' and inserting ``eligible 
                sponsor''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(10) The term `eligible sponsor' means--
                    ``(A) in the case of capital advances under 
                subsection (b)(2) and project rental assistance under 
                subsections (b)(2) and (3)--
                            ``(i) a private nonprofit organization; and
                            ``(ii) a public housing agency, but only in 
                        the case of a jurisdiction for which the 
                        Secretary determines that, during the 3-year 
                        period ending upon the date of the application 
                        of the agency for assistance under subsection 
                        (b)(2) or (3)--
                                    ``(I) no private nonprofit 
                                organization has submitted an 
                                application under subsection (f) for 
                                assistance for a project located in 
                                such area; and
                                    ``(II) no private nonprofit 
                                organization has had such an 
                                application approved for a project 
                                located in such area; and
                    ``(B) in the case of tenant-based rental assistance 
                under subsection (b)(1)--
                            ``(i) a private nonprofit organization; and
                            ``(ii) a public housing agency, but only to 
                        the extent that such assistance is used for 
                        providing assistance in accordance with an 
                        allocation plan for the agency under section 
                        7(f) of the United States Housing Act of 
                        1937.''.
    (b) Rental Assistance for Existing Buildings.--Section 811 of the 
Cranston-Gonzalez National Affordable Housing Act is amended--
            (1) in subsection (d)(2), by adding at the end the 
        following new sentence: ``The Secretary may enter into 
        contracts with private, nonprofit organizations to provide 
        project rental assistance for supportive housing for persons 
        with disabilities, regardless of whether the housing is 
        developed with capital advances under this section.'';
            (2) in subsection (e)(1), by inserting ``with capital 
        advances'' after ``assisted'';
            (3) by striking the first 2 sentences of subsection (e)(2) 
        and inserting the following new sentences: ``The initial term 
        of a contract entered into under subsection (d)(2) shall be 240 
        months for housing developed with a capital advance, and shall 
        be not more than 60 months for housing not developed with a 
        capital advance. The Secretary shall, to the extent approved in 
        appropriation Acts, extend any expiring contracts for a term of 
        not less than 60 months.'';
            (4) in subsection (g)(1), by inserting ``(if applicable)'' 
        after ``develop'';
            (5) in subsections (g)(3) and (g)(5), by inserting ``design 
        or'' before ``proposed'' each place it appears;
            (6) in subsection (j), by striking paragraph (3) and 
        inserting the following new paragraph:
            ``(3) Site control.--
                    ``(A) Capital advances.--In the case of housing to 
                be assisted with capital advances under this section, 
                an applicant may obtain ownership or control of a 
                suitable site different from the site specified in the 
                initial application. If an applicant fails to obtain 
                ownership or control of the site within 1 year after 
                notification of an award for assistance, the assistance 
                shall be recaptured and reallocated.
                    ``(B) Project rental assistance.--In the case of 
                housing to be assisted only with project rental 
                assistance, the applicant shall have ownership or 
                control of a suitable site at the time of application. 
                The Secretary may approve a change in site at any time 
                from the date the application is submitted to the 
                expiration date of the rental assistance contract.'';
            (7) in subsection (j)(4), by striking ``The'' and inserting 
        the following: ``In the case of housing assisted with capital 
        advances under this section, the'';
            (8) in the second sentence of subsection (k)(1), by 
        striking ``the development of'';
            (9) in subsection (k)(5), by inserting before the period at 
        the end the following: ``, or that receives rental assistance 
        under this section to operate a project for supportive housing 
        for persons with disabilities''; and
            (10) in subsection (m)(3), by striking ``(1)'' and 
        inserting ``(2)''.
    (c) Authority to Provide Assistance.--Section 811 of the Cranston-
Gonzalez National Affordable Housing Act is amended--
            (1) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) General Authority.--The Secretary may provide assistance to 
eligible sponsors to expand the supply of supportive housing for 
persons with disabilities. Such assistance shall be provided as--
            ``(1) tenant-based rental assistance on behalf of eligible 
        persons with disabilities, in accordance with subsection 
        (d)(4);
            ``(2) capital advances in accordance with subsection 
        (d)(1), together with contracts for project rental assistance 
        in accordance with subsection (d)(2); or
            ``(3) contracts for project rental assistance in accordance 
        with subsection (d)(2).'';
            (2) in subsection (d)(1), by adding at the end the 
        following new sentences: ``Capital advances may be used to 
        finance the acquisition, acquisition and moderate 
        rehabilitation, construction, reconstruction, or moderate or 
        substantial rehabilitation of housing, including the 
        acquisition from the Resolution Trust Corporation, to be used 
        as supportive housing for persons with disabilities and may 
        include real property acquisition, site improvement, 
        conversion, demolition, relocation, and other expenses that the 
        Secretary determines are necessary to expand the supply of 
        supportive housing for persons with disabilities. Such 
        assistance may also be used to finance the acquisition and 
        installation of cottage housing units that are small, 
        freestanding, barrier-free, energy efficient, removable and 
        designed to be installed adjacent to existing 1- to 4-family 
        dwellings and are used as supportive housing for the persons 
        with disabilities in accordance with this section.'';
            (3) in subsections (d)(3), (e)(1), and (f), by inserting 
        ``or (3)'' after ``subsection (b)(2)'' each place it appears; 
        and
            (4) by striking paragraph (4) of subsection (d) and 
        inserting the following new paragraph:
            ``(4) Tenant-based rental assistance.--
                    ``(A) Administration.--Tenant-based rental 
                assistance that is provided under subsection (b)(1) 
                shall be administered under the same rules governing 
                rental assistance made available under section 8 of the 
                United States Housing Act of 1937.
                    ``(B) Public housing agencies.--A public housing 
                agency may provide tenant-based rental assistance under 
                subsection (b)(1) only if the public housing agency has 
                submitted, and had approved, an allocation plan under 
                section 7(f) of the United States Housing Act of 1937 
                and any such assistance made available to a public 
                housing agency shall be provided by the agency in 
                accordance with such allocation plan. In determining 
                the amount of assistance provided under subsection 
                (b)(1) for a public housing agency, the Secretary shall 
                consider the needs of the agency as described in the 
                allocation plan.''.
    (d) Technical Changes.--Section 811(k)(6) of the Cranston-Gonzalez 
National Affordable Housing Act is amended by striking subparagraph (A) 
and inserting the following new subparagraph:
                    ``(A) that has received tax-exempt status under 
                section 501(c)(3) or (4) of the Internal Revenue Code 
                of 1986;''.

SEC. 304. REVISED CONGREGATE SERVICES.

    (a) Authorization of Appropriations.--Section 802(n)(1) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
8011(n)(1)) is amended by striking the matter preceding subparagraph 
(A) and inserting the following:
            ``(1) Authorization and use.--There are authorized to be 
        appropriated to carry out this section $25,000,000 for fiscal 
        year 1995, and $26,000,000 for fiscal year 1996, of which not 
        more than--''.
    (b) Meal Fees and Matching Amounts.--Section 802 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8011) is amended--
            (1) in subparagraph (A) of subsection (d)(7), by striking 
        ``The fees for meals shall be in the following amounts:'' and 
        all that follows through the end of the subparagraph; and
            (2) in subsection (i)(1)--
                    (A) in subparagraph (A)(i), by striking ``50 
                percent'' and inserting ``25 percent'';
                    (B) in subparagraph (A)(ii), by striking ``40 
                percent'' and inserting ``65 percent''; and
                    (C) in subparagraph (C), by striking ``10 percent'' 
                and inserting ``25 percent''.
    (c) Definition of ``Frail Elderly''.--Section 802(k)(8) of the 
Cranston-Gonzalez National Affordable Housing Act is amended by 
striking the first sentence and inserting the following new sentences: 
``The term `frail elderly' means an elderly person whose level of 
functional disability jeopardizes her or his ability to continue to 
live independently. The Secretary shall, to the extent possible, 
develop assessment measures of functional disability that are 
appropriate for purposes of this section and will provide for effective 
use of the program under this section with other programs providing 
supportive services.''.

SEC. 305. SUPPORTIVE HOUSING ASSISTANCE FOR ELDERLY INDEPENDENCE.

    (a) Section 8 Assistance.--The first sentence of section 803(j) of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
8012(j)) is amended to read as follows: ``The budget authority 
available under section 5(c) of the United States Housing Act of 1937 
for assistance under section 8 of such Act is authorized to be 
increased by $25,000,000 on or after October 1, 1994, and by 
$25,000,000 on or after October 1, 1995.''.
    (b) Supportive Services Authorization.--The first sentence of 
section 803(k) of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 8012(k)) is amended to read as follows: ``There are 
authorized to be appropriated for the Secretary to carry out the 
responsibilities for supportive services under the demonstrations under 
this section $7,000,000 to become available in fiscal year 1995, and 
$7,000,000 to become available in fiscal year 1996.''.
    (c) Supportive Services Contributions.--Section 803(c)(1) of the 
Cranston-Gonzalez National Affordable Housing Act is amended--
            (1) in subparagraph (A), by striking ``40 percent'' and 
        inserting ``65 percent''; and
            (2) in subparagraph (B), by striking ``50 percent'' and 
        inserting ``25 percent''.
    (d) Definition of ``Frail Elderly''.--Section 803(g)(3) of the 
Cranston-Gonzalez National Affordable Housing Act is amended by 
striking the first sentence and inserting the following new sentences: 
``The term `frail elderly person' means an elderly person whose level 
of functional disability jeopardizes her or his ability to continue to 
live independently. The Secretary shall, to the extent possible, 
develop assessment measures of functional disability that are 
appropriate for purposes of this section and will provide for effective 
use of the program under this section with other programs providing 
supportive services.''.
    (e) Amendment to Heading.--Section 803 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 8012) is amended by striking 
the section designation and heading and inserting the following:

``SEC. 803. SUPPORTIVE HOUSING ASSISTANCE FOR ELDERLY INDEPENDENCE.''.

SEC. 306. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

    (a) Authorization of Appropriations.--Section 863 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12912) is amended 
to read as follows:

``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $212,000,000 for fiscal year 1995 and $225,000,000 for fiscal 
year 1996.''.
    (b) Technical Assistance.--Section 854(c)(3) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12903(c)(3)) is 
amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(iii) nonprofit organizations that 
                        provide technical assistance on a national, 
                        regional, or State-wide basis to nonprofit 
                        organizations carrying out eligible activities 
                        under section 855 for eligible persons, to 
                        provide such technical assistance, except that 
                        not more than 2 percent of the amounts 
                        available in any fiscal year for allocation 
                        under this paragraph shall be used as provided 
                        in this clause.''; and
            (2) in subparagraph (B), by striking ``this paragraph'' and 
        inserting ``clauses (i) and (ii) of subparagraph (A)''.
    (c) Cooperation.--
            (1) In general.--Section 856(c) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12905(c)) is amended 
        by striking ``The recipient'' and all that follows and 
        inserting the following: ``The recipient shall establish and 
        implement a process for ensuring coordination and community 
        input in planning for and providing services assisted with 
        amounts provided under this subtitle. The planning process 
        shall include consultation and coordination with the agencies 
        of the relevant State and local governments responsible for 
        services for eligible persons in the area served by the 
        applicant and with other public and private organizations and 
        agencies providing services for such eligible persons 
        (including individuals with human immunodeficiency virus 
        disease), including community-based and AIDS service 
        organizations, providers of social services, providers of 
        mental health care, providers of substance abuse treatment 
        services, nonprofit providers of housing for eligible persons, 
        and affected communities.''.
            (2) Application.--Section 854(d) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12903(d)) is 
        amended--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (6) as paragraph 
                (7); and
                    (C) by inserting after paragraph (5) the following 
                new paragraph:
            ``(6) a description of the activities to be undertaken in 
        fulfilling the requirements under section 856(c); and''.
    (d) Administrative Expenses.--Section 856(g)(2) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12905(g)(2)) is 
amended--
            (1) by striking ``title'' and inserting ``subtitle''; and
            (2) by striking ``, including the costs of staff necessary 
        to carry out eligible activities''.

SEC. 307. SERVICE COORDINATORS.

    (a) Public Housing.--Section 9 of the United States Housing Act of 
1937 (42 U.S.C. 1437g) is amended in subsection (a)(1)(B)(ii)--
            (1) in the 1st sentence, by striking ``Annual'' and all 
        that follows through ``such project,'' and inserting ``To the 
        extent amounts are made available pursuant to section 5(c) for 
        carrying out this clause, the Secretary may increase the annual 
        contributions provided under this section to any public housing 
        agency for any project to provide''; and
            (2) by striking the last 2 sentences.
    (b) Other Federally Assisted Multifamily Housing.--Section 676(c) 
of the Housing and Community Development Act of 1992 (42 U.S.C. 
13632(c)) is amended to read as follows:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated for grants under this section such sums as may be 
necessary for each of fiscal years 1995 and 1996.''.

       TITLE IV--MORTGAGE INSURANCE AND SECONDARY MORTGAGE MARKET

       Subtitle A--Mortgage Insurance and Loan Guarantee Programs

SEC. 401. LIMITATION ON INSURANCE AUTHORITY.

    Section 531(b) of the National Housing Act (12 U.S.C. 1735f-9(b)) 
is amended to read as follows:
    ``(b) Notwithstanding any other provision of law and subject only 
to the absence of qualified requests for insurance, to the authority 
provided in this Act, and to the limitation in subsection (a), the 
Secretary shall enter into commitments to insure mortgages under this 
Act with an aggregate principal amount of $105,000,000,000 during 
fiscal year 1995 and $91,000,000,000 during fiscal year 1996.''.

SEC. 402. FEDERAL HOUSING ADMINISTRATION ADVISORY BOARD.

    Section 202(b)(11) of the National Housing Act (12 U.S.C. 
1708(b)(11)) is amended by striking ``January 1, 1995.'' and inserting 
``January 1, 1997.''.

SEC. 403. MAXIMUM MORTGAGE AMOUNT CEILING FOR SINGLE FAMILY MORTGAGES.

    Subparagraph (A) of the first sentence of section 203(b)(2) of the 
National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by striking 
clause (ii) and inserting the following new clause:
                            ``(ii) 85 percent of the dollar amount 
                        limitation determined under section 305(a)(2) 
                        of the Federal Home Loan Mortgage Corporation 
                        Act (as adjusted annually under such section) 
                        for a residence of the applicable size;''.

SEC. 404. MAXIMUM MORTGAGE AMOUNT FLOOR FOR SINGLE FAMILY MORTGAGE 
              INSURANCE.

    Subparagraph (A) of the first sentence of section 203(b)(2) of the 
National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by striking 
``the dollar amount limitation in effect under this section for the 
area on May 12, 1992'' and inserting the following: ``50 percent of the 
dollar amount limitation determined under section 305(a)(2) of the 
Federal Home Loan Mortgage Corporation Act (as adjusted annually under 
such section) for a residence of the applicable size''.

SEC. 405. ELIMINATION OF RESTRICTIONS REGARDING NEW CONSTRUCTION.

    (a) In General.--Section 203(b)(2) of the National Housing Act (12 
U.S.C. 1709(b)(2)) is amended, in the matter following subparagraph 
(B)--
            (1) in the 1st undesignated paragraph, by striking 
        ``Notwithstanding any other provision of this section,'' and 
        all that follows through ``beginning of construction.''; and
            (2) by striking the 2d undesignated paragraph (relating to 
        mortgage insurance amounts for residences having solar energy 
        systems).
    (b) Repeal of Authority to Expend Amounts From Insurance Fund to 
Correct Substantial Defects.--Section 518 of the National Housing Act 
(12 U.S.C. 1735b) is hereby repealed.

SEC. 406. AUTHORITY TO USE AMOUNTS BORROWED FROM FAMILY MEMBERS FOR 
              DOWNPAYMENTS.

    (a) In General.--Section 203(b)(9) of the National Housing Act (12 
U.S.C. 1709(b)(9)) is amended by inserting before the period at the end 
the following: ``: Provided further, That for purposes of this 
paragraph, the Secretary shall consider as cash or its equivalent any 
amounts borrowed from a family member (as such term is defined in 
section 201), subject only to the requirements that, in any case in 
which the repayment of such borrowed amounts is secured by a lien 
against the property, such lien shall be subordinate to the mortgage 
and the sum of the principal obligation of the mortgage and the 
obligation secured by such lien may not exceed 100 percent of the 
appraised value of the property plus any initial service charges, 
appraisal, inspection, and other fees in connection with the 
mortgage''.
    (b) Definition of Family Member.--Section 201 of the National 
Housing Act (12 U.S.C. 1707) is amended by adding at the end the 
following new subsections:
    ``(e) The term `family member' means, with respect to a mortgagor 
under such section, a child, parent, or grandparent of the mortgagor 
(or the mortgagor's spouse). In determining whether any of the 
relationships referred to in the preceding sentence exist, a legally 
adopted son or daughter of an individual (and a child who is a member 
of an individual's household, if placed with such individual by an 
authorized placement agency for legal adoption by such individual), and 
a foster child of an individual, shall be treated as a child of such 
individual by blood.
    ``(f) The term `child' means, with respect to a mortgagor under 
such section, a son, stepson, daughter, or stepdaughter of such 
mortgagor.''.

SEC. 407. INDEMNIFICATION FOR MULTIFAMILY HOUSING PROJECT MANAGERS.

    Section 207(l) of the National Housing Act (12 U.S.C. 1713(l)) is 
amended by inserting before the period at the end the following: ``: 
Provided further, That, for properties acquired by the Secretary under 
this section and for properties secured by any mortgage assigned and 
transferred to or held by the Secretary, the Secretary may indemnify 
management contractors against claims by third persons for death, 
bodily injury, or loss of or damage to property on such terms as the 
Secretary determines appropriate''.

SEC. 408. EXTENSION OF MULTIFAMILY HOUSING MORTGAGE AUCTION PROVISIONS.

    The first sentence of section 221(g)(4)(C)(viii) of the National 
Housing Act (12 U.S.C. 1715l(g)(4)(C)(viii)) is amended by striking 
``September 30, 1995'' and inserting ``December 31, 2005''.

SEC. 409. STREAMLINED REFINANCING FOR HUD-HELD MORTGAGES.

    (a) In General.--Section 223(a) of the National Housing Act (12 
U.S.C. 1715n) is amended--
            (1) in paragraph (7), by striking the colon preceding 
        ``Provided further,'' and all that follows through ``and the 
        mortgagee'';
            (2) by redesignating paragraph (8) as paragraph (9);
            (3) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) given to refinance a mortgage held by the Secretary, 
        upon such terms and conditions as the Secretary may prescribe, 
        covering property on which there is located a 1- to 4-family 
        residence, or a 1-family unit in a condominium project, which 
        mortgage was formerly insured under this Act and subsequently 
        assigned to the Secretary: Provided, That the mortgagor has not 
        previously refinanced a mortgage pursuant to this paragraph: 
        Provided further, That the mortgagor has made all payments due 
        under the note secured by the existing mortgage and all 
        payments due under the note for at least the previous 6 months, 
        or the mortgagor is under a forbearance agreement and has made 
        all payments due under the note secured by the existing 
        mortgage for at least the previous 6 months: Provided further, 
        That the principal amount of the refinancing mortgage may not 
        exceed the outstanding principal balance of the existing 
        mortgage by more than additional amounts owed by the mortgagor 
        due to the delinquency and to the receipt of assignment 
        assistance under section 230: Provided further, That the 
        monthly payment due under the refinancing mortgage may not 
        exceed the monthly payment due under the existing mortgage: 
        Provided further, That the refinancing mortgage may have a term 
        not more than 12 years in excess of the unexpired term of the 
        assigned mortgage: Provided further, That the refinancing 
        mortgage may be insured under section 203(b) or 221(d)(2) of 
        this Act, at the option of the mortgagee, or under section 
        234(c) of this Act in the case of a condominium: Provided 
        further, That a refinancing mortgage insured under section 
        221(d)(2) shall involve a principal obligation in an amount not 
        to exceed 50 percent of the applicable dollar limitation for a 
        1- to 4-family residence under section 203(b)(2): Provided 
        further, That the authority under this paragraph to refinance a 
        mortgage shall terminate 30 months after the date of enactment 
        of this Act: Provided further, That the total number of 
        mortgages refinanced under this paragraph may not exceed 
        20,000; or''; and
            (4) by adding at the end the following new flush material:
``A mortgage of the character described in paragraphs (1) through (6) 
of this subsection shall have a maturity and a principal obligation not 
in excess of the maximums prescribed under the applicable section or 
title of this Act, except that in no case may the principal obligation 
of a mortgage referred to in paragraph (5) of this subsection exceed 90 
percent of the appraised value of the mortgage property, and shall bear 
interest at such rate as may be agreed upon by the mortgagor and the 
mortgagee.''.
    (b) Implementation.--The Secretary of Housing and Urban Development 
may implement the authority to refinance a mortgage held by the 
Secretary under section 223(a)(8) of the National Housing Act, as added 
by the amendment made by subsection (a)(3) of this section, by notice 
published in the Federal Register setting forth such requirements as 
may be necessary.

SEC. 410. HOME EQUITY CONVERSION MORTGAGES FOR ELDERLY HOMEOWNERS.

    (a) Extension of Program.--The first sentence of section 255(g) of 
the National Housing Act (12 U.S.C. 1715z-20(g)) is amended by striking 
``September 30, 1995'' and inserting ``September 30, 2000''.
    (b) Eligible Residences.--Section 255(d)(3) of the National Housing 
Act (12 U.S.C. 1715z-20(d)(3)) is amended to read as follows:
            ``(3) be secured by a dwelling that is designed principally 
        for a 1- to 4-family residence in which the mortgagor occupies 
        1 of the units;''.
    (c) Expansion of Program.--The second sentence of section 255(g) of 
the National Housing Act (12 U.S.C. 1715z-20(g)) is amended by striking 
``25,000'' and inserting ``50,000''.
    (d) Reports.--Section 255(k) of the National Housing Act is amended 
by adding at the end the following new sentences: ``Each biennial 
report shall also include the results of a survey conducted during the 
period since the most recent report under this subsection to determine 
(A) the financial and other needs of elderly homeowners that cause such 
homeowners to consider obtaining home equity conversion mortgages, and 
(B) the extent of consumer satisfaction regarding the program under 
this section and counseling provided pursuant to the requirements of 
this section. In conducting the survey, the Secretary shall consult a 
representative sample of mortgagors of mortgages insured under this 
section and of elderly homeowners who have expressed interest in 
obtaining, but did not obtain, such mortgages.''.
    (e) Avoidance of Preemption of State Law.--Section 255(b)(3) of the 
National Housing Act is amended--
            (1) in clause (B), by striking ``, notwithstanding any 
        State constitution, law, or regulation''; and
            (2) by adding at the end the following new sentence: 
        ``Notwithstanding any other provision of this section, the 
        Secretary may not provide insurance for a home equity 
        conversion mortgage in the State of Texas if under the State 
        constitution, or a law or regulation of such State, such 
        mortgages are prohibited or foreclosure or forced sale of the 
        property subject to such a mortgage is prohibited.''.

SEC. 411. SINGLE FAMILY RISK-SHARING MORTGAGE INSURANCE PROGRAM.

    (a) In General.--Title II of the National Housing Act (12 U.S.C. 
1707 et seq.) is amended by adding at the end the following new 
section:

       ``single family risk-sharing with state and local agencies

    ``Sec. 256. (a) Purposes.--The purposes of the program under this 
section are (1) to increase the availability of single family mortgage 
financing in areas where there is need for mortgage insurance under 
this Act that cannot be met due to particularly high average median 
house prices in the area, and (2) to foster arrangements with State and 
local agencies to share the risk of mortgage insurance.
    ``(b) Authority.--Notwithstanding any other provision of this Act 
inconsistent with this section, the Secretary may insure and make 
commitments to insure under this section mortgages on single family 
properties under risk-sharing mortgage insurance programs established 
with 1 or more States or agencies. Under such programs, the Secretary 
shall insure a portion of the mortgage, and the State or local agency 
shall insure the remainder or (at the discretion of the agency) a 
portion of the remainder and provide for private mortgage insurance 
companies to insure any portion of the remainder not insured by the 
agency. The portion of the mortgage insured under this section by the 
Secretary and the State or local agency, in the aggregate, may not 
exceed 35 percent of the outstanding principal obligation of the 
mortgage (and such fees, interest, and other expenses determined by the 
Secretary to be appropriate).
    ``(c) Eligible Mortgages.--The Secretary may insure under this 
section, and make commitments to insure under this section, only 
mortgages that--
            ``(1) are executed--
                    ``(A) in connection with the acquisition of a 
                single family property; or
                    ``(B) for the refinancing of a mortgage that was 
                previously insured under this section; and
            ``(2) involve a property located in an area--
                    ``(A) for which the amount under clause (ii) of 
                section 203(b)(2)(A) is less than the amount determined 
                under clause (i) of such section for a residence of the 
                applicable size; and
                    ``(B) that has a State agency that--
                            ``(i) is fully authorized under State and 
                        local laws and is adequately capitalized, in 
                        the determination of the Secretary, to carry 
                        out this section; and
                            ``(ii)(I) carries the designation of `top 
                        tier' or its equivalent, as evaluated by 
                        Standard and Poors or any other nationally 
                        recognized rating agency; or
                            ``(II) receives a rating of `A' for its 
                        general obligation bonds from a nationally 
                        recognized rating agency.
    ``(d) Applications.--
            ``(1) Approval.--The Secretary may approve an application 
        submitted by a State or local agency to establish a risk-
        sharing program under this section, only if the Secretary 
        determines that the State or local agency has demonstrated 
        that--
                    ``(A) it has the legal authority under State law 
                and, where applicable, local law, to participate in the 
                program under this section;
                    ``(B) it has carried out, or has the potential to 
                carry out, a financially sound, efficient, and 
                effective mortgage insurance program; and
                    ``(C) it has the ongoing administrative and 
                financial capacity necessary to carry out a program 
                under this section.
            ``(2) Cancellation of approval.--The Secretary may cancel 
        approval of a State or local agency under this section for a 
        violation of requirements and procedures under the risk-sharing 
        agreement between the State or local agency and the Secretary 
        or for other good cause, by giving notice to the State or local 
        agency. The cancellation shall be effective upon receipt of the 
        notice by the agency or at a later date specified by the 
        Secretary. A decision by the Secretary to cancel approval shall 
        be final and conclusive and shall not be subject to judicial 
        review.
    ``(e) Delegation of Authority To Insure to State and Local 
Agencies.--Pursuant to a risk-sharing agreement with a State or local 
agency, the Secretary shall delegate the authority to insure and make 
commitments to insure the portion of mortgages to be insured by the 
Secretary under this section to the State or local agency. The risk-
sharing agreement shall contain such other matters as the Secretary and 
the State or local agency agree.
    ``(f) Underwriting Standards and Loan Terms and Conditions.--The 
State or local agency shall adopt underwriting standards and loan terms 
and conditions for purposes of underwriting loans to be insured under 
this section. Such standards shall be at least as stringent as the 
standards pursuant to this Act for mortgages insured under section 203 
and shall be subject to review and approval by the Secretary.
    ``(g) Mortgage Insurance Premiums.--
            ``(1) Requirement.--The State or local agency shall require 
        the payment of mortgage insurance premiums by mortgagors.
            ``(2) Shares.--The Secretary shall establish policies and 
        procedures for the sharing of premiums between the Secretary 
        and the State or local agency, based on the relative risk to, 
        and administrative costs of, the Secretary and the State or 
        local agency. The share paid to the Secretary shall not be less 
        than an amount necessary to cover the risk to, and 
        administrative costs of, the Secretary.
    ``(h) Limitations on Principal Mortgage Amount.--
            ``(1) Insured portion.--The portion of the mortgage insured 
        under this section by the Secretary may not exceed an amount 
        equal to the lesser of (A) 80 percent of the appraised value of 
        the property, or (B) the maximum amount the Secretary may 
        insure under section 203(b) of this Act for the area (but not 
        including any amount for a mortgage insurance premium).
            ``(2) Total principal amount.--The total principal amount 
        of a mortgage insured under this section by the Secretary and 
        the State or local agency (A) shall exceed the maximum amount 
        the Secretary may insure under subparagraph (A) of the first 
        sentence of section 203(b)(2) for the area, and (B) may not 
        exceed the conforming loan limitation determined under section 
        305(a)(2) of the Federal Home Loan Mortgage Corporation Act for 
        a residence of the applicable size, as adjusted annually.
            ``(3) Loan-to-value ratio.--The principal obligation of a 
        mortgage may not exceed an amount determined in accordance with 
        subparagraph (B) of the first sentence of section 203(b)(2) 
        plus the mortgage insurance premium.
            ``(4) Refinancing mortgages.--Notwithstanding paragraph 
        (2)(A) or (3), in the case of refinancing of an existing 
        mortgage that was previously insured under this section, the 
        principal obligation of a refinancing mortgage may not exceed 
        the outstanding principal balance of the existing mortgage plus 
        any mortgage insurance premium.
    ``(i) Insurance Claims.--
            ``(1) Procedure.--In the case of a default and foreclosure 
        of a mortgage insured under this section, the mortgagee may 
        file a claim with the State or local agency for insurance 
        benefits in accordance with requirements established by the 
        State or local agency and approved by the Secretary. The agency 
        shall pay the full amount of the claim owed to the mortgagee. 
        If the loss on the insured mortgage exceeds the amount of 
        insurance by the agency, the Secretary shall reimburse the 
        agency for the difference.
            ``(2) Mutual mortgage insurance fund.--The insurance of a 
        mortgage under this section by the Secretary shall be an 
        obligation of the Mutual Mortgage Insurance Fund created 
        pursuant to section 205.
    ``(j) Inapplicability of the Assignment Program.--Section 230 shall 
not apply to mortgages insured under the program authorized by this 
section.
    ``(k) Restriction on GNMA Securitization.--The Government National 
Mortgage Association shall not securitize any loans insured under this 
section.
    ``(l) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) The term `local agency' means an agency of a unit of 
        general local government, as defined by the Secretary, that has 
        the authority to insure mortgages and to participate with the 
        Secretary in the single family risk-sharing program under this 
        section, or an agency or instrumentality of a local agency if 
        the agency or instrumentality has such authority.
            ``(2) The term `State agency' means an agency of a State 
        that has the authority to insure mortgages and to participate 
        with the Secretary in the single family risk-sharing program 
        under this section, or an agency or instrumentality of a State 
        agency if the agency or instrumentality has such authority.
            ``(3) The term `single family property' means a property 
        upon which there is located a dwelling designed principally for 
        occupancy by 1 family, and includes a condominium and a 
        cooperative.
            ``(4) The term `State' means the several States, the 
        Commonwealth of Puerto Rico, the District of Columbia, Guam, 
        the Commonwealth of the Northern Mariana Islands, American 
        Samoa, and the Virgin Islands.''.
    (b) Regulations.--The Secretary of Housing and Urban Development 
shall issue any regulations necessary to implement the amendment made 
by subsection (a).

SEC. 412. DELEGATION OF SINGLE FAMILY MORTGAGE INSURING AUTHORITY TO 
              DIRECT ENDORSEMENT MORTGAGEES.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.), as 
amended by the preceding provisions of this Act, is further amended by 
adding at the end the following new section:

  ``delegation of insuring authority to direct endorsement mortgagees

    ``Sec. 257. (a) Authority.--The Secretary may delegate, to one or 
more mortgagees approved by the Secretary under the direct endorsement 
program, the authority of the Secretary under this Act to insure 
mortgages involving property upon which there is located a dwelling 
designed principally for occupancy by 1 to 4 families.
    ``(b) Considerations.--In determining whether to delegate authority 
to a mortgagee under this section, the Secretary shall consider the 
experience and performance of the mortgagee under the direct 
endorsement program, the default rate of insured mortgages originated 
by the mortgagee compared to the default rate of all insured mortgages 
in comparable markets, and such other factors as the Secretary 
determines appropriate to minimize risk of loss to the insurance funds 
under this Act.
    ``(c) Enforcement of Insurance Requirements.--
            ``(1) In general.--If the Secretary determines that a 
        mortgage insured by a mortgagee pursuant to delegation of 
        authority under this section was not originated in accordance 
        with the requirements established by the Secretary, and the 
        Secretary pays an insurance claim with respect to the mortgage 
        within a reasonable period specified by the Secretary, the 
        Secretary may require the mortgagee approved under this section 
        to indemnify the Secretary for the loss.
            ``(2) Fraud or misrepresentation.--If fraud or 
        misrepresentation was involved in connection with the 
        origination, the Secretary may require the mortgagee approved 
        under this section to indemnify the Secretary for the loss 
        regardless of when an insurance claim is paid.
    ``(d) Termination of Mortgagee's Authority.--If a mortgagee to 
which the Secretary has made a delegation under this section violates 
the requirements and procedures established by the Secretary or the 
Secretary determines that other good cause exists, the Secretary may 
cancel a delegation of authority under this section to the mortgagee by 
giving notice to the mortgagee. Such a cancellation shall be effective 
upon receipt of the notice by the mortgagee or at a later date 
specified by the Secretary. A decision by the Secretary to cancel a 
delegation shall be final and conclusive and shall not be subject to 
judicial review.
    ``(e) Requirements and Procedures.--Before approving a delegation 
under this section, the Secretary shall issue regulations establishing 
appropriate requirements and procedures, including requirements and 
procedures governing the indemnification of the Secretary by the 
mortgagee.''.

SEC. 413. ELIGIBILITY OF MORTGAGES ON HOMES ON LEASED LAND OWNED BY 
              COMMUNITY LAND TRUSTS.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.), as 
amended by the preceding provisions of this Act, is further amended by 
adding at the end the following new section:

 ``eligibility of mortgages on homes on leased land owned by community 
                              land trusts

    ``Sec. 258. (a) Eligibility for Insurance.--In providing mortgage 
insurance under any provision of this title for a mortgage covering a 
1- to 4-family residence, the Secretary may insure a mortgage covering 
such a residence which is located on property owned by a community land 
trust without regard to the extent to which the resale price of the 
residence is restricted or the manner in which such price is 
established.
    ``(b) Limitation on Restrictions.--The Secretary may not, as a 
condition of such insurance, establish any requirements regarding the 
resale price of residences on land owned by a community land trust, 
except that the Secretary may require that a ground lease or other 
document establishing legally enforceable restrictions or limitations 
on the resale price provide that the restrictions or limitations be 
cancelable in the event of foreclosure or delivery of a deed in lieu of 
foreclosure (or assignment).
    ``(c) Definition of `Community Land Trust'.--For purposes of this 
section, the term `community land trust' has the meaning given the term 
in section 233 of the Cranston-Gonzalez National Affordable Housing 
Act.''.

SEC. 414. INSURANCE OF 2-STEP SINGLE FAMILY MORTGAGES.

    Title II of the National Housing Act (12 U.S.C. 1701 et seq.), as 
amended by the preceding provisions of this Act, is further amended by 
adding at the end the following new section:

                    ``2-step single family mortgages

    ``Sec. 259. (a) Authority.--After making the finding required under 
subsection (d), the Secretary may insure under any provision of this 
title a mortgage involving property upon which there is located a 
dwelling designed principally for occupancy by 1 to 4 families, where 
the mortgage provides that the effective rate of interest charged is--
            ``(1) fixed for the duration of a specified period that 
        consists of not less than the first 5 years of the mortgage 
        term;
            ``(2) adjusted by the mortgagee upon the expiration of the 
        specified period referred to in paragraph (1) for the mortgage; 
        and
            ``(3) for the term of the mortgage remaining after such 
        adjustment--
                    ``(A) fixed at the adjusted rate established 
                pursuant to paragraph (2); or
                    ``(B) periodically adjusted by the mortgagee.
    ``(b) Redetermination of Rate.--For each mortgage insured pursuant 
to this section, the adjustment of the effective rate of interest 
pursuant to subsection (a)(2) may be accomplished through adjustments 
in the monthly payment amount, the outstanding principal balance, or 
the mortgage term, or a combination of such factors, except that in no 
case may any extension of a mortgage term result in a total term in 
excess of 40 years. The adjustment in the effective rate of interest 
shall correspond to a specified national interest rate index that is 
approved in regulations issued by the Secretary and information on 
which is readily accessible to the mortgagors from generally available 
published sources.
    ``(c) Limitations on Second-Step Periodic Rates.--For each mortgage 
insured pursuant to this section for which the effective rate of 
interest charged pursuant to subsection (a)(3) is periodically adjusted 
under subparagraph (B) of such subsection, such adjustments in the 
interest rate--
            ``(1) may be accomplished through adjustments in the 
        monthly payment amount, the outstanding principal balance, or 
        the mortgage term, or a combination of such factors, except 
        that in no case may any extension of a mortgage term result in 
        a total term in excess of 40 years;
            ``(2) shall correspond to a specified national interest 
        rate index that is approved in regulations issued the Secretary 
        and information on which is readily accessible to the 
        mortgagors from generally available published sources;
            ``(3) shall be made on an annual basis;
            ``(4) shall be limited, with respect to any single interest 
        rate increase, to no more than 1 percent on the outstanding 
        loan balance; and
            ``(5) be limited to a maximum increase of 5 percentage 
        points above the initial contract interest rate over the term 
        of the mortgage.
    ``(d) Conditions on Insuring Authority.--The Secretary may insure 
mortgages pursuant to this section only after determining that the risk 
posed by such insurance to the financial safety and soundness of the 
insurance fund of which the mortgage insurance is an obligation does 
not exceed such risk posed by insurance of mortgages of equivalent 
terms having fixed interest rates over such terms.
    ``(e) Description of Features.--The Secretary shall issue 
regulations requiring that the mortgagee make available to the 
mortgagor, at the time of loan application, a written explanation of 
the features of the 2-step mortgage insured pursuant to this section.
    ``(f) Limitation of Total Number of Mortgages Insured.--The 
aggregate number of mortgages and loans insured pursuant to this 
section in any fiscal year may not exceed 10 percent of the aggregate 
number of mortgages and loans insured by the Secretary under this title 
during the preceding fiscal year.''.

SEC. 415. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS IN HIGH-COST AREAS.

    (a) In General.--Each of the provisions under subsection (b) is 
amended by striking ``140 percent'' and inserting ``152 percent''.
    (b) Provisions Amended.--The provisions under this subsection are 
the following sections of title II of the National Housing Act (12 
U.S.C. 1707 et seq.):
            (1) Section 207(c)(3).
            (2) Section 213(b)(2).
            (3) Section 220(d)(3)(B)(iii).
            (4) Section 221(d)(3)(ii).
            (5) Section 221(d)(4)(ii).
            (6) Section 231(c)(2).
            (7) Section 234(e)(3).

SEC. 416. CALCULATION OF CREDIT SUBSIDY FOR FHA REFINANCINGS AND OFFSET 
              OF NEGATIVE SUBSIDIES.

    (a) Refinancing.--Paragraph (2) of section 542 of the National 
Housing Act (12 U.S.C. 1735f-20(2)) is amended by adding at the end the 
following new sentence: ``In the case of a mortgage insured under this 
Act that refinances an existing insured mortgage, the cost to the 
Government shall not exceed an amount that is determined by applying 
the subsidy rate used for the insurance authority pursuant to which the 
refinanced mortgage was insured to the amount of the refinancing 
mortgage which exceeds the outstanding principal balance of the 
refinanced mortgage, which amount may be adjusted, if necessary, by 
reason of an extension in the remaining term of the refinanced 
mortgage.''.
    (b) Offsets.--Section 542 of the National Housing Act is amended by 
adding at the end the following new flush sentence:
``The cost, as defined in section 502 of the Congressional Budget Act 
of 1974, for any fiscal year of new insurance commitments and of 
modifications to existing loans, loan guarantees, or insurance 
commitments, shall be determined by subtracting the aggregate amount of 
negative subsidies from the aggregate amount of positive subsidies for 
the fiscal year.''.

SEC. 417. APPROVAL OF POINT-OF-USE PURIFICATION SYSTEMS AND TESTING OF 
              SYSTEMS.

    (a) In General.--Section 424 of the Housing and Community 
Development Act of 1987 (12 U.S.C. 1701z-15) is amended--
            (1) in subsection (a), by inserting after the period at the 
        end the following new sentence: ``The Secretary of Housing and 
        Urban Development shall provide for the approval under 
        subsection (c) of both point-of-use and point-of-entry water 
        treatment equipment and water purification systems that meet 
        the standards established under this section.'';
            (2) in the first sentence of subsection (b), by striking 
        ``general standards recognized by the Department as modified 
        for local or regional conditions'' and inserting the following: 
        ``standards for testing using (1) industry-accepted product 
        testing protocols, or (2) protocols that utilize technically 
        valid methodology using analytical testing methods of the 
        Environmental Protection Agency for drinking water quality and 
        maximum contaminant levels or equivalent methods'';
            (3) by redesignating subsection (b) (as amended by 
        paragraph (2) of this section) as subsection (c); and
            (4) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Point-of-Use Equipment.--For any property in which the water 
treatment or purification system in operation employs point-of-use 
equipment, the Secretary may not require that a treatment or 
purification system be employed on any water supply source serving the 
property that provides water that will not be used primarily for human 
consumption.''.
    (b) Regulations.--The Secretary of Housing and Urban Development 
shall issue any regulations necessary to carry out section 424 of the 
Housing and Community Development Act of 1987, as amended by subsection 
(a) of this section, not later than the expiration of the 6-month 
period beginning on the date of the enactment of this Act.

SEC. 418. ENERGY EFFICIENT MORTGAGES PILOT PROGRAM.

    Section 106 of the Energy Policy Act of 1992 (42 U.S.C. 12712 note) 
is amended--
            (1) in subsection (a)(2)--
                    (A) in subparagraph (A), by inserting ``(which may 
                be an adjustable rate mortgage insured under section 
                251 of such Act and may be a mortgage for a property 
                that is not the principal or secondary residence of the 
                mortgagor to the extent provided in section 203(g) of 
                such Act)'' after ``Act''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(D) Rating and installation.--The program shall 
                provide that the person conducting the home energy 
                rating report under subsection (c)(2) for the property 
                subject to the energy efficient mortgage may also, 
                subject only to the approval of the mortgagee and 
                mortgagor, install the energy efficiency 
                improvements.''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by inserting ``(including an 
                adjustable rate mortgage loan eligible for insurance 
                under section 251 of such Act)'' after ``Act''; and
                    (B) in the first sentence of paragraph (2), by 
                striking ``the total present value cost'' and all that 
                follows through the end of the sentence and inserting 
                the following: ``energy improvements that generate 
                energy savings in the first year after improvement that 
                are greater than the increase in the amount of the loan 
                payment for such first-year due to the energy 
                improvements. In the case of a base loan insured under 
                section 251 of the National Housing Act, the interest 
                rate used to determine the amount of such increase in 
                the loan payment shall be the maximum allowable 
                interest rate under the mortgage.''.

SEC. 419. EXTENSION OF MULTIFAMILY MORTGAGE CREDIT DEMONSTRATIONS.

    Section 542 of the Housing and Community Development Act of 1992 
(12 U.S.C. 1707 note) is amended--
            (1) in subsection (b)(5), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''; and
            (2) in subsection (c)(4), by striking ``1993, 1994, and 
        1995'' and inserting ``1995, 1996, and 1997''.

SEC. 420. INDIAN HOUSING LOAN GUARANTEES.

    (a) Limitation on Outstanding Aggregate Principal Amount.--Section 
184(i)(5)(C) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a(i)(5)(C)) is amended by striking ``fiscal years 1993 
and 1994'' and inserting ``fiscal years 1995 and 1996''.
    (b) Authorization of Appropriations for Guarantee Fund.--Section 
184(i)(7) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a(i)(7)) is amended to read as follows:
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Guarantee Fund to carry 
        out this section $50,000,000 for fiscal year 1995 and 
        $50,000,000 for fiscal year 1996.''.

SEC. 421. NATIONAL COMMISSION ON THE FUTURE OF THE FEDERAL HOUSING 
              ADMINISTRATION.

    (a) Purpose.--The purpose of this section is to establish a 
national commission to develop recommendations regarding the 
appropriate future role of the Federal Government in providing mortgage 
insurance, for modernizing and improving the structure and operations 
of the Federal Housing Administration, for protecting the safety and 
soundness of the insurance funds of the FHA, and for serving families 
currently underserved by the mortgage finance system.
    (b) Establishment.--There is hereby established a commission to be 
known as the National Commission on the Future of the Federal Housing 
Administration.
    (c) Membership.--
            (1) In general.--The Commission shall consist of the 
        Secretary of Housing and Urban Development and 16 members 
        appointed, not later than 60 days after amounts to carry out 
        this section are made available under subsection (h), as 
        follows:
                    (A) 4 members shall be appointed by the Chairman of 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate and 4 members shall be appointed by the 
                Ranking Minority Member of such Committee.
                    (B) 4 members shall be appointed by the Chairman of 
                the Committee on Banking, Finance and Urban Affairs of 
                the House of Representatives and 4 members shall be 
                appointed by the Ranking Minority Member of such 
                Committee.
            (2) Qualifications.--The 8 members of the Commission 
        appointed under each of subparagraphs (A) and (B) of paragraph 
        (1) shall include--
                    (A) 1 individual who represents the mortgage 
                finance industry;
                    (B) 1 individual with knowledge and experience from 
                a secondary mortgage market entity;
                    (C) 1 individual with knowledge and experience 
                concerning home sales or multifamily housing 
                management;
                    (D) 1 individual who represents the private 
                mortgage insurance industry;
                    (E) 1 individual with knowledge and experience 
                concerning single family or multifamily housing asset 
                management;
                    (F) 1 individual who represents a State or local 
                housing agency active in single family or multifamily 
                housing activities;
                    (G) 1 individual who represents the interests of 
                consumers or communities, in single family or 
                multifamily housing; and
                    (H) 1 individual who represents or resides in an 
                urban or rural neighborhood whose residents consist 
                predominantly of members of minorities.
            (3) Chairperson.--The Commission shall elect a chairperson 
        from among members of the Commission.
            (4) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum for the transaction of business.
            (5) Voting.--Each member of the Commission shall be 
        entitled to 1 vote, and all votes shall be given equal weight.
            (6) Vacancies.--Any vacancy on the Commission shall not 
        affect the powers of the Commission and shall be filled in the 
        manner in which the original appointment was made.
            (7) Prohibition on additional pay.--Members of the 
        Commission shall serve without compensation, but shall be 
        reimbursed for travel, subsistence, and other necessary 
        expenses incurred in the performance of their duties as members 
        of the Commission.
    (d) Subcommittees.--In carrying out its duties under subsection 
(e), the Commission shall establish 2 subcommittees, 1 of which shall 
carry out such duties with respect to issues relating to mortgage 
insurance for multifamily housing and 1 of which shall carry out such 
duties with respect to issues relating to mortgage insurance for single 
family housing.
    (e) Duties.--
            (1) In general.--The Commission shall conduct a study of 
        the existing operations of the FHA and shall make 
        recommendations regarding the future mission, organization, 
        responsibilities, and function of the FHA. In conducting the 
        study and formulating recommendations, the Commission shall--
                    (A) determine the most appropriate role for the 
                Federal Government in extending the availability of 
                mortgage credit and review various alternative mortgage 
                products and, with regard to the mission and functions 
                of the FHA, the appropriateness of the use of such 
                products by the FHA;
                    (B) determine whom FHA programs are intended to 
                serve;
                    (C) consider whether the FHA could function more 
                effectively if organized as a government corporation, a 
                government-sponsored enterprise, or with any other 
                organizational structure different from the existing 
                structure;
                    (D) consider whether the personnel, procurement, 
                budgeting, and other requirements generally applicable 
                to the Federal agencies should be modified in their 
                applicability to the FHA;
                    (E) review the laws establishing and relating to 
                the FHA and determine whether amendments to such law 
                would be appropriate to restructure the FHA, or to 
                provide new authority or increased flexibility for the 
                operations of the FHA;
                    (F) determine ways in which the FHA can more 
                effectively contribute to the revitalization of inner 
                cities and increase housing opportunities for low-
                income families;
                    (G) determine ways to improve the management and 
                sale of assets owned by the FHA;
                    (H) determine ways to reduce the risk of future 
                insurance losses from the existing inventory of 
                outstanding mortgages insured by the FHA; and
                    (I) determine ways to improve the private 
                management of multifamily properties insured by the 
                FHA.
            (2) Interim report.--Not later than the expiration of the 
        10-month period beginning upon the appointment of all of the 
        members of the Commission under subsection (c), the Commission 
        shall submit to the Secretary of Housing and Urban Development 
        and to the Congress an interim report containing the 
        preliminary information and evaluations specified in paragraph 
        (1) and initial recommendations for legislative and 
        administrative actions to carry out the determinations made 
        pursuant to paragraph (1).
            (3) Report.--Not later than the expiration of the 18-month 
        period beginning upon the appointment of all of the members of 
        the Commission under subsection (c), the Commission shall 
        submit to the Secretary of Housing and Urban Development and to 
        the Congress a report containing the information and 
        evaluations specified in paragraph (1) and specific 
        recommendations for legislative and administrative actions to 
        carry out the determinations made pursuant to paragraph (1).
    (f) Powers.--
            (1) Hearings.--The Commission may, for the purpose of 
        carrying out this section, hold such hearings and sit and act 
        at such times and places as the Commission considers 
        appropriate.
            (2) Rules and regulations.--The Commission may adopt such 
        rules and regulations as may be necessary to establish its 
        procedures and to govern the manner of its operations, 
        organization, and personnel.
            (3) Assistance from federal agencies.--
                    (A) Information.--The Commission may secure 
                directly from any department or agency of the United 
                States such data and information as the Commission may 
                require for the purpose of carrying out this section. 
                Upon request of the Commission, any such department or 
                agency shall furnish such data or information. The 
                Commission may acquire data or information directly 
                from such departments or agencies to the same extent 
                that the Secretary may acquire such data or 
                information.
                    (B) Administrative support.--The General Services 
                Administration shall provide to the Commission, on a 
                reimbursable basis, administrative support services 
                requested by the Commission.
                    (C) Personnel details.--Upon the request of the 
                chairperson of the Commission, the Secretary shall, to 
                the extent possible and subject to the discretion of 
                the Secretary, detail any of the personnel of the 
                Department of Housing and Urban Development, on a 
                nonreimbursable basis, to assist the Commission in 
                carrying out its duties under this section.
            (4) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as other 
        Federal agencies.
            (5) Contracting.--The Commission may, to such extent and in 
        such amounts as are provided in appropriations Acts, enter into 
        contracts necessary to carry out its duties under this section.
            (6) Advisory committee.--The Commission shall be considered 
        an advisory committee within the meaning of the Federal 
        Advisory Committee Act.
            (7) Staff.--
                    (A) Executive director.--The Commission shall 
                appoint an executive director of the Commission who 
                shall be compensated at a rate fixed by the Commission, 
                but which may not exceed the rate established for level 
                V of the Executive Schedule under title 5, United 
                States Code.
                    (B) Personnel.--In addition to the executive 
                director, the Commission may appoint and fix the 
                compensation of such personnel as the Commission 
                considers appropriate, in accordance with the 
                provisions of title 5, United States Code, governing 
                appointments in the competitive service, and the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of such title, relating to classification and 
                General Schedule pay rates.
                    (C) Limitation.--This paragraph shall be effective 
                only to the extent amounts are made available in 
                appropriation Acts.
    (g) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) The term ``Commission'' means the National Commission 
        on the Future of the Federal Housing Administration.
            (2) The term ``FHA'' means the Federal Housing 
        Administration of the Department of Housing and Urban 
        Development.
            (3) The term ``Secretary'' means the Secretary of Housing 
        and Urban Development.
    (h) Funding.--Of any amounts appropriated pursuant to section 501 
of the Housing and Urban Development Act of 1970, the Secretary shall 
set aside to carry out this section $1,000,000 for fiscal year 1995. 
Any amounts made available pursuant to this subsection shall remain 
available until expended.
    (i) Sunset.--The Commission shall terminate upon the expiration of 
the 18-month period that begins upon the appointment of all of the 
members of the Commission under subsection (c).

SEC. 422. ACTION AND REPORT ON COOPERATIVE HOMEOWNERSHIP FOR LOW- AND 
              MODERATE-INCOME FAMILIES.

    (a) Review.--The Secretary of Housing and Urban Development, acting 
through the Assistant Secretary who is the Federal Housing 
Commissioner, shall review the report of The Urban Institute, dated May 
1994 and entitled ``Performance of HUD Subsidized Loans: Does 
Cooperative Housing Matter?''.
    (b) Action.--Not later than 9 months after the date of the 
enactment of this Act, the Secretary shall implement any 
recommendations made in the report referred to in subsection (a) that 
(1) the Secretary considers appropriate and feasible, (2) are within 
the jurisdiction of the Assistant Secretary referred to in subsection 
(a), and (3) the Secretary has authority under law to implement.
    (c) Report.--The Secretary shall submit a report to the Congress 
not later than 9 months after the date of the enactment of this Act, 
which shall--
            (1) evaluate the report referred to in subsection (a);
            (2) describe any action taken under subsection (b);
            (3) identify and proposes the elimination of any Federal 
        housing policies or programs that, in the determination of the 
        Secretary, inhibit the development of cooperative homeownership 
        for low- and moderate-income families; and
            (4) recommend any legislative action necessary to eliminate 
        the policies or programs identified under paragraph (3).

SEC. 423. STUDY OF ACTIVITY OF PRIVATE MORTGAGE BANKERS AND INSURERS.

    (a) Study.--The Secretary of Housing and Urban Development shall 
conduct a study to determine the patterns of lending and insurance 
activity of private mortgage lenders and private mortgage insurers, 
respectively. The study shall be designed to determine--
            (1) the geographical areas in which properties are located 
        for which loans are made by private mortgage lenders and the 
        characteristics of such areas;
            (2) the extent of lending activity by private mortgage 
        lenders, in terms of number of loans and principal amount, in 
        areas having a low median income, a moderate median income, and 
        other areas;
            (3) the types of loans made by private mortgage lenders, 
        and the extent of lending activity, in each of the areas 
        described in paragraph (2), which shall include the types and 
        extent of any lending activity made in connection with economic 
        development of low- and moderate-income areas;
            (4) the geographical areas in which properties are located 
        for which mortgage insurance is provided by private mortgage 
        insurers and the characteristics of such areas;
            (5) the extent of insurance activity by private mortgage 
        insurers, in terms of number of loans insured and principal 
        amount insured, in areas having a low median income, a moderate 
        median income, and other areas; and
            (6) the types of loans insured and extent of insurance 
        activity by private mortgage insurers in each of the areas 
        described in paragraph (5), which shall include the types and 
        extent of any insurance activity made in connection with 
        mortgages or loans for economic development activity in low- 
        and moderate-income areas.
    (b) Report.--The Secretary shall submit a report to the Congress 
describing the results of the study under this section not later than 
the expiration of the 6-month period beginning on the date of the 
enactment of this Act.
    (c) Definitions.--For purposes of this section--
            (1) the term ``private mortgage insurer'' means a person 
        who provides insurance against the nonpayment of, or default 
        on, a mortgage or loan for residential or commercial property 
        that is not insurance made available under the National Housing 
        Act, title 38 of the United States Code, or title V of the 
        Housing Act of 1949; and
            (2) the term ``private mortgage lender'' means any lender 
        that is not subject to the supervision, approval, regulation, 
        or insuring of the Board of Governors of the Federal Reserve 
        System, the Federal Deposit Insurance Corporation, the 
        Comptroller of the Currency, the Office of Thrift Supervision, 
        the National Credit Union Administration, or any other Federal 
        agency that regulates lending activity. The term does not 
        include institutions engage primarily in the purchase of 
        mortgage loans.

             Subtitle B--Secondary Mortgage Market Programs

SEC. 441. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-BACKED SECURITIES.

    Section 306(g)(2) of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1721(g)(2)) is amended to read as follows:
    ``(2) Notwithstanding any other provision of law and subject only 
to the absence of qualified requests for guarantees, to the authority 
provided in this subsection, and to the extent of or in such amounts as 
any funding limitation approved in appropriation Acts, the Association 
shall enter into commitments to issue guarantees under this subsection 
in an aggregate amount of $130,000,000,000 during fiscal year 1995 and 
$130,000,000,000 during fiscal year 1996. There are authorized to be 
appropriated to cover the costs (as such term is defined in section 502 
of the Congressional Budget Act of 1974) of guarantees issued under 
this Act by the Association such sums as may be necessary for each of 
fiscal years 1995 and 1996.''.

SEC. 442. ASSESSMENT COLLECTION DATES FOR OFFICE OF FEDERAL HOUSING 
              ENTERPRISE OVERSIGHT.

    Section 1316(b) of the Housing and Community Development Act of 
1992 (12 U.S.C. 4516(b)) is amended by striking paragraph (2) and 
inserting the following new paragraph:
            ``(2) Timing of payment.--The annual assessment shall be 
        payable semiannually for each fiscal year, on October 1st and 
        April 1st.''.

                 Subtitle C--Emergency Mortgage Relief

SEC. 461. AMENDMENTS TO EMERGENCY HOMEOWNERS' RELIEF ACT.

    (a) Findings.--Section 102(a) of the Emergency Homeowners' Relief 
Act (12 U.S.C. 2701(a)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) certain homeowners in the United States are 
        encountering severe economic hardships as a result of 
        unemployment or a reduction in income;'';
            (2) in paragraph (2), by striking ``adverse economic 
        conditions'' and inserting ``economic hardships''; and
            (3) in paragraph (3), by striking ``economic conditions'' 
        and inserting ``their economic conditions''.
    (b) Mortgages Eligible for Assistance.--Section 103 of the 
Emergency Homeowners' Relief Act (12 U.S.C. 2702) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6)--
                    (A) by inserting ``a 1- to 4-family residence that 
                is'' after ``is''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(7) the delinquency for which the holder of the mortgage 
        intends to foreclose commenced after the date of the enactment 
        of the Housing and Community Development Act of 1994.''.
    (c) Authorization of Appropriations.--Section 109(a) of the 
Emergency Homeowners' Relief Act (12 U.S.C. 2708(a)) is amended by 
striking ``, except that'' and all that follows through 
``$500,000,000'' and inserting ``for fiscal years 1995 and 1996''.
    (d) Expiration Date.--Section 109(b) of the Emergency Homeowners' 
Relief Act (12 U.S.C. 2708(b)) is amended by striking ``September 30, 
1977'' and inserting ``September 30, 1996''.
    (e) Notification.--Section 110 of the Emergency Homeowners' Relief 
Act (12 U.S.C. 2709) is amended--
            (1) in paragraph (1) of the 1st sentence--
                    (A) by striking ``October 1, 1977'' and inserting 
                ``September 30, 1996''; and
                    (B) by inserting ``single family'' before 
                ``residential'';
            (2) in paragraph (2) of the 1st sentence, by striking 
        ``until one year from the date of the enactment of this title'' 
        and inserting ``during fiscal years 1995 and 1996''; and
            (3) in the 2d sentence, by striking ``Federal Home Loan 
        Bank Board, the Federal Savings and Loan Insurance 
        Corporation'' and inserting ``Office of Thrift Supervision''.
    (f) Reports.--Section 111 of the Emergency Homeowners' Relief Act 
(12 U.S.C. 2710) is amended--
            (1) by striking ``Within'' and all that follows through 
        ``Congress on'' and inserting the following: ``For fiscal year 
        1995 and each fiscal year thereafter that begins before the 
        date in section 109(b), the Secretary shall submit a report 
        under this section to the Congress. The report for a fiscal 
        year shall be submitted not later than 60 days after the end of 
        the fiscal year and shall describe'';
            (2) by striking ``purposes'' and inserting ``purpose'';
            (3) by inserting ``and'' before ``(4)''; and
            (4) by striking ``; and (5)'' and all that follows and 
        inserting a period.

    Subtitle D--Nonjudicial Foreclosure of Defaulted Single Family 
                               Mortgages

SEC. 481. SHORT TITLE.

    This subtitle may be cited as the ``Single Family Mortgage 
Foreclosure Act of 1994''.

SEC. 482. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) disparate State laws under which mortgages are 
        foreclosed on behalf of the Secretary of Housing and Urban 
        Development covering one- to four-family residential properties 
        burden certain programs administered by the Secretary, increase 
        the costs of collecting these obligations, and cause detriment 
        to the community generally;
            (2) long periods to complete the foreclosure of these 
        mortgages under certain State laws lead to deterioration in the 
        condition of the properties involved; necessitate substantial 
        Federal holding expenditures; increase the risk of vandalism, 
        fire loss, depreciation, damage, and waste with respect to the 
        properties; and adversely affect the neighborhoods in which the 
        properties are located;
            (3) these conditions seriously impair the Secretary's 
        ability to protect the Federal financial interest in the 
        affected properties and frustrate attainment of the objectives 
        of the underlying Federal program authority;
            (4) the availability of a uniform and more expeditious 
        procedure, with no right of redemption in the mortgagor or 
        others, for the foreclosure of these mortgages by the Secretary 
        will tend to ameliorate these conditions; and
            (5) providing the Secretary with a nonjudicial foreclosure 
        procedure will reduce unnecessary litigation by removing many 
        foreclosures from the courts where they contribute to 
        overcrowded calendars.
    (b) Purpose.--The purpose of this subtitle is to create a uniform 
Federal foreclosure remedy for single family mortgages that (1) are 
held by the Secretary of Housing and Urban Development pursuant to 
title I or title II of the National Housing Act or (2) secure loans 
obligated by the Secretary under section 312 of the Housing Act of 
1964.

SEC. 483. DEFINITIONS.

    As used in this subtitle--
            (1) the term ``bona fide purchaser'' means a purchaser for 
        value in good faith and without notice of any adverse claim, 
        who will, therefore, acquire the security property free of any 
        adverse claim;
            (2) the term ``mortgage'' means a deed of trust, mortgage, 
        deed to secure debt, security agreement, or any other form of 
        instrument under which any interest in property, real, personal 
        or mixed, or any interest in property including leaseholds, 
        life estates, reversionary interests, and any other estates 
        under applicable State law, is conveyed in trust, mortgaged, 
        encumbered, pledged, or otherwise rendered subject to a lien 
        for the purpose of securing the payment of money or the 
        performance of an obligation;
            (3) the term ``single family mortgage'' means a mortgage 
        that covers property on which there is located a one- to four-
        family residence, which mortgage--
                    (A) is held by the Secretary pursuant to title I or 
                title II of the National Housing Act, or
                    (B) secures a loan obligated by the Secretary under 
                section 312 of the Housing Act of 1964, as it existed 
                before its repeal by section 289 of the Cranston-
                Gonzalez National Affordable Housing Act (except that a 
                mortgage securing such a loan that covers property 
                containing non-residential space and a one- to four-
                family dwelling shall not be subject to this Act);
            (4) the term ``mortgage agreement'' means the note or debt 
        instrument and the mortgage instrument, deed of trust 
        instrument, trust deed, or instrument or instruments creating 
        the mortgage, including any instrument incorporated by 
        reference therein and any instrument or agreement amending or 
        modifying any of the foregoing;
            (5) the term ``mortgagor'' means the obligor, grantor, or 
        trustor named in the mortgage agreement and, unless the context 
        otherwise indicates, includes the current owner of record of 
        the security property whether or not personally liable on the 
        mortgage debt;
            (6) the term ``owner'' means any person who has an 
        ownership interest in property and includes heirs, devisees, 
        executors, administrators, and other personal representatives, 
        and trustees of testamentary trusts if the owner of record is 
        deceased;
            (7) the term ``person'' includes any individual, group of 
        individuals, association, partnership, corporation, or 
        organization;
            (8) the terms ``record'' and ``recorded'' include 
        ``register'' and ``registered'' in the instance of registered 
        land;
            (9) the term ``security property'' means the property 
        (real, personal or mixed) or an interest in property (including 
        leaseholds, life estates, reversionary interests, and any other 
        estates under applicable State law), together with fixtures and 
        other interests subject to the lien of the mortgage under 
        applicable State law;
            (10) the term ``State'' means the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, American Samoa, the 
        Northern Mariana Islands, the Trust Territory of the Pacific 
        Islands, and Indian tribes as defined by the Secretary;
            (11) the term ``county'' means county as defined in section 
        2 of title I, United States Code; and
            (12) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development.

SEC. 484. APPLICABILITY.

    Single family mortgages encumbering real estate located in any 
State may be foreclosed by the Secretary in accordance with this 
subtitle, or pursuant to other foreclosure procedures available, at the 
option of the Secretary.

SEC. 485. DESIGNATION OF FORECLOSURE COMMISSIONER.

    A foreclosure commissioner or commissioners designated pursuant to 
this subtitle shall have a nonjudicial power of sale as provided in 
this subtitle. Where the Secretary wishes to foreclose upon a single 
family mortgage, the Secretary may designate a foreclosure commissioner 
and, with or without cause, may designate a substitute foreclosure 
commissioner to replace a previously designated foreclosure 
commissioner, by executing a duly acknowledged, written designation 
stating the name and business or residential address of the 
commissioner or substitute commissioner. The designation shall be 
effective upon execution. The foreclosure commissioner, if a natural 
person, shall be a resident of the State in which the security property 
is located and, if not a natural person, the foreclosure commissioner 
must be duly authorized to transact business under the laws of the 
State in which the security property is located. The foreclosure 
commissioner shall be a person who is responsible, financially sound, 
and competent to conduct the foreclosure. More than one foreclosure 
commissioner may be designated. If a natural person is designated as 
foreclosure commissioner or substitute foreclosure commissioner, such 
person shall be designated by name, except that where such person is 
designated in his or her capacity as an official or employee of a 
government or corporate entity, such person may be designated by his or 
her unique title or position instead of by name.

SEC. 486. PREREQUISITES TO FORECLOSURE.

    Foreclosure by the Secretary under this subtitle of a single family 
mortgage may be commenced, as provided in section 488, upon the breach 
of a covenant or condition in the mortgage agreement for which 
foreclosure is authorized under the mortgage, except that no such 
foreclosure may be commenced unless any previously pending proceeding, 
judicial or nonjudicial, separately instituted by the Secretary to 
foreclose the mortgage other than under this subtitle has been 
withdrawn, dismissed, or otherwise terminated. No such separately 
instituted foreclosure proceeding on the mortgage shall be instituted 
by the Secretary during the pendency of foreclosure pursuant to this 
subtitle. Nothing in this subtitle shall preclude the Secretary from 
enforcing any right, other than foreclosure, under applicable Federal 
or State law, including any right to obtain a monetary judgment. 
Nothing in this subtitle shall preclude the Secretary from foreclosing 
under this subtitle where the Secretary has obtained or is seeking any 
other remedy available pursuant to Federal or State law or under the 
mortgage agreement, including, but not limited to, the appointment of a 
receiver, mortgagee-in-possession status, or relief under an assignment 
of rents.

SEC. 487. NOTICE OF FORECLOSURE SALE.

    The notice of foreclosure sale to be served in accordance with this 
subtitle shall be subscribed with the name and address of the 
foreclosure commissioner and the date on which subscribed, and shall 
set forth the following information:
            (1) The names of the Secretary, the original mortgagee (if 
        other than the Secretary), and the original mortgagor.
            (2) The street address or a description of the location of 
        the security property, and a description of the security 
        property, sufficient to identify the property to be sold.
            (3) The date of the mortgage, the office in which the 
        mortgage is recorded, and the liber and folio or other 
        description of the location of recordation of the mortgage.
            (4) The failure to make payment, including the due date of 
        the earliest installment payment remaining wholly unpaid as of 
        the date the notice is subscribed, or the description of other 
        default or defaults upon which foreclosure is based, and the 
        acceleration of the secured indebtedness.
            (5) The date, time, and place of the foreclosure sale.
            (6) A statement that the foreclosure is being conducted 
        pursuant to this subtitle.
            (7) The types of costs, if any, to be paid by the purchaser 
        upon transfer of title.
            (8) The amount and method of deposit to be required at the 
        foreclosure sale (except that no deposit shall be required of 
        the Secretary), the time and method of payment of the balance 
        of the foreclosure purchase price, and other appropriate terms 
        of sale.

SEC. 488. COMMENCEMENT OF FORECLOSURE.

    (a) Request.--If the Secretary as holder of a single family 
mortgage determines that the prerequisites to foreclosure set forth in 
section 486 are satisfied, the Secretary may request the foreclosure 
commissioner to commence foreclosure of a single family mortgage. Upon 
such request, the foreclosure commissioner shall commence foreclosure 
of the mortgage, by commencing service of a notice of default and 
foreclosure sale in accordance with section 489.
    (b) Substitute Commissioner.--After commencement of a foreclosure 
under this subtitle, the Secretary may designate a substitute 
foreclosure commissioner at any time before the time of foreclosure 
sale, and the foreclosure shall continue without prejudice, unless the 
substitute commissioner, in his or her sole discretion, finds that 
continuation of the foreclosure sale will unfairly affect the interests 
of the mortgagor. If the substitute commissioner makes such a finding, 
the substitute commissioner shall cancel the foreclosure sale, or 
adjourn such sale in the manner provided in section 491(c). Upon 
designation of a substitute foreclosure commissioner, a copy of the 
written notice of such designation referred to in section 485 shall be 
served (1) by mail, as provided in such section 489 (except that the 
minimum time periods between mailing and the date of foreclosure sale 
prescribed in such section shall not apply), or (2) in any other manner 
which, in the substitute commissioner's sole discretion, is conducive 
to achieving timely notice of such substitution.

SEC. 489. SERVICE OF NOTICE OF FORECLOSURE.

    The foreclosure commissioner shall serve the notice of foreclosure 
sale provided for in section 487 upon the following persons and in the 
following manner, and no additional notice shall be required to be 
served, notwithstanding any notice requirements of any State or local 
law:
            (1) Timing.--At least 45 days prior to the date of the 
        foreclosure sale, the notice of foreclosure sale required by 
        section 488 of this subtitle shall be filed in the manner 
        authorized for filing a notice of an action concerning real 
        property according to the law of the State where the security 
        property is located or, if none, in the manner authorized by 
        section 3201 of title 28, United States Code.
            (2) Notice by mail.--The notice of foreclosure sale shall 
        be sent by certified or registered mail, postage prepaid and 
        return receipt requested to the following:
                    (A) The current security property owner of record, 
                as the record exists 60 days before the date originally 
                set for foreclosure sale, whether or not the notice 
                describes a sale adjourned as provided in this 
                subtitle.
                    (B) All mortgagors of record or other persons who 
                appear of record or in the mortgage agreement to be 
                liable for part or all of the mortgage debt, as the 
                record exists 60 days before the date originally set 
                for foreclosure sale, whether or not the notice 
                describes a sale adjourned as provided in this 
                subtitle, except any such mortgagors or persons who 
                have been released.
                    (C) All dwelling units in the security property, 
                whether or not the notice describes a sale adjourned as 
                provided in this subtitle.
                    (D) All persons holding liens of record upon the 
                security property, as the record exists 60 days before 
                the date originally set for foreclosure sale, whether 
                or not the notice describes a sale adjourned as 
                provided in this subtitle.
        Notice under subparagraphs (A) and (B) of this paragraph shall 
        be mailed at least 45 days before the date of foreclosure sale, 
        and shall be mailed to the owner or mortgagor at the last known 
        address of the owner or mortgagor, or, if none, to the address 
        of the security property, or, at the discretion of the 
        foreclosure commissioner, to any other address believed to be 
        that of such owner or mortgagor. Notice under subparagraph (C) 
        of this paragraph shall be mailed at least 45 days before the 
        date of foreclosure sale. If the names of the occupants of the 
        security property are not known to the Secretary, or the 
        security property has more than one dwelling, the notice shall 
        be posted at the security property at least 45 days prior to 
        the foreclosure sale. Notice under subparagraph (D) of this 
        paragraph shall be mailed at least 45 days before the date of 
        foreclosure sale, and shall be mailed to each such lienholder's 
        address as stated of record or, at the discretion of the 
        foreclosure commissioner, to any other address believed to be 
        that of such lienholder. Notice by mail pursuant to this 
        subsection or section 488(b) shall be deemed duly given upon 
        mailing, whether or not received by the addressee and whether 
        or not a return receipt is received or the letter is returned.
            (3) Publication.--A copy of the notice of default and 
        foreclosure sale shall be published, as provided herein, once a 
        week during three successive calendar weeks before the sale 
        date. Such publication shall be in a newspaper or newspapers 
        having general circulation in the county or counties in which 
        the security property being sold is located. To the extent 
        practicable, the newspaper or newspapers chosen shall be a 
        newspaper or newspapers, if any is available, having 
        circulation conducive to achieving notice of foreclosure by 
        publication. A legal newspaper that is accepted as a newspaper 
        of legal record in the county or counties in which the security 
        property being sold is located shall be considered a newspaper 
        having general circulation for the purposes of this paragraph. 
        Should there be no newspaper published at least weekly which 
        has a general circulation in one of the counties in which the 
        security property being sold is located, copies of the notice 
        of default and foreclosure sale shall be posted at the 
        courthouse of any county or counties in which the security 
        property is located and at the place where the sale is to be 
        held at least 21 days before the date of sale.

SEC. 490. PRESALE REINSTATEMENT.

    (a) In General.--Except as provided in sections 488(b) and 491(c), 
the foreclosure commissioner shall withdraw the security property from 
foreclosure and cancel the foreclosure sale only if--
            (1) the Secretary so directs the commissioner prior to or 
        at the time of sale;
            (2) the commissioner finds, upon application of the 
        mortgagor at least three days before the date of sale, that the 
        default or defaults upon which the foreclosure is based did not 
        exist at the time of service of the notice of default and 
        foreclosure sale; or
            (3)(A) in the case of a foreclosure involving a monetary 
        default, there is tendered to the foreclosure commissioner 
        before public auction is completed the entire amount of 
        principal and interest which would be due if payments under the 
        mortgage had not been accelerated;
            (B) in the case of a foreclosure involving a nonmonetary 
        default, the foreclosure commissioner, upon application of the 
        mortgagor before the date of foreclosure sale, finds that such 
        default is cured; and
            (C) there is tendered to the foreclosure commissioner 
        before public auction is completed all amounts due under the 
        mortgage agreement (excluding additional amounts which would 
        have been due if mortgage payments had been accelerated), all 
        amounts of expenditures secured by the mortgage, and all costs 
        of foreclosure incurred for which payment from the proceeds of 
        foreclosure is provided in section 492, except that the 
        Secretary shall have discretion to refuse to cancel a 
        foreclosure pursuant to this paragraph if the current mortgagor 
        or owner of record has on one or more previous occasions caused 
        a foreclosure of the mortgage, commenced pursuant to this 
        subtitle or otherwise, to be canceled by curing a default.
    (b) Opportunity to Secretary.--Before withdrawing the security 
property from foreclosure in the circumstances described in subsection 
(a)(2) or (a)(3), the foreclosure commissioner shall afford the 
Secretary a reasonable opportunity to demonstrate why the security 
property should not be so withdrawn.
    (c) Effect on Mortgage.--In any case in which a foreclosure 
commenced under this subtitle is canceled, the mortgage shall continue 
in effect as though acceleration had not occurred.
    (d) Effect on Subsequent Foreclosure.--If the foreclosure 
commissioner cancels a foreclosure sale under this subtitle a new 
foreclosure may be subsequently commenced as provided in this subtitle.
    (e) Notice of Cancellation.--The foreclosure commissioner shall 
file a notice of cancellation in the same place and manner provided for 
filing the notice of foreclosure sale in section 489.

SEC. 491. CONDUCT OF SALE AND ADJOURNMENT.

    (a) Time and Location.--Foreclosure sale pursuant to this subtitle 
shall be at public auction, and shall be scheduled to begin between the 
hours of 9 a.m. and 4 p.m. local time. The foreclosure sale shall be 
held at a location specified in the notice of default and foreclosure 
sale, which shall be a location where foreclosure real estate auctions 
are customarily held in the county or one of the counties in which the 
property to be sold is located, or at a courthouse therein, or at or on 
the property to be sold. Sale of security property situated in two or 
more counties may be held in any one of the counties in which any part 
of the security property is situated. The foreclosure commissioner may 
designate the order in which multiple tracts of security are sold.
    (b) Sale Procedures.--The foreclosure commissioner shall conduct 
the foreclosure sale in accordance with the provisions of this subtitle 
and in a manner fair to both the mortgagor and the Secretary. Written 
one-price sealed bids shall be accepted by the foreclosure commissioner 
from the Secretary and other persons for entry by announcement by the 
commissioner at the sale. The Secretary and any other person may bid at 
the foreclosure sale, including the Secretary or any other person who 
has submitted a written one-price bid. The foreclosure commissioner or 
any relative, related business entity, or employee of such commissioner 
or entity shall not be permitted to bid in any manner on the security 
property subject to foreclosure sale, except that the foreclosure 
commissioner or an auctioneer may be directed by the Secretary to enter 
a bid on the Secretary's behalf. The foreclosure commissioner may serve 
as auctioneer, or, in accordance with regulations of the Secretary, may 
employ an auctioneer to be paid from the commission provided for in 
section 492(5).
    (c) Adjournment or Cancellation.--The foreclosure commissioner 
shall have discretion, prior to or at the time of sale to adjourn or 
cancel the foreclosure sale if the commissioner determines, in the 
commissioner's discretion, that circumstances are not conducive to a 
sale which is fair to the mortgagor and the Secretary or that 
additional time is necessary to determine whether the security property 
should be withdrawn from foreclosure as provided in section 490. The 
foreclosure commissioner may adjourn a sale to a later hour the same 
day by announcing or posting the new time and place of the foreclosure 
sale, or may adjourn the foreclosure sale for not less than 9 nor more 
than 31 days, in which case the commissioner shall serve a notice of 
default and foreclosure sale revised to recite that the foreclosure 
sale has been adjourned to a specified date and to include any 
corrections the foreclosure commissioner deems appropriate. Such notice 
shall be served by publication and mailing in accordance with section 
489, except that publication may be made on any of 3 separate days 
before the revised date of foreclosure sale, and mailing may be made at 
any time at least 7 days before the date to which the foreclosure sale 
has been adjourned.
    (d) Deposit.--The foreclosure commissioner may require a bidder to 
make a cash deposit in an amount or percentage set by him and stated in 
the notice of foreclosure sale before the bid is accepted. A successful 
bidder at the foreclosure sale who fails to comply with the terms of 
the sale may be required to forfeit the cash deposit or, at the 
election of the foreclosure commissioner after consultation with the 
Secretary, shall be liable to the agency for any costs incurred by the 
agency as a result of such failure.
    (e) Presumption.--Any foreclosure sale held in accordance with this 
subtitle shall be conclusively presumed to have been conducted in a 
legal, fair, and reasonable manner. The sale price shall be 
conclusively presumed to be reasonable and equal to the fair market 
value of the property.

SEC. 492. FORECLOSURE COSTS.

    The following foreclosure costs shall be paid from the sale 
proceeds before satisfaction of any other claim to such sale proceeds:
            (1) Necessary advertising costs and postage incurred in 
        giving notice pursuant to sections 489 and 491.
            (2) Mileage for posting notices and for the foreclosure 
        commissioner's or auctioneer's attendance at the sale as 
        provided in section 1921 of title 28, United States Code, for 
        mileage by the most reasonable road distance.
            (3) Reasonable and necessary costs actually incurred in 
        connection with any necessary search of title and lien records.
            (4) Necessary out-of-pocket costs incurred by the 
        foreclosure commissioner to record documents.
            (5) A commission for the foreclosure commissioner other 
        than an employee of the United States for the conduct of the 
        foreclosure to the extent authorized by the Secretary.

SEC. 493. DISPOSITION OF SALE PROCEEDS.

    Money realized from a foreclosure sale shall be made available for 
obligation and expenditure--
            (1) first, to cover the costs of foreclosure provided for 
        in section 492;
            (2) then, to pay valid tax liens or assessments if required 
        by the notice of foreclosure sale;
            (3) then, to pay any liens recorded before the recording of 
        the mortgage which are required to be paid in conformity with 
        the terms of sale in the notice of foreclosure sale;
            (4) then, to service charges and advances for taxes, 
        assessments, and property insurance premiums;
            (5) then, to the interest;
            (6) then, to the principal balance secured by the mortgage 
        (including expenditures for the necessary protection, 
        preservation, and repair of the security property as authorized 
        under the mortgage agreement and interest thereon if provided 
        for in the mortgage agreement); and
            (7) then, to late charges.
Any surplus after payment of the foregoing shall be paid to holders of 
liens recorded after the mortgage in the order of priority under 
Federal law or the law of the State where the security property is 
located and then to the appropriate mortgagor. If the person to whom 
such surplus is to be paid cannot be located, or if the surplus 
available is insufficient to pay all claimants and the claimants cannot 
agree on the allocation of the surplus, or if any person claiming an 
interest in the mortgage proceeds does not agree that some or all of 
the sale proceeds should be paid to a claimant as provided in this 
section, that part of the sale proceeds in question may be deposited by 
the foreclosure commissioner with an appropriate official or court 
authorized under law to receive disputed funds in such circumstances. 
If such a procedure for the deposit of disputed funds is not available, 
and the foreclosure commissioner files a bill of interpleader or is 
sued as a stakeholder to determine entitlement to such funds, the 
foreclosure commissioner's necessary costs in taking or defending such 
action shall be deductible from the disputed funds.

SEC. 494. TRANSFER OF TITLE AND POSSESSION.

    (a) Delivery of Deed.--The foreclosure commissioner shall deliver a 
deed or deeds to the purchaser or purchasers without warranty or 
covenants to the purchaser or purchasers and obtain the balance of the 
purchase price in accordance with the terms of sale provided in the 
notice of default and foreclosure sale. Notwithstanding State law to 
the contrary, the commissioner's deed shall be a conveyance of 
property, and no judicial proceeding shall be required ancillary or 
supplementary to the procedures provided in this subtitle to assure the 
validity of the conveyance or confirmation of such conveyance.
    (b) Possession.--A purchaser at a foreclosure sale held pursuant to 
this subtitle shall be entitled to possession upon passage of title to 
the mortgaged property, subject to an interest or interests not barred 
under section 496. Any person remaining in possession after the passage 
of title shall be deemed a tenant at sufferance subject to eviction 
under local law.
    (c) Death of Purchaser.--If a purchaser dies before execution and 
delivery of the deed conveying the property to the purchaser, the 
foreclosure commissioner shall execute and deliver the deed to the 
representative of the purchaser's estate upon payment of the purchase 
price in accordance with the terms of sale. Such delivery to the 
representative of the purchaser's estate shall have the same effect as 
if accomplished during the lifetime of the purchaser.
    (d) Bona Fide Purchaser.--The purchaser of property under this 
subtitle shall be presumed to be a bona fide purchaser without notice 
of defects, if any, in the title conveyed to said purchaser if the 
purchaser would have been considered a bona fide purchaser without 
notice had the sale been made voluntarily and in person by the debtor.
    (e) Nullification of Right of Redemption.--There shall be no right 
of redemption, or right of possession based upon right of redemption, 
in the mortgagor or others subsequent to a foreclosure pursuant to this 
subtitle. Section 204(l) of the National Housing Act and section 701 of 
the Department of Housing and Urban Development Reform Act of 1989 
shall not apply to mortgages foreclosed under this subtitle.
    (f) Tax.--When conveyance is made to the Secretary, no tax shall be 
imposed or collected with respect to the foreclosure commissioner's 
deed, whether as a tax upon the instrument or upon the privilege of 
conveying or transferring title to the property. Failure to collect or 
pay a tax of the type and under the circumstances stated in the 
preceding sentence shall not be grounds for refusing to record such a 
deed, for failing to recognize such recordation as imparting notice, or 
for denying the enforcement of such a deed and its provisions in any 
State or Federal court.

SEC. 495. RECORD OF FORECLOSURE AND SALE.

    (a) Record.--To establish a sufficient record of foreclosure and 
sale, the foreclosure commissioner shall include in the recitals of the 
deed to the purchaser or prepare an affidavit or addendum to the deed 
stating--
            (1) the date, time and place of sale;
            (2) that the mortgage was held by the Secretary, the date 
        of the mortgage, the office in which the mortgage was recorded, 
        and the liber and folio or other description of the recordation 
        of the mortgage;
            (3) the particulars of the foreclosure commissioner's 
        service of notice of default and foreclosure sale in accordance 
        with sections 489 and 491;
            (4) the date and place of filing the notice of foreclosure 
        sale;
            (5) that the foreclosure was conducted in accordance with 
        the provisions of this subtitle and with the terms of the 
        notice of default and foreclosure sale; and
            (6) the sale amount.
    (b) Effect of Statements.--The statements set forth in subsection 
(a) shall be prima facie evidence of the truth of such recitals and 
statement of facts in any Federal or State court; and shall be a 
conclusive presumption in favor of bona fide purchasers and 
encumbrancers for value without notice. Encumbrancers for value include 
liens placed by lenders who provide the purchaser with purchase money 
in exchange for a security interest in the newly-conveyed property.
    (c) Recordation.--The deed executed by the foreclosure 
commissioner, the foreclosure commissioner's affidavit and any other 
instruments submitted for recordation in relation to the foreclosure of 
the security property under this subtitle shall be accepted for 
recordation by the registrar of deeds or other appropriate official of 
the county or counties in which the security property is located upon 
tendering of payment of the usual recording fees for such instruments 
without regard to the compliance of those instruments with local filing 
requirements.

SEC. 496. EFFECT OF SALE.

    A sale, made and conducted as prescribed in this subtitle to a bona 
fide purchaser, shall be an entire bar of all claims upon, or with 
respect to, the property sold, of each of the following persons:
            (1) Any person to whom the notice of foreclosure sale was 
        mailed as provided in this subtitle, and the heir, devisee, 
        executor, administrator, successor or assignee claiming under 
        any such person.
            (2) Any person claiming any interest in the property 
        subordinate to that of the mortgage, if such person had actual 
        knowledge of the sale.
            (3) Each person, claiming any interest in the property, 
        whose assignment, mortgage, or other conveyance was not duly 
        recorded or filed in the proper place for recording or filing, 
        or whose judgment or decree was not duly docketed or filed in 
        the proper place for docketing or filing, prior to the date on 
        which the notice of sale was first served by publication, as 
        required by section 489(2); and the executor, administrator, or 
        assignee of such a person.
            (4) Every other person claiming under a statutory lien or 
        encumbrance created subsequent to the recording or filing of 
        the mortgage being foreclosed, attaching to the title or 
        interest of any person designated in any of the foregoing 
        subsections of this section.

SEC. 497. COMPUTATION OF TIME.

    Periods of time provided for in this subtitle shall be calculated 
in consecutive calendar days including the day or days on which the 
actions or events occur or are to occur for which the period of time is 
provided and including the day on which an event occurs or is to occur 
from which the period is to be calculated.

SEC. 498. SEPARABILITY.

    If any clause, sentence, paragraph, or part of this subtitle shall, 
for any reason, be adjudged by a court of competent jurisdiction to be 
invalid or invalid as applied to a class of cases, such judgment shall 
not affect, impair, or invalidate the remainder thereof and of this 
subtitle, but shall be confined in its operation to the clause, 
sentence, paragraph, or part thereof directly involved in the 
controversy in which such judgment shall have been rendered.

SEC. 499. DEFICIENCY JUDGMENT.

    (a) In General.--If after deducting the disbursements provided for 
in section 493 of this subtitle, the price at which the security 
property is sold at a foreclosure sale is less than the unpaid balance 
of the debt secured by the security property, resulting in a 
deficiency, the Secretary may refer the matter to the Attorney General 
who may commence an action or actions against any or all debtors to 
recover the deficiency, unless specifically prohibited by the mortgage. 
The United States is also entitled to recover any amount authorized by 
section 3011 of title 28, United States Code, and costs of the action.
    (b) Limitation.--Any action commenced to recover the deficiency 
must be brought within 6 years of the last sale of the security 
property.

                         TITLE V--RURAL HOUSING

SEC. 501. PROGRAM AUTHORIZATIONS.

    (a) Insurance and Guarantee Authority.--Section 513(a) of the 
Housing Act of 1949 (42 U.S.C. 1483(a)) is amended to read as follows:
    ``(a) Insurance and Guarantee Authority.--
            ``(1) In general.--The Secretary may, to the extent 
        approved in appropriation Acts, insure and guarantee loans 
        under this title during fiscal years 1995 and 1996, in 
        aggregate amounts not to exceed $3,231,103,950 and 
        $3,360,037,069, respectively, as follows:
                    ``(A) For insured or guaranteed loans under section 
                502 on behalf of low-income borrowers receiving 
                assistance under section 521(a)(1), $1,802,500,000 for 
                fiscal year 1995 and $1,856,575,000 for fiscal year 
                1996.
                    ``(B) For guaranteed loans under section 502(h) on 
                behalf of low- and moderate-income borrowers, 
                $772,500,000 for fiscal year 1995 and $795,675,000 for 
                fiscal year 1996.
                    ``(C) For loans under section 504, $36,050,000 for 
                fiscal year 1995 and $37,131,500 for fiscal year 1996.
                    ``(D) For insured loans under section 514, 
                $18,053,950 for fiscal year 1995 and $18,595,569 for 
                fiscal year 1996.
                    ``(E) For insured loans under section 515, 
                $600,000,000 for fiscal year 1995 and $650,000,000 for 
                fiscal year 1996.
                    ``(F) For loans under section 523(b)(1)(B), 
                $1,000,000 for fiscal year 1995 and $1,030,000 for 
                fiscal year 1996.
                    ``(G) For site loans under section 524, $1,000,000 
                for fiscal year 1995 and $1,030,000 for fiscal year 
                1996.
            ``(2) Limitation on use.--Notwithstanding any other 
        provision of law, insured or guaranteed loan authority in this 
        title for any fiscal year shall not be transferred or used for 
        any purpose not specified in this title.''.
    (b) Authorization of Appropriations.--Section 513(b) of the Housing 
Act of 1949 (42 U.S.C. 1483(b)) is amended to read as follows:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996, and to remain available 
until expended, the following amounts:
            ``(1) For grants under section 502(c)(5)(C)(i), $10,000,000 
        for fiscal year 1995, and $10,000,000 for fiscal year 1996.
            ``(2) For grants under section 504, $31,000,000 for fiscal 
        year 1995 and $31,930,000 for fiscal year 1996.
            ``(3) For purposes of section 509(c), $1,000,000 for fiscal 
        year 1995 and $1,030,000 for fiscal year 1996.
            ``(4) For project preparation grants under section 
        509(f)(6), $5,688,278 for fiscal year 1995 and $5,858,926 for 
        fiscal year 1996.
            ``(5) In fiscal years 1995 and 1996, such sums as may be 
        necessary to meet payments on notes or other obligations issued 
        by the Secretary under section 511 equal to--
                    ``(A) the aggregate of the contributions made by 
                the Secretary in the form of credits on principal due 
                on loans made pursuant to section 503; and
                    ``(B) the interest due on a similar sum represented 
                by notes or other obligations issued by the Secretary.
            ``(6) For grants for service coordinators under section 
        515(y), $1,073,260 for fiscal year 1995 and $1,105,458 for 
        fiscal year 1996.
            ``(7) For financial assistance under section 516--
                    ``(A) for low-rent housing and related facilities 
                for domestic farm labor under subsections (a) through 
                (j) of such section, $15,000,000 for fiscal year 1995 
                and $18,000,000 for fiscal year 1996; and
                    ``(B) for housing for rural homeless and migrant 
                farmworkers under subsection (k) of such section, 
                $10,269,230 for fiscal year 1995 and $11,407,307 for 
                fiscal year 1996.
            ``(8) For grants under section 523(f), $14,918,314 for 
        fiscal year 1995 and $15,365,863 for fiscal year 1996.
            ``(9) For grants under section 533, $33,056,408 for fiscal 
        year 1993 and $34,048,100 for fiscal year 1994.
            ``(10) For grants under section 538, $10,000,000 for fiscal 
        year 1995, which shall remain available until the end of fiscal 
        year 1997.
            ``(11) For assistance under section 539, $10,000,000 for 
        fiscal year 1995 and $12,000,000 for fiscal year 1996.''.
    (c) Rental Assistance Payment Contracts.--Section 513(c) of the 
Housing Act of 1949 (42 U.S.C. 1483(c)(1)) is amended by striking 
``(c)'' and all that follows through the end of paragraph (1) and 
inserting the following:
    ``(c) Rental and Operating Assistance.--(1) The Secretary, to the 
extent approved in appropriations Acts for fiscal years 1995 and 1996, 
may enter into rental assistance payment contracts under section 
521(a)(2)(A) and contracts for operating assistance under section 
521(a)(5), aggregating $454,079,620 for fiscal year 1995 and 
$467,702,009 for fiscal year 1996.''.
    (d) Supplemental Rental Assistance Payment Contracts.--Section 
513(d) of the Housing Act of 1949 (42 U.S.C. 1483(d)) is amended to 
read as follows:
    ``(d) Supplemental Rental Assistance Contracts.--The Secretary, to 
the extent approved in appropriations Acts for fiscal years 1995 and 
1996, may enter into 5-year supplemental rental assistance contracts 
under section 502(c)(5)(D) aggregating $13,070,160 for fiscal year 1995 
and $13,462,265 for fiscal year 1996.''.
    (e) Rural Housing Voucher Authority.--Section 513(e) of the Housing 
Act of 1949 (42 U.S.C. 1483(e)) is amended to read as follows:
    ``(e) Rural Housing Vouchers.--There are authorized to be 
appropriated for rural housing vouchers under section 542, $30,000,000 
for fiscal year 1995 and $40,000,000 for fiscal year 1996.''.
    (f) Rental Housing Loan Authority.--Section 515(b) of the Housing 
Act of 1949 (42 U.S.C. 1485(b)) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.

SEC. 502. ELIGIBILITY OF NATIVE AMERICANS FOR RURAL HOUSING PROGRAMS.

    Section 501(b)(6) of the Housing Act of 1949 (42 U.S.C. 1471(b)(6)) 
is amended by adding at the end the following new sentence: ``In any 
case in which assistance made available under this title may be 
provided to a State or State agency or in which a State or State agency 
is eligible to participate in a program or activity under this title, 
such assistance may also be provided to Indian tribes and tribal 
agencies and Indian tribes and tribal agencies shall be eligible to 
participate, respectively.''.

SEC. 503. ESCROW FUND.

    Section 501(e) of the Housing Act of 1949 (42 U.S.C. 1471(e)) is 
amended by striking the third and fourth sentences and inserting the 
following: ``The Secretary may establish in the Treasury of the United 
States an escrow fund for the deposit of such periodic payments. The 
Secretary may direct the Secretary of the Treasury to invest and 
reinvest amounts in the escrow fund in public debt securities with 
maturities suitable for the needs of the escrow fund and bearing 
interest at rates determined by the Secretary of the Treasury, taking 
into consideration the current average market yield on outstanding 
marketable obligations of the United States of comparable maturities. 
Any interest earned shall be credited to the escrow fund. The Secretary 
shall disburse amounts at the appropriate time or times for the 
purposes for which the amounts were escrowed in the fund. The interest 
rate to be paid on escrowed amounts shall be determined annually based 
on the interest earned less an amount not to exceed 1 percent which 
shall be used for expenses in carrying out the provisions of this 
title.''.

SEC. 504. SECTION 502 HOMEOWNERSHIP LOANS.

    (a) Remote Rural Areas.--Section 502(f) of the Housing Act of 1949 
(42 U.S.C. 1472(f)) is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraph (2) as paragraph (1); and
            (3) by adding at the end the following new paragraph:
            ``(2) Security.--In making a loan under this section for 
        housing located in a rural area that is a remote rural area 
        (which shall include tribal allotted or Indian trust land) 
        where the borrower resides or is employed, the Secretary shall 
        consider the actual replacement cost of the property and 
        structure for which the loan is made as adequate security for 
        the loan required under subsection (b).''.
    (b) Permanent Deferred Mortgage Program.--Section 502(g) of the 
Housing Act of 1949 (42 U.S.C. 1472(g)) is amended to read as follows:
    ``(g) Deferred Mortgage Program.--With respect to families or 
persons otherwise eligible for assistance under subsection (d) but 
having incomes below the amount determined to qualify for a loan under 
this section, the Secretary may defer mortgage payments beyond the 
amount affordable at 1 percent interest, taking into consideration 
income, taxes and insurance. Deferred mortgage payments shall be 
converted to payment status when the ability of the borrower to repay 
improves.''.
    (c) Reamortization.--Section 505 of the Housing Act of 1949 (42 
U.S.C. 1475) is amended--
            (1) in the section heading, by inserting ``, 
        reamortization,'' after ``moratorium'';
            (2) in subsection (a), by inserting before the last 
        sentence the following: ``The Secretary may not foreclose such 
        a mortgage securing such a loan upon which a moratorium has 
        been granted solely because the borrower does not have the 
        ability to repay the loan. Upon the expiration of a moratorium, 
        the Secretary shall enter into an agreement with the borrower 
        providing to the borrower such assistance as the Secretary is 
        authorized to provide under this title and may foreclose with 
        respect to the loan only if the borrower fails to make 3 
        monthly payments required under such agreement.'';
            (3) by redesignating subsection (b) as subsection (c); and
            (4) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Reamortization.--
            ``(1) Authority.--With respect to a loan made under section 
        502, after a moratorium under subsection (a) of this section 
        for the loan or at any other time the Secretary considers 
        appropriate, the Secretary may reamortize the outstanding 
        indebtedness, including principal and interest, under the loan 
        for a period not to exceed 38 years from the date of the making 
        of the loan, subject to the provisions of paragraph (2).
            ``(2) Graduated repayment agreement.--In reamortizing a 
        loan pursuant to paragraph (1), the Secretary may lower the 
        interest rate to the existing lending rate for loans under 
        section 502 or establish a schedule of payments under the loan 
        that provides, after the application of interest credit, for 
        payments in an amount less than the amount of the payments 
        originally provided for under the loan agreement for a period 
        not exceeding that required to amortize the loan over its term, 
        except that such period may not exceed 3 years.''.
    (d) Eligibility of Area.--Section 502 of the Housing Act of 1949 
(42 U.S.C. 1472) is amended by adding at the end the following new 
subsection:
    ``(i) Notwithstanding section 520, the Secretary may make loans 
under this section for properties in the Pinewest Subdivision, located 
in Gibsonville, North Carolina, in the same manner as provided under 
this section for properties in rural areas.''.

SEC. 505. LOAN GUARANTEES.

    Section 502(h)(11) of the Housing Act of 1949 (42 U.S.C. 
1472(h)(11)) is amended by adding at the end the following new 
sentence: ``The Secretary may not pool or reallocate any authority to 
guarantee loans under this section that was allocated for use in any 
State before August 1 of the fiscal year in which such authority was 
allocated.''.

SEC. 506. PREPAYMENT OF RURAL RENTAL HOUSING LOANS.

    (a) Technical Assistance Grants and Loans for Nonprofit and Public 
Agency Purchasers of Prepayment Properties.--Section 502(c)(5)(C)(i) of 
the Housing Act of 1949 (42 U.S.C. 1472(c)(5)(C)(i)) is amended to read 
as follows:
            ``(i) to the extent provided in appropriation Acts, make a 
        grant or predevelopment loan in an amount not exceeding $50,000 
        to the nonprofit organization or public agency whose offer to 
        purchase is accepted under this paragraph to cover reasonable 
        costs, as determined by the Secretary and not including the 
        purchase price, incurred by the organization or agency in 
        purchasing and assuming responsibilities for the housing and 
        related facilities involved, which may include costs for 
        pursuing acquisition, appraisals, financing fees, accounting, 
        administration, consultants, legal assistance, architectural 
        assistance, engineering assistance, application fees, overhead, 
        and other expenses;''.
    (b) Equity Takeout Loans.--
            (1) Authority and limitation.--Section 502(c)(4)(B)(iv) of 
        the Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(iv)) is 
        amended by inserting before the period at the end the 
        following: ``or under paragraphs (1) and (2) of section 514(j), 
        except that an equity loan referred to in this clause may not 
        be made available after the date of the enactment of the 
        Housing and Community Development Act of 1994 unless the 
        Secretary determines that the other incentives available under 
        this subparagraph are not adequate to provide a fair return on 
        the investment of the borrower, to prevent prepayment of the 
        loan insured under section 514 or 515, or to prevent the 
        displacement of tenants of the housing for which the loan was 
        made''.
            (2) Approval of assistance.--Subparagraph (C) of section 
        502(c)(4) of the Housing Act of 1949 is amended by striking the 
        matter preceding clause (i) and inserting the following:
    ``(C) Approval of Assistance.--The Secretary may approve assistance 
under subparagraph (B) for assisted housing only if the restrictive 
period has expired for any loan for the housing made or insured under 
section 514 or 515 pursuant to a contract entered into after December 
21, 1979, but before the date of the enactment of the Department of 
Housing and Urban Development Reform Act of 1989, and the Secretary 
determines that the combination of assistance provided--''.
            (3) Loan terms.--Section 514 of the Housing Act of 1949 (42 
        U.S.C. 1484) is amended by adding at the end the following new 
        subsection:
    ``(j) Equity Takeout Loans for Preservation of Low-Income 
Housing.--With respect to a loan insured under subsection (a), the 
Secretary may--
            ``(1) make or insure an equity loan in the form of a 
        supplemental loan for the purpose of equity takeout to the 
        owner of housing financed with a loan insured under this 
        section pursuant to a contract entered into before December 15, 
        1989, for the purpose of extending the affordability of the 
        housing for low-income families or persons and very low-income 
        families or persons for not less than 20 years, except that 
        such loan may not exceed 90 percent of the value of the equity 
        in the project as determined by the Secretary;
            ``(2) transfer and reamortize an existing loan in 
        connection with assistance provided under paragraph (1); and
            ``(3) make or insure a loan to enable a nonprofit 
        organization or public agency to make a purchase described in 
        section 502(c)(5).''.
            (4) Technical correction relating to section 515 housing.--
        Section 515(c)(1) of the Housing Act of 1949 (42 U.S.C. 
        1485(c)(1)) is amended by striking ``December 21, 1979'' and 
        inserting ``December 15, 1989''.
    (c) Phase-In of Rent Increases.--Section 502(c)(4)(B)(vi) of the 
Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(vi)) is amended by 
inserting before the period at the end the following: ``, except that 
any such increase in rents for current tenants (except for increases 
made necessary by increases in operating costs) shall (I) be phased in 
equally over a period of not less than 3 years, if such increase is 30 
percent or more, and (II) be limited to not more than 10 percent per 
year if such increase is more than 10 percent but less than 30 
percent''.
    (d) Treatment of Acceleration Upon Default.--Section 502 of the 
Housing Act of 1949 (42 U.S.C. 1472) is amended--
            (1) in subsection (b)(2), by inserting ``or any payment in 
        the case of acceleration of the amount due under such a loan 
        pursuant to any default,'' after ``515''; and
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by inserting before the 
                1st comma the following: ``, accept any payment 
                tendered in the case of acceleration of the amount due 
                pursuant to any default on'';
                    (B) in paragraph (1)(B), by inserting before the 
                1st comma the following: ``, accept any payment 
                tendered in the case of acceleration of the amount due 
                pursuant to any default on'';
                    (C) in paragraph (2)--
                            (i) by inserting after ``prepaid'' the 
                        following: ``, paid in full pursuant to 
                        acceleration of the amount due resulting from 
                        default,''; and
                            (ii) by inserting ``, payment,'' after 
                        ``prepayment'';
                    (D) in paragraph (4)(A), by inserting after 
                ``prepay,'' the following: ``accepting any payment 
                tendered in the case of acceleration of the amount due 
                pursuant to any default on,''; and
                    (E) in paragraph (5)--
                            (i) in subparagraph (A)(ii), by inserting 
                        after ``prepay,'' the following: ``accept the 
                        payment tendered in the case of acceleration of 
                        the amount due pursuant to default on,'';
                            (ii) in the 1st sentence of subparagraph 
                        (F), by inserting after ``prepay,'' the 
                        following: ``accept payment tendered in the 
                        case of acceleration of the amount due pursuant 
                        to default on,'';
                            (iii) in the 2d sentence of subparagraph 
                        (F), by inserting after ``prepay,'' the 
                        following: ``payment tendered in the case of 
                        acceleration of the amount due pursuant to 
                        default,'';
                            (iv) in the last sentence of subparagraph 
                        (F), by striking ``offers to prepay,'' and 
                        inserting the following: ``such offers to 
                        prepay, payments in the case of acceleration of 
                        the amount due pursuant to default,''; and
                            (v) in the matter in subparagraph (G) that 
                        precedes clause (i), by inserting after 
                        ``prepay,'' the following: ``any payment 
                        tendered in the case of acceleration of the 
                        amount due pursuant to default on,''.
    (e) Test for Allowable Prepayment.--Section 502(c)(5)(G)(ii) of the 
Housing Act of 1949 (42 U.S.C. 1472(c)(5)(G)(ii)) is amended to read as 
follows:
            ``(ii) the Secretary makes a written finding that--
                    ``(I) prepayment, payment in the case of 
                acceleration, or refinancing will not (a) materially 
                increase economic hardship for current tenants, and (b) 
                involuntarily displace current tenants (except for good 
                cause), where comparable and affordable housing is not 
                readily available at the time of displacement, 
                determined without regard to the availability of 
                Federal housing assistance that would address any such 
                hardship or involuntary displacement; and
                    ``(II) the supply of vacant, comparable housing is 
                sufficient to ensure that such prepayment will not 
                materially affect (a) the availability of decent, safe, 
                and sanitary housing affordable to low-income and very 
                low-income families or persons in the area that the 
                housing could reasonably be expected to serve, (b) the 
                ability of low-income and very low-income families or 
                persons to find affordable, decent, safe, and sanitary 
                housing near employment opportunities, or (c) the 
                housing opportunities of minorities in the community 
                within which the housing is located.''.

SEC. 507. DESIGNATION OF UNDERSERVED AREAS AND RESERVATION OF 
              ASSISTANCE.

    (a) Reauthorization and Set-Aside.--Section 509(f)(4) of the 
Housing Act of 1949 (42 U.S.C. 1479(f)(4)) is amended--
            (1) in subparagraph (A)--
                    (A) in the first sentence--
                            (i) by striking ``5.0 percent in fiscal 
                        years 1993 and 1994'' and inserting ``not less 
                        than 5 percent or more than 10 percent for each 
                        of fiscal years 1995 and 1996''; and
                            (ii) by striking ``514, 515, and 524'' and 
                        inserting ``and 515''; and
                    (B) in the second sentence, by striking ``sections 
                514 and 515'' and inserting ``section 515''; and
            (2) in subparagraph (B)(ii), by striking ``5 percent'' and 
        inserting ``10 percent''.
    (b) Poverty Level for Designation.--Section 509(f)(1) of the 
Housing Act of 1949 is amended--
            (1) in subparagraph (A), by striking ``20 percent'' and 
        inserting ``15 percent''; and
            (2) in subparagraph (B), by striking ``10 percent'' and 
        inserting ``5 percent''.
    (c) Poverty Level for Preference.--Section 509(f)(2) of the Housing 
Act of 1949 is amended--
            (1) in subparagraph (A), by striking ``28 percent'' and 
        inserting ``20 percent''; and
            (2) in subparagraph (B), by striking ``13 percent'' and 
        inserting ``7 percent''.
    (d) Additional Qualification as Underserved Area.--Section 
509(f)(1) of the Housing Act of 1949 is amended by inserting after 
subparagraph (B) the following new flush sentence:
        ``The Secretary may also designate a county or community as a 
        targeted underserved area if the Secretary determines that the 
        county or community has severe unmet housing needs, including 
        needs caused by severe economic and social dislocation such as 
        natural disasters, structural employment changes, or persistent 
        poverty, or has experienced long-term population and job 
        losses.''.
    (e) Geographical Diversity.--Section 509(f)(1) of the Housing Act 
of 1949 is amended by adding at the end the following: ``In designating 
targeted underserved areas under this paragraph for any fiscal year, 
the Secretary may not designate more than 10 counties and communities 
located in any single State or in the Commonwealth of Puerto Rico. If 
more than 10 counties and communities in any single State or the 
Commonwealth of Puerto Rico qualify under this paragraph for 
designation as an underserved area, the Secretary shall designate the 
counties and communities for which the sum of the percentages under 
subparagraphs (A) and (B) are the greatest.''.
    (f) 2-Year and 3-Year Designations.--Section 509(f) of the Housing 
Act of 1949 (42 U.S.C. 1479(f)) is amended--
            (1) in paragraph (1)--
                    (A) in the 1st sentence, by striking ``in each 
                fiscal year''; and
                    (B) in the 2d sentence, by striking ``year in'' and 
                inserting ``first year for'';
            (2) in paragraph (2)--
                    (A) in the first sentence, by striking ``paragraph 
                (4)'' and inserting ``paragraph (5)''; and
                    (B) by striking the last sentence;
            (3) in paragraph (3)(B), by striking ``paragraph (2)'' and 
        inserting ``paragraph (3)'';
            (4) in paragraph (4)(A), by striking ``paragraph (7)'' and 
        inserting ``paragraph (8)'';
            (5) by redesignating paragraphs (2) through (8) as 
        paragraphs (3) through (9), respectively; and
            (6) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Timing and duration of designations.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall redesignate the 
                targeted underserved areas under this subsection once 
                every 2 fiscal years and such designations shall remain 
                in effect for a period of 2 fiscal years. The first 
                such 2-year designation shall be made for fiscal years 
                1995 and 1996.
                    ``(B) Designations for indian areas.--The Secretary 
                shall ensure that, at all times, not less than 5 
                counties or communities that contain tribal allotted or 
                Indian trust land are included among the 100 counties 
                and communities designated as targeted underserved 
                areas. The Secretary shall redesignate the counties or 
                communities designated as a targeted underserved area 
                in compliance with this subparagraph once every 3 
                fiscal years and such designations shall remain in 
                effect for 3 fiscal years. The first such 3-year 
                designation shall be made for fiscal years 1995 through 
                1997. Upon designation, the Secretary shall specify any 
                targeted underserved area designated in compliance with 
                this subparagraph.''.

SEC. 508. ADMINISTRATIVE APPEALS.

    (a) Appeals.--Section 510(g) of the Housing Act of 1949 (42 U.S.C. 
1480(g)) is amended--
            (1) by inserting after ``termination and'' the following: 
        ``, in the case of any eviction not related to any drug-related 
        or criminal activity, nonpayment of rent, or activity that 
        threatens the health, safety, or right to peaceful enjoyment of 
        the premises by other residents,''; and
            (2) by inserting after ``reverse the decision'' the 
        following: ``and is mutually selected within a reasonable 
        period of time by the person adversely affected by the 
        reduction or termination of assistance and the person reducing 
        or terminating assistance''.
    (b) Attorneys.--Section 510(d)(1) of the Housing Act of 1949 is 
amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``or 515'' after ``502''; and
            (2) in subparagraph (C)(ii), by inserting ``with respect to 
        litigation under section 502,'' before ``representation''.

SEC. 509. SECTION 515 RURAL RENTAL HOUSING.

    (a) Loan Term.--Section 515(a)(2) of the Housing Act of 1949 (42 
U.S.C. 1485(a)(2)) is amended by inserting before the semicolon the 
following: ``, except that the Secretary may also make loans for a 
period of up to 30 years from the making of the loan''.
    (b) Development Cost.--Section 515(e)(4) of the Housing Act of 1949 
is amended by inserting ``franchise fees,'' after ``impact fees,''.
    (c) Limitation on Project Transfers.--Section 515 of the Housing 
Act of 1949 (42 U.S.C. 1485) is amended by inserting after subsection 
(g) the following new subsection:
    ``(h) Project Transfers.--After the date of the enactment of the 
Housing and Community Development Act of 1994, any interest in the 
ownership of a project for which a loan is made or insured under this 
section may be transferred only if the Secretary determines that such 
transfer would be in the best interests of the tenants of the housing 
for which the loan was made or insured and of the Federal 
Government.''.
    (d) Equity Loans.--Section 515(t) of the Housing Act of 1949 is 
amended--
            (1) by striking paragraphs (4) and (5); and
            (2) by redesignating paragraphs (6) through (8) as 
        paragraphs (4) through (6), respectively.
    (e) Set-Aside for Nonprofit Entities.--The first sentence of 
section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1)) is 
amended by striking ``fiscal years 1993 and 1994'' and inserting 
``fiscal years 1995 and 1996''.
    (f) Authority for Streamlined Mortgage Modifications.--Section 515 
of the Housing Act of 1949 (42 U.S.C. 1485) is amended by adding at the 
end the following new subsection:
    ``(aa) Mortgage Modifications.--
            ``(1) Purpose and authority.--In order to reduce the amount 
        of debt service payments and operating costs of borrowers under 
        loans made or insured under this section, reduce rents paid by 
        residents of housing financed with such loans, and reduce the 
        amount of rental assistance necessary for such housing, the 
        Secretary may refinance the outstanding principal obligation of 
        a loan made under this subsection in accordance with the 
        provisions applicable (at the time of such refinancing) to 
        loans made under this section that the Secretary determines are 
        appropriate for purposes of this subsection and the terms and 
        conditions of the original loan.
            ``(2) Use of housing.--Any terms of the original loan 
        relating to use of the housing and related facilities for the 
        purposes specified in this section shall continue to apply to 
        the housing in the same manner as if the loan were not modified 
        under this subsection.
            ``(3) Treatment of modified mortgage under prepayment 
        restrictions.--Any loan modified under this subsection shall be 
        considered a loan originally made under this section, for 
        purposes of the limitations under subsection (c) on prepayment 
        and refinancing under subsection (b)(3). For purposes of 
        determining the financial status of the loan or the housing 
        securing the loan, the Secretary may consider the terms of the 
        refinancing.
            ``(4) Terms.--The Secretary shall, by regulation, establish 
        any requirements and conditions the Secretary considers 
        appropriate to provide for refinancing under this subsection, 
        including any limitations on term of the refinancing loan.
            ``(5) Expedited procedure.--The Secretary shall establish 
        an expedited procedure for providing refinancing under this 
        subsection, which--
                    ``(A) shall not require application under the same 
                procedures applicable to loans made under subsection 
                (a); and
                    ``(B) shall take into consideration any information 
                obtained by the Secretary in making and servicing the 
                loan under subsection (a) for which refinancing under 
                this subsection is requested.''.

SEC. 510. OPTIONAL CONVERSION OF RENTAL ASSISTANCE PAYMENTS TO 
              OPERATING SUBSIDY FOR MIGRANT FARMWORKER PROJECTS.

    (a) In General.--Section 521(a) of the Housing Act of 1949 (42 
U.S.C. 1490a(a)) is amended by adding at the end the following new 
paragraph:
    ``(5) Operating Assistance for Migrant Farmworker Projects.--
            ``(A) Authority.--In the case of housing (and related 
        facilities) for migrant farmworkers provided or assisted with a 
        loan under section 514 or a grant under section 516, the 
        Secretary may, at the request of the owner of the project, use 
        amounts provided for rental assistance payments under paragraph 
        (2) to provide assistance for the costs of operating the 
        project. Any project assisted under this paragraph may not 
        receive rental assistance under paragraph (2).
            ``(B) Amount.--In any fiscal year, the assistance provided 
        under this paragraph for any project shall not exceed an amount 
        equal to 90 percent of the operating costs for the project for 
        the year, as determined by the Secretary. The amount of 
        assistance to be provided for a project under this paragraph 
        shall be an amount that makes units in the project available to 
        migrant farmworkers in the area of the project at rates 
        generally not exceeding 30 percent of the monthly adjusted 
        incomes of such farmworkers, based on the prevailing incomes of 
        such farmworkers in the area.
            ``(C) Submission of information.--The owner of a project 
        assisted under this paragraph shall be required to provide to 
        the Secretary, at least annually, a budget of operating 
        expenses and estimated rental income, which the Secretary shall 
        use to determine the amount of assistance for the project.
            ``(D) Definitions.--For purposes of this paragraph, the 
        following definitions shall apply:
                    ``(i) The term `migrant farmworker' shall have the 
                same meaning given the term in section 516(k)(7).
                    ``(ii) The term `operating cost' means expenses 
                incurred in operating a project, including expenses 
                for--
                            ``(I) administration, maintenance, repair, 
                        and security of the project;
                            ``(II) utilities, fuel, furnishings, and 
                        equipment for the project; and
                            ``(III) maintaining adequate reserve funds 
                        for the project.''.
    (b) Conforming Amendments.--Title V of the Housing Act of 1949 (42 
U.S.C. 1471 et seq.) is amended--
            (1) in section 502--
                    (A) in subsection (c)(1)(A)(i), by striking ``or 
                (a)(2)'' and inserting ``, (a)(2), or (5)'';
                    (B) in subsection (c)(4)(B)(ii), by inserting 
                before the period at the end the following: ``, or 
                additional assistance or an increase in assistance 
                provided under section 521(a)(5)'';
                    (C) in subsection (c)(4)(B)(iii), by inserting 
                before the period at the end the following: ``, or 
                current tenants of projects not assisted under section 
                521(a)(5)'';
                    (D) in subsection (c)(5)(C)(iii)--
                            (i) by striking the 2d comma; and
                            (ii) by inserting ``or any assistance 
                        payments received under section 521(a)(5),'' 
                        before ``with respect'';
                    (E) in subsection (c)(5)(D), by inserting before 
                the period at the end the following: ``or, in the case 
                of housing assisted under section 521(a)(5), does not 
                exceed the rents established for the project under such 
                section'';
            (2) in the second sentence of section 509(f)(5) (as 
        redesignated by the preceding provisions of this title), by 
        striking ``an amount of section 521 rental assistance'' and 
        inserting ``, from amounts available for assistance under 
        paragraphs (2) and (5) of section 521(a), an amount'';
            (3) in section 513(c)(2)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``or contracts for operating assistance under 
                section 521(a)(5)'' after ``521(a)(2)(A)'';
                    (B) in subparagraph (A), by inserting ``or 
                operating assistance contracts'' after ``contracts'';
                    (C) in subparagraph (B), by striking ``rental'' 
                each place it appears; and
                    (D) in subparagraph (C), by inserting ``or 
                operating assistance contracts'' after ``contracts'';
            (4) in section 521(a)(2)(B)--
                    (A) by inserting ``or paragraph (5)'' after ``this 
                paragraph''; and
                    (B) by striking ``which shall'' and all that 
                follows through the period at the end and inserting the 
                following: ``. The budget (and the income, in the case 
                of a project assisted under this paragraph) shall be 
                used to determine the amount of the assistance for each 
                project.'';
            (5) in section 521(c), by striking ``subsection (a)(2)'' 
        and inserting ``subsections (a)(2) and (a)(5)'';
            (6) in section 521(e), by inserting after ``recipient'' the 
        following: ``or any tenant in a project assisted under 
        subsection (a)(5)''; and
            (7) in section 530, by striking ``rental assistance 
        payments with respect to such project under section 
        521(a)(2)(A)'' and inserting ``assistance payments with respect 
        to such project under section 521(a)(2)(A) or 521(a)(5)''.

SEC. 511. DEFINITION OF RURAL AREA.

    The last sentence of section 520 of the Housing Act of 1949 (42 
U.S.C. 1490) is amended by striking ``city of'' and inserting ``cities 
of South Tucson, Arizona, and''.

SEC. 512. ELIGIBILITY OF MANUFACTURED HOME PARKS FOR BUILDING SITE 
              LOANS FOR COOPERATIVES.

    The first sentence of section 524(a)(1) of the Housing Act of 1949 
(42 U.S.C. 1490d(a)(1)) is amended by inserting before the period at 
the end the following: ``, and for the acquisition and development of 
manufactured home parks owned by nonprofit organizations for future 
ownership by low- and moderate-income residents of the park''.

SEC. 513. RURAL HOUSING ASSISTANCE TARGETING REPORT.

    Section 532(a) of the Housing Act of 1949 (42 U.S.C. 1490l) is 
amended by adding at the end the following new flush material:
``The Secretary shall submit a report to the Congress for each fiscal 
year describing the geographical distribution of housing for which 
eligible loan applications for assistance under this title are 
submitted in such year and for which amounts are obligated in such 
year. The report shall describe the areas in which the housing to be 
assisted under the applications is located, the number of eligible 
applications received for housing in such areas, the number of eligible 
applications for housing in such areas that were approved and funded 
and the amounts of such funding, the extent of the rural character of 
such areas, and any actions taken by the Secretary to comply with the 
requirement under paragraph (3). The report for a fiscal year shall be 
submitted not later than 180 days after the conclusion of such fiscal 
year.''.

SEC. 514. PRIORITY FOR RURAL HOUSING VOUCHER ASSISTANCE.

    Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended 
by adding at the end the following new subsection:
    ``(c) Priority.--
            ``(1) Requirement.--In providing assistance under this 
        section, the Secretary shall give preference to providing 
        assistance for rental housing that--
                    ``(A) is financed or assisted with a loan, 
                guarantee, insurance, or other assistance provided 
                under this title; and
                    ``(B)(i) has a significant number of units, as 
                determined by the Secretary, that have been vacant for 
                extended periods; or
                    ``(ii) is occupied by a significant number of 
                families, as determined by the Secretary, who pay as 
                rent for a unit in the housing an amount exceeding 30 
                percent of the family's monthly adjusted income.
            ``(2) Project-based assistance.--To provide assistance 
        according to the preference under paragraph (1), the Secretary 
        may enter into contracts with owners of housing described in 
        paragraph (1) to provide voucher assistance payments that are 
        attached to such housing on behalf of very low-income families 
        who reside in such housing.''.

SEC. 515. NATIVE AMERICAN RURAL HOUSING CAPACITY DEMONSTRATION PROGRAM.

    Title V of the Housing Act of 1949 is amended by inserting after 
section 537 (42 U.S.C. 1490p-1) the following new section:

``SEC. 538. RURAL HOUSING CAPACITY DEMONSTRATION PROGRAM FOR NATIVE 
              AMERICANS AND ALASKAN NATIVES.

    ``(a) Authority.--The Secretary shall carry out a program under 
this section to demonstrate the effectiveness of assisting Native 
Americans and Alaskan Natives in underserved areas to apply for, 
obtain, and use housing assistance under this title.
    ``(b) Grants.--Under the demonstration under this section, the 
Secretary shall make grants to technical assistance providers selected 
under subsection (f) to carry out activities under subsection (c) with 
respect to tribes selected under subsection (e) (and members of the 
tribes) in the selected areas. Of the amounts provided to a technical 
assistance provider under a grant under this section, 40 percent shall 
be disbursed to the technical assistance provider in fiscal year 1995, 
30 percent shall be so disbursed in fiscal year 1996, and 30 percent 
shall be so disbursed in fiscal year 1997.
    ``(c) Use of Assistance.--
            ``(1) Eligible activities.--Any amounts provided to a 
        technical assistance provider under a grant under this section 
        shall be used by the technical assistance provider only--
                    ``(A) to train individuals for employment as local 
                project coordinators under paragraph (2), which shall 
                include training regarding the availability, 
                application for, and use of housing assistance under 
                this title with respect to tribes and members of 
                tribes;
                    ``(B) to provide ongoing technical assistance and 
                training to local project coordinators;
                    ``(C) to provide assistance to the tribes selected 
                under subsection (e) in the selected areas, or to 
                Native American or Alaskan Native housing organizations 
                serving such tribes, to employ local project 
                coordinators trained pursuant to subparagraph (A); and
                    ``(D) to establish a revolving fund to provide 
                loans to tribes and members of tribes for customary and 
                reasonable costs incurred in preparing and submitting 
                applications for housing assistance under this title to 
                be used in the selected areas (including costs of 
                credit reports), except that not more than $1,500 may 
                be provided for the purpose under this subparagraph to 
                any single tribe or Native American or Alaskan Native 
                housing organization.
            ``(2) Local project coordinator.--For purposes of this 
        section, a local project coordinator shall be an individual 
        who--
                    ``(A) is employed by a tribe selected under 
                subsection (e) in, or Native American or Alaskan Native 
                housing organization serving, the selected area;
                    ``(B) provides advice and assistance to the tribe 
                or the tribes served by the organization (and members 
                of such tribes), regarding the availability, 
                application for, and use of housing assistance under 
                this title;
                    ``(C) otherwise facilitates the use of such 
                assistance by the tribes and their members; and
                    ``(D) assists the tribes and their members in 
                obtaining loans from the revolving fund established 
                under paragraph (1)(D).
    ``(d) Tribal Contributions To Demonstration Program.--Each tribe 
selected under subsection (e) for participation in the demonstration 
program under this section shall enter into an agreement with the 
technical assistance provider to provide in-kind or financial 
assistance, in addition to amounts provided under this section, for 
activities under the demonstration program, in an amount determined by 
the tribe and the technical assistance provider. The assistance 
provided pursuant to such agreement may include assistance in the form 
of office space, equipment, transportation, salary enhancement, and 
fringe benefits, and other forms of assistance.
    ``(e) Selection of Tribes and Areas.--
            ``(1) Eligibility.--The Secretary shall provide for the 
        technical assistance providers receiving grants under this 
        section to select for participation in the demonstration under 
        this section not more than a total of 15 tribes--
                    ``(A) that are located in counties or communities--
                            ``(i) that are eligible for designation as 
                        targeted underserved areas under section 
                        509(f); or
                            ``(ii) that include tribal allotted or 
                        Indian trust land; and
                    ``(B) that--
                            ``(i) have agreed to participate in the 
                        demonstration under this section by designating 
                        individuals for training as local project 
                        coordinators under subsection (c); or
                            ``(ii) are located in a county or community 
                        within which is located a Native American or 
                        Alaskan Native housing organization that has so 
                        agreed to participate in the demonstration 
                        under this section.
            ``(2) Criteria for selection.--Each technical assistance 
        provider selecting tribes pursuant to paragraph (1) shall make 
        such selections according to criteria that include--
                    ``(A) the extent of substandard housing on the 
                reservation of the tribe;
                    ``(B) the extent of the waiting list for housing 
                assistance under Federal housing programs in the 
                community or community under paragraph (1)(A);
                    ``(C) the extent of interest in and willingness to 
                participate in the demonstration program under this 
                section for a 3-year period; and
                    ``(D) the extent of willingness to provide in-kind 
                or financial assistance in addition to amounts provided 
                under this section for activities under the 
                demonstration program.
            ``(3) Treatment as targeted underserved areas.--
        Notwithstanding the designation of counties and communities as 
        targeted underserved areas under section 509(f)(1) and the 
        provisions of section 520, any selected area under this section 
        shall be considered a targeted underserved area for fiscal 
        years 1995, 1996, and 1997, for purposes of eligibility for 
        assistance with amounts reserved under section 509(f)(4)(A).
    ``(f) Selection of Technical Assistance Providers.--
            ``(1) Eligibility.--The Secretary may make a grant under 
        this section only to a nonprofit organization having experience 
        in providing training and technical assistance regarding the 
        use of housing assistance under this title and in administering 
        revolving loan funds for costs relating to housing assistance 
        programs under this title.
            ``(2) Application.--The Secretary shall provide for 
        nonprofit organizations meeting the requirements under 
        paragraph (1) to submit applications for a grant under this 
        section during a period of not more than 45 days that begins 
        upon publication of the notice of funding availability under 
        subsection (i).
            ``(3) Selection.--Not more than 30 days after expiration of 
        such period, the Secretary shall select, to receive grants 
        under this section, 1 or more nonprofit organizations 
        submitting applications that are--
                    ``(A) capable of carrying out the duties of 
                technical assistance providers under this section;
                    ``(B) knowledgeable and experienced regarding 
                housing needs and issues of Native Americans and 
                Alaskan Natives and housing assistance programs under 
                this title; and
                    ``(C) agree to comply with the provisions of this 
                section.
    ``(g) Reports.--
            ``(1) Local project coordinators.--Each local project 
        coordinator trained or assisted by a technical assistance 
        provider with amounts from a grant under this section shall 
        submit a report to the technical assistance provider for each 
        of fiscal years 1995 through 1997, regarding the activities of 
        the coordinator. The report shall be submitted not later than 
        30 days after the conclusion of the fiscal year for which the 
        report is made.
            ``(2) Technical assistance providers.--Each technical 
        assistance provider receiving a grant under this section shall 
        submit a report to the Secretary for each of fiscal years 1995 
        through 1997, summarizing the information submitted under 
        paragraph (1) for the fiscal year and describing the activities 
        of the technical assistance provider under the demonstration 
        under this section during the fiscal year. The report shall be 
        submitted not later than 60 days after the conclusion of the 
        fiscal year for which the report is made.
            ``(3) Secretary.--The Secretary shall submit a report to 
        the Congress for each of fiscal years 1995 through 1997 
        describing the demonstration under this section and the 
        findings of the Secretary as a result of the demonstration. The 
        report shall be submitted not later than 90 days after the 
        conclusion of the fiscal year for which the report is made.
    ``(h) Definitions.--For purposes of this section:
            ``(1) Alaskan native village.--The term `Alaskan Native 
        Village' has the same meaning given the term `Native village' 
        in section 3 of the Alaska Native Claims Settlement Act.
            ``(2) Native american or alaskan native housing 
        organization.--The term `Native American or Alaskan Native 
        housing organization' means a nonprofit organization that 
        primarily serves a tribe or tribes, and includes Indian housing 
        authorities and other housing entities of a tribe.
            ``(3) Nonprofit organization.--The term `nonprofit 
        organization' means any private, nonprofit organization that--
                    ``(A) is organized or chartered under State, 
                tribal, or local laws;
                    ``(B) has no part of its net earning inuring to the 
                benefit of any member, founder, contributor, or 
                individual;
                    ``(C) complies with standards of financial 
                accountability acceptable to the Secretary; and
                    ``(D) through its articles of incorporation or 
                through resolution of the governing body of a tribe, 
                has among its purposes significant activities related 
                to the provision of decent housing that is affordable 
                to low- and moderate-income families.
            ``(4) Selected area.--The term `selected area' means, with 
        respect to any tribe selected under subsection (e), the county 
        or community meeting the requirements of subsection (e)(1) in 
        which the tribe selected is located.
            ``(5) Technical assistance provider.--The term `technical 
        assistance provider' means a nonprofit organization (including 
        a tribe and an Indian housing authority) that is selected under 
        subsection (f) to receive a grant under this section.
            ``(6) Tribe.--The term `tribe' means any Indian tribe, 
        band, group, or nation, including Alaska Indians, Aleuts, and 
        Eskimos, and any Alaskan Native Village, of the United States, 
        that is considered an eligible recipient under the Indian Self-
        Determination and Education Assistance Act or was considered an 
        eligible recipient under chapter 67 of title 31, United States 
        Code, prior to the repeal of such chapter.
    ``(i) Notice of Funding Availability.--
            ``(1) Publication.--The Secretary shall cause to be 
        published in the Federal Register notice of the availability of 
        any amounts made available for grants under this section. Such 
        notice shall be published not later than the expiration of the 
        90-day period beginning on the date that amounts are 
        appropriated to carry out this section.
            ``(2) Contents.--The notice referred to in paragraph (1) 
        shall--
                    ``(A) describe the requirements for eligibility to 
                receive a grant, the purposes of the grant, and the 
                permissible uses of grant amounts;
                    ``(B) contain an address to which requests for 
                additional information regarding the demonstration 
                under this section may be made; and
                    ``(C) state the deadline established by the 
                Secretary pursuant to subsection (f)(2) for the 
                submission of applications for a grant.''.

SEC. 516. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

    Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is 
amended by inserting after section 538 (as added by the preceding 
provisions of this title) the following new section:

``SEC. 539. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

    ``(a) In General.--The Secretary is authorized to provide 
assistance to develop the capacity and ability of community development 
corporations, community housing development organizations, and other 
nonprofit organizations to undertake community development and 
affordable housing projects and programs in rural areas.
    ``(b) Form of Assistance.--Assistance under this section may be 
used for--
            ``(1) training, education, support, and advice to enhance 
        the technical and administrative capabilities of community 
        development corporations, community housing development 
        organizations, and nonprofit organizations in rural areas;
            ``(2) loans, grants, or predevelopment assistance to 
        community development corporations, community housing 
        development organizations, and nonprofit organizations to carry 
        out community development and affordable housing activities 
        that benefit low-income families in rural areas; and
            ``(3) such other activities for rural areas as may be 
        determined by the Secretary.
    ``(c) Matching Requirement.--Assistance provided under this section 
shall be matched from private sources in an amount equal to 3 times the 
amount made available under this section.
    ``(d) Implementation.--The Secretary shall by notice establish such 
requirements as may be necessary to carry out the provisions of this 
section. The notice shall take effect upon issuance.''.

SEC. 517. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN RURAL 
              AREAS.

    Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is 
amended by inserting after section 539 (as added by the preceding 
provision of this title) the following new section:

``SEC. 540. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN RURAL 
              AREAS.

    ``(a) Authority.--The Secretary may make commitments to guarantee 
eligible loans for the development costs of eligible housing and 
related facilities, and may guarantee such eligible loans, in 
accordance with this section.
    ``(b) Extent of Guarantee.--A guarantee made under this section 
shall guarantee repayment of an amount not exceeding 90 percent of the 
amount of the unpaid principal and interest of the loan for which the 
guarantee is made. The liability of the United States under any 
guarantee under this section shall decrease or increase pro rata with 
any decrease or increase of the amount of the unpaid portion of the 
obligation.
    ``(c) Eligible Borrowers.--A loan guaranteed under this section may 
be made to a nonprofit organization, an agency or body of any State 
government or political subdivision thereof, or a private entity.
    ``(d) Eligible Housing.--A loan may be guaranteed under this 
section only if the loan is used for the development costs of housing 
and related facilities (as such terms are defined in section 515(e)) 
that--
            ``(1) consists of 5 or more adequate dwellings;
            ``(2) is available for occupancy only by low or moderate 
        income families or persons, whose incomes at the time of 
        initial occupancy do not exceed 115 percent of the median 
        income of the area, as determined by the Secretary;
            ``(3) will remain available as provided in paragraph (2), 
        according to such binding commitments as the Secretary may 
        require, for the period of the original term of the loan 
        guaranteed, unless the Secretary waives the applicability of 
        such requirement for the loan only after determining, based on 
        objective information, that--
                    ``(A) there is no longer a need for low- and 
                moderate-income housing in the market area in which the 
                housing is located;
                    ``(B) housing opportunities for low-income 
                households and minorities will not be reduced as a 
                result of the waiver; and
                    ``(C) additional Federal assistance will not be 
                necessary as a result of the waiver; and
            ``(4) is located in a rural area.
    ``(e) Eligible Lenders.--
            ``(1) Requirement.--A loan may be guaranteed under this 
        subsection only if the loan is made by a lender that the 
        Secretary determines--
                    ``(A) meets the qualifications, and has been 
                approved by the Secretary of Housing and Urban 
                Development, to make loans for multifamily housing that 
                are to be insured under the National Housing Act;
                    ``(B) meets the qualifications, and has been 
                approved by the Federal National Mortgage Association 
                and the Federal Home Loan Mortgage Corporation, to make 
                loans for multifamily housing that are to be sold to 
                such corporations; or
                    ``(C) meets any qualifications that the Secretary 
                may, by regulation, establish for participation of 
                lenders in the loan guarantee program under this 
                section.
            ``(2) Eligibility list and annual audit.--The Secretary 
        shall establish a list of eligible lenders and shall annually 
        conduct an audit of each lender included in the list for 
        purposes of determining whether such lender continues to be an 
        eligible lender.
    ``(f) Loan Terms.--Each loan guaranteed pursuant to this subsection 
shall--
            ``(1) provide for complete amortization by periodic 
        payments to be made for a term not to exceed 40 years;
            ``(2) involve a rate of interest agreed upon by the 
        borrower and the lender that does not exceed the maximum 
        allowable rate established by the Secretary for purposes of 
        this section and is fixed over the term of the loan;
            ``(3) involve a principal obligation (including initial 
        service charges, appraisal, inspection, and other fees as the 
        Secretary may approve) not to exceed--
                    ``(A) in the case of a borrower that is a nonprofit 
                organization or an agency or body of any State or local 
                government, 97 percent of the development costs of the 
                housing and related facilities or the value of the 
                housing and facilities, whichever is less;
                    ``(B) in the case of a borrower that is a for-
                profit entity not referred to in subparagraph (A), 90 
                percent of the development costs of the housing and 
                related facilities or the value of the housing and 
                facilities, whichever is less; and
                    ``(C) in the case of any borrower, for such part of 
                the property as may be attributable to dwelling use, 
                the applicable maximum per unit dollar amount 
                limitations under section 207(c) of the National 
                Housing Act;
            ``(4) be secured by a first mortgage on the housing and 
        related facilities for which the loan is made, or otherwise, as 
        the Secretary may determine necessary to ensure repayment of 
        the obligation; and
            ``(5) for at least 20 percent of the loans made under this 
        section, the Secretary shall provide the borrower with 
        assistance in the form of credits pursuant to section 
        521(a)(1)(B) to the extent necessary to reduce the rate of 
        interest under paragraph (2) to the applicable Federal rate, as 
        such term is used in section 42(i)(2)(D) of the Internal 
        Revenue Code of 1986.
    ``(g) Guarantee Fee.--At the time of issuance of a loan guaranteed 
under this section, the Secretary may collect from the lender a fee 
equal to not more than 1 percent of the principal obligation of the 
loan.
    ``(h) Authority for Lenders to Issue Certificates of Guarantee.--
The Secretary may authorize certain eligible lenders to determine 
whether a loan meets the requirements for guarantee under this section 
and, subject to the availability of authority to enter into guarantees 
under this section, execute a firm commitment for a guarantee binding 
upon the Secretary and issue a certificate of guarantee evidencing a 
guarantee, without review and approval by the Secretary of the specific 
loan. The Secretary may establish standards for approving eligible 
lenders for a delegation of authority under this subsection.
    ``(i) Payment Under Guarantee.--
            ``(1) Notice of default.--In the event of default by the 
        borrower on a loan guaranteed under this section, the holder of 
        the guarantee certificate for the loan shall provide written 
        notice of the default to the Secretary.
            ``(2) Foreclosure.--After receiving notice under paragraph 
        (1) and providing written notice of action under this paragraph 
        to the Secretary, the holder of the guarantee certificate for 
        the loan may initiate foreclosure proceedings for the loan in a 
        court of competent jurisdiction, in accordance with regulations 
        issued by the Secretary, to obtain possession of the security 
        property. After the court issues a final order authorizing 
        foreclosure on the property, the holder of the certificate 
        shall be entitled to payment by the Secretary under the 
        guarantee (in the amount provided under subsection (b)) upon 
        (A) conveyance to the Secretary of title to the security 
        property, (B) submission to the Secretary of a claim for 
        payment under the guarantee, and (C) assignment to the 
        Secretary of all the claims of the holder of the guarantee 
        against the borrower or others arising out of the loan 
        transaction or foreclosure proceedings, except claims released 
        with the consent of the Secretary.
            ``(3) Assignment by secretary.--After receiving notice 
        under paragraph (1), the Secretary may accept assignment of the 
        loan if the Secretary determines that the assignment is in the 
        best interests of the United States. Assignment of a loan under 
        this paragraph shall include conveyance to the Secretary of 
        title to the security property, assignment to the Secretary of 
        all rights and interests arising under the loan, and assignment 
        to the Secretary of all claims against the borrower or others 
        arising out of the loan transaction. Upon assignment of a loan 
        under this paragraph, the holder of a guarantee certificate for 
        the loan shall be entitled to payment by the Secretary under 
        the guarantee (in the amount provided under subsection (b)).
            ``(4) Requirements.--Before any payment under a guarantee 
        is made under paragraph (2) or (3), the holder of the guarantee 
        certificate shall exhaust all reasonable possibilities of 
        collection on the loan guaranteed. Upon payment, in whole or in 
        part, to the holder, the note or judgment evidencing the debt 
        shall be assigned to the United States and the holder shall 
        have no further claim against the borrower or the United 
        States. The Secretary shall then take such action to collect as 
        the Secretary determines appropriate.
    ``(j) Violation of Guarantee Requirements by Lenders Issuing 
Guarantees.--
            ``(1) Indemnification.--If the Secretary determines that a 
        loan guaranteed by an eligible lender pursuant to delegation of 
        authority under subsection (h) was not originated in accordance 
        with the requirements under this section and the Secretary pays 
        a claim under the guarantee for the loan, the Secretary may 
        require the eligible lender authorized under subsection (h) to 
        issue the guarantee certificate for the loan--
                    ``(A) to indemnify the Secretary for the loss, if 
                the payment under the guarantee was made within a 
                reasonable period specified by the Secretary; or
                    ``(B) to indemnify the Secretary for the loss 
                regardless of when payment under the guarantee was 
                made, if the Secretary determines that fraud or 
                misrepresentation was involved in connection with the 
                origination of the loan.
            ``(2) Termination of authority to issue guarantees.--The 
        Secretary may cancel a delegation of authority under subsection 
        (h) to an eligible lender if the Secretary determines that the 
        lender has violated the requirements and procedures for 
        guaranteed loans under this section or for other good cause. 
        Any such cancellation shall be made by giving notice to the 
        eligible lender and shall take effect upon receipt of the 
        notice by the mortgagee or at a later date, as the Secretary 
        may provide. A decision by the Secretary to cancel a delegation 
        shall be final and conclusive and shall not be subject to 
        judicial review.
    ``(k) Refinancing.--Any loan guaranteed under this section may be 
refinanced and extended in accordance with terms and conditions that 
the Secretary shall prescribe, but in no event for an additional amount 
or term that exceeds the limitations under subsection (f).
    ``(l) Nonassumption.--The borrower under a loan that is guaranteed 
under this section and under which any portion of the principal 
obligation or interest remains outstanding may not be relieved of 
liability with respect to the loan, notwithstanding the transfer of 
property for which the loan was made.
    ``(m) Geographical Targeting.--
            ``(1) Study.--The Secretary shall provide for an 
        independent entity to conduct a study to determine the extent 
        to which borrowers in the United States will utilize loan 
        guarantees under this section, the rural areas in the United 
        States in which borrowers can best utilize and most need loans 
        guaranteed under this section, and the rural areas in the 
        United States in which housing of the type eligible for a loan 
        guarantee under this section is most needed by low- and 
        moderate-income families. The Secretary shall require the 
        independent entity conducting the study to submit a report to 
        the Secretary and to the Congress describing the results of the 
        study not later than the expiration of the 90-day period 
        beginning on the date of the enactment of the Housing and 
        Community Development Act of 1994.
            ``(2) Targeting.--In providing loan guarantees under this 
        section, the Secretary shall establish standards to target and 
        give priority to rural areas in which borrowers can best 
        utilize and most need loans guaranteed under this section, as 
        determined by the Secretary based on the results of the study 
        under paragraph (1) and any other information the Secretary 
        considers appropriate.
    ``(n) Inapplicability of Credit-Elsewhere Test.--Section 501(c) 
shall not apply to guarantees, or loans guaranteed, under this section.
    ``(o) Tenant Protections.--The Secretary shall establish standards 
for the treatment of tenants of housing developed using amounts from a 
loan guaranteed under this section, which shall incorporate, to the 
extent applicable, existing standards applicable to tenants of housing 
developed with loans made under section 515. Such standards shall 
include standards for fair housing and equal opportunity, lease and 
grievance procedures, and tenant appeals of adverse actions.
    ``(p) Housing Standards.--The standards established under section 
515(m) for housing and related facilities assisted under section 515 
shall apply to housing and related facilities the development costs of 
which are financed in whole or in part with a loan guaranteed under 
this section.
    ``(q) Limitation on Commitments to Guarantee Loans.--
            ``(1) Requirement of appropriations.--The authority of the 
        Secretary to enter into commitments to guarantee loans under 
        this section, and to guarantee loans, shall be effective for 
        any fiscal year only to the extent or in such amounts as are or 
        have been provided in appropriations Acts for such fiscal year.
            ``(2) Limitation on projects and outstanding aggregate 
        principal amount.--Subject to the limitation in paragraph (1), 
        the Secretary may enter into commitments to guarantee loans 
        under this section for not more than 25 housing projects in 
        each of fiscal years 1995 and 1996, having an aggregate 
        outstanding principal amount not exceeding $50,000,000 in each 
        of such fiscal years.
    ``(r) Report.--
            ``(1) In general.--The Secretary shall submit a report to 
        the Congress, not later than the expiration of the 2-year 
        period beginning on the date of the enactment of the Housing 
        and Community Development Act of 1994, describing the program 
        under this section for guaranteeing loans.
            ``(2) Contents.--The report shall--
                    ``(A) describe the types of borrowers providing 
                housing with loans guaranteed under this section, the 
                areas served by the housing provided and the 
                geographical distribution of the housing, the levels of 
                income of the residents of the housing, the number of 
                dwelling units provided, the extent to which borrowers 
                under such loans have obtained other financial 
                assistance for development costs of housing provided 
                with the loans, and the extent to which borrowers under 
                such loans have used low-income housing tax credits 
                provided under section 42 of the Internal Revenue Code 
                of 1986 in connection with the housing provided with 
                the loans;
                    ``(B) analyze the financial viability of the 
                housing provided with loans guaranteed under this 
                section and the need for project-based rental 
                assistance for such housing;
                    ``(C) include any recommendations of the Secretary 
                for expanding or improving the program under this 
                section for guaranteeing loans; and
                    ``(D) include any other information regarding the 
                program for guaranteeing loans under this section that 
                the Secretary considers appropriate.
    ``(s) Definitions.--For purposes of this subsection, the following 
definitions shall apply:
            ``(1) The term `development cost' has the meaning given the 
        term in section 515(e).
            ``(2) The term `eligible lender' means a lender determined 
        by the Secretary to meet the requirements of subparagraph (A), 
        (B), (C), or (D) of subsection (e)(1).
            ``(3) The terms `housing' and `related facilities' have the 
        meanings given such terms in section 515(e).
    ``(t) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996 such sums as may be 
necessary for costs (as such term is defined in section 502 of the 
Congressional Budget Act of 1974) of loan guarantees made under this 
section.
    ``(u) Termination Date.--A loan may not be guaranteed under this 
section after September 30, 1996.''.

SEC. 518. RURAL HOUSING LOAN DELEGATED PROCESSING DEMONSTRATION.

    (a) Authority.--Not later than the expiration of the 180-day period 
beginning on the date of enactment of this Act, the Secretary of 
Agriculture shall implement a system for making, processing, and 
servicing loans under section 502 of the Housing Act of 1949 that 
delegates such functions to nonprofit organizations approved by the 
Secretary of Agriculture. Under the system, the Secretary shall retain 
the authority to approve loan amounts and interest credit agreements 
and to execute binding loan commitments and credit agreements.
    (b) Use in Targeted Underserved Areas.--The Secretary of 
Agriculture shall carry out the delegated processing system under 
subsection (a) only with respect to loans for housing located in, and 
amounts reserved for use in, areas for which a designation under 
section 509(f) is in effect.
    (c) Report.--The Secretary of Agriculture shall submit an interim 
report to the Congress not later than 12 months after the date of the 
initial implementation of the delegated processing system under this 
section describing the activities taken under the system and evaluating 
the effectiveness of the system.
    (d) Termination of Authority.--The Secretary of Agriculture may not 
carry out the delegated processing system under this section after 
September 30, 1996.

                    TITLE VI--COMMUNITY DEVELOPMENT

         Subtitle A--Community Development Block Grant Program

SEC. 601. AUTHORIZATION OF APPROPRIATIONS AND GUARANTEE AUTHORITY.

    (a) Community Development Block Grants.--The second sentence of 
section 103 of the Housing and Community Development Act of 1974 (42 
U.S.C. 5303) is amended to read as follows: ``For purposes of 
assistance under section 106, there are authorized to be appropriated 
$4,400,000,000 for fiscal year 1995 and $4,500,000,000 for fiscal year 
1996.''.
    (b) Limitation on Loan Guarantees.--The fifth sentence of section 
108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 
5308(a)) is amended to read as follows: ``Notwithstanding any other 
provision of law and subject only to the absence of qualified 
applicants or proposed activities and to the authority provided in this 
section, to the extent approved or provided in appropriation Acts, the 
Secretary shall enter into commitments to guarantee notes and 
obligations under this section with an aggregate principal amount of 
$2,054,000,000 for fiscal year 1995 and $2,054,000,000 for fiscal year 
1996.''.
    (c) Special Purpose Grants.--Section 107 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307) is amended--
            (1) by striking ``Sec. 107'' and all that follows through 
        the end of paragraph (1) of subsection (a) and inserting the 
        following:
    ``Sec. 107. (a) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        for each of fiscal years 1995 and 1996, $60,000,000, for grants 
        under subsection (b). Of such amounts--
                    ``(A) $7,000,000 shall be available in each such 
                year for grants under subsection (b)(1);
                    ``(B) such sums as may be necessary shall be 
                available in each such year for grants under subsection 
                (b)(2);
                    ``(C) $7,000,000 shall be available in each such 
                year for grants under subsection (b)(3);
                    ``(D) $28,000,000 shall be available in each such 
                year for grants under subsection (b)(4);
                    ``(E) $6,000,000 shall be available in each such 
                year for grants under subsection (b)(5);
                    ``(F) $2,000,000 shall be available in each such 
                year for grants under subsection (b)(6);
                    ``(G) $8,000,000 shall be available in each such 
                year for grants under subsection (b)(7);
                    ``(H) such sums as may be necessary shall be 
                available in each such year for grants under subsection 
                (b)(8);
                    ``(I) $3,000,000 shall be available in each such 
                year for grants under subsection (c); and
                    ``(J) such sums as may be necessary shall be 
                available in fiscal year 1995 for a grant to the City 
                of Bridgeport, Connecticut, subject to binding 
                commitments made by the City of Bridgeport and the 
                State of Connecticut that the amount made available 
                pursuant to this subparagraph will be supplemented with 
                an additional amount equal to such amount under this 
                subparagraph, which shall be provided by the city and 
                the State in equal amounts.''; and
            (2) in subsection (b)--
                    (A) in paragraph (6), by striking ``and'' at the 
                end;
                    (B) in paragraph (7), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(8) to 10 metropolitan cities and urban counties that 
        receive grants under section 106, have high rates of fire 
        incidents, a substantial number of low-income residents, and a 
        high rate of death and serious injury caused by fire among 
        youth, elderly, and minorities, for obtaining a nitrogen 
        enhanced, biodegradable, noncorrosive fire suppression liquid 
        and for training firefighters to use such liquid; and in any 
        year in which grants are made under this paragraph, the 
        Secretary shall include in the report required under section 
        113 a description of the effectiveness of grants made under 
        this paragraph in preventing loss of life and property; and''.

SEC. 602. MANAGEMENT INFORMATION SYSTEMS.

    Section 103 of the Housing and Community Development Act of 1974 
(42 U.S.C 5303) is amended--
            (1) by inserting ``(a) In General.--'' after ``103.''; and
            (2) by adding at the end the following new subsection:
    ``(b) Reservation for Management Information Systems.--Of the 
amount approved in an appropriation Act for each of fiscal years 1995 
and 1996 under this section, the Secretary may reserve not more than 
0.5 percent for improving management information systems used by the 
Secretary and recipients under this title.''.

SEC. 603. ELIGIBLE ACTIVITIES.

    (a) Reconstruction Activities and Removal of Toxic Materials.--
Section 105(a) of the Housing and Community Development Act of 1974 (42 
U.S.C. 5305(a)) is amended--
            (1) in paragraph (4), by striking ``, demolition, 
        removal,'' and inserting ``(including the removal of toxic 
        materials and other contaminants from properties), demolition, 
        removal, reconstruction,'';
            (2) in paragraph (8), by striking ``fiscal year 1994'' and 
        inserting ``fiscal years 1994, 1995, and 1996'';
            (3) in paragraph (13), by striking ``and'' at the end;
            (4) by striking paragraph (19);
            (5) in paragraph (24), by striking ``and'' at the end;
            (6) in paragraph (25), by striking the period at the end 
        and inserting ``; and'';
            (7) by redesignating paragraphs (20) through (25) as 
        paragraphs (19) through (24), respectively; and
            (8) by redesignating paragraph (21) (as added by section 
        1012(f)(3) of the Housing and Community Development Act of 1992 
        (Public Law 102-550; 106 Stat. 3905) as paragraph (25).
    (b) Homeownership Activities.--Section 907(b)(2) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 5305 note) is 
hereby repealed.

SEC. 604. REALLOCATIONS.

    Section 106(c) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5304(c)) is amended by striking paragraph (4).

SEC. 605. LIMITATION ON EXTENT OF USE OF LOAN GUARANTEES FOR HOUSING 
              PURPOSES.

    Section 108 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5308) is amended by inserting after subsection (h) the 
following new subsection:
    ``(i) Limitation on Use.--Of any amounts obtained from notes or 
other obligations issued by an eligible public entity or public agency 
designated by an eligible public entity and guaranteed under this 
section pursuant to an application for a guarantee submitted after the 
date of the enactment of the Housing and Community Development Act of 
1992, the aggregate amount used for the purposes described in clauses 
(2) and (4) of subsection (a), and for other housing activities under 
the purposes described in clauses (1) and (3) of subsection (a), may 
not exceed 10 percent of such amounts obtained by the eligible public 
entity or agency.''.

SEC. 606. ECONOMIC DEVELOPMENT GRANTS.

    (a) Eligible Activities.--Section 108(q)(2) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5308(q)(2)) is amended by 
inserting before the period at the end the following: ``and for the 
construction, rehabilitation, or financing of retail and service 
facilities, mixed-use projects, projects that link economic development 
and housing, community centers, farmers' markets, and community-based 
business expansions''.
    (b) Eligible Public Entities.--Section 108(q)(1) of the Housing and 
Community Development Act of 1974 is amended by inserting after 
``eligible public entities'' the following: ``, and to eligible public 
entities in conjunction with community- or neighborhood-based 
organizations,''.
    (c) Authorization of Appropriations.--Section 108(q) of the Housing 
and Community Development Act of 1974 is amended by adding at the end 
the following new paragraph:
            ``(5) Authorization of appropriations.--There are 
        authorized to be appropriated for grants under this subsection 
        $100,000,000 for fiscal year 1995 and $100,000,000 for fiscal 
        year 1996.''.

SEC. 607. USE OF UDAG RECAPTURES.

    Section 119(o) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5318(o)) is amended by striking ``October 1, 1993'' and 
inserting in lieu thereof ``April 11, 1994''.

SEC. 608. EXTENSION OF CERTAIN CDBG ASSISTANCE.

    (a) Extension.--Section 916(f) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 5306 note) is amended by striking 
``1991'' and all that follows through ``1994'' and inserting 
``beginning before the commencement of fiscal year 1998''.
    (b) Eligibility.--Section 916(e)(4) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 5306 note) is amended by 
inserting ``other than Riverside County, California,'' after ``area''.

            Subtitle B--Other Community Development Programs

SEC. 631. NEIGHBORHOOD REINVESTMENT CORPORATION.

    The first sentence of section 608(a)(1) of the Neighborhood 
Reinvestment Corporation Act (42 U.S.C. 8107(a)) is amended to read as 
follows: ``There are authorized to be appropriated to the corporation 
to carry out this title $35,000,000 for fiscal year 1995 and 
$35,000,000 for fiscal year 1996.''.

SEC. 632. JOHN HEINZ NEIGHBORHOOD DEVELOPMENT PROGRAM.

    Section 123(g) of the Housing and Urban-Rural Recovery Act of 1983 
(42 U.S.C. 5318 note) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $10,000,000 for fiscal year 1995 
and $10,000,000 for fiscal year 1996.''.

SEC. 633. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE 
              HOUSING.

    (a) Authorization of Appropriations.--Section 4 of the HUD 
Demonstration Act of 1993 (42 U.S.C. 9816 note) is amended by striking 
subsection (e) and inserting the following new subsection:
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $60,000,000 for fiscal year 1995 
and $60,000,000 for fiscal year 1996.''.
    (b) Delivery of Assistance.--Section 4 of the HUD Demonstration Act 
of 1993 (42 U.S.C. 9816 note) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``and directly to community-based 
                organizations and capacity-building organizations'' 
                after ``Initiative'';
                    (B) by inserting ``neighborhood'' after 
                ``undertake''; and
                    (C) by striking ``and affordable housing'' and 
                inserting ``, affordable housing, revitalization, 
                economic development, youth and family support, and 
                community service'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``and community 
                housing development organizations'' and inserting ``, 
                community housing development organizations, and 
                community-based organizations'' before the semicolon at 
                the end;
                    (B) in paragraph (2)--
                            (i) by striking ``and community housing 
                        development organizations'' and inserting ``, 
                        community housing development organizations, 
                        and community-based organizations'';
                            (ii) by inserting ``neighborhood'' after 
                        ``carry out''; and
                            (iii) by striking ``low-income'' and 
                        inserting ``low- and moderate-income''; and
                    (C) in paragraph (3), by inserting ``or the 
                community-based organization'' after ``Initiative'';
            (3) in subsection (c), by inserting ``to the National 
        Community Development Initiative'' after ``provided'';
            (4) by redesignating subsection (d) as subsection (e); and
            (5) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Selection Criteria.--The Secretary shall select community-
based organizations and capacity-building organizations to receive 
assistance under this section based upon selection criteria established 
by the Secretary, which shall include the extent to which the 
activities proposed to be conducted by the organization with assistance 
under this section will--
            ``(1) develop new community-based organizations in 
        unorganized or underserved areas;
            ``(2) assist eligible private nonprofit community-based 
        organizations located in low- or moderate-income neighborhoods 
        or areas having a concentration of low- and moderate-income 
        persons;
            ``(3) be targeted to areas in economic distress;
            ``(4) be conducted by an organization that provides for 
        neighborhood resident participation in the activities of the 
        organization (including participation of low- and moderate-
        income residents) and the extent to which the households and 
        businesses in the area served are members of the organization;
            ``(5) benefit low- and moderate-income persons residing in 
        the area served by the applicant;
            ``(6) encourage linking and coordinating housing, economic, 
        and human development;
            ``(7) be coordinated with local law enforcement agencies, 
        local public housing agencies, and local public housing 
        resident management corporations and resident councils, with 
        respect to anti crime initiatives; and
            ``(8) leverage contributions to support a wide variety of 
        community development initiatives from the private sector, 
        foundations, colleges and universities, civic groups, social, 
        cultural, religious, and other institutions, and the national 
        service program, in a manner that achieves the greatest long-
        term private sector support.''.

SEC. 634. COLONIAS ASSISTANCE PROGRAM.

    (a) Grant Authority.--The Secretary may make grants in accordance 
with the provisions of this section to units of general local 
government, States, non-profit organizations, or entities or 
instrumentalities established under the authority of any of such 
entities, for use in addressing the community development and housing 
needs of colonias.
    (b) Eligible Activities.--Assistance under this section may be used 
only to carry out the following activities:
            (1) Any activity eligible under section 105 of the Housing 
        and Community Development Act of 1974 or section 212(a) of the 
        HOME Investment Partnerships Act.
            (2) Refinancing the existing debt of homeowners to convert 
        existing land transactions and interests into mortgages.
            (3) Constructing new housing, including self-help, energy-
        efficient, and innovative housing design initiatives.
            (4) Developing new subdivisions for affordable housing.
            (5) Re-platting and redeveloping existing subdivisions.
            (6) Planning for and constructing infrastructure necessary 
        for the development of housing, economic development, and 
        community facilities and amenities.
            (7) Such other activities as the Secretary deems 
        appropriate to further the purposes of this section.
    (c) Model Programs.--
            (1) In general.--Of amounts allocated under subsection 
        (j)(2), the Secretary shall make grants under this subsection 
        to the entities referred to in subsection (a) for the purpose 
        of establishing model programs of assistance for addressing the 
        community development, housing, and other needs of the 
        residents of the colonias.
    (d) Selection of Grantees.--
            (1) Geographic distribution.--The Secretary shall 
        designate--
                    (A) at least one project in each State to receive a 
                grant under this subsection; and
                    (B) at least one project within a metropolitan area 
                in any State to receive a grant under this subsection.
            (2) Selection process.--The Secretary shall select grantees 
        under this subsection on a non-competitive basis, through 
        negotiation with the grantee.
            (3) Selection criteria.--In selecting projects for grants 
        under this subsection, the Secretary shall consider--
                    (A) the extent of need in the colonia;
                    (B) the likely effectiveness of the proposed 
                approach in addressing identified needs;
                    (C) the extent to which funding for the project is 
                committed from sources other than under this section;
                    (D) the need to consider a variety of solutions to 
                a variety of needs situations; and
                    (E) such other factors as the Secretary deems 
                appropriate to carry out the objectives of this 
                section.
    (e) Competitive Grants.--
            (1) Purpose.--Grants under this subsection shall be made, 
        in accordance with paragraph (2), to the entities referred to 
        in subsection (a) for the purpose of assisting the community 
        development and housing needs of the residents of one or more 
        colonias in an area or region.
            (2) Reservation of funds.--Of amounts allocated under 
        subsection (j)(2), the Secretary shall reserve a target amount 
        for grants under this subsection for use in colonias in each 
        State. The Secretary shall determine the amount be reserved 
        based on such objective factors of need as the Secretary deems 
        appropriate, which may include rates of poverty in, and the 
        population of, colonias. The Secretary shall reallocate any 
        amounts set-aside under this paragraph for which the Secretary 
        determines there will not be sufficient approvable applications 
        in a fiscal year.
            (3) Use of funds.--Any amount not reserved or reallocated 
        under paragraph (2) may be used in colonias in any State.
            (4) Applications.--Applications for grants under this 
        subsection shall be submitted at such time and in accordance 
        with such procedures, as the Secretary shall prescribe. 
        Applications shall contain the following information, which the 
        Secretary shall consider in selecting projects for grants under 
        this subsection:
                    (A) The extent of need in the colonia.
                    (B) An estimate of the likely effectiveness of the 
                proposed approach in addressing identified needs.
                    (C) A description of the extent to which funding 
                for the project is committed from sources other than 
                under this section.
                    (D) Any other information that the Secretary deems 
                appropriate to carry out the objectives of this 
                section.
            (5) Selection of grantees.--The Secretary shall select 
        grantees for grants under this subsection on the basis of a 
        competition, following publication of a notice of funding 
        availability in the Federal Register.
    (f) Records, Reports, and Audits.--
            (1) Keeping of records.--Each grantee under this section 
        shall keep such records as may be reasonably necessary to 
        disclose the amounts and the disposition of grant amounts 
        received under this section and to ensure compliance with the 
        requirements of this section.
            (2) Grantee reports.--Each grantee under this section shall 
        submit to the Secretary a report, or series of reports, in a 
        form and at a time specified by the Secretary. Each report 
        shall--
                    (A) describe the use of funds made available to the 
                grantee under this section; and
                    (B) describe and analyze the effect of assisted 
                activities in addressing the community development and 
                housing needs of the residents of colonias.
    (g) Access to Documents by Secretary.--The Secretary shall have 
access for the purpose of audit and examination to any books, 
documents, papers, and records of a grantee that are pertinent to 
assistance received in connection with, and the requirements of, this 
section.
    (h) Access to Documents by Comptroller General.--The Comptroller 
General of the United States, or any of the duly authorized 
representatives of the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of a grantee that are pertinent to assistance received under, 
and the requirements of, this section.
    (i) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) The terms ``colonia'' and ``United States-Mexico Border 
        Region'' have the meanings given the terms in section 916(e) of 
        the Cranston-Gonzalez National Affordable Housing Act.
            (2) The term ``metropolitan area'' has the meaning given 
        the term in section 102(a) of the Housing and Community 
        Development Act of 1974.
            (3) The term ``nonprofit organization'' means--
                    (A) an organization--
                            (i) that is described in section 501(c) of 
                        the Internal Revenue Code of 1986; and
                            (ii) is exempt from taxation under section 
                        501(a) of such Code; or
                    (B) an organization--
                            (i) no part of the net earnings of which 
                        inures to the benefit of any member, founder, 
                        contributor, or individual;
                            (ii) that in the case of a private 
                        nonprofit organization, has a voluntary board;
                            (iii) that has an accounting system, or has 
                        designated a fiscal agent in accordance with 
                        requirements established by the Secretary; and
                            (iv) that practices nondiscrimination in 
                        the provision of assistance.
            (4) The term ``Secretary'' means the Secretary of Housing 
        and Urban Development.
            (5) The term ``State'' means the States of California, 
        Arizona, New Mexico, and Texas.
            (6) The term ``unit of general local government'' means--
                    (A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State; and
                    (B) any agency or instrumentality thereof that is 
                established pursuant to legislation and designated by 
                the chief executive to act on behalf of the 
                jurisdiction with regard to provisions of this section.
        The term includes a consortium of geographically contiguous 
        units of general local government, if the Secretary determines 
        that the consortium--
                    (i) has sufficient authority and administrative 
                capability to carry out the purposes of this section on 
                behalf of its member jurisdictions; and
                    (ii) meets such other requirements as the Secretary 
                may prescribe.
    (j) Funding.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated for grants under this section $100,000,000 
        for each of fiscal years 1995 and 1996. Any amount appropriated 
        to carry out this section shall remain available until 
        expended.
            (2) Allocation of funds.--Of the amounts appropriated under 
        paragraph (1) for any fiscal year--
                    (A) 80 percent shall be available for grants to 
                establish model programs under subsection (c); and
                    (B) 20 percent shall be available for competitive 
                grants under subsection (e).

SEC. 635. GRANTS FOR EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES.

    (a) Grant Authority.--The Secretary of Housing and Urban 
Development may make grants to units of general local government in 
which empowerment zones and enterprise communities have been designated 
pursuant to section 1391 of the Internal Revenue Code of 1986.
    (b) Use.--Grants under this section may be used only to assist 
units of general local government in implementing the strategic plan 
for community revitalization required for each designated empowerment 
zone and enterprise community by expanding business opportunities and 
job creation through economic development activities and by stimulating 
the use of project-based rental assistance certificates and other 
activities to construct or rehabilitate rental housing, as follows:
            (1) Economic development activities.--Grants amounts under 
        this section used for economic development activities may be 
        used only for activities eligible to be carried out with 
        amounts provided under title I of the Housing and Community 
        Development Act of 1974.
            (2) Assisted housing.--Grant amounts under this section 
        used for housing activities may be used for--
                    (A) project-based assistance activities eligible 
                under section 8 of the United States Housing Act of 
                1937 or similar State and local programs;
                    (B) activities eligible for assistance under title 
                II of the Cranston-Gonzalez National Affordable Housing 
                Act or a similar local affordable housing program; and
                    (C) other housing activities that meet the 
                requirements of this subsection, as the Secretary may 
                approve.
    (c) Technical Assistance.--From amounts reserved under subsection 
(i)(2), the Secretary shall carry out, directly or through contracts, 
training and information activities in connection with the program 
under this section.
    (d) Applications.--A locality in which an empowerment zone or 
enterprise community has been designated, which designation remains in 
effect, may submit an application to the Secretary for a grant under 
this section. The application shall contain such information and 
certifications as the Secretary may require, including a certification 
that the grant will be used in accordance with the approved strategic 
plan. Where a zone or community is within the jurisdiction of more than 
one unit of general local government, the application shall be 
submitted jointly by the units of general local government and shall 
specify whether and, if so, how the grant is to be divided among the 
units.
    (e) Funding.--To the extent amounts are available to carry out this 
section, for applications approved by the Secretary the amount of a 
grant under this section for a fiscal year shall be --
            (1) $50,000,000 for each urban empowerment zone;
            (2) $20,000,000 for each rural empowerment zone; and
            (3) $1,400,000 for each enterprise community.
    (f) Terms and Conditions.--Grants made under this section shall be 
subject to such terms and conditions as the Secretary may establish.
    (g) Use in Conjunction With Loan Guarantees.--Grants made under 
this section may be used in conjunction with loans guaranteed under 
section 108 of the Housing and Community Development Act of 1974 and 
the Home Investment Partnerships Act.
    (h) Records, Reports, and Audits.--
            (1) Keeping of records.--Each grantee under this section 
        shall keep such records as may be reasonably necessary to 
        disclose the amounts and the disposition of grant amounts 
        received under this subtitle and to ensure compliance with the 
        requirements of this section.
            (2) Grantee reports.--Each grantee under this section shall 
        submit to the Secretary a report, or series of reports, in a 
        form and at a time specified by the Secretary. Each report 
        shall--
                    (A) describe the use of amounts made available 
                under this section; and
                    (B) describe and analyze the effect of assisted 
                activities in addressing the objectives of this 
                section.
            (3) Access to documents by secretary.--The Secretary shall 
        have access for the purpose of audit and examination to any 
        books, documents, papers, and records of the grantee that are 
        pertinent to assistance received in connection with, and the 
        requirements of, this section.
            (4) Access to documents by comptroller general.--The 
        Comptroller General of the United States, or any of the duly 
        authorized representatives of the Comptroller General, shall 
        have access for the purpose of audit and examination to any 
        books, documents, papers, and records of the grantee that are 
        pertinent to assistance received under, and the requirements 
        of, this section.
    (i) Funding.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated for purposes of this section $250,000,000 
        for fiscal year 1995 and $250,000,000 for fiscal year 1996. Any 
        amount appropriated to carry out this section shall remain 
        available until expended.
            (2) Reservation of amounts for training and information 
        activities.--Of the amounts appropriated pursuant to paragraph 
        (1) for any fiscal year, the Secretary shall reserve not more 
        than 0.5 percent for use only to carry out the training and 
        information activities referred to in subsection (c).

SEC. 636. USE OF GRANT AMOUNTS.

    (a) Buffalo, New York.--Notwithstanding any other provision of law, 
the City of Buffalo, New York, may retain amounts provided under an 
urban development action grant under section 119 of the Housing and 
Community Development Act of 1974 for Project No. B-87-AA-36-0540 and 
use such funds for the Towne Gardens Plaza project, and may retain 
amounts provided under such a grant for Project No. B-87-AA-36-0521 and 
use such funds for the American Axle project, if such projects are 
commenced not later than 6 months after the date of the enactment of 
this Act.
    (b) Pittsburgh, Pennsylvania.--Notwithstanding any other provision 
of law, the city of Pittsburgh, Pennsylvania, may retain any amounts 
provided under an urban development action grant for Project No. B-86-
AA-42-0275 and use such funds for the Central Pittsburgh Plaza project, 
if such project is commenced not later than 6 months after the date of 
the enactment of this Act.
    (c) Richmond, Virginia.--The Secretary of Housing and Urban 
Development shall cancel the indebtedness of the city of Richmond, 
Virginia, relating to the categorical program settlement grant provided 
to the city to settle four urban renewal programs (Project No. B-78-UR-
51-0019). The city of Richmond, Virginia, is hereby relieved of all 
liability to the Federal Government for such grant and any fees and 
charges payable in connection with such grant.
    (d) Lockport Township, Illinois.--The Secretary of Housing and 
Urban Development shall cancel the indebtedness of Lockport Township, 
Illinois, relating to the public facilities loan for Project No. ILL-
11-PFL0112. Lockport Township, Illinois, is hereby relieved of all 
liability to the Federal Government for the outstanding principal 
balance on such loan, the amount of accrued interest on such loan, and 
any other fees and charges payable in connection with such loan.
    (e) Budget Compliance.--Subsections (c) and (d) of this section 
shall be effective only to the extent, or in such amounts, as are 
provided in appropriation Acts.

            TITLE VII--REGULATORY AND MISCELLANEOUS PROGRAMS

SEC. 701. FAIR HOUSING INITIATIVES PROGRAM.

    Section 561(g) of the Housing and Community Development Act of 1987 
(42 U.S.C. 3616 note) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out the provisions of this section $26,000,000 
for fiscal year 1995 and $27,000,000 for fiscal year 1996, of which--
            ``(1) not less than $9,000,000 for fiscal year 1995 and 
        $9,000,000 for fiscal year 1996 shall be for private 
        enforcement initiatives authorized under subsection (b), 
        divided equally between activities specified under subsection 
        (b)(1) and those specified under subsection (b)(2);
            ``(2) not less than $3,000,000 for fiscal year 1995 and 
        $3,000,000 for fiscal year 1996 shall be for qualified fair 
        housing enforcement organizations authorized under subsection 
        (c)(1);
            ``(3) not less than $7,000,000 for fiscal year 1995 and 
        $7,000,000 for fiscal year 1996 shall be for the creation of 
        new fair housing enforcement organizations authorized under 
        subsection (c)(2); and
            ``(4) not less than $7,000,000 for fiscal year 1995 and 
        $7,000,000 for fiscal year 1996 shall be for education and 
        outreach programs authorized under subsection (d), to be 
        divided equally between activities specified under subsection 
        (d)(1) and those specified under subsections (d)(2) and (d)(3).
Any amount appropriated under this section shall remain available until 
expended.''.

SEC. 702. HUD PROGRAM MONITORING AND EVALUATION.

    The first sentence of section 7(r)(6) of the Department of Housing 
and Urban Development Act (42 U.S.C. 3535(r)(6)) is amended to read as 
follows: ``There are authorized to be appropriated to carry out this 
subsection such sums as may be necessary for fiscal years 1995 and 
1996.''.

SEC. 703. HUD SALARIES AND EXPENSES.

    Section 7(s) of the Department of Housing and Urban Development Act 
(42 U.S.C. 3535(s)) is amended to read as follows:
    ``(s) Authorization of Appropriations for Salaries and Expenses.--
Notwithstanding any other provision of law, there are authorized to be 
appropriated such sums as may be necessary for each of fiscal years 
1995 and 1996 for salaries and expenses to carry out the purposes of 
this section. There is also authorized to be appropriated for fiscal 
year 1996, $40,000,000, for the training, travel to training, 
continuing education, professional development, and improvement of 
skills of employees of the Department.''.

SEC. 704. USE OF TECHNICAL ASSISTANCE AMOUNTS BY OR FOR HUD STAFF.

    Section 7 of the Department of Housing and Urban Development Act 
(42 U.S.C. 3535) is amended by adding at the end the following new 
subsection:
    ``(t) Use of Technical Assistance Amounts.--The Secretary may 
transfer to any of the accounts of the Department for salaries and 
expenses from any other account from which amounts may be drawn for 
technical assistance such amounts as the Secretary determines are 
reasonable to reimburse such salaries and expenses account, but only if 
such reimbursement is made for expenditures for the costs of personal 
services, travel, and transportation, and other object classifications 
that are incurred for the technical assistance, training, and related 
activities provided by or to officials and employees of the Department 
for a program that is funded from such other account and in which the 
costs of technical assistance are otherwise eligible for expenditure. 
Up to 10 percent of the amount transferred may be used for technical 
assistance, training, travel, and related expenses provided to 
officials and employees of the Department. The authority under this 
subsection to transfer amounts shall be in addition to any other 
authority of the Secretary to transfer funds among accounts which 
exists on the date of the enactment of the Housing and Community 
Development Act of 1992 or is provided after such date.''.

SEC. 705. ANNUAL REPORT REGARDING REPEAL OF UNFUNDED PROGRAMS.

    Section 8 of the Department of Housing and Urban Development Act 
(42 U.S.C. 3536) is amended--
            (1) by inserting ``(a) In General.--'' after ``Sec. 8.''; 
        and
            (2) by adding at end the following new subsection:
    ``(b) Unfunded Programs.--In each annual report under this section, 
the Secretary shall--
            ``(1) identify each program under the jurisdiction of the 
        Department for which amounts have been authorized to be 
        appropriated for each of the 3 most recently completed fiscal 
        years but for which, for all 3 of such years, amounts have not 
        been appropriated; and
            ``(2) include proposed legislation repealing the provisions 
        of Federal law authorizing the programs identified pursuant to 
        paragraph (1) and providing requirements for the treatment, 
        after such repeal, of any assistance provided under such 
        provisions before the repeal.''.

SEC. 706. REQUIREMENTS FOR PARTICIPATION OF WOMEN IN CONSTRUCTION 
              ASSISTED UNDER HUD PROGRAMS.

    The Department of Housing and Urban Development Act (42 U.S.C. 3531 
et seq.) is amended by adding at the end the following new section:

``SEC. 15. REQUIREMENTS FOR PARTICIPATION OF WOMEN IN CONSTRUCTION 
              ASSISTED UNDER HUD PROGRAMS.

    ``(a) Bids.--Except as provided in subsection (c), each contractor 
submitting a bid or contract proposal for a covered construction 
contract (and each applicant for construction assistance that will 
carry out construction) shall include in the bid or proposal (or 
application for construction assistance) documentation sufficient to 
ensure that the contractor will comply with the requirements of this 
section or certifications that the contractor will make a good faith 
effort to comply with such requirements. The Secretary shall, by 
regulation, establish standards for such documentation and 
certifications and shall provide for contractors (and applicants) 
making certifications to periodically provide to the Secretary evidence 
of such good faith efforts.
    ``(b) Participation Requirements.--Any contractor who enters into a 
covered construction contract (and any recipient of construction 
assistance carrying out construction), and any subcontractor thereof, 
shall employ and maintain the employment of construction trades workers 
in construction covered by the covered construction contract (or 
assisted with the construction assistance)--
            ``(1) for any contractor or subcontractor (or recipient of 
        construction assistance) whose total number of employees is not 
        less than 6 and not more than 19, not less than 1 woman; and
            ``(2) for any contractor or subcontractor (or recipient of 
        construction assistance) whose total number of employees is 20 
        or more, a number of women that is not less than 10 percent of 
        the positions in each of the construction trades performed by 
        the contractor or subcontractor (or recipient of construction 
        assistance).
    ``(c) Exemption for Small Contractors.--Any contractor (or 
recipient) whose total number of employees is 5 or less shall not be 
subject to the requirements of this section.
    ``(d) Definitions.--For purposes of this section:
            ``(1) The term `construction assistance' means any 
        assistance provided under any program administered by the 
        Secretary that is used for any construction, but does not 
        include mortgage insurance under the National Housing Act.
            ``(2) The term `construction trades workers' means workers 
        in any construction trade, including--
                    ``(A) brickmasons, stonemasons, and tile setters;
                    ``(B) carpenters;
                    ``(C) electricians and power transmission 
                installers;
                    ``(D) painters, paperhangers, and plasterers;
                    ``(E) plumbers, pipefitters, and steamfitters;
                    ``(F) carpet installers;
                    ``(G) drywall installers and drywall finishers;
                    ``(H) concrete and terrazzo finishers;
                    ``(I) glaziers;
                    ``(J) insulation workers;
                    ``(K) paving, surfacing, and tamping equipment 
                operators;
                    ``(L) roofers;
                    ``(M) sheetmetal duct installers;
                    ``(N) structural metal workers;
                    ``(O) power equipment operators (including truck 
                drivers, and backhoe, bulldozer, crane, loader, and 
                grader operators);
                    ``(P) sprinkler installers;
                    ``(Q) elevator installers;
                    ``(R) laborers; and
                    ``(S) landscapers.
            ``(3) The term `contractor' includes firms, partnerships, 
        corporations, and any other persons, and any combination 
        thereof.
            ``(4) The term `covered construction contract' means an 
        agreement to provide labor and related materials, supplies, or 
        services for any construction that--
                    ``(A) involves any construction assistance; and
                    ``(B) if such construction assistance is provided--
                            ``(i) under the community development block 
                        grant program under title I of the Housing and 
                        Community Development Act of 1974 or the HOME 
                        Investment Partnerships Act, involves a total 
                        project cost of not less than $100,000; or
                            ``(ii) under any other program administered 
                        by the Secretary, involves a total project cost 
                        of not less than $200,000.
            ``(5) The term `subcontractor' means any firm, partnership, 
        corporation, or any other person, or any combination thereof, 
        who enters into a contract or agreement with a contractor to 
        perform a substantial specified portion of a covered 
        construction contract.''.

SEC. 707. NOTIFICATION OF HUD FUNDING AWARDS.

    Section 102(a)(1) of the Department of Housing and Urban 
Development Reform Act of 1989 (42 U.S.C. 3545(a)(1)) is amended by 
adding at the end the following new sentence: ``Each notice of the 
availability of assistance shall include an estimate of the date by 
which the Department will notify applicants for such assistance whose 
applications or requests for assistance are approved of such 
approval.''.

SEC. 708. EXCLUSION OF GNMA FROM HUD PERSONNEL CEILINGS.

    Section 502(a) of the Housing Act of 1948 (12 U.S.C. 1701c(a)) is 
amended by adding at the end the following new sentence: 
``Notwithstanding any other provision of law, employees of the 
Government National Mortgage Association Department in the Department 
of Housing and Urban Development shall not be considered employees of 
the Department for purposes of any limitation on the number of 
employees of the Department.''.

SEC. 709. HUD RESEARCH AND DEVELOPMENT.

    The second sentence of section 501 of the Housing and Urban 
Development Act of 1970 (12 U.S.C. 1701z-1) is amended to read as 
follows: ``There are authorized to be appropriated to carry out this 
title $40,000,000 for fiscal year 1995 and $42,000,000 for fiscal year 
1996.''.

SEC. 710. PREVENTING FRAUD AND ABUSE IN RURAL RENTAL HOUSING PROGRAM.

    (a) In General.--Section 904 of the Stewart B. McKinney Homeless 
Assistance Amendments Act of 1988 (42 U.S.C. 3544) is amended--
            (1) in the heading for the section, by inserting ``and 
        rural rental housing program'' before the period at the end;
            (2) by striking paragraph (1) of subsection (a) and 
        inserting the following new paragraph:
            ``(1) Secretary concerned.--The term `Secretary concerned' 
        means--
                    ``(A) the Secretary of Housing and Urban 
                Development, with respect to programs of the Department 
                of Housing and Urban Development; and
                    ``(B) the Secretary of Agriculture, with respect to 
                the program for rural rental housing under section 515 
                of the Housing Act of 1949.'';
            (3) in subsection (b), in the matter preceding paragraph 
        (1), by inserting after ``income,'' the following: ``and as a 
        condition of initial or continuing eligibility for 
        participation in the program for rural rental housing under 
        section 515 of the Housing Act of 1949,'';
            (4) in subsection (c)(2)(A)--
                    (A) by inserting before ``from the improper'' the 
                following: ``or the program for rural rental housing 
                under section 515 of the Housing Act of 1949''; and
                    (B) by inserting before ``and (in'' the following: 
                ``and the Department of Agriculture'';
            (5) in the last sentence of subsection (c)(3)(A), by 
        inserting ``an officer or employee of the Department of 
        Agriculture,'' after ``Development,'';
            (6) in subsection (e), by inserting after ``Development'' 
        the following: ``or the program for rural rental housing under 
        section 515 of the Housing Act of 1949,'';
            (7) in subsection (a)(2), in the matter in subsection (b) 
        that precedes paragraph (1), and in paragraphs (1) and (2) of 
        subsection (b), by striking ``the Secretary'' each place it 
        appears and inserting ``the Secretary concerned''; and
            (8) in subsection (b)(3)--
                    (A) by striking ``the Secretary authorizing the 
                Secretary'' and inserting ``the Secretary concerned 
                authorizing the Secretary concerned''; and
                    (B) by striking ``of the Secretary'' and inserting 
                ``of the Secretary concerned''.
    (b) Access to Records.--Section 303(i)(1) of the Social Security 
Act (42 U.S.C. 503(i)(1)) is amended--
            (1) in subparagraph (A), in the matter preceding clause 
        (i)--
                    (A) by inserting ``or the Department of 
                Agriculture, as applicable,'' before ``and to 
                representatives'';
                    (B) by inserting ``of Housing and Urban Development 
                or in the program for rural rental housing under 
                section 515 of the Housing Act of 1949'' after ``by the 
                Department''; and
                    (C) by inserting ``or the Secretary of Agriculture, 
                as applicable'' before the dash at the end; and
            (2) in subparagraph (B), by inserting ``or under the 
        program for rural rental housing under section 515 of the 
        Housing Act of 1949'' before the period at the end.
    (c) Return Information.--Section 6103(l)(7)(D)(ix) of the Internal 
Revenue Code of 1986 is amended--
            (1) by inserting ``and the program for rural rental housing 
        under section 515 of the Housing Act of 1949'' after 
        ``income,'';
            (2) by inserting ``or the Secretary of Agriculture, as 
        applicable,'' after ``Secretary of Housing and Urban 
        Development''; and
            (3) by inserting ``or the Department of Agriculture'' 
        before ``with respect to''.

SEC. 711. NATIONAL INSTITUTE OF BUILDING SCIENCES.

    The second sentence of section 809(i) of the Housing and Community 
Development Act of 1974 (12 U.S.C. 1701j-2(i)) is amended to read as 
follows: ``In addition to the amounts authorized to be appropriated 
under the first sentence of this subsection, there are authorized to be 
appropriated to the Institute to carry out the provisions of this 
section $2,000,000 for fiscal year 1995 and $2,000,000 for fiscal year 
1996.''.

SEC. 712. RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION.

    (a) Target Housing Hazard Reduction.--
            (1) Authorization of appropriations.--Section 1011(p) of 
        the Housing and Community Development Act of 1992 (42 U.S.C. 
        4852(p)) is amended to read as follows:
    ``(p) Authorization of Appropriations.--For the purposes of 
carrying out this Act, there are authorized to be appropriated 
$100,000,000 for fiscal year 1995 and $110,000,000 for fiscal year 
1996.''.
            (2) Technical assistance and capacity building.--Section 
        1011(g) of the Housing and Community Development Act of 1992 
        (42 U.S.C. 4852(g)) is amended--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by inserting 
                        before the period at the end the following: ``, 
                        by providing technical assistance, either 
                        directly, or indirectly under contracts or 
                        otherwise''; and
                            (ii) by striking the second sentence; and
                    (B) by striking paragraph (2) and inserting the 
                following new paragraph:
            ``(2) Set-aside.--Of the total amount approved in 
        appropriation Acts under subsection (p), there shall be set 
        aside to carry out this subsection $3,000,000 for fiscal year 
        1995 and $3,000,000 for fiscal year 1996.''.
    (b) HUD Research.--
            (1) Conducting of research.--Section 1052 of the Housing 
        and Community Development Act of 1992 (42 U.S.C. 4854a) is 
        amended by inserting after ``other Federal agencies,'' the 
        following: ``either directly, or indirectly under contract or 
        otherwise,''.
            (2) Funding.--Section 1053 of the Housing and Community 
        Development Act of 1992 (42 U.S.C. 4854b) is amended to read as 
        follows:

``SEC. 1054. FUNDING.

    ``Of the total amount approved in appropriation Acts under section 
1011(p), there shall be set aside to carry out this part $5,000,000 for 
fiscal year 1995 and $5,000,000 for fiscal year 1996.''.
            (3) Other activities.--Part 1 of subtitle D of title X of 
        the Housing and Community Development Act of 1992 (42 U.S.C. 
        4854 et seq.) is amended by inserting after section 1052 the 
        following new section:

``SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVITIES.

    ``The Secretary may use amounts available to carry out this part to 
undertake, either directly, or indirectly under contract or otherwise, 
pursuant to title V of the Housing and Urban Development Act of 1970, 
such studies, tests (including pilot tests of new or revised programs), 
evaluations, demonstrations, education of the public, and preparation 
of training materials, as are consistent with the purposes of this 
Act.''.

SEC. 713. GAO STUDY OF LEAD-BASED PAINT DETECTION TECHNOLOGIES AND 
              TENANT NOTIFICATION PROCEDURES.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the lead-based paint detection and abatement 
programs of the Department of Housing and Urban Development, which 
shall include--
            (1) analysis of existing lead-based paint detection 
        technologies including an analysis of the effectiveness of x-
        ray fluorescence analyzers (in this section referred to as 
        ``XRF'');
            (2) evaluation of the qualifications of XRF contractors and 
        whether national certification standards should be imposed;
            (3) analysis of whether the 1.0 mg/cm<SUP>2 action level 
        for lead paint, as directed in section 302 of the Lead-Based 
        Paint Poisoning Prevention Act, is too high to adequately 
        protect tenant health, and in conduction such analysis, the 
        Comptroller General shall consult with the Consumer Product 
        Safety Commission, the Department of Health and Human Services, 
        and the Environmental Protection Agency; and
            (4) evaluation of the effectiveness of tenant notification 
        procedures of the Department of Housing and Urban Development 
        pursuant to a finding of lead-based paint in public housing.
    (b) Report.--Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit to the Congress a report describing the results of 
the study required by subsection (a).

SEC. 714. CIVIL MONEY PENALTIES FOR VIOLATIONS OF HOME MORTGAGE 
              DISCLOSURE ACT BY NONSUPERVISED MORTGAGEES.

    Section 305 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 
2804) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by inserting ``and'' at the 
                end;
                    (B) in paragraph (3), by striking ``; and'' at the 
                end and inserting a period; and
                    (C) by striking paragraph (4);
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Powers of the Secretary of Housing and Urban Development.--
            ``(1) In general.--The Secretary of Housing and Urban 
        Development (in this subsection referred to as the `Secretary') 
        shall enforce compliance with the requirements imposed under 
        this title with regard to lending institutions not described in 
        subsection (b).
            ``(2) Civil money penalties.--Pursuant to paragraph (1) of 
        this subsection, the Secretary may impose a civil money penalty 
        for failure to comply with the requirements of this title.
            ``(3) Amount of penalty.--The amount of the penalty, as 
        determined by the Secretary, may not exceed $5,000 for each 
        violation, except that the maximum penalty for all violations 
        by any particular lending institution during any 1-year period 
        shall not exceed $1,000,000.
            ``(4) Violations for which a penalty may be imposed.--A 
        civil money penalty may be imposed for the late submission of a 
        report, failure to submit a report, submission of an illegible 
        report, submission of an erroneous report, and failure to 
        submit a corrected report for a report that was illegible or 
        erroneous.
            ``(5) Agency procedures.--
                    ``(A) Establishment.--The Secretary shall establish 
                standards and procedures governing the imposition of 
                civil money penalties under this section. The standards 
                and procedures shall provide for the Secretary to make 
                the determination to impose the penalty or to use an 
                administrative entity (such as the Mortgagee Review 
                Board, established pursuant to section 202(c) of the 
                National Housing Act) to make the determination; shall 
                provide for the imposition of a penalty only after the 
                lending institution has been given an opportunity for a 
                hearing on the record; and may provide for review by 
                the Secretary of a determination or order, or 
                interlocutory ruling, arising from a hearing.
                    ``(B) Final orders.--If no hearing is requested 
                within 15 days of receipt of the notice of opportunity 
                for hearing, the imposition of the penalty shall 
                constitute a final and unappealable determination. If 
                the Secretary reviews the determination or order, the 
                Secretary may affirm, modify, or reverse that 
                determination or order. If the Secretary does not 
                review the determination or order within 90 days of the 
                issuance of the determination or order, the 
                determination or order shall be final.
                    ``(C) Factors in determining amount of penalty.--In 
                determining the amount of a penalty under this 
                subsection, consideration shall be given to such 
                factors as the gravity of the offense, any history of 
                prior offenses, ability to pay the penalty, deterrence 
                of future violations, and such other factors as the 
                Secretary may determine to be appropriate.
                    ``(D) Reviewability of imposition of penalty.--The 
                Secretary's determination or order imposing a penalty 
                under this subsection shall not be subject to review, 
                except as provided in this subsection.
            ``(6) Judicial review of agency determination.--
                    ``(A) In general.--After exhausting all 
                administrative remedies established by the Secretary 
                under this subsection, a lending institution against 
                whom the Secretary has imposed a civil money penalty 
                under this subsection may obtain a review of the 
                penalty as may be addressed in the notice of 
                determination to impose a penalty in the appropriate 
                court of appeals of the United States, by filing in 
                such court, within 20 days after the entry of such 
                order or determination, a written petition praying that 
                the Secretary's determination or order be modified or 
                set aside in whole or in part.
                    ``(B) Objections not raised in hearing.--The court 
                shall not consider any objection that was not raised in 
                the hearing conducted pursuant to this subsection 
                unless a demonstration is made of extraordinary 
                circumstances causing the failure to raise the 
                objection. If any party demonstrates to the 
                satisfaction of the court that additional evidence not 
                presented at the hearing is material and that there 
                were reasonable grounds for the failure to present such 
                evidence at the hearing, the court shall remand the 
                matter to the Secretary for consideration of the 
                additional evidence.
                    ``(C) Scope of review.--The decisions, findings, 
                and determinations of the Secretary shall be reviewed 
                pursuant to section 706 of title 5, United States Code.
                    ``(D) Order to pay penalty.--Notwithstanding any 
                other provision of law, in any such review, the court 
                shall have the power to order payment of the penalty 
                imposed by the Secretary.
            ``(7) Action to collect penalty.--If a lending institution 
        fails to comply with the Secretary's determination or order 
        imposing a civil money penalty under this subsection, after the 
        determination or order is no longer subject to review as 
        provided by this subsection, the Secretary may bring an action 
        in an appropriate United States district court to obtain a 
        monetary judgment against the lending institution. In such an 
        action, the validity and appropriateness of the Secretary's 
        determination or order imposing the penalty shall not be 
        subject to review. The monetary judgment may, in the court's 
        discretion, include the attorneys fees and other expenses 
        incurred by the United States in connection with the action.
            ``(8) Settlement by secretary.--The Secretary may 
        compromise, modify, or remit any civil money penalty which may 
        be imposed under this subsection.
            ``(9) Regulations.--The Secretary shall issue such 
        regulations as the Secretary deems appropriate to implement 
        this subsection.
            ``(10) Deposit of penalties in treasury.--All civil money 
        penalties collected under this subsection shall be deposited in 
        the Miscellaneous Receipts Account of the Treasury.''.

SEC. 715. REMOVAL OF REGULATORY BARRIERS TO AFFORDABLE HOUSING.

    (a) Purposes.--Section 1202 of the Housing and Community 
Development Act of 1992 (42 U.S.C. 12705a) is amended--
            (1) in paragraph (1), by striking ``State and local 
        governments to further identify and remove'' and inserting 
        ``the further identification and removal of''; and
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) to encourage the establishment of partnerships 
        between local governments and builders and developers of 
        affordable housing to facilitate development of innovative land 
        use and building practices to overcome regulatory barriers.''.
    (b) Grants.--Section 1204 of the Housing and Community Development 
Act of 1992 (42 U.S.C. 12705c) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) In General.--The amounts available for use under this Act may 
be used for grants under subsections (b) and (c), for evaluation of 
grantees, and for contracts with intermediaries for the administration 
of such grants.'';
            (2) in subsection (b)--
                    (A) in the heading for the subsection, by striking 
                ``Grants'' and inserting ``and Regional Strategies for 
                Barrier Removal'';
                    (B) in matter preceding paragraph (1), by inserting 
                after ``States'' the following: ``, consortia of units 
                of general local government, associations of units of 
                general local government, and metropolitan or regional 
                governments'';
                    (C) in paragraph (3), by striking ``a State program 
                to reduce State and local'' and inserting ``State or 
                regional programs to reduce'';
                    (D) in paragraph (4), by inserting ``or local'' 
                after ``State'';
                    (E) in paragraph (5), by striking ``State''; and
                    (F) by striking paragraph (6) and inserting the 
                following new paragraph:
            ``(6) developing proposed legislation or administrative 
        policies for enactment by the State or local government 
        addressing expanded housing opportunity and barrier removal, 
        including implementation of active programs encouraging housing 
        opportunities for low- and moderate-income families through 
        activities such as comprehensive planning requirements, 
        metropolitan fair-share requirements for affordable housing, 
        inclusionary zoning legislation, establishment of new land 
        development standards, and review of zoning standards and 
        plans.'';
            (3) by striking subsection (c) and inserting the following 
        new subsection:
    ``(c) Barrier Removal Demonstration.--The Secretary may make grants 
to units of general local government to encourage the establishment of 
partnerships between local governments and builders and developers 
under which the local government commits to modify existing land use 
and building practices and the builder or developer agrees to use 
innovative land planning and development approaches to build affordable 
housing in ways which would overcome regulatory barriers. Assistance 
under this subsection may be used to assist the builder or developer 
obtain additional architectural, engineering, and land planning 
services to build affordable housing and to provide assistance to the 
locality in providing specialized review and in meeting technical 
responsibilities resulting from the removal of the regulatory barriers. 
During and after completion of these demonstration projects, the 
Secretary may evaluate the cost impact of the modified regulations and 
the long-term impact of the project on regulatory reform.'';
            (4) by striking subsections (d) through (g) and inserting 
        the following new subsection:
    ``(d) Application and Selection.--
            ``(1) Application.--The Secretary shall provide for the 
        form and manner of applications for grants under this section, 
        which in the case of grants under subsection (c), shall include 
        resolutions and other evidence by the applicable regulating 
        bodies evidencing commitments--
                    ``(A) to waive or modify existing applicable 
                zoning, building code, site planning, and other related 
                development requirements;
                    ``(B) to approve the project based upon an 
                individual review of the technical data, site plans, 
                and architectural submissions of the project, utilizing 
                the most recent research and practices of building 
                engineering and land development; and
                    ``(C) to accelerate development review and 
                processing.
            ``(2) Criteria for approval.--The Secretary shall establish 
        criteria for approval of applications under this subsection and 
        for the competitive selection of grantees under this 
        section.'';
            (5) in subsection (h), by striking ``State and unit of 
        general local government receiving'' and inserting ``recipient 
        of''; and
            (6) by redesignating subsections (h) and (i) as subsections 
        (e) and (f), respectively.
    (c) Reports.--Section 1207 of the Housing and Community Development 
Act of 1992 (42 U.S.C. 12705a note) is amended by striking ``this Act'' 
and inserting ``the Housing and Community Development Act of 1994''.
    (d) CDBG Special Purpose Grants.--Section 107(b) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307(b)) is amended by 
inserting at the end the following new paragraph:
            ``(9) to eligible grantees, and for other purposes, under 
        the Removal for Regulatory Barriers to Affordable Housing Act 
        of 1992.''.

SEC. 716. NEW TOWNS DEMONSTRATION PROGRAM FOR EMERGENCY RELIEF OF LOS 
              ANGELES.

    (a) Insurance Authority.--The first sentence of section 1104(d) of 
the Housing and Community Development Act of 1992 (42 U.S.C. 5318 note) 
is amended to read as follows: ``To the extent provided in 
appropriation Acts, the Secretary shall use any authority provided 
pursuant to section 531(b) of the National Housing Act to enter into 
commitments to insure loans and mortgages under this section in fiscal 
years 1995 and 1996 with an aggregate principal amount not exceeding 
such sums as may be necessary to carry out the demonstration under this 
title.''.
    (b) Second Mortgage Assistance.--Section 1105(e) of the Housing and 
Community Development Act of 1992 (42 U.S.C. 5318 note) is amended to 
read as follows:
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996 such sums as may be 
necessary for providing assistance under this section.''.
    (c) Community Development Assistance.--Section 1106(h) of the 
Housing and Community Development Act of 1992 (42 U.S.C. 5318 note) is 
amended to read as follows:
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996 such sums as may be 
necessary for assistance under this section.''.

SEC. 717. AUTHORIZATION OF APPROPRIATIONS FOR PUBLIC SERVICES FACILITY.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal year 1995 such sums as may be necessary for a 
grant by the Secretary of Housing and Urban Development to the City of 
Springfield, Massachusetts (in this section referred to as the 
``City''), for the redevelopment of a facility formerly used as a 
United States Post Office for use as a consolidated facility for city 
public services in accordance with the plans, budgets, and timetables 
for such facility developed by the City.
    (b) City Contribution.--Notwithstanding any other provision of this 
section, the Secretary may not make any amount provided pursuant to 
this section available to the City unless the City contributes for 
redevelopment of the facility referred to in subsection (a) an amount 
constituting not less than 25 percent of the total cost of the 
redevelopment project.
    (c) Availability of Amounts.--Of any amounts appropriated pursuant 
to this section, the Secretary shall provide $2,500,000 to the City in 
fiscal year 1995 and the remainder shall remain available until the end 
of fiscal 1996 and shall be provided to the City in such year.
    (d) Reports.--The Secretary may require the City to submit such 
reports and other information as the Secretary considers necessary to 
ensure that the amounts provided under this section are used in 
accordance with this section and that amounts are provided by the City 
in accordance with subsection (b).

SEC. 718. NATIONAL AMERICAN INDIAN HOUSING COUNCIL.

    There is authorized to be appropriated for assistance for the 
National American Indian Housing Council $1,000,000 for fiscal year 
1995 and $1,000,000 for fiscal year 1996, for providing training and 
technical assistance to Indian Housing Authorities.

SEC. 719. HOUSING ASSISTANCE COUNCIL.

    There is authorized to be appropriated for assistance for the 
Housing Assistance Council $5,000,000 for fiscal year 1995 and 
$5,000,000 for fiscal year 1996, for providing training, technical 
assistance, and financial assistance to develop affordable housing in 
rural areas.

SEC. 720. DEMONSTRATION PROGRAM FOR OUTREACH TO AVOID DISCONNECTION OF 
              UTILITIES.

    (a) Action of Secretary.--The Secretary of Housing and Urban 
Development shall provide technical advice and assistance to Maryland 
Energy Advocates to establish and carry out a program under (b).
    (b) Outreach Program.--The program under this subsection shall be a 
program, carried out by Maryland Energy Advocates, to--
            (1) identify low-income families living in Baltimore, 
        Maryland, and the surrounding areas, including low-income 
        families residing in housing for which assistance is provided 
        by the Federal Government, whose electricity or other utility 
        services have been disconnected because of failure to pay 
        amounts owed;
            (2) provide counseling and advice to such families 
        regarding utility payments, family budgeting, sources and 
        programs of assistance for utility payments, and such other 
        matters as may be necessary to avoid the disconnection of 
        utility service in the future; and
            (3) determine the most effective manners of identifying 
        low-income families in need of advice or assistance to avoid 
        disconnection of utility services and the most effective 
        actions to help low-income families avoid such disconnection.
    (c) Report.--After consultation with Maryland Energy Advocates 
regarding the implementation and results of the program under 
subsection (b), but not later than the expiration of the 18-month 
period beginning on the date of the enactment of this Act, the 
Secretary of Housing and Urban Development shall submit a report to the 
Congress that--
            (1) describes the program and the activities carried out 
        under the program;
            (2) describes the extent to which the utility services of 
        low-income families are disconnected; and
            (3) identifies the most effective manners of identifying 
        low-income families in need of advice or assistance to avoid 
        disconnection of utility services and the most effective 
        actions to help low-income families avoid such disconnection, 
        including any such actions appropriate for the Federal 
        Government.

SEC. 721. FEDERAL DEPOSIT INSURANCE CORPORATION AFFORDABLE HOUSING 
              PROGRAM.

    (a) Reauthorization.--Section 40(b) of the Federal Deposit 
Insurance Act (12 U.S.C. 1831q(b)) is amended--
            (1) in paragraph (1), by striking ``during'' and all that 
        follows through ``paragraph (2)(A)'' and inserting ``until the 
        end of fiscal year 1997'';
            (2) in paragraph (2)(A), in the matter preceding clause 
        (i), by striking ``3-year''; and
            (3) in paragraph (2)(C), by striking ``3-year''.
    (b) Facilitation of Program.--Section 40 of the Federal Deposit 
Insurance Act is amended by adding at the end the following new 
subsection:
    ``(r) Facilitation of Program.--Notwithstanding any provision of 
this section or any other provision of law, the Corporation shall be 
considered to be in compliance with this section if (in the sole 
discretion of the Corporation) the Corporation at any time modifies, 
amends, or waives any provisions of this section to maximize the 
efficient use of amounts appropriated to carry out this section. The 
Corporation shall not be subject to suit for any failure to comply with 
the requirements of this section.''.

SEC. 722. STATE AGENCIES AS SURETIES.

    Section 9304 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) State Agencies.--A State agency, including any financing 
authority established by any State, which meets the requirements of 
paragraphs (2) and (3) of subsection (a) may be treated as a surety 
corporation for purposes of this chapter.''.

    TITLE VIII--HOUSING PROGRAMS UNDER STEWART B. MCKINNEY HOMELESS 
                             ASSISTANCE ACT

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Stewart B. McKinney Homeless 
Housing Assistance Amendments Act of 1994''.

                     Subtitle A--Housing Assistance

  CHAPTER 1--REORGANIZATION OF CERTAIN MCKINNEY ACT HOUSING PROVISIONS

SEC. 811. FLEXIBLE GRANT PROGRAM.

    Title IV of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11361 et seq.) is amended--
            (1) by striking subtitles A, B, C, D, and F;
            (2) by striking the headings for subtitles E and G;
            (3) by redesignating sections 441 (as amended by the 
        preceding provisions of this Act), 491, and 592 (as added by 
        section 1414 of the Housing and Community Development Act of 
        1992) as sections 451, 453, and 454, respectively;
            (4) by striking sections 442 and 443; and
            (5) by inserting after the heading for the title the 
        following:

                  ``Subtitle A--Flexible Grant Program

                    ``CHAPTER 1--GENERAL PROVISIONS

``SEC. 401. PURPOSES.

    ``The purposes of this subtitle are to--
            ``(1) expand and reorganize the Federal commitment to 
        alleviate homelessness by providing States, Indian tribes, and 
        localities with the resources to more efficiently and 
        effectively design a comprehensive system to address the 
        shelter, service, and permanent housing needs of homeless 
        individuals and families in the United States;
            ``(2) help very low-income families avoid becoming 
        homeless;
            ``(3) meet the emergency shelter needs of homeless persons 
        and families;
            ``(4) provide transitional or specialized permanent housing 
        to facilitate the movement of homeless persons and families to 
        independent living;
            ``(5) provide supportive services to help homeless persons 
        and families lead independent and dignified lives;
            ``(6) encourage the cooperation and participation of the 
        States and units of general local government, together with 
        private nonprofit organizations, in planning and implementing 
        comprehensive homeless assistance programs;
            ``(7) reduce the costs to States, units of general local 
        government, and private nonprofit organizations in applying for 
        and using Federal housing assistance for families and persons 
        who are homeless; and
            ``(8) begin meeting the needs of most of the Nation's 
        homeless population through the existing Federal programs 
        providing basic assistance for low-income families and persons.

``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
            ``(1) $635,000,000 for fiscal year 1995 for grants in 
        accordance with section 813 of the Housing and Community 
        Development Act of 1994; and
            ``(2) $786,620,000 for fiscal year 1996 for grants under 
        this subtitle.
Any amounts appropriated pursuant to this section shall remain 
available until expended.

``SEC. 403. DEFINITIONS.

    ``For purposes of this subtitle, the following definitions shall 
apply:
            ``(1) The term `allocation unit of general local 
        government' means a metropolitan city and an urban county.
            ``(2) The term `applicant' means an eligible grantee that 
        submits an application under section 408 for a grant under this 
        subtitle.
            ``(3) The term `disability' means--
                    ``(A) a disability as defined in section 223 of the 
                Social Security Act;
                    ``(B) to be determined to have, pursuant to 
                regulations issued by the Secretary, a physical, 
                mental, or emotional impairment which (i) is expected 
                to be a long-continued and indefinite duration, (ii) 
                substantially impedes an individual's ability to live 
                independently, and (iii) of such a nature that such 
                ability could be improved by more suitable housing 
                conditions;
                    ``(C) a developmental disability as defined in 
                section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act; or
                    ``(D) the disease of acquired immunodeficiency 
                syndrome or any conditions arising from the etiologic 
                agency for acquired immunodeficiency syndrome.
        Subparagraph (D) shall not be construed to limit eligibility 
        under subparagraphs (A) through (C) or the provisions referred 
        to in subparagraphs (A) through (C).
            ``(4) The term `eligible grantee' means--
                    ``(A) an allocation unit of general local 
                government, Indian Tribe, or insular area that elects 
                to administer a grant under section 410(a)(1);
                    ``(B) a public agency or a private nonprofit 
                organization (or a consortium of such organizations) 
                designated by the Secretary under section 410(a)(3) to 
                administer grant amounts for an allocation unit of 
                general local government, Indian tribe, or insular 
                area;
                    ``(C) an entity eligible to receive grant amounts 
                from the Secretary under section 410(a)(4);
                    ``(D) a State that elects under section 
                410(b)(1)(A) to administer a grant;
                    ``(E) a unit of general local government selected 
                under section 410(b)(5) to receive grant amounts from 
                the Secretary; and
                    ``(F) a private nonprofit organization selected 
                under section 410(b)(4) to receive grant amounts from 
                the Secretary.
            ``(5) The term `families' has the same meaning given the 
        term under section 3(b) of the United States Housing Act of 
        1937.
            ``(6) The term `grantee' means--
                    ``(A) an allocation unit of general local 
                government, Indian Tribe, or insular area that receives 
                a grant under this subtitle and administers the grant 
                under section 410(a)(1);
                    ``(B) an allocation unit of general local 
                government, Indian tribe, or insular area that receives 
                a grant under this subtitle and designates a public 
                agency or private nonprofit organization (or a 
                consortium of such organizations) to administer grant 
                amounts for the jurisdiction under section 410(a)(2);
                    ``(C) a public agency or a private nonprofit 
                organization (or a consortium or such organizations) 
                designated by the Secretary under section 410(a)(3) to 
                administer grant amounts for an allocation unit of 
                general local government, Indian tribe, or insular 
                area, and that receives grant amounts under this 
                subtitle;
                    ``(D) an entity that receives grant amounts from 
                the Secretary under section 410(a)(4);
                    ``(E) a State that receives grant amounts under 
                this subtitle and administers such amounts under 
                section 410(b)(1)(A);
                    ``(F) a unit of general local government that 
                receives grant amounts from the Secretary under section 
                410(b)(5); and
                    ``(G) a private nonprofit organization that 
                receives grant amounts from the Secretary under section 
                410(b)(4);
            ``(7) The term `homeless family' means a group of one or 
        more related individuals who are homeless individuals.
            ``(8) The term `Indian tribe' means any Indian tribe, band, 
        group, and nation, including Alaska Indians, Aleuts, and 
        Eskimos, and any Alaskan Native Village, of the United States, 
        which is considered an eligible recipient under the Indian 
        Self-Determination and Education Assistance Act or was 
        considered an eligible recipient under chapter 67 of title 31, 
        United States Code, before the repeal of such chapter.
            ``(9) The term `insular area' means the Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.
            ``(10) The term `low-demand services and referrals' means 
        the provision of health care, mental health, substance abuse, 
        and other supportive services and referrals for services in a 
        noncoercive manner, which may include medication management, 
        education, counseling, job training, and assistance in 
        obtaining entitlement benefits and in obtaining other 
        supportive service including mental health treatment and 
        substance abuse treatment.
            ``(11) The term `metropolitan city' has the meaning given 
        the term in section 102(a) of the Housing and Community 
        Development Act of 1974.
            ``(12) The term `operating costs' means expenses of 
        operating any housing assisted under this subtitle with respect 
        to--
                    ``(A) the administration, maintenance, repair, and 
                security of such housing;
                    ``(B) utilities, fuels, furnishings, and equipment 
                for such housing; and
                    ``(C) the conducting of the assessments of and the 
                provision of supportive services to the residents of 
                such housing.
            ``(13) The term `outpatient health services' means 
        outpatient health care, outpatient mental health services, 
        outpatient substance abuse services, case management services 
        and child immunization.
            ``(14) The term `private nonprofit organization' means an 
        organization--
                    ``(A) no part of the net earnings of which inures 
                to the benefit of any member, founder, contributor, or 
                individual;
                    ``(B) that has a voluntary board;
                    ``(C) that has an accounting system or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                    ``(D) that practices nondiscrimination in the 
                provision of assistance.
            ``(15) The term `project' means a structure or a portion of 
        a structure that is acquired or rehabilitated with assistance 
        provided under this subtitle or with respect to which the 
        Secretary provides technical assistance or annual payments for 
        operation costs.
            ``(16) The term `project sponsor' means an entity that--
                    ``(A) provides housing or assistance for homeless 
                individuals or families by carrying out eligible 
                activities under chapter 2 that are assisted under this 
                subtitle; and
                    ``(B) meets such minimum standards as the Secretary 
                considers appropriate.
            ``(17) The term `recipient' means a grantee (other than a 
        State distributing grant amounts to State recipients) and a 
        State recipient.
            ``(18) The term `Secretary' means the Secretary of Housing 
        and Urban Development.
            ``(19) The term `State' means a State of the United States 
        and the Commonwealth of Puerto Rico, or any agency or 
        instrumentality thereof that is established pursuant to 
        legislation and designated by the chief executive to act on 
        behalf of the jurisdiction with regard to provisions of this 
        subtitle.
            ``(20) The term `State recipient' means--
                    ``(A) a unit of general local government within a 
                State (other than an allocation unit of general local 
                government) that receives grant amounts from the State 
                under section 410(b)(3); and
                    ``(B) a private nonprofit organization that 
                receives grant amounts from a State under section 
                410(b)(4).
            ``(21)(A) The term `supportive services' means assistance 
        that--
                    ``(i) addresses the special needs of homeless 
                person, such as deinstitutionalized persons, families 
                with children, persons with mental disabilities, other 
                persons with disabilities, the elderly, and veterans 
                intended to be served by a project; and
                    ``(ii) assists in accomplishing the purposes of the 
                different types of housing for the homeless eligible 
                for assistance under this subtitle.
            ``(B) Such term includes--
                    ``(i) food services, child care, substance abuse 
                treatment, assistance in obtaining permanent housing, 
                outpatient health services, employment counseling, 
                nutritional counseling, security arrangements for the 
                protection of residents of facilities to assist the 
                homeless, and such other services essential for 
                maintaining or moving toward independent living as the 
                Secretary determines to be appropriate; and
                    ``(ii) assistance to homeless persons in obtaining 
                other Federal, State, and local assistance available 
                for such individuals, including public assistance 
                benefits, mental health benefits, employment 
                counseling, and medical assistance.
                    ``(C) Such term does not include the provision of 
                major medical equipment.
                    ``(D) All or part of the supportive services may be 
                provided directly by the project sponsor or by 
                arrangements with other public or private service 
                providers.
            ``(22) The term `unit of general local government' means--
                    ``(A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State;
                    ``(B) the District of Columbia; and
                    ``(C) any agency or instrumentality thereof that is 
                established pursuant to legislation and designated by 
                the chief executive to act on behalf of the 
                jurisdiction with regard to provisions of this 
                subtitle.
        The term includes a consortium of geographically contiguous 
        units of general local government if the Secretary determines 
        that the consortium--
                    ``(i) has sufficient authority and administrative 
                capability to carry out the purposes of this subtitle 
                on behalf of its member jurisdictions; and
                    ``(ii) will, according to a written certification 
                by the State (or State, if the consortium includes 
                jurisdictions in more than one State), direct its 
                activities to alleviation of problems of homeless 
                individuals or families within the State or States.
            ``(23) The term `urban county' has the meaning given the 
        term in section 102(a) of the Housing and Community Development 
        Act of 1974.
            ``(24) The term `very low-income families' has the same 
        meaning given the term under section 104 of the Cranston-
        Gonzalez National Affordable Housing Act.

``SEC. 404. PROVISION OF GRANTS.

    ``(a) Authority and Use.--The Secretary may make grants to eligible 
grantees in accordance with the provisions of this subtitle. Grants 
under this subtitle may be used only--
            ``(1) to carry out activities under chapter 2 for assisting 
        homeless individuals and families that are conducted to provide 
        comprehensive homeless assistance required under section 405; 
        and
            ``(2) for administrative expenses, to the extent provided 
        in section 436.
    ``(b) General Rule for Award of Grants.--Except as provided in 
subsection (c), the Secretary shall make grants using amounts 
appropriated under section 402 in the manner provided in this subtitle.
    ``(c) Insufficient Appropriations.--
            ``(1) Trigger.--If the amounts appropriated pursuant to 
        section 402 for any fiscal year are less than 50 percent of the 
        amount authorized to be appropriated under such section for the 
        year, the Secretary shall use such amounts to make grants under 
        the provisions of this title as in effect immediately before 
        the enactment of the Housing and Community Development Act of 
        1994.
            ``(2) Grant requirements.--The Secretary shall establish 
        requirements for grants made under this subsection, as the 
        Secretary considers appropriate, that are additional or 
        alternative to the requirements under the provisions of this 
        title as in effect immediately before the enactment of the 
        Housing and Community Development Act of 1994.
            ``(3) Grant criteria.--The criteria for awarding grants 
        under this subsection shall include--
                    ``(A) the extent to which there is a need for 
                assistance for homeless individuals and families in the 
                jurisdiction in which the grant will be used;
                    ``(B) the extent to which the activities proposed 
                to be carried out with grant amounts will further the 
                provision of comprehensive homeless assistance required 
                under section 405(b)(1);
                    ``(C) the extent to which private nonprofit 
                organizations providing assistance to homeless 
                individuals and families in the jurisdiction have been, 
                and will be, included in planning for the receipt of 
                assistance under this subtitle, the development of the 
                application under section 408, and the execution of the 
                proposed activities; and
                    ``(D) such other criteria as the Secretary 
                considers appropriate to further the purposes of this 
                subsection and this subtitle.
            ``(4) Set aside for indian tribes and insular areas.--In 
        making grants under this subsection, the Secretary may to set 
        aside such amounts as the Secretary considers appropriate for 
        grants for Indian tribes and insular areas.

``SEC. 405. COMPREHENSIVE HOMELESS ASSISTANCE.

    ``(a) Establishment and Maintenance.--Each applicant shall, based 
on information provided in the current comprehensive affordable housing 
strategy for the appropriate jurisdiction under section 105 of the 
Cranston-Gonzalez National Affordable Housing Act or such other plan as 
the Secretary may prescribe, use assistance provided under this 
subtitle in a manner that ensures that comprehensive homeless 
assistance is established and maintained within the jurisdiction of the 
applicant.
    ``(b) Requirements.--For purposes of this subtitle, comprehensive 
homeless assistance required under this section shall include--
            ``(1) providing a system of outreach and assessment for--
                    ``(A) determining whether an individual or family 
                is homeless, needs assistance to avoid being homeless, 
                or needs other assistance; and
                    ``(B) ensuring that individuals and families so 
                identified receive appropriate housing and supportive 
                services;
            ``(2) providing assistance to the extent necessary to avoid 
        eviction (or foreclosure) and termination of utility services 
        of low- and very low-income families to prevent such families 
        from becoming homeless;
            ``(3) making emergency shelters with appropriate supportive 
        services available to the extent necessary to ensure that 
        homeless individuals and families for which such housing is 
        appropriate receive adequate shelter, including during any 
        period in which an assessment referred to in paragraph (1) is 
        performed for such an individual or family;
            ``(4) making transitional housing with appropriate 
        supportive services available to the extent necessary to ensure 
        that homeless individuals and families for which such housing 
        is appropriate are prepared for increased responsibility and 
        permanent housing, or permanent supportive housing, after the 
        transition period;
            ``(5) making permanent supportive housing, available to the 
        extent necessary to meet the long-term housing needs of all 
        homeless individuals and families;
            ``(6) providing assistance to meet specific needs of 
        various subpopulations of the homeless, especially the unique 
        needs of homeless veterans; and
            ``(7) providing for coordination of assistance provided 
        under this subtitle and assistance provided under other 
        Federal, State, and local programs that may be used to assist 
        homeless individuals and families, including--
                    ``(A) assistance under the programs for public and 
                Indian housing and section 8 rental assistance under 
                the United States Housing Act of 1937 (including the 
                program for section 8 assistance for moderate 
                rehabilitation under section 451 of this Act and the 
                shelter plus care program for such assistance under 
                section 452 of this Act), the HOME Investment 
                Partnerships Act, the community development block grant 
                program under title I of the Housing and Community 
                Development Act of 1974, the program for supportive 
                housing for the elderly under section 202 of the 
                Housing Act of 1959, the program for supportive housing 
                for persons with disabilities under section 811 of the 
                Cranston-Gonzalez National Affordable Housing Act, and 
                the program for housing opportunities for persons with 
                AIDS under subtitle D of title VIII of the Cranston-
                Gonzalez National Affordable Housing Act;
                    ``(B) programs administered by the Director of the 
                Federal Emergency Management Agency;
                    ``(C) programs administered by the Secretary of 
                Labor, including programs for employment and training;
                    ``(D) programs administered by the Secretary of 
                Health and Human Services, including programs for 
                health care, mental health care, social services, 
                income support services, runaway youth, and unfit 
                transient facilities;
                    ``(E) programs administered by the Secretary of 
                Veterans Affairs (including programs for compensation 
                benefits, health care, and mental health care, and 
                other services and programs) that are specifically 
                designed to assist homeless veterans;
                    ``(F) programs administered by the Secretary of 
                Education, including programs for adult education and 
                education for homeless children and youth;
                    ``(G) programs administered by the Corporation for 
                National and Community Service, including programs for 
                national service; and
                    ``(H) such other assistance as the Secretary shall 
                prescribe upon consultation with the Interagency 
                Council on the Homeless.

``SEC. 406. MATCHING REQUIREMENTS.

    ``(a) In General.--Except as provided in subsection (c), each 
recipient shall supplement the amount of grants provided under this 
subtitle to the recipient with an equal amount of funds from non-
Federal sources, which shall include funds from project sponsors 
receiving assistance from the recipient.
    ``(b) Supplemental Funds.--Supplemental funds may include (1) the 
value of any donated material or building, the value of any lease on a 
building, (2) any salary paid to staff to carry out the program of a 
project sponsor, (3) the value of the time and services contributed by 
volunteers to carry out the program of project sponsor at a rate 
determined by the Secretary, and (4) the proceeds from bond financing 
validly issued by a State or unit of general local government, agency, 
or instrumentality thereof, and repayable with revenues derived from a 
project assisted under this subtitle, except that not more than 25 
percent of the contribution required may be derived from the proceeds 
of such bond financings. Any State or local government funds used 
independently from the program under this title, or designated for such 
use, to assist the homeless by carrying out activities that would be 
eligible for assistance under this subtitle shall be considered 
supplemental funds under this section.
    ``(c) States.--
            ``(1) Required supplementation.--Except as provided in 
        paragraph (3), in the case of a State administering grant 
        amounts under section 410(b)(1)(A), in each fiscal year, the 
        State shall supplement the amount of grants provided under this 
        subtitle with an amount of funds from sources other than this 
        subtitle equal to the difference between the amount received 
        under this subtitle and $100,000.
            ``(2) Benefit of match.--Each grantee that is a State shall 
        obtain any supplemental amounts required under paragraph (1) 
        from State recipients receiving amounts under the grant in a 
        manner so that the benefit of the $100,000 subtrahend under 
        paragraph (1) is appropriately divided among State recipients 
        for which providing such supplemental amounts would--
                    ``(A) create a significant hardship for the 
                recipient; or
                    ``(B) interfere with the overall purpose of the 
                homeless assistance program of the recipient.
            ``(3) Exception.--If, in any fiscal year, a State receives 
        $100,000 or less in grant amounts under this subtitle, 
        paragraph (1) shall not apply to the State for the fiscal year.
    ``(d) Certification.--Each recipient shall certify, to the 
satisfaction of the Secretary, its compliance with the provisions of 
this section, which shall describe the sources and amounts of 
supplemental funds provided pursuant to this section.

``SEC. 407. RESPONSIBILITIES OF RECIPIENTS AND PROJECT SPONSORS.

    ``(a) Use of Assistance Through Private Nonprofit Organizations.--
Each recipient shall make available more than 50 percent of the grant 
amounts it receives for any fiscal year to project sponsors that are 
private nonprofit organizations to carry out eligible activities under 
chapter 2, except that the Secretary may waive the applicability of 
this requirement if the recipient demonstrates to the Secretary that 
the requirement interferes with the ability of the recipient to provide 
assistance under this subtitle because of a paucity of qualified 
private nonprofit organizations in the jurisdiction of the recipient.
    ``(b) Housing Quality.--Each recipient shall ensure that housing 
assisted with grant amounts provided under this subtitle is decent, 
safe, and sanitary and, when appropriate, complies with all applicable 
State and local housing codes, building codes, and licensing 
requirements in the jurisdiction in which the housing is located.
    ``(c) Prevention of Undue Benefit.--The Secretary may prescribe 
such terms and conditions as the Secretary considers necessary to 
prevent project sponsors from unduly benefiting from the sale or other 
disposition of projects other than a sale or other disposition 
resulting in the use of the project for the direct benefit of very low-
income families.
    ``(d) Confidentiality.--Each recipient shall develop and implement 
procedures to ensure the confidentiality of records pertaining to any 
individual provided family violence prevention or treatment services 
under any project and to ensure that the address or location or any 
family violence shelter project assisted with grant amounts under this 
subtitle will, except with written authorization of the person or 
person responsible for the operation of such shelter, not be made 
public.
    ``(e) Employment of Homeless Individuals.--To the maximum extent 
practicable, the Secretary shall ensure that recipients involve, 
through employment, volunteer services, or otherwise, homeless 
individuals and families in constructing, renovating, maintaining, and 
operating facilities assisted with grant amounts under this subtitle, 
in providing services so assisted, and in providing services for 
occupants of facilities so assisted.
    ``(f) Participation of Homeless Individuals.--The Secretary shall, 
by regulation, provide that each recipient shall require each project 
sponsor receiving assistance under this subtitle from the recipient to 
provide for the participation of not less than one homeless individual 
or formerly homeless individual on the board of directors or other 
equivalent policy making entity of the project sponsor, to the extent 
that such entity considers and makes policies and decision regarding 
any project, facility, services, or other activities assisted with 
grant amounts under this subtitle. A recipient may grant waivers to 
project sponsors unable to meet the requirement under the preceding 
sentence if the project sponsor agrees to otherwise consult with 
homeless or formerly homeless individuals in considering and making 
such policies and decisions.

``SEC. 408. APPLICATION.

    ``(a) Requirement.--Except as otherwise provided in section 404(c), 
the Secretary may make a grant under this subtitle only to an eligible 
grantee that submits an application under this section that is approved 
by the Secretary.
    ``(b) Form and Procedure.--Applications shall be submitted in such 
form and in accordance with such procedures as the Secretary shall, by 
regulation, establish.
    ``(c) Content.--An application under this section shall--
            ``(1) include a detailed description, based on information 
        provided in the current comprehensive housing affordability 
        strategy under section 105 of the Cranston-Gonzalez National 
        Affordable Housing Act for the appropriate jurisdiction or such 
        other plan as the Secretary may prescribe, of--
                    ``(A) the existing population of homeless 
                individuals and families for the jurisdiction of the 
                applicant; and
                    ``(B) the existing facilities and services designed 
                to assist such population;
            ``(2) include a detailed description of the comprehensive 
        homeless assistance under section 405 to be established and 
        maintained within the jurisdiction of the applicant;
            ``(3) provide an assessment of what is required to 
        establish and maintain the provision of comprehensive homeless 
        assistance required under section 405 for the jurisdiction of 
        the applicant;
            ``(4) set forth a multiyear strategy for establishing and 
        maintaining the provision of comprehensive homeless assistance 
        for the jurisdiction, as described pursuant to paragraph (2), 
        and include timetables, goals, and budget estimates for 
        accomplishing each element of the strategy;
            ``(5) set forth a 1-year action plan that identifies all 
        activities to be carried out with assistance under this 
        subtitle and demonstrates how such activities will further the 
        strategy set forth pursuant to paragraph (4);
            ``(6) except in the case of an application by a State that 
        elects under section 410(b)(1)(A) to administer grants under 
        this subtitle, describe the means the applicant will use to 
        distribute grant amounts to project sponsors and whether such 
        amounts will be awarded on a competitive or noncompetitive 
        basis;
            ``(7) contain certifications or other such forms of proof 
        of commitments of financial and other resources from each 
        public agency or private nonprofit organization that has a role 
        in establishing and maintaining the provision of comprehensive 
        homeless assistance for the jurisdiction of the applicant, 
        required under section 405;
            ``(8) contain assurances satisfactory to the Secretary that 
        activities carried out under chapter 2 with grant amounts under 
        this subtitle will comply with the requirements of this 
        subtitle;
            ``(9) in the case of an application by a State that elects 
        to under section 410(b)(1)(A) administer grants under this 
        subtitle, describe the method of distribution of such amounts 
        to State recipients;
            ``(10) except with respect to an application by a State 
        that elects to under section 410(b)(1)(A) to administer grants 
        under this subtitle, contain a certification from the public 
        official responsible for submitting the comprehensive housing 
        affordability strategy under section 105 of the Cranston-
        Gonzalez National Affordable Housing Act for the State or unit 
        of general local government within which a project is to be 
        located (or such other plan as the Secretary may require) that 
        the proposed project is consistent with the approved housing 
        strategy of such State or unit of general local government;
            ``(11) contain a certification that the applicant will 
        comply with the requirements of the Fair Housing Act, title VI 
        of the Civil Rights Act of 1964, section 504 of the 
        Rehabilitation Act of 1973, and the Age Discrimination Act of 
        1975, and will affirmatively further fair housing; and
            ``(12) contain a certification that the applicant will 
        comply with the requirements of this subtitle and other 
        applicable laws.
    ``(d) Relationship to CHAS and Consolidated Plan.--In establishing 
requirements for applications under this section, the Secretary shall 
provide that if an applicant includes in the application information 
also required under the comprehensive housing affordability strategy 
for the appropriate jurisdiction under section 105 of the Cranston-
Gonzalez National Affordable Housing Act or such other plan as the 
Secretary may require, the requirements under such subsection regarding 
such information shall be considered to be fulfilled by the submission 
of the application.

``SEC. 409. ALLOCATION AND DISTRIBUTION OF FUNDS.

    ``(a) Insular Areas.--In each fiscal year, from any amounts 
appropriated for such year to carry out this subtitle, the Secretary 
shall allocate amounts to insular areas in accordance with an 
allocation formula established by the Secretary.
    ``(b) States and Allocation Units of General Local Government.--
            ``(1) Formula allocation.--
                    ``(A) In general.--For each fiscal year, of the 
                amounts that remain after amounts are reserved for 
                insular areas under subsection (a), the Secretary shall 
                allocate assistance according to this paragraph.
                    ``(B) Formula.--The Secretary shall allocate 
                amounts under this paragraph using a formula 
                established by the Secretary that allocates amounts for 
                allocation units of general local government and 
                States, and for Indian tribes, in a manner that 
                provides that the percentage of the total amount 
                referred to in subparagraph (A) for any fiscal year 
                that is allocated for any State or allocation unit of 
                general local government, or for Indian tribes, is 
                equal to the percentage of the total amount available 
                for section 106 of the Housing and Community 
                Development Act of 1974 for the prior fiscal year that 
                was allocated for such State or allocation unit of 
                general local government, or for Indian tribes.
                    ``(C) Minimum amount.--If, in any fiscal year, 
                allocation under the provisions of subparagraphs (A) 
                and (B) would result in any allocation unit of general 
                local government receiving a grant of less than 0.05 
                percent of the amounts appropriated to carry out this 
                subtitle for the fiscal year, such amount shall instead 
                be reallocated to the State for use under section 
                410(b).
                    ``(D) 70 percent for units of general local 
                government.--In each fiscal year, the amount allocated 
                under this paragraph for each allocation unit of 
                general local government shall be the amount that 
                results from increasing all of the amounts determined 
                pursuant to the preceding subparagraphs for allocation 
                units of general local government on a pro rata basis 
                so that the sum of such amounts is equal to 70 percent 
                of the remainder of the amount appropriated for the 
                year to carry out this subtitle after amounts are 
                allocated for insular areas under subsection (a).
                    ``(E) 30 percent for states.--In each fiscal year, 
                the amount allocated under this paragraph for each 
                State shall be the amount that results from decreasing 
                all of the amounts determined pursuant to the preceding 
                subparagraphs for States on a pro rata basis so that 
                the sum of such amounts is equal to 30 percent of the 
                remainder of the amount appropriated for the year to 
                carry out this subtitle after amounts are allocated for 
                insular areas under subsection (a).
            ``(2) Grant amount for states and allocation units of 
        general local government.--
                    ``(A) In general.--The amount allocated for a 
                fiscal year under paragraph (1) for an allocation unit 
                of general local government or a State shall be the 
                maximum amount that the allocation unit or State may 
                receive under this subtitle for the fiscal year.
                    ``(B) Reduction.--In any fiscal year, the Secretary 
                may provide a grant under this subtitle for a State or 
                for an allocation unit of general local government in 
                an amount less than the amount allocated under 
                paragraph (1), if the Secretary determines based upon 
                review of the application of the jurisdiction under 
                section 408 or as a result of the annual performance 
                review and audit under section 413, that the 
                jurisdiction has failed to comply fully with the 
                requirements under section 408 or 411 or that such 
                action is otherwise appropriate.
    ``(c) Reallocations.--Any amounts that a State or an allocation 
unit of general local government is eligible to receive for a fiscal 
year under subsection (b) that are not received for use in the 
jurisdiction, as provided by subsections (a) and (b) of section 410, or 
that become available as a result of actions under section 413(b), 
shall be added to amounts available for allocation under this section 
for the succeeding fiscal year.

``SEC. 410. ADMINISTRATION OF PROGRAM.

    ``(a) Grants to Allocation Units of General Local Government, 
Indian Tribes, and Insular Areas.--
            ``(1) In general.--Except as provided in paragraphs (2), 
        (3), and (4), an allocation unit of general local government, 
        Indian tribe, or insular area shall administer grant amounts 
        for any fiscal year received under section 409 by such 
        grantees.
            ``(2) Administration by designees of jurisdiction.--
                    ``(A) Authority to elect.--An allocation unit of 
                general local government, Indian tribe, or insular area 
                may elect for any fiscal year to designate a public 
                agency or a private nonprofit organization (or a 
                consortium of such organizations) to administer grant 
                amounts under section 409 for the jurisdiction.
                    ``(B) Election requirements.--The Secretary shall 
                prescribe the manner and time for making an election 
                under subparagraph (A), and shall establish criteria 
                for the approval of agencies and organizations 
                designated, which shall require such agencies and 
                organizations to demonstrate experience of the entity 
                in providing assistance to homeless individuals and 
                families in the jurisdiction.
                    ``(C) Direct provision of assistance.--The 
                Secretary may, at the request of the jurisdiction, 
                provide grant amounts directly to the agency or 
                organization designated under this paragraph.
            ``(3) Administration by designees of secretary.--If an 
        allocation unit of general local government, Indian tribe, or 
        insular area, or (if appropriate) a public agency or private 
        nonprofit organization designated by the jurisdiction under 
        paragraph (2), does not receive a grant under section 409 for 
        any fiscal year because of failure to meet the application 
        requirements of section 408, the Secretary may designate an 
        agency or organization meeting the criteria established under 
        paragraph (2)(B) to receive the grant.
            ``(4) Administration by secretary.--If for any fiscal year 
        the Secretary determines that the grant amounts allocated under 
        section 409 for an allocation unit of general local government, 
        Indian tribe, or insular area will not be used in the 
        jurisdiction as provided by the preceding provisions of this 
        subsection, the Secretary may administer such amounts for the 
        jurisdiction. The Secretary shall prescribe such procedures and 
        requirements as the Secretary considers appropriate for 
        administering grant amounts under this paragraph.
    ``(b) Grants to States.--
            ``(1) In general.--To receive an allocation under section 
        409, each State shall elect--
                    ``(A) to administer grant amounts received under 
                section 409, as provided in paragraphs (2) and (3); or
                    ``(B) to have the Secretary administer such grant 
                amounts for the State, as provided in paragraph (5).
        If a State elects to administer grant amounts under 
        subparagraph (A), the election shall be irrevocable.
            ``(2) State program.--A State administering grant amounts 
        as provided in paragraph (1)(A)--
                    ``(A) shall distribute the amounts remaining after 
                use in accordance with subparagraph (B) to State 
                recipients for use under this subtitle;
                    ``(B) may use up to 15 percent of the grant amounts 
                received under section 409 to carry out its own 
                homeless assistance program under this subtitle, except 
                that--
                            ``(i) such amounts may only be used for 
                        eligible activities under chapter 2 for which 
                        States are eligible recipients under this 
                        subtitle; and
                            ``(ii) the Secretary may increase the 
                        percentage limitation under this subparagraph 
                        in the case of any State homeless assistance 
                        program that is limited to providing assistance 
                        in areas of the State that are not allocation 
                        units of general local government; and
                    ``(C) may retain not to exceed 5.0 percent of the 
                amount to be distributed under subparagraph (A) to 
                State recipients to defray the cost of carrying out its 
                responsibilities under this subtitle.
        Unless a State demonstrates to the satisfaction of the 
        Secretary that the needs for assistance for activities under 
        this subtitle in areas of the State that are not allocation 
        units of general local government have been fulfilled, grant 
        amounts received by State may only be used to carry out 
        activities in areas of the State that do not include allocation 
        units of general local government.
            ``(3) Distribution of amounts to state recipients.--
                    ``(A) Choice of administration.--A State 
                administering grant amounts as provided in paragraph 
                (1)(A) shall, for each fiscal year, afford each such 
                recipient the options of--
                            ``(i) administering the grant amounts on 
                        its own behalf;
                            ``(ii) designating a public agency or a 
                        private nonprofit organization (as provided by 
                        subsection (a)(2)) to administer the grant 
                        amounts for the jurisdiction; or
                            ``(iii) entering into an agreement with the 
                        State, in consultation with private nonprofit 
                        organizations providing assistance to homeless 
                        individuals and families in the jurisdiction, 
                        under which the State will administer the grant 
                        amounts for the jurisdiction.
                A recipient may choose to exercise such options at such 
                time and in accordance with such criteria as the 
                Secretary may prescribe.
                    ``(B) Direct provision of assistance.--A State may, 
                at the request of the State recipient, provide grant 
                amounts directly to the agency or organization 
                designated under subparagraph (A)(ii).
                    ``(C) Distribution of amounts.--The State shall 
                distribute amounts to State recipients (or to agencies 
                or organizations designated under subparagraph (A)(ii), 
                as appropriate) on the basis of an application 
                containing such information as the State may prescribe. 
                Each application shall evidence an intent to establish 
                and maintain the provision of comprehensive homeless 
                assistance in the jurisdiction of the recipient, except 
                that the State may waive this requirement with respect 
                to one or more proposed activities, where the State 
                determines that--
                            ``(i) the activities are necessary to meet 
                        the needs of homeless individuals and families 
                        within the jurisdiction; and
                            ``(ii) comprehensive homeless assistance is 
                        not necessary, due to the nature and extent of 
                        homelessness in the jurisdiction.
                    ``(D) Preference for certain state recipients.--In 
                selecting State recipients and making awards under 
                subparagraph (C), the State shall give preference to 
                applications that demonstrate higher relative levels of 
                homeless need and fiscal distress.
            ``(4) State or hud administration of grants for individual 
        state recipients.--If in any fiscal year a State distributes 
        grant amounts to a State recipient, but the recipient fails to 
        receive the amounts pursuant to paragraph (3)(A), the Secretary 
        or the State, as the Secretary may provide, may distribute the 
        amounts to private nonprofit organizations in the jurisdiction. 
        If the Secretary distributes the amounts, the Secretary shall 
        deduct the amounts distributed from the grant provided to the 
        State for the fiscal year.
            ``(5) HUD administration of state program.--If a State 
        elects pursuant to paragraph (1)(B) to have the Secretary 
        administer grant amounts for the State received under section 
        409, the Secretary may distribute grant amounts to State 
        recipients for the State, in accordance with requirements and 
        procedures prescribed by the Secretary. The Secretary shall 
        establish criteria for selecting recipients and making awards 
        under this paragraph, which shall include giving preference to 
        applications that demonstrate higher relative levels of 
        homeless need and fiscal distress.

``SEC. 411. CITIZEN PARTICIPATION.

    ``(a) In General.--Each grantee who is not a State recipient shall 
ensure that citizens, and appropriate private nonprofit organizations 
and other interested groups and entities, participate fully in 
developing and carrying out the program for providing assistance under 
this subtitle in the jurisdiction of the recipient. The Secretary shall 
prescribe such requirements to carry out this section as the Secretary 
deems appropriate, which shall include requirements applicable to the 
homeless assistance planning boards referred to in subsection (b) and 
the citizen participation provisions of subsection (c), and the timing 
of, and sequence for, carrying out the requirements of such 
subsections.
    ``(b) Homeless Assistance Planning Boards.--
            ``(1) Establishment.--As a condition of a grantee who is 
        not a State recipient receiving assistance under this subtitle, 
        the chief executive officer of the appropriate unit government 
        in the jurisdiction of the grantee shall establish a homeless 
        assistance planning board under this subsection.
            ``(2) Functions.--Each board under this subsection shall 
        assist the recipient in--
                    ``(A) determining whether grant amounts of the 
                grantee should be administered by the grantee, a public 
                agency or private nonprofit organization, or the State 
                or the Secretary, under subsections (a) and (b) of 
                section 410;
                    (B) developing the application under section 408;
                    (C) overseeing the activities carried out with 
                assistance under this subtitle; and
                    (D) evaluating the performance of the grantee (and 
                recipients of the grantee) in carrying out such 
                activities.
            ``(3) Membership.--Each board under this subsection shall 
        consist of members appointed by the chief executive officer 
        referred to in paragraph (1) (subject to recommendations in 
        accordance with paragraph (4)), and shall include--
                    ``(A) not less than one member representing 
                homeless individuals and families;
                    ``(B) not less than one member representing 
                homeless advocates;
                    ``(C) not less than one member representing 
                individuals and entities providing assistance to 
                homeless individuals and families, including agencies 
                of units of general local government providing Federal 
                assistance;
                    ``(D) not less than one member representing the 
                business community;
                    ``(E) not less than 1 member representing labor;
                    ``(F) not less than one member who is a community 
                representative;
                    ``(G) not less than one member of the local board 
                established for the jurisdiction for purposes of 
                allocating amounts under the emergency food and shelter 
                program of the Federal Emergency Management Agency;
                    ``(H) not less than one member representing the 
                grantee; and
                    ``(I) in the case of a grantee that is a State--
                            ``(i) one member representing the State 
                        agency or instrumentality dealing with mental 
                        health; and
                            ``(ii) one member representing the State 
                        agency or instrumentality dealing with 
                        education.
            ``(4) Distribution of membership.--Not less than 50 percent 
        of the members of each board under this subsection (including 
        the members required under subparagraphs (A), (B), (C), and (G) 
        of paragraph (3)) shall be individuals who were recommended for 
        membership by individuals and entities other than a unit of 
        general local government or any agency thereof.
            ``(5) Board review.--
                    ``(A) Applicants.--No eligible grantee may submit 
                an application to the Secretary under section 408, and 
                no grantee may submit to the Secretary a performance 
                report under subsection 413(a), unless the board under 
                this subsection for the jurisdiction of the grantee has 
                reviewed, and been provided an opportunity to include 
                any comments of the board in, the application or 
                report.
                    ``(B) State recipients.--No State recipient may 
                submit an application under section 410(b)(3) or a 
                performance report to a State, unless the board under 
                this subsection for the jurisdiction has reviewed, and 
                been provided an opportunity to include any comments of 
                the board in, the application or report.
            ``(6) Review by secretary.--A member or members of the 
        board under this subsection for a jurisdiction or other members 
        of the community may request the Secretary to review process 
        for constituting or operating the board to determine whether 
        the process is fair. If the Secretary finds that the process is 
        unfair and submits a written justification to the board within 
        15 days of the request for review, the Secretary may disapprove 
        the application under section 408 for the jurisdiction or 
        refuse to accept a performance report under section 413(a).
            ``(7) Conflicts of interest.--The Secretary shall prescribe 
        standards governing potential conflicts of interest under which 
        members of boards under this subsection may participate in 
        activities carried out under this subtitle.
    ``(c) Involvement of Citizens and Others.--
            ``(1) In general.--Each recipient shall--
                    ``(A) make available to its citizens, public 
                agencies, and other interested parties information 
                concerning the amount of assistance the jurisdiction 
                expects to receive and the range of activities that may 
                be undertaken with the assistance;
                    ``(B) publish the proposed application in a manner 
                that, in the determination of the Secretary, affords 
                affected citizens, public agencies, and other 
                interested parties a reasonable opportunity to examine 
                its content and to submit comments on it;
                    ``(C) hold one or more public hearings to obtain 
                the views of citizens, public agencies, and other 
                interested parties on the housing needs of the 
                jurisdiction; and
                    ``(D) provide citizens, public agencies, and other 
                interested parties with reasonable access to records 
                regarding any uses of any assistance the recipient may 
                have received under this subtitle during the preceding 
                5 years.
            ``(2) Notice and comment.--Before submitting any 
        performance report under section 413(a) or any substantial 
        amendment to an application under section 408, a recipient 
        shall provide citizens with reasonable notice of, and 
        opportunity to comment on, the performance report or 
        application.
            ``(3) Consideration of comments.--A recipient shall 
        consider any comments or views of citizens in preparing a final 
        application, amendment to an application, or performance report 
        for submission. A summary of such comments or views shall be 
        attached when an application, amendment to an application, or 
        performance report is submitted. The submitted application, 
        amendment, or report shall be made available to the public.
            ``(4) Authority of secretary.--The Secretary shall 
        establish procedures appropriate and practicable for providing 
        a fair hearing and timely resolution of citizen complaints 
        related to applications or performance reports under this 
        subtitle.
    ``(d) Requirements for Citizen Participation for State Recipients 
and Recipients of Amounts From the Secretary.--
            ``(1) State recipients.--The State may prescribe citizen 
        participation requirements comparable (to the extent 
        appropriate) to the requirements under the preceding provisions 
        of this section for cases in which a State distributes grant 
        amounts to State recipients, as provided in section 410(b)(2).
            ``(2) Recipients from secretary.--The Secretary may 
        prescribe citizen participation requirements comparable (to the 
        extent appropriate) to the requirements under the preceding 
        provisions of this section for cases in which the Secretary--
                    ``(A) administers the grant amounts of an 
                allocation unit of general local government, as 
                provided in section 410(a)(4); or
                    ``(B) distributes grant amounts to recipients, as 
                provided in paragraph (3), (4), or (5) of section 
                410(b).
            ``(3) Inapplicable laws.--The Federal Advisory Committee 
        Act and section 12 of the Department of Housing and Urban 
        Development Act shall not apply with respect to the actions of 
        the Secretary referred to in paragraph (2). The Secretary shall 
        establish appropriate standards under this paragraph to ensure 
        the integrity of the process for awarding assistance.

``SEC. 412. APPLICABILITY OF OTHER PROVISIONS.

    ``(a) Flood Elevation Requirements.--Flood protection standards 
applicable to housing acquired, rehabilitated, or assisted under this 
subtitle shall be no more restrictive than the standards applicable to 
any other program administrated by the Secretary.
    ``(b) Environmental Protection.--The provisions of, and regulations 
and procedures applicable under, section 104(g) of the Housing and 
Community Development Act of 1974 shall apply to assistance and 
projects under this subtitle.
    ``(c) GAO Audits.--Insofar as they relate to funds provided under 
this subtitle, the financial transactions of grantees and project 
sponsors may be audited by the General Accounting Office under such 
rules and regulations as may be prescribed by the Comptroller General 
of the United States. The representatives of the General Accounting 
Office shall have access to all books, accounts, records, reports, 
files and other papers, things, or property belonging to, or in use by 
such grantees, and project sponsors pertaining to the financial 
transactions and necessary to facilitate the audit.

``SEC. 413. REPORTS, REVIEWS, AND AUDITS.

    ``(a) Grantee Performance Report.--Each grantee shall submit to the 
Secretary a performance and evaluation report concerning the use of 
funds made available under this subtitle. The report shall be submitted 
at such time and contain such information as the Secretary shall 
prescribe, and shall be made available to the relevant boards referred 
to in section 411(b) and to citizens, public agencies, and other 
interested parties in the jurisdiction of the grantee in sufficient 
time to permit the board and the citizens, public agencies, and other 
interested parties to comment on the report before submission.
    ``(b) Reviews and Audits.--The Secretary shall, at least on an 
annual basis, make such reviews and audits as may be necessary or 
appropriate to determine--
            ``(1) in the case of a grantee (other than a grantee 
        referred to in paragraph (2)), whether the grantee--
                    ``(A) has carried out its activities in a timely 
                manner;
                    ``(B) has made progress toward establishing and 
                maintaining the comprehensive homeless assistance 
                system in conformity with its application under this 
                subtitle;
                    ``(C) has carried out its activities and 
                certifications in accordance with the requirements of 
                this subtitle and other applicable laws; and
                    ``(D) has a continuing capacity to carry out its 
                activities in a timely manner; and
            ``(2) in the case of States distributing grant amounts to 
        State recipients, whether the State--
                    ``(A) has distributed amounts to State recipients 
                in a timely manner and in conformance with the method 
                of distribution described in its application;
                    ``(B) has carried out its activities and 
                certifications in compliance with the requirements of 
                this subtitle and other applicable laws; and
                    ``(C) has made such reviews and audits of the State 
                recipients as may be necessary or appropriate to 
                determine whether they have satisfied the applicable 
                performance criteria contained in paragraph (1).
The Secretary may make appropriate adjustments in the amount of grants 
in accordance with the Secretary's findings under this subsection. With 
respect to assistance made available for State recipients, the 
Secretary may adjust, reduce, or withdraw such assistance, or take 
other action as appropriate in accordance with the Secretary's reviews 
and audits under this subsection, except that amounts already properly 
expended on eligible activities under this subtitle shall not be 
recaptured or deducted from future assistance to such recipients.

``SEC. 414. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

    ``(a) In General.--No person in the United States shall on the 
ground of race, color, national origin, religion, or sex be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity funded in whole or in part 
with funds made available under this subtitle. Any prohibition against 
discrimination on the basis of age under the Age Discrimination Act of 
1975 or with respect to an otherwise qualified handicapped individual, 
as provided in section 504 of the Rehabilitation Act of 1973, shall 
also apply to any such program or activity.
    ``(b) Limitations.--
            ``(1) Indian tribes.--No grant may be made under this 
        subtitle to an Indian tribe unless the applicant provides 
        satisfactory assurances that its program will be conducted and 
        administered in conformity with title II of Public Law 90-284. 
        The Secretary may waive, in connection with grants to Indian 
        tribes, the provisions of subsection (a).
            ``(2) Hawaiian home lands.--The provisions of this subtitle 
        relating to discrimination on the basis of race shall not apply 
        to the provision of assistance under this subtitle to the 
        Hawaiian Home Lands.

``SEC. 415. CONSULTATION.

    ``In carrying out the provisions of this subtitle, including the 
issuance of regulations, the Secretary shall consult with other Federal 
agencies administering programs affecting homeless individuals and 
families through the Interagency Council on the Homeless established 
under title II.

``SEC. 416. RECORDS, REPORTS, AND AUDITS.

    ``(a) Keeping of Records.--Any recipient (including a State 
distributing grant amounts to State recipients as provided in section 
410(b)(2)) shall keep such records as may be reasonably necessary--
            ``(1) to disclose the amounts and the disposition of the 
        grant amounts; and
            ``(2) to ensure compliance with the requirements of this 
        subtitle.
    ``(b) Access to Documents by Secretary.--The Secretary shall have 
access for the purpose of audit and examination to any books, 
documents, papers, and records of any recipient specified in subsection 
(a) that are pertinent to grant amounts received in connection with, 
and the requirements of, this subtitle.
    ``(c) Access to Documents by Comptroller General.--The Comptroller 
General of the United States, or any of the duly authorized 
representatives of the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of any recipient specified in subsection (a) that are pertinent 
to grant amounts received in connection with, and the requirements of, 
this subtitle.

``SEC. 417. REPORTS TO CONGRESS.

    ``The Secretary shall submit a report to the Congress annually, 
summarizing the activities carried out under this subtitle and setting 
forth the findings, conclusions, and recommendations of the Secretary 
as a result of the activities. The report shall be submitted not later 
than 4 months after the end of each fiscal year (except that, in the 
case of fiscal year 1995, the report shall be submitted not later than 
6 months after the end of the fiscal year).

                    ``CHAPTER 2--ELIGIBLE ACTIVITIES

``SEC. 431. HOMELESSNESS PREVENTION.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle for activities designed to help persons and families 
described in subsection (b) avoid becoming homeless, which shall 
include assistance for making mortgage payments, rental payments, and 
utility payments and any activities other than those found by the 
Secretary to be inconsistent with the purposes of this Act.
    ``(b) Requirements for Assistance.--Assistance may be provided 
under this section only to very low-income persons and families who 
have received eviction (or mortgage delinquency or foreclosure) notices 
or notices of termination of utility services and who--
            ``(1) are unable to make the required payments due to a 
        sudden reduction in income;
            ``(2) need such assistance to avoid the eviction or 
        termination of services; and
            ``(3) have a reasonable prospect of being able to resume 
        payments within a reasonable period of time.

``SEC. 432. EMERGENCY SHELTER.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle for--
            ``(1) the renovation, major rehabilitation, or conversion 
        of a building or buildings to be used as emergency shelters;
            ``(2) the provision of supportive services, if such 
        services do not supplant any services provided by the local 
        government during any part of the 12-month period ending on the 
        date of the commencement of the operation of the emergency 
        shelter; and
            ``(3) maintenance, operation, insurance, utilities, and 
        furnishings for emergency shelters.
    ``(b) Definition.--A project shall be considered emergency shelter 
for purposes of this section if the project is designed to provide 
overnight sleeping accommodations for homeless persons. An emergency 
shelter may include appropriate eating and cooking accommodations.
    ``(c) Program Requirements.--A recipient may use grant amounts 
under this subtitle for an emergency shelter project only if the 
project sponsor has agreed that it will--
            ``(1) in the case of assistance involving major 
        rehabilitation or conversion of a building, maintain the 
        building as a shelter for homeless individuals and families for 
        not less than a 10-year period unless, within such 10-year 
        period, the need for maintaining the building as a full-time 
        shelter ceases to exist and the building is used for the 
        remainder of such period to carry out other eligible activities 
        under this subtitle;
            ``(2) in the case of assistance involving rehabilitation 
        (other than major rehabilitation or conversion of a building), 
        maintain the building as a shelter for homeless individuals and 
        families for not less than a 3-year period; or
            ``(3) in the case of assistance involving only activities 
        described in paragraphs (2) and (3) of subsection (a), provide 
        services or shelter to homeless individuals and families at the 
        original site or structure or other sites or structures serving 
        the same general population for the period during which such 
        assistance is provided;
            ``(4) comply with the standards of habitability prescribed 
        under subsection (d) by the Secretary and (if applicable) the 
        State or unit of general local government; and
            ``(5) assist homeless persons in obtaining--
                    ``(A) appropriate supportive service, including 
                permanent housing, medical and mental health treatment, 
                counseling, supervision, and other services essential 
                for achieving independent living; and
                    ``(B) other Federal, State, local, and private 
                assistance available for homeless persons.
    ``(d) Minimum Standards of Habitability.--The Secretary shall 
prescribe such minimum standards of habitability as the Secretary 
determines to be appropriate to ensure that emergency shelters assisted 
under this section are environments that provide appropriate privacy, 
safety, and sanitary and other health-related conditions for homeless 
persons and families. Grantees may establish standards of habitability 
in addition to those prescribed by the Secretary.

``SEC. 433. SUPPORTIVE HOUSING FOR THE HOMELESS.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle to provide assistance to a project sponsor of supportive 
housing in the following manners:
            ``(1) Acquisition and rehabilitation.--Assistance may be 
        provided in the form of an advance in an amount not exceeding 
        cost of acquisition, substantial rehabilitation, or acquisition 
        and rehabilitation of an existing structure for use as 
        supportive housing. The repayment of any outstanding debt owed 
        on a loan made to purchase an existing structure shall be 
        considered to be a cost of acquisition eligible for an advance 
        under this paragraph if the structure was not used as 
        supportive housing before the receipt of assistance.
            ``(2) Moderate rehabilitation.--Assistance may be provided 
        in the form of a grant for moderate rehabilitation of an 
        existing structure for use as supportive housing. Assistance 
        under this paragraph shall not preclude assistance under 
        paragraph (1).
            ``(3) Operating costs.--Assistance may be provided in the 
        form of annual payments for operating costs of supportive 
        housing (including supportive housing that is newly constructed 
        with assistance provided from sources other than this subtitle) 
        in an amount not exceeding 75 percent of the annual operating 
        costs of such housing.
            ``(4) Technical assistance.--Technical assistance may be 
        provided in--
                    ``(A) establishing supportive housing in an 
                existing structure;
                    ``(B) operating supportive housing in existing 
                structures and in structures that are newly constructed 
                with assistance provided from sources other than this 
                subtitle; and
                    ``(C) providing supportive services to the 
                residents of supportive housing (including supportive 
                housing that is newly constructed with assistance 
                provided from sources other than this subtitle).
            ``(5) Employment assistance program.--Assistance may be 
        provided in the form of a grant for establishing and operating 
        an employment assistance program for the residents of 
        supportive housing, which shall include--
                    ``(A) employment of residents in the operation and 
                maintenance of the housing; and
                    ``(B) the payment of the transportation costs of 
                residents to places of employment.
            ``(6) Supportive services.--Assistance may be provided in 
        the form of a grant for costs of supportive services provided 
        to homeless individuals. Any project sponsor, including program 
        recipients under title IV of this Act before the date of the 
        enactment of the Housing and Community Development Act of 1994, 
        may reapply for such assistance or for the renewal of such 
        assistance to continue services funded under prior grants or to 
        provide other services.
            ``(7) Child care services.--Assistance may be provided in 
        the form of a grant to establish and operate a child care 
        services program for homeless families, which shall--
                    ``(A) include--
                            ``(i) establishing, licensing, and 
                        operating an on-site child care facility for 
                        the residents of transitional housing;
                            ``(ii) making contributions for the child 
                        care costs of residents of transitional housing 
                        to existing community child care programs and 
                        facilities; and
                            ``(iii) counseling designed to inform the 
                        residents of transitional housing of public and 
                        private child care services for which they are 
                        eligible; and
                    ``(B) provide only child care services that comply 
                with any applicable State and local laws and 
                regulations.
        A grant under this paragraph for any child care services 
        program may not exceed the amount equal to 75 percent of the 
        cost of operating the program for a period not exceeding 5 
        years.
    ``(b) Supportive Housing.--Housing for homeless individuals shall 
be considered to be supportive housing for purposes of this section 
if--
            ``(1) the housing is safe and sanitary and meets any 
        applicable State and local housing codes and licensing 
        requirements in the jurisdiction in which the housing is 
        located;
            ``(2) the housing is--
                    ``(A) transitional housing;
                    ``(B) permanent housing for homeless persons with 
                disabilities; or
                    ``(C) a particularly innovative project for, or 
                alternative methods of, meeting the immediate and long-
                term needs of homeless individuals and families (or is 
                part of such a project); and
            ``(3) supportive services are provided in connection with 
        the housing to address the special needs of homeless 
        individuals intended to be served by the housing.
    ``(c) Transitional Housing.--For purposes of this section, the term 
`transitional housing' means housing, the purpose of which is to 
facilitate the movement of homeless individuals and families to 
permanent housing within 24 months or such longer period as the 
Secretary determines necessary.
    ``(d) Permanent Housing for Homeless Persons With Disabilities.--
For purposes of this section, the term `permanent housing for homeless 
persons with disabilities' means community-based housing for homeless 
persons with disabilities that--
            ``(1) is a home designed solely for housing homeless 
        persons with disabilities or dwelling units in a multifamily 
        housing project, condominium project, or cooperative project;
            ``(2) in the case of a home, is located on a site that does 
        not contain another home used for the same purposes and that is 
        not contiguous to another site containing a home used for the 
        same purposes; and
            ``(3) provides long-term housing and supportive services 
        for not more than--
                    ``(A) 8 such persons in a single structure or 
                contiguous structures;
                    ``(B) 16 such persons, but only if not more than 20 
                percent of the units in a structure are designated for 
                such persons; or
                    ``(C) more than 16 persons if the applicant 
                demonstrates that local market conditions dictate the 
                development of a large project and such development 
                will achieve the neighborhood integration objectives of 
                the program within the context of the affected 
                community.
    ``(e) Program Requirements.--
            ``(1) Required agreements.--A recipient may use grant 
        amounts under this subtitle for a supportive housing project 
        under this section only if the project sponsor for the project 
        has agreed--
                    ``(A) to operate the proposed project as supportive 
                housing for not less than 10 years;
                    ``(B) to conduct an ongoing assessment of the 
                supportive services required by the residents of the 
                project;
                    ``(C) to provide such residential supervision as 
                the Secretary determines is necessary to facilitate the 
                adequate provision of supportive services to the 
                residents of the project; and
                    ``(D) to comply with such other terms and 
                conditions as the Secretary or recipient may establish 
                for purposes of carrying out this program in an 
                effective and efficient manner.
            ``(2) Occupant charge.--Each homeless individual or family 
        residing in a project assisted under this section that provides 
        supportive housing may be required to pay an occupancy charge 
        in an amount determined by the project sponsor, which may not 
        exceed the amount determined under section 3(a) of the United 
        States Housing Act of 1937. Occupancy charges paid may be 
        reserved, in whole or in part, to assist residents in moving to 
        permanent housing.
    ``(f) Single Room Occupancy Dwellings.--A project assisted under 
this section may provide supportive housing or supportive services in 
dwelling units that do not contain bathrooms or kitchen facilities and 
are appropriate for use as supportive housing or in projects containing 
some or all such dwelling units.

``SEC. 434. SAFE HAVENS FOR HOMELESS INDIVIDUALS.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle for--
            ``(1) the construction of a structure for use in providing 
        a safe haven or the acquisition, rehabilitation, or acquisition 
        and rehabilitation of an existing structure for use in 
        providing a safe haven;
            ``(2) the leasing of an existing structure for use in 
        providing a safe haven;
            ``(3) operating costs of a safe haven;
            ``(4) costs of administering a safe haven program, in an 
        amount not exceeding 10 percent of the amounts made available 
        for activities under paragraphs (1) through (3);
            ``(5) conducting outreach activities designed to inform 
        eligible persons about and attract them to a safe haven 
        program;
            ``(6) the provision of low-demand services and referrals 
        for residents of a safe haven; and
            ``(7) conducting other activities that further the purposes 
        of this section, including the modification of an existing 
        facility to use a portion of a facility to provide a safe 
        haven.
    ``(b) Definition.--For purposes of this section, the term `safe 
haven' means housing for homeless persons who, at the time, are 
unwilling or unable to participate in mental health treatment programs 
or to receive other supportive services. Such a facility may provide--
            ``(1) 24-hour residence for eligible persons who may reside 
        for an unspecified duration;
            ``(2) private or semiprivate accommodations;
            ``(3) common use of kitchen facilities, dining rooms, and 
        bathrooms;
            ``(4) supportive services to eligible persons who are not 
        residents on a drop-in basis; and
            ``(5) overnight occupancy limited to no more than 25 
        persons.
    ``(c) Eligibility for SSI and Medicaid.--
            ``(1) Supplemental security income.--All provisions of the 
        supplemental security income program under title XVI of the 
        Social Security Act and of State programs in supplementation 
        thereof shall apply to participants in the safe havens 
        demonstration program under this subtitle, except that no 
        individual living in a safe haven shall--
                    ``(A) be considered an inmate of a public 
                institution (as provided in section 1611(e)(1)(A) of 
                such Act); or
                    ``(B) have benefits under such title XVI reduced or 
                terminated because of the receipt of support and 
                maintenance (as provided in section 1612(a)(2)(A) of 
                such Act), to the extent such support and maintenance 
                is received as a result of participation in the safe 
                havens demonstration program.
            ``(2) Medicaid.--A safe haven shall not be considered a 
        hospital, nursing facility, institution for mental disease as 
        defined under section 1905(i) of the Social Security Act, or 
        any other inpatient facility, for purposes of the programs 
        under title XIX of such Act, and individuals shall not be 
        denied eligibility for Medicaid because of residency in such 
        residence.

``SEC. 435. SHELTER PLUS CARE.

    ``(a) Eligible Activities.--A recipient may use grant amounts under 
this subtitle to provide shelter plus care for homeless persons with 
disabilities (primarily persons who have severe and persistent mental 
or emotional impairments that seriously limit a person's ability to 
live independently, have chronic programs with alcohol, drugs, or both, 
or have acquired immunodeficiency syndrome and related diseases) and 
the families of such persons.
    ``(b) Definition.--For purposes of this section, the term `shelter 
plus care' means rental housing assistance, in connection with 
supportive services funded from sources other than under this section. 
Such rental housing assistance may be tenant-based, project-based, or 
sponsor-based.

``SEC. 436. ADMINISTRATIVE AND CAPACITY-BUILDING EXPENSES.

    ``(a) Availability of Grant Amounts.--A recipient may use grant 
amounts under this subtitle for the following expenses:
            ``(1) Administrative expenses.--During--
                    ``(A) the first year in which a recipient receives 
                grant amounts under this subtitle, for administrative 
                expenses in connection with planning the development 
                of, and establishing, its program under this subtitle;
                    ``(B) subsequent years, to defray the cost of 
                administering the program; and
                    ``(C) any year in which a recipient receives grant 
                amounts under this subtitle, to defray the cost of 
                establishing and operating the board referred to in 
                section 411(b).
        Not more than 5 percent of any amounts provided to a recipient 
        under this subtitle for a fiscal year may be used for 
        activities under this paragraph.
            ``(2) Capacity building for nonprofit organizations.--For 
        building the capacity of private nonprofit organizations to 
        participate in the comprehensive homeless assistance system of 
        the recipient, except that not more than 2 percent of any 
        amounts provided to a recipient under this subtitle for a 
        fiscal year may be used for activities under this paragraph.
    ``(b) Provision of Administrative Expenses for Certain Entities.--
            ``(1) Provision of amounts.--Any recipient under paragraph 
        (2) shall make available, to defray the administrative expenses 
        of the designee or the State, not more than 5 percent from 
        amounts eligible for this purpose under subsection (a)(1).
            ``(2) Recipients covered.--The recipients under this 
        paragraph shall be--
                    ``(A) any allocation unit of general local 
                government, Indian Tribe, or insular area, that 
                designates a public agency or a private nonprofit 
                organization under section 410(a)(2);
                    ``(B) any State recipient that designates a public 
                agency or a private nonprofit organization under 
                section 410(b)(3)(A)(ii); and
                    ``(C) any State recipient that enters into an 
                agreement under section 410(b)(3)(A)(iii) with a State.

``SEC. 437. OTHER APPROVED ACTIVITIES.

    ``The Secretary, in cooperation with grantees, recipients, and 
other appropriate parties, shall develop additional activities to carry 
out the purposes of this subtitle. A recipient may use grants amounts 
under this subtitle to carry out any such activities developed and 
approved by the Secretary.

   ``Subtitle B--Other Permanent Housing Assistance Programs for the 
                              Homeless''.

SEC. 812. REGULATIONS.

    Not later than 60 days after the date of enactment of this Act, the 
Secretary of Housing and Urban Development shall by notice establish 
any requirements necessary to carry out the provisions contained in the 
amendments made by this chapter. Based on such notice, the Secretary 
shall issue regulations to carry out such provisions not later than 12 
months after the date of the enactment of this Act.

SEC. 813. TRANSITION PROVISIONS.

    (a) In General.--Notwithstanding the provisions of subtitle A of 
title IV of the Stewart B. McKinney Homeless Assistance Act (as amended 
by this chapter), during fiscal year 1995, the Secretary of Housing and 
Urban Development shall allocate homeless assistance made available 
under title IV of the Stewart B. McKinney Homeless Assistance Act in 
accordance with the regulations for such title in effect immediately 
before the enactment of this Act. Of any amounts appropriated to carry 
out section 2 of the HUD Demonstration Act of 1993 in fiscal year 1995, 
the Secretary may use not more than 10 percent for providing technical 
assistance to assist recipients under subtitle A of title IV of the 
Stewart B. McKinney Homeless Assistance Act (as amended by this 
chapter) to establish a program for providing homeless assistance in 
accordance with the provisions of such subtitle.
    (b) Report on Single Room Occupancy Assistance.--Not later than 
July 1, 1995, the Secretary shall submit a report to the Congress 
evaluating the effectiveness of combining the programs for assistance 
for single room occupancy dwellings under sections 451 and 452 of the 
Stewart B. McKinney Homeless Assistance Act (as so redesignated and 
amended by this Act) into the program for assistance under subtitle A 
of title IV of such Act and, if effective, describing how to provide 
such assistance under the program under such subtitle A.

  CHAPTER 2--OTHER HOUSING ASSISTANCE PROGRAMS FOR THE HOMELESS UNDER 
                              MCKINNEY ACT

SEC. 821. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS.

    (a) Authorization of Appropriations.--Section 451(a) of the Stewart 
B. McKinney Homeless Assistance Act (42 U.S.C. 11401(a)), as so 
redesignated by section 811(3) of this Act, is amended to read as 
follows:
    ``(a) Increase in Budget Authority.--The budget authority available 
under section 5(c) of the United States Housing Act of 1937 for 
assistance under section 8(e)(2) of such Act (as in effect immediately 
before October 1, 1991) is authorized to be increased by $200,000,000 
on or after October 1, 1994, and by $206,000,000 on or after October 1, 
1995.''.
    (b) Program Changes.--Section 451 of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11401(a)), as so redesignated by 
section 811(3) of this Act, is amended--
            (1) in the second sentence of subsection (c), in the matter 
        preceding paragraph (1), by striking ``containing'' and 
        inserting the following: ``for the provision of assistance 
        under this section that is specifically provided for in the 
        comprehensive homeless assistance described in the application 
        under section 408 of the relevant eligible grantee and that 
        contains''; and
            (2) in subsection (j)(1), by inserting ``recipient under 
        subtitle A,'' after ``authority,''.

SEC. 822. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE SINGLE ROOM 
              OCCUPANCY DWELLINGS.

    Title IV of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11361 et seq.) is amended by inserting after section 451, as so 
redesignated by section 811(3) of this Act, the following new section:

``SEC. 452. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE SINGLE ROOM 
              OCCUPANCY DWELLINGS.

    ``(a) Purpose.--The purpose of the program under this section is to 
provide assistance for the moderate rehabilitation of single room 
occupancy housing to be made available for rental, in connection with 
supportive services funded from sources other than this section, to 
homeless persons with disabilities (primarily persons who are seriously 
mentally ill, have chronic problems with alcohol, drugs, or both, or 
have acquired immunodeficiency syndrome and related diseases) and the 
families of such persons.
    ``(b) Moderate Rehabilitation Assistance.--The Secretary may use 
amounts made available to carry out this section for moderate 
rehabilitation of single room occupancy housing described in section 
8(l) of the United States Housing Act of 1937 for occupancy by eligible 
persons in accordance with this section. Such amounts may be used in 
connection with the moderate rehabilitation of efficiency units if the 
building owner agrees to pay the additional cost of rehabilitating and 
operating the efficiency units.
    ``(c) Funding Limitations.--
            ``(1) Targeted populations.--To the maximum extent 
        practicable, the Secretary shall reserve not less than 50 
        percent of all amounts made available to carry out this section 
        for homeless individuals who are seriously mentally ill or have 
        chronic problems with alcohol, drugs, or both.
            ``(2) Geographical limitation.--Of the assistance made 
        available under this section for any fiscal year, not more than 
        10 percent may be used for programs located within any one unit 
        of general local government.
    ``(d) Supportive Services Requirements.--
            ``(1) Requirement of matching amounts.--Each recipient of 
        assistance under this section shall supplement the assistance 
        provided under this section with an equal amount of funds for 
        supportive services from sources other than this section. Each 
        recipient shall certify to the Secretary its compliance with 
        this paragraph, and shall include with the certification a 
        description of the sources and amounts of such supplemental 
        funds.
            ``(2) Determination of matching amounts.--In calculating 
        the amount of supplemental funds provided under this section, a 
        recipient may include the value of any lease on a building, any 
        salary paid to staff to carry out the program of the recipient, 
        and the value of the time and services contributed by 
        volunteers to carry out the program of the recipient at a rate 
        determined by the Secretary.
            ``(3) Recapture.--If the supportive services and funding 
        for the supportive services required by this subsection are not 
        provided by a recipient, the Secretary may recapture any 
        unexpended housing assistance provided under this section to 
        the recipient.
    ``(e) Contract Requirements.--Each contract for annual 
contributions entered into by the Secretary with a public housing 
agency to obligate budget authority made available to carry out this 
section shall--
            ``(1) commit the Secretary to make the authority available 
        to the public housing agency for an aggregate period of 10 
        years, and require that any amendments increasing the authority 
        shall be available for the remainder of such 10-year period;
            ``(2) provide the Secretary with the option to renew the 
        contract for an additional period of 10 years, subject to the 
        availability of authority;
            ``(3) provide that, notwithstanding any other provision of 
        law, first priority for occupancy of housing rehabilitated 
        under this section shall be given to homeless persons; and
            ``(4) require installation in the housing assisted of a 
        sprinkler system that protects all major spaces, hard-wired 
        smoke detectors, and any other fire safety improvements as may 
        be required by State or local law.
For purposes of this subsection, the term `major spaces' means 
hallways, large common areas, and other areas specified in local fire, 
building, or safety codes.
    ``(f) Applications.--
            ``(1) In general.--An application for rental housing 
        assistance under this section shall be submitted by an 
        applicant in such form and in accordance with such procedures 
        as the Secretary shall establish.
            ``(2) Minimum contents.--The Secretary shall require that 
        an application identify the need for the assistance in the 
        community to be served and shall contain at a minimum--
                    ``(A) a request for housing assistance under this 
                section specifying the number of units requested and 
                the amount of necessary budget authority;
                    ``(B) a description of the size and characteristics 
                of the population of eligible persons;
                    ``(C) an identification of the need for the program 
                in the community to be served;
                    ``(D) the identity of the proposed service provider 
                or providers (which may be, or include, the applicant) 
                and a statement of the qualifications of the provider 
                or providers;
                    ``(E) a description of the supportive services that 
                the applicant proposes to assure will be available for 
                eligible persons;
                    ``(F) a description of the resources that are 
                expected to be made available to provide the supportive 
                services required by subsection (d);
                    ``(G) a description of the mechanisms for 
                developing a housing and supportive services plan for 
                each person and for monitoring each person's progress 
                in meeting that plan;
                    ``(H) reasonable assurances satisfactory to the 
                Secretary that the supportive services will be provided 
                for the full term of the housing assistance under this 
                section and a certification from the applicant that it 
                will fund the supportive services itself if the planned 
                resources do not become available for any reason;
                    ``(I) a certification by the public official 
                responsible for submitting the comprehensive housing 
                affordability strategy under section 105 of the 
                Cranston-Gonzalez National Affordable Housing Act that 
                the proposed activities are consistent with the 
                approved housing strategy of the unit of general local 
                government within which housing assistance under this 
                section will be provided; and
                    ``(J) identification of the specific structures 
                that the recipient is proposing for assistance.
    ``(g) Selection Criteria.--The Secretary shall establish selection 
criteria for a national competition for assistance under this section 
which shall include--
            ``(1) the ability of the applicant to develop and operate 
        the proposed assisted housing and supportive services program, 
        taking into account the quality of any ongoing program of the 
        applicant;
            ``(2) geographic diversity among the projects to be 
        assisted;
            ``(3) the need for a program providing housing assistance 
        and supportive services for eligible persons in the area to be 
        served;
            ``(4) the quality of the proposed program for providing 
        supportive services and housing assistance;
            ``(5) the extent to which the proposed funding for the 
        supportive services is or will be available;
            ``(6) the extent to which the project would meet the needs 
        of the homeless persons proposed to be served by the program;
            ``(7) the extent to which the program integrates program 
        recipients into the community served by the program;
            ``(8) the cost-effectiveness of the proposed program; and
            ``(9) such other factors as the Secretary specifies in 
        regulations to be appropriate for purposes of carrying out the 
        program established by this section in an effective and 
        efficient manner.
    ``(h) Participation of Homeless Individuals.--The Secretary shall, 
by regulation, require each recipient of assistance under this section 
to provide for the consultation and participation of not less than one 
homeless individual or former homeless individual on the board of 
directors or other equivalent policymaking entity of the recipient, to 
the extent that such entity considers and makes policies and decisions 
regarding any housing assisted under this section or services for such 
housing. The Secretary may grant waivers to recipients unable to meet 
the requirement under the preceding sentence if the recipient agrees to 
otherwise consult with homeless or formerly homeless individuals in 
considering and making such policies and decisions.
    ``(i) Required Agreements.--The Secretary may not approve 
assistance under this section for an applicant unless the applicant 
agrees--
            ``(1) to operate the proposed program in accordance with 
        the provisions of this section;
            ``(2) to conduct an ongoing assessment of the housing 
        assistance and supportive services required by the participants 
        in the program;
            ``(3) to ensure the adequate provision of supportive 
        services to the participants in the program;
            ``(4) to comply with such other terms and conditions as the 
        Secretary may establish for purposes of carrying out the 
        program in an effective and efficient manner; and
            ``(5) to the maximum extent practicable, to involve 
        homeless individuals and families, through employment volunteer 
        services, or otherwise, in constructing or rehabilitating 
        housing assisted under this section and in providing services 
        required under this section.
    ``(j) Housing Standards and Rent Reasonableness.--
            ``(1) Standards required.--The Secretary shall require 
        that--
                    ``(A) before any assistance may be provided to or 
                on behalf of a person, each unit assisted under this 
                section shall be inspected by the applicant directly or 
                by another entity, including the local public housing 
                agency, to determine that the unit meets the housing 
                quality standards under section 8 of the United States 
                Housing Act of 1937 and that the occupancy charge for 
                the dwelling unit is reasonable; and
                    ``(B) the recipient shall make at least annual 
                inspections of each unit assisted under this section 
                during the term of the contract for such assistance.
            ``(2) Prohibition.--No assistance may be provided under 
        this section for a dwelling unit (A) for which the occupancy 
        charge is not reasonable, or (B) which fails to meet the 
        housing standards, unless the owner promptly corrects the 
        deficiency and the recipient verifies the correction.
    ``(k) Tenant Rent.--Each tenant of a dwelling unit assisted under 
this section shall pay as rent an amount determined in accordance with 
the provisions of section 3(a)(1) of the United States Housing Act of 
1937.
    ``(l) Administrative Fees.--From amounts made available to carry 
out this section, the Secretary shall make amounts available to pay the 
entity administering the housing assistance an administrative fee in an 
amount determined appropriate by the Secretary for the costs of 
administering the housing assistance.
    ``(m) Occupancy.--
            ``(1) Occupancy agreement.--The occupancy agreement between 
        a tenant and an owner of a dwelling unit assisted under this 
        section shall be for at least one month.
            ``(2) Vacancy payments.--If an eligible person vacates a 
        dwelling unit assisted under this section before the expiration 
        of the occupancy agreement, no assistance payment may be made 
        with respect to the unit after the month that follows the month 
        during which the unit was vacated, unless it is occupied by 
        another eligible person.
    ``(n) Termination of Assistance.--
            ``(1) Authority.--If an eligible individual who receives 
        assistance under this section violates program requirements, 
        the recipient may terminate assistance in accordance with the 
        process established pursuant to paragraph (2).
            ``(2) Procedure.--In terminating assistance under this 
        paragraph, the recipient shall provide a formal process that 
        recognizes the rights of individuals receiving such assistance 
        to due process of law.
    ``(o) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) The term `acquired immunodeficiency syndrome and 
        related diseases' has the meaning given such term in section 
        853 of the Cranston-Gonzalez National Affordable Housing Act.
            ``(2) The term `applicant' means a State, unit of general 
        local government, Indian tribe, or public housing agency.
            ``(3) The term `eligible person' means a homeless person 
        with disabilities (primarily persons who are seriously mentally 
        ill, have chronic problems with alcohol, drugs, or both, or 
        have acquired immunodeficiency syndrome and related diseases) 
        and the family of such a person.
            ``(4) The term `Indian tribe' has the meaning given such 
        term in section 102 of the Housing and Community Development 
        Act of 1974.
            ``(5) The term `nonprofit organization' has the meaning 
        given such term by section 104 of the Cranston-Gonzalez 
        National Affordable Housing Act, and includes community mental 
        health centers established as public nonprofit organizations.
            ``(6) The term `person with disabilities' has the meaning 
        given such term in section 811 of the Cranston-Gonzalez 
        National Affordable Housing Act.
            ``(7) The term `public housing agency' has the meaning 
        given such term in section 3(b) of the United States Housing 
        Act of 1937.
            ``(8) The term `recipient' means an applicant approved for 
        participation in the program to provide assistance under this 
        section.
            ``(9) The term `Secretary' means the Secretary of Housing 
        and Urban Development.
            ``(10) The term `seriously mentally ill' means having a 
        severe and persistent mental or emotional impairment that 
        seriously limits a person's ability to live independently.
            ``(11) The term `State' means each of the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Mariana Islands, the Virgin 
        Islands, Guam, American Samoa, and any other territory or 
        possession of the United States.
            ``(12) The term `supportive services' means assistance that 
        the Secretary determines (A) addresses the special needs of 
        eligible persons; and (B) provides appropriate services or 
        assists such persons in obtaining appropriate services, 
        including health care, mental health services, substance and 
        alcohol abuse services, child care services, case management 
        services, counseling, supervision, education, job training, and 
        other services essential for achieving and maintaining 
        independent living. Inpatient acute hospital care shall not 
        qualify as a supportive service.
            ``(13) The term `unit of general local government' has the 
        meaning given such term in section 102 of the Housing and 
        Community Development Act of 1974.
    ``(p) Authorization of Appropriations.--For purposes of providing 
assistance under this section, there are authorized to be appropriated 
$75,000,000 for fiscal year 1995 and $75,000,000 for fiscal year 
1996.''.

SEC. 823. RURAL HOMELESSNESS GRANT PROGRAM.

    (a) Authorization of Appropriations.--Section 453(l)(1) of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11408(l)(1)), as 
so redesignated by section 811(3) of this Act, is amended to read as 
follows:
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $32,197,800 for fiscal year 1995 and 
        $33,163,734 for fiscal year 1996.''.
    (b) Transfer to Department of Agriculture.--Section 453 of the 
Stewart B. McKinney Homeless Assistance Act, as so redesignated by 
section 811(3) of this Act, is amended--
            (1) in subsection (a), by striking ``Secretary of Housing 
        and Urban Development'' and inserting ``Secretary of 
        Agriculture''; and
            (2) in subsection (k), by striking paragraph (3) and 
        inserting the following new paragraph:
            ``(3) The term `Secretary' means the Secretary of 
        Agriculture.''.

SEC. 824. CLERICAL AMENDMENT.

    The table of contents in section 101(b) of the Stewart B. McKinney 
Homeless Assistance Act is amended by striking the items relating to 
title IV and inserting the 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.
        ``Sec. 435. Shelter plus care.
        ``Sec. 436. Administrative and capacity-building expenses.
        ``Sec. 437. 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.''.

          CHAPTER 3--MISCELLANEOUS HOMELESS HOUSING PROVISIONS

SEC. 831. INNOVATIVE HOMELESS PROGRAM.

    (a) Authorization of Appropriations.--Section 2(f) of the HUD 
Demonstration Act of 1993 is amended to read as follows:
    ``(f) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $100,000,000 for fiscal year 1995.
            ``(2) Use of amounts.--Any amounts appropriated under 
        paragraph (1) may be used only to carry out the comprehensive 
        homeless initiative under subsection (c).''.
    (b) Extension of Program.--Section 2(g) of the HUD Demonstration 
Act of 1993 (42 U.S.C. 11301 note) is amended by striking ``1994'' and 
inserting ``1995''.

SEC. 832. FHA SINGLE FAMILY PROPERTY DISPOSITION.

    Section 1407 of the Housing and Community Development Act of 1992 
(Public Law 102-550; 106 Stat. 4034) is amended by striking subsections 
(a) and (b) and inserting the following new subsections:
    ``(a) Immediate Availability.--In carrying out the program for 
disposition of single family properties acquired by the Department of 
Housing and Urban Development for use by the homeless under subpart E 
of part 291 of title 24, Code of Federal Regulations, the Secretary of 
Housing and Urban Development shall make any eligible property 
available for lease under such program without listing and making such 
property generally available for sale for any intervening period.
    ``(b) Discount.--Any property made available for sale under the 
program referred to in subsection (a) shall be made available at a 
price equal to the fair market value of the property less a 20 percent 
discount.''.

            Subtitle B--Interagency Council on the Homeless

SEC. 841. AUTHORIZATION OF APPROPRIATIONS.

    Section 208 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11318) is amended to read as follows:

``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$1,609,890 for fiscal year 1995 and $1,658,187 for fiscal year 1996.''.

SEC. 842. CHAIRPERSON.

    Section 202(b) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11312(b) is amended to read as follows:
    ``(b) Chairperson and Vice Chairperson.--
            ``(1) Chairperson.--The Council shall elect a Chairperson 
        from among its members, who shall have a term of 2 years. A 
        member of the Council by reason of any of paragraphs (1) 
        through (16) of subsection (a) who serves as Chairperson for a 
        term may not be elected to serve as Chairperson for the 
        succeeding term. The preceding sentence shall not apply to any 
        member serving as Chairperson on the date of the enactment of 
        the Housing and Community Development Act of 1994.
            ``(2) Vice chairperson.--The Vice Chairperson of the 
        Council shall have a term of 2 years and shall be--
                    ``(A) the Secretary of Housing and Urban 
                Development, if such Secretary is not elected as the 
                Chairperson of the Council; or
                    ``(B) elected by the Council from among its 
                members, if the Secretary of Housing and Urban 
                Development is elected as the Chairperson of the 
                Council.''.

SEC. 843. EXTENSION.

    Section 209 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11319) is amended by striking ``October 1, 1994'' and inserting 
``October 1, 1996''.

   Subtitle C--Federal Emergency Management Agency Food and Shelter 
                                Program

SEC. 851. AUTHORIZATION OF APPROPRIATIONS.

    Section 322 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11352) is amended to read as follows:

``SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$193,186,800 for fiscal year 1995 and $198,982,404 for fiscal year 
1996.''.
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